Electricity Policy

       

Thu09182014

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Preserving Economic Demand Response: Promptly and Lawfully

Preserving Economic Demand Response: Promptly and Lawfully

 By Scott Hempling

The value of economic demand response is so great that our collective interests should not wait on lengthy appeals of a D.C. Circuit panel’s decision to preserve this option.  Instead, FERC, the states, utilities, generators, and Congress have alternatives to continue this cost-saving practice without running afoul of the D.C. Circuit’s action.
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he day before my first appellate argument, at the Ninth Circuit in April 1989, I went to court to observe.  One pair of opponents, having finished before the judges, continued arguing in the hallway.   We could keep arguing too, for the months and years that will pass while the full D.C. Circuit and the Supreme Court review last month’s D.C. Circuit panel opinion.  Or we can bear down and find ways to make demand response work.  This essay proposes some actions, categorized according to who can take them: generators, FERC, retail utilities, states, municipalities and Congress.

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The State and Promise of Energy Storage

The State and Promise of Energy Storage

by Ken Dragoon

There are many potential avenues to developing economically viable options for energy storage. Reaching any of these goals will be a powerfully transformative element of a more modern and efficient electricity grid.
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nergy storage has become one of the hottest topics in the electric power industry today, as evidenced by a burgeoning number of new studies, conferences, technological breakthroughs and new policies.  The interest in energy storage is inevitably linked to rapidly rising penetration levels of variable energy resources—primarily wind and solar.  Perhaps the most significant recent development is California’s adoption of  an energy storage procurement target for the state’s three investor-owned utilities to acquire 1,325 MW of energy storage by 2020.

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Tracking the Consumer Value of Smart Grid Deployment in Illinois and Beyond

Tracking the Consumer Value of Smart Grid Deployment in Illinois and Beyond

 

by Raya Salter

With huge investments needed to modernize the electricity grid, it’s imperative that all parties at interest have a voice both in determining the rules by which utility improvements are judged and ensuring that the environmental and efficiency promises of the smart grid are achieved.
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ithin the last decade, several states, including Illinois, began considering or adopting laws and regulations to enable utility investment in smart grid technologies.  The Electricity Infrastructure Modernization Act of 2011 (EIMA) ushered in $3.2 billion in smart grid investments for the Illinois utilities, Commonwealth Edison (ComEd) and Ameren Illinois (Ameren).  EIMA produced the largest electric infrastructure investment Illinois utilities will have made in a generation.  The law was the product of negotiations and collaboration between several stakeholders, including the two utilities and consumer advocates. Ultimately, EIMA mandated performance rates, including express metrics for success, designed to ensure that the investments deliver consumer benefits within a 10-year time frame.

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Democratizing Demand and Diversifying Supply: Legal and Economic Principles for the Microgrid Era

Democratizing Demand and Diversifying Supply: Legal and Economic Principles for the Microgrid Era

 

by Scott Hempling

Microgrids can enhance security and local control for discrete locations on the larger interconnected electric grid. The relationships and mutual responsibilities of the microgrid and the external grid need to be carefully defined, however. Here is a framework for doing just that.
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icrogrid policy, if carried out cost-effectively, offers two distinct benefits:  democratization of demand, allowing consumers to custom-design their own services; and diversity of suppliers, allowing consumers to choose providers based on their merits.  Whether these benefits emerge will depend on how well state legislatures and commissions resolve questions about market structure, customer responsibility and utility compensation.  This article identifies the main questions, along with the legal and economic principles necessary to answer those questions.

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Tapping Into the Potential of Energy Storage

Tapping Into the Potential of Energy Storage

 

 

by Hon. Carla J. Peterman and Melicia Charles

By legislation and regulatory decision, California has recognized that its long-term clean energy and environmental goals are not likely to be met absent a viable storage economy.  Regulators have set forth an open, flexible process intended to lead to that result.  

I. The Changing Needs of California’s Electric Infrastructure

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alifornia energy policy supports an ambitious transition from conventional fossil generation to renewable and other clean resources. Policies such as the state’s 33 percent Renewable Portfolio Standard, zero net energy goals, the Governor’s Zero Emission Vehicle Plan, and now energy storage targets are positioning the state to attain this future. Imbedded in this vision is the expectation that California will achieve these policy goals while promoting greater efficiency, reliability, affordability, and increased safety.

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Electricity Daily

GAO: More coal plant retirements, fewer retrofits = more inter-agency attention

GAO: More coal plant retirements, fewer retrofits = more inter-agency attention

September 18, 2014 -- The Department of Energy, Environmental Protection Agency, and Federal Energy Regulatory Commission have acted to implement a recommendation the Government Accountability Office made in 2012 that these agencies develop and document a joint process to monitor industry progress in responding to four proposed or finalized EPA regulations affecting coal-fueled generating uni...

