Environmental Compliance Cost Recovery: ECCR

Persistent increases in environmental compliance costs resulting from EPA regulations will continue to affect the cost of wholesale power.

Maintaining regulatory compliance can require capital investment and operational changes through system retrofits or operational adjustments.

Public Power Communities can collect environmental compliance costs through the implementation of an ECCR (Environmental Compliance Cost Recovery) adjustment. Defining the cause of the cost increase by rate line item instead of bundling it with the Power Cost Adjustment (PCA) offers transparency and direct cost-causation to retail customers.

The investor-owned utility in Georgia has been recuperating costs through an ECCR adjustment since 2008. ECG Communities are beginning to explicitly define these costs for retail customers, as well.

If you would like more information about this effort and how to implement it locally, contact Ellen Richardson.