CLFP Participating in PUC Greenhouse Gas Proceeding

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Many of the large power generation plants in the state will be required to participate in the California Air Resources Board’s (CARB) greenhouse gas cap-and-trade program when it commences. The compliance costs incurred by the generators will be substantial and will likely be passed directly on to the utilities, and ultimately on to the industrial, residential, agricultural and commercial customers served by the various utilities in the state.

The utility electricity retailers will be given carbon emissions allowances by CARB that they can sell and use to compensate their customers for the higher electric rates or devote to other purposes. The Public Utilities Commission has commenced a rulemaking proceeding to establish guidelines for how the compensation will be allocated. CLFP is very concerned about a recommendation by CARB that residential customers be given financial compensation, but industrial customers would not. CARB is recommending instead that the utilities increase their funding for industrial energy efficiency programs. CLFP will be actively engaged in this proceeding to make sure that food processors are included in any compensation plan developed by the PUC. If you have any questions about this issue contact Rob Neenan in the CLFP office.

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