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Democrats Seek To Federally Regulate Retail Electric Suppliers

May 09,2019



U.S. Senator Tina Smith (D-MN) and Representative Ben Ray Lujan (D–NM–03) along with Sens. Martin Heinrich (D-NM), Tim Kaine (D-VA), Sheldon Whitehouse (D-RI) and Brian Schatz (D-HI), have introduced the federal Clean Energy Standard Act of 2019, which would impose a national mandate on retail electric suppliers

According to Smith's office, the bill would, "Establish the federal Clean Energy Standard (CES) to put the U.S. on a path to net-zero electricity emissions. Under this plan, every company selling retail electricity would be asked to increase the amount of clean energy provided to its customers, with the recognition that different regions will be starting the clean energy transition at different benchmarks. This bill would establish a CES credit trading market, which would allow retail electricity sellers to cost-effectively achieve clean energy targets without taxes or other federal revenues[.]"

As used in the bill, the term "retail electricity supplier" means an entity in the United States that sold not fewer than 20 megawatt-hours of electric energy to electric consumers for purposes other than resale during the preceding calendar year

"To recognize regional differences in current deployment of clean energy, each seller of retail electricity will grow its share of clean electricity from a baseline set in 2019. For those with little initial deployment of clean electricity, the standard would require 2.75% annual growth in clean electricity delivered to retail customers. Once the threshold of 60% clean electricity is met, a retail seller would grow its clean electricity sales 1.75% annually, until it reaches the maximum federal obligation of 90% clean electricity. Small retail sellers, those with less than 2 million MWh of annual retail electricity sales, will grow 1.5% annually. If, in a given year, a retail seller cannot meet its clean energy target, it can buy Clean Energy Credits in a national market from clean energy generators or make alternative compliance payments. In 2040, the maximum requirement would increase 1% per year from 90% to put the U.S. on a pathway to net-zero electricity emissions," a summary of the bill states

See the bill here



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Democrats Seek To Federally Regulate Retail Electric Suppliers


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