Why it Has Become Necessary to Regulate PG&E Power Shutdowns

Why it Has Become Necessary to Regulate PG&E Power Shutdowns

By Energy CIO Insights | Tuesday, August 04, 2020

At present, California’s government has to deal with PG&E. However, there is no doubt the next generation deserves much better. 

FREMONT, CA: Gov. Gavin Newsom criticized Pacific gas & Electric on Thursday, calling the power shutdown that affected thousands of Californians unnecessarily.

Last May, it was said that CalFire’s confirmed that PG&E is accountable for sparking the most dangerous and devastating Camp Fire in the history of California, boosting the case for Newsom to either change or demolish the utility, both of which were not done.

However, the government must consider changing the incentive structure of PG&E to a system based on their performance in the short-term. The present cost-of-service policy that promises a positive return on capital investments for PG&E has not been successful in convincing the utility to place a premium on security.

The government must think about the long-term future so that they can make reliable power suppliers for the Californians. This means they have to utilize the power of wind and solar ability to produce energy closer to houses and businesses across the region, therefore reducing the risk of electricity shutdowns.

Another option is to burden the next generations with the traditional system, and it can be an insult to an innovation-pronounced country.

Moreover, the aging infrastructure of PG&E must be discontinued. The traditional rotary-dial phone depends on massive power stations, for which it needs numerous electrical lines. The electrical wires are spread through thousands of miles of forests and tinder-dry brush, which results in constant disaster, primarily due to the rapid climate change.

The government must offer incentives for developing the community choice aggregators (CCAs) further, as it will help the local governments to generate their energy suppliers and function independently. Many CCAs are functioning or are on the verge of providing alternative energy in the Bay Area.

However, CCAs might not be completely perfect. Yet, they can implement microgrids that can do the job of providing power during electricity shut down because of unpleasant weather conditions.

As per the State’s Energy Commission, in 2018, California got approximately 35 percent of its electricity from renewable energy sources. It is evident from the failures of PG&E that it has to renovate its way of delivering power in Northern California.

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