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American Focus > Blog > Environment > Public utilities commissions and why the race for clean energy is local
Environment

Public utilities commissions and why the race for clean energy is local

Last updated: November 4, 2024 11:02 pm
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Public utilities commissions and why the race for clean energy is local
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power grid can decarbonize and contribute to combating the climate crisis.

The U.S. power grid is facing a pivotal moment in its history. With the urgent need to transition away from fossil fuels to combat the climate crisis, the decisions made by state utility commissions will play a crucial role in determining the future of electricity generation in the country. These commissions, made up of around 200 regulators across the states, hold the power to approve or deny utility companies’ expenditures and rates, shaping the trajectory of the energy industry.

In the upcoming elections in various states, voters will have the opportunity to elect or reelect utility commissioners who will influence the direction of the power grid. In Alabama, Republican incumbent Twinkle Cavanaugh is running unopposed for reelection to the Public Service Commission, emphasizing conservative governance principles. Arizona is seeing a competitive race for three seats on the Corporation Commission, with the potential to shift control and impact decisions on gas power plants and solar fees. Montana, Nebraska, North Dakota, Oklahoma, and South Dakota are also holding elections for utility commissioners, with candidates vying for seats that will shape energy policy and decision-making.

The outcomes of these elections will have far-reaching consequences for the energy landscape in the U.S. In Arizona, the balance of power on the Corporation Commission will determine whether new gas plants continue to be approved or if a shift towards cleaner energy sources occurs. In Louisiana, the replacement of a retiring Republican commissioner could sway decisions on key energy issues. Similarly, in Montana, where dissatisfaction with a recent rate hike is high, the election for the Public Service Commission will test voters’ appetite for change.

The decisions made by these utility commissions will determine whether states invest in more fossil fuel infrastructure or transition to cleaner energy sources in the coming years. The makeup of these commissions, elected or appointed, will shape the pace of decarbonization in the U.S. power grid and its contribution to addressing the climate crisis. Voters in these states have the opportunity to influence the future of electricity generation and play a crucial role in shaping a sustainable energy future. But the decisions made by state utility commissions will be equally important. They have the authority to dictate how electricity is generated, how much it costs, and who benefits from it. As the urgency of addressing climate change grows, these commissions are being called upon to take bold action to cut emissions nationwide.

One key way that utility commissions can help reduce emissions is by encouraging the transition to renewable energy sources. By approving plans for new wind, solar, and hydroelectric projects, these commissions can incentivize utilities to invest in cleaner energy sources. They can also set targets for renewable energy generation and penalize utilities that fail to meet them. In addition, utility commissions can mandate the retirement of coal-fired power plants, which are major contributors to greenhouse gas emissions.

Another way that utility commissions can cut emissions is by promoting energy efficiency. By requiring utilities to offer energy-saving programs to customers, such as rebates for energy-efficient appliances or incentives for reducing energy consumption during peak hours, commissions can help reduce overall electricity demand. This not only lowers emissions but also saves consumers money on their energy bills.

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In addition to promoting renewable energy and energy efficiency, utility commissions can also play a role in supporting electric vehicles (EVs). By approving infrastructure investments for EV charging stations and offering incentives for consumers to switch to electric vehicles, commissions can help reduce emissions from the transportation sector, which is a significant source of greenhouse gas emissions.

Overall, state utility commissions have the power to drive significant reductions in emissions nationwide. By setting ambitious goals for renewable energy generation, promoting energy efficiency, and supporting the transition to electric vehicles, these commissions can help accelerate the shift to a cleaner, more sustainable energy system. As the world grapples with the urgent need to address climate change, the decisions made by state utility commissions will be more important than ever in cutting emissions and combating global warming.

The transition to renewable energy is crucial for combating climate change and creating a more sustainable future. While the federal government provides subsidies to make low-carbon electricity profitable, the decision to actually build renewable energy generation occurs at the state level. State utility commissions play a significant role in shaping the energy landscape by approving or denying plans put forward by utilities.

In states like Georgia and Minnesota, individual commissioners have directed utilities to add solar and biomass to their portfolios, leading to an increase in renewable energy generation. Rooftop solar, owned by individuals, is also influenced by utility commissions through contracts that govern the buying and selling of excess energy. Changes in these contracts can have far-reaching implications for the adoption of rooftop solar.

The Tennessee Valley Authority (TVA), a federal agency serving seven Southern states, has a unique approach to energy generation. Unlike traditional utilities, the TVA is not profit-driven, allowing it to prioritize energy efficiency and demand response over new infrastructure. This model demonstrates an alternative way to address growing electricity demand without relying heavily on fossil fuels.

However, no regulatory structure is without its challenges. Advocates working with vertically integrated monopolies argue that the lack of competition limits the growth of renewable technologies. On the other hand, critics of more liberalized markets, like Regional Transmission Organizations (RTOs), raise concerns about reliability and public accountability.

Engaging with utility commissions and advocating for clean energy policies is essential for driving the energy transition. Advocates use various strategies, such as blog posts, newsletters, and public engagement initiatives, to educate stakeholders and hold commissions accountable. Additionally, individuals can influence the composition of commissions through elections and public pressure, ensuring that regulatory decisions reflect the public interest.

Ultimately, the energy transition requires collaboration between government, utilities, regulators, and the public to achieve a sustainable and equitable energy future. By working together at the state level, we can accelerate the adoption of renewable energy and build a cleaner, more resilient energy system for future generations. The role of utility commissions in shaping energy policy and regulation is evolving across the United States. From Massachusetts to Maryland, commissioners are taking steps to address issues of equity, environmental justice, and stakeholder engagement in the energy sector.

