CanaryMedia: “Electricity is too expensive. Here are three ways to fix that.” Their thesis: “Lawmakers nationwide can lower power bills by cutting utility profits, rewarding the companies for boosting efficiency, and unleashing solar and storage.” Look carefully at the graphic for a moment, + realize each state’s percentage is on top of historic + conventional rates of return, a classic example of regulatory capture. “Recent research by Rocky Mountain Institute shows utilities still received enough capital to build new infrastructure when profits were more reasonable in the late 1970s and early 1980s.”
Next, we know we could significantly reduce electricity use with energy-efficiency investments that routinely cost less than the fossil-fuel [methane gas] power generation favored by most utilities. “Instead, utility grid spending has exploded in recent years, outpacing inflation and electricity sales combined, according to the Energy Information Administration. ‘With guaranteed return on investment, ‘for each $100 of capital utilities invest in infrastructure, they’ll extract as much as $50 back in profits from customers over the life of the pole, transformer, or equipment.’
Finally, we need to unblock onsite generation. Local solar + batteries make electricity right where people use it, and more of each saves everyone money. “Models suggest that dramatically scaling up energy resources like rooftop solar and batteries, + coordinating them with tools like smart thermostats, could cut future grid costs by half a trillion dollars.” But ‘state + local laws, + utilities’ own policies around crucial processes like connecting to the grid, are mostly written to block + slow down small-scale clean energy.’ Now it’s up to legislatures to dismantle these barriers, ‘simplifying and automating permitting + zoning requirements, allowing non-utility ownership of solar projects, + fairly compensating solar owners through net metering.’
Utilities will be vehement in their opposition + will distribute their lobbying dollars accordingly. Gear up for some mud wrestling.
