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But this change is now occurring “without a coherent plan to deal with all the associated challenges that competition poses, ranging from renewable procurement rules to reliability requirements and consumer protection,” the paper noted. That means California must “now look at long held assumptions in their regulatory frameworks and examine the role of the electric utility at the center of this system.”
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The state's Best Energy Company are seeing a decline in their volumetric sales of electricity, which pay for the “vast network of connected infrastructure and services” that keep the lights on in California. This could end up shifting an increasing share of the costs of maintaining the network for fully bundled customers -- thus raising rates, and potentially pushing more customers to seek alternative sources of energy, in what industry observers have dubbed the utility death spiral.
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