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Tim Walz’s Record on Energy and Climate // Why California Electricity is so Expensive

Welcome to Grid Brief! Here’s what we’re looking at today: Where Tim Walz stands on key energy and climate issues, what’s causing California electricity prices to rise, and federal investments in the grid.

Tim Walz’s Record on Energy and Climate

AP Photo/Carolyn Kaster

Yesterday, Vice President Kamala Harris picked Minnesota Governor Tim Walz as her running mate for the 2024 election. Readers of this newsletter may be interested in Governor Walz’s record on energy and climate issues. Here are three key data points to know:

  1. In 2023, Walz signed a bill into law that would require Minnesota to get all of its electricity from wind, solar, and other carbon-free sources by 2040. In 2022, Minnesota’s in-state electricity generation came primarily from renewables (31%), coal (27%), and nuclear power (24%). The state also relies on coal-generated power from neighboring North Dakota.

  2. In the past legislative session, the governor signed an energy permitting reform bill into law. One of the key aspects of the bill included creating exemptions from certificate of need requirements by the Public Utility Commission for wind, solar, and transmission projects. The Governor’s office estimates that the bill will reduce permitting timelines for these projects by 9-12 months.

  3. Walz is a firm supporter of EVs. The Governor led the charge to implement California’s tailpipe emission standards in Minnesota. Walz also rolled out state rebates of up to $2,500 for EV buyers.

What’s Behind California’s High Energy Prices

In July, the average cost of residential electricity in California was about 34 cents per KWh, the second most in the country behind Hawai’i (45 cents/KWh).

A recent Wall Street Journal article provides a deep dive into what is causing these high prices, namely infrastructure upgrades, the greening of the grid, and inadequate battery storage.

In Borrego Springs, a desert town near San Diego, one resident’s electricity bill hit $1837.40 in June which was more than her $1,200 rent. One grocery store owner paid an average of $8,000 per month over the last year for his shop with a rent of $9,500. The store tried to cut back on air conditioning, but the desert heat forced food to go bad or melt.

Phred Dvorak reports that “The town’s primary utility, San Diego Gas & Electric, has raised electric rates 82% in the past 10 years as it poured money into wildfire prevention and expanding and greening the grid.”

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