Tuesday, March 4, 2014

Electricity Price Trends: Two Extremes of California and Texas

For many reasons, power prices have been rising in California and falling in Texas, and the disparity is now substantial.  These are weighted average retail rates to residential, commercial, and industrial customers.  On-grid demand has also been falling in California, and flat to up in Texas in the last few years (weather adjusted).  

These two states may present test cases for the impact of renewables, and perhaps also the impact of stagnating demand.  California also represents the vanguard of grid defection potential, given its high insolation and high retail rates.