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Minimizing Costs for Consumers Under a Global Warming Pollution Cap

This presentation by Dale S. Bryk at the NARUC Summer Conference focuses on cost minimization for consumers under a global warming pollution cap. It discusses the limitations of price signals, the importance of allowance revenue, and the need for complementary policies such as energy efficiency standards. Key strategies include removing utility disincentives, implementing system benefit charge programs, and ensuring equitable allowance distribution. The goal is to protect consumers, reduce program costs, promote clean energy, and facilitate a just transition for workers.

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Minimizing Costs for Consumers Under a Global Warming Pollution Cap

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  1. Minimizing Costs for Consumers Under a Global Warming Pollution Cap Dale S. Bryk Natural Resources Defense Council NARUC Summer Conference July 16, 2007

  2. Driving Investment in Least Cost Solutions • Price signal of cap or tax (does not overcome market barriers) • Allowance revenue • Essential complementary policies • Energy efficiency procurement standards • Remove utility disincentives (revenue decoupling) • System benefit charge programs • Codes and standards

  3. Allowance Distribution Objectives • Protect consumers • Reduce overall program costs • Advance program goals/ promote clean energy • Avoid windfall profits • Avoid perverse incentives • Transition assistance for workers

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