Fortnightly Magazine - July 2011

Pricing the Public Good

Weighing green energy’s costs and benefits.

Policies aimed at promoting one good thing can diminish a better thing, for a net loss to the overall public welfare. Raising prices to promote renewables, for example, makes electricity less affordable and hurts the economy. But artificially low prices can themselves create social ills — by preserving an unsustainable status quo.

Cali Gets it Right

Not your father’s feed-in tariff.

The industry has struggled to craft a feed-in-tariff (FiT) structure that works for solar generators and utility customers, with mixed success. But now, the California Public Utility Commission might have found an approach that other states can replicate. CPUC’s FiT mechanism recognizes the value proposition of solar energy, and uses market forces to drive economic improvements, especially for distributed solar projects.

People (July 2011)

Xcel Energy names new president and COO; Pacific Gas and Electric adds new senior v.p. and chief information officer; NorthWestern Energy appoints new members to executive management team; plus senior staff changes at Constellation Energy, Alliant Energy, GDF SUEZ, and others.
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