Gavin Newsom Wants a Climate Bailout

The California Governor has a revelation about rising electric rates

WSJ editorial. 

"Tuesday’s election appears to have turned on an LED bulb switch in Sacramento. Lo, California Gov. Gavin Newsom has discovered that his state’s high electric rates are hurting Democrats and now—get this—he wants folks in Waukesha, Wis., to pay for his state’s climate folly.

Electric rates in California have risen on average by 57% in the last five years, more than twice as much as nationwide. Enter Mr. Newsom, who on Wednesday issued an executive order to ensure “electric service remains affordable, reliable, and safe for all Californians during our clean energy transition.” Electricity now is neither reliable nor affordable.

It’s nice of Mr. Newsom to concede in his order a point we’ve made for years: “Californians’ electric rate increases have been driven largely by the cost of some programs added over time, such as the subsidy provided through the legacy Net Energy Metering program for rooftop solar photovoltaic systems.”

California’s net-metering program pays utility customers with rooftop solar panels for excess power they generate and remit to the grid at retail rates, which are two to three times as high as the wholesale cost of power. The average utility customer without rooftop solar pays 10% to 20% of his electric bill to subsidize rooftop solar customers.

Mr. Newsom also singles out wildfire mitigation as a cost-driver. But other Western states must protect their grids from the same danger [wildfire], and their electric rates are less than half of the Golden State’s. What’s the matter with California? Answer: Its aggressive renewables mandate, which requires utilities to procure solar and battery power at higher cost.

California’s cap-and-trade program also requires natural gas-fired plants to pay for CO2 emissions permits. The state Public Utilities Commission (PUC) says the program raises electric rates, though customers receive biannual “climate credits” on their bills to offset some of the program’s cost—in April (when taxes are due) and October (before elections).

The PUC says the credit “helps to offset [rate] increases while preserving the incentive for customers to conserve energy and reduce GHG emissions.” In other words, the purpose of cap and trade is to raise energy prices to force people to use less energy.

Mr. Newsom now wants his energy commission to identify programs and regulations “that may be unduly adding to rates, for which the electricity system benefits may not be justified by the costs.” This applies to all of the state’s climate mandates and programs.

Unwilling to renounce climate religion, he directs his regulators “to pursue any federal funding available to help lower electricity costs for Californians.” That sounds like he wants people in states with more sensible energy policies to subsidize progressive lunacy. That’s what the Biden Federal Energy Regulatory Commission is trying to do via a regulatory back door.

It’s possible Mr. Newsom could get a job in a Harris Administration. Americans stung by surging electric rates these past few years, look out. It can always get worse."