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Executive Summary The Full Cost of Electricity



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The Full Cost of Electricity FCe Executive Summary The Full Cost of Electricity A SERIES OF WHITE PAPERS this page intentionally left blank is an interdisciplinary initiative of the Energy Institute of the University of Texas to identify and quantify the full system cost of electric power generation and delivery from the power plant to the wall socket The purpose is to inform public policy discourse with comprehensive rigorous and impartial analysis THE FULL COST OF ELECTRICITY The generation of electric power and the infrastructure that delivers it is in the midst of dramatic and rapid change Since 2000 declining renewable energy costs stringent emissions standards low priced natural gas post 2008 competitive electricity markets and a host of technological innovations promise to forever change the landscape of an industry that has remained static for decades Heightened awareness of newfound options available to consumers has injected yet another element to the policy debate surrounding these transformative changes moving it beyond utility boardrooms and legislative hearing rooms to everyday living rooms This paper is one in a series of Full Cost of Electricity white papers that examine particular aspects of the electricity system Other white papers produced through the study can be accessed at the University of Texas Energy Institute website energy utexas edu The Full Cost of Electricity FCe study employs a holistic approach to thoroughly examine the key factors affecting the total direct and indirect costs of generating and delivering electricity As an interdisciplinary project the FCe synthesizes the expert analysis and different perspectives of faculty across the UT Austin campus from engineering economics law and policy In addition to producing authoritative white papers that provide comprehensive assessment and analysis of various electric power system options the study team developed online calculators that allow policymakers and other stakeholders including



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