This weekly newsletter highlights the latest from the California Energy Journal along with links to articles and analysis on key developments in California energy policy.
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California News and Analysis
Utilities and electricity affordability
PG&E reaffirms earnings guidance as investment reductions proceed. PG&E maintained its 2026 and 2027 earnings outlook while confirming implementation of its previously announced $2 billion reduction in planned 2027 capital spending. The company said its strategic review was advancing and renewed its call for a durable wildfire liability framework. PG&E, October 22, 2026.
PG&E renews push for wildfire liability reform to reduce financing costs. CEO Patti Poppe said California’s wildfire framework continues to expose PG&E to financial risks that undermine its credit rating and increase customer costs. The company is seeking additional liquidity protections and limits on potential cost disallowances while reducing planned 2027 capital spending by $2 billion. Utility Dive, October 23, 2026.
PG&E considers separating its natural gas business. CEO Patti Poppe said PG&E could pursue a regulatory-approved sale, spinoff, or other separation of its gas business if wildfire liability reform does not resolve financing pressures. She said the company’s approximately four million gas customers face higher borrowing costs because the business shares exposure to the electric utility’s wildfire risk. No transaction has been announced. Bloomberg Law, October 22, 2026.
CPUC proposes expanded use of flexible electricity connections. The CPUC issued a proposed decision directing PG&E, Southern California Edison, and San Diego Gas & Electric to expand connections that limit electricity use or exports to accommodate grid constraints. The proposal seeks to reduce connection delays and infrastructure costs and addresses technical standards, customer information, and tracking of affordability benefits. It requires commission approval. CPUC, October 20, 2026.
Los Angeles announces pause on residential utility shutoffs through year-end. Mayor Karen Bass asked LADWP to suspend residential water and electricity shutoffs for nonpayment through December 31 following prolonged heat and high utility bills. LADWP said implementation would begin immediately, with formal board approval expected October 27. Customers needing assistance would receive additional time through payment arrangements without interest or late fees. LAist, October 20, 2026.
Data centers and electricity demand
California communities expand local restrictions on data centers. At least 26 resolutions, moratoriums, or bans had been adopted or proposed across California since June, despite passage of seven statewide data center laws. Local officials are seeking stronger controls over electricity demand, water consumption, utility costs, and land use, adding uncertainty for developers planning new facilities. CalMatters, October 22, 2026.
San Diego mayor directs staff to advance data center moratorium. Mayor Todd Gloria signed an executive order directing staff to bring a temporary moratorium before the City Council while San Diego develops permanent regulations. The order calls for review of impacts on water, electricity costs, housing, infrastructure, and neighborhoods, with preliminary recommendations due within 180 days. The proposed moratorium required separate council approval. City of San Diego, October 22, 2026.
AI electricity demand accelerates investment in microgrids. Data center developers’ need for rapid connections and reliable power is driving investment in on-site generation, storage, and microgrid technology. Reuters reported that rapidly fluctuating AI loads also create equipment and grid stability challenges, encouraging new power management systems and research. The trend has implications for utility planning and oversight of generation outside the traditional grid. Reuters, October 26, 2026.
Grid reliability, solar, and storage
CEC opens $46.1 million solicitation for distributed reliability resources. The CEC released a grant solicitation for resources that increase electricity supply or reduce or shift demand during extreme events. The Distributed Electricity Backup Assets program will provide up to $46.144 million, less amounts allocated for specified water utility cost-sharing projects. A pre-application workshop is scheduled for November 5. CEC, October 23, 2026.
CPUC reviews proposed clean energy research investments. The CPUC’s EPIC 5 workshop process examined research priorities proposed by the CEC and California’s three large electric utilities. Topics included transportation electrification, distributed energy integration, building decarbonization, climate adaptation, and the role of gas in achieving net-zero emissions. The plans will guide future ratepayer-funded research. CPUC, October 20–23, 2026.
Industry analysis links solar and storage growth to lower wholesale electricity costs. A Solar Energy Industries Association analysis estimated that California saved $2.5 billion during June–August 2026 compared with the same period in 2021. California’s inflation-adjusted average wholesale electricity price was approximately 40% lower despite increased demand. The findings concern wholesale costs, which do not directly translate into equivalent reductions in retail utility bills. Renewable Energy World, October 26, 2026.
Natural gas
CEC finds low risk of winter natural gas curtailments. The CEC’s winter reliability assessment found a low risk of service curtailments for residential, commercial, industrial, and power generation customers served by PG&E and the Southern California gas utilities. The conclusion assumes estimated supplies remain available and demand follows the commission’s winter 2026–2027 forecast. CEC, October 22, 2026.
Petroleum and transportation fuels
Phillips 66’s changing strategy exposes divisions within California’s oil industry. Politico examined how Phillips 66’s proposed pipeline to import refined fuels, departure from the Western States Petroleum Association, and support for renewable jet fuel distinguish its interests from those of other refiners. The pipeline could diversify California’s fuel supply and increase competition as in-state refining capacity contracts. Politico, October 22, 2026.
CEC outlines limits of state tools for addressing fuel supply disruptions. Updated CEC guidance explained that refinery inventory requirements and maintenance resupply plans primarily address anticipated local outages and offer limited protection against a major global disruption. The commission also identified storage, pipeline, and port capacity as potential investments to strengthen California’s fuel supply resilience. CEC, October 23, 2026.
Coastal protections and offshore oil
Federal review threatens California coastal oversight unless state accepts corrective demands. Draft findings condition continued federal support on changes to California’s coastal management program. Los Angeles Times, October 24, 2026.
