California Senate Bill 312 on Utility Rate Caps Moves Forward, Targeting Bakersfield Household Energy Expenses

California Senate Bill 312 would limit how much investor-owned utilities can raise rates on homes each year. The legislation applies to Pacific Gas and Electric customers in Bakersfield and other parts of Kern County. It sets a maximum annual increase tied to inflation plus one percentage point for the next three years.

The bill comes as the California Public Utilities Commission reviews multiple rate cases this summer. State budget documents show Kern County households spent an average of $172 per month on electricity and gas in 2025. Lawmakers introduced the measure after the commission approved a 13 percent rate hike for PG&E territory last December.

Effects on local household spending

Bakersfield residents who heat homes with natural gas would face smaller winter bills under the cap. Families using electric air conditioning during summer months would also see slower growth in charges. The legislation directs utilities to spread any allowed increases evenly across residential, commercial and industrial classes rather than loading costs onto homes.

Policy analysts note that the average Kern County household devotes 4.8 percent of income to energy costs, above the statewide figure of 3.9 percent. Local advocates point out that many residents in zip codes 93301 and 93306 already qualify for the state Low-Income Home Energy Assistance Program. The bill would not change eligibility rules but would reduce the size of future rate requests those programs must cover.

Timeline and remaining steps

The Senate Energy Committee approved the bill on a 9-2 vote last week. It now moves to the Senate Appropriations Committee for a fiscal review scheduled for July 15. If it clears that panel, the full Senate could vote before the August recess. The Assembly would then take up the measure in September. The governor has until October 12 to sign or veto any bill that reaches his desk.

Utilities have filed comments with the commission arguing that the cap could delay grid upgrades in high-growth areas such as southwest Bakersfield. The legislation states that the Public Utilities Commission must still approve all rate changes and can grant exceptions only for documented safety or reliability needs. State analysts project the measure would affect roughly 148,000 residential accounts in Kern County if enacted.