Democratic California Gov. Gavin Newsom claimed the “one big, beautiful bill” will spike electricity costs on Sunday, seemingly ignoring the fact that ratepayers in state are drowning under some of the most exorbitant utility bills in the U.S.
Newsom took to X and listed several grievances he has with the GOP reconciliation bill, including concerns that its passage would lead to rising electricity costs because it would limit subsidies for green energy. California has some of the highest energy prices in the U.S., and they are projected to keep climbing, according to multiple reports and energy sector experts.
“Electricity costs could go up by 30%,” Newsom said of the GOP megabill. “This is one of the most destructive bills in U.S. history.”
– Largest transfer of wealth to the rich in American history.
– Largest cut to Medicaid in American history.
– Largest cut to food assistance in American history.
– Electricity costs could go up by 30%.
– Millions of jobs could disappear.
– $4 trillion will be added to the…
— Gavin Newsom (@GavinNewsom) June 29, 2025
Californians shell out 140% more for electricity than other states, according to California Globe. The Golden State has set stringent zero-emissions targets, with Newsom calling for an 85% reduction in greenhouse gas emissions by 2045.
California’s push for green energy technology has caused it to produce more solar and wind power than it can use, requiring the state to build out battery storage facilities and pay neighboring states to take California’s excess electricity. Notably, a heavy reliance on wind and solar technology can weaken the electricity grid, energy policy experts explained to the Daily Caller News Foundation previously.
President Donald Trump has slammed the “green tax credits” left in the reconciliation package and called for a removal of all wind subsidies and “the rest of this JUNK” on June 21. The GOP-controlled Senate dealt several blows to green energy provisions in the “one big beautiful bill” on Saturday, moving up the deadline for wind and solar projects in an amendment to the original Senate phase-out plan that was panned by critics.
Several California power plants and refineries are closing or have closed in recent years as restrictive regulations push them to leave the state, adding to California’s energy woes.
In 2024, California officials agreed to extend the life of three natural gas power plants through 2026 to strengthen the grid and avoid potential blackouts. The state has dealt with power grid problems for years, with Newsom asking Californians to conserve electricity usage during peak hours to mitigate the outage risk in September 2022 amid a prolonged heat wave.
California gas prices are also among the highest in the U.S. and they are expected to increase again on Tuesday as amendments to the state’s gasoline tax kick in. The state also imposes a low-carbon fuel standard based on a credit trading system created to promote lower-emissions fuels, allowing producers that emit less than the limit to earn credits, which they can sell to those who go over the threshold.
The state’s cap-and-trade program for emissions has also been linked to high energy prices in California.
Newsom’s office did not respond to the DCNF’s request for comment.
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