Monday, November 17, 2025

State Senator Pérez Urges Utilities Commission to Reject Utility Profit Hike, Citing Harm to Altadena’s Eaton Fire Victims

Senator Sasha Renee Perez via Facebook

State Sen. Sasha Renée Pérez (D-Pasadena) is calling on the California Public Utilities Commission to reject proposed profit increases by investor-owned utilities, warning the move would further burden Altadena residents affected by the Eaton Fire and exacerbate energy affordability statewide.

In a letter to the CPUC, Pérez criticized Return on Equity (ROE) proposals submitted by Pacific Gas and Electric, Southern California Edison, Southern California Gas, and San Diego Gas and Electric. The utilities are seeking ROEs between 11% and 11.75%—figures Pérez described as “unjustifiably high,” based on outdated financial data and flawed methodology. ROE represents how much profit a company makes for each dollar invested by its shareholders and is expressed as a percentage.

The letter, released as part of a public statement from Pérez’s office, also urges the Commission to conduct an independent analysis of ROE benchmarks to ensure fairness and accuracy.

“In this critical moment, we cannot allow excessive utility profits to stand in the way of affordable recovery and living,” Pérez wrote. “By reigning in utility profits, we can ensure that communities impacted and devastated by extreme weather events have access to affordable, reliable energy. This isn’t about punishing utilities—it’s about accountability, fairness, and affordability.”

The Eaton Fire, which destroyed homes and displaced residents in Altadena, remains under investigation. However, Southern California Edison executives have acknowledged that an idle, unconnected transmission line—unused for 56 years—may have sparked the blaze.

“Eaton Fire victims deserve better than this proposal that’s overloaded with profit for utility companies,” Pérez said in the statement. “The CPUC must recognize the negative impact on not only fire victims but everyday Californians and reject this plan.”

Pérez, who represents Altadena as part of the 25th Senate District, is also chair of the Senate Education Committee.

Environmental and consumer advocacy groups have joined Pérez in opposing the proposals. Julia Dowell, senior campaign organizer with the Sierra Club, said it is unjust to ask fire survivors to “pay more to boost the same company’s profits.”

“Families who lost everything in the Eaton Fire—a fire likely sparked by SoCal Edison’s equipment—are now being asked to pay more to boost the same company’s profits,” Dowell said. “They cannot afford to subsidize excessive shareholder returns on top of that, and neither can millions of California households struggling with skyrocketing electricity rates. Senator Pérez is right to demand the CPUC reject these unjustified profit increases and prioritize affordability over Wall Street.”

Jose Torres, executive director of the Affordable Energy Campaign, noted that nearly one in five Californians are behind on utility bills.

“At a time when nearly one in five Californians are behind on their bills, we need an energy system that rewards affordability, reliability, and prioritizes the most vulnerable, not automatic profit increases,” Torres said. “The CPUC has a clear choice: prioritize affordability for families, or rubber-stamp profit increases that aren’t justified. We appreciate Senator Pérez’s leadership in calling on the Commission to protect ratepayers who struggle every day just to keep the lights on.”