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After passing the State Assembly Appropriations committee on Wednesday, a little known bill – SB 1441 – is headed for the assembly floor, which is slated to deliver big benefits for consumers and the environment. Not only will the bill create a strong market driver for utilities to operate tighter infrastructure and save California consumers tens of millions of dollars per year, the simple yet innovative approach it takes can chart a course for curbing methane leaks across the industry.
But first, a little context.
As recent as a couple years ago, non-hazardous natural gas leaks and venting were a commonly accepted occurrence across gas utility infrastructure. As long as a leak or a venting wasn’t likely to ignite, utilities could let it go – with many small persistent leaks lasting for decades. And though it sounds hard to believe, gas utilities continuously collect money from consumers through their gas bills to cover the amount of gas utilities lose, even though they also collect money from those same ratepayers to upgrade pipes. This market design works only to protect utilities – giving them money to fix leaks while also covering them if they don’t. Read More
The U.S. economy is wonderfully dynamic. New businesses launch daily, creating jobs and providing tax revenues for schools and police. Innovative technologies are introduced, offering customers more choice and improved services. Sometimes, of course, those new firms and devices replace existing institutions and products.
Each year, dozens of utilities across the U.S. embark on a complicated process called a “rate case.” Presented to a state public utility commission (PUC), a rate case is a utility’s pitch for higher electricity prices for customers. For most utilities, a rate case only happens once every several years. So, all sides argue for the rules of the road by which the utility will operate until the next rate case. A rate case is also where state and local governments, along with consumer and environmental advocacy groups, seek cleaner, cheaper, and more customer-friendly prices, products, and policies.
Calvin Bryne co-authored this post.
Each month, the Energy Exchange rounds up a list of top clean energy conferences around the country. Our list includes conferences at which experts from the EDF Clean Energy Program will be speaking, plus additional events that we think our readers may benefit from marking on their calendars.