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The California Public Utilities Commission on Thursday passed a proposal that will reduce compensation provided to households for the surplus electricity their rooftop solar panels contribute to the electric grid.
Today’s unanimous vote by the five-member commission was monitored across the country, since California is widely viewed as a leader in the renewable energy buildout.
More than 1.5 million homes, businesses and other utility customers in California have rooftop solar panels.

Save A Lot Solar contractors install LG Electronics solar panels on a home in Hayward, California, U.S., on Tuesday, Feb. 8, 2022.
David Paul Morris | Bloomberg | Getty Images

The California Public Utilities Commission on Thursday passed a proposal that will reduce compensation provided to households for the surplus electricity their rooftop solar panels contribute to the electric grid.
Utilities and consumer groups have argued the incentive payments have unfairly favored wealthier consumers and harmed poor and low-income households. But solar companies and renewable advocates have said that lowering the compensation would slow solar installations and hinder the state’s goals to address climate change.

The proposal, which California utility regulators unveiled last month, will change a net metering policy by paying solar owners for extra power at a lower rate, which is determined by the cost the utility would need to spend to purchase clean power from an alternative source. The solar industry has said the plan would amount to a 75% cut in average payment rates to customers.
Today’s unanimous vote by the five-member commission was monitored across the country, since California is widely viewed as a leader in the renewable energy buildout. The impact of today’s decision will likely extend beyond the state and have implications for the solar industry nationwide, particularly companies in the residential solar space like Sunrun, SunPower, Sunnova, and Tesla.
More than 1.5 million homes, businesses and other utility customers in California have rooftop solar panels. The utilities commission estimates that these installations can collectively produce 12 gigawatts of electricity.

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The proposal would have no impact on existing rooftop solar customers and would maintain their current compensation rates, and would also encourage consumers to install batteries with their solar panels, the commission said.
Affordable Clean Energy For All, a nonprofit funded by California’s utilities, has argued that the rooftop solar program is outdated and that utilities have to pass along the costs of subsidies, creating higher bills for millions of customers who don’t install solar, including those least able to pay for electricity costs.

However, solar companies have argued that the existing net metering system is necessary to spur people to choose rooftop solar.
The changes to the state’s solar incentive program could cut California’s solar market in half by 2024, according to a report released earlier this year from energy research firm Wood Mackenzie.
“This misguided decision, which undervalues solar’s numerous benefits for all Californians, will dim the lights on the growth of solar in the Golden State,” said Laura Deehan, state director for Environment California, following the vote.
Roger Lin, an attorney at the Center for Biological Diversity’s energy justice program, said in a statement that the commission “has taken a step backward by widening the divide between those who can afford solar and those who can’t.”
“It’s an affront to low-income communities who are hit by the climate crisis first and worst, and we’ll do everything we can to convince the commission to fix the deep flaws in its proposal,” Lin said.
California, which is grappling with wildfires and drought fueled by climate change, has a goal to transition to 100% renewable energy by 2045.

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CNBC’s Jim Cramer on Thursday said that investors shouldn’t expect the Federal Reserve to go easy on the economy because the market is suffering.
“Investors have to learn that the Fed is not your friend, it’s not your pal — if anything, it’s your enemy,” he said.

CNBC’s Jim Cramer on Thursday said that investors shouldn’t expect the Federal Reserve to go easy on the economy because the market is suffering.
“Investors have to learn that the Fed is not your friend, it’s not your pal — if anything, it’s your enemy, at least until [Chair] Jay Powell finally beats inflation,” he said.

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Stocks fell on Thursday after fresh data showed November retail sales fell more than expected.
Also dragging the market down were hawkish comments from the Federal Reserve on Wednesday. Powell signaled at the central bank’s post-meeting news conference that rate hikes will continue through next year.
“Powell could not have been more clear that … he’s not just trying to stabilize prices at these levels, he wants to roll back the price increases from the last couple of years,” Cramer said.
He reminded investors that the central bank’s main mission is to tamp down inflation and that it plans to increase rates until prices are down significantly.
Adding to the unlikelihood of the Fed pivoting anytime soon is its lack of sympathy for investors’ struggles, according to Cramer.

“While [Powell’s] not explicitly trying to send stocks lower, he’s certainly not going to shed any tears over it. If anything, lower stock prices are a win for the Fed,” he said.

