California electricity rates to undergo biggest change in 15 years

California regulators radically revamped the way electricity rates work in the state, approving changes Friday that will raise monthly utility bills for the most energy-efficient homeowners while giving many bigger energy users a break.

The California Public Utilities Commission voted unanimously to narrow the gap between prices paid by people who use very little electricity and those who consume more. Over time, that gap has grown so wide that the most efficient Californians now pay less for electricity than the utilities spend supplying it to them.

California has long charged utility customers higher prices for using large amounts of electricity as a way to encourage conservation. And while the commission’s vote will benefit many homeowners who use more than average, the biggest energy “hogs” now will face a new penalty, a “super-user electric surcharge” designed to prod them to conserve.

In addition, most residential customers will soon pay different prices for electricity use at different times of day, with the highest prices likely hitting in the afternoon. The move, long studied by California officials, could reduce the strain on the state’s power grid when electricity demand reaches its daily, late-afternoon peak.

Shifting some electricity use to mid-day or the evening, in turn, could help the state integrate more solar and wind power into the energy mix. Solar power plants hit their maximum output just after noon, while California’s wind farms generate most of their electricity at night.

“The electricity industry is changing fast, and utility rates haven’t kept up with it,” said commission President Michael Picker. He said Friday that the utility commission needed to “make sure rates are reasonable and fair to all California utility customers.”

The changes will be phased in by 2019. They affect customers of Pacific Gas and Electric Co., Southern California Edison and San Diego Gas & Electric Co. — not the customers of municipal utilities such as those serving Sacramento or Los Angeles.

“We’re committed to helping our customers and their families understand the changes and the best ways they can be energy efficient and save money,” said Greg Snapper, spokesman for PG&E.

Via: SFGate

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Price of Electricity Hit Record for October; Up 42% in Decade

(CNSNews.com) - The price of electricity hit a record for the month of October, according to data released Wednesday by the Bureau of Labor Statistics. That made October the eleventh straight month when the average price of electricity hit or matched the record level for that month.

The average price of electricity in October was 13.2 cents per kilowatt hour (KWH), up from 12.8 cents per KWH in October 2012—and up from 9.3 cents per KWH in October 2003.

Americans now pay 42 percent more for electricity than they did a decade ago.

In November 2012, electricity was 12.7 cents per KWH, which was down from the 12.8 cents per KWH price of November 2011. But, in December 2012, the price of electricity stayed at 12.7 cents per KWH, matching the record monthly price of 12.7 cents per KWH that had been reached in December 2011.

In each of the ten months since then (January through October 2013), the price of electricity has hit a record level for that month.

Via: CNS News

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Report: More than 200 coal-fired generators slated for shutdown

Within the next three to five years, more than 200 coal-fired electric generating units will be shut down across 25 states due to EPA regulations and factors including cheap natural gas, according to a new report by the American Coalition for Clean Coal Electricity (ACCCE).

“This is further evidence that EPA is waging a war on coal, and a war on affordable electricity prices and jobs. EPA continues to ignore the damage that its new regulations are causing to the U.S. economy and to states that depend on coal for jobs and affordable electricity,” said Mike Duncan, president and CEO of ACCCE, in a statement.

However, ACCCE notes that EPA policies may have played a role more than 4,800 megawatts of announced closures not included on in their report which would bring total shutdowns to 241 coal generator in 30 states — more than 36,000 MW of electric generation or 11 percent of the U.S. coal fleet.

The most affected states include Ohio, Pennsylvania, West Virginia, Virginia, and North Carolina, which will see a combined 103 coal-fired generators shut down.

“Actually our utility rates are higher and the impact is such that it’s going to interfere with the quality of life that a lot of individuals have in my community,” said John McNeil, mayor of Red Springs, N.C., in an ACCCE video — one of the heavily affected states.

According to ACCCE, coal provides more than half of North Carolina’s power. Poorer areas, like Red Springs, where a number of residents are on fixed income or live below the poverty line, are adversely affected by higher electricity bills because they eat up a greater portion of their income.

“During my lifetime, Red Springs has gone through some fairly significant changes. We don’t have the large textile plants which provide employments opportunities for many people. We’ve just shifted away,” said John Roberts of John’s Fuel Service, also in Red Springs.

Via: The Daily Caller

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