ItÂ’s a common complaint: we'd like to be greener, but the cost is exorbitant.
When it comes to plug-in hybrids and all-electric cars, it's an argument that has some justification – largely because of the cost of the powerful lithium-ion batteries they run on. So how can we reduce the cost of batteries without curtailing their performance?
Let's rule out just waiting: battery costs are expected to fall, but not fast enough to bring electric cars into the mainstream. But there may be a way for batteries to offset their cost by earning some money for their owners.
Some electricity utility companies and car makers are investigating the possibility of using electric cars to store power for the grid when they are in the garage, with some form of financial incentive for the car owner. But all the additional discharging and charging would shorten the life of the battery – and if you've just paid out $40,000 on an electric car, that may not appeal.
There may be a more palatable version of this so-called vehicle-to-grid idea. Used lithium-ion batteries that no longer hold charge well enough to power a car could provide electricity storage for the grid, says Sankar Das Gupta at battery maker Electrovaya, based in Mississauga, Ontario, Canada.
Currently the car industry considers a battery to have reached the end of its life when repeat use means it can only be charged to 80 per cent of its original capacity. That would still be perfectly acceptable for grid-scale storage, says Das Gupta.
His company is involved in a project with partners including Eric Bibeau at the University of Manitoba in Winnipeg, Canada, in which they will combine used lithium-ion batteries from demonstration vehicles to build a 150 kilowatt-hour prototype storage system and monitor how it performs when connected to the grid.
With hopes for future energy supply pinned on intermittent sources of electricity generation such as wind and solar power, it has become more important to be able to store electricity. These sources cannot be turned on or off to match demand, so only storage can ensure that over-capacity is not wasted, and that the power stays on when the wind stops blowing and the sun sets. Utilities and researchers are already investigating a range of ways to solve this dilemma, including flywheels and compressed air.
So using second-hand lithium-ion car batteries would kill two birds with one stone, says Brett Williams at the Transportation Sustainability Research Center at the University of California, Berkeley: helping car owners recoup some of the expense of their vehicle's battery, while simultaneously benefiting producers of renewable energy.
These repurposed batteries are likely to appeal more to energy companies than leasing time on ones still housed in a car, says Williams. "The stationary device can commit to be connected and available throughout the day," he says.
BC Hydro Rate Increase proposes a 2.3% hike from April, with BCUC review, aligning below inflation and funding clean energy, electrification, and grid upgrades across British Columbia while keeping electricity prices among North America's lowest.
Key Points
A proposed 2.3% BC Hydro hike from April, under BCUC review, funds clean energy and keeps average bills below inflation.
✅ Adds about $2 per month to average residential bill
✅ Sixth straight increase below inflation since 2018
✅ Supports renewable projects and grid modernization
The British Columbia government says the province’s Crown power utility is applying for a 2.3-per-cent rate increase starting in April, with higher BC Hydro rates previously outlined, adding about $2 a month to the average residential bill.
A statement from the Energy Ministry says it’s the sixth year in a row that BC Hydro has applied for an increase below the rate of inflation, similar to a 3 per cent rise noted in a separate approval, which still trailed inflation.
It says rates are currently 15.6 per cent lower than the cumulative rate of inflation over the last seven years, starting in 2017-2018, with a provincial rate freeze among past measures, and 12.4 per cent lower than the 10-year rates plan established by the previous government in 2013.
The ministry says the “modest” rate increase application comes after consideration of a variety of options and their long-term impacts, including scenarios like a 3.75% two-year path evaluated alongside others, and the B.C. Utilities Commission is expected to decide on the plan by the end of February.
Chris O’Riley, president of BC Hydro, says the rates application would keep electricity costs in the province among the lowest in North America, even as a BC Hydro fund surplus prompted calls for changes, while supporting investments in clean energy to power vehicles, homes and businesses.
Energy Minister Josie Osborne says it’s more important than ever to keep electricity bills down, especially as Ontario hydro rates increase in a separate jurisdiction, as the cost of living rises at rates that are unsustainable for many.
“Affordable, stable BC Hydro rates are good for people, businesses and climate as we work together to power our growing economy with renewable energy instead of fossil fuels,” Osborne says in a statement issued Monday.
Earlier this year, the ministry said BC Hydro provided $315 million in cost-of-living bill credits, while in another province Manitoba Hydro scaled back an increase to ease pressure, to families and small businesses in the province, including those who receive their electricity service from FortisBC or a municipal utility.
