New approaches account for the economic benefits of renewables.
Many green power customers benefit from long-term fixed prices. The most effective programs recognize the value of this price hedge—and fairly exempt customers from fuel cost adders in utility rates.
Some in Congress would link customer choice with a portfolio standard. How would that play in a wholesale power market where gas turbines rule the roost?
By Michael C. Brower and Brian Parsons
WHAT KINDS OF POWER PLANTS WILL
get built in a deregulated electric industry? If recent history offers any guide, utilities and independent power companies will succumb to the traditional wisdom and invest in gas-fired combustion turbines and combined-cycle plants. Sound reasons may exist for doing so. The plants are less expensive than conventional steam plants. They put less capital at risk.