Washington State UTC Directs Utilities to Use “Robust” SCC Estimate

  • Application

    Integrated resource planning

  • Date

    May 2018
  • Details

    In Acknowledgement Letters approving integrated resource plans for the state’s three investor-owned utilities, the Washington State Utilities and Transportation Commission r the utilities to use a more robust cost of carbon estimate in the future. 1 The Commission suggested the companies use the 2016 IWG SCC estimates for their next IRPs, which are scheduled for 2019.

  • SCC Value(s)

    $78 per metric ton for 2020 emissions based on 2010 IWG SCC estimates. 2

  • Reference

    • PSE: UE-160918, UG-160919
    • Avista: UE-161036, UG-160292
    • Pacific Power: UE-160353
  • Legal Authority

    • The Acknowledgement Letters instructed the utilities to begin using a social cost of carbon value in their IRP alternatives analysis to determine the “lowest reasonable cost” resources as defined in Washington Administrative Code § 480-100-238. 3
    • Executive Order 14-04 on Washington Carbon Pollution Reduction and Clean Energy Action requires the state’s agencies to “[e]nsure the cost-benefit tests for energy-efficiency improvements include full accounting for the external cost of greenhouse gas emissions.” 4
  • Other

    State-wide ballot measures on carbon tax

  1.  PSE: UE-160918, UG-160919; Avista: UE-161036, UG-160292; Pacific Power: UE-160353. ↩︎
  2.  See, e.g., State of Washington, Department of Ecology, Preliminary Cost-Benefit and Least-Burdensome Alternative Analysis: Chapter 173-442 WAC Clean Air Rule & Chapter 173-441 WAC Reporting of Emissions of Greenhouse Gases (2016), at 38, available here; inflated from 2007 dollars to 2017 dollars.  ↩︎
  3.  E.g., 2017 Electric IRP Acknowledgement Letter, Attachment, Pacific Power & Light Company 2017 Integrated Resource Plan, Docket No. UE-160353, at 11 (May 7, 2018), available here↩︎
  4.  State of Washington, Exec. Order 14-04 at 6, available here. ↩︎

← New Jersey Passes Legislation on Zero Emission Credits Based on SCC

NYISO and NYSPSC Work on Carbon Price for Wholesale Market →

Feedback? Please email iliana.paul@nyu.edu.