Drivers of Diverging Electricity Costs in California

The is titled "Wires and fire: Wildfire investment and network cost differences across California’s power providers," authored by Madalsa Singh, Alison Ong, and Rayan Sud. The article analyzes the drivers of rising electricity costs in California, specifically comparing three types of power providers: investor-owned utilities (IOUs), publicly owned utilities (POUs), and community choice aggregators (CCAs). The authors find that while IOU and CCA rates have dramatically increased, making them some of the most expensive in the U.S., POU prices have remained stable, largely due to differences in exposure to wildfire mitigation costs and varying investment in transmission and distribution (T&D) infrastructure. The study examines long-term trends in capital assets, returns, and operation and maintenance (O&M) expenses to explain the growing price divergence among these providers.