In an opinion piece for the Santa Cruz Sentinel, United’s Leah Rubin Shen urges the California legislature to pass Senate Bill 540, which would allow California to join a West-wide regional energy market this year. She warns that failing to act could leave California isolated from the rest of the West. The benefits of joining such a market would save ratepayers $1B annually, improve grid reliability during extreme weather, and make better use of existing clean energy resources.
I grew up in Santa Cruz, a beautiful place to call home thanks to our beaches, parks, and redwoods. Still, it’s also an expensive place to call home, and high energy bills are one of the many reasons. California’s electricity rates are consistently higher than the rest of the nation, and with hotter summers, population growth, and more electrification of cars and homes, keeping energy affordable and reliable will only get harder.
This legislative session, lawmakers have the rare chance to pass a bill that will help keep the lights on, keep electricity bills from skyrocketing, and enable us to use more clean power. It’s not often you get legislation that can do all three of those things, but Senate Bill (SB) 540, by allowing the state to join a regional energy market, has the potential to do just that. Joining a market would allow us to share clean power across state lines more efficiently, reduce strain on the grid during the next emergency, and—according to a study from the California Energy Commission—could save ratepayers a billion dollars a year.
California has built one of the most robust clean energy economies in the world, but our progress is limited by the boundaries of our own grid. A regional market would unlock new opportunities. Instead of firing up costly, polluting power plants in the late afternoon when energy demand peaks, we could seamlessly share power across state lines and draw hydropower from Washington, geothermal from Nevada, or wind from Wyoming. At the same time, selling our excess solar energy could help neighboring states reduce their own energy demand, creating economic opportunities while making the best use of our renewable resources.
In other words, a Western energy market would create more pathways for moving clean, affordable electricity where and when it’s needed. SB 540, as originally introduced, authorized California to participate in a market like this as long as it respected our state’s clean energy policies while also ensuring that the regional organization overseeing the market remained independent. This would ensure California is protected, while also offering our neighbors around the region confidence that their own states’ policies would be respected as well.
Unfortunately, amendments to the bill threaten to derail this vision—and time is running out. If we don’t get this done this year, we won’t be able to return to the status quo. Our Western neighbors will join a competing market, run out of Arkansas and managed by utilities in the East. California will be left isolated with fewer partners to share clean, affordable power. This alternative is simply not an option. Joining a market is one of the best affordability solutions in the legislature right now, and we cannot afford to lose the opportunity.
Support for this concept is big and diverse. Utilities, labor, clean tech companies, and consumer advocates all agree that a workable version of the bill must pass this year. Governor Newsom endorsed SB 540, calling it “our best shot at lowering energy costs.” Assembly Speaker Rivas echoed that urgency, encouraging lawmakers to “get this done now.” The solution is clear: lawmakers need to restore SB 540 to its original form and pass it this year if they are serious about addressing the energy affordability crisis.
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