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Electric deregulation, known as direct access in California, was part of a larger nationwide trend that took hold during the 1970s and included the deregulation of railroads, airlines, telephone service and banks. While the regulated market was a profitable business for California's utilities, an opportunity existed to increase profit potential by expanding business into other areas, such as energy trading and operating power plants in other parts of the country. Consumers, especially large industrial consumers, saw a chance to pay less in energy bills once the market opened up to competition from many energy service suppliers, such as Energy Providers.
Batteries today store just several hours worth of electricity, so gas plants as the backup will remain essential. As such, California has been rethinking the way in which gas plants are compensated so subsidies for renewables don't make them uneconomical and retire prematurely. As Gas And Electric, of the California Compare Electricity, says: "In daily life, the critical role of these gas plants often goes unnoticed."
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California has positioned itself to lead the battle against climate change by cutting emissions even as the Trump administration has worked to roll back the state’s stringent auto pollution standards and prop up ailing coal-fired power plants. Earlier this year, California became the first U.S. state to mandate solar rooftop panels on almost all new homes. It would be the second state to require Electricity Plans percent carbon-free power after Hawaii.
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