A new study finds much of the world’s potentially recoverable shale resources are located in regions with limited water resources needed for advanced well completion technology like hydraulic fracturing. “Water risk is one of the most important, but underappreciated challenges when it comes to shale gas development. With 386 million people living on land above shale plays, governments and business face critical choices about how to manage their energy and water needs,” said Andrew Steer, President & CEO, WRI. “This analysis should serve as a wake-up call for countries seeking to develop shale gas. Energy development and responsible water management must go hand in hand.” [World Resources Institute]

EPA’s proposed carbon rule could stimulate regional cap and trade programs administered at the state level. The rules gives states wide latitude in determining how to cut greenhouse gas emissions from existing power plants. And while cap and trade is just one potential option, the programs are fairly cheap and easy to implement, which could make them attractive to state governments looking for ways to comply with the new regulation. [Governing.com]

US residential retail power prices increased 3.2% over the first half of 2014, with New England facing the steepest increase of 11.8% due in large part to a wholesale power price increase. “The primary driver of the recent increase in New England retail rates was the sharp rise in wholesale power prices. For the first six months of 2014, the day-ahead wholesale power price in the ISO-New England control area averaged $93 per megawatt hour, 45% higher than the average wholesale price during the same period last year. The increased cost of producing electricity in New England is evident in the 21% increase in the energy-only component of restructured retail suppliers’ rates.” [EIA]