California’s energy sector is run like a mafia

California, known for its beautiful landscapes and booming economy, is now at the center of a controversy that has residents reeling from sky-high electricity bills. According to YouTuber RJ, the state’s energy sector is operating in a manner eerily similar to organized crime, with Governor Gavin Newsom and the California Public Utilities Commission (CPUC) at the helm of the alleged corruption.

The problem with rising electricity costs

RJ begins by highlighting the alarming rise in electricity costs in California. For years, residents have been struggling with some of the highest energy prices in the country, and the situation is only getting worse. RJ points out that while other states like Florida have managed to keep their energy costs relatively low, prices in California continue to rise, often faster than rent in many areas. This, he argues, is a direct result of the state’s mismanagement and the unchecked power of the CPUC.

The role of the California Public Utilities Commission

The CPUC, a five-member board appointed by Governor Newsom, is at the center of RJ’s critique. He describes how the commission has systematically raised electricity rates with little or no oversight, while being shielded from judicial review. Unlike other states, where decisions by such bodies can be challenged in court, California’s CPUC operates with near-impunity, answerable only to the governor.

RJ’s Mafia Allegory: A Corrupt System

RJ doesn’t mince his words when he compares California’s energy sector to a mafia operation. He claims that the CPUC’s structure and actions reflect those of a corrupt organization headed by Newsom. This commission, he claims, has approved price increases that benefit public utilities like Pacific Gas and Electric (PG&E) while hurting residents.

Residents resist: a growing protest

The backlash against these rising costs is growing, with even traditionally supportive voices turning against the state’s leadership. RJ shares an example of a liberal reporter confronting Governor Newsom at a press conference, demanding answers as to why residents can no longer pay their electric bills. This, RJ notes, is a sign that frustration is reaching a boiling point, even among those who normally provide cover for the governor.

Staggering bills and ruined lives

RJ highlights the devastating impact these rising costs are having on California residents. He tells the story of a Borrego Springs resident who received a $1,873 electric bill for one month, which more than doubled her rent. Another small business owner received an $88,000 electric bill for his store, which far exceeded his monthly rent of $9,500. These examples, RJ argues, highlight the magnitude of the problem and the role of the CPUC in perpetuating it.

The illusion of green energy saving

Governor Newsom often touts California’s transition to renewable energy as a cost-saving measure, but RJ isn’t convinced. He points out that despite these claims, residents’ bills continue to rise. RJ argues that the state’s aggressive push for renewable energy is being used as a smokescreen to justify the CPUC’s price increases, which have been steadily increasing in recent years.

The Pay-for-Play System: A Deeper Look

Digging deeper into the CPUC, RJ alleges a “pay-for-play” scheme in which commission members approve overpriced projects and are later rewarded with cushy jobs in the energy sector. This revolving door between regulators and the companies they oversee creates a conflict of interest that, RJ claims, further enriches the utilities at the expense of the public.

The call for accountability

RJ concludes his video with a call for accountability. He criticizes Governor Newsom for creating the problem he now claims to be trying to fix. RJ insists that the unchecked power of the CPUC must be curbed and that residents must demand more transparency and fairness in the way their energy costs are determined. The situation in California, he warns, is a clear example of big government gone mad, with devastating consequences for ordinary people.

“This is unacceptable”

People shared their thoughts in the comments: “Calling California the Golden State feels so wrong. The decline started subtly enough. But the contrast over a decade is undeniable.”

Another person said: “I’m in California and this is killing me. We just can’t pay our electric bills. I don’t turn on the air conditioner until it’s 105 degrees and my bill is still $400 a month. How can I pay this on my social security? This is unacceptable.”

A commenter added: “Gavin Newsom doesn’t see a problem. That’s the problem.”

A broken system in need of reform

RJ believes that California’s energy industry is a broken system that has been allowed to operate without oversight for too long. He urges viewers to pay attention to what is happening in California, as it can serve as a cautionary tale for other states. With the CPUC’s power going unchecked and residents facing financial ruin, RJ’s message is clear: something has to change, and it has to change now.

Government appointed committees

What do you think? How much power should government-appointed commissions have over essential services like electricity, and what checks and balances should be in place to prevent abuse? Is California’s aggressive push toward renewable energy justified if it results in significantly higher living costs for its residents, or should the state prioritize affordability? Could California’s situation be a harbinger of similar problems in other states as they transition to renewable energy, and what lessons can we learn from this experience?

Discover the full insights by watching the video here on the RJ Talks YouTube channel.