Xavier Becerra Wants To Give Californians A Free Electricity ‘power Hour’

SACRAMENTO, California — The front-runner to become California’s next governor said he wants to give free electricity for part of the day to families struggling to cover their costs.

Democratic candidate Xavier Becerra on Tuesday announced an initiative he called his “power hour” that would give lower-income families a daily two hours of free electricity and relieve pressure on the power grid at the same time. He rolled out the proposal on stage at POLITICO's The California Agenda: Sacramento Summit.

“We already do programs for folks, for Californians, who can’t afford their electricity bills,” Becerra said. “We can use some of that money to not just give them a break in their bill, but also [incentivize] them to be smart about when they use energy.”

The new policy platform signals that Becerra is trying to tap into a similar vein as his Republican opponent Steve Hilton: widespread frustration with California’s high electricity costs. Energy bills have been an animating issue in the race to become the next leader of California, with Becerra’s now-defeated primary challenger Tom Steyer repeatedly bashing power companies as a centerpiece of his message.

Becerra’s proposal would take advantage of an oddity of energy markets that has emerged as solar power has become a major producer across the globe.

In solar energy hubs, when the midday sun is shining but energy demand is relatively low, wholesale electricity prices can dip into the negative. That means power companies have so much excess energy that they’re willing to pay people to take the energy off their hands.

In July, several Australian states made international headlines when they implemented a similar program to what Becerra is proposing, offering three free hours of electricity during the day. The goal is to incentivize customers to shift their energy use to the midday window when solar energy is abundant, relieving the stress that hits the grid in the early evening when solar production ends but demand is high.

Becerra laid out a similar argument for his new proposal.

“We produce a lot of energy during the hot hours because the sun helps us produce solar energy, take advantage of it,” Becerra said. “The best way to get you to readapt, to recalibrate, is to tell you, ‘The best time for you to use electricity today, 1 [p.m.] to 3 [p.m.], and if you do that, I won’t charge you.’”

The candidate said that he thought he could put the initiative into action within his first year in office, and that he would work with the California Public Utilities Commission to do so.

Exactly how much actual energy savings the program will offer Californians would depend largely on how the program is designed.

In Australia, residents who opt into the three free hours of electricity have to accept higher prices during other parts of the day. People who charge batteries and strategically use their major appliances during the free window are able to save money, while those who do not could pay higher overall bills.

Becerra didn’t detail how his proposal might impact electricity rates during other times of the day, but did make clear that he wanted to encourage residents to use their energy while the solar fleet is at full blast.

“Charge your devices, wash your clothes, wash your dishes, use your electricity during those two hours; I won’t charge you a dime,” Becerra said. “I think we can get Californians to recalibrate.”