State attorneys general target energy policy issues.
As energy issues take center stage in the policy debate, state attorneys general increasingly are using their political influence and legal authority to affect a wide range of areas—from greenhouse-gas emissions to siting and development of infrastructure projects. Working constructively with state AGs can help utilities avoid becoming targets of investigation and litigation.
Policy and technology changes are re-shaping the utility business model.
A once-in-a-lifetime confluence of forces is re-shaping the business models of America’s electric utilities. Rising costs, combined with technological advancements and shifts in regulatory policy, are putting unprecedented pressure on companies that depend on market conditions. Those that adapt to the new realities will be better positioned for success in the future.
The industry debates how far FERC should go.
Since the Energy Policy Act was enacted in 2005, the domestic power and gas industry has experienced several years of FERC compliance enforcement history. Including the settlements entered into in 2007, total penalties levied and agreed to by companies are close to $100 million over the past two years. Given the high stakes, some industry stakeholders have suggested that FERC could provide more comprehensive guidance on what it means to have an adequate compliance program and what constitutes that compliance.
State GHG policies confront federal roadblocks.
So far, states have taken the lead in carbon-control strategies. These state actions, however, could lead to constitutional conflicts—as recent court battles demonstrate. Only the U.S. Congress can regulate interstate trade, so states must step carefully in controlling carbon leakage.
FERC’s ROE incentive adder policy sends the wrong signals.
FERC is offering incentive rates to entice transmission investment. But the authors identify serious flaws in emerging policy regarding return on equity (ROE) incentive adders. Determining whether and when ROE adders are appropriate requires a more deliberative approach.
An integrated approach could prove more effective for controlling emissions.
Despite political challenges, the EPA and Congress have made strides toward a more coherent and integrated approach to regulating air emissions. The time is right to reach consensus on a multi-pollutant strategy.
A clear and present need for nuclear energy expansion.
Addressing climate change will require extending the life of today’s nuclear fleet and laying the foundation for new plants.
Utilities consider imposing a retail surcharge to fund clean-tech R&D.
Utility CEOs debate the merits of a retail surcharge to fund clean-tech R&D.
A clear and present need for nuclear energy expansion.
The new administration might be our last, best hope for recapturing America’s technological and economic superiority. The time has come to institute an “Apollo Project” level of effort to convert to a carbon-free energy infrastructure while tossing aside the business-as-usual model. The future lies in nuclear power.
A “clean” bill on carbon tech won’t stay clean for long.
An interesting development in the climate change debate occurred this summer in the U.S. Congress. It wasn’t the Senate’s work on the Lieberman-Warner Climate Security Act; that was a complete palaver and an embarrassment for American democracy. No, it was a bill quietly introduced by Rep. Rick Boucher (D-Va.), chairman of the House Energy & Air Quality Subcommittee.