The Utility Reform Network (TURN) says that as investigations continue into the cause of the January L.A. fires, power companies are already lobbying the California Public Utilities Commission for another rate increase.
"Utilities can ask for unlimited rate increases. There's no cap, which sounds crazy," Lee Trotman with TURN told KNX News Special Correspondent Steve Gregory.
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The group pores over thousands of pages of legislation and policy to stop unnecessary rate hikes and hold investor-owned utilities (IOUs) more accountable.
According to Trotman, the four major CA utility companies spent nearly $22 billion on lobbying last year, and these efforts have allowed utilities to limit their liability for destructive wildfires, even if they're to blame.
"If you look at the 4 IOUs, most of them recorded record profits this year," Trotman said.
Not only are the companies working to limit their financial risk, the California Public Utilities Commission has created a wildfire fund to prevent investor-owned utilities from filing for bankruptcy. Because if they do, Trotman said, "It makes California almost uninvestable...It's a bad look, and it really hurts California's credit rating."
The commission-created account exists for utilities to draw from to pay out lawsuit settlements, but of course, the money comes from ratepayers, which puts even more of the cost onto the customers.
Trotman says his group supports holding investors more liable for settlements, especially if utilities' negligence contributed to the cause of a fire.
June 6th is a key deadline for legislation to advance from their points of origin and either move forward or stall, and he says this is usually where bills that hold utilities more accountable or stop further rate increases die.
Trotman is urging people to be more engaged by attending public hearings, calling lawmakers, and helping groups like his spread the word.
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