Committee advances Hoover bill to shift some public-purpose program costs off utility bills; opponents warn of program instability

Assemblymember Hoover presented AB 2,508 as a response to high and regressive elements of electricity bills. "If we're serious about affordability and bringing down rising costs, then we need to take action and find ways to save Californians money," Hoover said, urging that some public-purpose programs be funded from “more appropriate sources.”

Supporters included some labor and utility witnesses who said the bill could help reduce monthly bills for households. San Diego Gas & Electric's Lourdes Allon said she agonized over the tradeoffs but supported shifting public-purpose program costs off ratepayer bills when appropriate, and noted that public-purpose programs serve important roles for low-income households.

Opponents — including Community Choice Aggregators, the California Energy Efficiency and Demand Management Council, and wildfire survivor groups — urged caution. Stephanie Chen of MCE said cutting energy-efficiency programs could “cost more than it will save” because efficiency generates broader grid benefits. The council warned that moving programs to the Greenhouse Gas Reduction Fund (GGRF) would undermine multiyear stability and risk losing investments that sustain contractors and markets. Utility-wildfire coalitions asked that any move to reallocate funding ensure victims of past fires are paid first.

Committee members expressed a mix of support for affordability goals and concern about moving programs without clear alternate funding. Several members called for a more surgical approach to deciding which programs to move and for further work in appropriations.