A $72 Credit Won’t Fix California’s Utility Profit Machine

The OC Register’s August 31 article celebrating a one-time electricity bill credit coming in September through California’s Cap-and-Invest program reflects a disconnect from the reality facing California families. A temporary credit does not address electricity rates that have skyrocketed to among the highest in the continental United States or address the relentless efforts by SoCal Edison and other investor-owned utilities to protect and grow their profits while families struggle to pay their bills.

The average SoCalEdison customer paid $2,436 for electricity last year — more than double the cost in 2016. A one-time $72 credit amounts to just 3% of an average annual SCE electricity bill. That is not meaningful rate relief. It does nothing to address the underlying affordability crisis: the soaring costs of utility wildfire spending and shareholder profits that are driving up our bills.

SoCalEdison and the rest of the utilities are spending millions to rig our utility system—and California families are paying the price.

In 2025 and 2026 so far, PG&E, SoCalEdison and Sempra spent a staggering $16.7 million lobbying California officials and regulators.

What has all that money bought them?

Record profits. Edison International, SCE’s parent company, reported $4.9 billion in 2025 net income—more than triple the previous year—making it the most profitable investor-owned electric utility in the country. The company explicitly credited California regulatory decisions and wildfires as a key driver of its financial performance.

And there’s no end in sight. On Edison’s July earnings call, the CEO told investors to expect 5%–7% annual earnings growth through 2030. CFO Aaron Moss said that outlook is supported by a “constructive regulatory framework.” In plain English, that means that California’s regulatory system is working very well for Edison’s shareholders.

It’s also bought them a utility bailout. In 2025, utilities backed last-minute legislation that the Los Angeles Times called “effectively a bailout,” shifting billions in future wildfire costs from shareholders to California customers and taxpayers.

Opposing accountability. In 2026, utilities opposed a host of reforms to increase accountability and reduce their spending. One of them, AB 1774, which would have required independent audits before ratepayers handed over more wildfire-mitigation money. A prior audit found PG&E, Edison and SDG&E could not account for $2.5 billion of the $6 billion customers had already paid them for wildfire mitigation. Today, utilities collect roughly $9 billion every year for wildfire mitigation without any ongoing financial audits. AB 1774 died quickly in the legislative process. 

Several reforms are now on the Governor’s desk that would begin putting downward pressure on utility bills, increase scrutiny of utility spending, reduce unnecessary grid costs, and strengthen wildfire prevention—most notably SB 905 and SB 1098. By signing these bills, the Governor will give hope to California families, realizing critical reforms that will help stop the relentless upward trend of our bills.

The $72 Climate Credit is a public-relations shield for a utility system that has more than doubled our bills while promising investors continued earnings growth.

California families don’t need another temporary credit. They need structural reform that actually lowers their bills.