In Massachusetts, the new commission has made significant strides in addressing low-income energy burdens and improving access to solar energy. By overseeing utilities’ clean energy roadmaps required by state law, the commission is paving the way for a more sustainable and equitable energy future. Additionally, in Maryland, a gas industry executive withdrew his candidacy for the public service commission after outcry from environmental groups, highlighting the importance of public input in regulatory decision-making.

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Commissioners like Davante Lewis in Louisiana are advocating for a more holistic approach to regulation, considering environmental concerns and ecosystem impacts in addition to financial considerations. While utility commissions often have the authority to examine factors beyond price and reliability, many are hesitant to do so. State legislatures can play a role in expanding the commission’s scope, as seen in Colorado, where equity considerations have been explicitly included in utility regulation.

To address the imbalance between utilities and other stakeholders in regulatory proceedings, some states have implemented programs to compensate individuals and nonprofits for participating. By providing support for advocacy efforts and expert testimony, these programs help level the playing field and ensure that a diverse range of voices is heard in energy decision-making.

In Connecticut, reforms were prompted by a natural disaster that left hundreds of thousands without power. The state’s utility commission, PURA, issued fines and implemented changes to improve governance and stakeholder engagement. Advisory boards focused on equity and energy justice have been established to ensure that the needs of low-income residents are considered in energy regulation.

Legislation in Connecticut has directed PURA to implement stakeholder compensation and performance-based regulation. The stakeholder compensation program covers costs for intervening groups, while performance-based regulation ties utilities’ profits to their performance in key areas like affordability and emissions reduction. These changes aim to incentivize utilities to prioritize customer needs and pursue clean energy initiatives that benefit both the environment and ratepayers.

Overall, the evolving role of utility commissions reflects a broader shift towards a more inclusive, transparent, and sustainable energy future. By prioritizing equity, environmental justice, and stakeholder engagement, commissioners are working to ensure that energy policy decisions serve the public interest and promote a cleaner, more resilient energy system for all. In an effort to push electric companies to change their practices, a new approach is being implemented to flip the incentives around. This shift is not always welcomed by utilities, as their powerful lobbying efforts can pose a major obstacle. In fact, the resistance in Connecticut was so strong that lawmakers in Maine had to abandon a similar bill.

“This is a perennial risk of these kinds of proceedings,” said Tully, highlighting the threat to the status quo of how utilities have been operating for many years. Some utilities argue that changing their profit structure could hinder their ability to finance major energy projects. However, in the long run, this does not seem to be the case. In Hawaiʻi, for example, the performance-based regulation framework actually improved utilities’ credit rating.

While the increased uncertainty during the implementation of these changes may make creditors wary, the potential benefits are evident. Consumer groups have raised concerns about performance-based regulation, fearing that utilities could misrepresent their performance to regulators. Despite these challenges, the Connecticut commission is actively working on implementing performance-based regulation, with a focus on equity.

Advocates acknowledge that transforming utility commissions can be a difficult task, especially in the face of resistance from utilities. However, it is possible to enact change. Other states have successfully implemented policies similar to those in Connecticut, driven by legislative action or proactive decisions by commissioners.

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In Connecticut, a hurricane served as a catalyst for change, but it also required significant advocacy efforts. Advocates work both “up” by engaging lawmakers and commissioners to pass reforms, and “out” by communicating with the public and collaborating with environmental justice groups. Bridging the gap between these groups and regulators is crucial in raising awareness and effecting change.

Overall, the impact of these new approaches is still “to be determined,” but the initial progress is promising. By challenging the traditional practices of electric companies and pushing for more equitable and sustainable solutions, advocates hope to create a more environmentally conscious and socially responsible energy sector. Title: The Benefits of Regular Exercise

Regular exercise is crucial for maintaining a healthy lifestyle and overall well-being. Physical activity has been proven to have numerous benefits for both the body and the mind. From improving cardiovascular health to boosting mental clarity, there are countless reasons why incorporating regular exercise into your routine is essential.

One of the most significant benefits of regular exercise is its impact on cardiovascular health. Engaging in activities that get your heart rate up, such as running, cycling, or swimming, helps to strengthen the heart muscle and improve circulation. This, in turn, can lower blood pressure, reduce the risk of heart disease, and improve overall cardiovascular function.

Exercise also plays a crucial role in maintaining a healthy weight. By burning calories and building muscle mass, regular physical activity can help you achieve and maintain a healthy body weight. This is important for reducing the risk of obesity, which is a major contributing factor to a variety of health problems, including diabetes, high blood pressure, and heart disease.

In addition to its physical benefits, exercise has also been shown to have a positive impact on mental health. Engaging in regular physical activity releases endorphins, which are chemicals in the brain that act as natural painkillers and mood elevators. This can help to reduce feelings of stress, anxiety, and depression, and improve overall mental well-being.

Regular exercise can also improve cognitive function and boost mental clarity. Physical activity has been shown to increase blood flow to the brain, which can help to improve memory, concentration, and overall cognitive function. This is especially important as we age, as regular exercise has been linked to a reduced risk of cognitive decline and dementia.

In addition to the physical and mental benefits, regular exercise can also improve sleep quality and overall energy levels. Engaging in physical activity during the day can help to regulate your sleep-wake cycle, making it easier to fall asleep and stay asleep at night. This can lead to improved energy levels, better mood, and increased productivity throughout the day.

Overall, the benefits of regular exercise are vast and far-reaching. From improving cardiovascular health to boosting mental clarity, incorporating physical activity into your daily routine is essential for maintaining a healthy lifestyle. Whether you prefer running, yoga, or weightlifting, finding an exercise routine that works for you is key to reaping the many benefits of regular physical activity.

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