Becerra Promises Frozen Utility Bills and Free Power for Working Families

California Governor-elect Xavier Becerra has pledged to freeze home insurance premiums and utility bills while providing two hours of free electricity daily to eligible working families. He introduced the initiative, dubbed Power Hour, in August. The program aims to shift electricity usage to afternoon hours when solar generation is plentiful and production costs are lower.

The proposal lacks a detailed funding plan or a specific price tag. Energy economist Severin Borenstein estimated that a typical household would likely save no more than $200 annually under the current design. Borenstein noted that electricity bills also cover infrastructure, wildfire expenses, and other costs that cheap afternoon generation does not eliminate. He stated that substantial short-term relief would require shifting some expenses to other revenue sources, most likely the state budget.

Legislative leaders have not yet committed to supporting the plan. Assembly Speaker Robert Rivas and Senate President pro Tempore Monique Limón have not indicated their backing, according to ABC7. Campaign spokesperson Jonathan Underland told The Sacramento Bee that the team was still developing details. State constitutional expert Chris Micheli said the freezes would almost certainly require approval from utility regulators or incoming Insurance Commissioner Jane Kim.

Insurance industry representative Seren Taylor warned that a premium freeze would encourage insurers to leave California. Kim said she had not discussed the proposal with Becerra. Consumer advocates argue that lasting savings require tighter control over utility spending and profits. UC Berkeley energy researcher Travis Ritchie said the Power Hour could lower bills and ease grid pressure by encouraging target customers to use abundant afternoon solar power before demand peaks around sunset.

Ritchie identified wildfire spending as California’s largest driver of electricity rate increases. Regulators authorized PG&E, Southern California Edison, and SDG&E to collect $27 billion in wildfire-related costs through rates following catastrophic fires in 2017 and 2018. Those expenses now account for as much as 19% of an average residential bill. Ritchie urged officials to reduce investor returns on wildfire projects and enforce utility budgets.

David Pomerantz, executive director of the Energy and Policy Institute, said a freeze must come with reforms including lower profit margins and stronger regulators. The group’s report found that 110 investor-owned electric utilities collected approximately $186 billion in profits from 2021 through 2024. Preliminary 2025 results from 79 utilities showed an average profit margin of 14.6%. Southern California Edison reported a 26.11% margin in that dataset.

Utility companies have already moved money to influence the political landscape. PG&E directed more than $13 million to an independent committee opposing Democrat Tom Steyer, indirectly benefiting Becerra. An anti-Steyer committee received nearly $12 million from a business committee whose donors included PG&E, Sempra Energy, Edison, and Chevron. Those four companies collectively supplied roughly $7 million to that business committee.

Becerra’s earlier campaigns also received utility money. An Energy and Policy Institute review counted $28,500 from PG&E, $70,500 from Southern California Edison, and $69,800 from Sempra/SDG&E across his congressional and attorney general campaigns. Other utilities and trade associations contributed $38,000, bringing those contributions to $206,800. Utility-affiliated labor groups supplied another $42,600.