Energy Policy & Legislation

The outcome of the 2008 elections will determine how the nation deals with greenhouse gas emissions. With the presumptive nominees for president for both parties supporting mandatory GHG regulation, a cap-and-trade system likely will become U.S. law. How soon and how tough depends on the choices voters will make in November.

Clean-energy R&D needs better funding and leadership to meet aggressive greenhouse-gas emissions reduction targets. But how does the industry get there, and what management model best suits achieving such lofty goals? A new ‘clean-energy institute’ might be the answer.

(May 2008) Senators were voting on legislation to extend the renewable production tax credit (PTC) as this issue of Fortnightly went to press. But with federal tax support for windpower in a perennial state of limbo, is the current rate of growth sustainable? To find out, Fortnightly spoke with Andrew Redinger, managing director and head of the utility and alternative energy group at KeyBanc Capital Markets.

Perceval’s sagas are largely forgotten today, but at least one of them serves as a useful metaphor for an industry seeking the proverbial Holy Grail of clean-energy technology—specifically, the tale of Perceval and the Fisher King.

A year ago, in its formal investigation of state policy on smart meters, the Florida Public Service Commission conceded that while three of the state’s five major investor-owned electric utilities offered an optional time-of-use rate to residential customers, participation in fact remained “typically quite small,” averaging only about 1 percent.

Back in 1978, Congress passed an energy bill, the National Energy Act, including an obscure provision that seemed like an incremental tweak to U.S. energy policy. But eventually, that incremental tweak—the Public Utility Regulatory Policies Act (PURPA)—smashed through the gates of the vertically integrated utility construct. PURPA introduced competition into wholesale power markets in a way that fundamentally changed the U.S. utility industry.

Uncertainties over natural-gas prices, carbon regulation, and clean-technology alternatives are inhibiting investment in new power plants. An emissions “wargame” from Booz, Allen & Hamilton shows how companies might react to large, multidimensional changes in the generation landscape. The exercise raises strategic questions about competitive positions on the climate battlefront.

Policy mandates might erode public support for green-energy efforts, even in an environmentally conscious state like California, by frustrating consumer demands instead of allowing them to be fulfilled more efficiently. Recognizing real consumer value will help policy makers develop economically rational green-energy regulation.

As many states move toward re-regulation, we speak to commissioners in Illinois, Missouri, Pennsylvania, Texas, and Virginia to learn how policies are evolving—and how far the regulatory shakeup will go

Fundamental questions about fuel supply, efficiency standards, and environmental performance have splintered Republicans and Democrats into warring factions. As a result, the only proposals legislators can agree upon seem to be watered down half-measures.