Soaring monthly electricity bills charged by SDG&E and its utility siblings could hobble California’s quest for a green energy Holy Grail, a disquieting new state report shows. San Diego Gas & Electric, Pacific Gas & Electric and Southern California Edison levy charges for monthly bills that are far higher than the national average, making California electricity rates the second highest in the United States, the state Legislative Analyst’s Office reported on Tuesday. “California’s electricity rates are among the highest in the country,” the Legislative Analyst’s Office reported. “On average, residential electricity rates in California are close to double those in the rest of the nation.” The increase in electricity bills has been nothing short of shocking, especially when compared with the overall inflation rate. “Average residential electricity rates in California have grown faster than inflation in recent years, rising by about 47% over the four-year period from 2019 through 2023 compared to overall growth in prices of about 18%,” according to the report from the Legislative Analyst, a nonpartisan group that provides the state Legislature with advice and information. From 2019 through 2023, monthly electricity rates for residential customers have increased by an average of 48% for PG&E, 57% for San Diego Gas & Electric and 67% for Southern California Edison, according to the report prepared by Helen Kerstein, an analyst in the office’s environment and transportation unit. The report determined that multiple factors appear to have fueled the jaw-dropping surge in electricity costs in California. Among the key influences: — significant and increasing wildfire-related costs. — the state’s ambitious greenhouse gas reduction programs and policies. — differences in utility operational structures and services territories. “High and increasing electricity rates add cost burdens to ratepayers across the state,” the Legislative Analyst’s Office reported. “Many residents who earn lower incomes or live in hotter regions of the state are feeling these growing costs even more acutely.” Only Hawaii has higher electricity rates than California, the report determined. California is also in danger of creating an energy catch-22 whereby the push to go green could hobble the state’s clean power efforts. “High electricity rates impede the state’s efforts to meet its ambitious climate goals by discouraging households from pursuing electrification through switching out their fossil fuel-powered cars and appliances,” the report stated. Gov. Gavin Newsom and the state Legislature are among California’s most forceful proponents of a green energy future. The report pointed out five key issues that California political leaders must confront regarding the green energy and soaring electricity bills dilemma: — Increasing stringency of greenhouse gas emission reduction laws for the electricity grid. State officials must decide how to balance the ambitious greenhouse gas reduction goals against the inevitable costs that will result for customers. — Accommodating more electricity demand from electrification. Califoria leaders must decide how to pay for the costs of the infrastructure required for electrification in ways that balance the state’s goals. Related Articles Energy | Will California’s power grid keep running smoothly? Energy | Biden issues ban on offshore oil and gas drilling in most federal waters. Trump vows to undo it Energy | Will California’s zero-emission truck rules work for the long haul? Energy | State approves higher SDG&E rates Energy | Your San Diego utility bill may go up about $2 per month to keep California’s only nuclear power plant going — Growing demand for funding to support state climate policies. State lawmakers and administrators must determine how much utility customers, state taxpayers, or both, must pay to bankroll these goals. — Wildfire-related costs. Stafe officials must decide how to curb wildfire risks — and pay for the necessary work to control destructive wildland blazes. — Tradeoffs related to fixed charges that face customers of big utilities such as PG&E, San Diego Gas & Electric and Southern California Edison. California leaders must design rates in a way that encourages beneficial electricity use while limiting the cost burden on certain households. The burden for all this will fall primarily on the state Legislature and California’s future governors, the report warned. “High electricity rates will impede the state’s efforts to meet its ambitious climate goals, discouraging households from pursuing electrification by switching out their fossil fuel-powered cars and appliances,” the Legislative Analyst’s Office stated. “In the coming years, the Legislature likely will confront difficult decisions about how to approach electricity rates.”