Senate panel advances Public Advocates director amid questioning on rates, NEM and wildfire costs

The Senate Rules Committee voted to forward the director-designate for the Public Advocates Office to the full Senate after the nominee reviewed the office's statutory role and answered questions on utility affordability, wildfire mitigation costs and rooftop solar policy.

The nominee, introduced to the committee as the director-designate of the Public Advocates Office, said the office conducts independent research and participates in California Public Utilities Commission proceedings on behalf of utility customers. "By statute, we are unique and essential in that we are the only state entity with a sole focus on advocating on behalf of customers of the privately owned utilities," the nominee said.

Senators focused on rate design and affordability. The nominee explained the office supports shifting certain fixed costs out of the volumetric rate and into a fixed charge, arguing that will lower bills for customers who cannot reduce usage for health or climate reasons. "The idea is to pull those fixed costs out of the volumetric rate and everybody pay their fair share of those fixed costs that will lower the volumetric rate," the director-designate said. The committee heard that the Public Utilities Commission has adopted a fixed-charge approach and that utilities are working to implement billing changes.

Members also pressed on Net Energy Metering (NEM) and the transition after reforms enacted in 2023. The nominee said legacy customers who installed rooftop solar before April 2023 continue to receive the prior program benefits but the office believes incentives should be aligned with the actual value provided to the grid. The nominee told senators the office estimates significant cost shifts to non-solar customers and is advocating to rebalance incentives.

Lawmakers raised wildfire mitigation and utility cost recovery. The nominee described looking closely at utilities' cost-recovery requests and urged bringing forecasts for wildfire mitigation back into the general rate-case process so the commission and stakeholders can evaluate costs comprehensively rather than through multiple standalone recovery proceedings.

Committee members asked about battery storage safety and the Public Advocates Office's role. The nominee said the office would typically engage where utilities seek cost recovery at the commission, and the office tracks safety and implementation data; it would intervene in proceedings that seek ratepayer-funded cost recovery for storage projects.

Public comment included support from the Natural Resources Defense Council. The committee moved the nomination to the Senate floor; members recorded committee votes and left the roll open while other members returned, then recorded the final committee vote in favor.