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Chapter 5 Western Energy Policies Regarding Solar Power State Legislation The generation of power is becoming deregulated on a state-by-state basis (and in fits and starts). Despite this, policy makers and regulators still exercise influence over the generation portion of the electricity business. For example, tax incentives can be used to promote certain types of generation, or utility commissions can require distribution utilities, all of which are still regulated, to procure power from certain types of electric generation. Recently, some regulators have required the inclusion of more renewables into some states’ resource mix—often with surprising success. The motivation behind such stewardship probably varies. The promotion of renewables is a way to carry some of the old utilities’ mission of serv- ing the public good into a new and uncertain marketplace. It is also a way of responding to the public’s uneasiness with deregulation—the same way that rate freezes have been conceived as a way to protect customers in the transition to a deregulated market. Finally, the deregulation process is also an opportunity to realize change. No two states have decided to promote renewables in exactly the same way; both the methods and the scope by which renewables are promoted vary. The lack of precedent in applying such incentives may explain the variety of approaches. Other states that are contemplating deregula- tion or that have pending legislation are carefully observing the success of these programs. Despite the state-to-state differences, five basic tools are being tried to further the deployment of renewable power. These include: ● renewable portfolio standards (RPS), which require utilities to build, purchase, or sell a certain amount of renewable energy; ● system benefit charges (SBC), which charge utility customers a small fee to fund renewables programs; ● green energy programs, which allow customers to choose a renewable electricity product; 103PDF Image | Solar Fuel From The Sky
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