Pasadena Star News
By: Cynthia Kurtz
Published: 1/8/2015
The lower price of
gasoline has helped low and middle income consumers and given the economy a
shot in the arm. But gasoline isn’t the only fuel that keeps our state running.
Natural gas and electricity are also important. They heat our homes, cook our
food, and run our factories. The costs of these energy sources have the
potential for more dramatic impacts on the economy and job growth than the
price of gasoline.
Trying to get a
handle on the future prices for natural gas and electricity is a daunting task.
For starters, California’s energy resources are regulated by a host of state
agencies - California Air Resources Board, the California Independent System
Operator, Caltrans, CAL FIRE, the California Public Utilities Commission and
the California Energy Commissions.
Each of these
agencies is tasked with a specific set of responsibilities and a specific
mission. Each has rule-making authority and the ability to pass on the costs of
those rules to the entities being regulated, usually gas and electric
utilities. Those costs then become part of the future rates we all pay.
These regulations
and rules are intended to meet goals most of us support such as increased
conservation, reduced environmental impacts, or improved public health. But
between setting the goals and implementing the rules there is no one
responsible for considering how all these regulations work together, whether
they will assure that California has adequate energy supplies, and what will be
the cost.
Cost does matter. According
to a report by the Public Policy Institute of California, 76 percent of
California adults favored a law passed in 2011 that requires one-third of the
state’s electric power to come from renewable energy sources by 2020 as long as
electricity rates stayed the same. When respondents were told that the green
power might come with higher rates, the support dropped to 46 percent.
Based on a 2013
California Energy Commission Staff Report the cost for electricity could be as
much as 27.8 percent higher by 2020 and natural gas could be 108 percent
higher. Those estimates were based on no new rules after 2013 but the
Legislature is already looking at new 2050 goals for emission reductions.
Fortunately, there
is a coalition asking for a comprehensive review of the impacts of state energy
policies - Californians for Affordable & Reliable Energy (CARE).
Speaking for the
group, California Business Roundtable President, Robert Lapsley, recently told
a SGV audience that “although it does not receive the same attention as other
issues, energy policy is the most critical and potentially impactful
decision-making that is happening in state government. It will have lasting
impacts on the economy, income levels, poverty and the ability of the state to
generate adequate revenues to fund state priorities.”
CARE does not
oppose actions to protect the environment or public health but does believe
that California needs a comprehensive energy plan. According to the National
Association of State Energy Officials, 38 states have operational energy plans
and 22 are either updating their plans or developing new ones.
California public
policy is on the cutting edge in many ways but crafting a comprehensive state
energy plan must become a priority.
If you are
interested in learning more about CARE, visit CAREaboutEnergy.org.
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