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After 35 years on Broadway, “The Phantom of the Opera” will close its doors at the Majestic Theatre on April 16.
During its run, the show created an estimated 6,500 jobs — including those for 400 actors. That’s more jobs than any show in U.S. theatrical history.
Today, 20 employees are still working at “Phantom” after more than three decades.

After more than three decades, “The Phantom of the Opera” is getting ready to hang up its mask on Broadway.
The Andrew Lloyd Webber musical has played to over 145 million people worldwide in 41 countries, 183 cities, and in 17 languages — and it has received 70 major theater awards including seven Tony Awards and four Olivier Awards.

The show also lays claim to the title of the biggest job producer in U.S. theatrical history. During its run, “Phantom” created an estimated 6,500 jobs, including those of 400 actors, in New York City, while grossing $1.3 billion in ticket sales. The show’s last performance at the Majestic Theater is slated for April 16.
Casting director Tara Rubin has helped hand-pick the actors for the beloved musical for more than three decades — working just down the street from the Majestic.

“Phantom of the Opera” Casting Director Tara Rubin

“I never really dreamed that I would have a job like this,” Rubin told CNBC. “In 1987, when we first started casting, I typed all the casting sheets that we used in auditions on a Selectric typewriter.”
Back then, she also made phone calls to the agents — rather than emailing them, and did it all on a rotary phone.
“[Phantom’s] maintained a presence on the street, and then the city for so long. It’s inspired other shows, it’s inspired people to become actors,” Rubin said.

Rubin is just one of 20 “lifers” who have worked on the show for more than three decades.

“Phantom of the Opera” Dresser Ron Blakley

Dresser Ron Blakley is another lifer who was working backstage in the wardrobe department when the curtain rose at the Majestic for the very first time.
Blakley’s job is to inspect the show’s costumes to make sure they’re in tip-top shape. He gave CNBC a tour of his backstage area, which is loaded with intricately beaded costumes and ball gowns.
After each performance, Blakley checks the costumes for any signs of wear and tear. “I get a needle and some thread and I stitch it and I put the backing back in place.”
But what he’ll miss most?
“The people,” said Blakley.

“Phantom of the Opera” Head Electrician Alan Lampel

The one-ton chandelier is the centerpiece of the show. It flies over the audience each night. For three decades, head electrician Alan Lampel has kept its lights on.
It’s named “Ruthie Two,” as a tribute to assistant director Ruth Mitchell, he said.
Lampel said he’s seen hundreds of actors come and go at “Phantom,” but the chandelier hasn’t left the stage since opening night.
“I watch it from my perch out there in the back of the orchestra. And it’s quite powerful,” he said.
Below the chandelier, another lifer is in the orchestra pit, violinist Jan Mullen.

“Phantom of the Opera” Violinist Jan Mullen

She’s one of 27 musicians who make up one of Broadway’s largest orchestras.
“In music like this, which is complex, there’s always something different you can see or what you can do with it,” said Mullen, who never expected to land the job when she auditioned after graduating from Juilliard.
“This is as good as it gets,” said Mullen. “I’m so glad so many people have been able to enjoy it.”

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Melissa Bradley of 1863 Ventures has supported over 3,000 minority businesses through accelerator programs, 98% of which survived the pandemic.
She has some advice for business owners on how to stay out of bad debt, make the right investments, and keep sales flowing through a recession.

Melissa Bradley has helped guide thousands of business founders through challenges.
The founder of 1863 Ventures, and a serial entrepreneur and investor, says if a recession becomes economic reality and customers cut back more due to inflation, it won’t be anything new for minority entrepreneurs.

“They are concerned because of the impact it will have on customers,” Bradley told CNBC Senior Personal Finance Correspondent Sharon Epperson at the virtual Small Business Playbook event on Dec.14. “The reality is Black and brown businesses are used to being locked out of access to capital, and used to having to spend more for things, so they plan.”
With a 98% success rate during Covid among over 3,000 Black and brown entrepreneurs with whom her organization has partnered, Bradley says consistent planning and “always expecting the worst” is in a minority business owner’s DNA. “Nothing is a guarantee,” she said.
The difference now for all business owners is the need to be mindful of what customers can afford going forward. The latest retail sales report showed a much bigger drop than expected, adding to fears that the economy and consumer are rapidly slowing.
“The first thing is plan. Your financial statements tell you a lot,” Bradley said, adding that they tell you about a lot more than just the assets and liabilities. “Be laser-focused on what financials are telling you about customers,” she said.
It’s more important than ever, she says, to understand drivers of growth, and dig into the details from all the business data at your disposal, showing what customers like and don’t like, where they search and shop, and when and how often they come back.

