By Jesse Berst

 

Just as utilities are beginning to get a handle on the new EPA rules and the impacts of ultra-cheap natural gas, proposed new legislation could add more uncertainty. Senate Energy Committee Chairman Jeff Bingaman, D-N.M., has suggested a nationwide clean electricity standard. The result could put much of the burden of reducing greenhouse gases onto the shoulders of electric power utilities.

 

In an editorial titled "A viable clean-energy bill at last?" the Washington Post writes that the proposal requires utilities "derive a defined portion of their electricity from technologies that emit fewer greenhouse emissions than coal, the dirtiest fossil fuel. Critically, any electricity technology - wind, solar, natural gas, nuclear or something entirely new - can get credit, scaled in accordance to the improvement it offers."

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Although the Post seems to feel the bill is better than nothing, it admits that its approach has flaws.

"Some regions could see higher price hikes, others lower," the Post writes.

"Lawmakers considering the idea will have to examine ways to prevent energy-intensive industries from fleeing the country. There is also a lot that a clean electricity standard cannot accomplish. It targets just one sector of the economy - electricity - when there are carbon emissions that can be wrung out of all sorts of activities at relatively low cost."

 

Despite these issues, the Post concludes that the bill "could hold the most political appeal of any big approach to carbon cutting. It is harder to construe as a tax increase, and it explicitly benefits GOP favorites, such as natural gas and nuclear energy, as well as Democratic ones, such as solar and wind energy. After many years of lawmakers proposing less appealing versions of the same idea, there's now a solid draft on the table."

 

What do you think? Use the Talk Back form below to share your thoughts.

 

Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.

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Clean energy - the tradeoffs?

The problem with all of these legislated efforts is the failure to balance the tradeoffs. Clean air, clean water, and a clean environment are great objectives, but what are the cost tradeoffs, what are the real benefits,who benefits,and who pays? The results to-date indicate that premature moves to some renewables will raise electricty rates for everyone and real benefits will be difficult or non-existent. Those customers whose rates are currently being subsidized will require additional support which will raise everyone else's rates, which will create additional disruptions. Environmental problems require well thought out long-term solutions, not more short-term bandaids.

Roger Levy - 05/23/2012 - 08:04

GHG reductions must start yesterday

@Roger Levy stated that environmental problems require well thought out long-term solutions. While the solutions need to be well thought out, we cannot wait for the "long-term" on issues like GHG reductions. The scientists in the know predict a large risk of very large-scale problems, if we don't start moving now at an incredibly fast pace of change to a close to net-0 carbon economy. Waiting an extra 5 years to start reducing means having to almost double the annual rate of GHG reduction to have the same climate mitigation effect. Let's go. Now.

Eric Hawthorne - 05/23/2012 - 11:26

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