Letters to the Editor: Edison CEO on why California rooftop solar rules must change
Tuesday
Sep 29, 2013 at 12:01 AMSep 29, 2013 at 8:21 PM
We are seeing a new industry take effect in California, with the rapid growth of rooftop solar. The costs are falling rapidly, yet solar installations are still very limited. By all accounts, consumers are not taking advantage of this new source of renewable energy. One group of consumers is not receiving any benefit at all for their contribution to the grid — small businesses.
We are seeing a new industry take effect in California, with the rapid growth of rooftop solar. The costs are falling rapidly, yet solar installations are still very limited. By all accounts, consumers are not taking advantage of this new source of renewable energy. One group of consumers is not receiving any benefit at all for their contribution to the grid — small businesses.
We are all looking forward to the growth of the solar industry as a major source of new energy. Hopefully the state Legislature will recognize the need to encourage this new industry to thrive.
The recent California State Energy Commission (SEC) decision, and recent reports by the federal Treasury Department and EPA, confirm that the federal tax law allows electric companies to make a windfall profit by selling the energy they do not generate at below-market prices to large-scale power utilities.
The SEC decision allowed large utility companies to pass on the difference in the wholesale power rates from buying electricity into their distribution system to the retail electricity customers. This practice resulted in a profit of more than $32 billion for the utilities.
The Federal Energy Regulatory Commission (FERC) recently completed a study, completed in February, into the impact of tax incentives on renewable energy costs. It concluded that tax incentives for renewable energy, such as the one California is proposing, are not competitive and can increase the cost of electricity.
In addition, FERC also found that the tax incentives available through the state’s renewable energy rebate program cannot be considered as a “true, full-cost” incentive program to provide an effective measure of investment.
The FERC also found that a windfall profits tax should not be used as a “true, full-cost” incentive. The FERC is correct. This tax will significantly increase the cost of electricity and make it more
