Despite state efforts to follow the European model of state-mandated feed-in tariffs to promote renewable power, these actions won’t pass Constitutional muster. The Supremacy Clause makes a...
Carbon Costs: The Coming Battle
Where are prices going, and where have they been?
revenues with rising clearing prices, but flat generation costs. On a dollar-per-megawatt-hour basis, natural-gas units will tread water primarily by absorbing the cost but being compensated to nearly the same degree. Losers will be coal and liquid generation units that will see cost increases outstrip the increases in power prices. Coal will be hit doubly for both off peak and peak as nuclear generation comes on line, growing the “clean stack” for off-peak power and squeezing coal out of hours where spark spreads are now still strong.