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The economic and social circumstances in the California he has managed for two terms will be the focus of attention if and when Gavin Newsom announces a presidential candidacy.
Even though Newsom constantly boasts about the state’s accomplishments, anyone can see its ongoing issues, like a high rate of homelessness. They will be the intense focus of his opponents and the political media.
California’s extremely high housing and other basic living expenses would be the subject of assaults on Newsom in 2028, especially in light of the circumstances of the previous year’s presidential election, where concerns about growing living expenses contributed to Californian Kamala Harris’ defeat to Donald Trump.
Newsom has been making every effort to shield himself from this kind of criticism. He directed his government to crack down on cities that obstruct construction, for instance, and passed legislation to increase home creation.
Newsom directed California’s Public Utilities Commission, Air Resources Board, and state Energy Commission to come up with proposals on how to lower the high costs of energy, especially electricity, in October of last year, just days before Harris’ defeat.
At the time, Newsom stated, “We’re taking action to address rising electricity costs and save consumers money on their bills.” As we continue to lead the world in addressing the climate problem, California is demonstrating that we can handle affordability concerns.
According to a monthly compilation by the California Center for Jobs & the Economy, an affiliate of the California Business Roundtable, California has the highest residential and commercial power costs in the lower 48 states of the union. Because of its comparatively warm temperature, California has the ninth-highest actual power bills, according to the research.
Low-income families are most affected by power costs, particularly those who reside in inland towns where summer temperatures frequently surpass 100 degrees and necessitate frequent usage of air conditioning. That finding was validated this week by a report from the Public Policy Institute of California.
According to PPIC authors Tess Thorman, Patricia Malagon, and Paulette Cha, growing household power expenses in California over the last ten years have significantly exceeded rising incomes for low- and middle-income families. Income was starting to catch up with expenses for low-income households just prior to the pandemic, but between 2019 and 2021, everyone’s high electrical bill burden increased.
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The California Public Utilities Commission’s attempts to keep an eye on utility bill affordability emphasize the significance of geography. Households in hotter regions—specifically, the northern section of the state, the San Joaquin Valley, and portions of the Inland Empire—cannot afford electricity.
In February, the CPUC and the Energy Commission responded to Newsom’s directive, but they provided few practical measures to lower utility costs. The CPUC pointed out that there are already programs in place to assist low-income families with their power bills, which are mostly funded by utility total revenues. It also recommended that these programs be expanded using non-ratepayer funding, such as budget appropriations.
Additionally, it criticized the fact that homeowners who put solar panels on their roofs typically earn good salaries but make little contribution to the electricity grid—a problem that has been discussed in the Capitol for many years. After intense campaigning, Assembly Bill 942, a piece of legislation that would have cost solar panel owners a fortune, was reduced to little more than a token this year.
Even thinner gruel was the Energy Commission’s report on power costs, which mostly congratulated itself for enacting regulations for appliances and other power-consuming gadgets that decreased their demands.
In summary, Californians’ power rates are already extremely high and may rise further as utilities are under pressure to lessen the risk of power lines starting wildfires. Given their ongoing budget shortfalls, lawmakers and Newsom are unable to address this issue.
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