Legal & Regulatory

  Renewable power proponents exuded great confidence as the U.S. Congress approached its near-annual end-of-year task of extending the production tax credit (PTC) for wind, solar, biomass, and geothermal power beyond its current December 2008 expiration. The debate promised to bypass the threshold issue of simply extending the PTC. It was expected to focus on […]

Given a chance to make a positive change in California’s wholesale generation market, the California Public Utilities Commission (CPUC) in December opted instead to maintain the state’s existing “hybrid” market model. That decision will further restrict meaningful opportunities for independent power producers (IPPs) and increase the likelihood that future generation will consist of utility ratebase […]

The U.S. Congress continues to debate proposals that would mandate that a set amount of the nation’s electricity come from renewable energy sources such as wind, the sun, or biomass. These discussions about adopting a nationwide renewable portfolio standard (RPS) raise significant concerns for power providers and customers alike. Backers of a one-size-fits-all federal RPS […]

A utility executive responsible for procuring renewable power recently lamented that, at the time of contract execution, renewable “projects” are typically at a very preliminary stage of development, offering scant information about project specifics. Regulatory or other objectives often cause the utility to require that the power purchase agreement be executed before critical permits have […]

This May, the Arizona Corporation Commission (ACC) rejected a proposal by Southern California Edison (SCE) to build Devers-Palo Verde No. 2 (DPV2)—a 230-mile-long, high-voltage transmission line connecting California and Arizona. The line, approved by the California Public Utilities Commission (CPUC) four months earlier, would enable SCE to import additional low-cost electricity from Arizona. The ACC’s rejection of DPV2 highlights a significant challenge for state and regional resource planners—weighing state interests against the regional benefits of interstate electricity commerce.

While elected officials in Washington debate the politics of climate change, state legislators and regulators have been busy putting in place programs to reduce greenhouse gas emissions. For the most part, the goals of the programs reflect desired changes to power supply and consumption: increasing the efficiency of electricity generation and delivery, using less fossil […]

Congress’s enactment of the Public Utility Regulatory Policies Act of 1978 (PURPA) triggered a revolution in the development and construction of power plants. PURPA’s creation of an independent class of generators—qualifying facilities (QFs)—exposed a century-old economic myth that had justified restricting ownership of generating facilities to governmental and investor-owned utilities (IOUs). The success of QFs […]

  Historically, states have delegated responsibility for establishing and implementing their energy policy to a public utilities commission (PUC). During most of the 20th century, state PUCs operated with relatively little interference from state legislators. In California, for example, the PUC, created by the state constitution, was vested with the broad authority to independently regulate […]

  State policy makers are characteristically reluctant to recognize that they have advanced a policy as far as they can, and that they must cede some control to fully realize its ultimate benefits. Ceding control often runs counter to policy makers’ political instinct to serve their constituents. Doing so is even harder when a new […]

  The debate over retail choice has resurfaced, triggering in the minds of many consumer advocates California’s failed deregulation attempt and its fallout—rolling blackouts, bankrupt utilities, and government bailouts with crippling long-term consequences. Before allowing a chorus of "oh no, not again" to cloud the debate, state policy makers should realize that allowing generators to […]