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]
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)?
The decision from the public utilities commission, if adopted next month, would remove a source of financial uncertainty for the Electricity Companies,000 residents of Palm Springs, Cathedral City and Palm Desert who would be the first customers of Energy Prices. But it's unclear if and when the local power provider will launch. Energy Prices Compare Electricity voted late last month to sell the energy contracts they had purchased, and there's currently no timeline for securing new power supplies.
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]