#USA #Washington #Electrification #National Center for Energy Analytics #Jonathan Lesser

Recent Report Critiques Electrification Mandates

A new report from the National Center for Energy Analytics (NCEA) sheds light on the adverse effects of current electrification mandates in the United States. Authored by the NCEA senior fellow, Dr. Jonathan Lesser, this report argues that the push towards an electrified economy has been executed poorly, leading to heightened energy costs and diminished access to reliable power.

In the report, Dr. Lesser points out a critical oversight in the regulatory planning process within the electric utility sector. By mandating widespread electrification while simultaneously imposing restrictions on energy consumption, policymakers potentially aggravate the affordability crisis. "Our approach should prioritize meeting customer needs rather than rationing energy supply," states Dr. Lesser, emphasizing that relying solely on intermittent renewable energy sources is a flawed strategy.

Recent statistics illustrate a troubling trend: over the past decade, the frequency of power outages in northern California has doubled, even as average electricity rates surged 75% from 2020 to 2024. These developments signal a systemic failure in the planning mechanisms of electric utilities, which ought to be evolving to accommodate an increasing demand for dependable and reasonably-priced electricity.

As part of its efforts to address energy needs, the Department of Energy (DOE) recently allocated a substantial $15 billion loan to Pacific Gas and Electric (PGE). This funding aims to foster the development of virtual power plants, which include residential solar installations and battery storage solutions. However, Dr. Lesser argues that while these virtual plants may enhance supply, they do not address the underlying issue of long-term grid reliability and represent a temporary fix rather than a sustainable solution.

Furthermore, the author urges a reevaluation of resource planning by integrating the inconvenience costs incurred by consumers into the utilities' decision-making processes. Rather than imposing increased rates during peak demand periods or utilizing direct load controls that allow utilities to cut off power, a more consumer-friendly approach is essential.

The drive to mandate electrification has largely stemmed from environmental concerns, particularly the need to reduce carbon emissions. Despite this, Dr. Lesser contends that utilizing natural gas and nuclear energy sources offers a more pragmatic solution to ensure grid reliability while achieving emissions reduction objectives at a lower cost.

"Regardless of electrification mandates, the U.S. infrastructure must be robust and expansive enough to prevent power disruptions," Dr. Lesser argues. The NCEA report aptly titled "Electrification Without Electricity: An Epic Failure in Planning for Critical Infrastructure" underscores the need for a critical reassessment of our current energy policies.

In a rapidly changing energy landscape, the NCEA emphasizes the importance of informed policymaking that prioritizes accessible and affordable energy for all consumers. By analyzing energy policies and their implications objectively, the NCEA aims to guide policymakers, industry leaders, and the general public in navigating the complexities of the energy sector. This report is now available at utilities.energyanalytics.org.