Introduction
Over
a period, the globe has experienced developments in technological and
industrial sectors. These developments have led to the realization of economic
growth among different nations. Consequently, globalization has resulted
because of economic developments. Globalization and industrial developments can
largely be attributed to the contribution of electric energy. The production of
electric energy in an economy has a vital influence towards contributing to the
economic performance. Therefore, the regulation of electricity production is
detrimental for the enhancement of economic growth. The presence of cheap and
efficient electric energy in the economy leads to innovation and invention of
new ideas for economic development. In this regard, the economy of the United
States realized the valuable contribution of electricity towards economic
development, and enhanced control and regulatory measure. The Federal
government to oversee the production of clean energy at affordable prices
mandated California Energy Commission. Because of concern for the general
public consumption of energy, California Public Utility Commission was also
formed to analyze the consumer consumption of energy and to oversee the safety
and availability of electric energy. These two commissions work together
towards ensuring economic development is achieved through the production of
clean and sustainable energy.
The
global economies have raised concerns over the increase in the production of
greenhouse gasses. The accumulation of greenhouse gasses in the atmosphere
leads to the problem of global warming. The phenomenon of global warming has
adverse effects in the performance of world economies because it leads to the
occurrence of adverse effects like the rise of catastrophes and the emergence
of hurricane Katrina. The rise for emission from firms and industries has led
to global integration to help curb the rise of emission by adopting technology.
Through innovation and invention, the plug-in electric vehicle (PEV) was
invented. This kind of vehicle uses electric energy to propel the engine. Hence, the emission of
greenhouse gases are significantly reduced because the new innovated, vehicles
do not use petroleum fuels with high carbon emission. However, the implementation of the PEV
requires that each household adopt the applicable electricity rates (Turne, 2012). The ranges of rates provided by
the California Energy Commission (CEC) are listed as E1, E6 and E9.
Electric production and
electric rates in California
The
state of California has implemented development strategies that will enable is
micro economic development. The increase in the performance of firma and
industries has significantly influenced its industrial growth. The sole
provider of gas and electric energy in the state of California is pacific gas
and electric company. This company is responsible for the production and supply
of energy to the state of California. The managers of the company have realized
that diversity in the production has an influence in profit increment.
Therefore, they have diversified their production by producing different rates
of electric energy to suit the demands of their customers. In a bid to supply,
the diversified consumer demands markets, pacific gas and electric energy
produces consumer rates classified as E1, E6 and E9. These diverse rates are
aimed providing electricity utility to the diversified consumer demands. All
the electric rates mentioned above denote to domestic electric consumption.
Because
of advancement in technology and the need to reduce global warming, the Plug-in
Electric Vehicles are being implemented in California State. The implementation
of this technology requires the adoption of electricity rates that will ensure
reduction in the cost of annual electricity consumed. Because of this, the
pacific gas and electric company developed electric rates choices to suit the
demands of their customers based on recharging time and the amount of
electricity required. The development of electric vehicles reduces the emission
of carbon into the atmosphere by employing the use of electric energy to propel
the vehicles. The development of this technology applies the use of
rechargeable batteries to power the vehicles. The vehicles are charged at home
by domestic electric energy supply. Hence, the development of E9A and E9B
electric rates for diversity in electricity adoption.
The
electricity rates adopted for the electric vehicle use have different
specification and customers will choose they desired rates. E-9A rate design
provides single meter for home and PEV usage. This rate provides for the
presence of one baseline that is shared between home and the PEV. Because of
this, rate is ideal for low energy that is mostly used during off peak hours.
The costs of this tariff are non-specific to rate because of the variations in
the specifications.
Domestic
consumers may also opt for the adoption of E9B tariff rate for the enhancement
of technology. This tariff rates provide for the presence of dual meter and PEV
on time use. In addition, this tariff has provision for two baselines
accounting for domestic use and the other baseline for PEV use. Because of
this, this system is ideal for high-energy usage during peak hours. The
installation of this system requires a fee of $250 dollars per miter and the
corresponding panel installation and upgrading fee (Turne, 2012). The availability of these two power options
provides the domestic consumers with a choice of power plans for the
enhancement of PEV technology.
