Gavin Newsom’s Grid Impossible (With Eight Charts)

Gov. Gavin Newsom will run for the White House in 2028. But under his leadership, California’s energy prices have skyrocketed.

California Governor Gavin Newsom met with Chinese leader Xi Jinping in Beijing in 2023. According to a press release issued by Newsom’s office, the governor “made clear with Chinese leaders that we must take urgent action to transition away from fossil fuels.” Credit: California governor’s office.

Make no mistake, California Governor Gavin Newsom is running for the White House in 2028. In February, he launched a podcast with the uncatchy name, “This is Gavin Newsom.” His first guest was conservative activist and commentator Charlie Kirk, the head of Turning Point USA. Newsom claims he wants to have “honest conversations” with people on both sides of the political aisle.

Whatever you think of Newsom, you have to admire his cheekiness. Recall that last December, the too-handsome-by-half politico convened the California legislature for a special session designed to “protect California values” during the second Trump term.

How are those California values working out?

People are leaving the Golden State in droves. According to U-Haul, California has come in last place for one-way traffic for five years in a row with more people moving out than moving in. Poverty in Newsom’s state — which already has the highest poverty rate in the country — is increasing. Here’s the key finding from a September report by the California Budget & Policy Center:

California’s poverty rate increased to 18.9% in 2023, up from 16.4% in 2022 and 11.0% in 2021, according to new Census data. The state’s poverty rate was particularly high among Black and Latinx Californians and California continued to have the highest poverty rate of the 50 states. California’s high poverty rate means that 7.3 million state residents lacked the resources to meet basic needs last year — more than the populations of California’s four largest cities: Los Angeles, San Diego, San Jose, and San Francisco.

Thanks to Newsom and California’s vast climate-obsessed bureaucracy, the state’s affordability crisis will get worse between now and 2028. California’s motor fuel prices are among the highest in the country. Gasoline in California now costs about $4.84 per gallon, 53% more than the US average. Those prices will soon be much higher. Last October, Phillips 66 announced it would shutter its 139,000 barrel-per-day refinery in Los Angeles by the end of 2025. The company announced the move shortly after Newsom signed a law aimed at preventing gasoline price increases.

On Wednesday, San Antonio-based Valero, which owns two refineries that produce 14% of the state’s gasoline, said it will permanently shutter its Benicia refinery by April 2026. That refinery handles 145,000 barrels of crude per day. In addition, the company may close its 91,000 barrel-per-day refinery near Los Angeles. This is not surprising. Last fall, Valero’s CEO, Lane Riggs, said, “California is increasing its regulatory pressure on the industry, so we’re really considering everything.” Last August, supermajor oil company Chevron (formerly Standard Oil of California) decamped from San Ramon for Houston due to California’s policies that, as CEO Mike Wirth said, “raise costs, that hurt consumers, [and] that discourage investment.”

Whether it is gasoline or electricity, Californians — and in particular, low-income Californians — are getting mauled by Newsom’s energy policies. Under state law, California must get 60% of its electricity from renewable sources by 2030, and its grid must be 100% carbon-free by 2045. Last month, Pacific Gas and Electric, the state’s biggest utility, asked the California Public Utility Commission for another rate increase. Rate increases are business as usual at PG&E. Last year alone, the CPUC approved six rate increases for the giant utility.

These price hikes are only an aperitif for California consumers who now pay the second-highest residential electricity prices in the US. Only Hawaiians pay more.

More price hikes are coming. A recent CPUC report expects the state’s electricity rates to soar over the next few years, and those increases will inflict yet more regressive energy policies on California’s poorest residents.

Here’s a deep dive into Gavin Newsom’s grid impossible, with eight charts.