“Keeping customers engaged and happy is the greatest gift you can give yourself this holiday season to make sure revenue keeps coming in,” Bradley said.
She has some advice for business owners on how to stay out of bad debt, make the right investments, and keep sales flowing even through a recession.
Get a handle on costs and prices
Cash is king, “or queen,” Bradley said, depending on the entrepreneur, and it’s the first thing to get a handle on in a tough economy — specifically by looking at costs and prices.
She provided the example of a spirits business that experienced a big increase in the cost of glass that resulted in the need to reevaluate pricing. All businesses need to be able to at least cover costs without dipping into the owner’s pocket to pay, and that’s become more challenging amid inflation.
Don’t dip into personal savings
Bradley stressed that a business owner should not dip into your person savings, or “borrow against your house,” to keep a business going.
“You need to make sure your business can stand on its own,” she said.
Entrepreneurs are sold on a bootstrapping mentality, “a fake it until you make it” mantra, but the reality is it’s a big mistake to bring your personal life down as your business life goes on a rollercoaster.
“Stay really focused on the numbers and know some months are going to be high and some low,” she said.
Rethink contractors and extra cash
If business owners stay on top of their financials and avoid the bad debt decisions, they may be fortunate enough to end up with extra cash. Where that money is invested can make a big difference — either good or bad.
Bradley cautioned that the “world of contractors and 1099s” has been a great thing for the small business community, but during times of uncertainty there is greater risk associated with variable costs that many contractors operate under. Variable costs are harder to predict as part of ongoing cash flow.
She advises moving more costs to the fixed cost bucket, “so you can become laser focused on it, so you don’t have a deficit at the end,” she said.
Scrutinize the use of consultants
New business formation in recent years has been at record levels and when many businesses are first starting out they rely more heavily on consultants. Bradley says now is the time to reevaluate a reliance on multiple consultants. “Every quarter, think about what key operations and processes are needed to keep the business going and how many people are touching them,” she said.
If there are too many people involved, whether internal or external, that’s a risk in and of itself and it is not the sign of an efficient business. All tasks should be centralized and aggregated in the right way, and that might mean having one person on the job rather than three consultants.
Bradley provided marketing as one example, with the tasks of script writing, social media and photography all handled by different people. The smart money move may be to hire one person for all three tasks, but she said owners are often too busy running a company to pay attention to how their money is being invested down to that level.
But being busy is no excuse.
“You can’t make it if you are not paying attention to the steps along the way, how are you spending money so it has a positive ROI over the future,” she said.
Invest a little at a time in yourself
As an investor in many businesses, Bradley sets a cap on what she will put into any entity. “You can’t fund a business forever,” she said. Setting an amount of investment and a duration of investment is part of being disciplined about the funding process.
It is critical to keep personal and business accounts separate, but just as important to know you will at some point need more money for your business and you should be paying yourself as you go — not necessarily a lot, but with consistency.
“Really stay on top of being able to pay yourself a little, and pay off those expenses,” Bradley said.
She said one of the biggest challenges business owners face is waiting too long to pay themselves. “Even if you only have $100, pay yourself $50. This is about building the muscles to sustain and grow the business over time,” she said. “Take $50 and put $25 to a bill and $25 to yourself. It is not about waiting for the big jackpot at the end of the rainbow. … It’s about making steady progress in paying down any personal debt and continuing to invest in the business,” she said.
Make changes in smaller increments
Staying focused on the numbers is likely to result in the need to make changes based on greater understanding of what is and isn’t working. Plenty of businesses have been started during recessions, Bradley said, so change is not a reason to panic.
A business owner shouldn’t be making changes all the time — that is its own form of panic — but changes should be considered in small increments. Each month, each quarter, business owners should be considering changes. And they should not be planning in terms of “next year,” Bradley said.
“What do you want to accomplish between now and the end of the year? In January? … Making changes is not a sign of failure, it’s a sign of keeping pace with customers and what you’re learning from the market,” she said. More

Investors are pulling out of the flipping market, as profits drop very quickly.
In the third quarter, gross flipping profit fell 18.4% from the previous quarter.
Roughly 7.5% of third quarter home sales were flips, still historically high, but down from 8.2% in the second quarter.

