Electricity rates have surged nationwide, but the gap between investor-owned and public utilities is widening fastest in California. (Inside Climate News)
By the numbers: From 2019–2023, rates for PG&E, SCE, and SDG&E rose 48–67%, outpacing public utilities like LADWP and SMUD, whose rates remained about 50% lower.
Experts cite several causes: IOUs’ higher borrowing costs and shareholder returns, heavy wildfire mitigation spending, and state-mandated clean energy programs that weigh more on private utilities.
Municipal utilities borrow more cheaply, avoid federal taxes, and face less exposure to wildfire liability—but they are starting to raise rates as they accelerate capital spending to meet California’s 100% clean-energy goals by 2045.