Golden State Energy:
A Frontline Vision for Utility
Transformation
05/07/2024
Reclaim Our Power: Utility Justice Campaign
Coalition of fire
survivors,
environmental justice
communities, people
with disabilities,
ratepayers, and
workers.
ROP Vision:
Communities where all
have the energy and
resources they need to
live and thrive.
Justice is the goal, energy
is the tool.
When you think of PG&E, what comes to mind?
We need a solution that removes the profit
motive of PG&E, provides pathways to local
resilience and democracy, but does not leave
lower income and rural communities footing
the bill!
SB-350 The Golden State Energy Act (2020)
Link to the bill text
● The bill authorized the CPUC to
petition a court to appoint a receiver
to assume possession of PG&E’s
property and to operate its electrical
and gas systems
● Nonprofit public benefit corporation
● Established a 9-member board of
directors, who will be required to
amend Golden State Energy’s bylaws
to transition to 6 board members who
are elected by Golden State Energy’s
customers and 3 board members who
are appointed
Golden State Energy as a Provider of Last Resort
● The barriers for cities to grow local resilience and ownership of energy resources are political - roadblocks at the CPUC and legislature, fueled by PG&E lobbying
● Golden State Energy can facilitate a just transition for local cities by guaranteeing reliable provision of electric service to communities across the utility’s territory, and by prioritizing local development ● Cities such as San Francisco and San Jose are looking to “defect” from the grid, leaving lower income and rural communities with the costs of PG&E’s failing grid, unless a not-for-profit alternative for the public benefit can step in to align incentives with community needs.
Publicly accountable financing
As a not-for-profit utility, Golden State Energy will gain access to lower interest rates and better financing terms through state, federal, and private lending. ● Transparent and publicly accountable financing of infrastructure investments replaces profit-driven incentives of IOU decision making. ● California’s Infrastructure Bank, a green bank, is currently legislated to offer special bond or loan rates to Golden State Energy as serving the public interest
● Municipal bonds could fund distribution system level infrastructure buildout across the state.
Public Control of the Transmission System
● Reducing incentive for
utilities to overbuild
transmission projects, which
bring in a 7-12% rate of return
for the utility
● Shift incentives from
expensive undergrounding
projects toward cheaper
wildfire mitigation
techniques, local resilience,
and grid maintenance
Transmission
Distribution
Mandate for a Just Transition
● Policies for a managed decommisioning of natural gas infrastructure ● Safeguarding existing workers’ jobs and pensions in a transition, and expanding and diversifying the utility workforce
● Addressing the Wildfire Victims Trust Fund - currently tied to PG&E stock price, reparations for fire survivors
● Ensuring equitable decarbonization, local resilience, and affordability Questions for Further Research
● What conditions can incentivize investments by Golden State Energy into distributed energy resources, grid modernization, and upgrades and maintenance of the grid?
● How do we socialize the costs of a non-profit transmission system, and based on what criteria (i.e. region, income, through taxes or rates)?
● How can CCAs relate to distribution grid operators/owners in a way that facilitates local investments?
● What are democratic governance models that will lead to regulatory oversight that is not captured by IOU interests? Request to Council:
ADOPT a resolution in support of the implementation of Golden State Energy, and DIRECT STAFF to send letter to Senator Skinner, Assemblymember Wicks and Governor Newsom
Questions?
[email protected]