Why western regional power grid benefits California
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.