Latest news with #CaliforniaEnergyCommission
San Francisco Chronicle
17-05-2025
- Automotive
- San Francisco Chronicle
So many buyers are shunning Tesla that it's hurting California's EV goals
New Tesla sales in California dropped 21% in the first quarter of this year, according to data from the California Energy Commission, while sales of other types of electric vehicles went up by 14%. Together, those shifts meant that EV sales overall decreased very slightly — 3% — year-over-year. The trend jeopardizes California's goal to have zero-emission vehicles constitute 35% of new car sales by 2026. It's also a sign of tumult for Tesla. Although the company's cars accounted for just under 40% of all new zero-emission vehicle sales in the first quarter of 2025, Tesla's share of the market decreased substantially since the first quarter of 2024, when its products made up nearly half of new sales. That's unusual for a brand that has a five to ten year head start over its competitors, said Bill Pearce, a marketing expert at UC Berkeley's Haas School of Business. Market leaders tend to see slower growth over time, Pearce said, as more competitors come in. But generally, sales still go up. Tesla's unraveling offers a stunning object lesson — either on how to destroy a brand, or how to completely change its meaning. For years, people bought Teslas not only for their clean fuel and reliability but because they signified certain values, Pearce said: care for the environment and humanity; faith in technology; a desire for progress. Such brand recognition was especially powerful in the Bay Area's liberal cities and suburbs where Teslas packed the roads. Now, many consumers associate the cars with the company's polarizing chief executive, Elon Musk, a top advisor to President Donald Trump. Musk headed efforts to eviscerate federal agencies while also promoting right wing priorities, including a recent push for the resettlement of white South Africans. As a result, choosing whether or not to buy a Tesla has itself become a political statement — one that's borne out in the data. Sales of the car seem to be dropping most sharply in blue regions, including in the Bay Area. Alameda, Sonoma, Contra Costa and San Francisco counties all saw drops of more than 25%. In each of those counties, overall zero-emissions vehicle sales fell by 3-4%. In Yolo County, home to left-leaning Davis, a 37% decrease in Tesla sales drove a 25% drop in EV sales overall, the largest in the state. Other California counties saw increases in Tesla sales — Stanislaus and Kern counties saw 34% and 13% increases respectively. Trump won both counties in the 2024 election. Consumers 'are having a hard time separating (Musk), the CEO and Tesla evangelist, from the brand,' Pearce said. Some have gone so far as to trade in their Teslas at a financial loss. Others are plastering their cars with 'Anti-Elon' bumper stickers to distance themselves from Musk. In a press release, the California Energy Commission wrote that 'consumers are buoyed by more choices' in the EV market, with 147 models available this year, compared to 105 models available at this time last year. Electric vehicles made up almost a quarter of new cars sold in California in the first three months of the year. Several of the next top selling electric vehicle brands saw increases compared to the first quarter of 2024. The second top seller was BMW, which saw a 26% increase from the first quarter of 2024 to 2025. Mercedes-Benz, the third highest, saw a 7% increase, and Ford saw a 24% increase. Rounding out the top five, Hyundai saw a 6% increase. 'Mercedes and BMW could leap frog Tesla,' he predicted. 'It's going to be about technology. BMW is about driving. Mercedes is about luxury and comfort. They can win on those aspects.' Moreover, he added, any brand of EV can convey the owner's concern for the environment. To Brian Maas, president of the California New Car Dealers Association, the sputtering demand for Teslas underscores a larger problem for the EV market: that consumer interest can't keep pace with California's ambitious environmental goals. His group is pressing regulators to pause the state's mandate that zero-emission vehicles comprise 35% of all new car sales in 2026. 'Overall EV market share needs to be growing substantially in order to meet the mandate that the Air Resources Board has set,' Maas said. 'And it's not.' Yet California Air Resources Board Chair Liane Randolph said in the press release that the board was 'undeterred' by the slowdown in the EV market this quarter, calling it a 'normal, anticipated part of the technology adoption cycle.' She noted that the market remained strong despite Tesla's drop, and that 'many new offerings are experiencing encouraging consumer uptake.'
