Primary Staff Contact: Alicia Lawrence| [email protected] | 916.651.4410 Secondary Staff Contact: Ray Sun| [email protected] | 916.651.4410
Senate Bill 332: Investor-Owned Utilities Accountability Act (Co-authors: Senator Hurtado and Assemblymembers Garcia and Ortega)
SUMMARY
The recent Eaton and Palisades Fires gives
us cause to re-examine the accountability and
transparency of investor-owned utilities (IOUs).
Despite electricity demand remaining
stable, executive compensation, infrastructure
spending and customer rates continue to
increase.
This bill promotes affordability and protects
ratepayers, increases accountability and
transparency from IOUs, and examines
alternatives to our existing energy provider
framework.
BACKGROUND
Rates are higher in investor-owned utilities
(IOU) service territories across California than in
not-for-profit utilities (including municipal
utilities, rural electric cooperatives, and tribal
utilities), which has resulted in people paying
higher rates. On average, California IOU
electricity rates are more than 50% higher than
rates charged by publicly owned utilities
(POU). In addition to this, for IOU customers in
California, rates have increased nearly 50%
over the past three years, with some IOUs
increasing their rates 6 times in this past year
alone.
Under the current system, most distribution
and transmission infrastructure is financed by
IOUs and paid for by utility ratepayers.
Ratepayers also pay for a rate of return for the
IOU’s cost, which can average close to 10%.
ISSUE
Past and present experience demonstrates
that the IOUs prioritize profits over the safety
and well-being of Californians, leaving
ratepayers paying increasingly expensive utility
bills with no interest in examining affordability
and ongoing issues of safety.
SOLUTION
In order to promote affordability levels for
ratepayers, ensure our infrastructure is safe,
and increase accountability and transparency
from the IOUs we must take bold steps.
SB 332 will:
1. Create a feasibility study to determine
what form of utility best serves
ratepayers
2. Require triennial audits of equipment
and the replacement of equipment
that’s outlived its end of life in high fire
risk areas
3. Require proposed executive
compensation be contingent on safety
metrics
4. Ensure safe and cost-effective wildfire
mitigation strategies are considered if
rebuilding after a disaster
5. Increase transparency on service
disconnection data
6. Establish procurement policies to rein in
expenses
SUPPORT
Reclaim our Power (sponsor)
Center for Biological Diversity (sponsor)
350 Bay Area Action
350 Humboldt
350 Southland Legislative Alliance
Ban SUP (Single Use Plastic)
Bay Area System Change Not Climate
Change
BiofuelWatch
California Alliance for Community
Energy
California Brain Tumor Association
California Climate Voters
Primary Staff Contact: Alicia Lawrence| [email protected] | 916.651.4410 Secondary Staff Contact: Ray Sun| [email protected] | 916.651.4410
California Environmental Justice Alliance
Action
California Environmental Justice
Coalition
California Green New Deal Coalition
California Interfaith Power and Light
California Solar and Storage Association
Catholic Charities of Stockton
Center for Community Action and
Environmental Justice
Center for Community Energy
Central California Asthma Collaborative
Central Valley Partnership
Cleanearth4kids.Org
Climate Action California
Climate Action Campaign
The Climate Center
Climate Equity Policy Center
Climate Health Now
Coalition for Economic Equity and
Economics
Collective Resilience
Communities for a Better Environment
Consumer Watchdog
Courage California
Democratic Socialists of America,
Sacramento
Democrats for Rossmoor
Disability Justice Culture Club
Doing Good Works
Energy Equity Project
Environmental Working Group
Feed Black Futures
Foothills Community Democrats
Friends of the Public Bank East Bay
Frontline Catalysts
HODG
Housing Now!
Human Impact Partners
Indigenous Environmental Network
Indigenous Justice
Indivisible CA Statestrong
Indivisible California Green Team
Indivisible Resisiters Contra Costa
County
Institute for Local Self-Reliance
Little Manila Rising
Local Clean Energy Alliance
Long Beach Alliance for Clean Energy
Los Angeles County Democratic Party
Media Alliance
Mineral Baths Community Gardens
National Association of Climate
Resilience Planners
North American Climate, Conservation
and Environment
Oil & Gas Network
Parable of the Sower Intentional
Community Cooperative
Partners for Collaborative Change
Peninsula Chapter of the Democratic
Socialists of America
People’s Climate Innovation Center
PODER
Public Power San Diego
Puente Latino Association
Recolte Energy
Regenerating Paradise
Resources for Community Development
Sacramento Environmental Justice
Coalition
Saginaw Cap
San Diego DSA
San Diego 350
San Luis Obispo County Democratic
Party
Santa Cruz Climate Action Network
Solar United Neighbors Action
Solidarity, Bay Area
Stop PG$E
StopWaste
Sunflower Alliance
Sustainable Rossmoor
Sustainable Systems Research
Foundation
Synergistic Solutions
Third Act
Third Act Bay Area
Third Act SoCal
Urban Ecology Project
Urban Tilth
Vote Solar
Primary Staff Contact: Alicia Lawrence| [email protected] | 916.651.4410 Secondary Staff Contact: Ray Sun| [email protected] | 916.651.4410
Wellbeing Economy Alliance California
West Berkeley Alliance for Clean Air and
Safe Jobs
Youth vs. Apocalypse