AAEA Arkansas Advanced Energy Foundation

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Utility Avoided Costs in Arkansas

October 31, 2012

“Utility Avoided Costs in Arkansas: Present and Future Implications for Developing Renewable Energy”

As the State of Arkansas considers policies to encourage growth of renewable energy within the state’s electricity generation profile, the subject of utility avoided costs will play a crucial role. In a study, commissioned by the Arkansas Advanced Energy Association and funded through a grant from the Energy Foundation, economist Jim Metzger, Histecon Associates, and his colleagues at the University of Arkansas at Little Rock's Institute for Economic Advancement, the avoided costs of traditional energy sources are profiled against the potential utilization of renewable sources. The study examines six common methods to calculate avoided costs that are used currently by utilities, profiles six states approach to renewable energy generation, and reviews various state reactions to federal mandates to consider environmental costs. View the study in its entirety here. And view powerpoint webinar here.

UPDATED Study - May 2013


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