Cleaner plant emissions could up demand for high sulfur coal

By Charleston Daily Mail


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A Marshall County power plant is producing cleaner emissions, and that could mean good things for the Ohio Valley coal industry.

American Electric Power announced the complete installation of two so-called scrubbers at its Kammer-Mitchell plant. With the scrubbers installed, the plant is reducing its sulfur dioxide emissions by 98 percent.

The cleaner process could have other effects beyond reducing air pollution. High sulfur coal of the kind mined in the Ohio Valley is the best to use with the new scrubber, so AEP officials expect they'll need more coal from local mines. The plant uses about four million tons of coal every year.

Kammer-Mitchell has entered into an agreement with Consol Energy to provide more high sulfur coal for the plant.

"As plants add scrubbers, they create a new market for Ohio Valley coal mines,'' said Consol spokesman Tom Hoffman. "The scrubbers are a key part of increasing demand for coal.''

The plant also added about 55 new full-time employees to its payroll because of the scrubbers and a system for reducing emissions known as "selective catalytic reduction.''

Work on the scrubbers, technically called flue gas desulfurizarions, led to the death of a contract employee in March 2006.

Gerald Talbert, 27, died in March 2006 when the 1,000-foot tall scrubber stack caught fire while he and other workers were inside. Talbert was an employee of Pullman Power LLC, a Kansas City company working on the plant's upgrade, which was designed to bring it in line with federal emissions standards.

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EIA: Pennsylvania exports the most electricity, California imports the most from other states

U.S. Electricity Trade by State, 2013-2017 highlights EIA grid patterns, interstate imports and exports, cross-border flows with Canada and Mexico, net exporters and importers, and market regions like ISOs and RTOs shaping consumption and generation.

 

Key Points

Brief EIA overview of interstate and cross-border power flows, ranking top net importers and exporters.

✅ Pennsylvania was the largest net exporter, averaging 59 million MWh.

✅ California was the largest net importer, averaging 77 million MWh.

✅ Top cross-border: NY, CA, VT, MN, MI imports; WA, TX, CA, NY, MT exports.

 

According to the U.S. Energy Information Administration (EIA) State Electricity Profiles, from 2013 to 2017, Pennsylvania was the largest net exporter of electricity, while California was the largest net importer.

Pennsylvania exported an annual average of 59 million megawatt-hours (MWh), while California imported an average of 77 million MWh annually.

Based on the share of total consumption in each state, the District of Columbia, Maryland, Massachusetts, Idaho and Delaware were the five largest power-importing states between 2013 and 2017, highlighting how some clean states import 'dirty' electricity as consumption outpaces local generation. Wyoming, West Virginia, North Dakota, Montana and New Hampshire were the five largest power-exporting states. Wyoming and West Virginia were net power exporting states between 2013 and 2017.

New York, California, Vermont, Minnesota and Michigan imported the most electricity from Canada or Mexico on average from 2013 to 2017, reflecting the U.S. look to Canada for green power during that period. Similarly, Washington, Texas, California, New York, and Montana exported the most electricity to Canada or Mexico, on average, during the same period.

Electricity routinely flows among the Lower 48 states and, to a lesser extent, between the United States and Canada and Mexico. From 2013 to 2017, Pennsylvania was the largest net exporter of electricity, sending an annual average of 59 million megawatthours (MWh) outside the state. California was the largest net importer, receiving an average of 77 million MWh annually.

Based on the share of total consumption within each state, the District of Columbia, Maryland, Massachusetts, Idaho, and Delaware were the five largest power-importing states between 2013 and 2017. Wyoming, West Virginia, North Dakota, Montana, and New Hampshire were the five largest power-exporting states. States with major population centers and relatively less generating capacity within their state boundaries tend to have higher ratios of net electricity imports to total electricity consumption, as utilities devote more to electricity delivery than to power production in many markets.

Wyoming and West Virginia were net power exporting states (they exported more power to other states than they consumed) between 2013 and 2017. Customers residing in these two states are not necessarily at an economic disadvantage or advantage compared with customers in neighboring states when considering their electricity bills and fees and market dynamics. However, large amounts of power trading may affect a state’s revenue derived from power generation.

Some states also import and export electricity outside the United States to Canada or Mexico, even as Canada's electricity exports face trade tensions today. New York, California, Vermont, Minnesota, and Michigan are the five states that imported the most electricity from Canada or Mexico on average from 2013 through 2017. Similarly, Washington, Texas (where electricity production and consumption lead the nation), California, New York, and Montana are the five states that exported the most electricity to Canada or Mexico, on average, for the same period.

