Regulator urges change in California cap-and-trade program
Source: Reuters
Regulator urges change in California cap-and-trade program
WASHINGTON | Wed Aug 8, 2012 5:31am EDT
Aug 8 (Reuters Point Carbon) - A federal regulator asked California's governor to suspend a section of the state's cap-and-trade regulations that addresses power imported from out of state, warning that it threatens to destabilize its power supply and disrupt the world's eighth largest economy.
Phillip Moeller, one of five commissioners of the Federal Energy Regulatory Commission (FERC), which oversees electric reliability, said in a letter to Governor Jerry Brown that California's prohibition of and lack of clarity about "resource shuffling" may disrupt its electricity market.
"I respectfully request that you direct ARB to suspend enforcement of the prohibition of resource shuffling until such time that the ARB clarifies rules surrounding compliance with, and enforcement of, the provision," Moeller wrote in the letter dated August 6.
Resource shuffling occurs when a regulated plant that delivers electricity to California modifies its contracts to import lower-emission electricity to the state while sending its more carbon-intensive electricity to other states without greenhouse gas curbs, giving the impression that it has reduced its emissions.
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Read more: http://www.reuters.com/article/2012/08/08/us-california-carbon-idUSBRE8770C320120808
