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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."
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.
State lawmakers expected the price of electricity to decrease due to the resulting competition; hence they capped the price of electricity at the pre-deregulation level. Since they also saw it as imperative that the supply of electricity remain uninterrupted, utility companies were required by law to buy electricity from spot markets at uncapped prices when faced with imminent power shortages. [Energy Prices]
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