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Carbon Adders in Rates and Utility Planning

MCLI Recommendation: “States could require utility planners to include a carbon adder for planning purposes.”

LPDD Recommendation: “FERC can require that wholesale rates include a carbon adder set at a level intended to reflect the social cost of carbon.”

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9 resources

Resource Public Utilities

Report, Independent System Operators (ISOs) & Carbon Pricing: An Explainer

This 2020 report from Climate Xchange surveys the policy options for carbon pricing at the Independent System Operator (ISO) level. ISOs coordinate real-time electricity flow, ensure fair competition,...
Resource Executive Branch

Report, Addressing Climate Change Without Legislation

UC Berkeley School of Law’s publication, Addressing Climate Change Without Legislation, proposes that through FERC’s authority over electricity rates, power contracts, and utility planning, as well as...
Resource Executive Branch

FERC Technical Conference regarding Carbon Pricing in Organized Wholesale Electricity Markets (Sept. 2020)

At a September 2020 FERC Technical Conference, legal experts agreed that FERC does have the legal authority to implement a carbon price. Under sections 206 and 205 of the Federal Power Act, FERC has t...
Example Public Utilities

PJM carbon pricing study

PJM, an independent system operator in the mid-Atlantic states, has proposed to study the effects of a carbon price on wholesale markets in tandem with the carbon pricing discussion being advanced by ...
Resource Executive Branch

Report, Markets, Externalities, and the Federal Power Act

NYU’s Environmental Law Journal published a 2019 article on FERC’s authority to price carbon dioxide emissions.
Example Public Utilities

Colorado’s Order to Use Carbon Cost in Energy Resource Plans

In 2017, the Colorado Public Utility Commission (PUC) orderedXcel to use the social cost of carbon Energy Resource Plan (ERP) that would guide utility investments through 2024.
Example States and State Governments

California Proposed Decision on Carbon Costs in Integrated Resource Planning

California’s Public Utility Code § 701.1(c) gives the state’s Public Utilities Commission a mandate to include “a value for any costs and benefits to the environment,” when it is “calculating the cost...
Example Public Utilities

NYISO carbon pricing proposal

The New York Independent System Operator has released a Carbon Pricing Straw Proposal, which would reflect the cost of carbon emissions in wholesale energy market offers via a “carbon charge.” The Pro...
Example States and State Governments

Minnesota Order Establishing Carbon Costs in Resource Plans

Minnesota Statute § 216B.2422 Subdivision (3)(a) directs the PUC to “quantify and establish a range of environmental costs associated with each method of electricity generation,” which utilities are d...