A similar story is playing out all over California. The California Energy Commission and the California Public Utilities Commission have put the brakes on recent projects while they revaluate if they’re actually necessary. The argument against building new natural gas plants or refurbishing existing ones isn’t just about the environmental impact of such projects. There are also practical financial reasons for putting these projects on the backburner.
Added Expenses of Over Capacity
California has been running over capacity in the energy sector for a number of years now. The costs of trying to deal with this extra capacity are driving up prices for the average resident instead of reducing them. The state actually has to pay other states to take their extra capacity at times so that the system doesn’t overload. There doesn’t appear to be any need for new natural gas plants to come on line, especially with more renewable projects being introduced as California moves closer to its clean energy targets of 2020 and 2040.
