4 Dec 2014

Los Angeles Department of Water & Power customers will see their power bills dip Jan. 1 under a change approved Dec. 2 by the muni’s board of commissioners. Due to cheaper fuel and power purchase prices, the average muni customer is expected to see $1.79/month in savings.

The U.S. Environmental Protection Agency’s “clean energy plan” to discourage greenhouse gases may lead to split incentives for generators, according to a Haas Energy Institute study released Dec. 2. “Generators whose operations are not covered by the regulation, e.g., distributed generation, renewables, nuclear, small fossil plants, prefer the high electricity prices associated with mass-based standards. On the other hand, regulated generators (e.g., existing fossil plants) benefit from lower costs and prefer rate-based regulation. Holding carbon prices fixed we show that adoption of a rate-based standard is a dominant strategy from the perspective of covered generators, but adoption of a mass-based standard is a dominant strategy from the perspective of uncovered generators,” notes the report.

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