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Wholesale electricity prices are usually around 10% of retail.


Which makes one wonder why PG&E is permitted to charge so much for “generation”.


You can move to Texas and sign up for retail rates from one of their lesser regulated providers, and when the temperatures drop and your energy markets spike in value you too can pay market rates to heat your home.


In fairness, there are many other states with lower generation prices than CA and that don’t have weird grid failures like TX. Those two states both seem nuts to me, especially given how many natural energy resources they’ve been gifted with.


In fairness I was answering the question of where you can get market rates. Very little of TX's grid failures in February 2021 directly affected the infrastructure to the homes, many Texas providers cut power because they could not afford the wholesale rates while offering the customers a protected monthly rate. There was a very good chance that if your provider was one of the TX providers that allowed you access to Texas's energy market, you maintained power during the freeze and paid massively for that.


PG&E's generation rates are listed as though PG&E is paying that amount on average. So I don't think this is a spot-vs-guaranteed price issue -- I think it's more like wholesale vs retail.


California doesn't have an energy market like Texas. Correct me if I'm wrong but if the price of energy spikes during a billing cycle you don't pay any extra that month as a residential customer, PG&E has to change the rates later.




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