Our Views: Practical Energy Policy for the Future
When it comes to public policy on energy, legislation formed today will exert implications well into the future. While our focus as a company is to safely produce and deliver reliable and affordable electricity, we’re also working to help policymakers create informed, practical public policy for California and our nation, based on a thorough understanding of associated costs and tradeoffs.
"All of us in the energy arena need to work together as never before to build a system that benefits all customers. It’s imperative that we get this right."
— Pedro J. Pizarro, CEO and President, Edison International
Extending the Benefits of the Clean, Modern Grid to the Transportation Sector
Using clean electric power as a transportation fuel is an effective way to accelerate attainment of California’s environmental goals. Electric vehicles currently reduce greenhouse gases by more than 70 percent and smog-producing air pollutants by 85 percent compared to gas-powered cars. As more renewable resources are added to the grid, electric vehicles will increasingly benefit the environment.
The natural role for electric utilities in electric transportation is delivering clean electricity to customers to fuel their EVs. New electricity infrastructure and a modernized grid will support the growth and integration of EVs; however, we must support more chargers that deliver clean and reliable electric fuel to EVs.
We have just 13 years until 2030 – the date when California has committed to meet the next phase of its GHG reduction goals. If the state, utilities, and other stakeholders do not act now, time will quickly run out to achieve these laudable GHG reduction goals. These parties cannot work alone. They must be willing to collaborate and share lessons learned, while developing programs to encourage the adoption of EVs. Given the real world timing constraints of bringing millions of new EVs on the road to meet the state’s environmental objectives, there must be a willingness to try new methods, fail fast, and move on.
Through our Charge Ready program, we are ensuring that there are more places for passenger EVs to charge away from home. We are now proposing to use this approach for commercial and heavy duty vehicles, promoting electrification of freight transportation and people movement. These projects will benefit all SCE customers, with a particular focus on “disadvantaged communities” — areas that are disproportionately affected by pollution and economic hardship, often located along transportation corridors.
Key Trends Driving Change in the Electric Power Industry
“The successful transition to the next generation electric power system requires thinking about our industry in entirely new ways.” — Pedro J. Pizarro, CEO and President, Edison International
OUR PERSPECTIVE: GRID OF THE FUTURE
Transforming the Power Grid to Accommodate New Energy Technologies
Electricity customers today want choice and flexibility in how they manage their energy. This is evident in the growth of distributed energy resources for personal use, such as private rooftop solar, energy storage, and electric vehicles. In these short clips Edison International CEO and President Pedro Pizarro explains why energy companies must transform the existing local power grid into a “plug and play” platform that accommodates and integrates these new energy technologies.
Technology is Transforming the Grid
Technology is giving customers choices about what devices they need or want to plug into the grid, and it’s the utilities job to facilitate those choices.
Customer Adoption of Solar is Growing Exponentially
The state of California has about 25 percent of the nation’s distributed energy resources. SCE is helping customers install private solar at a rate of more than 5,000 per month.
The Grid Must Be Modernized to Facilitate Customer Choice
The grid was designed for one-way flow of power from generator to customer. It must be converted to a two-way flow to enable new energy technologies.
Modernizing the Grid Requires Major Investment
SCE is investing about $4 billion a year to make the grid smarter and more robust. SCE's road map for building the grid of the future has been filed with California state regulators.
A Modern Grid Will Require New Business Models
Utilities are engaging with regulators on questions such as: “Who should operate the grid?” Our view is that the utility is the natural choice to be the distribution system operator.
All Stakeholders Must Work Together on Building the Grid of the Future
Technology companies will need to keep improving cost and performance. Regulators will need to ensure fairness in rates and cost sharing. Utilities will need to undergo a culture change. We all have to work together to get this right.