But that’s what concerns many Pacific Gas & Electric Co. customers who cannot afford to pay their soaring utility bills. As of February, more than 1 million of them were behind on payments.

The California Public Utilities Commission, tasked with regulating private utilities, just approved another rate hike last month, on top of a previous increase that took effect in January, amounting to a roughly $400 annual bump for the average household. The staggering energy costs have rocked residents and business owners, who are exasperated by the inability of state leaders and commissioners to ease their financial pain.

With rates becoming increasingly unsustainable, the long-term repercussions for those already living paycheck to paycheck seem dire. More broadly, could these elevated costs serve as an impediment to wider adoption of all-electric vehicles and appliances? Will PG&E or the CPUC commissioners who approve these outrageous increases face any consequences? 

The utility’s negligence and aging infrastructure has led to loss of life, property and – in the case of Paradise – an entire California town. Nevertheless, consumers are paying the price for the consequences of their mistakes and the cost of preventing future ones. 

“They’re outraged and they’re frustrated,” Assemblyman James Gallagher, a Chico Republican and Minority Leader, said of his constituents. Over the years, Gallagher has authored multiple laws to compensate wildfire survivors and help communities recover. 

“The cost of living is already so high, and to add another rate increase, people are very angry about it,” he continued. “They don’t understand it. Why is it that rates keep going up, when you have a company that made (more than) $2 billion in profit last year?”

So far, answers to such pressing questions remain elusive, and potential solutions far from assured. 

In February, Gallagher, along with Republican Assemblymember Joe Patterson, introduced legislation that would order the CPUC to cut electricity rates by 30%. If Assembly Bill 2205 is pushed through, Gallagher hopes it will ease the burden on families and businesses. 

“We’re putting the PUC in a position where they’re proactively looking out for consumers and not looking out for utility companies,” he said.

In response to public outcry, the state’s utility regulators proposed a new, tiered billing structure designed to make the price of electricity less expensive for residential customers. Under the proposal, customers of PG&E, Southern California Edison and San Diego Gas & Electric would pay an income-based rate, helping reduce bills for lower-income customers.

According to the CPUC, the billing structure would include a flat rate of $24.15 per month for most households, which would reduce the price of electricity by 5-7 cents per kilowatt hour. If approved, it would go into effect late 2025 and early 2026.

This proposal, however, has already sparked fierce debate, and comes on the heels of a prior recommendation for a fixed rate. That proposal also received pushback from lawmakers who argued that the pricing structure might do more harm than good for low-income households.

Some legislators, including Jacqui Irwin, a Thousand Oaks Democrat who recently called the CPUC “completely out of touch,” want to repeal the proposal establishing an income-graduated fee and replace it with Assembly Bill 1999, capping the fixed charge at $10 ($5 for low-income customers).

Legislative maneuvering aside, affordable energy and climate advocates like Mark Toney, executive director of The Utility Reform Network, believe that placing a cap on utility rate hikes is just one part of the solution. Regulators should also require utilities to exercise fiscal discipline on spending, he said. Utilities, Toney explained, should not be given a “credit card with no limit and a guarantee that someone else is going to pay.” 

TURN is backing the Utility Accountability Act, a sensible bill that would prohibit utilities from using funds collected from ratepayers to pay for advertisements, political activities or membership dues of trade associations engaged in lobbying. It would also require utilities to document and disclose their spending.

Another sticking point is charging utility customers for climate initiatives that reduce wildfire risk or expand clean energy. With its ambitious climate goals, California can ill afford to discourage people from helping reduce the impacts of a warming planet.

By increasing the cost for using electricity, “that’s not rewarding people for good behavior,” Toney said. 

Gallagher contends that climate mandates can be costly requirements passed onto consumers, and routinely hears from constituents exhausted by the rate spikes and sometimes one paycheck from losing everything. PG&E failed to modernize and keep up with vegetation management, but now wants to place more underground utility wires and send consumers the bill. 

Undergrounding, he added, doesn’t have to be done everywhere just yet.

“There needs to be a greater focus on modernizing this infrastructure, but how do we go about that without putting all the burden on consumers?” Gallagher said. “A shareholder fund could be part of that, or maybe some state interest in modernizing the grid. All these things should be brought to the table.”

For Ahmad Faruqui, an energy economist based in Danville, a remedy cannot come soon enough. The No. 1 concern of friends and neighbors remains the exorbitant cost of electricity, which has been rising faster than the rate of inflation. People are just “doing their best to pay the mortgage, car payments and their children’s education,” he said. 

At some point, though, customers will grow too weary of the financial strain. Faruqui predicts there could be a “huge backlash” for the governor and legislators if it’s not brought under control.

“We are paying for their blunders,” Faruqui said of PG&E.

Californians deserve better than what they’re getting from the state’s largest and most expensive utility company – and the commission charged with regulating it. With no relief in immediate sight, more people will be faced with impossible choices, contemplating which necessities should be sacrificed just to light up their homes at night. 

Those are choices no utility customer should ever have to make. 