Many states within the continental United States fall within integrated market regions, referred to as independent system operators or regional transmission organizations. These integrated market regions allow electricity to flow freely between states or parts of states within their boundaries.

EIA’s State Electricity Profiles provide details about the supply and disposition of electricity for each state, including net trade with other states and international imports and exports, and help you understand where your electricity comes from more clearly.

 

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Four Facts about Covid and U.S. Electricity Consumption

COVID-19 Impact on U.S. Electricity Consumption shows commercial and industrial demand dropped as residential use rose, with flattened peak loads, weekday-weekend convergence, Texas hourly data, and energy demand as a real-time economic indicator.

 

Key Points

It reduced commercial and industrial demand while raising residential use, shifting peaks and weekday patterns.

✅ Commercial electricity down 12%; industrial down 14% in Q2 2020

✅ Residential use up 10% amid work-from-home and lockdowns

✅ Peaks flattened; weekday-weekend loads converged in Texas

 

This is an important turning point for the United States. We have a long road ahead. But one of the reasons I’m optimistic about Biden-Harris is that we will once again have an administration that believes in science.

To embrace this return to science, I want to write today about a fascinating new working paper by Tufts economist Steve Cicala.

Professor Cicala has been studying the effect of Covid on electricity consumption since back in March, when the Wall Street Journal picked up his work documenting an 18% decrease in electricity consumption in Italy.

The new work, focused on the United States, is particularly compelling because it uses data that allows him to distinguish between residential, commercial, and industrial sectors, against a backdrop of declining U.S. electricity sales over recent years.

Without further ado, here are four facts he uncovers about Covid and U.S. electricity demand during COVID-19 and consumption.

 

Fact #1: Firms Are Using Less
U.S. commercial electricity consumption fell 12% during the second quarter of 2020. U.S. industrial electricity consumption fell 14% over the same period.

This makes sense. The second quarter was by some measures, the worst quarter for the U.S. economy in over 145 years!

Economic activity shrank. Schools closed. Offices closed. Factories closed. Restaurants closed. Malls closed. Even health care offices closed as patients delayed going to the dentist and other routine care. All this means less heating and cooling, less lighting, less refrigeration, less power for computers and other office equipment, less everything.

The decrease in the industrial sector is a little more surprising. My impression had been that the industrial sector had not fallen as far as commercial, but amid broader disruptions in coal and nuclear power that strained parts of the energy economy, the patterns for both sectors are quite similar with the decline peaking in May and then partially rebounding by July. The paper also shows that areas with higher unemployment rates experienced larger declines in both sectors.

 

Fact #2: Households Are Using More
While firms are using less, households are using more. U.S. residential electricity consumption increased 10% during the second quarter of 2020. Consumption surged during March, April, and May, a reflection of the lockdown lifestyle many adopted, and then leveled off in June and July – with much less of the rebound observed on the commercial/industrial side.

This pattern makes sense, too. In Professor Cicala’s words, “people are spending an inordinate amount of time at home”. Many of us switched over to working from home almost immediately, and haven’t looked back. This means more air conditioning, more running the dishwasher, more CNN (especially last week), more Zoom, and so on.

The paper also examines the correlates of the decline. Areas in the U.S. where more people can work from home experienced larger increases. Unemployment rates, however, are almost completely uncorrelated with the increase.

 

Fact #3: Firms are Less Peaky
The paper next turns to a novel dataset from Texas, where Texas grid reliability is under active discussion, that makes it possible to measure hourly electricity consumption by sector.

As the figure above illustrates, the biggest declines in commercial/industrial electricity consumption have occurred Monday through Friday between 9AM and 5PM.

The dashed line shows the pattern during 2019. Notice the large spikes in electricity consumption during business hours. The solid line shows the pattern during 2020. Much smaller spikes during business hours.

 

Fact #4: Everyday is Like Sunday
Finally, we have what I would like to nominate as the “Energy Figure of the Year”.

Again, start with the pattern for 2019, reflected by the dashed line. Prior to Covid, Texas households used a lot more electricity on Saturdays and Sundays.

Then along comes Covid, and turned every day into the weekend. Residential electricity consumption in Texas during business hours Monday-Friday is up 16%(!).

