CALIFORNIA FOCUS
FOR RELEASE: FRIDAY, JULY 23, 2021, OR THEREAFTER
BY THOMAS D. ELIAS
“ROOFTOP SOLAR LIVES ON, BUT
INEQUITY REMAINS”
A state legislative bill that could have killed rooftop solar
installation in California is now itself dead, but the issue that sparked it
lives on, now left to be resolved by a state commission that has long been a
utility company lapdog.
That’s the reality today, after the demise of AB1139, a bill
that would have broken promises made by the state to all California residents
with rooftop solar panels providing energy for themselves and others.
The remaining issue won’t be easy to resolve fairly, and the state
Public Utility Commission’s habit of giving utilities whatever they want means
this eventual “solution” will likely tilt neither toward rooftop solar owners nor
other electric consumers who help subsidize them, but figures to favor companies
like Pacific Gas & Electric, Southern California Edison and San Diego Gas
& Electric. That is what the PUC so far indicates.
Here’s the issue, as summarized by the often ham handed
Lorena Gonzalez, the Democratic assemblywoman who authored AB 1139, a measure
that could have been almost as clumsy and destructive as her previous AB 5.
That one attacked the state’s gig economy until it was mostly rescinded by her legislative
colleagues.
“Right now,” Gonzalez griped while her bill was still alive, “the
way we’re subsidizing rooftop solar, the people who are bearing the brunt of it
are the people who don’t have solar or will never have it.”
She was correct, up to a point. Rooftop solar owners who
produce more energy than they use can sell that power to the overall grid in
their region, with the ever-increasing price of that juice paid by all other
consumers.
What Gonzalez ignores, of course, is that if electricity
consumers weren’t buying power from rooftop solar owners, the companies that
serve them would have to buy it elsewhere. And the same consumers would pay – very
likely more than they now pay to rooftop solar owners.
This wouldn’t bother the utility companies a bit. They love
big solar thermal power farms located in the sunniest parts of the state – the far
reaches of California’s deserts. The utilities generally don’t own those solar
farms, but they do own the transmission lines that bring their energy to cities
they serve. For every dollar they spend building those lines (with customer
money), the utilities get between 10 percent and 14 percent profit, depending
on the PUC’s whim.
Essentially, Gonzalez sought to cut what rooftop solar owners
are paid in order to let other electric users’ rates drop a little. Except they
would not drop, because cutting what rooftop owners get would remove much of
the incentive for installing panels and lead the utilities to buy more from desert
solar farms and build more transmission lines to handle the new supply. So
consumers’ rates would actually rise if Gonzalez eventually gets her way,
likely now via a PUC ruling that’s due sometime in the next year.
What’s the equitable way to resolve this? Here’s one suggestion:
Lower the excess power price paid to new rooftop owners, but not enough to
remove the incentive to install. Don’t mess with what current rooftop owners
are paid – that would be breaking promises made to them by the state.
This kind of compromise would save other
consumers a bit on their rates, while also not forcing them to subsidize as
many new transmission lines and the huge profits they bring the utilities.
Will anyone listen to this kind of reasoning?
Probably not. For the labor union and utility lobbyists
pushing for less rooftop energy and more new transmission lines want to remove
all incentive to install panels. They usually don’t have to work very hard to get
their way with the PUC.
And if that’s the inclination of the PUC’s five commissioners,
there won’t be much consumers can do about it. Many of those consumers
successfully lobbied legislators to kill AB 1139, but the PUC is not subject to
the same tactic because its members serve fixed six-year terms and are all but
impossible to remove.
Which means the death of the latest inept Gonzalez bill was
likely only a Pyrrhic victory for consumers… they won the immediate battle but
are quite likely to ultimately lose this war.
-30-
Email Thomas Elias at
tdelias@aol.com. His book, "The Burzynski Breakthrough, The Most Promising
Cancer Treatment and the Government’s Campaign to Squelch It" is now
available in a soft cover fourth edition. For more Elias columns, visit www.californiafocus.net
Suggested pullout quote: “A
compromise would resolve the current inequity.”
I agree with most of your points. The one you are missing is that net metering, the cornerstone policy that utilities are trying to dismantle, can be a tool to increase equity in the rooftop solar market. It is already working toward that end. In 2019, more households earning less than $50,000 went solar than households earning more than $250,000. That's an amazing statistic and one we should build upon. If you are interested in learning more about proposals before the CPUC right now to create greater equity in the rooftop solar market, please feel free to reach out: bernadette@calssa.org. Thank you!
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