NERC COVID-19 Grid Security Alert urges utilities to update business continuity plans, assess supply chain risk, and harden cybersecurity against spearphishing, social engineering, and remote-work vulnerabilities to protect the U.S. power grid and critical infrastructure.
Key Points
A notice urging U.S. utilities to fortify pandemic continuity, secure supply chains, and enhance cybersecurity.
✅ Mandates updates to business continuity and pandemic readiness plans
✅ Flags supply chain risks for PPE, electronics, chemicals, and logistics
✅ Warns of spearphishing, social engineering, VPN and remote-work threats
The top U.S. grid security monitor urged power utilities to prepare for the new coronavirus in a rare alert yesterday, adding to a chorus of warnings from federal and private organizations.
The North American Electric Reliability Corp. called for power providers to update business continuity plans in case of a pandemic outbreak and weigh the need to prioritize construction or maintenance projects, including updates on major projects like BC Hydro's Site C, while the COVID-19 virus continues to spread.
NERC is requiring electric utilities to answer questions on their readiness for a possible pandemic, including potential staffing strategies such as on-site sequestering, by March 20, an unusual step that underscores the severity of the threat to U.S. power systems.
The Electricity Information Sharing and Analysis Center, NERC's hub for getting the word out on dangers and vulnerabilities for the grid, also sent out an "all-points bulletin" on Feb. 5 addressing the coronavirus outbreak. That nonpublic document covered "potential supply chain issues stemming from a manufacturing slowdown in Asia," NERC spokeswoman Kimberly Mielcarek said.
Among offering basic hygiene and awareness recommendations, NERC's latest alert also encourages utilities to take stock of resources with supply chains affected by the virus. Because "China and nearby southeast Asian nations" have been impacted, NERC said, the supply chain hits will likely include "electronics, personal protective equipment and sanitation supplies, chemicals, and raw materials." The nonprofit grid overseer also warned of global transportation disruptions.
NERC also recommended utilities be on the lookout for cyberattacks taking advantage of the panic and using "coronavirus-themed opportunistic social engineering attacks" to hack into power companies' networks. Social engineering attacks are when hackers use social interactions to manipulate targets into giving up sensitive information.
"Spearphishing, watering hole, and other disinformation tactics are commonly used to exploit public interest in significant events," the alert said.
Electric utility representatives said they're working on or have already completed some of the steps outlined in NERC's alert, though nuclear plant workers have cited a lack of precautions in some cases.
"At this point, many of our members are activating and/or reviewing their business continuity and preparedness plans to ensure that operations and infrastructure are properly supported," said Tobias Sellier, director of media relations for the American Public Power Association, which represents around 1,400 electric utilities.
The power providers are also collaborating with other utilities such as "water, wastewater and gas," Sellier said.
Stephen Bell, senior director of media and public relations at the National Rural Electric Cooperative Association, said his group's members "have already taken a number of steps recommended by NERC" while continuing to maintain operations.
"Co-ops continue working with local, state and federal stakeholders to remain vigilant and prepared. These preparations include more frequent communications to key stakeholders, updating business continuity plans and monitoring new information from public health officials," said Bell.
Last week the Electricity Subsector Coordinating Council (ESCC), a panel of government and industry officials charged with responding to power-sector emergencies, scheduled a conference call discussing how to protect the grid from disruption if the virus infects system operators. Ohio-based utility American Electric Power Co. said it is limiting public visits, has created a high-level response team and is working to ensure operations can continue, while reinforcing downed power line safety, if the virus keeps spreading (Energywire, March 6).
Scott Aaronson, vice president for security and preparedness of the Edison Electric Institute, which represents major investor-owned utilities, said that the electric sector practices "contingency planning" to deal with unusual situations such as the coronavirus. That means that while the type of emergency may be new, dealing with an emergency situation is not, he said. Aaronson added that many of NERC's recommendations are based on what companies are already doing.
"We have heightened awareness given the circumstances, and we have messaging to employees all the way up and down the chain — from CEOs to frontline workers — that: given this time of heightened awareness and potential vulnerability, we have to practice hygiene both of the personal and cyber variety," said Aaronson.
Aaronson said that the ESCC had another call this week with the departments of Energy and Homeland Security and the Centers for Disease Control and Prevention to stay on top of the issue.
Hacking concerns In a cybersecurity event yesterday, Lisa Monaco, co-chair of the Aspen Cybersecurity Group and former homeland security adviser during the Obama administration, warned that the coronavirus should be considered a national security threat.
