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By Jesse Berst

At least one U.S. Senator wants to change that. Senator Jeff Bingaman of New Mexico has introduced the Clean Energy Standard Act of 2012. The bill sets standards that gradually ratchet up. But it lets utilities decide just how to meet those standards and provides incentives for meeting them. Bingaman told Platts Magazine that "our system of on-and-off tax incentives has not proven to be the sort of sustained signal that is needed in order to unleash innovation in the marketplace."

NextEra Energy Chairman and CEO Lew Hay was quick to applaud the bill and the flexibility it provides to utilities. In a prepared statement, he said: "Over the long term, an 'all of the above' approach will produce electric bills that are as low as possible, while ensuring high reliability and fewer harmful emissions."

"Senator Bingaman's bill provides the right incentives for the nation's electric utilities and equipment manufacturers to create good, high-paying jobs for American workers and for private capital to accelerate investment in innovative energy technologies," he continued. "The bill's market-oriented standard would allow many different types of fuel sources to be competitive, while rewarding innovation, early action, efficiency and project execution."

What are the bill's prospects in today's do-nothing Congress? About the same as seeing pigs flying through frozen hell. But Bingaman does have hopes the bill could move forward after the election in November.

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Jesse Berst is the founder and chief analyst of Smart Grid News.com. He consults to smart grid companies seeking market entry advice and M&A advisory. A frequent keynoter at industry events in the US and abroad, he also serves on the Advisory Council of Pacific Northwest National Laboratory's Energy & Environment directorate.

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