Yahoo
13-05-2025
- Business
- Yahoo
CA Oil Refiners Profit Margins Tick Up In February As They Exploit Refinery Outage To Make More Profits, Said Consumer Watchdog
SACRAMENTO, Calif., May 13, 2025 /PRNewswire/ -- New data posted by the California Energy Commission shows oil refiners making an average 80 cents per gallon in gross refining margins as of February, when a fire at a PBF refinery in Northern California stopped gasoline production at the facility. The growing gap between US and California gasoline prices over the last two months suggests the margins are even greater for refiners in March and April. "The Northern California outage created a profit taking opportunity for oil refiners and they are reporting to shareholders that the planned closure of two refineries in the next year will yield greater profits due to reduced supplies," said Jamie Court, president of Consumer Watchdog. "California needs to speed the plow on getting minimum inventory and resupply regulations in place. Refiners are reporting to their shareholders a pull back on California refinery regulation that could cause consumers much pain at the pump this summer and beyond. Governor Newsom needs to make good on his commitments for oil refiner accountability and put the regulations implementing his special session reforms in place." The Energy Commission has yet to calendar the minimum supply regulations despite previously saying they would be in place by summer. The refinery margin data was recently updated by the California Energy Commission (CEC) pursuant to SB 1322 (Allen), which required monthly reporting of refining margins with approximately a two month lag, but the CEC had fallen behind on timely posting. The Energy Commission data shows that last year oil refiners made an average margin of 70 cents per gallon. In 2023, the year the legislature enacted Governor Newsom's session oil refiner accountability reforms, the gross margin averaged $1.01 per gallon. "California oil refiners are making healthy profit margins by any historical measure," said Court. "The operational cost of running a California refinery, as reported to the Securities Exchange Commission, is approximately 20 centers per gallon, so a gross refinery margin of 80 cents means a refinery is taking home about 60 cents on every gallon of gasoline that is refined. A gross refining margin measures the difference between the wholesale price of gasoline and the cost of crude oil that made the gasoline." In recent shareholder calls refiners were optimistic about the California refining market. Chevron: "Q: With the recently announced competitor closures of refineries. How are you thinking about your position there? Mike Wirth, Chairman and CEO, Chevron Corporation: Yeah, we've got a strong position. We've got two refineries that have good scale, good complexity. We've got strong integrated value chains with a strong brand in the marketplace" PBF: "Matt Lucey, President and CEO, PBF Energy: I actually think there's been recognition in the state, certainly in the last couple months, how critical our products are for the well-being of the people within the state. And indeed, not only how important they are, but indeed the recognition that they're gonna be in demand for many decades to come. And if you go and look at the state's numbers…the announced closures, by next year, we see the market short 250,000 barrels a day of gasoline or over 250,000 barrels a day of gasoline, which will force the market to attract higher cost imports….I have been more than pleased and encouraged by the recent conversations we've had. Words like we need to work collaboratively, which is somewhat unthinkable not too long ago…. So, I've been encouraged by the state…we have a team embedded there….I've had a number of conversations with them. And so, you know, at the moment, I believe our refineries are well positioned to not only deliver the low-cost products that the state is desperately gonna need going forward, but just to provide strong returns and results for our shareholders." View original content to download multimedia: SOURCE Consumer Watchdog Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
08-05-2025
- Business
- Miami Herald
California's power grid looks steady heading into summer but risks remain
Business California's power grid looks steady heading into summer but risks remain California energy officials say the chances of major power outages are relatively low as the state heads into what could be another broiling summer, but they are quick to add that any number of variables could upend the outlook. "Extreme or sudden onset events could still create tight grid conditions, especially if they are coincidental with a heat wave and (a potential) wildfire knocking out critical generation," said California Energy Commission vice chair Siva Gunda. "We feel prepared for the summer but remain cautiously optimistic and vigilant." Stress on the California's power system during the summer has been a source of concern in recent years, especially after utility customers across the Golden State experienced rotating power outages mid-August 2020 - and narrowly avoided repeats in 2021 and 2022. The 2020 outages saw some areas of the state blacked out up to 2 1/2 hours. California has committed to derive 100% of the state's electricity from carbon-free sources by 2045, resulting in massive amounts of renewable energy sources (such as solar power) pouring into the grid. Managers at the California Independent System Operator have to constantly balance the supply of power coming into the system with demand. In the early evening hours, the megawatts produced by solar quickly diminishes as the sun sets. Grid operators must replace that with power from other energy sources in real time to keep the lights on. The balancing act becomes more difficult in the summertime, when people keep their air conditioners running at the same time that solar production plummets. Extra power coming online In a briefing with reporters last week, energy officials said the outlook this summer looks good in large part due to added supplies. More than 7,000 megawatts of capacity came online in 2024, giving grid managers more cushion. Since 2021, 20,000 megawatts of new sources have been added. Of that total, battery energy storage accounted for 13,000 megawatts. "These are resources that will help support reliability needs in California for years to come, not just to meet expected growing demand but also to cover contingencies like extreme weather and unexpected power plant outages," said Alice Reynolds, president of the California Public Utilities Commission. Among other contributors: -The recent decision to extend the operations of Diablo Canyon, the last remaining nuclear power plant in California that generates 2,240 megawatts of electricity, or 9.34% of the entire state's power mix, and -The California ISO coordinating with grid managers in other states to bolster reliability through programs such as the Western Energy Imbalance Market that allows partners to automatically find low-cost energy to meet consumer demand in real time across the large geographic area. During a recent call with reporters, a slide from the California Energy Commission offered a projection for this summer. The outlook