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Henry Craver's picture
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As a small business owner, I'm always trying to find ways to cut costs and boost the dependability of my services. To that end, I've become increasingly invested in learning about energy saving...

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  • Apr 15, 2021

Is there anything PG&E can do a this point to bring down costs?

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Bob Meinetz's picture
Bob Meinetz on Apr 15, 2021

"'When households adopt solar, they're not paying their fair share,' [economist Meredith] Fowlie said. 'While solar users generate power that decreases their bills, they still rely on the state's power grid that provides much of their 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, found of Next 10, which funds non-partisan research on the economy and environment."

Here are two alternative paths PG&E can take to bring down costs:

1) It PG&E doesn't want to run Diablo Canyon Power Plant, sell it. Entergy and PacifiCorp have expressed interest, and the plant has an estimated value of $5 billion - money that could help pay wildfire claims now being charged to customers (SB 1094). With savings of $3.5 billion in decommissioning costs, that's +$8.5 billion in customers' pockets. Or:

2) Keep the plant open. Supposedly-uneconomical Diablo Canyon generates dispatchable, clean electricity for 2.9¢/kWh - cheaper than either gas (3.8¢/kWh) or utility-scale renewables (5.5¢/kWh).

The time for California to get off its Krazy Renewable Roller Koaster is long overdue.

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