Energy Exchange

To Opt-In or Opt-Out: What Works For Time-Variant Pricing

By Beia Spiller / Published: August 7, 2014
Source: Johannes Rössel, wikimedia commons

Source: Johannes Rössel, wikimedia commons

It would be logical to assume that we make decisions based on our needs, desires, and values regardless of how the choice is presented. For instance, we wouldn’t expect the choice to become an organ donor to depend on whether you must check a box to accept or decline donation. But we would be wrong: our decisions depend a great deal on how the choice is presented.

Choice architecture gets to the heart of the debate on whether it’s preferable to offer people the opportunity to opt-in or to opt-out, and this question has become crucial to the discussion about time-variant electricity pricing throughout the country.

Opt-out vs opt-in time-variant pricing

Currently, most electricity customers pay for electricity at a single flat rate (i.e., one price per kWh consumed). Such pricing is simple but doesn’t reflect actual system costs, which are higher during times of the day when overall energy demand peaks. Time-variant pricing instead allows utilities to charge more for electricity during periods of peak demand, and less during periods of lower demand. Read More »

Also posted in Clean Energy, Demand Response, Energy Efficiency, Grid Modernization / Read 3 Responses

EDF Weighs In on New York’s Bold Effort to Build a New Electric Utility Business Model

By John Finnigan / Published: July 21, 2014
New York Skyline

Source: iStock

The U.S. electric grid has not been updated since World War II when telephones, dishwashers, and air conditioning were the cutting-edge technology innovations of the century. Today, this same grid is struggling to cope with the technological advances of the last decade, a reality that hit home for New Yorkers in the wake of Superstorm Sandy when millions of people lost power for days and even weeks.

But New York is taking steps to change this, first by initiating a proceeding in April to overhaul the state’s utility business model, and now by opening the proceeding to comments. EDF filed our comments (Track 1 and Track 2) in this case last Friday, July 18th, and commends the New York Public Service Commission for the opportunity to provide our input on this exceedingly important policy that will have national implications.

Humble beginnings

New York played a leading role in establishing today’s utility business model. Thomas Edison developed the first power plant on Pearl Street in Manhattan in 1882, serving 85 lighting customers. Read More »

Also posted in Clean Energy, Energy Efficiency, Grid Modernization, New York, Renewable Energy, Utility Business Models / Comments are closed

Illinois’ Largest Utilities Embrace the Smart Grid

By Guest Author / Published: June 19, 2014
Source: Daniel Schwen

Source: Daniel Schwen

By: David Kolata, executive director of the Citizens Utility Board

Over the next five to seven years, smart grid infrastructure, including advanced metering infrastructure (AMI), will be deployed for customers of the two largest utilities in Illinois: Commonwealth Edison and Ameren Illinois. Over five million new meters will be installed and over $2 billion of smart grid investments will be made. The challenge confronting consumer and environmental advocates in Illinois is how to make sure that infrastructure is rolled out in a way that maximizes other policy objectives—namely, saving customers money on their energy bills and promoting opportunities for innovative technologies like microgrids and energy storage.

Years of discussion in Illinois culminated in the Energy Infrastructure Modernization Act, a new law that supports smart grid deployment and funds programs to support electricity system innovation through: Read More »

Also posted in Clean Energy, Grid Modernization, Illinois / Read 3 Responses

Clean Energy Finance 101

By Rachel Neil / Published: June 5, 2014
Library of Congress, Prints and Photographs Collections.

Library of Congress, Prints and Photographs Collections.

As innovative energy products and services come to market, so do new mechanisms to fund them. And existing funding options become more popular. This has resulted in a boom of finance jargon, especially regarding energy efficiency and renewable generation. Though many of the finance terms used in clean energy finance are similar to those used in traditional finance, it’s easy to get lost. We hope this glossary will help those in clean energy navigate the new and growing world of clean energy finance.

Asset Class: A grouping of similar types of investments that behave similarly in the marketplace and are subject to the same laws and regulations. Broad examples of asset classes include:

  1. Equities (also known as stocks) – assets that represent ownership of part of a company.
  2. Bonds – assets that guarantee a fixed payment stream.

Bonds are often further categorized based on structure or source of the payments. Examples of these subclasses include municipal, corporate and mortgage bonds. Read More »

Also posted in Clean Energy, Energy Efficiency, Energy Financing, Grid Modernization, On-bill repayment, Renewable Energy / Read 2 Responses

‘Utilities 2.0’: The Future May Be Sooner Than We Think

By Rory Christian / Published: March 19, 2014
Source: NASA Earth Observatory

Source: NASA Earth Observatory

Last month, I had the pleasure of moderating a panel called “Utilities 2.0: The Role of Distributed Generation and Demand Response in Evolving Utility Business Models.” The topic may sound esoteric, but to the more than sixty people in attendance, and at least fifty more watching online, the event, which was sponsored by clean energy networking group Agrion, offered insight into how these options will in a not-too-distant future revolutionize the way all of us consume electricity.

The energy industry is abuzz with talk of how distributed generation, which enables consumers to draw power from on-site sources, such as rooftop solar, and demand response, which rewards customers who use less electricity during times of peak demand, are transforming the electric utility industry. A once-in-a-generation paradigm shift is already in motion, and exactly how it will play out is anyone’s guess. Read More »

Also posted in Clean Energy, Demand Response, Energy Efficiency, Grid Modernization, Renewable Energy, Utility Business Models / Read 2 Responses

CPUC Singing the Right Tune on SONGS, But Southern California Still Needs to Harmonize to Achieve a Clean Energy Future

By Lauren Navarro / Published: March 18, 2014

rp_Navarro_Lauren-228x300.jpgLast week, the California Public Utility Commission (CPUC) finalized an important decision for Southern California’s energy supply following the closure of the San Onofre Nuclear Generating Station (SONGS). The plan emphasizes increased reliance on clean energy in this part of the state – an important step towards a fully realized low-carbon future.

The decision authorized San Diego Gas and Electric and Southern California Edison to procure at least 550 megawatts (MW) of ‘preferred resources,’ which include renewable energy, demand response (a tool that’s used by utilities to reward people who use less electricity during times of “critical,” peak electricity demand), energy efficiency, at least 50 MW of energy storage, and up to 1,000 MW of these resources altogether.

That’s a major step forward, as utilities across the country traditionally rely on large fossil fuel plants to meet regional demand. Read More »

Also posted in California, Clean Energy, Demand Response, Energy Efficiency, Grid Modernization / Read 6 Responses