California's electricity costs may rise further if it fails to collaborate with neighboring states in electricity market consolidation. Currently, the state operates within a fragmented system with 38 different authorities. Experts emphasize that a larger market would enhance affordability and reliability for consumers. However, California’s contentious relationships with its neighbors due to water disputes and legislative failures have generated trust issues. Lawmakers' failure to engage in shaping the market could hinder economic benefits and decarbonization efforts essential for the state's energy future.
Imagine if there wasn't a New York Stock Exchange and that regions within every state had to sell and trade the very same equities. That is the inefficiency of today's Western electricity world.
The bigger the market, you're going to get better affordability, reliability and decarbonization benefits, said Kelsie Gomanie, a sustainable energy advocate for the Natural Resources Defense Council.
There is a real issue of trust in the West, said Severin Borenstein, a UC Berkeley business professor. There is a general distrust, maybe even animosity, towards California when it comes to resources.
If lawmakers this session choose to do nothing about shaping this market, which is the default setting in Sacramento, the inaction by the Democrats in charge could cost us for years to come.
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