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Bitcoin Fortress's avatar

Great piece and you were right. Makes me mad. 😡 Just another example of how corrupt things have gotten in Sacramento.

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Fabius Minarchus's avatar

Observing from a distance: with electricity bills based purely on kilowatt hours used, the power companies lose money on net metering, because the marginal rate is way too high. Having a fixed hookup charge plus a lower rate for kilowatt hour used more accurately reflects costs to the utility.

Keeping the power lines hooked up to a home which is just powering a night light while the owners are on vacation is just as expensive to the power company keeping the power lines hooked up to a home which is running the air conditioner with the windows open. The fuel used in powering that air conditioning is much closer to the industrial marginal cost of electricity, not typical residential rates.

With net metering, you get a bunch of homes like the nightlight home on the grid.

On the other hand, breaking out the hookup charge from the energy use charge lowers the marginal cost of electricity. Crank up that AC. Sunk cost, baby!

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With all this written, I did not see any changes in marginal rates in your text above, but I did not read all that carefully. I don't live in California, so I'm too lazy to read the legaleze.

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