Electricity Policy

       

Sun05192013

Last update09:04:33 PM

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The Great India Blackout - Could It Happen Here?

Vancko3 by Ellen Vancko

The US grid is in vastly better condition than India’s, but major outages here have been costly and preventable.  Given the threats posed by human error, solar storms, and cyberattack, we should take advantage of our resource diversity and get ahead of whatever problems may arise.
T

he massive power outages that swept across India this week leaving hundreds of millions of people without power brought back vivid memories of the August 14, 2003 blackout that left more than 50 million people in the Northeastern United States and Ontario, Canada in the dark. I’m not suggesting that India’s electric system is in any way comparable to ours, but we should remember that large blackouts have happened here and can happen again.

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Risk-Aware Planning and a New Model for the Utility-Regulator Relationship

Binz-home1 by Ron Binz and Dan Mullen

The analytical tools for utilities and regulators to take more explicit account of risk, in an increasingly uncertain world, are at hand.  What remains is the need for a more effective way to gauge and reward effective utility performance.
T

he US electric utility industry has entered what may be the most uncertain, complex and risky period in its history.  Several forces are conspiring to make the next two decades especially challenging for electric utilities: large investment requirements, stricter environmental controls, decarbonization, changing energy economics, rapidly evolving technologies and reduced load growth.  Navigant Consulting recently observed that “the changes underway in the 21st century electric power sector create a level and complexity of risks that is perhaps unprecedented in the industry’s history.”

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Prepaid Electricity Service: Smart Grid-Enabled Customer Choice

King-prepaid by Chris King

Far from what some may suppose, prepaid electricity service is a choice many utility customers – and utilities themselves –deem advantageous.  Customers who use it in Arizona and Oklahoma overwhelmingly like this purely voluntary option.
W

ith many utilities deploying smart meters, the electricity industry has a new opportunity before it: the ability to implement opt-in prepayment service at little incremental cost and considerable benefit both to the utility and customers who choose to participate in the program. Because smart meters include remote-connect and disconnect capability, implementing prepayment as part of service setup, with immediate connection and disconnection – e.g., in the case of a customer’s move – is simply a software matter. But prepayment offers both benefits and challenges. Can it be an attractive option? This paper reviews the issues and tentatively concludes that the answer is “yes.”

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Sustainable Utility Regulation and Socio-Economic Success

 by Richard J. Rudden

 Institutional investors are increasingly looking to invest in companies that embrace sustainable practices.  Given the trillion-dollar investment that utilities must make to modernize our electric infrastructure, both regulators and utilities should embrace the opportunity this development presents.
I
n early 2009, during the throes of our recent Great Recession, it was suggested that state regulators had a great opportunity to facilitate economic recovery and restore the retirement portfolios of perhaps millions of middle-income investors through more progressive return on equity policies. The same opportunity exists today, but even more so. With approximately $2 trillion of utility and energy industry capital expansion expected by 2035, the potential for regulators to make an even greater impact on our economy and society is significant.
 
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State Retail Electricity Markets

which path? by Kenneth Rose

States that restructured their electricity market to separate power generation from other retail services did so in part to create competition and bring their generally higher power prices down.  The move has not produced the desired result.
O
ne of Justice Brandeis’ more memorable quotes was from a 1932 dissent, in which he stated that “a single courageous State may, if its citizens choose, serve as a laboratory; and try novel social and economic experiments without risk to the rest of the country.”  While states do not necessarily start out to perform an experiment so much as change public policy, 13 states and the District of Columbia did decide to restructure the electricity market in their jurisdictions, separating generation from retail electricity service and allowing retail customers access to a variety of service suppliers.   More than twice as many states – 30 in all – chose not to do so.
 
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