California is an American state located in the western side of the country. It is one of the most popular states known for Golden Gate Bridge, Hollywood and Disneyland. One of the lesser fortunate aspect for which the state is notorious is the high and soaring energy cost. The electricity rate and per unit price in California has been on the rise. In fact, many studies and researches have shown that the electricity prices in California are among the highest ones in the country. These high prices put extra burden on the residents of California who struggle to pay their monthly electric bills.
After the conduction of different studies it has been concluded that the people living in California who use electricity end up paying 80% more price per kilowatt hour as compared to the national average price. Until now in the year 2021, there has been a 3.7% increase in the electricity rate of California. So now the average residential Californian customer pays 138.85 Dollars every month for electricity. The Californian residents with low income that are enrolled in the California Alternate Rates for Energy (CARE) program end up paying more for the electricity as compared to the average American citizens. The cost of energy and electricity in California is increasing continuously.
There are a number of reasons that are responsible for these outrageous energy costs in California. One of the important reasons is the fact that the size and geography of California inflate the fixed cost that is required to operate the electrical system of the state. This operation includes maintenance, generation, distribution and transmission of electricity as well as public programs like California Alternate Rates for Energy (CARE).
Many residents of California have started using solar panels. Solar panels use sun rays to produce electricity. This is a cheaper and effective way of generating electricity. The individuals who use solar panels in their homes have experienced an overall decrease in their electricity bills. The installation of solar panels is an effective solution when it comes to dealing with the extremely high cost of energy in California. However, the users who use solar panels still rely on the electric grid of the state for majority of their power consumption. These users do not pay the fixed costs of electricity like other users do. This is a negative aspect that should be addressed.