Energy Exchange

California’s disadvantaged communities could benefit from time-of-use electricity prices, but it won’t happen automatically.

By EDF Blogs / Published: February 26, 2018

By Lauren Navarro, senior policy manager, and Jamie Fine, senior economist

It’s no secret that California is a clean energy leader. The state is on track to meet its renewable energy goals, with many utilities hitting targets ahead of schedule. In order to transition to a system that can handle increased levels of clean energy like solar and wind, we need innovative solutions to take advantage of these resources. One low-cost solution is to change how we pay for electricity – making it cheaper when it is powered by clean resources and more expensive when powered by fossil fuels with time-of-use pricing. Utilities are on their way to bringing this to Californians, piloting the new rates in advance of a full rollout in 2019 and building on the successful rollout of these rates to commercial customers a few years ago.

For many Californians, the shift to time-of-use pricing will be new, but not impact their bills very much and could even save them money, particularly for people who live along the coast. However, for some customers – communities with lower incomes in hotter areas of the state that are more vulnerable to possible summertime bill increases – shifting when they use electricity can be harder, and without help their costs could increase. Rightly, lawmakers and regulators have pushed for extra attention for these vulnerable customers as the state moves toward time-of-use rates. While utilities acknowledge this discrepancy as an issue, none are offering sufficient, robust solutions (you can learn more about this in our recent blog).

A new bill introduced last week by California Assemblymember Joaquin Arambula would add that utilities must consider how time-of-use rates could impact low-income customers in disadvantaged communities before putting them on the new rates. It is vital to protect the most economically and environmentally vulnerable Californians from financial hardships. And the answer is not easy. All Californians stand to benefit from rates that could lower pollution and integrate more renewables – yet, we don’t want to heedlessly roll-out the rates in a way that results in higher electricity bills for customers with low incomes. Read More »

Also posted in California, Clean Energy, Demand Response, Electricity Pricing, Energy Efficiency, Energy Equity, General, Time of Use / Comments are closed

Pollution monitors should be standard in LA’s oilfields

By Tim O'Connor / Published: February 6, 2018

There are several reasons to be optimistic about environmental progress in Los Angeles. The city is making massive investments in electric vehicles, making clean energy more accessible to everyday people, and cutting pollution from the ports and freeways to name a few. But with over 60,000 Angelinos living less than 500 feet from an active oil well – LA could do more to protect our health and our environment.

Oil and gas wells emit toxic chemicals that can increase our risk of developing asthma, cancer and other health problems. Recent studies by the California Air Resources Board and South Coast Air Quality Management District have uncovered elevated levels of benzene, a cancer causing agent, and other toxic compounds coming from oil and gas equipment in Huntington Beach and Signal Hill. In Santa Fe Springs a rupture at an oil site coated numerous homes with oil and generated noxious odors. Then there are the communities in Culver City, South LA, Compton and elsewhere living mere feet from drill sites who experience odors and health ailments on a regular basis. Most notoriously, the Porter Ranch community next to the Aliso Canyon gas field still reports respiratory problems and other symptoms stemming from a major gas leak in 2015.

Also posted in Air Quality, Aliso Canyon, California, Methane, Natural Gas / Comments are closed

Utilities planning to move Californians to time-of-use pricing need solutions for low-income customers

By EDF Blogs / Published: January 30, 2018

By Andy Bilich, clean energy analyst, and Jamie Fine, senior economist

Last month, all three of California’s major investor-owned utilities submitted applications to the California Public Utilities Commission detailing their respective strategies for how to transition residential customers to time-of-use pricing. Time-of-use pricing, if done right, is a low-cost strategy to help meet California’s climate and clean energy goals. This innovative tool can help the state rely more on clean energy and less on fossil fuels, at the same time delaying the need for new infrastructure and reducing costs and harmful emissions. While a significant number of Californians will be able to adapt to this new pricing, the shift this summer and next will likely be more challenging for some ─ namely, low-income customers in hot areas of the state.

