Helping Clients With Their Energy and Environmental Needs


ERCOT Report on Carbon Costs

By Greg Russell

The Electric Reliability Council of Texas (ERCOT) - which manages 85% of the state's electric load - has released a report on the near-term impacts of proposed federal climate change legislation.  Among other things, the report finds that if natural gas prices are $7 per MMBtu, the carbon allowance costs must be between $40 and $60 per ton to reduce carbon emissions in ERCOT generation to 2005 levels, resulting in an annual increase in wholesale power costs of approximately $10 billion.

A copy of the report can be found here, posted by the Texas Public Utility Commission.

Tags: Carbon, Energy, Electric Power

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