Energy Affordability — State Senate Victory Fund

The Affordability Crisis Demands Action

California families face a utility affordability crisis. PG&E bills have increased 40% beyond inflation since 2018, while utilities report record-breaking profits. Working families struggle to keep the lights on as energy costs consume an increasingly large share of household budgets.

Senate Bill 254 represents a once-in-a-generation opportunity to save Californians more than $20 billion through proven reforms that reduce costs while maintaining reliability and safety.

Voters Overwhelmingly Demand Action

79% of California voters say the government should do more to limit price increases by for-profit utility companies, reflecting widespread frustration with rising bills and utility profiteering.

How SB 254 Delivers More Than $20 Billion in Savings

Eliminates Excessive Profits on $15 Billion in Infrastructure

SB 254 requires utilities to finance the next $15 billion in wildfire and grid investments using low-cost ratepayer-backed bonds instead of high-cost shareholder funds. This eliminates utility profits on these essential investments, reducing ratepayer costs by at least 40%, saving approximately $7.5 billion over 10 years.

Creates Public Financing for New Transmission

The legislation establishes a state infrastructure authority to finance new transmission using low-cost public bonds. Public ownership reduces ratepayer costs by at least 50% compared to corporate ownership—adding up to tens of billions in savings. This approach could save up to $3 billion annually, or around $123 billion over 40 years.

Requires Inflation-Constrained Rate Proposals

SB 254 requires utilities to submit spending scenarios that limit rate increases to the annual Social Security cost-of-living adjustment, generating savings through heightened scrutiny for any requests exceeding this cap.
Why this matters: The CPUC projects utility bills will increase 5.6% to 10.8% annually through 2027, while the inflation forecast is at just 2.2%. If rate increases tracked projects, bills would be 7% - 9% lower than current forecasts.
Shifts Wildfire Costs Away from Ratepayers
The bill creates a program to use external funding sources for wildfire costs that would otherwise be collected from ratepayers, creating an avenue for immediate rate relief. Every $1 billion channeled through this fund annually would reduce current for-profit utility rates by approximately 1.7%.

Strengthens Transparency and Accountability

SB 254 requires detailed annual reporting on utility profits, rate base, and actual returns, giving regulators and the public better tools to scrutinize spending.

Industry Disinformation: The "Rate Realities" Campaign

With utilities facing the prospect of reduced profits from SB 254, the California Chamber of Commerce—which receives financial contributions from California's for profit utilities—is coordinating a disinformation campaign making misleading statements about SB 254's provisions.

Debunking Industry Scare Tactics About SB 254

As working families face mounting pressures from federal policies that increase costs and reduce benefits, California must do everything possible to help manage household expenses. Every dollar matters in monthly budgets, making structural changes to utility costs more critical than ever.

FALSE: "Arbitrary caps will restrict needed investments"

The Reality: SB 254 doesn't cap investments—it requires utilities to justify rate increases above inflation. Essential safety and reliability investments will continue, but utilities will need to demonstrate how they benefit utility customers.

FALSE: "Creating new state agencies will increase costs"

The Reality: Public financing consistently delivers infrastructure at lower cost than private financing. California's own experience with public power shows that public utilities deliver lower rates. SB 254 uses the same proven model that saves ratepayers money nationwide.