Little Hoover Commission urges rate-design, oversight and feasibility study to curb soaring electricity costs

The Little Hoover Commission on Friday outlined policy steps it says could slow rapidly rising electricity costs in California while protecting climate and wildfire safety goals.

Daniel Harris McCoy, the commission’s project manager for the October report, told webinar attendees that California’s residential and commercial electricity rates are “about double the U.S. average” and that “1 in 5 households is behind on their electricity bill,” framing affordability as a top statewide concern. He said the Commission’s analysis identifies wildfire mitigation and insurance costs, rate designs that fold fixed costs into per-kilowatt-hour charges, utilities’ profit structures tied to capital spending, and flat consumption as central drivers of high bills.

The Commission’s three headline recommendations are targeted reforms to…