The U.S. economy is wonderfully dynamic. New businesses launch daily, creating jobs and providing tax revenues for schools and police. Innovative technologies are introduced, offering customers more choice and improved services. Sometimes, of course, those new firms and devices replace existing institutions and products.
Today’s electricity industry is no exception. Technological advances are helping hundreds of new businesses deploy wind turbines and solar panels, build new natural-gas generators, and install monitors and controls that increase the efficiency of buildings and factories. At the same time, uneconomic and often dirty power plants are closing – within the past few years more than 10,000 megawatts of electric capacity in Ohio alone have closed or been announced to close.
Such closures can be good for customers, since they enjoy lower costs from the modern technologies. Closures can also be good for public health and the environment, since old units no longer spew mercury, carbon dioxide, and other harmful pollutants into the air.
Plant closures, however, also impact energy workers and their local communities. As the country’s energy system transitions from coal to cleaner ways of making electricity, companies and policymakers should support and provide resources for those most affected – so everyone may benefit from the clean energy economy.
Mexican President Peña Nieto today formalized Mexico’s plan to join the U.S. and Canada in making oil and gas methane reductions a national priority, marking yet another country taking leadership to address this extremely potent greenhouse gas. The three leaders agreed that each of their countries would develop rules to cut up to 45 percent of methane escaping from across the continent’s oil and gas industries by 2025. It’s a pledge that once fully realized would have the same 20-year climate effect as taking 85 million cars off the road. Featured among a package of broader energy and climate commitments, the common methane reduction goal is a centerpiece.
This announcement is a milestone for North America energy integration and cooperation. But, it’s also an important moment for Mexico. The commitments Mexico is making both in-country and as part of the continental pact on methane, distinguishes Mexico as a clear world leader on energy and climate issues, along with the U.S. and Canada. By taking advantage of low-cost, oil and gas methane reductions, Mexico can make an immediate down payment on its climate goal – cuts can deliver about 10% of the greenhouse gas reductions Mexico pledged, and all at a cost savings. The key will be implementation and what steps Mexico takes next are critical. Read More
California has a nice problem: It’s producing so much clean solar energy that the state’s electric grid is at capacity, and sometimes beyond.
As Vox’s David Roberts reports in his excellent piece about California’s grid headache, it makes good sense to expand the system by interconnecting state-run energy markets.
But he also notes, at the end of his story, some other and complementary strategies California can use to increase its grid bandwidth – while accommodating rapidly growing, but variable, renewable energy sources.
Connected grids, alone, are not a long-term fix. Read More
By Tim O’Connor and Lauren Navarro
Ongoing fallout from the catastrophic failure at the Southern California Gas Company’s Aliso Canyon storage facility is exposing a critical weakness in the state’s energy system. Overdependence on natural gas – and on one provider of that gas – means we don’t have the flexibility we need to cope if things go wrong. And now that they have gone wrong, because of SoCalGas’ mismanagement of the Aliso Canyon storage facility, a group of state agencies says the region could be facing power shortages this summer as a result.
A new report released today by the California Energy Commission (CEC), California Public Utilities Commission (CPUC), California Independent System Operator (CAISO,) the Los Angeles Department of Water and Power (LADWP) and Southern California Gas (SoCalGas) describes the problem. While a separate report released by CEC, CPUC, CAISO and LADWP, begins to lay out the short-term response plan. (Some of the efforts already under way are documented here, here, and here). Read More
By: David Kolata, Executive Director of Citizens Utility Board, and Andrew Barbeau, President of The Accelerate Group, LLC, and senior clean energy consultant to EDF
Knowledge is power – especially when it comes to electricity. And as Illinois’ biggest electric utility installs four million new digital, advanced meters across the state, people are on the brink of obtaining the intelligence they need to maximize the benefits of this smart grid technology.
The Citizens Utility Board (CUB) and Environmental Defense Fund (EDF) have brokered an agreement with Commonwealth Edison (ComEd) that could catapult Illinois to the national forefront in providing households with real-time data on their electricity use. The deal is part of the “Open Data Access Framework” for protecting, collecting, and sharing energy-use data, which has recently gained ground but is still awaiting final approval from the Illinois Commerce Commission (ICC).
About two years after CUB and EDF asked the ICC to institute the framework, we’re pleased ComEd has embraced using the national “Green Button Connect” standard for third-party data access. We hope this watershed agreement leads to a surge in innovations that help people reap the full savings potential of the smart grid. Read More
Also posted in Data Access, Illinois Tagged Data
Ford launched the Edsel in the late 1950’s as a new, top-of-the-line luxury car. But the project was doomed from the start because the car’s design was outdated and shunned by customers. Ford closed production after only three years, losing nearly $3 billion as measured in today’s dollars. Today “Edsel” is synonymous for a project that is a total failure.
Fast forward to modern day Ohio, where utility giants FirstEnergy and AEP are trying to bail out several old, uneconomic power plants, some of which also were built in the late 1950s. They are asking the Public Utilities Commission of Ohio (PUCO) to guarantee the purchase of power from these outdated plants. The FirstEnergy and AEP bailouts are a bad idea, like the Edsel, yet if the PUCO approves the bailouts, why not subsidize and bring back the Edsel too?
The main rationale for keeping the power plants open is to have a diverse supply of energy resources in Ohio – regardless of whether they are cost-effective or profitable. The utilities’ definition of diversity seems to be having a mix of both modern and ancient generators. So why not bring back the Edsel in order to improve diversity? It would give car buyers more choices, even if it’s a slow, unattractive choice. Read More