Kavya Balaraman of Utility Dive reports that California’s approach to power pricing could discourage electrification.
- California’s utilities operate through volumetric pricing, where fixed costs are bundled with increased per-kilowatt rates.
- This model, which is touted by environmentalists, is regressive and harms low-income families who are forced to spend a larger percentage of their income on high electricity costs.
- Due to these high costs, experts are beginning to fear that electrification may be unfeasible for California.
- Instead of punishing its citizens for using electricity, California should embrace a market structure that provides lower rates and increased consumer choice.
Read the full article here.