Social Cost of Carbon

The following table is updated annually and outlines the social cost of carbon utilities will use to comply with the Clean Energy Transformation Act or CETA (2019).

In Docket U-190730, the commission adopted cost estimates produced by the Interagency Working Group on Social Cost of Greenhouse Gases. The commission adjusted this rate to reflect 2022 dollars using the U.S. Dept. of Commerce GDP price index.

The social cost values for intermediate years (2031, 2032, etc.) will be calculated using the same method.

Adjusted Cost of Greenhouse Gas Emissions

Table showing the increasing Social Cost of CO2 over time and adjustments for inflation.
Year	*Social Cost of CO2 (using 2.5% discount rate in 2007 dollars)	**GDP Index (2007 dollars/metric ton)	**GDP Index (2025 dollars/metric ton)	Inflation Adjusted Social Cost of CO2 (using 2.5% discount rate in 2025 dollars)
2010	$50	86.352	128.989	$75
2015	$56	86.352	128.989	$84
2020	$62	86.352	128.989	$93
2025	$68	86.352	128.989	$102
2030	$73	86.352	128.989	$109
2035	$78	86.352	128.989	$117
2040	$84	86.352	128.989	$125
2045	$89	86.352	128.989	$133
2050	$95	86.352	128.989	$142

* Social cost of carbon dioxide in 2007 dollars using the 2.5 percent discount rate, listed in table 2, technical support document: Technical update of the social cost of carbon for regulatory impact analysis under Executive Order No.12866, published by the interagency working group on social cost of greenhouse gases of the United States government, August 2016.

**U.S. Department of Commerce Bureau of Economic Analysis Gross Domestic Product Table 1.1.4 Annual Price Indexes (Line 1), last revised May 25, 2023.