American Petroleum Institute President and CEO Mike Sommers weighed in on Biden's recent oil and gas drilling ban and the administration's ban on some natural gas water heaters.
Electricity prices in California have risen significantly in the past few years, which officials say is in part because of that Green Energy Policy Pushing across the state.
The Legislative Analyst's Office (LAO) released a new report on monthly electricity rates for residential customers In California Since 2019, the average has increased by about 50%.
“In general, average residential electricity rates in California have increased faster than inflation in recent years, increasing by about 47% over the four-year period from 2019 to 2023, compared to an overall increase in prices of about 18%,” the report said.
According to the LAO, some of the main contributing factors to the price increase resulted from the state's “ambitious” greenhouse gas reduction targets and taxpayer-funded green energy programs.
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California has reportedly seen the second highest electricity bills in the nation. (istock)
The California Renewable Portfolio Standard (RPS) requires that by 2030, 60% of the electricity supplier's portfolio must come from renewable energy resources, which the report found increased electric costs for ratepayers.
The RPS requirement resulted in a 5% increase in overall retail rates for customers of investor-owned utilities (IOUs) – such as PG&E, San Diego Gas & Electric and Southern California Edison.
Californians are also seeing energy costs rise as a result of programs that use their tax dollars to fund the state's accelerated transition to clean energy, such as building more charging stations for zero-emission vehicles.
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The report also noted that while California has met near-future greenhouse gas emission reduction targets, “the level of reductions required to reach subsequent targets is far greater.”
A driver plugs into a Tesla electric car for charging at a Tesla Supercharger location on May 15, 2024 in Santa Monica, California. (Patrick T. Fallon/Getty Images)
One of the next targets mentioned in the report is AB 1279, signed by Gov. Gavin Newsom in 2022, which 85% of the state Greenhouse gas emissions brought down below 1990 by 2045.
As a result, California has the second-highest energy prices in the country, with Hawaii first, LAO found. “On average, residential electricity rates in California are close to double those in the rest of the country,” the report said.
It also noted that low-income customers in the state who participate in the California Alternate Rate for Energy pay “significantly discounted rates” about 30 to 35% lower than other residents.
Govt. Gavin Newsom speaks at a press conference where he signed the Oil and Gas Well Oversight and Community Protection Act, Wednesday, Sept. 25, 2024, in Los Angeles. (Jason Armond/Los Angeles Times via Getty Images/Getty Images)
“The state's efforts to reduce its GHG emissions have helped establish California as a leader in climate policy and contributed to environmental benefits such as improved air quality. However, these efforts have come with costs, some of which have increased electricity rates,” the report reads.
“We think the state's GHG reduction efforts have contributed significantly to the state's high electricity rates, but they are certainly not the only cause,” LAO wrote.
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Other reasons for increased costs identified in the report include trade-offs related to higher wildfire-related costs and fixed charges for IOUs.