Monthly Archives: April 2015

Electricity Pricing: The Times, they Might be A-Changing

By Jamie Fine / Published: April 30, 2015

Last week, the California Public Utilities Commission (CPUC) issued a proposed decision on residential rate reform. Residential rate reform – how and what Californians pay for electricity – is a thorny subject, and the Commission’s proposed decision is being met with a range of reactions.

We at Environmental Defense Fund (EDF) want to highlight a bright spot in the 300-page document that we’re thrilled about: the attention paid to time-of-use electricity pricing (a type of time-variant pricing). Buried in this long legal document, we see EDF’s fingerprints in the Commission’s call for California investor-owned utilities to ramp up their use of this innovative yet well-proven pricing tool starting with pilots in 2016 and going to scale in 2019.

How TOU Works

If you’ve been following EDF’s work in this area, then you know we’ve been involved in this process for many years and have probably gathered that we’re big fans of time-of-use pricing (TOU) because it better reflects the true cost of electricity, which fluctuates throughout the day. This type of pricing also empowers customers to better control their own energy bills and reduce our reliance on fossil fuels.

TOU pricing works by breaking up the day into two or three large intervals and charges a different price for each. Rates can be divided into off-peak prices (generally during the middle of the night to early morning), semi-peak prices (daytime and evening), and peak prices (occurring during periods of highest demand, usually afternoon to early evening). These rates remain fixed day-to-day over the season.

Posted in California, Clean Energy, Electricity Pricing, Time of Use / Read 1 Response

FirstEnergy Wages All-Out War on Clean Energy

By Dick Munson / Published: April 30, 2015

America’s electricity landscape is changing dramatically. Clean energy resources like solar and wind are becoming cost competitive with conventional coal, global corporations like Walmart, Google, and Facebook are pressuring utilities to increase their share of renewables, and the cost of investing in energy efficiency measures is now under half the cost of building dirty, coal-fired power plants.

While some in the utility industry are adapting their business models to accommodate these changes, others are fighting it. Nowhere is this more apparent than in Ohio, where Akron-based power company, FirstEnergy, recently gained regulatory approval to abandon its energy efficiency programs. While this move is expected to raise electricity rates for FirstEnergy customers and increase harmful emissions from the coal-fired power plants that will be needed to “fill the gap” of previously offset energy demand, FirstEnergy has much more in store for the Buckeye State. In fact, they are waging an all-out war on clean energy in a last-ditch effort to protect their inefficient, polluting, and unprofitable fleet of coal-fired power plants. Read More »

Posted in FirstEnergy, Ohio / Read 2 Responses

A Promise to Our Children to Save Water in Texas

By Kate Zerrenner / Published: April 29, 2015

Source: flickr/carolee

Earlier this week, I testified at a hearing of the Texas House Committee on Environmental Regulation, specifically on how Texas will respond to U.S. Environmental Protection Agency’s (EPA’s) proposed Clean Power Plan (CPP), the nation’s first-ever limit on carbon pollution from existing power plants. But before I went to the Capitol, my three-year-old daughter asked me where I was going. I told her I was going to work, and she asked me, “Mommy, what are you going to save?” I replied that I was going to save water, and she said, “Good job, Mommy.”

That’s exactly what the CPP could do for Texas: save millions of gallons of water each year by encouraging the state to switch from polluting power sources (like coal plants) to non-polluting sources (such as wind and solar farms) and increase no-water solutions like energy efficiency.

Virtuous cycle

It’s no secret that Texas is currently in the midst of a multi-year drought – yet the vast majority of our electricity comes from sources that contribute to this prolonged drought, namely coal, nuclear, and natural gas. All of these energy sources require copious amounts of water to produce electricity. Read More »

Posted in Clean Power Plan, Energy-Water Nexus, Texas / Tagged Texas Legislature | Read 2 Responses

Wind Energy: It’s What Texas does Best, if State Leaders Will Let Us

By Marita Mirzatuny / Published: April 29, 2015

The story of Texas wind energy is a success, but it’s an odd history.

In 1999, when Texas deregulated the energy market, a deal was struck to include a Renewable Portfolio Standard (RPS), a requirement that power companies source a certain amount of their electricity from renewable energy by certain dates. Texas surpassed the original targets, as well as subsequently increased targets, eventually making Texas the U.S. wind leader. In fact, the wind industry’s success has been an integral part of the “Texas Miracle” of job creation, especially in West Texas, which hasn’t seen an economic boom like this since before the Great Depression.

However, state Senator Troy Fraser (R-Horseshoe Bay) and other legislators think that, because Texas blew past its wind goals, we can call it a “mission accomplished” and repeal the RPS. Repealing Texas’ wind goals at this time, though, could undermine Texas’ wind industry, potentially eliminating thousands of jobs and halting millions of investment dollars Texas receives every year.

The American Wind Energy Association (AWEA) recently released its annual U.S. Wind Industry Market Report for 2014. The report puts Texas on a pedestal, highlighting how the Lone Star State is home to 37 percent of newly installed wind capacity in 2014. Of the 12,700 megawatts (MW) under construction across the country, approximately 7,000 MW are in Texas. Unsurprisingly, Texas leads the country with over 17,000 wind industry jobs. In the list of the Top 10 Public Utilities and Public Utility Districts with Wind Capacity on System across the U.S., Texas’ own CPS Energy in San Antonio and Austin Energy rank first and third, respectively. Read More »

Posted in Clean Energy, Texas / Tagged Texas Legislature, Wind | Comments are closed

Report Card Blues: ALA Report Shows Western Air Needs Improvement

By Jon Goldstein / Published: April 28, 2015

It’s report card time for air quality in the U.S. and, unfortunately, several western states are getting grades of “needs improvement.” That’s the take-away from the American Lung Association’s (ALA) annual “State of the Air” report released today. When it comes to unhealthy ozone pollution (commonly referred to as “smog”), several western states are simply not making the grade.

Once mainly seen in major urban areas, smog pollution is now becoming more and more of an issue in the rural mountain west. This is bad news for local residents as smog can cause serious health impacts like aggravated asthma, chronic bronchitis, and heart attacks. At times, areas like the Upper Green River Basin in Wyoming have experienced smog levels that rival Los Angeles.

One of the main culprits? Air pollution from oil and gas development. Ozone pollution is created by an interaction between two different sorts of air pollutants, oxides of nitrogen and volatile organic compounds (VOCs). Oil and gas development provides a significant source of both of these air contaminants across many parts of the West. Read More »

Posted in Air Quality, Colorado, Wyoming / Tagged air pollution, air quality, oil and gas, Ozone | Comments are closed

While Most Wait for the Federal Government, California May Have Just Broken the Methane Puzzle Wide Open

By Tim O'Connor / Published: April 28, 2015

Methane from oil and gas operations is a serious climate risk, but also a ripe opportunity to make a huge dent in overall greenhouse emissions. This past week, one state took a big, and long-awaited, step to address the challenge.

While we wait for the Environmental Protection Agency to release draft federal methane rules this summer, the California Air Resources Board has just released a draft of the most comprehensive and forward thinking regulations to cut methane pollution from oil and gas yet.

While the April 22 proposal still needs work – such as in the area of how often equipment needs to be inspected and how best to reduce venting associated with well unloading and other activities – it’s a big and fundamental step in the right direction. It has the potential to deliver what the rest of the country needs – comprehensive equipment standards on new and existing sources for both oil and gas operations, and enhanced leak detection and repair requirements across the methane value chain.

But the benefits will be felt closest to home first. Read More »

Posted in Methane, Natural Gas / Read 2 Responses