CA governor candidate Xavier Becerra proposes free 'power hour' electricity plan

Updated 2 hours ago
SACRAMENTO, Calif. (KGO) -- Democratic gubernatorial candidate Xavier Becerra is proposing free electricity for millions of California households during part of the day, arguing the plan could help lower-income residents save money while encouraging energy use when solar power is most abundant.

Becerra unveiled the proposal Tuesday at POLITICO's Sacramento Summit, saying his plan would offer free electricity during a designated midday window. The Democrat said he would work with the regulators, energy providers and other stakeholders to determine how this would be paid, but didn't outline a funding plan.

"Use your electricity during those two hours and you won't pay a dime," Becerra said. "I think we can get Californians to re-calibrate."

Becerra said the proposal is designed to shift electricity consumption away from the evening hours, when demand is typically higher and power is more expensive.

"Today we produce so much solar energy, electricity that oftentimes in the afternoon we can't make use of all of it. And so essentially goes to waste," Becerra said.



The proposal enters the campaign as electricity affordability has become a major issue in California. Californians have seen their energy bills rise by nearly 40% over the past six years, according to the Haas Energy Institute at UC Berkeley.

GOP gubernatorial candidate Steve Hilton-who has made reducing utility costs a central part of his campaign platform-slammed Becerra's proposal as "stupid" in a statement to ABC7 Eyewitness News.

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"If you work, too bad. He's saying change when you do the laundry, but he's going to keep electric rates so high that it's crippling every family and small business in this state. It's insane," Hilton said.

The Republican went on to reiterate his plans for lowering utility prices, in which he is calling for breaking up PG&E.



"I will cut your electric bills in half by using common sense, using our natural gas-fired power stations at full capacity, instead of just 10 to 15% of the time, to use as backup for the wind and solar that they are obsessed with," Hilton said.

Energy experts say Becerra's proposal addresses a real challenge facing California's power grid.

The state frequently generates more solar power than it can use during midday hours, while demand increases during the evening.

"If a lot of people are able to use electricity in the daytime... you are going to see a fall in the evening peak load, which is the big concern of California grid operators," said Rajit Gadh, founding director of the Smart Grid Energy Research Center.

Solar generation is expected to continue growing, Gadh said, increasing the importance of finding ways to use excess power when it is available.

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"If you think about solar energy, it's going to keep growing," Gadh said. "So we have to figure out a way to store it and use it at some time of the day, or use it at that time."



At times, California grid operators have so much excess power that customers are paid to take it, he said.

Economists say the proposal could provide benefits to lower-income households, but caution that it would not solve broader affordability concerns.

"One could argue, well, some people might not be able to use it because they are at home at those times. And that's true. But that is when the power is cheap," said Severin Borenstein, faculty director of the Haas Energy Institute. "The biggest concern is that this is not a solution to the overall affordability problem, and we shouldn't confuse it with that."



Questions also remain about who would ultimately bear the cost of providing free electricity.

"Utilities are going to be on board with it as long as they are allowed to make up for that revenue by charging higher prices to other customers or at other times," Borenstein said.

California Independent System Operator officials declined to weigh in on the proposal's merits, saying significant research and coordination with the California Public Utilities Commission and the California Energy Commission would be necessary before providing input.

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