1. Tips for Consumer Advocates to Manage Environmental Regulation Presentation to NASUCA Conference Santa Fe, New Mexico June 2, 2014 Steven Michel, Energy Program Western Resource Advocates

2. THE ISSUE Environmental regulation is incremental. Regulation makes electricity more costly. How can consumer advocates manage this?

3. FIVE TIPS:

4. First: Recognize all environmental and health costs in resource planning.

5. National park: Environmental protection has value Superfund site: E nvironmental impacts are costly

6. Second: Don’t be shortsighted or too obsessed with rates.

8. Third: Help design good, effective regulation that minimizes cost.

9. Carbon Tax vs. Carbon Reduction Credits

10. Utility emits 1 million tons CO 2 per year Goal: 10% reduction Reductions/tax = $10/ton

11. Carbon Tax: Utility emits 900K tons; taxed $9 million Utility reduces 100K tons; costs $1 million Rate impact: $10 million Reduction credit requirement: Utility reduces 100K tons; costs $1 million Rate impact: $1 million

12. Environmental outcome is identical.

13. Fourth: Recognize common threads.

15. Fifth: Be proactive… insist on forward thinking.

17. Questions