Practicing Risk-Aware Electricity Regulation: 2014 Update

Ceres (free download with registration)

This 2014 update to Ceres’ 2012 report, Practicing Risk-Aware Electricity Regulation: What Every State Regulator Needs to Know, looks at key trends that continue to reshape the U.S. electricity industry, analyzes changing costs and risk profiles of energy resources (especially renewable energy), and offers further insights and recommendations for smart, “risk-aware” decision-making by utility regulators.

This report, authored by utility industry and finance experts, concludes that almost without exception the riskiest investments for utilities—the ones that could cause the most financial harm for utilities, ratepayers and investors—are large base load fossil fuel and nuclear plants. In contrast, energy efficiency, distributed energy and renewable energy (whose costs, in some cases, have come down dramatically since 2012) are seen as more attractive investments that have lower risks and cost.

This 2014 Update reaffirms the conclusions and recommendations from our 2012 report, which emphasized the need for intelligent risk management practices by utility regulators in overseeing utility investment.


One thought on “Practicing Risk-Aware Electricity Regulation: 2014 Update

  1. Pingback: What will be Minnesota’s Energy Plan? | Sierra Club North Star Blog

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