Many factors go into electricity rate setting, but the economic guidance is short-run marginal cost. Economists can be so judgy. We don’t just study how the world is, like scientists, … Continue Reading Pricing for the Short Run
Appeals to equity don’t salvage the argument for demand charges. In the past, I have said some pretty unkind things about demand charges in electricity tariffs. Demands charges are fees paid … Continue Reading Are Demand Charges Fair?
Californians have paid over $1800 per household. Now can we please find out why? California gas prices are over the dreaded $4 mark. That turns out to generate a lot … Continue Reading The Mystery Gasoline Surcharge Gets Some Respect
A GHG tax alone doesn’t solve the global need for low-cost alternative technologies Economists seldom discuss climate change without someone opining that it is simply an externality that can be … Continue Reading Pricing Carbon Isn’t Enough
You aren’t getting “green electrons”, but charging at the right times still lowers GHG emissions. I spent a fascinating few days at the California Independent System Operator (CAISO) last month, … Continue Reading Charging With the Sun
Wildfire devastation mandates rethinking how electricity providers should be organized With pathbreaking policies in renewable energy, energy efficiency and electric vehicles, California has been on the leading edge of climate … Continue Reading Stabilizing Utilities in an Unstable Climate
Restrictions targeted at the newest road users are unfair and inefficient For years, Bob has been driving around the city to get to work, run errands, and see friends. The … Continue Reading Lyft Doesn’t Cause Congestion, All Vehicles Do