Cap & Trade Program

The Cap and Trade Program (C&T Program) is one of the state’s key implementation tools intended to encourage reduction of greenhouse gas (GHG) emissions as part of Assembly Bill 32 (AB 32), passed in 2007. Under the C&T Program , which is overseen by the California Air Resources Board (ARB), GHG emission reductions are accomplished through the use of economic pricing mechanisms that place a cost on the emissions of GHGs. Anaheim Public Utilities, like all other electric utilities in California, is a covered entity under the C&T Program and, as such, is required to participate in the C&T Program

As the Utilities generates electricity from its fossil fuel power plants, GHG emissions are also generated. In order to comply with the C&T Program, the Utilities must surrender allowances, essentially permits, equal in number to the total metric tons of GHG emissions from these electric generation facilities. The C&T Program gives incentives to the Utilities, and all covered entities, to reduce GHG emissions in order to reduce costs for procuring the allowances necessary to cover their GHG emissions.

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Anaheim Public Utilities Compliance

It is the Utilities goal to minimize the costs necessary to comply with the C&T Program requirements by employing a variety of measures that include, but are not limited to, managing how we generate electricity and how we acquire allowances. At this time, the C&T Program is not expected to result in any additional costs to customers; however, it does have the potential to add additional costs of up to $5 to $10 million annually, based in part, upon the future costs and the availability of allowances in the market. 

The status of the Utilities compliance with the C&T Program requirements is provided to the Public Utilities Board on a regular basis. Additionally, the C&T Program is only one of many regulations that are impacting the Utilities as a result of AB 32. Other regulations include the Renewable Portfolio Standard (RPS), which requires all California electric utilities to meet 60% of their customer needs with renewable energy resources by 2030, as well as energy efficiency and conservation requirements. 

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Cap & Trade Program Resources