Ohio’s clean energy economy celebrated a big win this week. The Public Utilities Commission of Ohio (PUCO) denied American Electric Power Company’s (AEP) request for guaranteed profits to operate its aging, uneconomic coal power plants. EDF, along with many other parties, opposed AEP’s proposal.
EDF applauds the Commission for recognizing AEP’s proposal would not benefit Ohio residents and businesses. These old coal plants cost more to operate than the value of power they generate. Plus, they produce harmful greenhouse gas emissions which, if the plants continue to operate, would make it more difficult for Ohio to comply with the Environmental Protection Agency’s (EPA) proposed Clean Power Plan, which would set the first-ever limits on carbon emissions from existing power plants.
The Public Utilities Commission’s decision sends a clear message: power companies can no longer rest on their laurels. Clean energy businesses, entrepreneurs, investors, and Ohioans are ready for a new era – one in which utility profits are not placed ahead of Ohio’s best interests.
With gas prices low, an increased use of renewable energy, and weak demand resulting from customer energy efficiency improvements, some utilities like AEP are now burdened by their heavy reliance on coal – and looking to their customers to bail out their uneconomic power plants. Thankfully, yesterday’s decision assures that the market will remain competitive, giving clean energy resources an equal opportunity to compete with legacy fossil fuel plants. Read More
New York opened its “Reforming the Energy Vision” (REV) proceeding earlier this year to re-examine the utility business model. As part of this proceeding, state regulators will also look into removing market barriers preventing greater deployment of distributed energy resources (DER), which are smaller-scale clean energy resources, such as energy efficiency, energy storage, and local, on-site generation.
In recent years, DERs have made great strides due to market reforms, advanced technologies, and declining costs. Despite these advances, DERs serve less than 1% of national electricity demand as the existing utility business model and regulatory policies still favor traditional electricity distribution from a centralized grid.
Though the REV proceeding is in its early stages, the Department of Public Service Staff (Staff) has provided guidance recommendations for eliminating these market barriers. Using the Staff’s filings, EDF has drafted a white paper that compiles a Top 20 list of the changes required before we will see greater use of DERs. If adopted, these recommendations would result in a sea change for incorporating DERs into New York’s electric system and would provide a template for other states to follow. Read More
The New York Public Service Commission (Commission) has embarked on the landmark Reforming Energy Vision (REV) proceeding to design a new business model for electric utilities. Today’s business model allows utilities to earn revenues based on how much money they spend to supply and deliver electricity. Under the new model, utilities will earn revenues based on the value of services they deliver to customers and the environment.
Currently, utilities dominate the electricity service market, limiting customer access to the full range of products and services otherwise available in a truly open market. One focus of the proceeding is to remove the barriers preventing third parties, such as retail electric suppliers, solar energy companies, or smart meter providers, from fully participating in the energy market. Allowing full participation by third parties would lead to increased innovation and fuel the development of new products and services. Read More
Source: Frank Edens Flickr
America’s electric grid has not been updated since World War II when telephones, dishwashers, and air conditioning were the cutting-edge technology innovations of the century.
Today, this same grid is struggling to cope with the technological advances of the last decade, a reality that hit home for New Yorkers in the wake of Superstorm Sandy when millions of people lost power for days and even weeks.
But New York is taking steps to change this. A proposal to overhaul the state’s utility business model could dramatically change how people interact with their power company.
It could bring in innovative technology to help homes and businesses better manage their own energy needs, while at the same time reduce carbon emissions – changes that would have national implications. Read More
The U.S. electric grid has not been updated since World War II when telephones, dishwashers, and air conditioning were the cutting-edge technology innovations of the century. Today, this same grid is struggling to cope with the technological advances of the last decade, a reality that hit home for New Yorkers in the wake of Superstorm Sandy when millions of people lost power for days and even weeks.
But New York is taking steps to change this, first by initiating a proceeding in April to overhaul the state’s utility business model, and now by opening the proceeding to comments. EDF filed our comments (Track 1 and Track 2) in this case last Friday, July 18th, and commends the New York Public Service Commission for the opportunity to provide our input on this exceedingly important policy that will have national implications.
New York played a leading role in establishing today’s utility business model. Thomas Edison developed the first power plant on Pearl Street in Manhattan in 1882, serving 85 lighting customers. Read More
Source: Leatherndevil, via Wikimedia Commons
According to the Electric Power Research Institute, the U.S. will need to invest $124 billion between now and 2030 to upgrade its electric distribution system, and these upgrades will require state utility commissions to thoughtfully plan for and oversee the investments. Last week, Massachusetts became one of the first states to begin this process by taking a bold step to modernize its electric grid, joining states like New York and Hawaii, which recently introduced similar measures.
On June 12, 2014, the Massachusetts Department of Public Utilities (DPU) ordered utilities to file ten-year grid modernization plans. These plans will spell out how utilities plan to incorporate modern technology to improve electric service and connect clean energy resources to the grid. This will provide customers access to cleaner and higher quality electricity service at a lower cost. Read More