Power Plants and Higher Electric Rates

FUTURE UTILITY INCREASES PLANNED

The electricity that we are supplied today from PG&E and the other investor-owned-utilities is produced by a multitude of different power plants. This group of power plants is called the "portfolio." Electric power plants are characterized by their size (Megawatts) and the fuel source used to drive the generators. PG&E's electricity generation mix (fuel mix or power content) is about 50% fossil, mostly natural gas. The rest is nuclear, large hydroelectric, and about 12%-14% renewable

Current thinking on the part of the utilities is that they will increase the amount of renewables. Recently, an executive order requires them to increase renewables to 33% of total generation by 2020. New nuclear power plants are, at this point, prohibited in the State of California until there is a safe way to store the waste. No one knows when that will change. Similarly, no new large hydroelectric plants because of the ecological damage they inflict. The only remaining technology to produce low carbon electricity is Carbon Capture and Sequestration (CCS). Most or all of the existing fossil generation facilities will have to be specially fitted with systems to capture the carbon dioxide being given off and store it somewhere, either underground or under the ocean bottom, forever.

PG&E and the other utilities are telling us that reaching 33% renewables is going to be expensive. However, that cost is dwarfed by the cost of retrofitting existing fossil plants with carbon capture and sequestration. Today, it is impractical. There is no indication of what the ultimate cost of a large scale CCS retrofit would be. To hear the utilities tell it, this scenario is our only hope. The federal government so far largely agrees with them.

We should all brace for higher and higher rates due to the present exclusion of new nuclear, hydro electric, or coal plants but also the massive expense associated with replacing our infrastructure and retrofitting fossil fuel plants. This would include retrofitting and replacing major natural gas pipelines that are 50 years old as well as electrical lines, poles, trasformers, etc. PG&E is hoping to get a "flexible" increase system in place so they don't have to ask for specific increases which up to date have to be "justified".

There appears to be no winning with the utilities short of owning your own solar power plant and securing your current comfort and lifestyle for the rest of your life.