In the late 19th and early 20th centuries, the Southern Pacific Railroad wielded almost total control over California’s politics, angering farmers who believed they were being gouged by high freight rates and fueling a powerful populist movement.
In theory, the CPUC is protecting customers of monopolistic utilities. However it also implements policy decrees, such as shifting power generation to renewable sources, and must – in its rate-setting role – ensure that the regulated utilities earn enough profit to maintain access to capital and debt markets.
Thirty-six years ago, California voters subjected insurance premiums to the same kind of regulation by passing Proposition 103. It shifted the state insurance commissioner from an appointee of the governor to an elected position and gave the office new regulatory authority. It’s a crisis, affecting not only current property owners, but those who aspire to homeownership and must have insurance to obtain mortgages.