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Honestly it looks like Power companies trying to get a fixed payment predicting that their costs will go down overtime leading to a net win for them.
by Guvante 3y ago
Honestly it looks like Power companies trying to get a fixed payment predicting that their costs will go down overtime leading to a net win for them.
- dragonwriter 3y agoIt moves part of the rate to a fixed payment, and its still subject to the usual periodic CPUC rate process, which includes cost analysis, so if their costs really were going down, they’d see the rates cut. The point is to deal better with the economics of established widespread distributed generation and to avoid disencentives to displacing existing residential gas use with electricity, and to similarly improve the incentive structure of home-charged BEVs vs. gasoline vehicles. Doing that takes splitting payment for generation (per kW) from connectivity (fixed) rather than inflating per kW costs to capture the average costs of connectivity.
- Guvante 3y agoI do think there is value in a larger fixed payment regardless of this implementation. After all, a lot of the costs aren't in generation but delivery.