Environmental Defense Fund (EDF) supports time-of-use pricing for its benefits to the environment, the electric system, and customer’s pockets. However, the utility plans have some troubling gaps that may prevent the new system working for everyone. For California to pioneer a clean economy for all, the utilities and the commission must proactively overcome barriers facing vulnerable customers who need more help adjusting to time-of-use rates. Read More »

Also posted in California, Electricity Pricing, Time of Use / Read 2 Responses

New federal tax law is a boon for electric utilities – another reason not to bail out Ohio’s coal and nuclear plants

By John Finnigan / Published: January 29, 2018

BLOG UPDATE – FEBRUARY 16, 2018

Environmental Defense Fund and other environmental groups submitted comments [PDF] to the Public Utilities Commission of Ohio on the federal tax reform, and why the Commission should reconsider utilities’ requests to increase rates to help prop up their old coal and nuclear plants. The groups suggest the utilities should pass the savings back to customers and, in addition, consider using some of the funds to modernize the electric grid and benefit customers.

For the past few years, Ohio’s electric utilities have asked state lawmakers and the Public Utilities Commission of Ohio (PUCO) to bail out their old coal and nuclear plants. The storyline is, the power plants are losing money in the competitive wholesale market, so the utilities want customers to subsidize the losses and allow the plants to stay open.

To keep old plants running is throwing good money after bad. And the new federal tax law will give utilities a huge bonanza anyway, so the requested subsidies are even more unnecessary.

Tax breaks and bailouts

The new federal tax law is a jackpot for electric utilities. Congress passed the Tax Cuts and Jobs Act in late December, reducing the corporate income tax rate from 35 percent to 21 percent. For the regulated businesses, the tax cut should benefit customers via lower electricity bills. But for the utilities’ unregulated businesses, the tax cut will benefit the utilities’ shareholders. Read More »

Also posted in FirstEnergy, Ohio / Read 3 Responses

Texans for Natural Gas uses misleading data on methane in Texas

By Colin Leyden / Published: January 26, 2018

Recently, Texans for Natural Gas (TXNG) issued a report claiming methane emissions have drastically decreased in several of the largest natural gas producing counties in Texas from 2011 to 2016.

The notion of methane emissions rapidly declining across Texas during the largest U.S. oil and gas boom of the century is described in the report’s blog post as amazing, which in fact it would be if the report were accurate. It isn’t. The TXNG report doesn’t even come close to providing a complete representation of methane emissions across the featured Texas counties. TXNG claims methane emissions declined 51 percent in several of the state’s largest producing natural gas counties, and 39 percent across ten of the largest oil-producing counties.

And here’s what data is missing: methane emissions generated from onshore production and gathering. Simply put, the vast majority of emissions aren’t even included. (What’s even worse, their original report failed to disclose that the emission data referenced in TXNG’s blog post only accounted for methane emissions from large midstream gas facilities.) The revised report’s claims about 2016 reductions in Midland County only account for emissions from six processing plants and compressor stations while ignoring the over 2,000 oil and gas wells. Drawing broad conclusions from a tiny fraction of facilities is shoddy analysis at best and deliberately misleading at worst.

Also posted in Methane, Natural Gas, Texas / Comments are closed

Innovative Illinois initiative seeks to make solar power available for all

By Lavannya Pulluveetil Barrera / Published: January 24, 2018

We recently celebrated the one year anniversary of the monumental clean energy development package passed by the Illinois state legislature, the Future Energy Jobs Act. Environmental Defense Fund (EDF) joined forces with community-based organizations, fellow enviros, and clean energy industry representatives as part of the Clean Jobs Coalition to push for the historic bill, and now continues to work for its effective, efficient, and equitable implementation.

One of the many remarkable results of the legislation is the Illinois Solar for All program, created to increase access to the solar economy for economically disadvantaged communities and areas that meet program standards for designation as environmental justice (EJ) communities. In fact, the legislation allocates at least 25 percent of funds for three of the four subprograms (described below) to projects located in EJ communities.

The Solar for All program works by addressing the additional barriers these communities face when it comes to participating in renewable energy programs. By providing access to solar with no upfront costs, and a cash-positive experience (i.e. customers can positively manage their energy use and bills), the Illinois Solar for All program has the potential to transform how communities create, interact with, and benefit from clean energy. Read More »

Also posted in Illinois, Solar Energy / Comments are closed