"Frankly, [pandemic] is the thing that kept me up at night amongst many, many things that kept me up at night for four years in the White House," Monaco said.
Monaco went on to say the virus will strain organizations' IT infrastructure as more employees work remotely and households face higher electricity bills, and lead to "potentially more vulnerabilities for bad actors when it comes to cybersecurity."
On Friday, the DHS's Cybersecurity and Infrastructure Security Agency released advice on steps that can be taken to lessen the virus's impact on supply chains and cybersecurity, as well as tips for defending against scams exploiting coronavirus fears.
Cybersecurity firms also have been reporting a dramatic increase in spear-phishing attacks, with hackers reportedly using the coronavirus topic as a lure to trick victims into clicking a malicious link. Whether it's hackers aiming at industries susceptible to shipping disruptions, attacking countries like Italy hit particularly hard by the virus or even masquerading as the World Health Organization, cybercriminals are taking full advantage of the crisis, experts say.
Greg Young, vice president of cybersecurity at Trend Micro, said businesses should continue to expect an increase in targeted phishing attacks.
"With a large majority of businesses switching to a work-from-home model and less emphasis on in-person meetings, we also anticipate that malicious actors will start to impersonate digital tools such as 'free' remote conferencing services and other cloud computing software," said Young.
Working from home can be especially risky, as often home networks are less secure than corporate offices, Young said — meaning a hacker aiming to get into an enterprise network could find an "easier attack path" from a home office.
The Department of Energy is asking employees to make sure they can work remotely when needed, even as some agencies set limits with EPA telework policy, including updating security questions and asking those with government-furnished laptops to be sure they have a VPN, or virtual private network, account. In a post added this week to the agency's website, Chief Information Officer Rocky Campione said the department over the next two weeks will be initiating steps to ensure there is adequate network capacity to carry out DOE's work.
"Ensuring the continued operations of the department's many varied missions requires diligence," Campione said.
ITER Nuclear Fusion advances tokamak magnetic confinement, heating deuterium-tritium plasma with superconducting magnets, targeting net energy gain, tritium breeding, and steam-turbine power, while complementing laser inertial confinement milestones for grid-scale electricity and 2025 startup goals.
Key Points
ITER Nuclear Fusion is a tokamak project confining D-T plasma with magnets to achieve net energy gain and clean power.
✅ Tokamak magnetic confinement with high-temp superconducting coils
✅ Deuterium-tritium fuel cycle with on-site tritium breeding
✅ Targets net energy gain and grid-scale, low-carbon electricity
It sounds like the stuff of dreams: a virtually limitless source of energy that doesn’t produce greenhouse gases or radioactive waste. That’s the promise of nuclear fusion, often described as the holy grail of clean energy by proponents, which for decades has been nothing more than a fantasy due to insurmountable technical challenges. But things are heating up in what has turned into a race to create what amounts to an artificial sun here on Earth, one that can provide power for our kettles, cars and light bulbs.
Today’s nuclear power plants create electricity through nuclear fission, in which atoms are split, with next-gen nuclear power exploring smaller, cheaper, safer designs that remain distinct from fusion. Nuclear fusion however, involves combining atomic nuclei to release energy. It’s the same reaction that’s taking place at the Sun’s core. But overcoming the natural repulsion between atomic nuclei and maintaining the right conditions for fusion to occur isn’t straightforward. And doing so in a way that produces more energy than the reaction consumes has been beyond the grasp of the finest minds in physics for decades.
But perhaps not for much longer. Some major technical challenges have been overcome in the past few years and governments around the world have been pouring money into fusion power research as part of a broader green industrial revolution under way in several regions. There are also over 20 private ventures in the UK, US, Europe, China and Australia vying to be the first to make fusion energy production a reality.
“People are saying, ‘If it really is the ultimate solution, let’s find out whether it works or not,’” says Dr Tim Luce, head of science and operation at the International Thermonuclear Experimental Reactor (ITER), being built in southeast France. ITER is the biggest throw of the fusion dice yet.
Its $22bn (£15.9bn) build cost is being met by the governments of two-thirds of the world’s population, including the EU, the US, China and Russia, at a time when Europe is losing nuclear power and needs energy, and when it’s fired up in 2025 it’ll be the world’s largest fusion reactor. If it works, ITER will transform fusion power from being the stuff of dreams into a viable energy source.
Constructing a nuclear fusion reactor ITER will be a tokamak reactor – thought to be the best hope for fusion power. Inside a tokamak, a gas, often a hydrogen isotope called deuterium, is subjected to intense heat and pressure, forcing electrons out of the atoms. This creates a plasma – a superheated, ionised gas – that has to be contained by intense magnetic fields.
