Why Californians Have Some of the Highest Power Bills in the U.S. (WSJ)

Utilities are investing billions to upgrade infrastructure and build out green energy, passing budget-breaking costs to households; trying to keep the chocolate from melting

BORREGO SPRINGS, Calif.—California is doing all it can to expand renewable energy production and rebuild its electrical infrastructure after flaws led to a series of devastating wildfires. 

The state’s big utilities are spending billions to bury power lines and insulate wires, while at the same time moving quickly away from fossil fuels by building big solar and wind farms and transmission lines to carry the power. 

As a result, resident Jessica Simpson Nehrer, who lives in Borrego Springs, near San Diego, has seen her electricity bill for her ranch-style house soar. It hit $1,873.90 in June, far exceeding her $1,200 rent and around double what it was two summers ago. 

https://www.wsj.com/business/energy-oil/why-californians-have-some-of-the-highest-power-bills-in-the-u-s-a831b60e?st=dffqel35pudxsh2&reflink=article_email_share

Author: Christopher K. Merker, Ph.D., CFA

Christopher K. Merker, PhD, CFA, is a director with Private Asset Management at Robert W. Baird & Co. and executive-in-residence and co-director of the Marquette S-Lab. He is also founder and chair of the board of Water + Energy Forward, a green bank focused on market-based climate solutions. He holds a PhD in investment governance and fiduciary effectiveness from Marquette University, where he has taught “Sustainable Finance” since 2009. He publishes Sustainable Finance and is co-author of The Trustee Governance Guide: The Five Imperatives of 21st Century Investing.