There’s been a shakeup at the top of the California Public Utilities Commission, the agency whose responsibilities include regulating the state’s investor-owned power companies, including San Diego Gas Electric. CPUC President Alice Reynolds is stepping down after more than four years at the he lm, and Gov. Gavin Newsom has tapped Commissioner John Reynolds  (who is not related to Alice Reynolds) to replace her. Newsom, who appointed Alice Reynolds to the CPUC presidency in November 2021, announced Wednesday that she will move over to the Board of Governors of the California Independent System Operator. The system operator, known as CAISO, manages the flow of electricity across high-voltage, long-distance power lines that make up 80% of California’s and a small part of Nevada’s grid. In a news release, Newsom’s office described the changes as “transitions to build on his agenda, marking the next phase to lower utility bills, ensure wildfire safety spending delivers real value, and hold utilities accountable for safe, reliable, and affordable service.” Complaints from ratepayers about shouldering ever-increasing electricity bills have become a major economic and political issue in California. The average per kilowatt-hour price for electricity has roughly doubled since 2013 for all three major investor-owned utilities in the state — SDGE, Pacific Gas Electric and Southern California Edison — according to a 2024 report from the CPUC. The same report predicted electric rates will rise 5.6% to 10.8% annually through 2027, well over the rate of inflation. “From day one, Alice Reynolds has been one of my most trusted advisers on energy policy,” Newsom said in a news release. “Under her leadership, the CPUC brought online a record amount of clean energy, helping make California a global leader in cutting pollution, while advancing policies to lower costs for customers and more equitably distribute rates.” In a joint statement, Alice Reynolds said, “It has been an honor of a lifetime” to serve as CPUC president while John Reynolds said he looks “forward to continuing the state’s work to drive towards more affordable utility services while supporting safe and reliable infrastructure that delivers on our ambitious climate agenda.” Outgoing California Public Utilities Commission president Alice Reynolds, left, at a public hearing in August 2023. Reynolds is stepping down and has been appointed by Gov. Gavin Newsom as a member of the California Independent System Operator's board of governors. CPUC Commissioner Darcie Houck is seen on the right. (AP Photo/Godofredo A. Vásquez) State policymakers have mandated California’s power system to derive 100% of its retail electricity from carbon-free sources by 2045. In 2022, Newsom set benchmarks for the state to reach 90% by 2035 and 95% by 2040. With Alice Reynolds leaving the commission, Newsom also announced that Christine Harada has been appointed as one of the CPUC’s five voting commissioners. Hailing from La Crescenta-Montrose, Harada has been undersecretary of the California Government Operations Agency since August. Before that, she served as senior adviser at the U.S. Office of Management and Budget for two years. The moves are the latest in a flurry of CPUC leadership changes. Just last month, Leuwam Tesfai was named the commission’s new executive director — a position that oversees the CPUC’s day-to-day operations. A San Diego native, Tesfai has worked at the CPUC since 2011 and replaced former executive director Rachel Peterson, who had held the job for five years. In its oversight role, the CPUC has ultimate say on the rates the state’s investor-owned utilities charge, as well as implementing laws passed by the Legislature and signed by the governor that relate to environmental and energy directives that affect power companies and their customers. For years, the commission has been a target of critics. Some say it has a too-cozy relationship with the utilities it regulates, while others complain about what they see as an opaque bureaucracy and the CPUC’s role in facilitating policies that lead to high monthly bills. “The issue of affordability … is top of mind,” Newsom said in September. Gary Ackerman, a utilities and energy consultant with more than four decades of experience in California power issues, commended Alice Reynolds’ tenure, saying, “She was a steady hand at the wheel.” But Ackerman said the challenges ahead are daunting. “I think the big tasks before the commission are still there — they’re no easier, and they’re no different just because they have some new actors,” Ackerman said. “They still have to bring down customer rates, and that’s going to be extremely difficult given the amount of investment in grid strengthening and wildfire mitigation, plus all these new large loads that are coming across the country, including California, which will cause investment in new transmission to go up as well. We’ve got a tough row to hoe.” The juggling of spots at the CPUC should also be seen through a political lens. Newsom is wrapping up his second and final term in office. California will elect a new governor in November, and the winner may want to reshape the commission in his or her image. The governor can name a new CPUC president at any time, plus appoint new commissioners once their staggered six-year terms expire. All five of the commissioners currently sitting at the CPUC, for example, were appointed by Newsom during his two terms as governor. While the governor can appoint CPUC commissioners, the state Senate must confirm them within one year. John Reynolds, a Democrat, will be paid $256,451 as the commission’s new president. Harada, also a Democrat, will have a salary of $215,632. As for Alice Reynolds, the CAISO said she will replace Angelina Galiteva, who has served on the system operator’s board of governors since 2011. In a post on X, the CAISO said it was “deeply grateful” for Galiteva’s “dedicated leadership.” It did not say when Reynolds will start, but “we look forward to welcoming her to the Board as we continue our work to advance reliability and affordability for electricity customers across the West.” The CAISO Board of Governors reviews and approves the organization’s annual budget, shapes policies and approves grid planning and market design changes. Reynolds’ pay will be $50,000. ...read more read less