Newsom Touts GOP Bill Will Spike Energy Rates—As Californians Already Pay the Price
California Governor Gavin Newsom warned this week that the Republican-backed “One Big Beautiful Bill” could hike electricity prices by up to 30%. But critics quickly noted that Californians are already grappling with some of the highest energy costs in the nation.
In a post on X, Newsom criticized the bill’s proposed rollback of federal green energy subsidies, saying it would harm states like California that have aggressively pursued renewable energy targets.
Yet, according to the California Globe, residents in the Golden State pay 140% more for electricity than the national average. The state’s energy policies—centered around ambitious climate goals—have created a power system that some experts say is financially unsustainable.
California’s climate strategy includes reducing greenhouse gas emissions by 85% by 2045. To achieve this, the state has overbuilt wind and solar capacity while struggling with storage limitations. As a result, excess power is often offloaded to neighboring states, a process that ironically costs California even more.
In 2024, the state extended the life of three natural gas plants to avoid blackouts—highlighting the fragility of California’s power grid. Meanwhile, environmental rules have forced older power plants and refineries offline, shrinking supply and driving prices even higher.
On the national front, President Donald Trump slammed leftover “green tax credits” in the GOP bill, calling them “junk” and demanding the repeal of wind subsidies. The Senate passed an amendment last week to speed up deadlines for wind and solar projects, drawing protests from climate activists.
Meanwhile, California’s gas prices remain the highest in the U.S., with a new increase set for this week due to state fuel tax adjustments. On top of that, the state’s low-carbon fuel standard further increases prices by allowing high-emission producers to buy credits from cleaner competitors.
As the national debate over energy policy continues, Californians are left paying the price—literally—for a vision of green energy that’s proving more expensive than expected.
