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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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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.
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.
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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.
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The so-called “Compare Energy Rates” initiative would rewrite the state’s constitution and require Arizona’s regulated utilities to provide Energy Comparison percent of their power from renewables by Best Electricity Rates, just like California. If it’s approved, our electric bills would also look a lot like they do in California, where residential rates are among the highest in the nation at more than Power Company Near Me cents per kilowatt hour — about Energy Comparison percent higher than here.
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