Little Hoover Commission to start rolling affordability series with electricity-cost study

The Little Hoover Commission directed staff to begin a study of electricity and utility costs as "Act 1" of a proposed rolling series on statewide affordability and asked staff to return at the next meeting with a plan for additional studies.

Commissioners framed electricity as a concrete, legislatively requested starting point. Commissioner Hernandez noted a narrow request from Senator Bradford and Assembly Member Ortega to examine "public purpose programs in electricity costs," while other commissioners urged a broader look at utilities and related barriers such as permitting delays. "If you take the issue of affordability and then you diagram it out, what are the elements," the chair said as staff summarized options.

Supporters said the topic is tractable and urgent for households. Vice Chair Canela argued a state-led PUC review may undercount problems and called a Commission review worthwhile. Commissioner Garcetti described how utility connections and local permits can delay occupancy work for accessory dwelling units, saying DWP scheduling sometimes takes "4 to 7 months" and produces lost opportunities. Commissioner Beyer added that some cost increases reflect policy choices and subsidies tied to environmental goals and urged the Commission to be candid about trade-offs.

Staff said two distinct legislative requests exist: a narrower electricity-focused request and a broader literature-review request on statewide affordability from other legislators. Ethan (staff) recommended proceeding now with a study of electricity/general utility costs and simultaneously preparing a proposal for a series of follow-on studies; commissioners signaled agreement.

Next steps: staff will return at the Commission's next meeting with a proposed scope and sequencing for the electricity study and options for subsequent affordability topics.