SACRAMENTO, Calif. (AP) — The California Legislature voted Thursday to give Democratic Gov. Gavin Newsom’s administration permission to buy massive amounts of electricity, a move aimed at avoiding blackouts by shoring up the state’s power supply while jump starting the West Coast’s fledgling offshore wind industry.
Five companies paid roughly $750 million last year to lease areas off the California coast to build wind turbines. Collectively, those projects could generate enough electricity to power 3.5 million homes, helping the state avoid blackouts during extreme heat waves that have routinely strained the electrical grid of the nation’s most populous state.
But so far, the state’s largest utility companies have not been willing to commit to buying power from projects like those because it would cost too much money and take too long to build. In addition to building the wind turbines, the projects will require improvements at the state’s ports and new power lines to transport the energy from the ocean to the land.
“This is a major, generational series of investments that need to happen, and there’s a real risk it won’t if we can’t provide more certainty,” said Alex Jackson, director of American Clean Power Association, which represents the companies trying to build the wind projects.
The bill would let the state buy the power. The money would come from a surcharge imposed on Californians’ electricity bills. State regulators would decide how much this charge would be. Consumers would not pay it until the wind projects are up and running, likely several years from now.
California already has among the highest electricity rates in the country.
“This legislation … means that every single ratepayer in California, no matter where you live, is going to pay for this,” said Republican state Sen. Brian Dahle, who opposes the bill.
Supporters argue the bill will save people money in the long run on their electric bills. California has a law requiring all of its electricity to come from renewable or non-carbon sources by 2045. To do that, supporters say the state will have to invest in offshore wind projects, which typically generate the most power at night when solar energy is not as abundant.