In the pattern for 2020, it isn’t easy to distinguish weekends from weekdays. If you feel like weekdays and weekends are becoming a big blur – you are not alone.

 

Conclusion
Researchers are increasingly thinking about electricity consumption as a real-time indicator of economic activity, even as flat electricity demand complicates utility planning and investment. This is an intriguing idea, but Professor Cicala’s new paper shows that it is important to look sector-by-sector.

While commercial and industrial consumption indeed seem to measure the strength of an economy, residential consumption has been sharply countercylical – increasing exactly when people are not at work and not at school.

These large changes in behavior are specific to the pandemic. Still, with the increased blurring of home and non-home activities we may look back on 2020 as a key turning point in how we think about these three sectors of the economy.

More broadly, Professor Cicala’s paper highlights the value of social science research. We need facts, data, and yes, science, if we are to understand the economy and craft effective policies on energy insecurity and shut-offs as well.

 

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Tackling climate change with machine learning: Covid-19 and the energy transition

Covid-19 Energy Transition and Machine Learning reshape climate change policy, electricity planning, and grid operations, from demand forecasting and decarbonization strategies in Europe to scalable electrification modeling and renewable integration across Africa.

 

Key Points

How the pandemic reshapes energy policy and how ML improves planning, demand forecasts, and grid reliability in Africa.

✅ Pandemic-driven demand shifts strain grid operations and markets

✅ Policy momentum risks rollback; favor future-oriented decarbonization

✅ ML boosts demand prediction, electrification, and grid reliability in Africa

 

The impact of Covid-19 on the energy system was discussed in an online climate change workshop that also considered how machine learning can help electricity planning in Africa.

This year’s International Conference on Learning Representations event included a workshop held by the Climate Change AI group of academics and artificial intelligence industry representatives, which considered how machine learning can help tackle climate change and highlighted advances by European electricity prediction specialists working in this field.

Bjarne Steffen, senior researcher at the energy politics group at ETH Zürich, shared his insights at the workshop on how Covid-19 and the accompanying economic crisis are affecting recently introduced ‘green’ policies. “The crisis hit at a time when energy policies were experiencing increasing momentum towards climate action, especially in Europe, and in proposals to invest in smarter electricity infrastructure for long-term resilience,” said Steffen, who added the coronavirus pandemic has cast into doubt the implementation of such progressive policies.

The academic said there was a risk of overreacting to the public health crisis, as far as progress towards climate change goals was concerned.

 

Lobbying

“Many interest groups from carbon-intensive industries are pushing to remove the emissions trading system and other green policies,” said Steffen. “In cases where those policies are having a serious impact on carbon-emitting industries, governments should offer temporary waivers during this temporary crisis, instead of overhauling the regulatory structure.”

However, the ETH Zürich researcher said any temptation to impose environmental conditions to bail-outs for carbon-intensive industries should be resisted. “While it is tempting to push a green agenda in the relief packages, tying short-term environmental conditions to bail-outs is impractical, given the uncertainty in how long this crisis will last,” he said. “It is better to include provisions that will give more control over future decisions to decarbonize industries, such as the government taking equity shares in companies.”

Steffen shared with pv magazine readers an article published in Joule which can be accessed here, and which articulates his arguments about how Covid-19 could affect the energy transition.

 

Covid-19 in the U.K.

The electricity system in the U.K. is also being affected by Covid-19, even as the U.S. electric grid grapples with climate risks, according to Jack Kelly, founder of London-based, not-for-profit, greenhouse gas emission reduction research laboratory Open Climate Fix.

“The crisis has reduced overall electricity use in the U.K.,” said Kelly. “Residential use has increased but this has not offset reductions in commercial and industrial loads.”

Steve Wallace, a power system manager at British electricity system operator National Grid ESO recently told U.K. broadcaster the BBC electricity demand has fallen 15-20% across the U.K. The National Grid ESO blog has stated the fall-off makes managing grid functions such as voltage regulation more challenging.

Open Climate Fix’s Kelly noted even events such as a nationally-coordinated round of applause for key workers was followed by a dramatic surge in demand, stating: “On April 16, the National Grid saw a nearly 1 GW spike in electricity demand over 10 minutes after everyone finished clapping for healthcare workers and went about the rest of their evenings.”

