Free electricity for millions of Californians. That’s one of the proposals from the Democratic candidate for governor in the Golden State, and one utility company has questions.
Former U.S. Health and Human Services Secretary Xavier Becerra unveiled his “power hour,” which would give lower-income families “free” electricity for several hours a day.
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California electricity typically comes from one of three major companies. One of which is Southern California Edison (SCE), which spoke with Straight Arrow about this plan.
“SCE supports innovative approaches that help customers lower energy costs and make better use of California’s abundant clean energy,” David Eisenhauer, spokesperson for SCE, told Straight Arrow. “At the same time, any proposal should be evaluated to ensure it delivers meaningful benefits, remains affordable for all customers, and maintains safe, reliable electric service.”
Becerra announcement
Becerra announced his proposal at a summit hosted by Politico.
“I’m going to offer you two hours of free electricity,” Becerra said.
Becerra will be running this November against Republican and former Fox News host Steve Hilton to take over one of the largest economies in the world.
Both men have tapped into Californians’ frustration over high energy costs in the state.
It was a central point of the Democratic primary, with billionaire Tom Steyer making affordability a centerpiece of his proposals if he were elected.
Becerra’s plan focuses on more renewable forms of energy, especially solar.
“We produce so much solar energy, electricity, that oftentimes in the afternoon we can’t make use of all of it, and so it essentially goes to waste,” Becerra said. “Or we ship it off to some other state. Sometimes we have to pay to ship it out. Why don’t we use it?”
California leads the nation when it comes to the production of solar power.
“Today we produce a lot of energy during the hot hours because the sun helps us produce solar energy,” Becerra said. “Take advantage of it.”
The hottest time of the day is early afternoon, and Becerra’s “power hour” would take place from 1-3 p.m. each day.
He believes he can implement this in the first year of his administration if elected.
California is also one of the most expensive states in the nation when it comes to utility costs.
Becerra’s campaign did not respond to a request for comment about his proposal.
SCE Response
SCE serves roughly 15 million people, more than the entire population of all but four other states.
While this plan is billed as free electricity, someone has to foot that bill.
What Becerra’s “power hour” would potentially cost the giant utility is still unclear.
“Key details haven’t been released, so it would be premature to speculate on costs, benefits, or implementation,” Eisenhauer said. “But any proposal needs to be carefully evaluated to support affordability, reliability, and fairness for everyone.”
California already began encouraging people and businesses to shift when they use power to ease electricity costs. The plan relies on things like time-of-use rates, smart appliances, EV chargers and more.
Would any additional costs be passed on to other consumers?
“That’s still something that needs to be worked out as well,” Eisenhauer said.
The other major utility companies in the state are Pacific Gas & Electric and San Diego Gas & Electric.
Neither responded to Straight Arrow’s request for comment, but Eisenhauer said they all stay in contact.
“One of the great things about the utility industry is we do collaborate a lot on things, especially around important topics like affordability,” he said. “And all of this is regulated by the California Public Utilities Commission as well.”
When Steyer made utility costs a central part of his campaign, the utility companies fired back. They spent roughly $10 million on negative ads against the billionaire who finished third in California’s jungle primary.
Becerra has a previous relationship with these companies, taking in over $150,000 as a candidate for Congress and attorney general.
When asked if the “power hour” was ever discussed before, Eisenhauer said he wasn’t sure, but it’s important these companies maintain a working relationship with whoever is running the state.
“We have a long history of working with both sides of the aisle,” he said.
What’s next?
What’s next is Election Day.
Becerra’s odds of succeeding Gavin Newsom are extremely high in a state that rarely elects Republicans for statewide offices.
Republican Steve Hilton has also planned to slash utility and gas costs if elected, although the governor of California has little ability to control oil prices or utility markets. The office does have some say in gas regulations and can lobby the legislature for lowering gas taxes.
Like Becerra, Hilton would also need to figure out how to pay for his proposed utility-cost-saving measures.
Plans similar to Becerra’s have been implemented in other places like Texas, but there, it’s clear where the money comes from.
Several electric companies in Texas offer free electricity during certain time windows, although that means customers typically pay more during the other hours of the day. So far, there’s no data proving it’s saving Texans any money.
Australia’s Solar Sharer Offer is even closer to what Becerra is proposing.
But again, prices are set slightly higher outside of the free windows to make up for the cost.
So while a program may be billed as free electricity, someone will have to pay for it.
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