Why are power bills so high?

[Chris McMillan]

Let's get a discussion started on why power bills are really so high, especially in CA. Here's a great article about how baked in profits are one of the reasons for high power bills:

"A portion of each payment goes directly in the pockets of shareholders. Called a “return on equity,” the amount is meant to compensate investor-owned utilities for the risk of doing business. It pays back shareholders for their investment in the companies and helps utilities maintain a higher credit rating to attract better loan rates for future projects."

One reason your power bill is high: Baked-in profits that critics call excessive​

 

[Patrick Cohen]

Here's one of the best explanations that I've seen -

A Former California Utility Exec Explains Why Your Electricity Bills Are So High​

Ellis also wrote an Op-Ed that is helpful in understanding that way too complicated issue..

I was a California energy strategist. Here’s how the state lets PG&E give you a raw deal​

 

[J_Davis]

seems to be a growing focuse on IOU profits, rising electricity bills and the potential public ownership of the IOUs. If done right, I think that could be a great solution to the mess California is in with solar ownership rights and climate goals.

Can Public Ownership Fix Our Electricity Woes? It’s Complicated​

 

[Phil Davidson]

following, and will be contributing...

 

[SolarPro415]

If you own enough solar for all of your power needs, you utility bill shouldn't be high -it should be close to zero.

 

[Patrick Cohen]

Recommend checking out this podcast: The Truth Behind California’s High Electric Bills — Episode 239 of Local Energy Rules​

 

[SolarPro415]

This week’s Energy Show, breaks down:

• Why your rates are rising 8-10% per year (and won’t stop anytime soon)
• How utilities are gaming the system with political donations and shady regulations
• What the Solar Rights Alliance wants you to know about this rigged game
• How rooftop solar + batteries can make you nearly energy independent
• Why PG&E hates when you install solar—and how to beat them at their own game
• Why now is the time to install solar—before summer spikes and tax credits disappear

Prepping For Higher Electricity Costs

 

[Phil Davidson]

I think the simplest answer to this question is that the IOUs dominate the Legislature and agencies in charge of regulating electric rates. According to the California Public Advocates Office, PG&E's electric rates have increased by 41% in the last 3 years and 101% in the last 10 years, surpassing inflation. Here's the source that cites this statistic although I'm sure this is also burried in regulatory filings somewhere: https://kmph.com/news/local/bill-to-rein-in-utility-price-hikes-advances-but-with-changes

 

[Jared_H]

The higher the utility bills, the better the economics for owning your own solar system. just saying...

 

[Patrick Cohen]

I think today's article in HeatMap is on point for this thread

How Electricity Got So Expensive​