The key(s) to cutting electricity bills

Electricity prices are rising at over twice the rate of inflation, and are set to increase even further amid data center development and the Trump administration’s double-down on fossil fuels. Fortunately, state and local lawmakers have the authority to act right away to save consumers money. The key responses:

1) Cut utility profit rates by reducing their return on equity. Utilities earn several percentage points more on their low-risk investments than companies in any other economic sector.

2) Address the root of the problem by restructuring the grid planning process to reduce utility monopoly power. We need a grid operator that prizes public service over private profit.

3) Unleash local solar and storage through streamlined permitting, faster interconnection, and virtual power plant programs that compensate consumers for providing grid services.

Inspiring actions to serve community

Three states grew their community solar capacity significantly since last quarter: New Jersey, New York, and Oregon. New Jersey again leads in quarter-over-quarter growth with 16% (35 MW) followed by Oregon (8%, 7 MW) and New York (4%, 112 MW). Each of the projects built under these programs provides direct bill reductions for participants, and feeds new, clean, affordable power into the grid.

We need more solar and storage projects everywhere, but the project on a laundromat on the Pine Ridge Reservation meant much more to the community than just clean, affordable power. It meant figuring out unique challenges like electricity capacity and water pressure, in addition to factors that challenge typical projects in urban areas, from permitting to interconnection. In the end, it means access to reliable energy and clean clothes, both in short supply before the project was completed.

THIS THURSDAY: The tools and strategies that actually work

If you want some more uplifting news, sign up to join or receive the recording of ILSR’s June 4 webinar about local solutions amidst the federal clean energy rollbacks. Three terrific local leaders join ILSR staff to talk about how they’ve advanced energy self-reliance through local action. Joshua Cox will share about the remarkable community lighthouse solar and storage project in New Orleans, former city councilmember Katie Cashman will discuss utility franchise negotiations in Minneapolis, and Councilmember Sean Elo-Rivera will tout a utility-paid low-income solar program in San Diego.

John Farrell
Co-Director, Institute for Local Self-Reliance