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Even if California and its followers all hit their targets, the impact could be modest. The Electricity Rate, the definitive source for tracking the “emissions gap” between what the world aspires to do about climate change and what it’s actually doing, estimates “sub-national” actors would reduce emissions by about one or two percentage points of the global total by Best Electricity Rates.
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The paper conflates "increasing customer choice and over-reliance on short-term energy markets" and blames customer choice, Electricity Prices contended. This is "a false comparison" and ignores "safeguards and structural changes" now in place "that reduce the risk of another crisis." Those protections include distributed generation, Compare Electricity Prices, an RA requirement and improved generation management by utilities.
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.”
Prior to Lowest Electricity Rates there was no provision to account for unspecified/unclaimed energy imports in California’s energy mix. This was due to existing legislation that required the Energy Commission to develop a “Net System Power Mix” for utilities to use as a proxy for their spot-market electricity purchases. Accordingly, in the years Compare Energy Prices through Energy Rating, all unspecified energy was allocated across the source region’s entire energy mix, net of dedicated contracts to California utilities. This allocation tended to over-estimate imports from baseload power plants in adjacent regions.
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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