Regulators push to cut carbon

By Janis Mara, BUSINESS WRITER
Article Last Updated:12/02/2006 02:55:06 AM PST


SAN FRANCISCO — Lending new meaning to the phrase "cutting carbs," California utility regulators and their counterparts in New Mexico, Oregon and Washington pledged Friday to coordinate efforts to limit greenhouse gas emissions.

The regulators in those four states will work together to address climate change, from promoting energy efficiency to encouraging the use of clean energy, according to a joint framework they signed Friday. The signing ceremony launched an energy efficiency workshop at the California Public Utilities Commission's headquarters in San Francisco.

With these other Western states on board, California's groundbreaking new law to limit greenhouse gas emissions, AB 32, has an even better chance of succeeding.

Also, SB 1368, signed into law by Gov. Arnold Schwarzenegger, prohibits utilities in the state from buying electricity from high-polluting power plants. And California state law requires that by 2010, its investor-owned utilities must get 20 percent of their electric energy from renewable energy sources such as hydro, wind, solar, biomass and geothermal energy.

The Joint Action Framework on Climate Change outlines a commitment to regional cooperation to address climate change.

It reflects shared principles to act on the development of low-carbon technologies and renewable energy resources, and promote energy efficiency, conservation and demand response programs.

The respective heads of the California Public Utilities Commission, the Washington Utilities and Transportation Commission, the Oregon Public Utility Commission, and the New Mexico Regulation Commission signed the agreement.

"It makes sense to do all we can now to avoid the inevitable costs of carbon regulation," said Lee Beyer, chairman, of the Oregon Public Utility Commission. "We welcome the opportunity to work together to develop clean energy resources for the benefit of our ratepayers."

The accord may expand to include other Western states, the regulators said. The agreement is designed in part to stimulate a national policy on global warming. Meanwhile, the U.S. Supreme Court is hearing a Massachusetts case that could limit the ability of states, including California, to regulate greenhouse gas emissions.

"We're trying our best to work together in a unified program and hopefully the federal government will pay attention," said Michael Peevey, president of the California Public Utilities Commission.

Utilities in the four states are owned by companies including PG&E Corp., Edison International, Portland General Electric Co., PNM Resources Inc. and Puget Energy Inc.
Bloomberg News contributed to this report.