Trystan Casey
California is home to more than 1,500 power plants, with a total electricity generation capacity of about 80 GW. The state's electricity sources include natural gas, renewable energy, hydroelectric power, and nuclear power. California's electric companies include Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric (SDG&E), Southern California Edison (SCE), and Los Angeles Department of Water & Power (LADWP). These companies are investor-owned utilities that serve a large number of customers in the state. In addition, there are also locally-controlled Community Choice Aggregation (CCA) electricity providers that offer residents and businesses the option to choose renewable energy sources at competitive rates.
| Characteristics | Values |
|---|---|
| Number of power plants | More than 1,500 |
| Total capacity of electricity generated | About 80 GW |
| Electricity generated from natural gas | 50% |
| Electricity generated from renewable sources | 32% |
| Electricity generated from hydroelectric power | 15% |
| Electricity generated from nuclear power | 3% |
| Phase out fossil fuels by | 2045 |
| Electric Load-Serving Entities (LSEs) | Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric (SDG&E), Southern California Edison (SCE), Liberty Utilities, Gridley Electric Utility, Healdsburg Electric Department, Imperial Irrigation District (IID), Kirkwood Meadows Public Utility District, Lassen Municipal Utility District, Lodi Electric Utility, Lompoc Electric Division, Los Angeles Department of Water & Power (LADWP), Pittsburg Power Company Island Energy, Port of Oakland, Power and Water Resources Pooling Authority (PWRPA), Rancho Cucamonga Municipal Utility, Redding Electric Utility, Riverside Public Utilities Department, Roseville Electric, Sacramento Municipal Utility District (SMUD), Shasta Lake |
| Electric Service Providers (ESPs) | Non-utility entities offering direct access electric service to customers within the service territory of an investor-owned utility |
| Public Power | Transmission Agency of Northern California (TANC), Balancing Authority of Northern California, California Municipal Utilities Association |
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What You'll Learn
California's three big utility companies
California has more than 1,500 power plants, with a total electricity generation capacity of about 80 GW. Natural gas accounts for 50% of the electricity, while 32% is generated from renewable sources, 15% from hydroelectric power, and 3% from nuclear power.
Pacific Gas and Electric Company (PG&E) is headquartered in San Francisco, California, and serves customers in Northern and Central California. PG&E has faced criticism for its role in the 2017 and 2018 Northern California wildfires and has committed to enhancing its wildfire prevention efforts.
San Diego Gas & Electric Co. (SDG&E) is based in San Diego, California and provides energy services to San Diego County and southern Orange County. The company has implemented various programs to support renewable energy and energy efficiency, including the installation of electric vehicle charging stations and the development of a microgrid system.
Southern California Edison (SCE) is the second-largest electric utility in California, serving a population of nearly 15 million across a 50,000-square-mile service territory. SCE has been recognised for its efforts in renewable energy and has committed to reaching carbon neutrality by 2045.
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Electric Load-Serving Entities (LSEs)
California has more than 1,500 power plants, with a total electricity generation capacity of about 80 GW. The state's electrical grid is part of the Western Interconnection, with power lines connecting the Pacific Northwest and Los Angeles area. Natural gas accounts for about 50% of the electricity generation, while 32% is from renewable sources, 15% from hydroelectric power, and about 3% from nuclear power.
In terms of Electric Load-Serving Entities (LSEs), California has a mix of investor-owned utilities (IOUs) and publicly owned LSEs, including publicly owned utilities (POUs). LSEs are organizations that directly serve retail electric customers and are responsible for procuring electricity for those customers. They may also own and operate the physical distribution system, which is the network of hardware that connects the transmission system to individual retail customers.
Investor-Owned Utilities (IOUs):
- Bear Valley Electric Service (BVES)
- Liberty Utilities (also known as CalPeco for California Pacific Electric Co.)
- Pacific Gas and Electric Company (PG&E)
- PacifiCorp
- San Diego Gas & Electric (SDG&E)
- Southern California Edison (SCE)
Publicly Owned LSEs:
- Alameda Municipal Power
- Anaheim, City of Public Utilities Department
- Azusa Light and Water
- Gridley Electric Utility
- Healdsburg, City of, Electric Department
- Imperial Irrigation District (IID)
- Kirkwood Meadows Public Utility District
- Lassen Municipal Utility District
- Lodi Electric Utility
- Lompoc, City of, Electric Division
- Los Angeles Department of Water & Power (LADWP)
- Merced Irrigation District
- Pittsburg, City of Pittsburg Power Company Island Energy
- Port of Oakland
- Port of Stockton
- Power and Water Resources Pooling Authority (PWRPA)
- Rancho Cucamonga Municipal Utility
- Redding Electric Utility
- Riverside, City of Public Utilities Department
- Roseville Electric
- Sacramento Municipal Utility District (SMUD)
- Shasta Lake, City of
- Silicon Valley Power (SVP)
- Vernon, City of Gas & Electric Department
- Victorville Municipal Utilities Services
These LSEs play a crucial role in California's electricity market, ensuring the reliable supply of electricity to retail customers and contributing to the state's overall energy mix.
