Source: Edison International
Two seemingly unrelated announcements drew much attention in the electric utility industry recently. First, the Edison Electric Institute (EEI) (the trade group for the U.S. electric utility industry) and the Natural Resources Defense Council (NRDC) jointly recommended changing how utilities should be regulated. Second, Duke Energy announced it will sell 13 Midwest merchant power plants. These announcements are actually related because they both result from the same dramatic changes affecting the electric utility industry. As Bob Dylan aptly noted, “the times they are a-changin’.” Regulators and other stakeholders must be prepared to address these changes.
Under the traditional business model, electricity usage grew steadily. Utilities built ever-larger plants to serve this growing load. The bigger plants were more efficient than existing plants, so the unit cost for electricity steadily declined. Utilities benefited by steadily increasing their revenues. Customers benefited from declining unit costs. For utility customers, it was like paying a lower price per gallon of gasoline every time you filled your tank.
But this traditional model is crumbling, due to several factors: Read More
Duke Energy secured approval from the North Carolina Utilities Commission this week to offer more renewable energy to its most energy-intensive customers in the state, including data centers, manufacturers and college campuses.
Duke's "green source" program comes at the request of customers like Google, which opened a $600 million data center in Lenoir, NC, and asked Duke Energy to provide them with more renewable energy offerings.
This is great news for economic development, jobs and the environment in North Carolina. Duke's green source program will increase renewable energy investment beyond the goal set by North Carolina’s Renewable Energy Portfolio Standard.
Under the green source program, Duke Energy will work with eligible customers to identify the amount, type and source of renewable energy they want. Duke will then arrange long-term power purchase agreements with solar, wind or other renewable energy suppliers. Participating companies pay any additional costs of purchasing renewable energy. Read More
Duke Energy is the largest utility in the United States, so of course it gets a lot of attention in its home state of North Carolina. Yet millions of residents in rural parts of the state rely on electric cooperatives, not Duke Energy, to keep the lights on. In fact, rural cooperatives serve all or part of the customers in 93 of 100 counties in North Carolina.
This is important because rural areas have just as much, if not more, need to increase energy efficiency. Case in point: a seven-county area in eastern North Carolina served by Roanoke Electric Cooperative. The cooperative has made great strides in promoting energy efficiency, yet there are still customers with utility bills that are higher than their mortgage payments some months. Close to half of Roanoke Electric’s customers live in manufactured homes, which typically have less energy-saving insulation than standard homes. And, in an economically-distressed region, few homeowners have extra money to pay for energy efficiency improvements, like caulking around windows or adding insulation.
Now, thanks to a new program offered by Roanoke Electric Cooperative, homeowners can secure low-cost loans from a private lender to make home improvements that will reduce energy use and save money. The loan is paid back on the monthly utility bill, reducing paperwork for homeowners and making repayment easier. In this program, the energy efficiency home loan is made by Generations Community Credit Union, a lending institution focused on assisting underserved rural communities in North Carolina. Homeowners can borrow up to $4,000 for improvements, with interest rates as low as 3.5%.