One unique feature of utility regulation is that monopoly utilities are required to purchase electricity from small, independent renewable energy (and cogeneration) facilities. It’s true!—and based on a federal law passed in 1978 to reduce the nation’s reliance on fossil fuels. When a developer builds a power plant and sells that electricity to the utility, the utility doesn't have to increase its own generation by building new energy resources — thus benefiting from the avoided cost. The prices paid to small power producers cannot be more than the price the utility would spend to make (or purchase) its own energy. But how do you compare the cost of 20+ years of fuel-free, emissions-free renewable energy with the cost of 20 years of price-volatile natural gas?
First Utility-Size Solar Park Readies to Power Utah Homes… And That’s Just the Beginning
Utah Clean Energy’s expert testimony provided in a technical utility proceeding helped to bring multiple new, utility-sized solar and wind projects to Utah. When all of the different projects are completed, they will equal a combined total of a Gigawatt of clean energy. A Gigawatt! To put that into perspective, 1GW of solar can power up to 200,000 homes and is equal to about 1 coal-fired power plant. The first of these new projects includes the Red Hills Renewable Park, which recently “alone, will power approximately 18,500 Utah homes with solar power! Another solar farm is under way at the South Milford Solar Plant which is expected to generate enough electricity to power more than 500 homes, and should eliminate the emission of more than 12 million pounds of carbon dioxide per year.