Go Big, Save Big: Approaches to Fund Building Electrification in California

December 16, 2025
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Denise Grab, Brennon Mendez and Craig Segall

California has abundant energy that can be supplied to everyone – if it better distributes its energy infrastructure spending for maximum public benefit. This report identifies one critical opportunity that has been hiding in plain sight.

The state spends billions on running two parallel energy systems, gas and electric, when it ultimately only needs one – an expanded, modern, and efficient power grid. Shifting that spending over time to create a single power delivery system unlocks state-wide savings while lowering costs for renters and homeowners.

Far-sighted policymakers can start aligning gas system planning, and spending, with the long-term need for an expanded electrical grid that will largely replace it over time. Doing so will also help better efficiently use ratepayer dollars: California pours over $10 billion annually in ratepayer money into its gas system, with no clear transition plan. Those are funds that can be gradually shifted to improve and electrify people’s homes, shifting spending from a system we don’t need in the long-term to home improvements and infrastructure that will make for a healthier and more affordable state. Included in this report are several funding strategies for California policymakers to consider. 

Download the report

 

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