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Should California's Grid Join a Larger Regional Electricity Market? (latimes.com) 51

One in every 9 Americans lives in California. And right now its Congress is debating a bill that "would help establish a regional electricity market capable of tying together the American West's three dozen independent power grids," according to the Los Angeles Times' newsletter about climate change and energy issues.

But that bill "has bitterly divided environmentalists," with some seeing it "as a plot by greedy energy companies to enrich themselves." Supporters say it would smooth the flow of solar and wind power from the sunny, windy landscapes where they're produced most cheaply to the cities where they're most needed. It would help California keep the lights on without fossil fuels, and without driving up utility bills... [S]olar and wind power are still cheaper than planet-warming coal and fossil gas. Which is why Michael Wara, a Stanford energy and climate scholar, isn't worried that SB 540 will leave Californians drowning in dirty power. In a regional market, solar and wind will usually outcompete coal and gas. "Any energy source that requires fuel to operate is more expensive than an energy source that doesn't," he said.

California also needs to prove that a grid powered entirely by clean energy is affordable and reliable. The state's rising electric rates are already a big concern. And although the grid has been stable the last few years, thanks to batteries that store solar for after dark, keeping the lights on with more and more renewables might get harder. Regional market advocates make a strong case that interstate cooperation would help.

For instance, a market would help California more smoothly access Pacific Northwest hydropower, already a key energy source during heat waves. It would also give California easier access to low-cost winds from New Mexico and Wyoming. Best of all, that wind is often blowing strong just as the sun sets along the Pacific. Another benefit: Right now, California often generates more solar than it can use during certain hours of the day, forcing solar farms to shut down — or pay other states to take the extra power. With a regional market, California could sell excess solar to other states, keeping utility bills down. "This is about lowering costs," said Robin Everett, deputy director of the Sierra Club's Beyond Coal Campaign.

"Unlike with past regional market proposals, California would retain control of its grid operator, with only a few functions delegated to a regional entity," the article points out. But opponents still worry this would give new powers to an outside-of-California group to thwart clean energy progress if not gouge customers. Amendments passed this week add a "Regional Energy Markets Oversight Council" to address that concern — but which lost support for the bill from some of its earlier supporters.

"The amendments would make it easier for the Golden State to bail," notes the climate newsletter, and "Out-of-state utilities don't want to waste time and money committing themselves to a California-led market only to lose California, and thus many of the economic benefits..."

Should California's Grid Join a Larger Regional Electricity Market?

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  • Happy to be one of the eight.
  • Yes (Score:3, Informative)

    by dvice ( 6309704 ) on Monday July 21, 2025 @04:46AM (#65534106)

    If California joins the larger grid, it would most likely lower the electricity price in California and also in the rest of the USA. It would also most likely lower CO2 emissions. It would also most likely lower the probability of peak prices and blackouts. IMHO only losers would be fossil energy providers.

    • This could go very right or very wrong.

      • I almost spit my coffee out when they said "gouge the customer". Having had the privilege of paying PG&E tier pricing at one point in my life, it honestly can't get any worse than it already is.
    • Re:Yes (Score:5, Insightful)

      by AmiMoJo ( 196126 ) on Monday July 21, 2025 @04:53AM (#65534116) Homepage Journal

      This is the future. Highly interconnected grids that can move energy from where it is available to where it is needed.

      • That would sound promising, but as long as trucks work on fossile fuel ...

        • by AmiMoJo ( 196126 )

          We have EV trucks in Europe. Big batteries, decent range, fast charging.

          • Available in America too: https://www.ford.com/trucks/f1... [ford.com]
            Also hybrids, if you're into that.
            • by AmiMoJo ( 196126 )

              Ah, when I say "trucks", I mean heavy goods vehicles with trailers. I'm not sure exactly what we would call an F-150. Maybe a light truck, but I tend to think of something smaller for those, like a Japanese Kei truck.

