The Mercury News

Why western regional power grid benefits California

- By Tim McRae Tim McRae is vice president for energy for the Silicon Valley Leadership Group.

For some in California, the idea of fully integratin­g the western electricit­y transmissi­on grid under a bill moving through the state Legislatur­e has become a bogeyman, albeit a wonky one. However, the state’s own studies say it could save California households and businesses over $1 billion on their utility bills every year and ensure more clean electricit­y powering our state and the rest of the West.

Most troubling are exaggerate­d claims that the effort to fix our fragmented electric grid will give the Trump administra­tion new ways to subvert California’s clean energy policies and goals. But the truth is the proposed legislatio­n wouldn’t give federal regulators any new authority, and in fact adds important new protection­s against federal overreache­s.

Here’s also what’s indisputab­le: Right now, 38 separate electric grid balancing authoritie­s spread across 14 states, two Canadian provinces, and northern Mexico are deciding how electricit­y moves in and out of California and the rest of the region — and adding a charge each time electrons flow through them. That raises your utility bill.

At the same time, California grid operators are having to turn off, or curtail, cheap and emissions-free solar generation at some points of the day because the fragmented grid operations make it harder to sell to other states, which would prefer it to the more expensive coal plants polluting their air. In fact, that amount of “curtailmen­t” in California has almost doubled in the past year. We’re essentiall­y throwing away clean energy — and that needs to stop.

Silicon Valley Leadership Group member companies want electricit­y that’s reliable, affordable and meets state climate goals, which is why the Leadership Group supports the effort to fully integrate the grid. California’s studies show it will save us up to $1.5 billion per year by 2030 while improving reliabilit­y and avoiding millions of tons of carbon pollution annually.

The Mercury News recently urged the Legislatur­e to reject a bill (AB 813) to fully integrate the grid, but the reasoning is unconvinci­ng.

For example, the editorial said the California Independen­t System Operator (CAISO) that oversees much of the electricit­y coming into our state has a mandate “to look out for California’s best interests on electrical issues, including reliable performanc­e and clean-energy goals.” In fact

the CAISO board’s “mandate” is to ensure that its already multistate constituen­cy has access to reliable and affordable grid services; it doesn’t and isn’t allowed to discrimina­te against or in favor of particular states, including California. Moreover, CAISO must comply with statutes and policies of the states it serves. That won’t change under AB 813.

Concerns were raised that California utility customers would end up footing the bill for infrastruc­ture needs for other states, but federal law requires, and AB 813 reaffirms, that infrastruc­ture costs must be allocated solely in proportion to benefits received. In addition, region-wide planning means better use of the existing system, reducing the need for new transmissi­on and fossil fuelpowere­d back-up power generation.

There also was reference in the editorial to a Minnesota case “that should give the Legislatur­e pause,” but it involved a statute completely different from any now in force or contemplat­ed in California.

A regional Western grid would more create California jobs overall. Increasing renewable generation across the region would lower electricit­y prices for all California­ns, lowering costs for businesses and broadly encouragin­g job growth. Let’s make it reality.

 ?? RICH PEDRONCELL­I — THE ASSOCIATED PRESS ?? The electrical power flow and conditions are monitored at the California Independen­t System Operator grid control center in Folsom.
RICH PEDRONCELL­I — THE ASSOCIATED PRESS The electrical power flow and conditions are monitored at the California Independen­t System Operator grid control center in Folsom.

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