[CEM 989 / August 15, 2008]

Utilities Complain of Shouldering Weight of Greenhouse-Gas Cuts

Utilities say they will suffer a greenhouse-gas double whammy: an emissions cap plus command-and-control mandates such as the renewables portfolio standard. Market advocates point out a 33 percent RPS could run $133 per ton of carbon dioxide while ratepayer groups worry utilities could pass the cap-and-trade check-$700 million in above-market power costs-to customers. Many stakeholders have urged the California Air Resources Board to delay a cap-and-trade system at least until a regional program starts under the direction of the Western Climate Initiative. But California parties are seeking to influence the WCI process as well, asking to include the transportation sector and lobbying to use more offsets.

Water Board's Once-Through Cooling Rule Could Cost Billions in Grid System Upgrades

The California Independent System Operator and stakeholders are scrambling to whip up data on the impact that retiring or retrofitting once-through-cooling plants in the state would have on grid reliability. The rush is on because the State Water Resources Control Board is to have its draft OTC rule ready in October. So far, regulators put the total cost of compliance at $1 billion, but Pacific Gas & Electric estimates that's about the price tag for upgrading the Bay Area alone.

Critics Throw Cold Blanket on SDG&E Solar Plan; PG&E Aims to Win World Record for PV Plant

San Diego Gas & Electric's proposed 77 MW solar project offers too little power for its price tag, some ratepayer groups have said. The utility's choice of expensive photovoltaic technology ignores the chance to use thousands of megawatts of solar power in the region, the groups argued. Meanwhile, Pacific Gas & Electric proposed 800 MW worth of solar PV with two huge contracts.

On Road to Plug-In Vehicle Rollout, Utilities Seek to Redesign Rates, Offer Incentives

Investor-owned utilities continue partnering with the automotive industry and battery makers to test how plug-in vehicles work with the grid-and how to best prepare for them. While California's electrical system can likely handle millions of the cars in coming years without needing new generation, utilities say they need to encourage off-peak charging with rates and incentives. The rollout will also need public charging stations, standard communication systems so cars can work with the grid, and maybe some driver's ed.

Also In California Energy Markets This Week . . .

• SF Supervisors Poke Holes in Potrero Retrofit Proposal
• Energy Bills Delayed
• Edison Books Profit, PNM Sinks, Calpine Resurfaces
• EPA Smacks Salt River Project With Fine, Retrofits

...And Much More!

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