Regulators place market value on greenhouse gases
California’s Public Utilities Commission has issued an order that requires the state’s major utilities to take financial account of greenhouse gas emissions in power purchases from fossil-fuelled facilities. The PUC has adopted an $8/ton to $25/ton range value for a so-called greenhouse gas ‘adder’. This measure is designed to allow cleaner sources of energy to prove that they are cost-effective when greenhouse gas emissions are considered. The measures, which affect utility giants Pacific Gas & Electric, Southern California Gas and San Diego Gas & Electric, are expected to boost renewable generation over gas-fired plants.