Advanced Energy Perspectives

What is a fixed charge? Similar to fixed costs you see on your cell phone or internet bill, a fixed charge, also referred to as a “basic service charge,” is a monthly fee that utility customers are required to pay no matter how much energy they actually use. Typically, utility bills are based on actual electricity and gas usage, perhaps with a modest fixed charge, but recently utilities have been proposing very large fixed charges on top of their already-approved charges and per-usage rates.  

California has long been thought of as a pioneer in the clean energy movement, often first among states to seize new opportunities and try bold ideas to ensure a sustainable future for its residents—both environmentally and economically.  

Across the United States, we are seeing a surge of electrified and zero-emission transportation initiatives. A growing number of states are setting ambitious targets to electrify their transportation sectors through incentives and policies to address the new technology. But for many states this transition also includes its own operations. Thirty-three states have set policies to transition their state-owned fleets to zero-emission vehicles (ZEVs) through both legislative mandates and executive orders (EO’s). In spearheading the shift to cleaner transportation options, states are setting an example for their residents while also capitalizing on benefits and savings taxpayers' dollars via reduced fuel and maintenance needs, lower emissions, and improved air quality. 

In recent years, Maryland has emerged as a frontrunner in clean energy leadership nationally, fueled by ambitious goals for clean energy and clean transportation. Policies like the Climate Solutions Now Act of 2022, the Advanced Clean Trucks (ACT) Rule, the Advanced Clean Cars II (ACCII) Rule, and the Maryland Building Energy Transition Plan prioritize electric vehicles (EVs), clean energy, and building electrification. However, while these policies are vital and the goals in them need to be met, their full implementation is going to require an electric system that we don’t yet have—and now there is groundbreaking legislation being considered in Annapolis that would address this aspect of the clean energy transition as well. 

Every three years, Arizona Public Service (APS) and Tucson Electric Power (TEP) conduct a comprehensive study predicting the amount of energy their customers will need in order to determine the energy resources required to meet those needs. This study, known as an Integrated Resource Plan (IRP), is a common exercise that utilities undertake in many states. While different parts of the country have different electricity needs and varying resources available, we at Advanced Energy United (United) believe all IRPs should include a comprehensive assessment of the advanced energy resources available, a competitive procurement process, and full incorporation of any additional policies that will change resource needs or costs.