Climate Change AI workshop panelists also discussed the impact machine learning could have on improving electricity planning in Africa. The Electricity Growth and Use in Developing Economies (e-Guide) initiative funded by fossil fuel philanthropic organization the Rockefeller Foundation aims to use data to improve the planning and operation of electricity systems in developing countries.

E-Guide members Nathan Williams, an assistant professor at the Rochester Institute of Technology (RIT) in New York state, and Simone Fobi, a PhD student at Columbia University in NYC, spoke about their work at the Climate Change AI workshop, which closed on Thursday. Williams emphasized the importance of demand prediction, saying: “Uncertainty around current and future electricity consumption leads to inefficient planning. The weak link for energy planning tools is the poor quality of demand data.”

Fobi said: “We are trying to use machine learning to make use of lower-quality data and still be able to make strong predictions.”

The market maturity of individual solar home systems and PV mini-grids in Africa mean more complex electrification plan modeling is required, similar to integrating AI data centers into Canada's grids at scale.

 

Modeling

“When we are doing [electricity] access planning, we are trying to figure out where the demand will be and how much demand will exist so we can propose the right technology,” added Fobi. “This makes demand estimation crucial to efficient planning.”

Unlike many traditional modeling approaches, machine learning is scalable and transferable. Rochester’s Williams has been using data from nations such as Kenya, which are more advanced in their electrification efforts, to train machine learning models to make predictions to guide electrification efforts in countries which are not as far down the track.

Williams also discussed work being undertaken by e-Guide members at the Colorado School of Mines, which uses nighttime satellite imagery and machine learning to assess the reliability of grid infrastructure in India, where new algorithms to prevent ransomware-induced blackouts are also advancing.

 

Rural power

Another e-Guide project, led by Jay Taneja at the University of Massachusetts, Amherst – and co-funded by the Energy and Economic Growth program on development spending based at Berkeley – uses satellite imagery to identify productive uses of electricity in rural areas by detecting pollution signals from diesel irrigation pumps.

Though good quality data is often not readily available for Africa, Williams added, it does exist.

“We have spent years developing trusting relationships with utilities,” said the RIT academic. “Once our partners realize the value proposition we can offer, they are enthusiastic about sharing their data … We can’t do machine learning without high-quality data and this requires that organizations can effectively collect, organize, store and work with data. Data can transform the electricity sector, as shown by Canadian projects to use AI for energy savings, but capacity building is crucial.”

 

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Trump's Order Boosts U.S. Uranium and Nuclear Energy

Uranium Critical Mineral Reclassification signals a US executive order directing USGS to restore critical status, boosting nuclear energy, domestic uranium mining, streamlined permitting, federal support, and energy security amid import reliance and supply chain risks.

 

Key Points

A policy relisting uranium as a critical mineral to unlock funding, speed permits, and strengthen U.S. nuclear security.

✅ Directs Interior to have USGS reconsider uranium classification

✅ Speeds permits for domestic uranium mining projects

✅ Targets import dependence and strengthens energy security

 

In a strategic move to bolster the United States' nuclear energy sector, former President Donald Trump issued an executive order on January 20, 2025, directing the Secretary of the Interior to instruct the U.S. Geological Survey (USGS) to reconsider classifying uranium as a critical mineral. This directive aims to enhance federal support and streamline permitting processes for domestic uranium projects, thereby strengthening U.S. energy security objectives.

Reclassification of Uranium as a Critical Mineral

The USGS had previously removed uranium from its critical minerals list in 2022, categorizing it as a "fuel mineral" that did not qualify for such designation. The recent executive order seeks to reverse this decision, recognizing uranium's strategic importance in the context of the nation's energy infrastructure and geopolitical considerations.

Implications for Domestic Uranium Production

Reclassifying uranium as a critical mineral is expected to unlock federal funding and expedite the permitting process for uranium mining projects within the United States. This initiative is particularly pertinent given the significant decline in domestic uranium production over the past two decades. According to the U.S. Energy Information Administration, domestic production has decreased by 96%, from 4.8 million pounds in 2014 to approximately 121,296 pounds in the third quarter of 2024.

Current Uranium Supply Dynamics

Despite the push for increased domestic production, the U.S. remains heavily reliant on uranium imports. In 2022, 27% of U.S. uranium purchases were sourced from Canada, with an additional 57% imported from countries including Kazakhstan, Uzbekistan, Australia, and Russia; a recent ban on Russian uranium could further disrupt these supply patterns and heighten risks. This reliance on foreign sources has raised concerns about energy security, especially in light of recent geopolitical tensions.