The containment is vital, as no material on Earth could withstand the intense heat (100,000,000°C and above) that the plasma has to reach so that fusion can begin. It’s close to 10 times the heat at the Sun’s core, and temperatures like that are needed in a tokamak because the gravitational pressure within the Sun can’t be recreated.
When atomic nuclei do start to fuse, vast amounts of energy are released. While the experimental reactors currently in operation release that energy as heat, in a fusion reactor power plant, the heat would be used to produce steam that would drive turbines to generate electricity, even as some envision nuclear beyond electricity for industrial heat and fuels.
Tokamaks aren’t the only fusion reactors being tried. Another type of reactor uses lasers to heat and compress a hydrogen fuel to initiate fusion. In August 2021, one such device at the National Ignition Facility, at the Lawrence Livermore National Laboratory in California, generated 1.35 megajoules of energy. This record-breaking figure brings fusion power a step closer to net energy gain, but most hopes are still pinned on tokamak reactors rather than lasers.
In June 2021, China’s Experimental Advanced Superconducting Tokamak (EAST) reactor maintained a plasma for 101 seconds at 120,000,000°C. Before that, the record was 20 seconds. Ultimately, a fusion reactor would need to sustain the plasma indefinitely – or at least for eight-hour ‘pulses’ during periods of peak electricity demand.
A real game-changer for tokamaks has been the magnets used to produce the magnetic field. “We know how to make magnets that generate a very high magnetic field from copper or other kinds of metal, but you would pay a fortune for the electricity. It wouldn’t be a net energy gain from the plant,” says Luce.
One route for nuclear fusion is to use atoms of deuterium and tritium, both isotopes of hydrogen. They fuse under incredible heat and pressure, and the resulting products release energy as heat
The solution is to use high-temperature, superconducting magnets made from superconducting wire, or ‘tape’, that has no electrical resistance. These magnets can create intense magnetic fields and don’t lose energy as heat.
“High temperature superconductivity has been known about for 35 years. But the manufacturing capability to make tape in the lengths that would be required to make a reasonable fusion coil has just recently been developed,” says Luce. One of ITER’s magnets, the central solenoid, will produce a field of 13 tesla – 280,000 times Earth’s magnetic field.
The inner walls of ITER’s vacuum vessel, where the fusion will occur, will be lined with beryllium, a metal that won’t contaminate the plasma much if they touch. At the bottom is the divertor that will keep the temperature inside the reactor under control.
“The heat load on the divertor can be as large as in a rocket nozzle,” says Luce. “Rocket nozzles work because you can get into orbit within minutes and in space it’s really cold.” In a fusion reactor, a divertor would need to withstand this heat indefinitely and at ITER they’ll be testing one made out of tungsten.
Meanwhile, in the US, the National Spherical Torus Experiment – Upgrade (NSTX-U) fusion reactor will be fired up in the autumn of 2022, while efforts in advanced fission such as a mini-reactor design are also progressing. One of its priorities will be to see whether lining the reactor with lithium helps to keep the plasma stable.
Choosing a fuel Instead of just using deuterium as the fusion fuel, ITER will use deuterium mixed with tritium, another hydrogen isotope. The deuterium-tritium blend offers the best chance of getting significantly more power out than is put in. Proponents of fusion power say one reason the technology is safe is that the fuel needs to be constantly fed into the reactor to keep fusion happening, making a runaway reaction impossible.
Deuterium can be extracted from seawater, so there’s a virtually limitless supply of it. But only 20kg of tritium are thought to exist worldwide, so fusion power plants will have to produce it (ITER will develop technology to ‘breed’ tritium). While some radioactive waste will be produced in a fusion plant, it’ll have a lifetime of around 100 years, rather than the thousands of years from fission.
At the time of writing in September, researchers at the Joint European Torus (JET) fusion reactor in Oxfordshire were due to start their deuterium-tritium fusion reactions. “JET will help ITER prepare a choice of machine parameters to optimise the fusion power,” says Dr Joelle Mailloux, one of the scientific programme leaders at JET. These parameters will include finding the best combination of deuterium and tritium, and establishing how the current is increased in the magnets before fusion starts.
The groundwork laid down at JET should accelerate ITER’s efforts to accomplish net energy gain. ITER will produce ‘first plasma’ in December 2025 and be cranked up to full power over the following decade. Its plasma temperature will reach 150,000,000°C and its target is to produce 500 megawatts of fusion power for every 50 megawatts of input heating power.
