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The Sierra Club, an environmental group focused on reducing fossil fuel pollution, has graded 75 utilities on their resource plans through 2035. The average grade was a “fail.”
The Sierra Club has released a report on how the resource plans of half of U.S. electric utilities will affect their emissions from burning fossil fuels.
The group analyzed 75 operating utilities owned by the 50 utility parent companies that held the most coal and gas generating capacity as of 2021, when the Sierra Club began its annual report.
The report gave six of the 75 utilities an “A” grade, based on points awarded for planned coal retirements and renewable energy deployment, and points deducted for planned gas deployment.
The six companies that received an “A” rating are Public Service Company of Oklahoma, NV Energy-Nevada Power Company, NV Energy-Sierra Pacific Power Company, Entergy Arkansas, Xcel Minnesota/Wisconsin and Northern Indiana Public Service Company.
All but the last of these companies are owned by parent companies that received a rating of “B” or lower.
The average grade for all companies was “D”.
The 75 companies plan to build 168 GW of solar power and 70 GW of wind power by 2035, a spokesman said.
They plan to retire 58 GW of coal-fired units of the 148 GW they own, although “only 30%” of the companies have committed to retiring their coal generation by 2030, according to the report.
Utilities are planning new gas capacity totalling 93 GW.
“Only 10” utilities have committed to reducing their emissions by 80% by 2030, while collectively, utilities plan to replace 52% of their fossil fuel generation by 2035.
The report makes six recommendations to utilities “to improve their planning”:
Conduct “rigorous” modelling of generation and transmission resources. According to the report, some companies “lack a formal integrated resource planning process.”
Accurately model available renewable energy options and “incorporate the risks” of building more fossil generation.
Incorporate into resource planning the federal incentives available under the Inflation Reduction Act.
Increase the transparency of planning processes.
Use requests for proposals (RFPs) for all sources when seeking new generation resources.
“Maximize available interconnection points” and work with local governments and communities to enable the development of renewable energy.
The Sierra Club works to promote clean energy, a spokesperson said, noting that the organization “has worked directly with utility companies to find clean energy solutions,” that it works with lawmakers on legislation like the Inflation Reduction Act , and that it “empowers its members to use their voice and call for local changes that pave the way to a healthier, greener future.”
The Sierra Club report is titled “The Dirty Truth About Utility Climate Commitments.” |
