Can Californians Afford All-Electric Zero Carbon Goals as Power Costs Skyrocket?

Source: GVWire.com  |  By Nancy Price

Rising electricity rates in California are on a “collision course” with the state’s goal to achieve zero carbon emissions by 2045, says Mark Toney, one of the state’s leading advocates for clean and affordable energy.

“Unless we can moderate the electricity rates, we’re going to end up in a situation where more and more people can’t afford to pay their bills and won’t, and the rates will be so high nobody wants to electrify. People are going to resist electricity because it doesn’t pencil out economically,” says Toney, executive director of TURN —The Utility Reform Network.

The combined cost of electricity and gas for PG&E customers is climbing two to three times faster than the rate of inflation, which is higher than it’s been in recent decades. And customers pay double, Toney says — in addition to their residential bills, they are also paying for higher food, clothing, and other costs, because producers and retailers are folding higher energy costs into the prices of goods and services.

Toney says TURN remains a staunch supporter of the state’s drive toward carbon neutrality, which took another step on Jan. 1 when a new building code took effect. The code now requires all new home construction to be wired for all-electric appliances and heating and air conditioning systems.

“Any economist will tell you that if you want people to adopt a new commodity, you reduce the price of the new commodity. You don’t jack it up,” Toney said.

But even if new housing is required to have solar panels and batteries, that will represent only a small proportion of residential power generators statewide, Toney said.

About 55% of Californians are living in rental properties, and their owners have no financial incentives to install solar equipment. Toney said he’s seen estimates that only about 12% to 15% of California homes have solar panels now. Of those homes, about 10% also have batteries to store the power generated from photovoltaics.

Counting on a bigger percentage of residences to be power generators doesn’t seem achievable in the short term. In addition, Californians need some protection from higher utility costs, Toney said.

“We want affordable green energy. And we can do this. But it has to be affordable,” he said. “The regulator has to make stronger choices for what’s good for the state here. And I think that they haven’t been willing to make the hard decisions. And one of the hard decisions is to tell the utility, no, there’s a limit on how much you can raise the rate. And it’s got to be reasonable, and it’s gotten out of hand.

“I mean, even right now, we’re concerned that heating your home with a heat pump will cost more already than heating your home with natural gas.”