Energy Exchange

Ohio electricity battles abound

By Dick Munson / Published: July 25, 2017

Crain’s Cleveland Business first published this op-ed on July 16, 2017.

Ohio long has been a bellwether state. Politically, no state during the past 120 years has picked more winners of presidential elections. Ohio also reflects the nation’s diverse and evolving set of energy resources. In particular, this past year Ohio became ground zero in the electricity wars. Its utilities are seeking subsidies for uneconomic power plants, setting up a lively federalism debate about when states can encourage specific energy technologies. Meanwhile, Ohio manufacturers and customers are seeking to break up utility monopolies, provoking discussions about the role of competition in electricity markets.
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Posted in FirstEnergy, Ohio, Utility Business Models / Comments are closed

UPDATE: A tale of two utilities: One Illinois power provider looks ahead, while the other won’t budge

By Dick Munson / Published: July 25, 2017

TaleOfTwo Energy Exchange published an original version of this post in July 2016. This post updates the original to reflect recent developments in Illinois.

As a utility executive, it is the best of times, it is the worst of times. It is the age of innovation, it is the age of stagnant tradition. With a nod to Charles Dickens, it is the epoch of environmental improvement, it is the epoch of continued pollution.

Perhaps no state better represents those extremes than Illinois, where Commonwealth Edison (ComEd) in the north is considering new business models and embracing greenhouse-gas reductions, while Ameren in the south is rejecting change and virtually anything related to clean energy.

Posted in Energy Efficiency, Utility Business Models / Comments are closed

Ohio explores perspectives, opportunities for modernizing the electric grid

By Dick Munson / Published: June 20, 2017

Asim Haque, chairman of the Public Utilities Commission of Ohio.

This post was updated on June 20, 2017.

Just think about the number of interactions we have with electricity each day – from our alarm clocks to our toasters to our smart phones and the lights in our homes and offices.

Electricity is undeniably important to our lives and our economy. And unprecedented energy innovation has created the opportunity to build a smarter, cleaner, and more modern electric grid. But modernizing the grid won’t happen on its own.

That’s why The Nature Conservancy and Environmental Defense Fund (EDF) convened about a hundred participants for a grid modernization conference last week in Columbus, Ohio. People came together to discuss challenges with our aging and frayed grid as well as opportunities presented by modern sensors and smart meters. Although participants brought different perspectives, everyone agreed now is a critical, opportune time to upgrade our aging electric grid. Read More »

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The more electricity regulators delay, the more customers pay

By Dick Munson / Published: June 2, 2017

Remember the old “money booths,” in which game show participants got to grab as many dollars as they could before the timer went off? Well, FirstEnergy’s the lucky contestant; everyday Ohioans are supplying the cash, and the Public Utilities Commission of Ohio (PUCO) is refusing to call time.

The PUCO is still deciding whether to give final approval to the bailout for the Ohio-based utility giant’s old, inefficient coal plants. Refresher: In October, the PUCO gave a tentative $625-million subsidy to reduce FirstEnergy’s debt associated with its bad business decisions.

PUCO procedures require regulators to solicit responses and reconsider its initial decision. Ohio commissioners, however, have allowed FirstEnergy to start collecting without the final approval. The effective start date of the tariff was January 1, 2017 – nearly five months ago. Read More »

Posted in FirstEnergy, Ohio / Comments are closed

Don’t buy Perry’s reliability ruse. His fake study is pro-coal propaganda.

By Dick Munson / Published: June 1, 2017

Energy Secretary Rick Perry’s so-called grid reliability study will be nothing more than thinly-veiled propaganda for the coal industry and a tool to justify expensive government handouts to outdated power plants.

How do we know? The tactic is ripped straight from FirstEnergy’s well-worn subsidy playbook.

The Ohio-based utility has relentlessly sought a massive, customer-funded bailout to prop up its unprofitable power plants. It repeatedly tried using reliability as an excuse for subsidies, while the regional grid operator repeatedly declared there would be plenty of generation to keep the lights on without FirstEnergy’s old power plants.

The reliability justification hasn’t worked for FirstEnergy, and it won’t work for the pro-coal Trump administration. The reality is, a 21^st-century energy system won’t be based on old, lumbering coal plants. Instead, modern energy technology means we can build a cleaner, more flexible, and reliable electric grid. Read More »

Posted in Clean Energy, FirstEnergy, Ohio, Utility Business Models / Read 1 Response

How blockchain could upend power markets

By Dick Munson / Published: May 4, 2017

Talk about a disruptive technology. The “world’s leading software platform for digital assets,” blockchain may be little known, but it could revolutionize electricity markets.

What is blockchain?

Blockchain, in short, is a secure, decentralized, and highly efficient way to manage and keep track of infinite transactions. Rather than being stored on a central server, peer-to-peer transactions are replicated across a number of computers, creating a data store that records exchanges in almost real time. To ensure the transactions are secure, authenticity and identity are maintained through cryptography and digital signatures.

Bitcoin – perhaps the most-recognized blockchain application – already is challenging conventional money exchangers. According to Cambridge University researchers, almost 6 million people use this cryptocurrency in order to make electronic peer-to-peer transactions without an intermediary such as a bank. And because blockchain technology is decentralized and accessible from multiple locations, Bitcoin funds can’t be frozen, withheld, seized, or taken.

New electricity opportunities

When it comes to electricity, blockchain could offer a reliable, rapid, and low-cost means to record and validate financial and operational transactions. These transactions could include selling and buying electricity – again without an intermediary, in this case the incumbent utility monopoly. In light of the rapid rise of distributed (decentralized) energy resources like batteries and solar panels, some analysts even believe the market for blockchain applications is significantly larger in the energy sector than for financial services. Read More »

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