Power bills in California have jumped nearly 50% in four years. Democrats think they have solutions

SACRAMENTO, Calif. (AP) — California lawmakers this week advanced several efforts aimed at reining in utility profits and slashing electricity bills as part of their agenda to tackle the sky-high costs of living.

The proposals would make sweeping changes to how utilities fund expensive infrastructure projects like putting power lines underground to guard against wildfires. They also would add more oversight around wildfire mitigation spending and put new requirements on utility requests to increase rates. Supporters said the goal is to make the big investor-owned utilities start sharing some of the costs to fight wildfires and build new transmission infrastructure.

“This is not a set of modest tweaks that will make minor improvements at the edges of a problem without offending anyone,” said Democratic State Sen. Josh Becker, the bill’s author. “This is a big deal.”

One of the bills is part of the state Senate's package to address affordability amid growing concern about the high costs of everything from gas to groceries. Democratic Gov. Gavin Newsom signed an executive order last year urging lawmakers to do something to address skyrocketing electricity rates, which rose 47% on average for residential customers between 2019 and 2023, according to the nonpartisan Legislative Analysts Office.

But Republicans, who are in the minority in both chambers, say Democrats are not meaningfully addressing high prices. They did not support the energy reform bills, saying it wouldn't lower costs, and they unsuccessfully tried to force a vote on a proposal to limit utilities from raising power rates above the rate of inflation.

Utility rate increases in recent years have been approved by state regulators in part to help investor-owned utilities bury power lines and conduct vegetation management projects aimed at stopping wildfires. Some of the deadliest and most destructive fires in recent years have been sparked by power equipment. Pacific Gas & Electric, whose equipment sparked a 2018 wildfire that killed 85 people in 2024, raised its rates six times to help cover the costs of putting power lines underground and other improvement projects.

While one in every five ratepayers can't pay their power bills, utilities like PG&E raked in record-breaking profits last year, according to The Utility Reform Network, a ratepayer advocacy group. The group supports Becker's measure and has sponsored a similar effort in the Assembly. PG&E spokesperson Mike Gazda said the electricity bills in April are about 3% lower than last year and that bills are expected to go down next year with some fees becoming expired.

“There are no limits to how much the utilities can ask for in rate increases. There are no limits to how many times a year they can ask,” said Mark Toney, the group's executive director. “You can’t blame them for asking for the sky.”

Under Becker's proposal, utilities would be required to use public financing to fund the first $15 billion spent on capital investment projects. The option would allow utilities to access funding with lower interest rates, and utilities also would be prohibited from collecting a return on that investment for shareholders. That would save customers $8.8 billion over the next 10 years, Becker said.

The bill would also set up a state-backed fund to reimburse utilities for wildfire projects, among other things. But the state may not have money to pay for that this year.

The bill would also increase oversight of utility budgets and their wildfire spending. Utilities would have to include at least one rate increase proposal that doesn't exceed the rate of inflation in their requests. The proposal also calls for $60 billion worth of credits to apply on bills over the years during the summer months when usage is often at its peak.

Senate Democrats overwhelmingly advanced Becker's measure this week. But Republicans, utilities and the California Chamber of Commerce said it would only drive up more costs. The legislation “moves today's utility costs around without eliminating them,” the chamber said in a letter in opposition. New regulations around rate increase and shareholder returns also could halt utilities' investment in preventing wildfires or enhancing the grid, the letter said.

Republican State senators said rising power bills are caused by Democrats' policies and push for more electric vehicles and less reliance on fossil fuels. In the Assembly, meanwhile, Republicans have called for permitting reforms to make it faster and cheaper to build better utility infrastructure.

“The regulation regime that we have in this state is oppressive and definitely drives prices,” said Sen. Roger Niello, a Republican. “Your package of affordability is rather modest in number, but it is even more modest in its potential impact.”

