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A California power play

Presented by Heat Pump Nation Inc.: Your afternoon must-read briefing on politics and government in the Golden State
Aug 24, 2023 View in browser
 

By Wes Venteicher

Presented by Heat Pump Nation Inc.

RATE SHOCK: California’s highest-in-the-nation utility bills are about to get even higher.

Pacific Gas & Electric is expected to soon get preliminary approval on a rate increase that would take effect early next year. The utility has asked the Public Utilities Commission to raise the amount it charges by nearly a third over the next three years, though advocates say it’s unlikely to get that full request approved.

Residential customers would be hit with an increase of about 18 percent under the proposal. That comes as rates have increased about 75 percent over the last decade, according to the PUC’s Public Advocates Office.

The new request is among the largest in recent memory, said Matt Baker, director of the advocates office, which has argued for a smaller hike.

Also in the pipeline are a 20 percent overall request from Southern California Edison and an 18 percent request from San Diego Gas and Electric.

A Pacific Gas & Electric lineman works to repair a power line in Paradise, Calif, on Nov. 26, 2018. | Rich Pedroncelli/AP Photo

PG&E is California’s largest utility, with about 16 million gas and electric customers in a 70,000-square-mile service territory blanketing the northern part of the state.

The utility said in a statement that higher rates are critical to its efforts to upgrade the power grid and transition away from fossil fuels.

PG&E’s aging infrastructure, portions of which the utility neglected for decades, has caused several deadly wildfires. It has been upgrading that equipment, including burying wires underground to reduce risk. That work, other equipment upgrades and costs associated with rooftop solar programs have been the major drivers of higher bills, according to the public advocates office, an independent organization within the PUC.

The increase also covers electric vehicle infrastructure and interconnections to support EVs, according to PG&E’s website.

There’s no slowdown in sight for electric rates in California.

PG&E likely will be burying power lines for at least 10 years. The state’s utilities are working to bring online major new transmission lines and expand distribution capacity to support electrification of much of the state’s economy, from a booming EV market to electric homes to green ports.

At the same time, the utilities face requirements to transition from fossil-fuel-based energy to renewables while making sure there’s always enough power to keep the lights on.

A POLITICO ad appears on light rail cars in Sacramento, Calif., in August 2023. | POLITICO

CAPTION THAT TRAIN — You might have spotted the POLITICO train rolling around Sacramento! It’s all part of our California expansion.

CONTEST ALERT: We want your best photos of the POLITICO CA Express in the wild. Share them with your best creative caption using the hashtag #PoliticoCAExpress on “X” (Twitter) or Instagram so we don’t miss them. You can also send them to [email protected] and [email protected].

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HAPPY THURSDAY AFTERNOON! Welcome to California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check of California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to [email protected] or send a shout on Twitter. DMs are open!

 

A message from Heat Pump Nation Inc.:

We need a plan NOW to fight the climate crisis and protect our communities from extreme heat. AB 593 directs California to develop a comprehensive emissions reduction strategy for homes and buildings that safeguards low-income households, supports clean energy jobs, and creates resilient communities. Learn more at https://theheatpumpnation.org/california-ab593/.

 
WHAT YOU NEED TO KNOW TODAY

NEW REGIME: Two new hires have boarded the merry-go-round of committee consultancies in the California State Assembly. Speaker Robert Rivas added Susan Chan to advise him on natural resources and Tim Rainey on labor and government operations, according to a Wednesday announcement shared with legislative staff.

Chan and Rainey join Keith Cialino, who Rivas picked to focus on water, and Rosielyn Pulmano, who will focus on health. The consultants arrive in their posts with three weeks left in the legislative session and a host of thorny issues to tackle.

Chan was most recently the consultant for the Joint Legislative Committee on Climate Change. She’ll start her new role on Sept. 5. Rainey was most recently the executive director of the California Workforce Development Board.

 

SUBSCRIBE TO CALIFORNIA CLIMATE: Climate change isn’t just about the weather. It's also about how we do business and create new policies, especially in California. So we have something cool for you: A brand-new California Climate newsletter. It's not just climate or science chat, it's your daily cheat sheet to understanding how the legislative landscape around climate change is shaking up industries across the Golden State. Cut through the jargon and get the latest developments in California as lawmakers and industry leaders adapt to the changing climate. Subscribe now to California Climate to keep up with the changes.

 
 
ON THE BEATS

FIRST AID: The Central Valley hospital that was the poster child for distressed medical facilities when it closed last year will receive a $2 million zero-interest loan from the state and could get $50 million more.

Madera Community Hospital closed in December, forcing some people there to leave the county for medical treatment. It is receiving the $2 million as one of the first recipients of state largesse under the Distressed Hospital Loan Program, a $300 million program partially funded by a tax on Medi-Cal plans negotiated as part of the budget deal in June.

Madera could receive up to $50 million more if its turnaround plan is approved by the state.

More than a dozen hospitals around the state are receiving money under the program. Hospitals have 72 months to pay back loans, and can take an 18-month grace period to start paying them back. So far, $242.5 million of the $300 million pot has been awarded. — Rachel Bluth

DIVIDE AND CONQUER: California’s Supreme Court has dealt a setback to Santa Monica in a long-running case that challenges the city’s use of at-large districts for local elections.

The original suit, filed in 2016 by the Pico Neighborhood Association, argued that Santa Monica diluted the power of Latino voters with at-large elections for the City Council. The neighborhood group won its case at trial but the verdict was reversed by an appellate court.

In an opinion issued today, the Supreme Court determined the appeal’s court had misinterpreted the California Voting Rights Act and sent it back to be reconsidered.

The city of Santa Monica said it’s reviewing the new decision and hasn’t yet decided its next course of action. — Sejal Govindarao

 

A message from Heat Pump Nation Inc.:

 
AROUND CALIFORNIA

— The gunman in the mass shooting at an Orange County bar was a retired Ventura County police officer and licensed private investigator, apparently targeting his estranged wife as the couple were in the process of a divorce.

— San Francisco Police plan to use bait cars to stop the break-ins that have become an unpleasant fact of life in the city and the subject of ubiquitous online videos — an announcement that occurred just after tourists were victimized just outside the place where officials were holding their news conference.

— Workers at Kaiser Permanente hospitals in seven states, including California, and the District of Columbia will start voting Saturday on a strike that could start in October.

 

GROWING IN THE GOLDEN STATE: POLITICO California is growing, reinforcing our role as the indispensable insider source for reporting on politics, policy and power. From the corridors of power in Sacramento and Los Angeles to the players and innovation hubs in Silicon Valley, we're your go-to for navigating the political landscape across the state. Exclusive scoops, essential daily newsletters, unmatched policy reporting and insights — POLITICO California is your key to unlocking Golden State politics. LEARN MORE.

 
 
MIXTAPE

“Stunning video: Rare 'Octopus Garden' discovered off California coast,” from KTVU.

 

A message from Heat Pump Nation Inc.:

Extreme heat is here to stay. California needs a statewide plan to upgrade homes and buildings with clean cooling. AB 593 ensures that Californians can create safe and healthy climate-ready homes and communities.

YES on AB 593 for:

  • Relief from extreme heat
  • Safeguards for low income households
  • Community resilience
  • Clean energy jobs
  • Lower emissions
  • Cleaner air
Learn more at https://theheatpumpnation.org/california-ab593/.
 
 

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This post first appeared on Test Sandbox Updates, please read the originial post: here

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