As the housing market cools quickly, house flippers are finding it harder to make fast profits.
In the third quarter, gross flipping profit, which is the difference between the median purchase price paid by investors and the median resale price, dropped to $62,000, according to ATTOM, a real estate data provider. That’s down 18.4% from the second quarter and down 11.4% year-over-year. It represents the smallest profit since the end of 2019 and the fastest quarterly drop since 2009.

With that drop in gross profits, the return on investment fell to 25% from 30% in the previous quarter. Not bad, but not as good. Still ATTOM notes it’s not the size of the profits, but how quickly they’re falling. 
With profits shrinking and higher mortgage rates hurting affordability for potential buyers, the share of home sales that were flips fell as well. Roughly 7.5% were flips in the third quarter, still historically high, but down from 8.2% in the second quarter. Flips, defined as homes bought and sold in a 12-month period, made up a 5.9% share of all home sales in the third quarter of 2021.
Home prices are weakening quickly, while renovation costs remain high.
“It’s apparent that fix-and-flip investors aren’t immune to the shifting conditions in the housing market,” said Rick Sharga, executive vice president of market intelligence at ATTOM, in a release. “With demand from buyers weakening, prices trending down over the past few months, and financing rates significantly higher than they were at the beginning of the year, flippers face a much more difficult environment today, and probably will in 2023 as well.”
Home prices are still higher today than they were a year ago, but each month the gains are shrinking dramatically. Mortgage rates have come off their recent highs, but they are still more than twice what they were at the start of this year. The combination has caused home sales overall to drop for nine straight months.

While mortgage rates have dropped slightly over the past two months, that may not matter too much to flippers since about 64% of them use all cash. That is unchanged from previous quarters.
Another factor weighing on investors is the cost to flip. Prices for labor and materials remain high, and supply-chain delays are still factoring into renovation costs. The average time it took to flip a home in the third quarter did drop slightly to 163 days, after rising for three consecutive quarters. That is still, however, longer than the 149 days it took to flip a home in the third quarter of last year.
Markets that showed the highest flip rates were Phoenix; Spartanburg, South Carolina; Atlanta and Gainesville in Georgia; and Winston-Salem, North Carolina. The markets offering the best returns were Buffalo, New York; Pittsburgh and Scranton in Pennsylvania; and Salisbury, Maryland. 

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Massachusetts Gov. Charlie Baker will take the helm of the NCAA in March, a couple months after his term ends in January.
Baker is the first NCAA president with no professional credentials in higher education or college sports.
Baker succeeds Mark Emmert, who has held the position since 2010, overseeing dramatic changes in college sports.

Governor Charlie Baker speaks during the Massachusetts Law Enforcement Memorial at Ashburton Memorial Park on October 28, 2022 in Boston, Massachusetts. (Photo by Matt Stone/MediaNews Group/Boston Herald via Getty Images)
Matt Stone | MediaNews Group | Boston Herald via Getty Images

The NCAA said Thursday it has chosen Massachusetts Gov. Charlie Baker as its next president.
Baker will start in the position in March, two months after his second term as governor ends on Jan. 5. He will succeed Mark Emmert, who has held the role since 2010.

Baker’s background in government made him a top choice for the NCAA, which has confronted a variety of national legal and regulatory controversies in recent years. The organization was embroiled in a Supreme Court case last year over student-athlete compensation.
“Throughout the search process, Governor Baker’s history of successfully forging bipartisan solutions to complex problems stood out to the search committee as uniquely suited to the NCAA’s present needs,” the NCAA wrote in a Thursday press release.
Emmert will continue consulting for the NCAA until June 2023.
Baker, a two-term Republican in a predominantly Democratic state, is the first NCAA president without a professional background at higher education institutions or college sports. He did, however, play varsity basketball at Harvard.
“The biggest quality he brings is his political acumen,” said Tom McMillen, president of the LEAD1 Association, which represents 131 athletic directors in the Football Bowl Subdivision. “He understands how to build bridges not only to our schools but to our policymakers.”
Before serving two terms as governor in Massachusetts, Baker held executive positions at a health care company and was CEO of nonprofit Harvard Pilgrim Health Care.