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Shorts: No en banc review of Order 745; Duke goes solar; NYC builds hydro

Shorts: No en banc review of Order 745; Duke goes solar; NYC builds hydro

—New York City Department of Environmental Protection Commissioner Emily Lloyd announced Tuesday that DEP will build a new hydroelectric facility at the city’s Cannonsville Reservoir, in Delaware County. The 14-MW facility will advance New York City’s goal, outlined in PlaNYC, of developing affordable, clean and renewable energy supplies that support economic growth while reducing the city’s overall...

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FERC conference on ‘uplift payments’ amplifies a staff report on the subject

FERC conference on ‘uplift payments’ amplifies a staff report on the subject

The Federal Energy Regulatory Commission held a technical conference on the subject of “uplift payments” in regional transmission organization (RTO) and independent system operator (ISO) markets on September 8, with similar meetings aimed at addressing the issue of price formation for services in regional markets yet to come. It follows a staff report on the subject that was disseminated seve...

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Japan: After Fukushima disaster, gradual nuclear plant restarts begin

Japan: After Fukushima disaster, gradual nuclear plant restarts begin

After the shutdown of nuclear power plants following the Fukushima Dai-ichi disaster, Japan closed the remainder of its substantial nuclear fleet—50 units, which supplied 30% of the island nation’s electric energy. To make up the shortfall, Japan had to rely more on imported fossil fuels, especially on liquefied natural gas. Japan now depends on fuel imports for approximately for 84% of its primar...

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Energy Points: Renewables yield more useful energy than fossil fuels. Duh

Energy Points: Renewables yield more useful energy than fossil fuels. Duh

The true cost of electricity is hard to determine, given that it consists of a number of inputs: the cost of fuel itself, the cost of production, and the cost of addressing the damage that consumption of the fuel causes to the environment. Energy Points, which performs energy analysis for business, calculates these values in terms of what percentage of the energy input becomes usable electricity. ...

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Moeller outlines carbon, reliability, and gas-electric coordination challenges

Moeller outlines carbon, reliability, and gas-electric coordination challenges

By Robert Marritz

Union, Wash., September 17, 2014—Federal Energy Regulatory Commissioner Philip Moeller told the annual meeting of the Northwest & Intermountain Power Producers Coalition yesterday that studies of the US’s natural gas reserves indicate the nation might expect the resource to last perhaps an additional ten to 20 years and continue to offer prices in the range of $4 to $5/mmBtu.&...

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Editorials

The Ohio proposals: Are some suppliers unable to weather market conditions?

The Ohio proposals: Are some suppliers unable to weather market conditions?

The nation’s regional transmission operators generally do a fine job of managing a complex, interdependent grid system and its related power and power services markets. These RTOs and independent system operators (one wishes we would settle on one term) bring order to a Balkanized system of plants, wires, and ownerships. The ISOs and RTOs reduce reserve requirements and provide transmission and ot...

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FERC decisions can’t trump state regulators’ prudence reviews

FERC decisions can’t trump state regulators’ prudence reviews

The Supreme Court’s decision to deny Kansas City Power & Light’s petition for review of lower court decisions upholding Missouri’s disallowance of costs that had been approved by the Federal Energy Regulatory Commission interested us; it seemed to cry out for a further look. But on that further look it became clear that KCP&L’s case was simply the proverbial “dog that won’t hunt.”

The case,...

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Climate change, near-term and long-term

Climate change, near-term and long-term

Which is more dangerous, carbon or methane? Odysseus’s choice or Sophie’s Choice?

An excellent op-ed in yesterday’s New York Times by Justin Gillis, “Picking Lesser of Two Climate Evils,” addresses the debate in the scientific community about whether it is more important to control carbon in the atmosphere or methane. Both positions have their advocates, but there is no question that carbon, the less...

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The mystery of markets: How best can they serve the public good?

The mystery of markets: How best can they serve the public good?

Markets are ubiquitous in our lives but, until recently, not so in the electricity business. They are a bit unusual even for many who believe they understand them, and especially for those who grew up in the regulated industry and still see its merits.

Markets are not entirely predictable; they respond to external forces: The end of load growth. Abundant wind power. Abundant natural gas. Rooftop so...

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Getting the numbers right: Be careful what you wish for.

Getting the numbers right: Be careful what you wish for.

The discussion about net metering – the price utilities are required to pay their rooftop solar customers for solar energy delivered to the utility – seems to have slipped offstage for a break, like a warm-up act for bigger, related policy questions. Here are two: 

  • What is the value of the grid and its interconnection to a solar, microgrid or other bypassing customer? Or, more precisely, what ...

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New York’s stealth utility tax: Cuomo administration earns a Bronx cheer

New York’s stealth utility tax: Cuomo administration earns a Bronx cheer

We erred Tuesday in attributing a New York state utility surcharge to being associated with a fund for energy efficiency investments, and we thank the Natural Resources Defense Council’s Ralph Cavanagh and Jackson Morris for correcting that mistake. 

The so-called “18-a assessment” on New York utility bills was established during the Empire State’s 2009 financial and budget crises to provide a...

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