California Cut Coal From Its Energy Supply. Why it Might Plug Back Into Fossil Fuels

Source: CalMatters  |  By Alejandro Lazo & Jeanne Kuang

With electricity prices rising and pressure to keep the lights on, California is racing to create an expanded power market with other Western utilities to trade vast amounts of electricity. An expanded market could include climate-aligned states such as Oregon and Washington but potentially also coal-burning ones such as Wyoming, Utah and New Mexico.  Senate Bill 540, which paves the way, passed the state Senate earlier this summer with bipartisan support and is now before the state Assembly. Gov. Gavin Newsom wants a deal this year. 

The Utility Reform Network, a consumer advocate group, has taken a neutral position on the measure and threatened to oppose it unless California retains some autonomy and a strict procedure to withdraw. Before passing the bill, senators amended it to include more safeguards requested by skeptics. Those include a newly proposed oversight council, composed of some California appointees and elected officials, which would have to sign off on California’s participation in the market. The council could also direct the state and its utilities to back out in the future — if, say, federal regulation or the new market operator threatens the state’s climate goals. “It’s about creating an exit strategy,” said Matthew Freedman of The Utility Reform Network. “Given what we’re seeing at the federal level now, we cannot be too careful.”