Hello, CarbonWA friends: The movement for a price on carbon in Washington State has put a few points on the board! Read on to learn more, and, don’t forget that I-1631 is gathering signatures right now — so if you want to get involved, go directly to the campaign website and review our analysis to learn more about the policy.
New UTC Rules Require Utilities to Include Price on Carbon
In Washington State, our private utilities (Puget Sound Energy, Avista, and PacificCorp) are regulated by a body called the Utilities and Transportation Commission or UTC. Two former UTC commissioners actually sit on the CarbonWA board. The UTC’s job is to ensure private utilities follow the law and don’t take advantage of consumers, among other things. Utilities must have their rate increases and many other financial decisions impacting consumers approved by the UTC. And utilities are required to undertake a long term planning process that is overseen by the UTC (known as the Integrated Resource Plans or IRPs). The UTC has just determined that future IRP’s MUST include a price on carbon (of $40 per ton) as part of their economic analysis. This decision isn’t legally prohibiting the utilities from building fossil fuel plants in the future. But, the UTC is clearly telling utilities: if you build a fossil fuel plant that isn’t profitable with a price on carbon, we won’t consider that a prudent investment for which consumers should be on the hook.