Tips for Consumer Advocates to Manage Environmental

Regulation

 

Presentation to NASUCA ConferenceSanta Fe, New Mexico

June 2, 2014

Steven Michel, Energy ProgramWestern Resource Advocates

THE ISSUE

Environmental regulation is incremental.

Regulation makes electricity more costly.

How can consumer advocates manage this?

FIVE TIPS:

First:

Recognize all environmental and health costs in resource planning.

National park:Environmental protection has value

Superfund site:Environmental impacts are costly

Second:

Don’t be shortsighted or too obsessed with rates.

Third:

Help design good, effective regulation that minimizes cost.

Carbon Tax

vs.

Carbon Reduction Credits

Utility emits 1 million tons CO2 per year

Goal: 10% reduction

Reductions/tax = $10/ton

Carbon Tax:Utility emits 900K tons; taxed $9 million

Utility reduces 100K tons; costs $1 millionRate impact: $10 million

Reduction credit requirement:Utility reduces 100K tons; costs $1 million

Rate impact: $1 million

Environmental outcome is identical.

Fourth:

Recognize common threads.

Fifth:

Be proactive… insist on forward thinking.

Questions