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- EPA power plant rule upheld // How a banking regulation may impact utility bills // Zambia's plan to increase copper production
EPA power plant rule upheld // How a banking regulation may impact utility bills // Zambia's plan to increase copper production
Welcome to Grid Brief! Here’s what we’re looking at today: a federal court upholds EPA power plant rule, how a 2008 banking regulation could impact energy bills in 2024, and Zambia plans to boost its copper output.
DC Court Upholds EPA Power Plant Rule
On Friday, the DC Circuit Court of Appeals rejected requests to put the EPA’s latest power plant on hold while Congress determines the rule’s fate. Finalized in April, the rule mandates coal and new gas-fired power plants operating past 2039 meet the equivalent emissions levels of installing a carbon capture system at 90% efficiency. Compliance under this rule begins in 2032.
Groups opposed to the rule—including the National Rural Electric Cooperative Association—plan to appeal to the Supreme Court and stay the rule while legislation is being considered, per Ethan Howland of Utility Dive.
Both the House and Senate have introduced resolutions of disapproval against the rule using the Congressional Review Act, which allows Congress to undo an agency’s final ruling.
Could Looming Bank Regulations Raise Your Energy Bill?
A policy enacted in response to the 2008 financial crisis may have reverberating impacts in 2024, argues Stuart Saulters of the American Public Gas Association.
Developed by the Basel Committee on Banking Supervision (BCBS), Basel III Endgame (B3E) is a series of robust policy reforms aimed at bolstering the resilience of the global banking system by requiring banks to maintain sufficient capital reserves. The core focus of B3E is to create stricter capital adequacy ratios (the amount of money a bank must have on hand relative to its risk-weighted assets). The greater the amount of risk, the greater the amount of capital the bank must have to protect its depositors.
Public utilities often use financial mechanisms to hedge natural gas prices and protect consumers from market fluctuations. B3E may have the unintended consequence of increasing the cost of hedging, which will result in higher utility bills for consumers.
Read more here.
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Conversation Starters
Zambia plans to increase copper production (Bloomberg)
Copper production hit a 14-year low in 2023, but Zambia says it will reach 1 million tons in annual output by 2027 before reaching 3 million tons in annual production by 2031.
H&M partners with Rondo Energy to reduce greenhouse gas footprint (GreenBiz)
Rondo Energy has developed a thermal brick that stores renewable energy at high temperatures. H&M will deploy Rondo’s battery plus renewables to replace the coal that powers H&M’s supplier mills.
Is it time to get used to pricey, less expensive electricity? (The Wall Street Journal)
With more utilities preparing to invest in grid upgrades, consumers may soon be footing the bill. Customers of roughly 17 large utility companies may see rate hikes above the rate of inflation between 2022 and 2027, according to Sector & Sovereign Research.
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