This Little-Known Electricity Agency Could Give Renewable Energy the Push It Needs

State public utility commissions have the power to reduce carbon emissions and address climate change. Some have already begun.

With renewable energy on the rise, many electric utilities dependent on fossil fuels are facing a crisis. Some are embracing the challenges necessary to implement clean energy, but others are resisting change. A new stories series from听探花精选听investigates the industry at this crucial time. Read听,听Part 2, and听Part 3.

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Public utility commissions (PUCs) are regulatory bodies critical to the climate fight.听They exist in every state and听have been around for more than a century, making sure that utilities provide electricity at just and reasonable rates. Yet they are largely unknown. Most people interact with them听only through their听electricity bill. But behind the scenes, the agencies听are key players in regulating the energy supply and therefore the United States' carbon emissions.听

Every state has different rules for how its PUC (also known as a public service commission or utility regulatory commission) operates. Usually comprised of fewer than 10 commissioners appointed by a governor or elected by voters, and supported by sometimes hundreds of staffers, the authorities manage a state鈥檚 electric grid. This work is technical and esoteric. Commissioners听calculate electricity prices, manage energy efficiency programs, and regulate new energy sources, including听home solar panels.

Most of this work is invisible to consumers, occurring behind the scenes of the power outlets and light switches in our homes.听But their contributions are pivotal as states transition from fossil fuel to clean energy to meet听听so far. To get there, energy producers will need to phase out older coal- and gas-burning power plants and build in new renewable energy sites. This is a complicated task that will require PUC expertise, authority, and input.

While some PUCs have gotten started on this work, they could be doing more to address climate change, experts say.听PUCs could be using the tools they already have鈥攆or example, calculating听the cost of different energy sources鈥攖o direct the utilities they oversee to support renewable energy development and to limit greenhouse-gas emissions.听

鈥淎t this point, public service commissions should be changing their mandates,鈥 says Stephanie Eyocko, an energy industry analyst.Keeping global temperatures from rising more than 1.5 degrees Celsius by limiting emissions from the energy sector, she says, 鈥渄efinitely needs to be included as one of the guiding stars that public utility commissions have.鈥

Admittedly, commissioners using their regulatory tools to manage greenhouse-gas emissions would be a shift from their founding purpose: to prevent utilities鈥 abuse of power. When PUCs came into existence at the turn of the century, governments allowed electricity providers, including many of today鈥檚 investor-owned utilities, to operate monopolies over the grid as long as they provided affordable, reliable power. Those governments set up PUCs to make sure utilities don鈥檛 hike rates to take advantage of consumers who need electricity to survive.

Over time, though, the grid has evolved significantly. Consumers鈥 demand for electricity has increased. How we produce electricity has changed, and so has knowledge of how producing that electricity affects the Earth鈥檚 climate and its inhabitants: In 1968 Lyndon B. Johnson鈥檚 science advisor that rising carbon emissions could trigger catastrophic climate effects. Electricity generation , a number that needs to fall precipitously to avert climate crises.

There鈥檚 a fair argument that PUCs shouldn鈥檛 only prevent utilities from unfairly raising electricity costs, but also push them to protect consumers鈥 futures. Legislators in Maryland, Colorado, Hawaii, Rhode Island, Maine, and Massachusetts agree. Each recently enacted legislation requiring PUCs to consider the effects of climate change and help advance policies that address the crisis. 鈥淭he states that have been most effective in advancing renewables and strong greenhouse gas [limits] have done it through legislative mandate,鈥 says David Littell, a former commissioner of the Maine Public Utilities Commission.

Sometimes these directives are broad and permissive. In Maryland, for example, last summer state lawmakers passed House Bill 298, which directs the PUC to consider 鈥渢he protection of the global climate.鈥 The commission was already evaluating how it could modernize the grid and reduce costs by looking into energy storage, electric vehicles, and time-of-use rates. It听听applications for offshore wind. Now听it has a mandate to further integrate climate costs into its work.

In other states the mandates relate to specific laws. In Rhode Island, commissioners are evaluating how to implement a new legal target, set last summer, to reduce emissions to听zero by 2030. The state PUC has some experience in this area. It's already听responsible for implementing a cap-and-trade program to reduce emissions across the Northeast and Mid-Atlantic known as the Regional Greenhouse Gas Initiative. Because of that program, 鈥渟ome of the costs of carbon pollution in the electric sector are already included in the market price,鈥 says Abigail Anthony, who serves on Rhode Island鈥檚 public utility commission and the nonprofit National Association of Regulatory Utility Commissioners board. Now the state can incoporate more.

There is room for boldness in what they consider a climate cost. Anthony听argues that 鈥渢he societal cost of carbon pollution,鈥 such as stronger storms and rising seas, that are not reflected in the market can 鈥渞ightfully can be attributed to electricity consumption.鈥 PUCs could include these costs in pricing electricity calculations, she says.听

Whether or not they're directed by the state, commissions have more power than they're currently using.听鈥淐ommissioners have discretion in the costs that they consider, and they're not fully taking advantage of it,鈥 says Alicia Brown, an energy analyst with Savannah, Georgia, a city听听to source more clean electricity.听Under existing statutes many could ramp up programs that incentivize consumers to purchase energy-efficient appliances or reduce electricity use when demand is high, Brown says. And reconsidering energy costs听to include fossil fuels' effects on听the climate and consumers听could result in new efforts to meaningfully reduce emissions and develop renewable energy, say both Eyocko and Brown.

Still, most PUCs exist to evaluate the economics of electricity, not the costs to people from the consequences of climate change or damages to the environment. 鈥淭he commissions really aren't designed [to] and really don't effectively accelerate cleaner generation and grid modernization,鈥 Littell says. 鈥淭hey're designed to regulate the status quo.鈥 But given the commissions鈥 purview and expertise, that might be changing, and we could soon find that the听agencies can learn some new tricks.听