“If ITER is successful, it’ll eliminate most, if not all, doubts about the science and liberate money for technology development,” says Luce. That technology development will be demonstration fusion power plants that actually produce electricity, where advanced reactors can build on decades of expertise. “ITER is opening the door and saying, yeah, this works – the science is there.”
Manitoba Crypto Mining Electricity Pause signals a moratorium to manage grid strain, Manitoba Hydro capacity, infrastructure costs, and electricity rates, while policymakers evaluate sustainable energy demand, and planning for data centers and blockchain operations.
Key Points
A temporary halt on mining power hookups in Manitoba to assess grid impacts, protect rates, and plan sustainable use.
✅ Applies only to new service requests; existing sites unaffected
✅ Enables review with Manitoba Hydro for sustainable policy
The Manitoba government has temporarily suspended approving new electricity service connections for cryptocurrency mining operations, a step similar to BC Hydro's suspension seen in a neighboring province.
The Original Pause
The pause was initially imposed in November 2022 due to concerns that the rapid influx of cryptocurrency mining operations could place significant strain on the province's electrical grid. Manitoba Hydro, the province's primary electric utility, which has also faced legal scrutiny in the Sycamore Energy lawsuit, warned that unregulated expansion of the industry could necessitate billions of dollars in infrastructure investments, potentially driving up electricity rates for Manitobans.
The Extended Pause Offers Time for Review
The extension of the pause is meant to provide the government and Manitoba Hydro with more time to assess the situation thoroughly and develop a long-term solution addressing the challenges and opportunities presented by cryptocurrency mining, including evaluating emerging options such as modular nuclear reactors that other jurisdictions are studying. The government has stated its commitment to ensuring that the long-term impacts of the industry are understood and don't unintentionally harm other electricity customers.
What Does the Pause Mean?
The pause does not affect existing cryptocurrency operations but prevents the establishment of new ones. It applies specifically to requests for electricity service that haven't yet resulted in agreements to construct infrastructure or supply electricity, and it comes amid regional policy shifts like Alberta ending its renewable moratorium that also affect grid planning.
Concerns About Energy Demands
Cryptocurrency mining involves running high-powered computers around the clock to solve complex mathematical problems. This process is incredibly energy-intensive. Globally, the energy consumption of cryptocurrency networks has drawn scrutiny for its environmental impact, with examples such as Iceland's mining power use illustrating the scale. In Manitoba, concern focuses on potentially straining the electrical grid and making it difficult for Manitoba Hydro to plan for future growth.
Other Jurisdictions Taking Similar Steps
Manitoba is not alone in its cautionary approach to cryptocurrency mining. Several other regions and utilities have implemented restrictions or are exploring limitations on how cryptocurrency miners can access electricity, including moves by Russia to ban mining amid power deficits. This reflects a growing awareness among policymakers about the potentially destabilizing impact this industry could have on power grids and electricity markets.
Finding a Sustainable Path Forward
Manitoba Hydro has stated that it is open to working with cryptocurrency operations but emphasizes the need to do so in a way that protects existing ratepayers and ensures a stable and reliable electricity system for all Manitobans, while recognizing market uncertainties highlighted by Alberta wind project challenges in a neighboring province. The government's extension of the pause signifies its intention to find a responsible path forward, balancing the potential for economic development with the necessity of safeguarding the province's power supply.
✅ Stronger oversight sought to curb waste and boost transparency.
California residents and consumer groups are demanding relief as their electricity bills continue to climb, putting increasing pressure on state regulators to intervene. A recent op-ed in the San Francisco Chronicle highlights the growing frustration, emphasizing that California already has some of the highest electricity rates in the country, as coverage on why prices are soaring underscores, and these costs are only getting more burdensome.
Factors Driving High Bills
The rising electricity bills are attributed to several factors:
Wildfire Mitigation and Liability: Utility companies are investing heavily in wildfire prevention measures, such as vegetation management and infrastructure hardening. The costs of these initiatives, along with the increasing financial liabilities associated with wildfire risk, are being passed on to consumers.
Transmission Costs: California's vast geography and move towards renewable energy sources necessitate significant investments in transmission lines to deliver electricity from remote locations. These infrastructure costs also contribute to higher bills.
Aging Infrastructure: California's electricity grid is aging and requires upgrades and maintenance, and the expenses associated with these efforts are reflected in consumer rates.
