angering

Democrats bury 2024 autopsy report, angering some in the party

Democrats are starting the new year on a high.

A series of 2025 victories, in red and blue states alike, was marked by a striking improvement over the party’s 2024 showing. That over-performance, to use the political term of art, means candidates — including even some who lost — received a significantly higher percentage of the vote than presidential candidate Kamala Harris managed.

That’s a strong signal ahead of the midterm election, suggesting Democratic partisans are energized, a key ingredient in any successful campaign, and the party is winning support among independents and perhaps even a few disaffected Republicans.

If history is a guide and the uneven economy a portent, Democrats will very likely seize control of the House in November, picking up at least the three seats needed to erase the GOP’s bare majority. The Senate looks to be a longer — though not impossible — reach, given the Republican lean of the states being contested.

In short, Democrats are in much better shape than all the black crepe and existential ideations suggested a year ago.

Yes, the party suffered a soul-crushing defeat in the presidential race. But 2024 was never the disaster some made it out to be. Democrats gained two House seats and held their own in most contests apart from the fight for the Senate, where several Republican states reverted to form and ousted the chamber’s few remaining Democratic holdouts.

Still, Democrats being Democrats, all is not happiness and light in the party of Jefferson, Jackson, Clinton and Obama.

Campaigning to become the party’s chairman, Ken Martin last winter promised to conduct a thorough review of the 2024 election and to make its findings public, as a step toward redressing Democrats’ mistakes and bolstering the party going forward.

”What we need to do right now is really start to get a handle around what happened,” he told reporters before his election.

Now Martin has decided to bury that autopsy report.

“Here’s our North Star: Does this help us win?” he said in a mid-December statement announcing his turnabout and the study’s unceremonious interment. “If the answer is no, it’s a distraction from the core mission.”

There is certainly no shortage of 2024 election analyses for the asking. The sifting of rubble, pointing of fingers and laying of blame began an eye blink after Donald Trump was declared the winner.

There are prescriptions from the moderate and progressive wings of the party — suggesting, naturally, that Democrats absolutely must move their direction to stand any chance of ever winning again. There are diagnoses from a welter of 2028 presidential hopefuls, declared and undeclared, offering themselves as both seer and Democratic savior.

The report Martin commissioned was, however, supposed to be the definitive word from the party, offering both a clear-eyed look back and a clarion way forward.

“We know that we lost ground with Latino voters,” he said in those searching days before he became party chairman. “We know we lost ground with women and younger voters and, of course, working-class voters. We don’t know the how and why yet.”

As part of the investigation, more than 300 Democrats were interviewed in each of the 50 states. But there was good reason to doubt the integrity of the report, even before Martin pulled out his shovel and started digging.

According to the New York Times and others, there was no plan to examine President Biden’s headstrong decision to seek reelection despite his advanced age and no intention to second-guess any of the strategic decisions Harris made in her hurry-up campaign.

Which is like setting out to solve a murder by ignoring the weapon used and skipping past the cause of death.

Curious, indeed.

Still, there was predictable outrage when Martin went back on his promise.

“This is a very bad decision that reeks of the caution and complacency that brought us to this moment,” Dan Pfeiffer, an alumnus of the Obama White House, posted on social media.

“The people who volunteered, donated and voted deserve to know what went wrong,” Jamal Simmons, a former Harris vice presidential advisor, told the Hill newspaper. “The DNC should tell them.”

In 2013, Republicans commissioned a similar after-action assessment following Mitt Romney’s loss to President Obama. It was scathing in its blunt-force commentary.

The 98-page report said a smug, uncaring, ideologically rigid party was turning off voters with stale policies that had changed little in decades and was unhelpfully projecting an image that alienated minorities and young voters.

Among its recommendation, the postmortem called on the party to develop “a more welcoming brand of conservatism” and suggested an extensive set of “inclusion” proposals for minority groups, including Latinos, Asians and African Americans. (DEI, anyone?)

“Unless changes are made,” the report concluded, “it will be increasingly difficult for Republicans to win another presidential election in the near future.”

Trump, of course, won the White House three years later doing precisely none of what the report recommended.

Which suggests the Democratic autopsy, buried or otherwise, is not likely to matter a whole lot when voters go to the polls. (It’s the affordability, stupid.)

That said, Martin should have released the appraisal and not just because of the time and effort invested. There was already Democratic hostility toward the chairman, particularly among donors unhappy with his leadership and performance, and his entombing of the autopsy report won’t help.

Martin gave his word, and breaking it is a needless distraction and blemish on the party.

