Wednesday, November 19, 2014

Proposed decision on Natural gas cap and trade...

The CPUC has just issued a proposed decision on the first steps of bringing natural gas under the state’s cap and trade program. This allows the utilities to participate in auctions and begin complying in January. The decision sides with the one recommendation we made — to not limit the percentage of allowances that utilities have to pay for after 2015. In 2015, they only have to pay for 25%, which is CARB’s minimum requirement. For 2016 and beyond it remains to be decided.

We have two interests in this. We want the price of natural gas to incorporate GHG impacts and we want some of the auction revenue to be used to continue the CSI-Thermal program after the CSI money starts drying up.

Next step in the proceeding is to decide how much of the auction revenue should be used for programs versus given to customers as bill credits.