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Indiana Formally Approves Duke Energy’s Grid Modernization Plan

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UPDATE: Since the March 2016 publication of this original blog post, the Indiana Utility Regulatory Commission (IURC) last week issued an order officially approving a settlement agreement Environmental Defense Fund, along with several other stakeholders, helped negotiate for Duke Energy’s grid modernization plan. The IURC’s order approved the settlement (details of which are outlined in the post below) without change. Now Duke Energy can proceed with the $1.4 billion plan, which will bring many clean energy benefits to Duke’s 800,000 customers.

Help is on the way to reduce harmful pollution in Indiana, which has the seventh highest level of greenhouse gas emissions in the country.

Environmental Defense Fund (EDF) joined a settlement filed this week for Duke Energy’s grid modernization plan. The settlement calls for Duke – the largest utility in the country, which serves over 800,000 Indiana households – to invest $1.4 billion over the next seven years to improve its electric grid. Doing so will deliver major benefits for Duke’s customers. Read More »

Also posted in Demand Response, Grid Modernization, Utility Business Models / Comments are closed

Will AEP Subsidize Its Past or Modernize the Grid?

AEP power lines unsplashOhio has been busy. On the one hand, it has been trying to keep its outdated, uneconomic coal plants afloat at a hefty cost to Ohioans. And as of last week, the Public Utilities Commission of Ohio (PUCO) approved AEP’s requested subsidies to continue spewing pollution from dirty generators. This bailout is bad news for business, customers, and the environment – and the PUCO should have rejected it. Environmental Defense Fund (EDF) will continue to object to the income-guarantees at the state and federal level.

On the other hand, and in a separate regulatory case, AEP has been working with multiple parties – including EDF – to build a cleaner, smarter grid. Its recent grid modernization agreement is a step toward more efficient, reliable electricity that will help people reduce their energy usage, lower their electric bills, and breathe cleaner air.

These two concurrent cases show AEP needs to decide whether it will change for the future, or stay stuck in the past. And while EDF has been clear in our opposition to the subsidies, today we want to acknowledge AEP’s innovative, forward-looking grid modernization efforts. Read More »

Also posted in Electricity Pricing, Grid Modernization, Ohio / Comments are closed

5 Ways Pennsylvania Can Build a Smarter, More Efficient Grid

pa electric gridAcross the country, signs of a cleaner, more efficient, and more affordable U.S. energy system are emerging. But we can’t reach the clean energy future without updating the way utilities make money. Today, utilities earn revenue based on how much electricity they deliver. Companies earn less when they sell less electricity, so they have little incentive to provide energy efficiency programs for their customers.

To address this issue, the Pennsylvania Public Utilities Commission is considering changing how utilities are paid for the electricity they sell. The goal – determining whether new rate plans could eliminate the barriers to energy efficiency programs – is an admirable step toward the clean energy future. Environmental Defense Fund (EDF) has a number of ideas on how to design a more efficient grid, which we filed in comments today:

  1. Performance-based regulation – Utilities have few incentives to help people adopt solar panels or energy efficiency, so the Commission should implement performance-based regulation plans. Rather than encouraging the sale of more electricity, a performance-based framework would reward utilities for meeting goals that benefit customers and the environment, like encouraging the use of rooftop solar or increasing the use of energy efficiency programs.

Read More »

Also posted in Clean Energy, Energy Efficiency, Pennsylvania / Read 3 Responses

How Duke Energy’s Grid Modernization Effort Will Benefit Indiana Customers

gridHelp is on the way to reduce harmful pollution in Indiana, which has the seventh highest level of greenhouse gas emissions in the country.

Environmental Defense Fund (EDF) joined a settlement filed this week for Duke Energy’s grid modernization plan. The settlement calls for Duke – the largest utility in the country, which serves over 800,000 Indiana households – to invest $1.4 billion over the next seven years to improve its electric grid. Doing so will deliver major benefits for Duke’s customers. Read More »

Also posted in Grid Modernization / Read 1 Response

FirstEnergy Comes up Short on Pennsylvania Grid Modernization Plan

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Imagine a utility receives $57 million from the Department of Energy and a matching amount from its customers, then uses that money to demonstrate how new technologies could save millions more. Sounds like a pretty sweet deal, right? Not if you’re FirstEnergy, whose business model doesn’t call for saving money.

FirstEnergy – serving several states in the Mid-Atlantic region, including Ohio where the power company is currently requesting a $4 billion bailout of its uneconomical power plants – recently filed a long-term infrastructure-improvement plan in Pennsylvania, setting out its strategy for modernizing the grid. And despite having seen the benefits firsthand, the utility didn’t include voltage optimization – or using technology to “right-size” the amount of voltage customers receive – in its plan.

Since utilities likely won’t modernize the grid on their own, Environmental Defense Fund (EDF) often intervenes before state public utility commissions. And in this case, EDF recommends the Pennsylvania Public Utilities Commission (PUC) should not approve FirstEnergy’s grid modernization plan unless it includes voltage optimization. Read More »

Also posted in FirstEnergy, Grid Modernization, Pennsylvania / Read 1 Response

Feeling Gridlocked? New Report Grades State Power Systems and Inspires Modernization

2016 grid modernization rankings by gridwise alliance and cleanedgeThe GridWise Alliance, a leading business forum for the development of a smart, clean, modern electric grid, just released its 3rd Annual Grid Modernization Index – a ranking of states’ progress towards a more sustainable energy system. The Index goes beyond tracking investments that modernize the electric system; it explores the policies these investments can support, such as increasing efficiency and reducing emissions. The report also delves into the valuable services customers can expect from smart technology investments in the grid.

Grid modernization isn’t simply about replacing aging infrastructure – it’s about managing energy in new ways, namely through sensors and digital communication. Greater visibility and control as a result of these investments can create a dynamic electric system that is more efficient, better manages costs, improves customer service, and protects our limited resources.

In addition to possibly giving your home state something to brag about, the results of this Index offer plenty of useful information on how states have modernized the grid and charted their own course toward making smarter energy choices. Read More »

Also posted in California, Demand Response, Electricity Pricing, Energy Efficiency, Grid Modernization, Illinois, Solar Energy, Texas / Comments are closed