{"id":332287,"date":"2024-06-10T15:34:42","date_gmt":"2024-06-10T13:34:42","guid":{"rendered":"https:\/\/climatescience.press\/?p=332287"},"modified":"2024-06-10T15:34:47","modified_gmt":"2024-06-10T13:34:47","slug":"l-a-times-editorial-on-how-to-fight-skyrocketing-electric-bills-conceals-hugely-failed-california-government-electricity-market-debacles","status":"publish","type":"post","link":"https:\/\/climatescience.press\/?p=332287","title":{"rendered":"L A Times Editorial on How to Fight \u201cSkyrocketing Electric Bills\u201d Conceals Hugely Failed California Government Electricity Market Debacles"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

<\/p>\n\n\n\n

From Watts Up With That?<\/a><\/p>\n\n\n\n

L A Times Editorial on How to Fight \u201cSkyrocketing Electric Bills\u201d Conceals Hugely Failed California Government Electricity Market Debacles<\/strong><\/p>\n\n\n\n

Essay by Larry Hamlin<\/p>\n\n\n\n

The L A Times is proposing that the Government of California take further control of how Californian needs to address its decades long faltering electric energy policies with the absurd claim that additional new state government \u201cTransmission agencies\u201d can provide benefits to the people of California versus investor-owned utilities as described in their editorial<\/a> shown below.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Times offers the following \u201csolution\u201d as summarized below.<\/p>\n\n\n\n

\n

\u201cYou\u2019re not alone if it seems like your electric bill is getting too damn high.<\/p>\n<\/blockquote>\n\n\n\n

Californians pay some of the highest electric rates in the country. In the last decade households have seen their electricity rates nearly double even while their budgets are squeezed by inflation and rising temperatures from climate change mean they have to use more energy to cool their homes.<\/p>\n\n\n\n

And it\u2019s only going to get worse. State greenhouse gas reduction policies are pushing residents to adopt electric cars and appliances that will only increase their electricity consumption. Rate hikes have become bigger and more frequent, rising even faster than inflation for customers of the big three monopoly utility companies whose rates include costs for expensive wildfire mitigation, grid infrastructure projects and disaster-related payouts.\u201d<\/p>\n\n\n\n

The Times brilliant solution is that California government be mandated by the states politicians to fix<\/strong> the problems<\/strong> of the state\u2019s chaotic electric system as addressed below.      <\/p>\n\n\n\n

\u201cDon\u2019t make customers pay for everything\u201d<\/strong><\/p>\n\n\n\n

\n

\u201cMuch of what Californians are charged on their electric bills isn\u2019t for the cost of the power but for other purposes including the operation and maintenance of the grid, projects to reduce wildfires (power lines have sparked some of the state\u2019s worst ones) and energy efficiency programs.<\/p>\n\n\n\n

If investor-owned utilities were stripped of their responsibility for much of the spending not directly related to the generation and delivery of electricity, it would reduce the amount they could collect from customers and thus lower electric rates for everyone. One idea proposed as recently as 2022 by state Sen. Josh Becker (D-Menlo Park) is to create a state authority to publicly finance transmission line projects at lower cost.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Exactly how these on-going and growing necessary costs are to be paid for by the people of California is left completely unaddressed by the Times<\/strong>. Apparently, these costs will just disappear through use of government hidden magic and\/or taxes on those businesses, organizations and citizens politically out of favor and expendable to the state\u2019s Democratic party.   <\/p>\n\n\n\n

The Times proposal has now transported us back to the nightmare era of AB 1890<\/a> known as \u201cThe Electric Utility Industry Restructuring Act\u201d<\/strong> which provided for the creation of the \u201cgeneration of competitive electricity\u201d<\/strong> in California as of March 31,1998 through the development of a California government designed \u201cnew electricity market structure\u201d<\/strong>.<\/p>\n\n\n\n

This was achieved by mandating investor-owned utilities to sell their reliable cost-effective generation to \u201cindependent power producers\u201d who, according to the geniuses in the state legislature, could \u201clower generation costs\u201d (as hyped by the Times editorial for new \u201cstate transmission agencies\u201d) through the \u201cnew electricity market structure.\u201d            <\/p>\n\n\n\n

