by Rebecca Walker — July 13, 2009—According to a new study, the impact of new cap-and-trade policies on electric rates across the country will vary greatly depending on how carbon allowances are allocated, creating unnecessary windfall profits for some without any additional reduction in carbon emissions.
The study, conducted by Synapse Energy Economics of Cambridge, Massachusetts, will be released July 15 at the National Press Club. It is sponsored by the National Association of Regulatory Utility Commissioners (NARUC), the American Public Power Association (APPA), the National Rural Electric Cooperative Association (NRECA) and the National Association of State Utility Consumer Advocates (NASUCA).
All four groups support climate change legislation that results in productive costs that will prompt investments to reduce emissions and spur economic growth. Some of the allocations in the House-passed (H.R. 2454) legislation, however, are unproductive driving prices up higher than necessary while providing no additional benefit to the environment.
For more information, see the Synapse Energy Economics Web site.
