Overview
- The EPA's Clean Power Plan will require Texas to achieve mass reductions of 4% by 2022 and 18% by 2030 from covered units compared to 2012
- Raises many policy questions on how Texas can best meet that challenge:
-
- State-mandated (i.e. non-market) efficiency and renewables?
- Rate-based or mass-based?
- Interstate trading?
- Harvest renewable potential for export?
- How to allocate CO2 allowances under mass-based?
- Each option has pros and cons, with very different implications for reliability, economic efficiency, customer costs, and asset values
- Texas may need to design its own implementation approach to maintain consistency with efficient dispatch within the energy-only market and avoid "leakage"
To continue reading this presentation, please click here
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.