Category Archives: Utility Business Models

EDF Weighs In on New York’s Bold Effort to Build a New Electric Utility Business Model

New York Skyline

Source: iStock

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.

Humble beginnings

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 »

Also posted in Clean Energy, Dynamic Pricing, Energy Efficiency, New York, Renewable Energy, Smart Grid | Leave a comment

Dear Utilities, Change or Get Dumped

Source: Paul Cross, https://flic.kr/p/7AU7PK

Source: Paul Cross, https://flic.kr/p/7AU7PK

Like many relationships, the one between utilities and their customers can be complicated. Sure, they’ve been together for decades, but no longer are customers satisfied with a distant, disengaged power company selling them more and more megawatts.

As the utility business model evolves into one based on diverse energy services, utilities must find ways to prioritize and improve their customer relationships if they hope to thrive in the new energy economy.

What do customers really want?

It doesn’t take years of market research to discover that utility customers enjoy saving money. But just as important as a low price for power – if not more so – is a genuine feeling of power.  Just ask Dr. Philip Lewis of global energy think-tank VassaETT, who has researched the subject for years. His findings show that customers want to be in control of their energy behavior. They want market transparency and predictable rewards for their choices. The bottom line, says Lewis, is that customers want to feel like equals with their electricity suppliers, not captives. Read More »

Also posted in Clean Energy, Demand Response, Energy Efficiency, Renewable Energy, Smart Grid | 3 Responses

New York Energy Week Gives Clear Vision of Modern, Clean Energy Future

nyew1

By: Max Wycisk, Communications Intern

The second annual New York Energy Week, held last week, brought together more than 4,000 industry leaders and innovators – double the number last year – to discuss the dynamic changes the state’s energy sector has seen in the last twelve months, including the state’s historic move to re-examine its utility business model. In a series of panel discussions held throughout New York City, state, national, and international energy leaders reviewed key topics such as energy storage, building efficiency, and the rapidly evolving utility industry itself. While the topic of discussion varied, a number of consistent themes emerged, giving attendees a clear vision of the steps industry is taking toward adopting a modern, decentralized, clean energy future.

Communication drives innovation

One of the main themes of the conference, which was organized by research firm Enerknol, was the shift in how the energy industry will interact with consumers as well as the way in which it interacts with itself. Speakers frequently described the current energy industry as ‘fragmented’ or ‘acting within silos’ and questions arose at nearly every panel about how to stimulate conversation between different energy sectors that will lead to collaboration, investment, and innovation. Read More »

Also posted in Clean Energy, Demand Response, Energy Efficiency, Energy Financing, Energy Storage, New York, Renewable Energy, Smart Grid | 2 Responses, comments now closed

Massachusetts Moves to Modernize its Electric Grid – What this Means for Customers, Utilities

massbay

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 »

Also posted in Clean Energy, Smart Grid | Tagged | Comments closed

Power Plant Rule a Tipping Point for Clean Energy Economy

powerplantruleFor those of us (and all of you) who’ve been urging the government to implement meaningful climate policy, the release yesterday of a plan to cut carbon emissions from power plants has been a long time coming. But it finally came.

The U.S. Environmental Protection Agency’s proposed carbon pollution rule for existing fossil-fueled power plants – also known as the Clean Power Plan – are a huge win for our climate.

We also think it could go down in history as the tipping point in our nation’s transition to a clean energy economy. Here’s why:

Old, dirty power plants will be retired

The nation’s fleet of coal-fired power plants is the single largest source of carbon pollution in the U.S. and one of the largest in the world. Placing carbon regulations on this source of electricity for the first time in history will transform our energy system. Read More »

Also posted in Clean Energy, Climate, Demand Response, Energy Efficiency, Renewable Energy, Smart Grid | Comments closed

Commercial Demand Response – An Untapped Resource for the Congested Grid

By: John Gruss, Vice President and General Manager of Enerliance

lobosAccording to the recently released National Climate Assessment, 2012 was the hottest year on record for the continental United States, and experts predict that temperatures are only going to rise. Couple this with an energy grid that is already under severe strain, and there can be no denying we’ve got a serious problem on our hands.

Every year an overstressed electric grid faces increasing challenges to cool and operate homes and buildings. As we approach summer, with heat waves that are growing longer in duration, this crisis could result in energy shortages and blackouts that are not merely a matter of disrupted comfort and lost productivity but are a serious threat to national security and human health. Read More »

Also posted in Clean Energy, Demand Response, Energy Efficiency, Renewable Energy, Smart Grid | Comments closed

Fact: Clean Energy is Working in Ohio

windpowerohioChris Prandoni certainly is welcome to his own opinions, but not his own facts. As the Director of Energy and Environmental Policy at Americans for Tax Reform, Prandoni may favor coal-fired power plants and dislike energy efficiency and renewables, but there’s no doubt Ohio’s clean energy standards are saving consumers money and bringing huge investments into the state.