              Anyway, big rigs like this: https://www.youtube.com/watch?... [youtube.com]

              • Even here in the USA an F150 is properly called a "pickup" or "pickup truck" and not just a "truck", but America doesn't care about what's proper.

                The law in the USA refers to what you call a "truck" as a "heavy truck", though it's not only semi-tractors but just also any other truck over a certain gross weight rating.

          • We have EV trucks in Europe. Big batteries, decent range, fast charging.

            That's hardly a fair comparison. The EU has more people than the USA, in less than half the land area, and has plenty of waterways, canals, and access to the sea for cheap transport by water. While the EU is technically connected by roads and rail to Asia there's a political boundary defined by Russia that further discourages long distance travel by land.

            I suspect that there are very few truck drivers in the EU that are unable to sleep in their own beds every night because the routes they'd travel would b

            • If you are driving a lorry load of lemons from Sicily in southern Italy to Dartford in the south east of England, that is a 29 hour drive assuming no rest breaks.

              Even if you are driving between Glasgow (Scotland) and London (England), about 8 hours, then realistically you are only doing a run in one direction each day. Or sometimes, if it is a big company, the drivers might meet up half-way and swap vehicles.

        • This is the kind of willfully ignorant, close minded pathetic responses that really pisses me off.

          So because some vehicles still use fossil fuel, we should make absolutely no advancements towards renewables? If it can't be a 100% changeover all at once it's not worth doing?

          I wish stupidity was painful.

    • Highly doubtful, just like they water water from out of state....... They always want more !!
    • If California joins the larger grid, it would most likely lower the electricity price in California and also in the rest of the USA. It would also most likely lower CO2 emissions. It would also most likely lower the probability of peak prices and blackouts. IMHO only losers would be fossil energy providers.

      That’s *exactly* what the fossil fuel industry wants you to think. “Hey, just join the market! It’s all sunshine and savings!” Meanwhile, buried deep in the amended version of SB 540 is a shiny little trapdoor called REMOC — an unelected oversight council with the power to yank California out of the market with 120 days’ notice, even for vague or technical violations. That kind of political landmine all but guarantees other Western states will take their toys and go home

    • "If California joins the larger grid"

      They are already connected to Washington, or more exactly the BPA.

      https://en.wikipedia.org/wiki/... [wikipedia.org]

  • by TheMiddleRoad ( 1153113 ) on Monday July 21, 2025 @04:46AM (#65534108)

    The issue is not being part of a larger market. The issue is the deal signed and all the unanticipated consequences. Who is going to get rich doing this?

    • The issue is not being part of a larger market. The issue is the deal signed and all the unanticipated consequences. Who is going to get rich doing this?

      Is Enron's zombie involved in this?

  • Europe has been moving towards a common energy market since 2006, and currently most of Europe is integrated, and the transition to renewable energy is part of this.

    Impact assessments have shown various technical, economic and administrative benefits, resulting in significant cost reductions.

    California's electricity grid should definitely be integrated, but with a clear strategy for transitioning to renewable energy. With a reduction in cost and less CO2 emitted, perhaps it is inevitable?
    • by vyvepe ( 809573 )

      Europe has been moving towards a common energy market since 2006, and currently most of Europe is integrated, and the transition to renewable energy is part of this. Impact assessments have shown various technical, economic and administrative benefits, resulting in significant cost reductions.

      There were no electricity cost reductions in Europe in the past 16 years for households. There was a huge bump in price after COVID and when Russia invaded Ukraine. After that it somewhat stabilized but it is still up by about 64% in this period: https://ec.europa.eu/eurostat/... [europa.eu]

      There was a small price drop for electricity for companies in 2023. But it is not dropping any more either now. And overall electricity price for companies went up by about 90% in the last 16 years: https://ec.europa.eu/eurostat/. [europa.eu]

      • Average European prices have been at their lowest in 2024 since 2021, despite volatility. But I never said anything about historical prices, just the benefits of a market.

