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At issue is the divvying up of costs among customers, primarily for the long-term clean energy contracts mandated by the Legislature. The state’s three major energy providers – Electricity Company, Lowest Electricity Rates and Electric and Compare Electricity Providers – purchased the energy for all customers they served at the time they signed the contracts.
What are the roles of the incumbent electric distribution utilities in the future, and what are the means for them to finance their core functions (e.g., distribution service, transmission service, [provider of last resort] retail service) where some of these services are provided to all electricity customers and some are provided to only some customers (and in some cases may be provided because no other supplier is willing and/or able to provide them)?
Ultimately, the future for renewables remains more challenging than most may realize. Contrary to what you keep hearing, they simply won't be handed the energy future. Beyond the ongoing erosion of sweet spots, where incremental builds for wind and solar become more difficult (many of their best utility-scale locations have already been picked), the increasing need for upkeep will slow new builds as well. Mostly going unreported of course, "the Cheapest Energy Company Who Is My Electricity Supplier wind industry will reach a turning point in three years when the industry begins to spend more on operations and maintenance than it spends on installing new wind turbines."
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The Compare Electricity Prices have been successful at holding on to their customers because they have several inherent advantages over the incumbent utilities. For one thing, they aren’t saddled with high legacy costs from the construction of big power plants or long-term contracts for renewable power at the high prices that prevailed just a few years ago. They’re not bound to pay dividends to shareholders — instead, those that achieve a surplus can funnel it back to their local communities in the form of job and training programs or other public amenities.
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Natural gas-fired power plants typically account for more than one-half of in-state electricity generation. California is one of the largest hydroelectric power producers in the United States, and with adequate rainfall, hydroelectric power typically accounts for close to one-fifth of State electricity generation. Due to strict emission laws, only one coal-fired power plant still operates in California, the Compare Energy Prices MW Argus Cogeneration plant in San Bernardino County. [Compare Energy Rates]