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Currently, I buy all my electricity from renewables. The price I pay per kwh is lower than conventional generation. However, the state of California has given PG&E a monopoly on electricity distribution, and PG&E charges me the difference between the generation charge from renewables and its own generation charge as a 'distribution fee'. This fee is waived, if i used PG&E generation.

Until California kicks out PG&E's monopoly and lets me pay the actual fair market price for my renewable electricity, I find it hard to take these initiatives as anything more than virtue signalling.

A better method for my county would be for the state to get rid of PG&E's ability to selectively charge the distribution fee. Then, private market forces would basically make everyone switch to renewables. Of course, the legislature wouldn't get the chance to appear virtuous. In fact, they'd look like villains for allowing this ridiculous pricing structure to begin with (and they really do knowingly allow it -- after talking with my state senator and representative, they told me they know this is the case, but 'the PG&E lobby is strong'.. give me a break).



I don’t really see how California could practically kick out PG&E’s monopoly. There won’t magically be a bunch of competitors that string is their own power lines. CA could potentially take over entirely and run its own system, which might not be totally crazy. Some cities (e.g. Palo Alto and Los Angeles) already do this.


The legislature directly controls PG&E's pricing. They can legislate it out of the market, or at least legislate out this particular pricing snafu.


The legislature does not control PG&E's pricing.

Periodically, PG&E submits rate cases to the CPUC. The outcomes of these rate case submissions dictate what PG&E is allowed to charge customers.

The CPUC is a quasi-executive agency established by the state constitution:

https://ballotpedia.org/California_Public_Utilities_Commissi...




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