        When a country produces more energy than it needs, it can export it and get paid for it. A possible downside is that this could push up prices locally when prices rise nearby, but it should result in a more reliable and efficient supply of electricity.
    • Re: (Score:2, Interesting)

      by Anonymous Coward

      That must be why Norway is looking to cut energy links [euronews.com] with Europe /s. There are pros and cons to linking up grids, and anyone trying to make out like the cons don't exist is doing a disservice.

  • To make an effective western grid more transmission lines are needed. Yes, wholesale feed-in rates might go down due to the mechanics of pricing (oversimplifying: last MW committed determines the price everyone is paid, and you would have more generation competing for that last MW). The problem is that the transmission charges would make it difficult for energy to flow from point A to point B. You see this today in California's grid where some transmission lines and nodes have a negative marginal cost wh

  • So California wants to suck up the power from out of state like they do the water !! Just say no to them !!!
  • by ishmaelflood ( 643277 ) on Monday July 21, 2025 @06:38AM (#65534224)

    The lived experience of the Australian East Coast grid is that whacking in loads of unreliables (solar wind) with inadequate storage (11 weeks worth) will kill the economics of the fossil fuel and nuclear plants, which work best as baseload providers, not infilling for the unreliables.

    • Sorry, I forgot the conclusion... therefore all surrounding grids that rely on reliable energy sources will find they are rendered uneconomic by the often free but usually non existent unreliable power sources the CA grid has encouraged.

      • by mjwx ( 966435 )

        Sorry, I forgot the conclusion... therefore all surrounding grids that rely on reliable energy sources will find they are rendered uneconomic by the often free but usually non existent unreliable power sources the CA grid has encouraged.

        In his rush to try and blame renewable energy, he forgot to mention the East Coast power grid consits almost entirely of privatised energy companies. But he could never admit that's what is really wrong with it. Control was taken away and given to unaccountable firms that have done nothing but milk it for profit (except when they've got their hands out to the government for more public money, so they can build stuff to then milk for profit).

        There's a reason Western Australia has cheaper power despite it

  • by rossdee ( 243626 ) on Monday July 21, 2025 @07:13AM (#65534246)

    Yeah they should connect to the UK, that way the solar panels would compliment each other. (when its daytime in CA its night in the UK.)

  • I was amazed a few years ago when I discovered the USA doesn't have a National Grid, nor strategic national oversight of the power generation or transmission/distribution market. Considering that was done in the UK in the middle of the 20th century, and we're often a bit behind the curve, I'd assumed the USA had done it many, many decades ago. No wonder the UK, EU and China appear to be streaking ahead in their energy systems overhaul.
    • It always cracks me up when Brits say things like this.

      Dude, England, Wales, and Scotland are less than 60% the size of California and your population is about 50% greater. You simply have no idea how big this place is or how spread out we are.
  • by nospam007 ( 722110 ) * on Monday July 21, 2025 @08:40AM (#65534334)

    It would violate the law, Betteridge's law of headlines with a question mark.

    Those are always to be answered with NO!

  • I live in California and used to work in the Texas electricity market (ERCOT). I don't want a bunch of out of state pirates manipulating our market again. Our homegrown pirates are bad enough.
  • From the fine article:

    Some consider regional power-trading a crucial market-based tool for accelerating climate progress. Others see it as a plot by greedy energy companies to enrich themselves.

    How dare anyone try to make a profit on the sale of goods and service, am I right?

    Profit isn't good, or bad, but it is necessary to keep a business going. If energy companies aren't making a profit then the people running them will close the company and find someplace else to invest their money. What keeps the greedy from gouging people for profits is competition, and with a larger electrical grid there would be more opportunity for competition to keep people from being too greedy.

  • SB 540 started out as a smart evolution of California’s grid strategy — enabling them to join a broader Western electricity market that cuts costs, reduces emissions, and boosts reliability by sharing renewables across state lines. And it *still could be* — except for the poison pill that the fossil fuel lobby buried in Section 2(c): the Regional Energy Market Oversight Council (REMOC). This unelected new oversight council sounds like a watchdog but functions like a trapdoor, with the powe

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