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The California Energy Crisis

Download The Analyst's Report (Below)

When commodity volume remains the same, and demand increases, prices will experience an exponential rise over a relatively short period. This phenomenon, called 'marginal cost effect', is evident in the San Francisco Bay Area housing crisis. In Oakland, California, for example, between 2011 and 2015, the population, driven by the Web 2.0 job proliferation, increased by 10%. However, because of limited housing, property values went up about 66%, and rental rates roughly doubled in this same period.

10% increase in demand, static supply, 100% increase in average rental costs inside two years. 

​The same is anticipated with the California grid electric, and this threatens to have a serious impact on industrial and agricultural operations, where the power demand is considerable, where there is a substantial cost of operating, and where the profit margins can be small.

We used a marginal cost calculator, putting together 1) the population increase in California with 2) the growing demand for grid electricity, to produce 3) a kWh cost projection. There will be winners and losers in the coming Power Hunger Games.

MBS believes that gas turbines, CHP or cogeneration, will spell the critical competitive advantage for forward-thinking companies. This projection, again, presumes the accuracy of state energy entity's signals about plans to increase grid electric deliverable capacity. 

See If You're Indicated For A Gas Turbine

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Download the Analyst's Report
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MBS Engineering, Inc
License #990872

12855 Alcosta Blvd.
San Ramon, CA 94583, USA
Phone (925) 334-7200
Hours: Monday - Friday,
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  • Home
  • Services
    • Asphalt & Concrete Services
    • Gas Leak Detection & Repair >
      • Gas System Survey
      • Gas Pressure Regulators
      • Excess Gas Flow Valves
      • Leak Detection Technology
      • Natural Gas Leak Survey Glossary
    • Excavation, Trenching, Grading >
      • Excavation
    • Plumbing Services
    • Seismic Shut-Off Valve Installation
    • Private Power Generation >
      • Cogeneration or Combined Heat And Power
    • New Construction & Re-Piping >
      • Horizontal Drilling Or Directional Drilling And Directional Boring
      • Gas Bypass Line Construction
    • Custom Fabrication
    • Gas Line Maintenance
  • Regions
    • San Francisco Bay
    • Northern California
    • California Central Valley
    • California Central Coast
    • Greater Los Angeles
    • San Diego
  • Industries
    • Hotels
    • Hospitals
    • Colleges
    • K-12 Schools
    • JPAs And Insurers
    • Commercial Segments >
      • General Commercial
      • Municipal And Infrastructure Gas System Construction And Maintenance
      • Federal And Defense Gas System Construction And Maintenance
  • Resources
    • Library
    • Graphics >
      • Gas Safety Response Flow Chart
      • Gas Turbines
      • Problems With Older Gas Systems
      • How To Spot A Gas Leak
      • What Is A Seismic Shut-Off Valve?
      • How Does Natural Gas Get To Us?
      • Natural Gas Basics
      • Exercising Your Valves
      • The Road To Gas Safety
      • Sustainable Energy Comparison Chart
    • Natural Gas Free eBooks >
      • Are You Liable For A Gas Accident On Your Property?
      • Earthquakes And Natural Gas Fires
      • Natural Gas And School Safety
      • The Coming California Energy Shortage
      • JPA And Insurer eBook
  • Contact
    • Careers
    • Photo Gallery
    • Blog
    • MBS In The News
    • About MBS Engineering
    • Line Card
  • Events
  • Asphalt & Concrete Services