Two countless energy trends continue in California: rising electricity prices and increasingly worsening reliability – and both trends pain in the area for low -and -half -income state buyers.
Last week, the state’s grid operator, the California Independent System Operator, issues a “flex alert” urging state consumers to reduce their power usage “to reduce grid tension and avoid power outages.”
CAISO’s warning of an impending electricity shortage heralds a blackout-outdled summer of simultaneous rise in California electricity prices.
In 2020, California electricity prices jumped 7.5%, making it the largest price increase of any state in the country in the past year and nearly seven times the increase seen across the United States. Agreed to data from the Energy Information Administration, California’s all-sector electricity price last year jumped 18.15 cents per kilowatt-hour, meaning Californians now pay nearly 70% more for their electricity than the average rate. all US sectors at 10.66 cents per kWh. Even more worrying: California’s electricity prices are expected to rise over the next decade. (That’s more for a while.)
The increase in the cost of electricity will add to weight of strength burdened by low-and-half-income Californians. High energy costs have had a particular impact on change in California, which has the highest poverty rate – and some of the highest electricity prices – in the country. By 2020, electricity prices in all sectors of California will be the third highest on the U.S. continent, just behind Rhode Island (18.55 cents per kWh) and Connecticut (19.19 cents per kWh.)
Before going any further, let me state clearly: California policymakers provide a case study of how not to manage an electric grid. In addition, that case study shows what can happen if state and federal level policymakers decide to follow California’s radical decarbonization rule, which includes the need for 100% zero-carbon power in 2045 and an overall economic carbon neutrality goal by 2045.
Even if the state’s broken power barely meets current demand – and more blackouts are almost certain this summer – California continues to put bad policy on top of bad policy. The state has banned the future sale of cars powered by internal combustion engines that would result in a dramatic increase in electricity demand and would require, according to a recent California Energy Commission report, to put 1.2 million new EV billing stations by 2030. Natural gas bans will further increase the demand for electricity. Enjoyed the Sierra Club, which took over ten million dollars from billionaire Michael Bloomberg, about 46 communities in California have banned the use of natural gas in homes and businesses. Making the whole thing even more useless, so California promises to achieve these goals while shutting down the last remaining nuclear power plant, Diablo Canyon Power Plant, which in itself makes up nearly 10% of all juices consumed in California.– READ MORE
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