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This article promotes a narrative that privatization leads to more renewables. This point lacks nuance as different energy markets that employ privatization can
by vegetablepotpie 3y ago
This article promotes a narrative that privatization leads to more renewables. This point lacks nuance as different energy markets that employ privatization can have wildly different ways to involve private firms and vastly different outcomes.
1. The retail competition of Texas, which has the highest renewable energy production in the U.S. [1], but is also a market where consumers overpay for electricity [2].
2. The regulated competition of California where municipalities have the ability to buy electricity in bulk and pass the savings onto the consumer. This ironically leads to more local government involvement in electricity procurement, and also gives private electricity generators more customers to sell to and rate payers at least two options to choose from. This leads to lower electric rates and higher renewable adoption, with some municipalities reaching over 90% renewable adoption [3].
3. Then you have what I call the energy tyranny of Arizona where ratepayer dollars are directed into the pockets of shareholders through legal fictions of “fair and reasonable return” for private investor owned utilities. Private companies are granted monopolies and guaranteed profits. Any form of competition is suppressed, community Solar is essentially rejected by the utility board [4], and the state legislature repealed competition laws to prevent it from being used to compete with utilities [5]. Renewable generation is just 10% of the states energy supply [6] despite having the most favorable conditions for solar in the nation.
[1] https://www.usnews.com/news/best-states/slideshows/these-states-use-the-most-renewable-energy https://www.usnews.com/news/best-states/slideshows/these-sta...
[2] https://www.nbcdfw.com/news/local/report-texans-overpay-for-electricity/1911146/ https://www.nbcdfw.com/news/local/report-texans-overpay-for-...
[3] https://www.mcecleanenergy.org/wp-content/uploads/2021/11/2021_MCE_Impact-Report_FINAL.pdf https://www.mcecleanenergy.org/wp-content/uploads/2021/11/20...
[4] https://ilsr.org/arizona-useless-community-solar-policy-2023/ https://ilsr.org/arizona-useless-community-solar-policy-2023...
[5] https://www.nrg.com/assets/documents/energy-policy/_2022/arizona-gme-news%20-release-post-house-senate-vote-hb2101-04192022.pdf https://www.nrg.com/assets/documents/energy-policy/_2022/ari...
[6] https://www.seia.org/states-map https://www.seia.org/states-map
- vondur 3y agoLower electric rates and California aren’t two words I see together.
- vegetablepotpie 3y agoIn absolute terms, no. In relative terms California CCAs offer their ratepayers lower rates than California utilities.
- fbdab103 3y ago>...California where municipalities have the ability to buy electricity in bulk and pass the savings onto the consumer. Uhh, come again? Price savings? Here in SoCal, I am paying for the most expensive electricity in my life. Almost a 4x multiple of what I was charged in the midwest.
- landemva 3y agoA big CA electricity provider was bankrupted a few years ago, so low rates may not be sustainable. https://www.cpuc.ca.gov/industries-and-topics/pge/pge-bankruptcy https://www.cpuc.ca.gov/industries-and-topics/pge/pge-bankru...
- lokar 3y agoPG&E was catastrophically mismanaged. They deserved what they got and much more.