growth, retirements, replacement of purchased power, and oil displacement. Renewable resources are preferred. A demonstration SPS rectenna site, because of its renewable primary fuel and oil displacement potential, could conceivably receive favorable regulatory treatment such as inclusion of construction work in progress (CWIP), expedited regulatory proceedings and advance guarantees of prudence of expenditures. Projected SPS costs, which must still be proven, are comparable to or favorable compared to a number of alternatives, including wind, biomass, hot water geothermal, or fuel cells. Estimates of costs of conserved energy for on-site solar thermal applications as derived by Lawrence Berkeley Laboratory are also comparable to SPS costs. Solar thermal costs for a $2,200 system are 3.3-7.4£/ kwhr based on lives of 20-10 years (LBL-9959). If solar thermal systems are subject to short lifetimes and escalation in component costs, best estimate SPS busbar costs could be significantly lower than on-site solar use. Utility involvement in SPS development would be undertaken in a multi-stage series of levels of support based on a benefit-risk analysis of the future undertaking. First, a utility might agree to buy power, generated by SPS, at a terrestrial point in its area for a price under the marginal cost of alternatives. Second, a utility might construct major transmission and substation facilities. Third, when reasonably sure that SPS will operationally transmit reliable power, utilities would construct rectennas. The Federal government can encourage involvement by utilities by establishing a national policy to "go satellite solar," by providing financial assistance to utilities to reduce oil use, by early allocation of western Federal land for demonstration rectenna sites, by developing demonstration projects to sell power to utilities at less than marginal costs, to fully fund environmental studies to provide future public assurance of adequate identification and mitigation, and by financial incentives such as CWIP, higher investment tax credits, and higher rates of return for renewable resources such as Solar Power Satellites.
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