The Regional Greenhouse Gas Initiative is far from a perfect GHG bill. It is heavily allocation loaded, focuses only on a small sector of the economy (power plants >25 MW), and doesn't have any direct carrots to go with sticks.
The good news, such as it is, is that RGGI leaves many details to the discretion of the states, such that they can provide state-level patches to correct those absences in the overarching model. They can also make it worse.
Earlier this week, Connecticut chose the latter. As Restructuring Today ($ub. req'd) reports, Connecticut Gov. Jodi Rell (R) has decided that if the price of carbon gets too high, she should rebate the money back to rate payers to make their energy cheaper.
In other words, rather than letting markets allocate capital in response to the price of carbon, we should hide that price from energy users. Yuck.
Story below the fold.