This third webinar in the Australian Electricity Market Initiative series explored the findings from a new report from Next 10 and the Energy Institute at the UC Berkeley Haas School of Business. The paper offers solutions for more affordable, equitable and sustainable electricity to Californians.
In this webinar, Prof Severin Borenstein (Faculty Director, Energy Institute at Haas) presented new work with A/Prof James Sallee (Department of Agricultural and Resource Economics, UC Berkeley) and A/Prof Meredith Fowlie (Department of Agricultural and Resource Economics, UC Berkeley). California charges consumers for electricity on a per kilowatt-hour basis, but this price structure does not adjust to generation, transmission and distribution fixed costs, and wildfire mitigation costs, and so does not accurately follow the cost of delivering electricity to consumers. In particular, consumers with rooftop solar installations consume few kilowatt-hours, but have similar fixed costs to other consumers. California’s strategy of recovering fixed costs as part of a per kilowatt-hour electricity price need to change as the state uses more renewable electricity to power buildings and vehicles.
Dr Gordon Leslie (Lecturer, Department of Economics, Monash University), will host the event.
Watch the video
Meet the authors
Professor Severin Borenstein
E.T. Grether Chair in Business Administration and Public Policy, Faculty Director, Energy Institute at Haas
Severin has published extensively on the oil and gasoline industries, electricity markets and pricing greenhouse gases. His current research projects include the economics of renewable energy, economic policies for reducing greenhouse gases, and alternative models of retail electricity pricing. Currently, he is a member of the Bay Area Air Quality Management District's Advisory Council and a member of the Board of Governors of the California Independent System Operator.
Associate Professor James M. Sallee
Department of Agricultural and Resource Economics, UC Berkeley
James is an Associate Professor in the Department of Agricultural and Resource Economics at UC Berkeley, a Research Associate of the Energy Institute at Haas, and a Faculty Research Fellow of the National Bureau of Economic Research. He is a public economist who studies topics related to energy, the environment and taxation. Much of his work evaluates policies aimed at mitigating greenhouse gas emissions related to the use of automobiles.
Associate Professor Meredith Fowlie
Faculty Director at the Energy Institute at Haas
Meredith is an Associate Professor in the Department of Agricultural and Resource Economics and holds the Class of 1935 Endowed Chair in Energy at UC Berkeley. She is also a Faculty Director at the Energy Institute at Haas, and a research associate at the National Bureau of Economic Research. She received a MSc in Environmental Economics from Cornell University in 2000 and PhD in Environmental and Resource Economics from UC Berkeley in 2006. Her interests lie at the intersection of empirical industrial organization, environmental economics, and public policy. Her work on the electricity sector has emphasized interactions between electricity markets and emissions permit markets.
Meet the host
Dr Gordon Leslie Lecturer, Department of Economics, Monash University
Gordon’s fields of study are industrial organisation and energy economics. His current research examines issues relating to competition, policy and consumer engagement in a selection of energy and energy derivative markets.