A Renewable Approach To State-Imposed RPS

Law360 (February 3, 2010, 2:12 PM EST) -- At present count, 31 states and the District of Columbia have adopted legislation imposing some form of renewable energy objective, often referred to as Renewables Portfolio Standards (RPS), or Renewable Energy Standards.

Generally speaking, most state RPS programs require electricity supply companies to either (1) provide a percentage of energy sales, calculated in megawatt hours (MWhs), or installed capacity, calculated in megawatts (MWs), from renewable energy sources (such as wind, solar, biomass and geothermal), or (2) pay a predetermined penalty. The required percentages of renewable energy increase incrementally on an annual basis, beginning from a base year, until an ultimate RPS...

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