Emissions trading: Effects on utility planning and operations

The goal of this paper is to give utility planners an additional perspective on how a market for emission reduction credits might work so they can be better prepared to respond to the proposed legislation. With that goal, it attempts to be provocative rather than reassuring. It is important to understand that the analysis and insights presented here are pertinent to a situation in which there is a functioning market, but whether or not that will be the case may not be known for several years. The paper offers a collection of ideas about the nature of an emissions trading market and its implications to utility compliance strategies, operations and planning approaches