Lawmakers also advanced a slew of other measures aiming to provide relief to ratepayers, including one that would prohibit utilities from using rates to pay for lobbying efforts and one that would allow California to join a regional energy market with other Western states to help increase grid reliability.

FILE - People walk around the California State Capitol, Aug. 5, 2024, in Sacramento, Calif. (AP Photo/Juliana Yamada, File)

WASHINGTON (AP) — President Donald Trump is meeting with oil executives at the White House on Friday in hopes of securing $100 billion in investments to revive Venezuela’s ability to fully tap into its expansive reserves of petroleum — a plan that rides on their comfort in making commitments in a country plagued by instability, inflation and uncertainty.

Since the U.S. military raid to capture former Venezuelan leader Nicolás Maduro on Saturday, Trump has quickly pivoted to portraying the move as a newfound economic opportunity for the U.S., seizing tankers carrying Venezuelan oil, saying the U.S. is taking over the sales of 30 million to 50 million barrels of previously sanctioned Venezuelan oil and will be controlling sales worldwide indefinitely.

On Friday, U.S. forces seized their fifth tanker over the past month that has been linked to Venezuelan oil. The action reflected the determination of the U.S. to fully control the exporting, refining and production of Venezuelan petroleum, a sign of the Trump administration's plans for ongoing involvement in the sector as it seeks commitments from private companies.

It's all part of a broader push by Trump to keep gasoline prices low. At a time when many Americans are concerned about affordability, the incursion in Venezuela melds Trump’s assertive use of presidential powers with an optical spectacle meant to convince Americans that he can bring down energy prices.

The meeting, set for 2:30 p.m. EST, will be open to the news media, according to an update to the president's daily schedule. “At least 100 Billion Dollars will be invested by BIG OIL, all of whom I will be meeting with today at The White House,” Trump said Friday in a pre-dawn social media post.

Trump is set to meet with executives from 17 oil companies, according to the White House. Among the companies attending are Chevron, which still operates in Venezuela, and ExxonMobil and ConocoPhillips, which both had oil projects in the country that were lost as part of a 2007 nationalization of private businesses under Maduro’s predecessor, Hugo Chávez.

The president is meeting with a wide swath of domestic and international companies with interests ranging from construction to the commodity markets. Other companies slated to be at the meeting include Halliburton, Valero, Marathon, Shell, Singapore-based Trafigura, Italy-based Eni and Spain-based Repsol.

Large U.S. oil companies have so far largely refrained from affirming investments in Venezuela as contracts and guarantees need to be in place. Trump has suggested on social media that America would help to backstop any investments.

Venezuela’s oil production has slumped below one million barrels a day. Part of Trump's challenge to turn that around will be to convince oil companies that his administration has a stable relationship with Venezuela’s interim President Delcy Rodríguez, as well as protections for companies entering the market.

Secretary of State Marco Rubio, Energy Secretary Chris Wright and Interior Secretary Doug Burgum are slated to attend the oil executives meeting, according to the White House.

Meanwhile, the United States and Venezuelan governments said Friday they were exploring the possibility of r estoring diplomatic relations between the two countries, and that a delegation from the Trump administration arrived to the South American nation on Friday.

The small team of U.S. diplomats and diplomatic security officials traveled to Venezuela to make a preliminary assessment about the potential re-opening of the U.S. Embassy in Caracas, the State Department said in a statement.

Trump also announced on Friday he’d meet with President Gustavo Petro in early February, but called on the Colombian leader to make quick progress on stemming flow of cocaine into the U.S.

Trump, following the ouster of Maduro, had made vague threats to take similar action against Petro. Trump abruptly changed his tone Wednesday about his Colombian counterpart after a friendly phone call in which he invited Petro to visit the White House.

President Donald Trump waves as he walks off stage after speaking to House Republican lawmakers during their annual policy retreat, Tuesday, Jan. 6, 2026, in Washington. (AP Photo/Evan Vucci)