The California AB 1890 government designed \u201cnew electricity market structure\u201d<\/strong> was in full effect by the year 2000 (meaning that dozens of scheduled and unscheduled rolling blackouts occurred throughout the state impacting millions of people and businesses, that massively higher energy costs were occurring daily and that a completely out of control energy electricity market was in place)<\/strong> with these government driven electricity policy incompetent and disastrous results<\/strong> addressed in ugly detail in the <\/strong>California State Auditor<\/strong><\/a> report shown below that was unaddressed by the Times<\/strong>.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The California Department of Water Resources (a state agency with statutory authority to purchase and sell power for the state) was forced to take control away from the California government designed \u201cnew electricity market structure\u201d<\/strong> and obtain emergency electrical power for state<\/strong> with the outcome summarized in the audit as follows:<\/p>\n\n\n\n

\n

\u201cThe new power-purchasing role was an immense challenge that would have been difficult even for an organization with the needed infrastructure in place. Through September 2001 the department had spent nearly $10.7 billion to purchase energy under contract or in the spot market to meet the daily needs of the ratepayers<\/strong> of the three investor-owned utilities. When implementing AB 1X, the department-along with its consultants and the energy advisers appointed by the governor-undertook an effort to sign long-term contracts with power generators in an attempt to calm power prices. Subsequently, the department entered 57 long-term power contracts at a total value of approximately $42.6 billion over the next 10 years.\u201d<\/strong> <\/strong>  <\/p>\n<\/blockquote>\n\n\n\n

The unplanned for<\/strong> energy spot market increased costs of $10.7 billion dollars<\/strong> and unplanned<\/strong> long-term power contract ten-year commitments of an additional $42.6 billion dollars<\/strong> that were required to bring control to the state of California\u2019s electricity energy<\/strong> debacle represent and reflect the proven incompetent track record of the state of California government actions regarding its role in dealing with the state\u2019s electricity energy market<\/strong>. <\/p>\n\n\n\n

The government of California has been incompetently meddling in the electricity markets in California since 1998 always with the promise<\/strong> of lowering costs or presently falsely hyped as fighting \u201cclimate change<\/strong>\u201d.  <\/p>\n\n\n\n

As described above the state government energy electricity meddling started with the failed \u201cnew electricity market structure\u201d<\/strong> experiment and then evolved into the states mandated use in the year 2006 of nondispatchable and unreliable \u201crenewable energy\u201d<\/strong> as part of the states globally irrelevant<\/strong> \u201cglobal warming solutions act\u201d<\/strong> which further increased electricity prices and degraded electric system availability and reliability<\/strong>.<\/p>\n\n\n\n

The Times proposes that California government once again intervene in the state\u2019s electricity markets and \u201cfix\u201d<\/strong> the problems that it created in the first place.<\/strong> What could possibly go wrong \u2013 this time<\/strong>.<\/p>\n\n\n\n

Provided below are the detailed records of California governments abysmal results and impact on the states average electricity prices<\/strong> (unaddressed by the Times) which have grown from being the 11th highest in the U.S. in year 2000 (based on EIA data presented below) to being the second highest in the U.S. in 2022 (based on EIA data presented below) and the highest by far in the contiguous U.S. with only the electricity prices in Hawaii (another state experiencing the magic of renewable energy increased costs and lowered reliability) being greater<\/strong>. <\/p>\n\n\n\n

This dismal record of California\u2019s ever rising electrical energy costs (with more to come) was not created by the states investor-owned utilities<\/strong> but by the state governments incompetent mandated energy policy decisions and actions that allowed the states government agencies to dictate and control the state\u2019s energy policy and supply markets during this 22 year-period.<\/strong><\/p>\n\n\n\n

U.S. Energy Information Administration (EIA) year 2022 average electricity price data for California, all 50 states and the U.S. average are shown below<\/a>.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The EIA U.S. average electricity price in year 2022 was 12.36 cents\/kWh compared to California average electricity price of 22.33 cents\/kWh with the state\u2019s electricity price 80.6% greater than the U.S. average electricity price<\/strong>.<\/p>\n\n\n\n

