Little Hoover Commission directs staff to begin electricity-cost study as first step in broader affordability review

At its meeting, the Little Hoover Commission directed staff to begin a study of electricity and utility costs as the first topic in a planned series of inquiries into affordability in California. Commissioners said the focused study would respond to requests from lawmakers and address whether rising utility bills are contributing to broader cost-of-living pressures.

Commissioners repeatedly returned to the question of scope and sequencing. Ethan, a staff member leading legislative outreach, described two tracks the commission could follow: carry out the electricity/utility study requested by Senator Bradford and Assembly Member Ortega now, and return with a proposal for a rolling series of additional affordability studies at the next meeting. “We should start with the cost of electricity as the first topic in a potential series on affordability,” Ethan summarized for the commission.

Members cited concrete reasons for starting with utilities. Vice Chair Canelo said a focused commission review could supplement state agency work and avoid a potential conflict of interest, saying the Public Utilities Commission “is like the fox guarding the hen house” on some elements of rate setting. Commissioner Garcetti described delays tied to interlocking permitting and infrastructure: after building an accessory dwelling unit he was told a certificate of occupancy could not be issued until electricity service was connected and that the utility could take “four to seven months” to complete the hookup.

Commissioners also signaled interest in sequencing the work. Several suggested the electricity review could be followed by studies of permitting, construction costs and other components of affordability. Staff will begin the electricity study and prepare a proposal for a multi-part affordability project to present at the commission’s next meeting. The direction recorded in the transcript was staff assignment and planning; it was not recorded as a formal roll-call vote adopting a resolution.

The commission also noted related legislative requests. Ethan said the Bradford/Ortega request was narrow (public-purpose programs in electricity costs) while a separate letter from Assembly Members Jackson, Alanis Lee and Rubio asked for a broader literature review of affordability in the state. The commission elected to begin with the Bradford/Ortega electricity request and to return with options for additional work.

The scope and final design of the electricity review — including data sources, agencies to be studied (for example, the California Public Utilities Commission, California Energy Commission), and an analytic timeline — will be developed by staff and presented to the commission for approval.