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State of Freight

Walmart CEO Doug McMillon says suppliers are telling the world’s largest retailer that prices will remain elevated in the near term, especially for dry goods and consumables.
Walmart is adjusting inventory based on inflation and a slowdown in consumer spending.
Walmart is investing in supply chain technology to increase the speed of e-commerce and delivery.

Retail sales slumped on Thursday even though the latest data on consumer prices earlier this week showed a cooling. Walmart CEO Doug McMillon says the retail giant is managing for inflation and a slowdown in consumer demand that extends into 2023, and the economic conditions are changing what shoppers will see on the shelves of the nation’s largest retailer.
Grocery sales, responsible for 56% of Walmart’s revenue, is a key inflation read for the McMillon and company.

“We’re managing this item by item, category by category,” McMillon said in an exclusive interview with CNBC at the Hope Global Forum in Atlanta earlier this week. “We have a plan and adjusted our inventory to be ready for this next year.”
McMillon’s comments came after November CPI report that showed consumer prices rose 7.1% year over year, which was below estimates, but before the retail sales decline posted on Thursday.
Food prices remained elevated, rising 10.5% year over year. Grocery sales require more regular shipments than general merchandise, and trucking prices are also elevated, approximately 35% higher year-to-date, according to data from Evercore ISI.
“What we’re seeing is that if you take the fresh food categories, commodities, things like proteins, things are starting to move. Chicken right now is more expensive, but beef is down. Fruit and vegetable is in pretty good shape,” McMillon said. “But dry groceries, consumables is where we’re seeing the most stubborn and persistent inflation, mid double-digit inflation. And we’re not hearing from our suppliers looking forward that’s going to come down soon,” he said.
General merchandise categories have started to adjust because demand has softened, according to McMillon, but he added, “We think there’s going to be persistent inflation with us for a while, in drug, grocery and consumables.”

McMillon said Walmart is continuing to look for new technology to maintain inventory and increase the speed of its e-commerce business. That includes a commitment to purchase thousands of delivery EVs from General Motors’ subsidiary BrightDrop and Canoo; the opening of next-gen fulfillment centers that use automation and artificial intelligence; and the acquisition of robotics startup Alert Innovation.
“There’s so much it’s possible today with technology, whether it’s the way we use data, the way we put smarter algorithms to work or the way we deploy automation through our supply chain. There are a lot of changes coming in distribution centers, fulfillment centers, last mile with EVs (electric vehicles) and delivery,” McMillon said.
The Hope Global Forum is the annual event for Operation Hope, one of the nation’s largest non-profits focused on financial literacy. Walmart is also a founding member of Financial Literacy For All, an initiative lead by Operation Hope that also includes Disney, Bank of America, Walgreens,  Delta Air Lines, Ares Management and other companies. More

Live TV streaming service FuboTV said it was the target of a criminal cyberattack.
Customers had problems accessing their accounts during the World Cup semifinal match between France and Morocco. Service was restored Wednesday evening.
FuboTV said it reported the incident to law enforcement and has begun an investigation into the incident.

Rafael Henrique | Lightrocket | Getty Images

FuboTV, a live-TV bundle streaming service, said it was the target of a criminal cyberattack Wednesday, affecting customers trying to access their subscriptions during the World Cup semifinal match between France and Morocco.
Once the attack was detected, FuboTV said, it took immediate steps to contain the incident and was able to restore service by Wednesday evening.

The World Cup semifinal match, in which France defeated Morocco 2-0, began at 2 p.m. ET on Wednesday, and many of FuboTV’s customers took to social media when they weren’t able to access the match. The company noted the incident had nothing to do with any bandwidth constraints on its part.

Football fans watch on a giant screen the Qatar 2022 World Cup semi-final football match between France and Morocco in Saint-Nazaire, western France on December 14, 2022.
Sebastien Salom-gomis | Afp | Getty Images

FuboTV said the attack was reported to law enforcement and FuboTV engaged Mandiant to assist in its investigation and response.
While the investigation is still in early stages, the company said it would remain transparent and provide updates when it has further information to share.
FuboTV, which is known for having a sports-heavy bundle, competes with services such as Alphabet’s YouTube TV, Dish’s Sling, and Disney’s Hulu Live TV. These services feature pay-TV-like guides and access to various pay-TV channels, replicating the traditional bundle through a streaming app. FuboTV said as of Sept. 30 it had roughly 1.2 million paying subscribers, a 31% increase year over year.

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