The EIA U.S. average electricity price in year 2000 was 6.81 cents\/kWh compared to the California average electricity price of 9.47 cents\/kWh or just 39.06% greater than U.S. electricity price average<\/strong> as shown in detailed EIA average electricity price data obtained here<\/a> and shown below (average price for each of the 50 states and U.S. average contained in the right most column).<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Therefore, between the year<\/strong> 2000 to 2022 California\u2019s average electricity price growth was 2 times greater than the U.S. average electricity price growth during this period while also becoming the highest in the contiguous U.S.<\/strong> <\/p>\n\n\n\n

Additionally, in year 2000 California\u2019s average electricity price was only the 11th highest in the U.S. but in year 2022 California was the 2nd highest in the U.S. with only Hawaii being higher.<\/strong><\/p>\n\n\n\n

Looking at the Western U.S. states (shown below) the comparison of California average electricity prices and these states is even worse than for the contiguous U.S. <\/strong><\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n

To make comparisons of average electricity prices with the western states easier to view the EIA\u00a0chart below for the year 2012<\/a>\u00a0is used which presents a single table showing all of the 50 states and U.S. average electricity prices.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The U.S. average electricity price in year 2022 is 12.36 cents\/kWh and 9.84 cents\/kWh in 2012 with the California average electricity price in these years being 22.33 cents\/kWh and 13.50 cents\/kWh respectively.<\/strong><\/p>\n\n\n\n

This data establishes that California\u2019s average electricity price growth was 2.5 times greater than the average electricity price growth experienced across the U.S. during this period.<\/p>\n\n\n\n

EIA data shows California\u2019s average electricity price grew from 13.5 cents\/kWh to 22.33 cents\/kWh during this period while the average electricity price of the other 10 Western states only grew from 8.23 cents\/kWh to 9.78 cents\/kWh during the 2012 to 2022 period.<\/p>\n\n\n\n

This data establishes that California\u2019s average electricity price growth was 3.47 times greater than the average electricity price growth experienced by the other 10 western U.S. states during this period<\/p>\n\n\n\n

The California governments mind boggling \u201cnew electricity market structure\u201d turned a promise to deliver lower costs to customers into a reliability and cost debacle requiring $10.7 billion dollars in unplanned for increased short term power purchases.<\/p>\n\n\n\n

Even more significant was the unplanned need for additional firm capacity contracts to restore reliable power amounting to increased costs of $42.6 billion dollars in long term power contracts required for reliability and predictability of the state\u2019s electric system. Californians are still paying off these costs even today.<\/p>\n\n\n\n

Further, even after the state governments year 2000 cost and reliability electricity system debacle the state government again decided in 2006 (AB 32 Global Warming Solutions Act) to further meddle in the electric system by mandating unreliable, nondispatchable and costly renewable energy further driving up the state\u2019s electricity costs and jeopardizing electric system reliability once again.<\/p>\n\n\n\n

EIA average electricity pricing data for years 2006 (shown below) to 2022 establishes that California\u2019s average electricity price growth climbed by 1.9 times greater growth increase than occurred for the U.S. average electricity price during this same period.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

EIA electricity price data for California and the U.S states clearly shows how California\u2019s government meddling in electricity markets has for decades been systematically driving up the state\u2019s electricity prices hugely beyond increases being experienced elsewhere across the U.S.<\/strong><\/p>\n\n\n\n