showed 63,765 megawatts of total available resources, more than enough to cover 46,152 megawatts of total demand - although it added a caveat that the figures do not include the risk of wildfires impacting generation or energy imports coming into California from neighboring states. "The reason wildfires are a risk is because (they) can take out and impact large amounts of supply or transmission that is bringing supply from other parts of the system to California," said Cal ISO Chief Operating Officer Mark Rothleder. That's what happened in July 2021. The Bootleg fire in Oregon tripped a major transmission line called the California-Oregon Intertie that carries imported electricity from the Pacific Northwest into California. Fire and weather make things worse The combination of wildfires and extreme weather conditions such as a prolonged heat wave occurring at the same time amount to what energy officials call a "coincidental event," which sounds a bit bland but can push the grid to the edge. The rotating outages in 2020 and the close calls in 2021 and 2022 each came when temperatures throughout California soared in late summer. Prolonged hot weather can also hamper the output of natural gas plants, utility substations and other infrastructure carrying electricity if the equipment doesn't have a chance to cool off in the evening hours. "It was a very close call in 2021 because of the (Bootleg) fire," Gunda said. "And then in 2022, we had 10 days of really hot weather across the West. There were multiple days of extreme heat across a large geographic footprint and it put an enormous stress on the grid." The long-range weather forecast indicates a decent chance of higher-than-normal temperatures in early part of the summer. A hot start may melt the snowpack in the Sierra Nevada Mountains early and lead to grasses drying out more quickly, which could elevate the risk of fire. On the other hand, while the forecast shows an increased chance of above-normal temperatures for the interior of California, the risk for higher-than-normal temperatures along the coast appear to be lower this summer. When the grid is under heavy strain, the California ISO sometimes issues statewide flex alerts - asking utility customers to voluntarily reduce consumption, typically in the late afternoon and early evening hours. In 2022, a "heat dome" that blanketed California and neighboring states in late August through early September prompted the system operator to issue a record 10 consecutive days of flex alerts. On Sept. 6 of that year, demand in the California ISO system reached its highest mark ever at 52,061 megawatts as utility customers tried to stay cool. No flex alerts were issued in all of 2023 and 2024. But the National Oceanic and Atmospheric Administration reported that last year California set a state record for its warmest "meteorological summer" that runs from June through August, based on data going back 130 years. What happened in Spain? Last week's briefing came just four days after power systems in Spain and Portugal suffered a widespread outage that took about 23 hours for the grid to return to normal service. Officials are still trying to figure out the root cause of the blackout that saw 15,000 megawatts of electricity suddenly vanish within five seconds. About 35,000 stranded passengers had to be rescued from railways and underground tunnels, emergency workers said. Like California, Spain has made a rapid transition to renewable energy sources. About five minutes before the outage, it was reported that 78% of the country's grid was running on a combination of solar and wind, leading to debate about whether Spain's power system has become too reliant on renewable energy sources that can be affected by variables such as weather, rather than conventional sources such as natural gas or nuclear power. "There was an imbalance of supply," Jorge Sanz, a former energy official in Spain and board member of the International Energy Agency, told a Spanish TV station, the Financial Times of London reported. Sanz said an oversupply of electricity may have caused the initial problem and the grid operator could not ask traditional power plants to moderate their outputs because so few plants were online at the time. Though the root-cause analysis may take weeks, Spanish Prime Minister Pedro Sánchez and the top executive of Spain's grid denied that renewables made the system more vulnerable. "Linking what happened … to renewables isn't correct," Beatriz Corredor, president of the country's system operator said. "Renewables work in a stable way." When asked if utility customers should worry about something similar happening in the Golden State, Rothleder of the California ISO said there are "many mechanisms to monitor the security of the system and ensure we are operating well within operating parameters to ensure that there is not a large outage or a cascading outage along the lines of what appeared to happen in Spain." Rothelder added, "We'll monitor what comes out of the investigation of the Spain outage and assess if there's anything new to learn from that." The California ISO manages the flow of electricity across high-voltage, long-distance power lines that make up 80% of California's and a small part of Nevada's grid. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers. This story was originally published May 7, 2025 at 8:51 PM.
E&E News
07-05-2025
- Automotive
- E&E News
States sue Trump administration over effort to block EV chargers
California is leading a lawsuit against the Trump administration's efforts to block a $5 billion effort to build electric vehicle charging stations across the country. California Attorney General Rob Bonta (D), Gov. Gavin Newsom (D), the California Department of Transportation and the California Energy Commission planned to announce the lawsuit at a press conference Wednesday. The suit said the administration is unlawfully withholding billions of dollars that were approved by bipartisan majorities in Congress for EV charging infrastructure. Advertisement The Federal Highway Administration (FHWA) in February issued a directive to thwart the National Electric Vehicle Infrastructure (NEVI) formula program, which is aimed at expanding EV charging nationwide. The suspension halted the approval of new state EV infrastructure plans and froze the distribution of federal funds to states.
E&E News
07-05-2025
- Business
- E&E News
Oil industry ad campaign presses California lawmakers on affordability
The Western States Petroleum Association launched a seven-figure ad campaign Monday calling on state lawmakers to pledge they will not vote for policies that increase gas prices. What happened: The powerful group, which represents major oil and gas companies like Chevron, Exxon Mobil and Shell, along with regional operators, announced the campaign after television spots hit airwaves last week. The campaign, which includes TV and digital ads, directs viewers to a website where they can send a letter to state lawmakers and local officials. Advertisement 'Right now, nearly 30 percent of the per-gallon price of gasoline is due to taxes and fees, according to the California Energy Commission,' the letter reads. 'I urge you to oppose any policy that would increase that percentage.'
