PG&E: Harder Calls for Ban on Ratepayer Money Being Used for Political Advocacy by Utilities

Despite state bans, utilities can skirt rules by funneling payments to industry associations for ads, lobbying

Harder demanding FERC ban utilities from seeking to recover those payments from ratepayers

STOCKTON – Today, Rep. Josh Harder (CA-09) called on federal regulators to close a major loophole used by utilities to funnel ratepayers’ bills for political advocacy. In a new letter to the Federal Energy Regulatory Commission (FERC), Harder called on the agency to launch rulemaking that would ban utilities like PG&E from using consumer payments for trade association dues that fund lobbying, advertisements, and political influence.

“Raising rates year after year and using those payments to cut political ads and lobby government is an outrage, and it should be illegal,” said Rep. Harder. “I’m calling on the Federal Energy Regulatory Commission to close the loophole that lets greedy utilities skirt the law and pay for political advocacy through industry associations. Our utility bills should be paying for safe, reliable power - not double as a political contribution.”

Harder’s letter to FERC urged the agency to initiate rulemaking that would:

• Close the Loophole by making industry association dues presumptively non-recoverable from ratepayers unless a utility can clearly demonstrate that the expense directly benefits customers.
• Strengthen Federal Law by prohibiting utilities from charging ratepayers for lobbying, grassroots advocacy, issue advertising, or other political and influence-related activities.
• Increase Transparency by requiring clear public disclosure of significant payments to industry associations and similar organizations, including how much of those costs utilities seek to recover from customers.

Harder’s demands come at a time of record rate increases by PG&E – electricity rates have more than doubled in the last decade, including through six rate increases in a single year. PG&E is currently pursuing annual rate increases through 2030 of more than $100 a year, alongside seeking a multi-million shareholder reward payment.

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