Yet despite this incredibly flawed California government track record in \u201cfixing\u201d the state\u2019s electricity markets (described above) the Times recommends rewarding the states decades long government massively costly incompetent interference in the California energy and electricity markets by mandating even more government energy and electricity incompetent shenanigans in our future while falsely maligning and scapegoating the state\u2019s \u201cinvestor-owned\u201d utilities.<\/strong><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The L A Times is proposing that the Government of California take further control of how Californian needs to address its decades long faltering electric energy policies with the absurd claim that additional new state government \u201cTransmission agencies\u201d can provide benefits to the people of California versus investor-owned utilities as described in their editorial shown below.<\/p>\n","protected":false},"author":121246920,"featured_media":332300,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_coblocks_attr":"","_coblocks_dimensions":"","_coblocks_responsive_height":"","_coblocks_accordion_ie_support":"","_crdt_document":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[691829121,691829122,691829120],"class_list":{"0":"post-332287","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","6":"hentry","7":"category-uncategorized","8":"tag-electric-bills","9":"tag-government-of-california","10":"tag-l-a-times-editorial","12":"fallback-thumbnail"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2024\/06\/2file-20230102-22-ce3hqt.webp?fit=1356%2C668&ssl=1","jetpack_likes_enabled":true,"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/paxLW1-1ort","jetpack-related-posts":[{"id":255407,"url":"https:\/\/climatescience.press\/?p=255407","url_meta":{"origin":332287,"position":0},"title":"L A Times Electric Bill Increase Editorial Conceals California\u2019s Incompetent Energy & Climate Policies that Hugely Drive-Up Costs","author":"uwe.roland.gross","date":"01\/05\/2023","format":false,"excerpt":"The L A Times published yet another\u00a0incredibly misleading editorial\u00a0trying to blame California electric utilities for the states skyrocketing electricity cost increases while concealing decades of Democrat driven incompetent state government energy and climate policies that are responsible for driving up California\u2019s out of control energy and electricity costs.","rel":"","context":"In \"Climate Policies\"","block_context":{"text":"Climate Policies","link":"https:\/\/climatescience.press\/?tag=climate-policies"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/0-pinocchio.jpeg?fit=1200%2C893&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/0-pinocchio.jpeg?fit=1200%2C893&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/0-pinocchio.jpeg?fit=1200%2C893&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/0-pinocchio.jpeg?fit=1200%2C893&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/05\/0-pinocchio.jpeg?fit=1200%2C893&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":218166,"url":"https:\/\/climatescience.press\/?p=218166","url_meta":{"origin":332287,"position":1},"title":"Wall Street Journal Exposes Gov. Newsom & California\u2019s High-Cost Energy and Reliability Debacle","author":"uwe.roland.gross","date":"09\/09\/2022","format":false,"excerpt":"The Wall Street\u00a0Journal\u2019s article addressing the real-world energy and\u00a0reliability debacle in California is a milestone event in the U.S. regarding a major media publication presenting an honest and\u00a0accurate\u00a0assessment of the debacle of Democrat climate alarmist driven mandated renewable\u00a0energy\u00a0use in the U.S. \u00a0 \u00a0 \u00a0","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/09\/image-510.png?fit=1024%2C512&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/09\/image-510.png?fit=1024%2C512&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/09\/image-510.png?fit=1024%2C512&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2022\/09\/image-510.png?fit=1024%2C512&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":242318,"url":"https:\/\/climatescience.press\/?p=242318","url_meta":{"origin":332287,"position":2},"title":"LA Times is Wrong: Natural Gas Prices are NOT Due to \u2018Instability of Fossil Fuels\u2019","author":"uwe.roland.gross","date":"30\/01\/2023","format":false,"excerpt":"This latest Times editorial completely conceals the global wide failure of unreliable renewable energy that cannot be dispatched to meet electric system load demand with that flawed performance\u00a0outcome resulting in huge generation\u00a0capacity demand shortfalls that required large increased use of fossil fuels that were unplanned for and consequently capability limited.","rel":"","context":"Similar 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Fuels\u201d Grossly Distorted","author":"uwe.roland.gross","date":"27\/01\/2023","format":false,"excerpt":"The L A Times long campaign of\u00a0politically driven and flawed climate\u00a0alarmism propaganda editorials which includes the Times incompetent and misrepresented claims for the year 2022 climate\u00a0outcomes as exposed in a\u00a0recent WUWT\u00a0article\u00a0(shown below) has now moved on to another contrived editorial falsely attributing the recent high\u00a0natural\u00a0gas prices in California to \u201cinstability\u2026","rel":"","context":"Similar post","block_context":{"text":"Similar post","link":""},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-1186.png?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/climatescience.press\/wp-content\/uploads\/2023\/01\/image-1186.png?fit=1200%2C800&ssl=1&resize=350%2C200 1x, 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