(p. B9) As California keeps facing electricity shortages, the discussion around its grid often veers to extremes.
. . .
Should California . . . have shut down less natural gas and nuclear power? That is definitely part of the issue, and future shutdowns might need to slow.
. . .
. . . at least some of the shortage is addressable through market rules.
For example, California has a hard import bid cap of $1,000 per megawatt hour. Christopher DaCosta, regional director of western power markets at Wood Mackenzie, says that surrounding areas have a softer cap and are able to pay more. During this summer, that meant power plants often rerouted electricity to higher bidders than California.
For the full commentary, see:
(Note: ellipses added.)
(Note: the online version of the commentary has the date Sep. 16, 2020, and has the title “How to Keep the Lights On in California.”)