Maria Stamos advocates for SB 332 to reform California's utility rate system

The Assembly Utilities and Energy Committee of the California State Assembly convened on July 9, 2025, to discuss significant legislative proposals aimed at reforming the state's utility framework. A central focus of the meeting was Senate Bill 332 (SB 332), which seeks to prioritize ratepayers over corporate profits in the management of investor-owned utilities (IOUs).

The discussion highlighted that California's IOUs charge rates that are over 50% higher than those of publicly owned utilities. Under the current system, customers bear the full costs of infrastructure projects while also providing an average profit margin of 10% to the utilities. This structure has led to concerns that IOUs are incentivized to inflate project costs, ultimately harming consumers.

Maria Stamos, policy director at the Ubuntu Climate Initiative, provided testimony in support of SB 332. She emphasized the need for a shift in focus from maximizing shareholder returns to ensuring affordable and safe energy for California residents. Stamos pointed out the historical context of utility-caused disasters, such as devastating wildfires, which have resulted in significant financial burdens on communities.

SB 332 proposes a public study to evaluate alternative ownership and financing models for utilities that could lead to safer and more affordable energy solutions. Additionally, the bill includes reforms that would tie executive compensation to affordability metrics rather than solely to shareholder profits. It also aims to improve data transparency regarding utility disconnections, which could inform future decisions on affordability.

Stamos reassured the committee that the bill would protect labor interests, as the study would involve collaboration with a university labor center to ensure that any transitions would safeguard jobs and pensions. She concluded her testimony by urging the committee to support the bill, framing it as a necessary step toward a more equitable energy future for California.

Following Stamos's testimony, the committee opened the floor for additional support, indicating a strong interest in the proposed reforms and their potential impact on California's energy landscape. The meeting underscored the urgency for legislative action to address the systemic issues within the state's utility framework.