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This is a result of VA’s new 2023 policy that eligible American Indian and Alaska Native Veterans are no longer required to make copayments for VA health care, urgent care, or prescriptions. Under this policy, VA also reimburses for copayments paid on or after Jan. 5, 2022. 

“To live their best lives, Veterans need access to affordable health care,” said VA Under Secretary for Health Shereef Elnahal, M.D. “This copayment exemption honors our treaties with sovereign nations and the distinguished service of American Indian and Alaska Native Veterans.”

Eligible Veterans include any American Indian and Alaska Native Veteran who meets the definitions of “Indian” or “urban Indian” under the Indian Health Care Improvement Act.

VA is continuing to receive, review, and process documentation for the copayment exemption. To apply for the copayment exemption, Veterans should mail 1) a completed VA Tribal Documentation Form (VA Form 10-334), and 2) a copy of official tribal documentation to VHA Tribal Documentation at P.O. Box 5100, Janesville, WI 53547.

Find more information on the copayment exemption for American Indian and Alaska Native Veterans. 

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“President Biden promised to build on the success of the Affordable Care Act, and just one year into his Administration, we have already broken records with all-time high enrollment numbers and all-time low prices,” said HHS Secretary Xavier Becerra. “We will continue working to deliver on that promise until we make health care a right for all.” 

During the first full year of the Biden-Harris Administration, nearly 6 million new consumers signed up for coverage through the Marketplaces nationwide during the 2021 Special Enrollment Period (SEP) and this year’s Open Enrollment Period (OEP). This includes 2.8 million people who newly enrolled during the SEP and more than 3 million who newly enrolled during the OEP. Thanks to the ARP, Marketplace plans were more affordable than ever, contributing to a record-breaking 14.5 million consumers nationwide signing up for health care coverage – a 21 percent increase from last year. 

“On the 12^th Anniversary of the ACA, it is clear that the Affordable Care Act and the American Rescue Plan are working to expand access to health care coverage and have been critical to advancing health equity,” said CMS Administrator Chiquita Brooks-LaSure. “The Biden-Harris Administration’s ARP subsidies were successful and ensured that more Marketplace consumers than ever had access to quality, affordable health care and the peace of mind that comes with having health care coverage that best fits their needs.” 

A report released by the HHS Office of the Assistant Secretary for Planning and Evaluation (ASPE) showed that more Americans have gained coverage during 2021, as the ARP and other Administration policies took effect. In addition, without the ARP, the average monthly premium after Advanced Premium Tax Credit (APTC) for HealthCare.gov enrollees would have been $59 per month higher, or 53 percent higher. According to a new ASPE report released today, an estimated 3.4 million Americans currently insured in the individual market would lose coverage and become uninsured if the ARP’s premium tax credit provisions are not extended beyond 2022. 

Finally, the uninsured rate fell after implementation of the ARP, the 2021 SEP, and expanded outreach efforts. The uninsured rate for the U.S. was 8.9% for the third quarter of 2021 (July – September 2021), down from 10.3% for the last quarter of 2020. 

The Biden-Harris Administration has made it a priority to continue to strengthen the ACA. President Biden is committed to building on the progress made by the ACA by reducing premiums for the millions of Americans enrolled in Marketplace coverage and closing the Medicaid coverage gap, which would lead to four million uninsured people gaining coverage. Over 18.7 million adults are now covered across 39 states (including the District of Columbia) due to Medicaid expansion, though 12 states have not expanded.  

The Biden-Harris Administration also recently announced a new SEP opportunity for low-income consumers with household incomes under 150% of the Federal Poverty Level who are eligible for premium tax credits under the ACA and ARP, which is approximately $19,000 for an individual and $40,000 for a family of four in 2022. In states that use the HealthCare.gov platform, 45% of consumers who signed up for health coverage during the 2021 SEP had household incomes under 150% of the Federal Poverty Level. This new SEP will make it easier for low-income people to enroll in Marketplace coverage throughout the year and benefit from the ARP savings.

HHS is hosting a week-long celebration of the 12-year anniversary of the ACA, from March 21 through March 25, highlighting the impact of the law and the Biden-Harris Administration’s commitment to building on its success. The theme of this week-long celebration is: “ACA: 12 Years of Advancing Health Equity for All Americans.” During the week, each day, HHS will spotlight ways in which the ACA has made gains in addressing health disparities of women and families, kids, older adults, people with disabilities, LGBTQI+ and communities of color.  

Please view the State of the ACA Report here.

To view the 2022 Open Enrollment Report, visit: https://www.cms.gov/files/document/health-insurance-exchanges-2022-open-enrollment-report-final.pdf.

 To view a comprehensive Briefing Book on the ACA, highlighting HHS reports from the past year, visit: https://aspe.hhs.gov/reports/aca-accomplishments.

 High resolution photographs are available from the recent commemoration of the 12th Anniversary of the ACA and may be accessed here: https://cmsbox.app.box.com/s/t83tnhtwk9ahg6pprgcfxow4bkl6f04m/file/934549102386.

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