Scars of the fire at Eaton Canyon (File Photo – Brian Biery)
Senator Sasha Renée Pérez is calling on the California Public Utilities Commission (CPUC) to reject proposed increases in Return on Equity (ROE) by the state’s investor‑owned utilities, warning that the plans would worsen energy affordability and place additional burdens on survivors of the Eaton Fire.
By News Desk
ROE represents the profit utilities earn for each dollar invested by shareholders, expressed as a percentage. Pacific Gas and Electric, Southern California Edison, Southern California Gas, and San Diego Gas and Electric have requested returns ranging from 11% to 11.75%. Senator Pérez argues these figures are “unjustifiably higher than market conditions warrant,” relying on “flawed methodology” and “outdated financial data.”
In a letter to the CPUC, Pérez urged commissioners to reject the proposals and conduct an independent ROE analysis. “In this critical moment, we cannot allow excessive utility profits to stand in the way of affordable recovery and living. By reigning in utility profits, we can ensure that communities impacted and devastated by extreme weather events have access to affordable, reliable energy. This isn’t about punishing utilities—it’s about accountability, fairness, and affordability,” Senator Pérez wrote.
Investigations into the cause of the Eaton Fire are ongoing, but Southern California Edison executives have acknowledged that an idle transmission line, inactive for 56 years, may have sparked the blaze. “Eaton Fire survivors deserve better than this proposal that’s overloaded with profit for utility companies,” said Pérez. “The CPUC must recognize the negative impact on not only fire survivors but everyday Californians and reject this plan.”
Environmental and consumer advocacy groups are joining Pérez in her call. Julia Dowell, Senior Campaign Organizer with the Sierra Club, emphasized the burden on fire survivors and households across the state: “Families who lost everything in the Eaton Fire—a fire likely sparked by SoCal Edison’s equipment—are now being asked to pay more to boost the same company’s profits. They cannot afford to subsidize excessive shareholder returns on top of that, and neither can millions of California households struggling with skyrocketing electricity rates. Senator Pérez is right to demand the CPUC reject these unjustified profit increases and prioritize affordability over Wall Street.”
Jose Torres, Executive Director of the Affordable Energy Campaign, highlighted the broader affordability crisis: “At a time when nearly one in five Californians are behind on their bills, we need an energy system that rewards affordability, reliability, and prioritizes the most vulnerable, not automatic profit increases. The CPUC has a clear choice: prioritize affordability for families, or rubber-stamp profit increases that aren’t justified. We appreciate Senator Pérez’s leadership in calling on the Commission to protect ratepayers who struggle every day just to keep the lights on.”
The CPUC is expected to review the utilities’ proposals in the coming months, with affordability and accountability at the center of the debate.
Leave a Reply