Friday, May 20, 2011

State Clean Energy Mandates Have Little Effect on Electricity Rates So Far

While there's room for more study, the estimated impact on electricity rates is a fraction of a percent in most cases and just over 1 percent in two states. One of the larger reviews of renewable portfolio standards was a 2008 report by the Lawrence Berkeley National Laboratory. The study looked at data on a dozen state renewable policies enacted before 2007. The estimated impact on electricity rates varied by state, but it was a fraction of a percent in most cases and just over 1 percent in two states, Connecticut and Massachusetts. "There is little evidence of a sizable impact on average retail electricity rates so far," the report concluded. One of the report's co-authors, Galen Barbose, said in an interview that they are collecting data for an updated version of the report. So far he said he hasn't seen any new information to suggest their conclusion about rate impacts will change significantly in the next edition. More>