Duke Energy's Position on Renewable Portfolio Standards
As America’s electricity appetite continues to grow, it is critical that both government and the market come together to support policies that encourage the development of clean energy alternatives. Duke Energy believes low- or zero-emission technologies will play an increasingly important role in meeting the nation’s future energy demand – particularly as the cost of renewable power technologies becomes more competitive and the costs associated with fossil fueled-generation increases.
Renewable energy portfolio standards, now in place in 29 states and the District of Columbia, have served to jump-start deployment of these technologies ahead of potential sweeping energy policy reform. Renewable mandates, as long as they are practical, affordable and premised on the goal of adding emissions-free energy, can be an effective tool in the transition to a low-carbon future.
We believe renewable energy portfolio standards are better set by state legislatures, which understand their jurisdiction’s unique characteristics and siting capabilities. We contend that a federal one-size-fits-all approach could fail to recognize that what works in California or Texas might not work well in Ohio or North Carolina.
Policymakers should use the following principles when proposing mandates for renewable power generation:
- Begin with sensible initial renewable energy requirement levels that ramp up over time
- Gradually increase the mandated amount of renewables over time to avoid price spikes
- Require all electric providers to participate, including municipal power authorities, rural electric membership corporations and third-party suppliers
- Protect and inform customers
- Cap costs of renewable programs to ensure any increases on customer bills are reasonabl
- Conduct periodic reviews of the renewable program to assess impacts on the customer
- Allow compliance flexibility
- Enable electric providers to use a suite of technologies to meet the renewable requirement
- Allow the purchase of national renewable energy certificates to meet the requirement
- Promote the use of conservation and energy efficiency
- Place energy efficiency on “equal footing” with new generation – the best power plant is the one you never have to build
- Ensure appropriate and timely recovery of compliance costs
- Allow electric providers timely recovery of costs plus a return on renewable supply acquisitions
