California Gov. Gavin Newsom has signed bills aimed at reshaping the state’s energy landscape and controlling rising electricity costs. One measure, SB 905, directs the California Public Utilities Commission (CPUC) to consider lowering returns on lower-risk projects, including undergrounding power lines. The change could affect earnings at utilities such as Pacific Gas & Electric and Southern California Edison.
Another bill simplifies the process for homeowners to install plug-in solar panels without utility permission. Consumer and environmental groups have praised the measures.
Utilities warn that limiting returns could discourage investment needed to modernize the grid and meet growing demand from electric vehicles and data centers.