Energy Costs in California: A Call for Change

Residents in California are highly concerned about escalating energy costs. Electricity rates have surged, and gas prices fluctuate with international conflicts. Families are facing costs they didn’t create and can’t control. Fortunately, high energy prices aren’t unavoidable. Choices determine them.

Before serving in Congress, I worked as an environmental lawyer advocating for affordable clean energy. This experience confirmed that renewable energy is among the fastest and cheapest options for the grid. Denying access to it burdens families with higher costs.

Understanding Energy Cost Dynamics

Energy costs increase through two interconnected paths. First, the price of energy rises when lower-cost sources are sidelined, forcing reliance on unpredictable fossil fuels. Second, there’s the financial impact from the environmental damage these fuels cause, reflected in insurance, disaster-related expenses, and taxes. Both issues are worsening due to foundational choices.

Financial Impact of Misguided Energy Choices

The repercussions of poor energy decisions are becoming apparent. In 2024, the National Oceanic and Atmospheric Administration reported 27 billion-dollar weather and climate disasters, resulting in $183 billion in damage. Over five years, such incidents have cost over $746 billion, affecting insurance costs, utility rates, and taxes.

In Los Angeles, wildfires worsened by climate change claimed 440 lives, displaced over 200,000, and devastated Altadena and Pacific Palisades residents, leaving them with recovery costs and limited federal support. Disasters force families and taxpayers to bear the financial burden.

Examining Beneficiaries and Payors

It’s essential to determine who benefits when affordable energy is pushed aside and who bears the costs. The fossil fuel industry has long taught Americans to dismiss climate change. Today, their strategy involves undermining scientists, influencing judges, and rewriting the laws before evidence is evaluated.

The debate is central to the Supreme Court case Suncor v. Boulder. The court will rule on whether states, tribes, and local governments can pursue legal action to recoup disaster costs exacerbated by the industry’s misleading tactics about climate change.

Documents from Exxon dating back to the 1970s and 1980s warned executives of the severe climate impact of fossil fuel consumption, while publicly they questioned the science. Many cases in states like California await the court’s decision.

Targeting Scientists and Courts

Before releasing the National Academies of Sciences report on the 2021 Pacific Northwest heat wave, opposition researchers scrutinized scientists’ emails. This led to a panel member resigning over political attack fears and another being removed after facing criticism from an oil-industry site. A Congress member sought records before the report, indicating the campaign’s reach.

Evidence suggests efforts to influence the judiciary. A Guardian investigation disclosed seminars funded by a fossil fuel-funded center provided to federal judges at George Mason University’s law school, funded by entities like ExxonMobil and the Charles Koch Foundation.

Fundraising materials encouraged skepticism of climate science among judges. Sessions featured figures such as Chris Wright, former fracking CEO and current Secretary of Energy. Congressional allies aim to legislate protection for these companies against liability.

Impact on Families

The biggest polluters avoiding the cost of their harm shifts financial burdens to families. Similar shifts happen in utility companies who pass infrastructure expenses onto residential customers to cater to corporations that should self-finance. Electricity costs have increased by 13 percent since the previous administration, before global turmoil further raised gas prices.

Recently, I partnered with Rep. Sean Casten (D-Ill.) to propose the Energy Bills Relief Act, supported by over 160 House members. This legislation promotes affordable clean energy, reinstates cost-saving tax credits, invests in home energy efficiency and assistance for low-income families, accelerates grid access, and ensures data centers and large corporations pay their share, preventing cost shifts to families.

The fossil fuel industry employs deceptive practices. Deny, delay, and deflect financial responsibility onto others. Americans must recognize this, as these costs appear on their energy bills. A proactive approach is crucial for both environmental health and personal finances.

Mike Levin represents California’s 49th District in Congress.