Last week, we looked at Total Resource Cost (TRC) tests that were developed decades ago to put a high value on avoided source energy costs. That was right for the time, but not today. I demonstrated that energy costs, mostly dominated by natural gas, are near historic lows, while zero-energy-cost renewables supply more electricity than coal-fired generation. Of course, renewable sources have zero source-energy consumption. Yet, utility commissioners are laser-focused on keeping electricity prices in check and maintaining the reliability of the electric grid. Electric Rate Basics Like the TRC, most utility rates (tariffs) are stuck in the 1970s. I…
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