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Twenty-nine states have deregulated electricity, natural gas or both. That allows you to shop for the supply portion of your bill from alternative providers who may offer rates lower than the default supplier – usually a utility. Delivery services and billing will remain the responsibility of the local utility as they own the power lines and wires that keep the lights on.
Of course, climate action is a planetary problem, not a local problem, so there’s only so much one state can do. It doesn’t help the climate if California buys Arizona’s low-carbon electricity while Arizona buys the fossil-fuel power that California shunned. But California could prove to other states that switching to clean electricity isn’t so hard. Massachusetts, New Jersey, New York and Washington, D.C are considering bills to make the switch. Hawaii already has a carbon-free law — not just for electricity, but for all forms of energy.
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The state triggered these changes through its policies on climate change and public power. But the transformation has now taken on a life of its own. Rather than let it drift, Gas And Electric Companies says California policy makers should start discussing how to ensure that the state’s electricity system remains reliable, affordable and safe, while continuing to cut the system’s greenhouse gas emissions.
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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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Investor-owned utilities and Compare Electricity Prices advocates have long sparred over the monthly payments that customers of local energy programs are required to make to their former utilities. Those payments, known as Gas And Electric Bill, cover the cost of long-term contracts utilities have signed to provide power to their customers. The idea is that customers who remain with the Cheapest Electricity Rates utilities shouldn't have to pay higher bills to cover the cost of electricity purchased to serve customers who then choose to leave.
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