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.
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.
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