American Petroleum Institute President and CEO Mike Summers comments on President Biden's recent ban on oil and gas drilling and the administration's ban on certain natural gas water heaters.
Electricity prices in California have risen significantly over the past few years, officials say, in part because of that Green energy policies It is under pressure across the state.
The Legislative Analysis Office (LAO) released a new report showing monthly electricity rates for residential customers In California Since 2019, it has increased by almost 50% on average.
“Overall, average residential electricity rates in California have grown faster than inflation in recent years, increasing by about 47 percent over the four-year period from 2019 to 2023, compared to overall price growth in About 18 percent. .
According to the LAO, some of the main factors behind the price hikes are taxpayer-funded greenhouse gas (GHG) reduction targets and green energy programs.
Expert: Biden's new water heater ban will raise energy prices for the poor and elderly
California reportedly has the second highest electric bill in the country. (iStock)
California's Renewable Portfolio Standard (RPS) requires that by 2030, 60 percent of an electricity provider's portfolio must come from renewable energy sources, which the report found has increased electricity costs for ratepayers.
RPS requirements have reportedly led to a 5 percent increase in overall retail rates for customers using investor-owned utilities (IOUs) — such as PG&E, San Diego Gas & Electric and Southern California Edison.
Californians are also seeing higher energy costs as a result of programs that use their tax dollars to fund the state's rapid transition to clean energy, such as funding the construction of more charging stations for zero-emission vehicles.
EPA allows California to ban sales of new gas-powered vehicles by 2035.
The report also noted that while California has met some near-term emissions reduction goals, “the level of reductions needed to meet future goals is much greater.”
A driver plugs in a Tesla electric car for charging at a Tesla Supercharger location in Santa Monica, California, on May 15, 2024. (Patrick T. Fallon/Getty Images)
One of the next targets mentioned in the report was AB 1279, signed by Gov. Gavin Newsom in 2022, which seeks to have 85 percent of the state required. Emission of greenhouse gases By 2045, it will fall below the 1990 level.
As a result, according to the LAO report, California has the second-highest energy prices in the nation, and Hawaii is first. “On average, residential electricity rates in California are nearly double those in the rest of the country,” the report states.
It also noted that low-income customers in the state who participate in California's Alternative Energy Rates pay “significantly discounted rates” of about 30 to 35 percent less than other residents.
California Governor Gavin Newsom speaks at a press conference where he signed into law the oil and gas well monitoring and community protection laws in Los Angeles on September 25, 2024. (Jason Armond/Los Angeles Times via/Getty Images)
“The state's efforts to reduce its greenhouse gas emissions have helped establish California as a leader in climate policy and contributed to environmental benefits such as improved air quality. However, these efforts have come at a cost. some of which have caused an increase in electricity rates.” He reads the report.
“We think that the state's greenhouse gas reduction efforts have contributed significantly to the increase in electricity rates in the state, but they are certainly not the only factor,” LAO wrote.
Click here to read more about FOX BUSINESS
Other cost drivers, identified in the report, include higher costs associated with wildfires and fixed cost trade-offs for IOUs.