Deloitte Survey: Energy Regulators in a Green State of Mind - 0 views
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Energy Net on 26 Apr 09A majority of energy regulators agree that reducing greenhouse gas emissions will increase the costs of electricity, but that the public is willing to pay as much as 5 percent more for green energy, according to a survey from the Deloitte Center for Energy Solutions. The survey, which was completed by 60 state regulators in March and April 2009, found that 70 percent of surveyed regulators believe that the cost of electricity is likely to increase next year -- with 50 percent identifying environmental compliance as the strongest contributing factor to these increased electricity costs. In addition, more than 80 percent of surveyed regulators believe that the Obama administration's proposed cap and trade system for carbon dioxide emissions will result in higher electricity costs in their states. "For the second year in a row, our survey demonstrates that state utility regulators, while concerned about climate change, also understand the cost implications and viabilities of the various policy options," said Branko Terzic, Energy & Resources regulatory policy leader for Deloitte. Terzic is a former state regulator, a former commissioner with the Federal Energy Regulatory Commission (FERC) and a former utility executive. He went on to point out that surveyed regulators showed a continued belief in the green benefits of nuclear power: 55.2 percent of them claimed that nuclear power is "extremely effective" in reducing greenhouse gases associated with power generation in their state. The survey also revealed that more than two-thirds (71.7 percent) of responding state regulators believe that the U.S. should continue to develop Yucca Mountain, despite recent decisions by the administration to look for alternatives.