in News Departments > New & Noteworthy
print the content item

A majority of energy regulators agree that reducing greenhouse gas (GHG) emissions will increase the costs of electricity and that the public is willing to pay as much as 5% more for green energy, according to a survey from the Deloitte Center for Energy Solutions.

The survey, which was completed by 60 state regulators in March and April, found that 70% of surveyed regulators believe that the cost of electricity is likely to increase next year, with 50% identifying environmental compliance as the strongest contributing factor to these increased electricity costs.

In addition, more than 80% of surveyed regulators believe that the Obama administration's proposed cap-and-trade system for carbon dioxide emissions will result in higher electricity costs in their states.

Regulators who responded to Deloitte's survey indicate that the public, for one, is willing to pay more for greener energy. The survey finds that more than half of the respondents (53.3%) believe the public would pay as much as 5% more in electricity rates to mitigate GHG emissions.

However, only 16.7% of regulators believed their consumers would accept a 10% increase in rates, compared to 29% of regulators who felt the same way last year - a phenomenon that likely reflects regulators' sensitivity to the economic difficulties facing their ratepayers.

"Regulators seem to believe that the rate-paying public supports a cleaner energy direction," says Branko Terzic, energy and resources regulatory policy leader for Deloitte and a former commissioner with the Federal Energy Regulatory Commission.

He adds that in 2009, fewer commissioners (23.3% compared to 32% in 2008), believe that consumers would not support "any increase" in rates for cleaner energy. This, Terzic says, may indicate that commissioners see higher public acceptance of the tie between power plant emissions and climate change.

"Consumers understand that some increase in electric rates tied to cleaner energy may be inevitable," Terzic notes.

Regulators also showed growing support for renewable power sources, with 42.4% ranking them as "extremely effective." Clean coal, in contrast, seems to be the most polarizing source of power generation among regulators in 2009: Only 25.4% felt it was "extremely effective," while an almost identical amount (23.7%) viewied it as "not effective at all."

SOURCE: The Deloitte Center for Energy Solutions



Trachte Inc._id1770
Latest Top Stories

Recapping The Wind Industry's Third-Quarter Deals

Mercom Capital Group recaps investment and merger and acquisition activity during July, August and September.


Yearly Installed Capacity Figures Already Beat 2013 Numbers, More Wind On The Way: AWEA

While the American Wind Energy Association (AWEA) lobbies Congress to extend the production tax credit, the association notes wind projects now under construction signal a vibrant 2015.


Yahoo Inks Contract To Buy Kansas Wind Power

The Internet company plans to log in to the Alexander wind project, which is being built by community developer OwnEnergy.


Could Initial Offshore Wind Projects Crash New England's REC Market?

Some are concerned that the first offshore wind projects could negatively impact pricing of renewable energy credits (RECs) in New England.


Catching Up With The DOE's Down-Select Offshore Winners

The three recipients of key U.S. Department of Energy (DOE) funding provide updates on their offshore wind demonstration projects.

Renewable NRG_id1934
Canwea_id1984
Hybrid Energy Innovations 2015