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Utility regulations need reform

I'm at the Carbon-free, Nuclear-free conference in Takoma Park, Maryland, and yesterday I gave a presentation on state and municipal policies to reduce carbon emissions and save money. My co-presenter was Leon Jacobs, and in this video he briefly explains the incentive divide created by utility regulations that encourages the development of large, dirty power plants.
Leon's interview also offer some insight into why utility executives continue to ignore the economics of a federal cap-and-trade system.