CEC and CPUC consumer
electric energy policy
The
regulation and drafting of policy towards the management of electric energy in
California has remained the duty of California public utility commission. This
commission works together with
California Energy commission to draft and implement energy policies at
the regional and federal levels. The management of energy is vital for the
implementation of the clean energy. With the increasing concern for global
warming, the energy regulatory boards have resolved to resort to the energy
regulatory measures. The energy regulatory policy spells the conditions to be
satisfied for the implementation for the implantation of the clean energy to
reduce green gas emissions. The energy policy is subdivided into various
segments that must be fulfilled at different levels by different participants.
Policy towards the
establishment of clean energy infrastructure
The
energy policies suggested is aimed towards improving the energy infrastructural
network to meet both current and future energy demands. The policy aims to
establish reliable, efficient, and clean energy demands to meet the growing
industrial energy demands. This energy policy does not advocate for the construction
of new electric factories to meet the increasing demands, but it advocates for
the increase in efficiency and modernization of the existing plants and
factories. Increasing the efficiency of plants and plants will reduce the
amount of energy wasted and result in high-energy production. This policy was
enacted to increase the processing efficiency in plants. Because of the
realization of wastages in gas pipes, the policy will standardize gas
production and increase reliability in the energy productivity.
Adoption of renewable
energy
The
policy towards improvement of energy resources also stipulates the necessity to
adopt other sources of energy. For a period, a study has been conducted towards
to analyze the incorporation of alternative sources of energy that can produce
clean energy for the industries efficiently. The imprecision of renewable
energy will reduce transportation fuel and enhance reduction in the emission of
green house gasses. This method will be cost effective because all the
buildings will be renovated to ensure that they meet the energy regulation
requirements. This policy states that the all the buildings attain a zero
emission rate to help in curbing the energy loss.
The
government regulation committee has collaborated with CEC and CPUC to ensure
production of clean energy. The production of clean energy has significant
influence on economic development because it ensures optimum performance of the
economic agents. Because of the modernization of buildings and structures to
ensure zero energy loss, the commissions have been vibrant in ensuring that the
efficiency of production is enhanced through energy production initiative.
These energy policies have led to the enhancement of clean energy in and
minimization of global warming. An alternative transport system has been
discovered, and efficiency in economic agents has been achieved.
Consequences of the consumer
electric energy policies
The
directive by the federal government to enact energy policies has resulted in
radical changes in the economy of California. The government has realized the
rising demand for electric energy because of the invention of electric
vehicles. In order to enact changes to the economy, the government enacted
these policies by devising different tariffs that serve consumer needs. Because
of diversity in consumer specifications, the energy policy regulations have
invested in the production of tariffs that enable the domestic consumers to use
Plug-in electric vehicles.
The
development of PEV was geared towards the establishment of clean energy and
reducing the amount of green house gas emissions. Green house emission is
reduced with the reduction in the use of petroleum fuels. The policies
stipulated by the government aims at encouraging the production of PEV to reduce
green house gases. As the quest, for alternative energy increases in the globe,
the enactment of PEV is underway in the state of California. Furthermore,
modernization of buildings will ensure that the buildings become energy
efficient thereby increasing efficiency and reliability (Turne, 2012).
The
enactment of the energy policies has the consequence of ensuring that the PEV
technology is operational. The energy policies and developments of different
domestic tariffs rates are beneficial and contribute towards implementation
because consumers can choose their preferred tariff. The policies also have a
consequence of enhancing energy reliability and efficiency in the state. With
the increase in reliability and energy conservation, the planners can adopt the
use of electric passenger vehicles because of the availability of efficient
energy and the presence of alternative energy sources.
Conclusion
Energy
producing company in California has initiated plans to embark on the
implementation of PEV. The establishment of domestic electricity tariff rates
to suit the consumers demand is in accordance with CEC and CPUC policy
requirements. The energy producer has complied by availing new energy
alternatives and establishing reliability to enhance zero energy waste. In
accordance with policy requirements, PG&E’s rates have been revised to
include the modification of tariffs, development of new energy sources and
realization of energy conservation and efficiency.
References
Turne,
M. (2012). Energy Commission awards electric vehicle planning grant. Sacramento
Business Journal , 108.
CPUC Website (2012). Retrieved on 25th
Feb from www.cpuc.ca.gov
PG&E’s website
(2012). Retrieved on 25th Feb from www.pge.com
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