Energy grids, like a balanced diet, need a healthy mix of ingredients to function properly. You would not feed your kids only lettuce and expect them to thrive. Yet California is doing just that with its energy system, cutting out petroleum, natural gas, and nuclear power without a reliable plan to meet consumer demand.
In recent weeks, energy experts have warned about a growing crisis in California’s oil infrastructure. Industry engineers say that the state’s crude pipelines, which carry heavy oil, are approaching a tipping point. Without steady production to keep the crude in motion, the pipelines could soon clog. Once that happens, the infrastructure will be too damaged to restart easily, leaving refineries without supply and consumers facing even higher costs.
The problem is not technical, but political. California now ranks among the most expensive states in the nation for energy. That is because politics, not markets, are determining how energy is produced and delivered.
Since 2019, California has reduced new oil drilling permits by 97%, effectively freezing in-state production. Regulatory barriers have delayed or blocked critical infrastructure projects, including storage and pipeline upgrades. At the same time, the state continues to retire baseload and dispatchable power sources such as nuclear and natural gas plants faster than reliable replacements are coming online.
The Golden State’s heavy reliance on intermittent renewables such as wind and solar creates major reliability gaps when the sun sets or the wind stalls. The results are predictable: rising costs, rolling blackouts, and growing dependence on imported energy.
According to the EIA, the average residential retail electricity price in California rose from just over 21 cents per kWh in 2013 to nearly 30 cents per kWh in 2023, an average annual increase of approximately 2.8% in real terms. With rates often in the range of 30 cents per kWh or more, California families are paying nearly double the national average of around 15–17 cents per kWh. With the average American home using about 29.37 kWh of electricity per day, that means California families are paying over $3,200 per year for basic needs like heating and cooling, water heating, refrigeration, and lighting. These high rates compound the risks tied to an unbalanced grid.
California and other states need to know there is a better way forward. The Affordable, Reliable, and Clean Energy Security Act, a model approved by members of the American Legislative Exchange Council (ALEC), provides a clear roadmap for states seeking a sustainable energy future.
This framework emphasizes affordability first, requiring energy to be stable, predictable, and cost-effective for families and businesses. It also maintains an improved standard for “clean” energy, including nuclear and natural gas, without compromising the stability of the grid or picking winners and losers in the energy market.
States like Louisiana, Ohio, and Tennessee have implemented many of these reforms in recent years. Louisiana holds the lowest average retail electricity price at roughly 9 cents per kWh, thanks to a diverse mix of natural gas, nuclear, and renewables. Ohio’s balanced energy portfolio—anchored by natural gas and supported by market competition—keeps prices near 12 cents per kWh, below the national average. Tennessee benefits from abundant nuclear and hydropower, maintaining rates under 12 cents per kWh while cutting emissions. Each demonstrates that affordable, reliable, and clean energy can coexist when states embrace balanced, pro-growth energy policies.
For California, adopting a similar approach could help the Golden State finally stabilize its grid.
Nuclear, natural gas, and other dispatchable sources remain critical to keeping lights on and pipelines flowing. Responsible integration of renewables ensures can help supplement, rather than replace, these essential sources. Without this proper balance, California’s energy system risks leaving families exposed to soaring costs and failing infrastructure.
Lora Myers is senior manager of the Energy, Environment, and Agriculture Task Force at the American Legislative Exchange Council (ALEC).