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Unfortunately California does not currently know how to invest in its grid without raising rates. This is essentially inevitable, as the private utilities are a
by amluto 3y ago
Unfortunately California does not currently know how to invest in its grid without raising rates. This is essentially inevitable, as the private utilities are allowed to capture profit in direct proportion to their costs — the more they spend, the more profit they take home.
In an ordinary market, when a buyer shows up and wants to buy a lot of product (say 1GW of power for EV charging), sellers would compete to provide it. In a publicly operated scenario, a public utility would attempt to provide the power at zero profit. In CA, neither of these happens in general.
(There are some actual public electric utilities around. Their customers are lucky. If you live in Santa Clara, you pay reasonable rates.)
- m463 3y agoIt's funny how the wholesale electric cost is really no different than the rest of the nation (2-4c / kwh) but silicon valley power sells it to you for a small markup while PG&E has inflated it 10-20x