(Bloomberg) -- California Governor Gavin Newsom ordered state agencies to look for ways to lower electricity rates that have become some of the nation’s highest, so long as any proposed cuts don’t threaten the fight against climate change.
The move comes as Newsom, a Democrat, tries to address a growing affordability crisis in the most populous US state, taking steps to address chronically high costs for housing and fuel. In an executive order signed Wednesday, he directed several state agencies that oversee California’s energy system to examine programs funded by utility bills, looking for ones that can be modified or cut. Recommendations are due to the governor by Jan. 1.
Newsom also asked one of the agencies — the California Public Utilities Commission — to report on state laws that could be changed to reduce bills. None of proposed changes, he said, could jeopardize public safety, the reliability of the electric grid or the state’s goal of reaching carbon neutrality by 2045.
Average rates for the state’s two biggest electric utilities — PG&E Corp. and Edison International’s southern California unit — have risen 51% in the last three years, according to a recent commission report. The increases largely have been driven by infrastructure investments and efforts to prevent power lines from sparking wildfires.
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