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The summer assessment expects electricity supplies to be adequate during daytime hours, largely due to the high production of solar power across the state. However, solar production falls off when the sun goes down and energy users come home from work, turn on their air conditioners and use appliances that suck up a lot of power, such as washer/dryers.
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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 major flaw of the deregulation scheme was that it was an incomplete deregulation – that is, "middleman" utility distributors continued to be regulated and forced to charge fixed prices, and continued to have limited choice in terms of electricity providers. Other, less catastrophic energy deregulation schemes, such as Pennsylvania's, have generally deregulated utilities but kept the providers regulated, or deregulated both.
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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]
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