Over the last 20 years, energy systems and services have expanded. California now meets its energy needs using a variety of sources from traditional fossil fuels and nuclear technologies to renewable energy resources, such as wind, solar, geothermal and biomass. Technological advances and government standards and programs have resulted in increased energy efficiency, more product and service options and a cleaner environment. Deregulation has promoted competition in energy commodities such as oil, natural gas and, now, electricity.
In the near term, the most dramatic changes in the energy sector are taking place in the electricity industry. As a result of Assembly Bill 1890 (Chapter 854, Statutes of 1996), many Californians will have the opportunity to choose their electricity provider as of April 1, 1998. By January 1, 1999, they will also be able to shop for other electric services, such as metering options. 46){{U}}Because of these changes, this California Energy Plan emphasizes the new competition in electricity generation, in contrast to the discussion of issues in the petroleum and natural .gas sectors. However future state energy policy may emphasize other sectors.{{/U}}
Competitive Energy Markets. California's energy oversight agencies must facilitate competition to ensure that the promise of lower prices and more value-added services are realized. 47){{U}}This can be achieved through adoption and enforcement of fair, clear and effective market rules and by ensuring that consumers are provided with sufficient information to make informed energy-related decisions{{/U}}, Government must also reduce unnecessary barriers to market entry and streamline the licensing process for electric generation facilities.
Economic Expansion. California has one of the largest economies in the world. 48){{U}}Consequently, California's economy must be robust in the face of uncertainty, providing for economic growth in conjunction with environmental protection for today and for future generations{{/U}}. Maintaining the energy needs of today's economy requires vast quantities of reliable energy at reasonable prices. To maintain or expand California's excellence as a world class economy requires technological advancements that enhance productivity and improve the environment.
In the energy industry, technological advancement must focus on increasing, demand and supply side efficiencies, improving the environment by creating cleaner energy conversion technologies at all levels of energy production and end use, and satisfying California's mobility requirements through diverse transportation technologies that increase fuel economy, take advantage of cleaner fuels and expand transportation options. 49){{U}}Advancements in-these areas, among others, will make California a global leader in the world marketplace for energy technologies while benefiting all Californians.{{/U}}
Public Interest. Competition does not provide all the answers to California's needs. Unlike certain commodities, energy is essential for the health and safety of all Californians. Thus, the state must ensure that the energy infrastructure is safe, clean and reliable. The public interest also demands that energy be available for home, work, recreation and transportation. 50){{U}}Communities can help meet these public interest demands through efficient land use designs that reduce total energy demand and the adverse environmental impacts of energy use{{/U}}. California's energy oversight agencies must continue to work together to avoid, where possible, disruptions to the state's energy supplies and to minimize any adverse impacts.