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posted by CoolHand on Wednesday February 08 2017, @07:07PM   Printer-friendly
from the power-to-the-people dept.

Arthur T Knackerbracket has found the following story:

California has a big — and growing — glut of power, an investigation by the Los Angeles Times has found. The state's power plants are on track to be able to produce at least 21% more electricity than it needs by 2020, based on official estimates. And that doesn't even count the soaring production of electricity by rooftop solar panels that has added to the surplus.

[...] This translates into a staggering bill. Although California uses 2.6% less electricity annually from the power grid now than in 2008, residential and business customers together pay $6.8 billion more for power than they did then. The added cost to customers will total many billions of dollars over the next two decades, because regulators have approved higher rates for years to come so utilities can recoup the expense of building and maintaining the new plants, transmission lines and related equipment, even if their power isn't needed.

How this came about is a tale of what critics call misguided and inept decision-making by state utility regulators, who have ignored repeated warnings going back a decade about a looming power glut.

[...] California utilities are "constantly crying wolf that we're always short of power and have all this need," said Bill Powers, a San Diego-based engineer and consumer advocate who has filed repeated objections with regulators to try to stop the approval of new plants. They are needlessly trying to attain a level of reliability that is a worst-case "act of God standard," he said.

Even with the growing glut of electricity, consumer critics have found that it is difficult to block the [Public Utilities Commission] (PUC) from approving new ones.

In 2010, regulators considered a request by [Pacific Gas and Electric Co.] (PG&E) to build a $1.15-billion power plant in Contra Costa County east of San Francisco, over objections that there wasn't sufficient demand for its power. One skeptic was PUC commissioner Dian Grueneich. She warned that the plant wasn't needed and its construction would lead to higher electricity rates for consumers — on top of the 28% increase the PUC had allowed for PG&E over the previous five years.

[...] Recent efforts to get courts to block several other PUC-approved plants have failed, however, so the projects are moving forward.

-- submitted from IRC


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  • (Score: 3, Interesting) by Hawkwind on Wednesday February 08 2017, @11:33PM

    by Hawkwind (3531) on Wednesday February 08 2017, @11:33PM (#464814)
    The summary left out an important reason why this is happening. It's not to achieve some "god" standard but a mix of private and public gone awry. An example is the story's initial bit where a rather recent and high quality private power plant has been shut down due to the local electric group (Pacific Gas & Electric, PG&E) building a like plant nearby. The reason cited is guaranteed rate of return for PG&E. Below are a couple of interesting quotes.

    The missteps of regulators have been compounded by the self-interest of California utilities, Lynch and other critics contend. Utilities are typically guaranteed a rate of return of about 10.5% for the cost of each new plant regardless of need.

    Critics agree that some excess capacity is needed. And, in fact, state regulations require a 15% cushion. California surpasses that mark and is on pace to exceed it by 6 percentage points in the next three years, according to the Western Electricity Coordinating Council, which tracks capacity and reliability. In the past, the group has estimated the surplus would be even higher.
     
    Even the 15% goal is “pretty rich,” said Robert McCullough of Oregon-based McCullough Research, who has studied California’s excess electric capacity for both utilities and regulators. “Traditionally, 10% is just fine. Below 7% is white knuckle. We are a long way from white-knuckle time” in California.

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