California

Why is it like this in California?

California's residential electricity rates — about 33.8¢/kWh statewide and substantially higher in PG&E and SCE territories — reflect wildfire-related grid hardening costs, transmission upgrades, and the state's clean-energy procurement programs, all passed through to ratepayers. Gasoline is also expensive at $5.95/gal, the highest in the country, due to California's unique fuel-blend requirements and refining capacity constraints. Electric still wins on per-mile cost, but the margin is narrower than in most of the country.

In the news · California

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  Refinery fire spotlights California's gas supply crunch and high prices at the pump

  CalMatters · Oct 7, 2025

  The October 2025 fire at Chevron's El Segundo plant — California's second-largest refinery — hit as Phillips 66's LA refinery wound down and Valero's Benicia plant was scheduled to close in April 2026, together knocking out roughly 17% of in-state refining and locking in structural upside risk on California pump prices.

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  California's Fuel Fears Threaten Benicia's 'Just Transition' to Green Economy

  KQED · Sep 4, 2025

  Valero's planned April 2026 shutdown of its Benicia refinery — about 9% of California's gasoline supply — shifts Northern California toward imports under CARB-spec fuel rules, structural pressure on pump prices that outlasts any conflict-driven spike.

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  California PUC lowers utilities' return on equity by 0.3 percentage points

  Utility Dive · Dec 19, 2025

  The CPUC voted 4-1 to trim allowed ROE for PG&E, SCE, SoCalGas, and SDG&E by 0.3 points (PG&E lands at 9.98%). The move saves ratepayers around $100M but barely dents bills because wildfire-related costs still account for nearly 30% of PG&E's revenue requirement — the structural driver keeping California residential rates near 34¢/kWh.

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  California just passed a suite of bills to tackle rising energy costs

  Canary Media · Oct 15, 2025

  Newsom signed SB 254 and a companion package projected to save ratepayers around $10B by substituting public financing for utility-rate-base spending on wildfire hardening and transmission — Sacramento's most concrete attempt yet to bend the curve on residential rates that are now roughly double the U.S. average.

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  California sues Trump for blocking its clean-air rules for cars, trucks — and vows to set new mandates

  CalMatters · Jun 12, 2025

  After Trump signed CRA resolutions revoking California's Advanced Clean Cars II waiver, AG Bonta filed suit and Newsom directed CARB to write a new mandate. The fight is central to whether California's EV-share trajectory — and the demand assumptions behind CPUC charging-rate design — materializes.

Curated coverage of California's EV/PHEV cost, policy, and infrastructure story. External links open in a new tab.

West region comparison