Democratic California Governor Gavin Newsom claimed on Sunday that the “one big, beautiful bill” would drive up electricity costs, seemingly overlooking that ratepayers in the state are already burdened with some of the highest utility bills in the country.
Newsom took to X to outline several criticisms of the GOP reconciliation bill, expressing concern that its passage could increase electricity prices by reducing subsidies for green energy. California currently faces some of the highest energy costs in the U.S., with multiple reports and energy experts projecting further increases. “Electricity costs could go up by 30%,” Newsom said of the GOP megabill. “This is one of the most destructive bills in U.S. history.”
But in fact, Californians pay 140% more for electricity than residents of other states, according to California Globe. The Golden State has established ambitious zero-emissions goals, with Newsom calling for an 85% reduction in greenhouse gas emissions by 2045.
California’s aggressive push for green energy has led to an oversupply of solar and wind power, forcing the state to invest heavily in battery storage and even pay neighboring states to absorb its excess electricity. Experts have previously warned that an overdependence on wind and solar can destabilize the electric grid, the Daily Caller reported.
President Donald Trump blasted the “green tax credits” still included in the reconciliation bill on June 21, demanding the elimination of wind subsidies and what he called “the rest of this JUNK.” On Saturday, the GOP-led Senate delivered multiple setbacks to green energy provisions in the “one big beautiful bill,” including an amendment that accelerates the deadline for wind and solar projects, drawing backlash from environmental advocates.
Meanwhile, California’s energy challenges continue to mount as several power plants and refineries have shut down or are preparing to close due to increasingly burdensome regulations, all of which have contributed to the state’s exorbitant electricity prices.
In 2024, California officials approved an extension allowing three natural gas power plants to remain operational through 2026 in an effort to shore up the grid and prevent blackouts. The state has long struggled with power reliability, prompting Gov. Gavin Newsom to urge residents to conserve electricity during peak hours, most notably during a severe heat wave in September 2022, the outlet reported.
Gas prices in California remain among the highest in the nation and are set to rise again on Tuesday as new amendments to the state’s gasoline tax take effect. Additionally, California enforces a low-carbon fuel standard that operates on a credit trading system: fuel producers who emit below the set threshold earn credits they can sell to higher-emitting companies, further driving up costs for consumers.