Prandoni supports S.B. 310, which has already passed the Ohio Senate and is expected to enter the House within the next week, and promises to kill the state’s renewable portfolio standards (RPS) and energy efficiency directives. If Prandoni has his way, and as he points out in his misinformed Forbes op-ed, Ohio would be the first state in the nation to “pare back” its clean energy mandates, but this is not something Ohioans should be proud of. Read More »

Also posted in Clean Energy, Energy Efficiency, Ohio, Renewable Energy | Tagged | 1 Response, comments now closed

The Energy-Water Nexus Faces an Up-Hill Battle…But at Least it’s on ‘The Hill’

Source: Argonne National Library

Source: Argonne National Library

The energy-water nexus has been gaining traction around the globe, including serving as the theme to this year’s World Water Day, and now we are finally seeing some movement on Capitol Hill.

In January, Senators Lisa Murkowski (R-Alaska) and Ron Wyden (D-Oregon) introduced S. 1971, the Nexus of Energy and Water for Sustainability Act of 2014, or NEWS Act of 2014. Foremost, the bill would establish an interagency coordination committee focused on the nexus between energy and water production, use, and efficiency. The NEWS Act of 2014 also proposes a cross-cutting budget mechanism to allow policymakers to see where funding is needed across various energy-water initiatives.

While the bill faces a particularly steep slope to passage (7% compared to an average overall 11% passage rate, according to GovTrack, a government transparency tracker), that it has been introduced at all is the first sign of a more comprehensive approach to the energy-water nexus at the highest levels. Read More »

Also posted in Clean Energy, Climate, Energy-Water Nexus, Renewable Energy | 1 Response, comments now closed

Nest’s Promising Results for Reducing Peak Electricity Demand

Google's Nest

Back in January when Google announced it would spend $3.2 billion to purchase Nest, EDF knew this was a company to watch. The results of three new reports, released today, confirm that controllable thermostats like the Nest Learning Thermostat are both customer-friendly and useful for energy system planners. Moreover, the reports signal that smart devices, such as those Nest manufactures, have potential for generating marked savings for utility customers.

The reports analyze 2012-2013 energy use data gathered from four major utilities across the U.S. that offer Nest energy services programs: Austin Energy, Reliant Energy, Green Mountain Energy, and Southern California Edison.

The first report evaluates the results of Rush Hour Rewards, a demand response service that changes the temperature of the homes of Nest users during energy “rush hours”, or times when demand on the grid is highest. The second examines Seasonal Savings, a program that runs for three weeks and slowly modifies the temperature according to the customer’s behavior (which this smart thermostat is able to ‘learn’ via its built-in motion sensor and understanding of its owner’s temperature preferences). Both operate during times of heavy usage, namely winter and summer. The third report analyzes home energy data of Nest customers more broadly, comparing energy use before and after the installation of a Nest Thermostat. Read More »

Also posted in Clean Energy, Demand Response, Energy Efficiency, Smart Grid | Tagged | 1 Response, comments now closed

Germany is Revolutionizing how we Use Energy…and the U.S. could Learn a Thing or Two

"Green Power, not nuclear energy." Germany will fully transition off nuclear by 2022.

"Green Power, not nuclear energy." Germany will fully transition off nuclear by 2022.

As the academic breeding ground of Einstein, Freud, and many other internationally-known scholars, it should come as no surprise that Germany is at the forefront of modernizing an industry as complex as energy. Over the last two decades, Germany has been revamping its electricity sector with the ambitious goal of powering its economy almost entirely on renewable energy by 2050. And last Sunday, the country broke a new record by acquiring nearly 75 percent of its total energy demand from renewable sources (mostly wind and solar). Even the European Union’s recent announcement that it will begin divesting in renewable energy by 2017 hasn’t shaken Germany’s ambition to forge ahead  in its quest to phase out fossil fuels.

Energiewende (the German term for ‘energy transition’) is by far the most aggressive clean energy effort among the G20 and could be as beneficial for other countries as it is for Germany. The German Institute for International and Security Affairs argues, “If the [German] energy transition succeeds, it will serve as an international model… The allure of the German energy transition represents an important foreign policy resource, of which full use should be made.”

At the moment, Energiewende is the closest thing the world has to a renewables-integration pilot on a national scale. If successful, this blueprint will expedite the broad scale integration of technologies that will be necessary to wean the world off fossil fuels and combat climate change. Read More »

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