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Electric Service Providers (ESPs)
California has more than 1,500 power plants, with a total electricity generation capacity of about 80 GW. The state's electricity sources are diverse, with natural gas accounting for 50%, 32% from renewable sources, 15% from hydroelectric power, and 3% from nuclear power.
An Electric Service Provider (ESP) is a non-utility entity that offers "Direct Access" electric service to customers within the service territory of an investor-owned utility. ESPs are required to register with the California Public Utilities Commission.
There are numerous ESPs operating in California, including:
- Pacific Gas and Electric Company (PG&E)
- San Diego Gas & Electric (SDG&E)
- Southern California Edison (SCE)
- Liberty Utilities (a.k.a. CalPeco for California Pacific Electric Co.)
- Los Angeles Department of Water & Power (LADWP)
- Gridley Electric Utility
- Healdsburg, City of, Electric Department
- Imperial Irrigation District (IID)
- Kirkwood Meadows Public Utility District
- Lassen Municipal Utility District
- Lodi Electric Utility
- Lompoc, City of, Electric Division
These ESPs provide electricity to customers across California, and individuals can change their electric company at any time. The state also has Community Choice Aggregation (CCA) electricity providers, which are locally-controlled and offer residents and businesses the ability to choose renewable energy sources at competitive prices.
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Power sources
California has a wide range of power sources, including natural gas, renewable energy sources, hydroelectric power, nuclear power, oil, biomass, and geothermal energy. The state has over 1,500 power plants with a total capacity of about 80 GW. Natural gas accounts for about half of the electricity generated, with renewable sources contributing 32%, hydroelectric power 15%, and nuclear power 3%.
California is a leader in the adoption of renewable energy sources and has some of the most ambitious renewable energy goals in the United States. The state has set targets to completely phase out fossil fuels by 2045 and increase the proportion of electricity generated from renewable sources to 50% by 2030 and 100% by 2045. California is also one of the largest producers of hydroelectric power in the country, and this power source typically accounts for close to one-fifth of the state's electricity generation. However, due to strict emission laws, only one coal-fired power plant remains operational in the state.
The state's energy consumption is dominated by the transportation sector, primarily due to the high number of motor vehicles and long commutes. The second largest energy-consuming sector is industry, followed by the residential sector, which has lower per capita energy consumption than any other state except Hawaii due to California's mild climate.
California's power grid is part of the Western Interconnection, with transmission lines connecting to other states in the Pacific Northwest and the Southwest. The state's power generation averages 26 GW, ranging from 15-61 GW, with thermal generation being the largest source (36%), followed by solar (18%), wind (10%), nuclear (9%), and hydro (9%). Utility-scale solar has seen a significant increase, rising from 5% to almost 20% of the grid in the past decade. However, thermal generation has not been displaced, as gas-fired power plants can quickly ramp up production when renewable sources are insufficient.
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Exit fees
California has a multitude of electric companies, including Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric (SDG&E), and Southern California Edison (SCE). These companies are investor-owned utilities (IOUs) and are often referred to as legacy or traditional utilities.
In recent years, California has seen the emergence of Community Choice Aggregation (CCA) programs, which are locally controlled and give residents and businesses the ability to select greener, renewable sources of electricity at lower costs. Examples of CCAs include Valley Clean Energy (VCE) and East Bay Community Energy (EBCE).
When customers switch from traditional utilities to CCAs, they are charged an exit fee, officially known as the Power Charge Indifference Adjustment (PCIA). This fee is intended to compensate the legacy utility for investments made in long-term power contracts, natural gas power plants, and renewable energy sources. The PCIA also aims to equalize cost sharing between customers who leave IOUs for new load-serving entities (LSEs) and those who remain with the IOUs.
The California Public Utilities Commission (CPUC) regulates these exit fees, and in 2018 and 2019, it approved increases to the fees. The CPUC's decision was based on the argument that utilities would not be fairly compensated for their investments if the exit fee was set too low, giving CCAs a price advantage. However, critics argue that high exit fees reduce the financial incentive for customers to switch to CCAs, threatening California's renewable energy goals.
The impact of the increased exit fees has been significant, with CCAs facing financial challenges and having to make difficult decisions to manage costs. While PG&E argued that CCA customers were not paying their fair share in 2017, the increased exit fees have shifted hundreds of millions of dollars in costs from IOUs to CCAs and their customers.
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Frequently asked questions
There are more than 1,500 power plants in California, with a total electricity generation capacity of about 80 GW. California's three big utility companies are Pacific Gas and Electric Co., San Diego Gas & Electric Co., and Southern California Edison.
Here are the contact details for some electric companies in California:
- Pacific Gas and Electric Company (PG&E): (415) 973-7000
- San Diego Gas & Electric (SDG&E): (619) 696-2000
- Southern California Edison (SCE): (818) 302-1212
Natural gas accounts for about 50% of electricity generation in California, with 32% from renewable sources, 15% from hydroelectric power, and 3% from nuclear power.
Yes, you can change your electric company at any time in California. You will need to contact the utility provider where your project is located to make the change.
