The benefit-pricing approach is technology neutral--it would link sourcing decisions to true social costs without favoring one technology platform over another. It is different from traditional, least-cost pricing. Under the proposed plan, generators would be financially rewarded for lowering the environmental costs that they pass on to society or for lowering the integration costs that they pass on to the bulk power provider--this would be on top of existing incentives to lower their own private generation costs. The ultimate goal is to maximize the net social benefits from electricity generation for the citizens of Colorado.
