Derek Dolfie, CMUA’s Director of Energy, urged state lawmakers to avoid adding new mandates that could drive up electricity costs as publicly owned utilities work toward California's renewable energy targets.

Speaking on June 25, 2025, to the Little Hoover Commission during a hearing about California electricity costs (watch the video recording here), Dolfie emphasized that publicly owned utilities are already committed to meeting existing requirements, including achieving 100% renewable energy for retail sales by 2045 under Senate Bill 100. "We're certainly happy to go in that direction and meet those goals, but we also are asking our friends in the Legislature to make sure not to add new things to our plate," Dolfie said.

Key affordability proposals
Dolfie outlined CMUA's priorities for keeping energy costs manageable while supporting the transition to clean power:

• Cap-and-Trade: Maintaining existing allowance allocation credits and procedural flexibility for publicly owned utilities

• Regional Grid: Supporting the "Pathways proposal" to create a Western energy market, which CMUA believes would, if done correctly, improve both affordability and reliability

• Wildfire Mitigation: Addressing liability costs that particularly impact rural utilities at higher wildfire risk

Rising cost pressures
Despite typically offering rates 20% to 50% lower than investor-owned utilities, California’s publicly owned power providers face mounting cost pressures. Dolfie cited increasing power purchase agreement prices due to high demand and limited supply of renewable energy projects, partly caused by lengthy interconnection queues for new generation.

Future demand from AI data centers and transportation electrification will add further pressure, he noted.

When Little Hoover Commissioner Gil Garcetti asked about top priorities, Dolfie was direct: "Affordability is (number) one, two, and three for us as public agencies." Dolfie explained that as locally governed entities without shareholders, publicly owned utilities must be especially mindful of rate impacts on customers.

During his presentation to the Commission, Dolfie also cautioned that proposed federal changes to solar tax incentives could directly increase California electricity costs. "If the federal government removes some of these renewable energy tax incentives, there will be a direct increase in the cost of electricity in California," he told commissioners.

The hearing also featured presentations from Pacific Gas & Electric, Southern California Edison, and the California Community Choice Association (CalCCA).