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?
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.