Gov. Newsom has brought up a plan for the state to buy energy ahead of sweltering summers.
This would be a big change for California, where up to now utility companies have been responsible for buying their own power. Customers would have to pay for the new power the state buys through a new, still undetermined, charge on their electric bills.
Newsom’s proposal has the support of some of the state’s largest investor-owned utilities, including Pacific Gas & Electric. PG&E spokesperson Lynsey Paulo called Newsom’s proposal “likely the most efficient way to achieve a clean energy future,” saying that the state should make sure the power it buys is distributed fairly among utilities in the state.
“In the past two or three years, the market for new resources has gotten incredibly tight,” he said. “That tightness is really impacting the price of energy and particularly during the summer months.” Advocates say California is in a prime position to try something like this. Last year, five companies spent more than $750 million to lease areas off the California coast for offshore wind projects. These projects could collectively generate close to 5 gigawatts of energy, according to Alex Jackson, director of American Clean Power Association, which represents these companies. That’s enough to power more than 3.5 million homes.
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