The Utility Reform Network (TURN) has raised concerns about the financial burden on California's ratepayers, who are grappling with "record-breaking bills" that are allegedly pushing families into poverty and homelessness. The organization points out that Californians are dealing with escalating costs for basic necessities such as housing, food, utilities, and insurance.
In a press release, TURN revealed that the California Public Utilities Commission is planning to collect $516 million prematurely from PG&E ratepayers to safeguard PG&E’s credit rating. The consumer advocacy group highlighted that PG&E has several pending requests for rate hikes in addition to the average monthly increase of $35 that came into effect on January 1. TURN emphasized the urgency of the situation by stating that Californians are confronted with "skyrocketing bills" and require immediate relief.
Michael Webb, a resident of California, expressed his frustration over the state’s high costs for essentials like insurance and utilities on a social media platform. He lamented, "It’s ridiculous how we’re either the top in the nation or in the top 5 of everything," Webb added, "No wonder why so many people and businesses are leaving California. Housing cost, rent, car insurance premiums, gas, electricity, water, and taxes just to name a few. Can’t win!"
Over the past year, residents of California have been hit by significant price hikes for various necessities. Data from the Bureau of Labor Statistics’ (BLS) Consumer Price Index indicates that residents in the Western Region - which encompasses all of California - are paying 2.3% more for food, 4.8% more for rent, and 11.5% more for electricity since February 2023.
According to F&P law firm, "legal system abuses" are contributing factors to rising insurance costs. The firm cited outsized jury verdicts as one such "abuse." Drawing upon a study from the American Transportation Research Institute, F&P revealed that for lawsuits in the trucking industry with verdicts over $1 million, the average verdict amount surged almost 970% between 2010 and 2018, from $2.3 million to $22.3 million. The firm quoted Robert Passmore, vice president of the American Property Casualty Insurance Association, who said, "In addition to inflation trends, the private passenger auto insurance sector is also experiencing several other trends such as increased frequency and severity of claims cost, riskier driving behavior by the public, cost increases for medical and hospital services, and outsized growth in lawsuit verdicts and legal system abuses, that are negatively impacting and pressuring the industry with increased losses."
TURN is an independent consumer advocacy organization operating statewide, as per its website. For half a century, TURN has been committed to helping California residents and small businesses save money. The organization offers information on energy and telephone issues to consumers.