Senator Pérez calls on CPUC to reject proposals that would increase electricity bills and further harm Eaton Fire victims

SACRAMENTO – Senator Sasha Renée Pérez is urging the California Public Utilities Commission (CPUC) to reject the Return on Equity (ROE) proposals by the state’s investor-owned utilities that would further harm energy affordability and negatively impact Eaton Fire victims. ROE represents how much profit the company makes for each dollar invested by its shareholders and is expressed as a percentage.  

In a letter to the CPUC, Senator Pérez points out the requested returns by Pacific Gas and Electric, Southern California Edison, Southern California Gas, and San Diego Gas and Electric— ranging from 11% to 11.75%— are unjustifiably higher than market conditions warrant, use flawed methodology, and cite outdated financial data. In addition to rejecting the proposals, Senator Pérez is asking the Commission to 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, unconnected transmission line, inactive for 56 years, may have started the Eaton Fire.

“Eaton Fire victims deserve better than this proposal that’s overloaded with profit for utility companies,” said Senator Sasha Renée Pérez (D-Pasadena). “The CPUC must recognize the negative impact on not only fire victims but everyday Californians and reject this plan.”

Joining Senator Pérez in calling on the CPUC to reject the proposals are the Sierra Club and the Affordable Energy Campaign.

"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," said Julia Dowell, Senior Campaign Organizer with the Sierra Club. "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."

"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,” said Jose Torres, Executive Director of the Affordable Energy Campaign. “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."

###

Senator Sasha Renée Pérez is Chair of the Senate Education Committee and represents the 25th Senate District that includes the communities of Glendale, Pasadena, Alhambra, Altadena, Arcadia, Claremont, Glendora, La Cañada Flintridge, La Crescenta-Montrose, Monrovia, Monterey Park, Rosemead, San Gabriel, San Marino, Sierra Madre, South Pasadena, Temple City, Fontana, Rancho Cucamonga, Upland, and San Antonio Heights.