Challenges and Considerations

While the executive order represents a significant step toward revitalizing the U.S. nuclear energy sector, several challenges persist, and energy dominance faces constraints that will shape implementation:

  • Regulatory Hurdles: Accelerating the permitting process for uranium mining projects involves navigating complex environmental and regulatory frameworks, though recent permitting reforms for geothermal hint at potential pathways, which can be time-consuming and contentious.

  • Market Dynamics: The uranium market is subject to global supply and demand fluctuations, and domestic producers may face competition from established international suppliers.

  • Infrastructure Development: Expanding domestic uranium production necessitates substantial investment in mining infrastructure and workforce development, areas that have been underfunded in recent years.

Broader Implications for Nuclear Energy Policy

The executive order aligns with a broader strategy to revitalize the U.S. nuclear energy industry, where ongoing nuclear innovation is critical to delivering stable, low-emission power. The increasing demand for nuclear energy is driven by the global push for zero-emissions energy sources and the need to support power-intensive technologies, such as artificial intelligence servers.

Former President Trump's executive order to reclassify uranium as a critical mineral, aligning with his broader energy agenda and a prior pledge to end the 'war on coal', signifies a pivotal moment for the U.S. nuclear energy sector. By potentially unlocking federal support, including programs advanced by the Nuclear Innovation Act, and streamlining permitting processes, this initiative aims to reduce dependence on foreign uranium sources and enhance national energy security. However, realizing these objectives will require addressing regulatory challenges, market dynamics, and infrastructure needs to ensure the successful revitalization of the domestic uranium industry.

 

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N.L. lags behind Canada in energy efficiency, but there's a silver lining to the stats

Newfoundland and Labrador Energy Efficiency faces low rankings yet signs of progress: heat pumps, EV charging networks, stricter building codes, electrification to tap Muskrat Falls power and cut greenhouse gas emissions and energy poverty.

 

Key Points

Policies and programs improving N.L.'s energy use via electrification, EVs, heat pumps, and stronger building codes.

✅ Ranks last provincially but showing policy momentum

✅ Heat pump grants and EV charging network underway

✅ Stronger building codes and electrification can cut emissions

 

Ah, another day, another depressing study that places Newfoundland and Labrador as lagging behind the rest of Canada.

We've been in this place before — least-fit kids, lowest birthrate — and now we can add a new dubious distinction to the pile: a ranking of the provinces according to energy efficiency placed Newfoundland and Labrador last.

Efficiency Canada released its first-ever provincial scorecard Nov. 20, comparing energy efficiency policies among the provinces. With energy efficiency a key part of reducing greenhouse gas emissions, Newfoundland and Labrador sat in 10th place, noted for its lack of policies on everything from promoting EV uptake in Atlantic Canada to improving efficient construction codes.

But before you click away to a happier story (about, say, a feline Instagram superstar) one of the scorecard's authors says there's a silver lining to the statistics.

"It's not that Newfoundland and Labrador is doing anything badly; it's just that it could do more," said Brendan Haley, the policy director at Efficiency Canada, a new think tank based at Carleton University.

"There's just a general lack of attention to implementing efficiency policies relative to other jurisdictions, including New Brunswick's EV rebate programs on transportation."

Looking at the scorecard and comparing N.L. with British Columbia, which snagged the No. 1 spot, isn't a great look. B.C. scored 56 points out of a possible 100, while N.L. got just 15.

Haley pointed out that B.C.'s provincial government is charting progress toward 2032, when all new builds will have to be net-zero energy ready; that is, buildings that can produce as much clean energy as they consume.  

While it might not be feasible to emulate that to a T here, Haley said the province could be mandating better energy efficiency standards for new, large building projects, and, at the same time, promote electrification of such projects as a way to soak up some of that surplus Muskrat Falls electricity.

Staring down Muskrat's 'extraordinary' pressure on N.L. electricity rates

It's impossible to talk about energy efficiency in N.L. without considering that dam dilemma. As Muskrat Falls comes online, likely at the end of 2020, customer power rates are set to rise in order to pay for it, and the province is still trying to figure out the headache that is rate mitigation.

"There is a strategic choice to be made in Newfoundland and Labrador," Haley told CBC Radio's On The Go.

While having more customers using Muskrat Falls power can help with rate mitigation, including through initiatives like N.L.'s EV push to grow demand, Haley noted simply using its excess electricity for the sake of it isn't a great goal.

