Proposal to Cut Electricity Rates by 30% Advances in State Legislature

California lawmakers aim to provide relief to residents facing rising utility costs

Apr. 12, 2026 at 3:25pm

A vibrant, abstract painting of an electricity pylon or power lines, with overlapping geometric shapes and waves of color representing the volatility of energy prices.A legislative push to cut California's soaring electricity rates could provide relief to residents and businesses struggling with high utility costs.Paradise Today

A proposal to cut California's electricity rates by 30% has moved forward in the state legislature. Assembly Member James Gallagher is leading the effort, citing reports that identify ways to reduce costs for consumers. The bill would also ensure full compensation for victims of devastating wildfires, like the Camp Fire in Paradise, whose claims have gone unmet.

Why it matters

California has some of the highest electricity rates in the nation, with costs rising over 40% in the past 6 years. This has put a significant financial strain on residents, especially those recovering from natural disasters. Addressing these high utility bills is a key priority for lawmakers looking to provide relief.

The details

Gallagher's proposal would tackle a number of factors contributing to the high electricity rates, including underperforming utility programs, the state's cap-and-trade system, and the diversion of wildfire prevention funds. The bill would also require audits of utility companies' wildfire mitigation plans to ensure ratepayers are not overpaying. Additionally, it would establish mechanisms to fully compensate victims of wildfires like the devastating Camp Fire in Paradise.

  • Electricity rates in California have risen an average of 12% per year since 2013.
  • PG&E's electricity prices have gone down 4 times in the past 2 years, but customers have not seen significant relief on their monthly bills.

The players

James Gallagher

A California Assembly Member who has introduced legislation to cut electricity rates by 30% and ensure full compensation for wildfire victims.

Paradise

A town in California that was devastated by the 2018 Camp Fire, leaving many residents uncompensated for their losses.

PG&E

California's largest utility company, which has faced criticism for its role in recent wildfires and high electricity rates.

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What they’re saying

“We know and we've seen report after report that there are ways we could cut rates and that we could bring down costs for the consumer and so I'm just saying hey it's about time we did that. Let's take some of these recommendations. Let's find ways to actually lower people's rates. I don't want to just stop them from going up. I want to stop. I want to actually make them go down because people need relief now.”

— James Gallagher, California Assembly Member

“These are all things that we could look into that ultimately would help lower rates.”

— James Gallagher, California Assembly Member

What’s next

The proposal will now move through the state legislative process, with Gallagher hoping to get the bill to the governor's desk this year.

The takeaway

This legislation represents a concerted effort by California lawmakers to provide much-needed relief to residents struggling with the state's high electricity costs, while also ensuring wildfire victims receive full compensation for their losses.