OAKLAND Gov. Gavin Newsom issued an executive order that he hopes will curb skyrocketing electricity bills paid by customers of PG&E and other California utility behemoths.

While its unclear if the executive order will have any immediate effect, it does come at a time when PG&E bills have zoomed at a pace thats eight times faster than the Bay Area inflation rate. In 2023, PG&Es monthly bills for residential customers soared 22.3%. Over the same 12 months, the Bay Area inflation rate rose 2.6%.

We’re taking action to address rising electricity costs and save consumers money on their bills, Newsom said in a statement.

The order attempts to achieve several goals:

Encourage electric bill relief.

Maximize the California Climate Credit.

Manage and reduce electric costs for the long term.

Pursue smarter wildfire mitigation investments.

Newsoms order requests an array of actions from multiple California entities, including the Public Utilities Commission.

Gov. Newsom’s executive order is an important first step to solving the affordability crisis facing California families, small businesses, steel and glass makers, manufacturers, and agriculture producers, said Mark Toney, executive director of The Utility Reform Network, or TURN, a consumer group.

The governors order requests the state Public Utilities Commission to identify underperforming programs and return unused funds to customers through bill credits – that could include more one-time credits rather than vehicles to lower utility costs over the long term.

Newsom requested the state Air Resources Board to team up with the Public Utilities Commission to find ways to maximize the California Climate Credit. This credit at present reduces PG&E bills and other utility bills two months out of 12.

The executive order asks the state Public Utilities Commission to evaluate programs supported by electricity customers, examine the cost of regulation and recommend other ways to save money. The governor also wants the state Energy Commission to evaluate programs funded by electricity customers.

Newsom requested the state Office of Energy Infrastructure Safety and the state Public Utilities Commission to evaluate utility wildfire safety oversight practices and ensure that utilities pursue cost-effective wildfire mitigation.

Both PG&E and TURN said they looked forward to cooperating with the governors office to help tackle the utility bill woes that confront millions of California electricity and gas customers.

California is proving that we can address affordability concerns, Newsom stated.

Adding to those concerns, PG&E customers could pay more due to plans to keep in operation the aging Diablo Canyon nuclear power plants two reactors long-term as California works to meet an anticipated increase in demand for electricity.

PG&E expects that monthly electricity bills will increase by an average of $3.44 for the typical residential customer who uses 500 kilowatt-hours of electricity every 30 days, according to a PG&E filing with the state Public Utilities Commission.

The proposed monthly electricity bill of $215.89 in 2026 would represent an increase of 1.6% from the monthly bill of $212.45 that went into effect on Oct. 1, just a few weeks ago, the regulatory filing states.

PG&E is committed to stabilizing customers bills, said PG&E spokesperson Lynsey Paulo. We are acting to reduce our operating costs, lower our financing costs by applying for federal grants and loans and delivering near-term bill relief for our customers.

The investor-owned utility said it has achieved long-term savings by shifting its headquarters to downtown Oakland and its sale of, and exit from, a headquarters complex in San Francisco PG&E had occupied for decades.

Not everyone is convinced by the effectiveness of Newsom’s order. One consumer group suggested the governors approach fails to tackle the real problems with fast-rising electricity bills.

Ensuring utilities don’t overspend on wildfire mitigation is a good step, but way more needs to be done to rein in these companies’ profligate ways, said Jenn Engstrom, state director of CALPIRG, a consumer group.

Engstrom said the governors approach might turn out to be ineffective because it doesnt combat the true cause of increases in electric and gas bills.

Its unclear how effective a player the Public Utilities Commission will be. For over a decade, critics have lambasted the state agency for its oversight of PG&E and other utility companies such as Southern California Edison and San Diego Gas & Electric.

The governor’s executive order does little to hold utilities accountable for wasting ratepayers money, Engstrom said.