"That should not be an excuse, I think, to almost have a policy of wasting energy on purpose, or saying that we don't need programs that help save electricity anymore," he said.

Energy poverty
Lots of N.L. homeowners are currently feeling a chill from the spectre of rising electricity rates.

Of course, that draft could be coming from a poorly insulated and heated house, as Efficiency Canada noted 38 per cent of all households in N.L. live in what it calls "energy poverty," where they spend more than six per cent of their after-tax income on energy — that's the second highest such rate in the country.

That poverty speaks for a need for N.L.to boost efficiency incentives for vulnerable populations, although Haley noted the government is making progress. The province recently expanded its home energy savings program, doubling in the last budget year to $2 million, which gives grants to low income households for upgrades like insulation.

Can you guess what products are selling like hotcakes as Muskrat Falls looms? Heat pumps

And since Efficiency Canada compiled its scorecard, the province has introduced a $1-million heat pump program, in which 1,000 homeowners could receive $1,000 toward the purchase of a heat pump. 

That program began accepting applications Oct. 15, and one month in, has had 682 people apply, according to the Department of Municipal Affairs and Environment, along with thousands of inquiries.

Heat pump popularity
Even without that program, heat pump sales have skyrocketed in the province since 2017. That popularity doesn't come as much of a surprise to Darren Brake, the president of KSAB Construction in Corner Brook.

With more than two decades in the home building business, he's been seeing consumer demand for home energy efficiency rise to the point where a year ago, his company transitioned into only building third-party certified energy efficient homes.

"Everybody's really concerned about the escalating power costs and energy costs, I assume because of Muskrat Falls," he said.

"It's evolving now, as we speak. Everybody is all about that monthly payment."

Brake uses spray foam installation in every house he builds, to seal up any potential leaks. Without sealing the building envelope, he says, a heat pump is far less efficient. (Lindsay Bird/CBC)
And in the weakest housing market in the province in half a century, Brake has been steadily moving his, building and selling seven in the last year.

Brake's houses include heat pumps, but he said the real savings come from their heavily insulated walls, roof and floors. Homeowners looking to install a heat pump in their leaky old house, he said, won't see lower power bills in quite the same way.

"They are energy efficient, but it's more about the building envelope to make a home efficient and easy to heat. You can put a heat pump in an older home that leaks a lot of air, and you won't get the same results," he said.

Charging network coming
The other big piece to the efficiency puzzle — in the scorecard's eyes — is electric vehicles. Those could, again, use some of that Muskrat Falls energy, as well as curtail gas guzzling, but Efficiency Canada pointed to a lack of policies and incentives surrounding electrifying transportation, such as Nova Scotia's vehicle-to-grid pilot that illustrates innovation elsewhere.

Unlike Quebec or B.C., the province doesn't offer a rebate for buying EVs, even as N.W.T. encourages EVs through targeted measures, and while electric vehicles got loud applause at the House of Assembly last week, it was absent of any policy or announcement beyond the province unveiling a EV licence plate design to be used in the near future.

Electric-vehicle charging network planned for N.L. in 2020

But since the scorecard was tallied, NL Hydro has unveiled plans for a Level 3 charging network for EVs across the island, dependent on funding, with N.L.'s first fast-charging network seen as just the beginning for local drivers.

NL Hydro says while its request for proposals for an island-wide charging network closed earlier in November, there is no progress update yet, even as N.B.'s fast-charging rollout advances along the Trans-Canada. (Credit: iStock/Getty Images)
That cash appears to still be in limbo, as "we are still progressing through the funding process," said an NL Hydro spokesperson in an email, with no "additional details to release at this time."

Still, the promise of a charging network — plus the swift uptake on the heat pump program — could boost N.L.'s energy efficiency scorecard next time it's tallied, said Haley.

"It is encouraging to see the province moving forward on smart and efficient electrification," he said.

 

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CALIFORNIA: Why your electricity prices are soaring

California Electricity Prices are surging across PG&E, SCE, and SDG&E territories, driven by fixed grid costs, wildfire mitigation, CARE subsidies, and Net Energy Metering, burdening low-income renters and increasing statewide utility debt, CPUC reports show.

 

Key Points

High rates driven by fixed grid costs and policies, burdening low-income customers across PG&E, SCE, and SDG&E.

