Contrary to what you might hear, not every entity subject to California’s carbon cap and trade regulation is losing money.
Lodi Electric Utility was able to sell one-third of its carbon allowances at the first auction earlier this month, making $545,000, according to LEU Director Liz Kirkley.
In other words, Lodi — which has a relatively clean new natural-gas power plant — was able to sell its allowances to polluters that still have a long way to go to clean up their emissions.
In any market, there are buyers and sellers. For now, at least, Lodi is lucky enough to fall into the second category.
The money, however, will be put into a separate account for future state-mandated climate change requirements, Kirkley said.
So, yes, there’s always another rule or regulation around the corner.