Tom Steyer Vows to Cut Electricity Bills by 25%, But Experts Say the Details Fall Short

January 29, 2026

Cal Matters

Severin Borenstein, Energy Institute Faculty Director, argues in Cal Matters that California’s high electricity rates are driven mainly by fixed infrastructure and wildfire-prevention costs, making large bill cuts difficult to achieve.

“Of the nearly 40 cents-per-kilowatt-hour charged to the average Californian who uses electricity from one of the three major private utilities, ‘the amount that’s up for competition is probably in the range of 12 to 15 cents,’ Borenstein said. 

Borenstein said though proposals for residents and business owners to generate and sell power locally could improve energy reliability, he’s concerned they could also just shift the fixed costs of wildfire improvements and maintaining power lines onto other users.”

Photo: calmatters.org