Proposed Solutions and Debates
Consumer advocates and some lawmakers are calling for various actions to address the issue, including a potential revamp of electricity rates to clean the grid:
Fixed Charge Proposal: The California Public Utilities Commission (CPUC) is considering a proposal to introduce an income-based fixed charge on electricity bills. This change aims to make rates more predictable and encourage investment in renewable energy sources. However, opponents argue that it could disproportionately impact low-income households and discourage conservation.
Utility Profit Caps: Some advocate for capping utility companies' profits. They believe excessive profits should be returned to customers in the form of lower rates. However, utility companies counter that they need a certain level of profit to invest in infrastructure and maintain a reliable grid.
Increased Oversight: Consumer groups are calling for stricter oversight of utility company spending, and legislators are preparing to crack down on utility spending through upcoming votes as well. They demand transparency and want to ensure that funds collected from customers are being used for necessary investments and not for lobbying or excessive executive compensation.
Comparisons and National Implications
Similar concerns about rising utility bills are emerging in other parts of the country as more states transition to renewable energy and invest in infrastructure upgrades.
A report by the Energy Information Administration (EIA) shows that average residential electricity rates across the country have been on the rise for the past decade. While California currently ranks amongst the highest, major changes to electric bills are being debated, and other states are following suit, demonstrating the nationwide challenge of balancing affordability with necessary investments.
Uncertain Future
The California Public Utilities Commission is reviewing the fixed charge proposal and is expected to make a decision later this year, with income-based flat-fee utility bills moving closer in the process. The outcome of this decision and potential additional regulatory changes will have significant ramifications for California residents, and some lawmakers plan to overturn income-based charges if adopted, which could set a precedent for how other states handle the rising costs associated with the energy transition.
California Income-Based Utility Fees would overhaul electricity bills as CPUC weighs fixed charges tied to income, grid maintenance costs, AB 205 changes, and per-kilowatt-hour rates, shifting from pure usage pricing to hybrid utility rate design.
Key Points
Income-based utility fees are fixed monthly charges tied to earnings, alongside per-kWh rates, to help fund grid costs.
✅ CPUC considers fixed charges by income under AB 205
✅ Separates grid costs from per-kWh energy charges
✅ Could shift rooftop solar and EV charging economics
Electricity bills in California are likely to change dramatically in 2026, with major changes under discussion statewide.
The California Public Utilities Commission (CPUC) is in the midst of an unprecedented overhaul of the way most of the state’s residents pay for electricity, as it considers revamping electricity rates to meet grid and climate goals.
Utility bills currently rely on a use-more pay-more system, where bills are directly tied to how much electricity a resident consumes, a setup that helps explain why prices are soaring for many households.
California lawmakers are asking regulators to take a different approach, and some are preparing to crack down on utility spending as oversight intensifies. Some of the bill will pay for the kilowatt hours a customer uses and a monthly fixed fee will help pay for expenses to maintain the electric grid: the poles, the substations, the batteries, and the wires that bring power to people’s homes.
The adjustments to the state’s public utility code, section 739.9, came about because of changes written into a sweeping energy bill passed last summer, AB 205, though some lawmakers now aim to overturn income-based charges in subsequent measures.
A stroke of a pen, a legislative vote, and the governor’s signature created a move toward unprecedented income-based fixed charges across the state.
“This was put in at the last minute,” said Ahmad Faruqui, a California economist with a long professional background in utility rates. “Nobody even knew it was happening. It was not debated on the floor of the assembly where it was supposedly passed. Of course, the governor signed it.”
Faruqui wonders who was responsible for legislation that was added to the energy bill during the budget writing process. That process is not transparent.
“It’s a very small clause in a very long bill, which is mostly about other issues,” Faruqui said.
But that small adjustment could have a massive impact on California residents, because it links the size of a monthly flat fee for utility service to a resident’s income. Earn more money and pay a higher flat fee.
That fee must be paid even before customers are charged for how much power they draw.
Regulators interpreted legislative change as a mandate, but Faruqui is not sold.
“They said the commission may consider or should consider,” Faruqui said. “They didn’t mandate it. It’s worth re-reading it.”
In fact, the legislative language says the commission “may” adopt income-based flat fees for utilities. It does not say the commission “should” adopt them.
Nevertheless, the CPUC has already requested and received nine proposals for how a flat fee should be implemented, as regulators face calls for action amid soaring electricity bills.
The suggestions came from consumer groups, environmentalists, the solar industry and utilities.