Lawmakers and environmental groups support California’s challenge to Sable restart order. Reporting describes friend-of-the-court briefs supporting California’s Ninth Circuit appeal over the Energy Department’s use of the Defense Production Act to direct restoration of Sable Offshore’s Santa Ynez Unit and pipeline system. The dispute tests the scope of federal defense authority and its interaction with California’s environmental and permitting powers. San Francisco Inquirer, October 25, 2026.
Environmental review and permitting
Oil and technology companies back measure to narrow California environmental review. Capital & Main reported that technology companies and California Resources Corp. are financing Proposition 45, which would streamline environmental review for a range of projects. Supporters argue it would accelerate construction and improve affordability; opponents say it could ease approval of industrial facilities, carbon dioxide pipelines, and potentially data centers. Capital & Main, October 21, 2026.
Bonta urges changes to federal permitting legislation to preserve state authority. Attorney General Rob Bonta co-led a multistate letter raising concerns about the proposed Bipartisan American Affordability and Jobs Act. The attorneys general support faster development of clean energy infrastructure but argue that provisions would weaken state authority under the Clean Water Act and National Historic Preservation Act and limit environmental and public health protections. California Department of Justice, October 22, 2026.
Lawsuit challenges environmental review of Starlight Solar project. KPBS reported that a community group is challenging San Diego County’s approval of the 588-acre solar and battery project near Boulevard. The suit alleges inadequate analysis of battery fires, evacuation routes, and water availability. A developer representative disputed the allegations. The lawsuit was filed October 15, before this reporting period. KPBS, October 22, 2026.
Carbon capture and climate policy
CARB releases proposed carbon capture and storage regulatory framework. CARB posted proposed regulations implementing SB 905, including financial responsibility, monitoring, reporting, emergency response, and public transparency requirements for carbon management projects. The package also proposes changes to cap-and-invest, greenhouse gas reporting, and the Low Carbon Fuel Standard. Public comment is expected to run from October 30 through December 14, with board consideration scheduled for January 28, 2027. CARB, October 20, 2026.
Riverside County adopts updated climate action plan. County supervisors adopted a 2026 Climate Action Plan for unincorporated areas, incorporating updated emissions data and reduction measures aligned with CARB’s 2022 Scoping Plan. The plan provides a framework for evaluating greenhouse gas emissions from development, with measures addressing transportation, electricity, natural gas, and other sources. Riverside County, October 20, 2026.
Climate research and adaptation
California releases updated report on observed climate impacts. OEHHA released the fifth edition of Indicators of Climate Change in California, documenting rising temperatures, increased heat-related deaths, and changes to water systems and ecosystems. The report also incorporates observations from eight California tribes. Its findings provide evidence for climate adaptation and infrastructure planning. OEHHA, October 20, 2026.
Climate assessment examines economic costs across California. UC San Diego highlighted research prepared for California’s Fifth Climate Change Assessment that identifies health and labor as the largest categories of monetized climate damages. The report examines how impacts spread across sectors through higher household costs, infrastructure disruptions, and pressure on public finances. Inland regions and vulnerable populations face disproportionate burdens. UC San Diego, October 20, 2026.
Opinion and analysis
Consumer groups call for scrutiny of PG&E investment cuts. Consumer Watchdog and Every Fire Survivor’s Network urged lawmakers and the CPUC to examine potential customer connection delays associated with PG&E’s investment reductions. The groups called for enforcement of the utility’s duty to serve and scrutiny of transfers to its holding company. Consumer Watchdog, October 26, 2026.
KQED examines rising electricity costs and policy responses. KQED’s Forum featured Energy Innovation’s Mike O’Boyle and UC Berkeley economist Meredith Fowlie in a discussion of California energy affordability. The program examined the drivers of rising costs and possible policy responses as electricity prices draw attention in the governor’s race. KQED, October 23, 2026.
SunZia analysis examines barriers to major transmission projects. Vox reviewed the permitting, financing, routing, and environmental disputes behind SunZia, which began delivering New Mexico wind power to Southwest markets, including California, earlier in 2026. The analysis describes how financing and negotiated project changes advanced construction while tribal and environmental disputes continued. Vox, October 22, 2026.
Beyond California
Offshore wind
Administration seeks reconsideration of New England Wind approval; Whitehouse warns of permitting fallout. The Trump administration asked a federal court to return the proposed Massachusetts offshore wind project’s construction and operations approval to Interior for reconsideration. Sen. Sheldon Whitehouse warned that reopening the approval could undermine a bipartisan permitting agreement by calling into question whether developers could rely on federal authorizations. Politico, October 21, 2026; Associated Press, October 22, 2026.
Trump directs negotiations over wind turbine imports following national security review. President Trump issued a proclamation directing Commerce and the U.S. trade representative to negotiate agreements addressing imports of wind turbines and their components under Section 232. The proclamation requires a progress update within 180 days and leaves open additional trade restrictions. It does not itself impose a new wind-specific tariff. White House, October 22, 2026.
Oil and gas
Trump invokes Defense Production Act to support domestic oil production and refining. President Donald Trump issued a determination under Section 303 of the Defense Production Act authorizing federal financial support for domestic petroleum production, refining, pipelines, storage, and marine terminals. The memorandum directs the Secretary of War to implement the determination but does not identify specific projects or funding commitments. Reuters; White House, October 22, 2026.
DOE announces $150 million initiative to expand domestic refining capacity. The Department of Energy announced plans to use Defense Production Act funding to support petroleum production, refining, storage, and logistics. Project selections remain underway. The announcement did not identify a California recipient or confirm the restart of a closed California refinery. DOE, October 22, 2026.
DOE authorizes emergency oil exchange for Louisiana refinery. DOE authorized an exchange of up to 400,000 barrels from the Strategic Petroleum Reserve to address disrupted crude deliveries to Phillips 66’s Lake Charles refinery. The exchange is intended to support continued transportation fuel production for Louisiana and surrounding markets. Reuters, October 23, 2026.