United States electric utility adaptation to natural hazards and green power mandates

The paper focuses on the supply of reliable power and complements recent works that estimate firms and households' willingness to pay for stable power access. Over the past decade, utilities have faced tradeoffs between achieving carbon mitigation goals, offering reliable power access, and keeping retail prices low.

Using a generator panel dataset from 2013 to 2022, the authors document that electricity generation from renewables declines during extreme weather events. Although utilities have made some adaptation progress, investments in green and reliable green power are associated with higher electricity prices.