Monthly Archives: July 2016

The Process Priority: Inspiring Good Rate Design for Our Modernizing Grid

Untitled design (19)New technology is evolving electricity transmission from a centralized, one-way system to a more distributed, interactive one. This system necessitates new electricity rates, and the National Association of Regulatory Utility Commissioners (NARUC) unveiled this week at its annual summer meeting a draft manual that will help states across the U.S. design them.

The Distributed Energy Management Compensation Manual is basically a compendium of rate design options that regulators can consider, and it outlines each option’s pros and cons. NARUC President Travis Kavulla charged his staff with writing the manual – a monumental undertaking – and we commend the organization for this effort.

I was pleased to speak during the Town Hall event at which NARUC rolled out the draft manual, and my remarks focused on one critical need: good rate design process. Choosing the right electricity rate for a state is important, but so too is the process by which regulators arrive at that decision. Early in the document it recognizes, “A jurisdiction will need to identify its current status regarding DER [distributed energy resources], what role it expects DER to have in the future, understand the nature of DER adoption rates, and identify necessary policy developments to accommodate that future.” Now is the time to encourage NARUC to include in the manual a dedicated section that shows states how to build a process for ratemaking that will be sustainable, benefit consumers, and advance in tandem with electricity distribution technology.  Read More »

Posted in General, Grid Modernization, Utility Business Models / Comments are closed

Why 10,000 Spills From Oil and Gas Development Can’t Be Ignored

THe "Texon Scar" A massive release of produced water from an oil well in West Texas caused a vegetative dead zone that can be seen from space

The “Texon Scar”
A massive release of produced water from an oil well in West Texas caused a vegetative dead zone that can be seen from space.

Oil and gas development produces massive amounts of air and water pollution that can have severe impacts on our communities and ecosystems.  And data in a recent investigative article could help us understand more about where and how much oil, wastewater, and other fluids are spilled across the country.

According to an EnergyWire  article by Pamela King and Mike Soraghan, in 2015 industry reported more than 10,000 cases of spills across the country.  That amounts to 42 million gallons of harmful fluids – 12 million gallons more than previously reported.
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New Report Highlights Need for BLM to Slash Methane Waste, Pollution

330MThe U.S. Bureau of Land Management should do more to protect taxpayers from unnecessary waste of their natural gas resources. That’s the main takeaway from a new report from the nonpartisan U.S. Government Accountability Office.  Its findings again underline the urgent need for BLM to finalize strong new standards to reduce methane waste.

Methane is both the primary component of natural gas and a very potent climate pollutant. In fact, pound for pound, methane is more than 80 times worse for our climate than carbon dioxide in the short term. This means that unnecessary methane waste and pollution like the GAO found in this new report is a double whammy – depriving taxpayers of revenue due to us for the development of our natural gas resources and dangerously accelerating climate change.

The GAO finds that BLM needs more consistent policies in place to better limit methane waste and pollution from the oil and gas production it oversees on hundreds of thousands of acres of federal and tribal lands. It’s a big problem. Read More »

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3 Keys for the American Petroleum Institute’s New Climate Task Force

AdobeStock_56840116The climate change discussion is percolating even in surprising places. The latest sign: the American Petroleum Institute’s recent formation of an internal task force on climate change. Reportedly the new task force’s mandate is to revisit API’s approach to this crucial issue, going into an election year and with ever greater scrutiny on fossil fuels.

It is too soon to know whether the task force will rubber stamp a business-as-usual approach defined by glossing over climate concerns and attacking policy measures, or chart a new path instead.

But if the task force is serious about a fresh look at the issue, here are three keys for the task force to consider as it ponders the future of API on climate. Read More »

Posted in Climate, Methane, Natural Gas / Comments are closed

Only the Gold Standard for the Golden State When Targeting Methane Pollution

Golden_Gate_Bridge_bei_NachtAs a major producer and consumer of oil and gas, California can set the bar for reducing methane leaks. And today, the Golden State showed it’s up to the challenge, making a critical change in proposed rules aimed at cutting methane pollution from oil and gas wells, pipelines and equipment of the like – now putting California firmly on the path to adopt the nation’s strongest methane controls anywhere.

This matters because methane, the main ingredient in natural gas and a common byproduct of oil production, is a damaging greenhouse gas, with more than 80 times the warming power of carbon dioxide over a 20-year time frame.

A big lesson-learned from the months-long, mega-gas leak at Aliso Canyon, and the similarly tragic eight month gas leak in Arvin, CA in 2014, is that oil and gas infrastructure can fail. While leaks the size of Aliso Canyon are rare, it’s an example of the risk we face daily as this infrastructure ages, and a sobering reminder of how important it is to have protections that ensure methane stays in the pipelines—and not in our air. Read More »

Posted in Aliso Canyon, California, General, Methane, Natural Gas / Comments are closed

New Tool Measures Smart Grid Benefits. A Game Changer for Our Power Industry?

SmartGridWe all know exercise is good for our hearts and bodies, and who doesn’t enjoy stepping on the scale after weeks of good workouts to confirm progress was made?

In a way, power companies are just like people.

As they begin to invest in smart meters and other grid modernization efforts, utilities want to know how well they do. Can they measure success and prove to investors and regulators they’re making smart decisions?

To that effect, Illinois’ largest electricity provider, Commonwealth Edison, is the first in the country to adopt a new tool that calculates clean air benefits from investments such as advanced meters.

Beyond bringing tangible rewards to ComEd, this little-noticed milestone can have major implications for the entire power industry.
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