California lawmakers and legal experts join consumer group to oppose Governor Newsom’s proposed utility bailout, framing it as a ratepayer giveaway
Executive summary: On August 13, 2026, Representative Ro Khanna, former California Insurance Commissioner Dave Jones, and UC Berkeley Law Dean Erwin Chemerinsky joined Consumer Watchdog in opposing a proposed utility bailout by Governor Gavin Newsom, announcing the campaign with new television ads. The bailout could shift billions in utility costs to California ratepayers and set a precedent for state intervention in utility financial management without legislative oversight.
Who is involved: Ro Khanna (U.S. Representative), Dave Jones (former CA Insurance Commissioner), Erwin Chemerinsky (UC Berkeley Law Dean), Consumer Watchdog, and Governor Gavin Newsom’s administration.
Likely next: Legislative hearings in Sacramento are expected in September 2026, with potential ballot initiatives if the bailout proceeds despite opposition.
Representative Ro Khanna, former Insurance Commissioner Dave Jones, and UC Berkeley law professor Erwin Chemerinsky have publicly opposed an 11th-hour utility bailout backed by Governor Gavin Newsom, arguing it would shift costs to consumers without sufficient oversight. The Consumer Watchdog group launched TV ads to amplify the critique, positioning the bailout as a politically driven rescue of utilities at public expense. The opposition highlights concerns over accountability in utility regulation and the potential for precedent-setting state intervention in private sector financial distress.
Timeline
- — Ro Khanna, Erwin Chemerinsky and Dave Jones Join Campaign To Stop CA Utility Bailout; Consumer Watchdog Unveils TV Ads (PR Newswire)
Analysis — what this means
Likely next events
- California Assembly Utilities Committee hearing scheduled for September 10, 2026, to review the bailout proposal.
- Consumer Watchdog to begin statewide TV ad run in major California media markets starting August 20, 2026.
- Governor Newsom’s office expected to release revised bailout terms by August 25, 2026, in response to criticism.
Sectors affected
- California electric utilities
- Natural gas distributors
- Water and wastewater providers
Regulatory implications
- California Public Utilities Commission (CPUC) may face increased scrutiny over its role in approving utility cost recovery.
- Potential for new legislation requiring supermajority legislative approval for utility bailouts exceeding $1 billion.
- Enhanced disclosure requirements for utility financial assistance under consideration by state lawmakers.
Sources
- Ro Khanna, Erwin Chemerinsky and Dave Jones Join Campaign To Stop CA Utility Bailout; Consumer Watchdog Unveils TV Ads — PR Newswire