✅ Fixed costs: transmission, distribution, wildfire mitigation

✅ Solar NEM shifts grid costs onto remaining ratepayers

✅ CPUC, CARE, LIHEAP aim to relieve rising utility debt

 

California's electricity prices are among the highest in the country, new research says, and those costs are falling disproportionately on a customer base that's already struggling to pay their bills.

PG&E customers pay about 80 percent more per kilowatt-hour than the national average, according to a study by the energy institute at UC Berkeley's Haas Business School with the nonprofit think tank Next 10. The study analyzed the rates of the state's three largest investor-owned utilities and found that Southern California Edison charged 45 percent more than the national average, while San Diego Gas & Electric charged double. Even low-income residents enrolled in the California Alternate Rates for Energy program paid more than the average American.

"California's retail prices are out of line with utilities across the country," said UC Berkeley assistant professor and study co-author Meredith Fowlie, citing Hawaii and some New England states among the outliers with even higher rates. "And they're increasing, as regulators face calls for action across the state."


So why are prices so high?
One reason is that California's size and geography inflate the "fixed" costs of operating its electric system, even as the state considers revamping electricity rates to clean the grid in parallel, which include maintenance, generation, transmission, and distribution as well as public programs like CARE and wildfire mitigation, according to the study. Those costs don't change based on how much electricity residents consume, yet between 66 and 77 percent of Californians' electricity bills are used to offset the costs of those programs, the study found.

These are legitimate expenses, Fowlie said. However, because lower-income residents use only moderately less electricity than higher income households, they end up with a disproportionate share of the burden, according to the study. And while the bills of older, wealthier Californians continue to decrease as they adopt cost-efficient alternatives like the state's Net Energy Metering solar program and the resulting solar power cost shift dynamic, costs will keep rising for a shrinking customer base composed mostly of low- and middle-income renters who still use electricity as their main energy source.

"When households adopt solar, they're not paying their fair share," Fowlie said. While solar users generate power that decreases their bills, they still rely on the state's electric grid for much of their power consumption - without paying for its fixed costs like others do.

"As this continues it's going to make electricity even more unaffordable," said F. Noel Perry, founder of Next 10, which funds nonpartisan research on the economy and environment.

PG&E this month raised its electricity rates 3.7 percent, amounting to a $5.01 a month increase for the average residential customer, who now pays $138.85 a month for electricity. It was the second increase this year, as regulators consider major changes to electric bills statewide, said Mark Toney, executive director of The Utility Reform Network, who noted that higher rates are particularly difficult for those who have lost their jobs in the pandemic. The California Public Utilities Commission last year approved a PG&E plan for more incremental increases through Dec. 31, 2022.

PG&E spokesperson Kristi Jourdan said in an email statement that the company was committed to keeping prices as low as possible as the state weighs income-based flat-fee utility bills proposals, and that although some programs are meant to be subsidized through rates, "in other cases, given that some customers have greater access to energy alternatives, the remaining customers - often those with limited means - are left paying unintended subsidies."

The costs quickly became overwhelming for Fretea Sylver, who rents a small house in Castro Valley and lost much of her work as the owner of a small woodwork business early in the pandemic. "They're little tiny changes but they accumulate. You turn around and you're like wait a second, why is my bill $20 more?," Sylver said. "And you have to pay it, no matter what."

Many more are unable to pay. Between February and December of last year, Californians accumulated more than $650 million in late payments from their utility providers, according to an analysis by the CPUC. In 2019, utility debt fell $71,646,869 from the prior year.

Sylver, who was on unemployment for 10 months last year, accumulated over $600 in unpaid PG&E bills. "We sort of went into a bit of debt, having to use credit cards and loans to sustain what we had to pay for. We're trying to catch up," Sylver said. The family received some help from the federal Low-Income Home Energy Assistance Program, which provides up to $1,000 to those who are late on their utility bills.

The study identified improvements to make California's power grid more equitable, such as income-based fixed electricity charges for the grid's cost that are based on income. Republican state senators this week called on the state to use federal relief money to forgive the billions Californians owe in utility debt, even as some lawmakers move to overturn income-based utility charges amid ongoing debate. Californians are currently protected by a statewide moratorium on disconnection for nonpayment of electricity bills through June 30. The CPUC this month began taking public input on the issue of how to grant some relief to those who have fallen behind on their utility bills.

This article is part of the California Divide, a collaboration among newsrooms examining income inequality and economic survival in California.

 

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