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ReportOpportunities for Valuing Climate Impacts in U.S. State Electricity Policy
With an absence of federal leadership on climate change, many states have worked to reduce greenhouse gas emissions on their own, often by incorporating a broader range of considerations into electricity policy. Our report assesses the potential to expand the valuation of climate damages in state electricity policy using Social Cost of Carbon metrics. We examine existing statutes and regulations in all 50 states to identify opportunities for valuing climate impacts around the country.
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Academic Article/Working PaperMarkets, Externalities, and the Federal Power Act
The Federal Energy Regulatory Commission’s Authority to Price Carbon Dioxide Emissions
This article, published in the New York University Environmental Law Journal, shows how the Federal Energy Regulatory Commission (FERC) must attempt to address the external cost of carbon dioxide (CO2) emissions to achieve an efficient electricity market. CO2 emissions impose a significant cost on society by contributing to climate change. The electricity sector is a major source of these emissions, yet their external cost is not fully reflected in electricity rates, and the market outcomes thus do not adjust to reflect those true costs—a classic market failure. This leads to emissions that are higher than optimal.
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Academic Article/Working PaperWill You Be There for Me the Whole Time?
On the Importance of Obligation Periods in Design of Capacity Markets
This paper discusses how variations in the availability of various resources (generation seasonality) and the fluctuations in the electricity usage (load seasonality) relate to efficient capacity market design. Even though capacity markets have been around for two decades, the necessity as well as the design of these markets are subjects of ongoing debates. Many design questions, such as how to determine the amount of capacity to be procured, how to prevent market power, or how to provide incentives for performance dominate both the academic literature and the policymaking discussions. Another design aspect that plays a crucial role for market participants is the length of the capacity product procured (“obligation period”), because it defines the length of time for which a seller commits to maintaining its capacity available. However, a thorough analysis of obligation periods has been overlooked by literature and policymaking discussions. Our article works to provide this analysis.
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Academic Article/Working PaperThe Future of Distributed Generation
Moving Past Net Metering
This article provides an overview of the benefits and the costs of distributed generation and highlights the analytical flaws and missing elements in the competing positions and in most existing policies. We propose an alternative approach that recognizes the contributions to the electric grid of both utilities and distributed generators. The article is excerpted and revised from a longer academic article, “Managing the Future of the Electricity Grid: Distributed Generation and Net Metering,” which was selected by Environmental Law Reporter as one of the five best environmental law articles published in the 2017-2018 academic year.
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ReportToward Resilience
Defining, Measuring, and Monetizing Resilience in the Electricity System
Grid resilience—generally, the electric grid’s ability to resist/absorb, manage, quickly respond, and recover from/adapt to high-impact, low-probability external shocks—has been a concern for electric utilities and energy planners for decades. While recent extreme weather and cyber security concerns have prompted the federal government to pursue policies that support coal and nuclear power plants, a more systematic focus on resilience will lead to very different solutions than what has been proposed by the Department of Energy. Our report aims to assist policymakers in understanding grid resilience and evaluating potential interventions aimed at improving grid resilience.
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