Besides, a bit of thoughtful self-reflection is never a bad thing. It’s hard to look forward when you’ve got your head stuck in the sand.

Source link

State regulators vote to keep utility profits high, angering customers

Despite complaints from customers about rising electric bills, the California Public Utilities Commission voted 4 to 1 on Thursday to keep profits at Southern California Edison and the state’s other big investor-owned utilities at a level that consumer groups say has long been inflated.

The commission vote will slightly decrease the profit margins of Edison and three other big utilities beginning next year. Edison’s rate will fall to 10.03% from 10.3%.

Customers will see little impact in their bills from the decision. Because the utilities are continuing to spend more on wires and other infrastructure — capital costs that they earn profit on — that portion of customer bills is expected to continue to rise.

The vote angered consumer groups that had detailed in filings and hearings at the commission how the utilities’ return on equity — which sets the profit rate that the companies’ shareholders receive — had long been too high.

Among those testifying on behalf of consumers was Mark Ellis, the former chief economist for Sempra, the parent company of San Diego Gas & Electric and Southern California Gas. Ellis estimated that the companies’ profit margin should be closer to 6%.

He argued in a filing that the California commission had for years authorized the utilities to earn an excessive return on equity, resulting in an “unnecessary and unearned wealth transfer” from customers to the companies.

Cutting the return on equity to a little more than 6% would give Edison, Pacific Gas & Electric, SDG&E and SoCalGas a fair return, Ellis said, while saving their customers $6.1 billion a year.

The four commissioners who voted to keep the return on equity at about 10% — the percentage varies slightly for each company — said they believed they had found a balance between the 11% or higher rate that the four utilities had requested and the affordability concerns of utility customers.

Alice Reynolds, the commission’s president, said before the vote that she believed the decision “accurately reflects the evidence.”

Commissioner Darcie Houck disagreed and voted against the proposal. In her remarks, she detailed how California ratepayers were struggling to pay their bills.

“We have a duty to consider the consumer interest in determining what is a just and reasonable rate,” she said.

Consumer groups criticized the commission’s vote.

“For too long, utility companies have been extracting unreasonable profits from Californians just trying to heat or cool their homes or keep the lights on,” said Jenn Engstrom at CALPIRG. “As long as CPUC allows such lofty rates of return, it incentivizes power companies to overspend, increasing energy bills for everyone.”

California now has the nation’s second-highest electric rates after Hawaii.

Edison’s electric rates have risen by more than 40% in the last three years, according to a November analysis by the commission’s Public Advocates Office. More than 830,000 Edison customers are behind in paying their electric bills, the office said, each owing a balance of $835 on average.

The commission’s vote Thursday was in response to a March request from Edison and the three other big for-profit utilities. The companies pointed to the January wildfires in Los Angeles County, saying they needed to provide their shareholders with more profit to get them to continue to invest in their stock because of the threat of utility-caused fires in California.

In its filing, Edison asked for a return on equity of 11.75%, saying that it faced “elevated business risks,” including “the risk of extreme wildfires.”

The company told the commission that its stock had declined after the Jan. 7 Eaton fire and it needed the higher return on equity to attract investors to provide it with money for “wildfire mitigation and supporting California’s clean energy transition.”

Edison is facing hundreds of lawsuits filed by victims of the fire, which killed 19 people and destroyed thousands of homes in Altadena. The company has said the fire may have been sparked by its 100-year-old transmission line in Eaton Canyon, which it kept in place even though it hadn’t served customers since 1971.

Return on equity is crucial for utilities because it determines how much they and their shareholders earn each year on the electric lines, substations, pipelines and the rest of the system they build to serve customers.

Under the state’s system for setting electric rates, investors provide part of the money needed to build the infrastructure and then earn an annual return on that investment over the assets’ life, which can be 30 or 40 years.

In a January report, state legislative analyst Gabriel Petek detailed how electric rates at Edison and the state’s two other biggest investor-owned electric utilities were more than 60% higher than those charged by public utilities such as the Los Angeles Department of Water and Power. The public utilities don’t have investors or charge customers extra for profit.

Before the vote, dozens of utility customers from across the state wrote to the commission’s five members, who were appointed by Gov. Gavin Newsom, asking them to lower the utilities’ return on equity.

“A profit margin of 10% on infrastructure improvements is far too high and will only continue to increase the cost of living in California,” wrote James Ward, a Rancho Santa Margarita resident. “I just wish I could get a guaranteed profit margin of 10% on my investments.”

Source link