My Plan to Lower Your Electric Bills

Households shouldn't be forced to pay more so that utilities can earn a guaranteed 10 percent return on their investments. As an investor, I know utilities can significantly reduce this rate and still attract equity financing. Even a two-percentage-point reduction would put hundreds of dollars every year back in the pockets of households—starting right now—and save Californians billions of dollars annually.

I have publicly called for the California Public Utilities Commission (CPUC)— some of whose members will finish their terms next year—to reject utility profit increases. As governor, I'll fill CPUC vacancies with people willing to take on utility lobbyists and protect ratepayers.

Most businesses succeed by pursuing the most efficient way to safely and reliably meet their customers' needs. But because utilities profit by spending on expensive physical infrastructure, they would rather build a costly new distribution line than efficiently upgrade an existing one. The only check on this excessive spending is whether regulators can withstand the intense pressure of utility lobbyists.

I'll make sure that expensive, years-long projects are never greenlit without sufficient scrutiny, especially when there are cheaper, faster, and better ways to upgrade the system. Every investment should enhance the quality and affordability of the system.

Utilities like to finance projects with equity capital since that comes with a guaranteed double-digit rate-of-return—good for shareholders and executives, but not for customers.

Building on recent legislation, I'll push for expanded use of public revenue bonds to finance projects like transmission lines and local energy distribution. This way, customers can benefit from necessary upgrades without rapid price hikes. A recent analysis found that public-private financing for transmission infrastructure can save Californians $3 billion per year.

Utilities' focus on guaranteed profits and gold-plated capital expenditures, whether or not they are more effective or efficient, has led to an electric grid that is overbuilt and undermaintained.

I'll appoint regulators who push utilities to get more out of the grid and assets we already pay for. This includes grid-enhancing technologies that are safe, efficient, and don't require expensive capital projects, like dynamic line ratings, power flow controllers, and advanced reconductoring. I'll also push for much needed updates to planning and load management systems, many of which still run on Excel workbooks.

Too many utility leaders have ignored operational improvements in favor of profit and short-term returns—as recent electricity outages in California show. I'll appoint regulators capable of identifying these shortcomings when corporate executives can't or won't.

If we reduce the risk of wildfires, everybody wins—including the utilities themselves. When they fail to prioritize safety over big new capital expenditures, dividend payouts, and bonuses to executives, the consequences can be devastating. The Eaton Fire, which was likely caused by out-of-commission utility equipment, was a direct result of utility monopolies putting profits over public safety.

Utilities must invest more in things like vegetation management and de-commissioning old and potentially dangerous equipment, even if those investments do not carry big capital returns.

California also needs a leader who is serious about making our state a global model for wildfire prevention and management. I'll expand forest management programs, leverage technology to detect and quickly respond to fires, and increase investments in home hardening and defensible space. By aligning incentives with investments in safety, we can attract insurers back to California and significantly reduce electricity bills for households.

Over the last five years, the three major utilities spent more than $50M in lobbying and political contributions meant to get their projects and proposed rate increases approved. Through NextGen CA, I supported AB 1167 in 2025, which prohibits utilities from using ratepayer dollars for promotional expenses like lobbying.

As Governor, I will be a voice for households struggling with energy costs. I'll work to change an entrenched system that serves the wrong interests. This includes banning utility contributions to candidates and reforming state oversight of utility companies to better serve the people of California.

The main drivers of recent increases in electricity costs are the cost of transmission and distribution. But I also believe that customers should have choices about where they buy their power.

Today, some California counties are providing households with alternatives via a community choice aggregator (CCA), which pools residents' electricity-buying power and shops for power on their behalf, instead of each household being stuck with whatever the local utility sells. Many CCAs emphasize increasingly affordable clean power sources.

As governor, I'll expand the scope and decision-making authority of effective CCAs and provide support to counties seeking to give consumers more choice and expand competition.

Utilities often let connection requests linger for five years or more, blowing past state-mandated timelines with no consequences or accountability. They are missing interconnection deadlines as much as 73 percent of the time.

This means power sources that could be used to meet increased demand for power, meet California's renewable targets, and position the state as a leader for affordable and reliable clean energy are being sidelined. There is no excuse for this inaction, which prevents the state from benefiting from affordable onsite solutions that offer alternatives to what utility monopolies provide.

I'll require that utilities prioritize connection requests and impose stiff financial penalties if they fall short of state-mandated targets.

Companies building AI data centers are some of the wealthiest and best-funded companies in the world. It is entirely reasonable to demand that their activities don't raise bills for households, and that they support the maintenance and growth of California's overall electrical infrastructure. They should pay their own way, and be transparent about the water, energy, and other impacts their operations will have on surrounding communities.

Load growth from data centers can be helpful—if it spreads infrastructure costs across a broader base and uses technology and expanded battery storage to manage demand from commercial customers at peak times. Done right, overall increases in demand should bring consumer prices down.

But this must be managed through well-designed and carefully implemented policy. As Governor, I'll prioritize projects that cut prices for households and make sure that everyone—especially the biggest technology companies—pays their fair share.