By Zero Hedge


Authored by Jude Clemente via RealClear Energy (emphasis ours),

In 2020, some 9 million Californians were unable to pay their energy bills. The California Public Utilities Commission (CPUC) reports that customers of the major investor-owned electric and gas utilities accumulated $1.15 billion in unpaid bills during the year.

As a “clean energy” climate leader, California seeks to achieve a carbon-free economy before 2050, ensuring that its electrical system can withstand extreme weather events and supply affordable energy to 40 million people.

That last goal might be the biggest challenge. The wind and the sun may be free, but deriving electricity from them is anything but.

California’s residential electricity price in 2020 was $20.50 per kWh, or 55% higher than the national average of $13.20 – an expensive energy problem that is only getting worse (see Figure).

The latest iteration of California’s Renewable Portfolio Standard (RPS), the 100% Clean Energy Act, was enacted in 2018. It requires California utilities to use 100% clean energy by 2045, with an interim requirement of 60% by 2030.

The costs are immense.

Experts at the University of Chicago’s Energy Policy Institute reported in November that “electricity prices increase substantially after RPS adoption,” adding $30 billion in extra costs after just seven years.

Here are just some of the numbers, according to new research from UC Berkeley’s Energy Institute at Haas:

  • Average residential prices per kWh in San Diego Gas & Electric’s (SDGE) service territory are about double the U.S. average.
  • Pacific Gas and Electric’s (PG&E) rates are 80% above the U.S. average.
  • Southern California Edison’s (SCE) prices are 45% higher than the U.S. average.
  • Since 2013, rates at San Diego Gas & Electric have risen nearly 50%, with customers of PG&E paying almost 40% more.

A new report from UC Berkeley attributed California’s high prices to huge fixed costs for generation and grid investments that simply get passed on to customers.

For example, costs for rooftop solar and wildfire mitigation are quickly mounting.

Experts at UCLA found that California’s clean energy programs are benefitting the rich and leaving vulnerable families behind.

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