Energy Exchange

The True Cost of Electricity: What We’re Not Paying for Through Our Utility Bills

image oneThe price we all pay for electricity generally does not reflect the “true costs” of producing it. As described in a recent blog post, generating electricity creates harmful pollution, damaging the environment and public health. This comes with a cost, but it is not necessarily paid for by those generating the pollution or purchasing the electricity. These types of costs are known as “external costs.”

For example, a coal-fired power plant releases pollution into the atmosphere, which adversely affects the health of residents in nearby communities. This pollution is an example of an external cost because it causes health problems that neither the plant owners nor the electric users pay for (unless they live near the plant and pay the cost through their health bills).

From coal mining and energy production, to distributing and using that energy, to disposing of waste products, electricity has many external costs. By examining them, we can better understand the true cost of electricity and how it varies depending on the technology or fuel used to generate it. Read More »

Also posted in General, Social Cost of Carbon / Read 13 Responses

A Good Grid is Like a Good Vacation: Balanced and Well-Timed

photo-1456425712190-0dd8c2b00156On vacation and awake in my too-soft bed at 5 AM while my family snored, I was regretting my misaligned sleep schedule. But then I realized time was on my side, so I tiptoed out in solitude for sunrise at the south rim of the Grand Canyon. Thanks to my very clever smart phone that is also a camera, my amateur photos (sort of) reveal the majesty of this national landmark. When we realize the schedule of Nature’s wonders is both beautiful and indefatigable, and humble ourselves with simple acts of realignment, harmony can be found amidst the springs and cliffs of our lives.

Just as timing helped me take advantage of something I would have otherwise missed and my smart phone aided in capturing the moment, similar lessons can be learned in how we use energy. My phone, when linked to a smart thermostat, can help align my electricity use with cheap, clean energy resources like solar and wind. Soon residential customers of California’s “big three” utilities, Pacific Gas & Electric (PG&E), Southern California Edison (SoCal Ed), and San Diego Gas & Electric (SDG&E), will be able to take full advantage of this option.  Read More »

Also posted in California, Time of Use / Read 3 Responses

We’re wasting solar energy because the grid can’t handle it all. Here’s a solution.

caligrid_378x235California has a nice problem: It’s producing so much clean solar energy that the state’s electric grid is at capacity, and sometimes beyond.

As Vox’s David Roberts reports in his excellent piece about California’s grid headache, it makes good sense to expand the system by interconnecting state-run energy markets.

But he also notes, at the end of his story, some other and complementary strategies California can use to increase its grid bandwidth – while accommodating rapidly growing, but variable, renewable energy sources.

Connected grids, alone, are not a long-term fix. Read More »

Also posted in California, Clean Energy, Energy Efficiency, Grid Modernization, Renewable Energy, Solar Energy, Time of Use / Tagged | Read 3 Responses

Transforming the Electric System to Reduce Costs and Pollution

electrical-power-linesBy: Beia Spiller and Kristina Mohlin

Electricity markets around the world are transforming from a model where electricity flows one way (from electricity-generating power plants to the customer) to one where customers actively participate as providers of electric services. But to speed this transformation and maximize its environmental and cost benefits, we need to understand how customer actions affect the three distinct parts of our electric system: generation, transmission, and distribution. Read More »

Also posted in California, Grid Modernization, New York, Texas, Utility Business Models / Read 7 Responses

Will AEP Subsidize Its Past or Modernize the Grid?

AEP power lines unsplashOhio has been busy. On the one hand, it has been trying to keep its outdated, uneconomic coal plants afloat at a hefty cost to Ohioans. And as of last week, the Public Utilities Commission of Ohio (PUCO) approved AEP’s requested subsidies to continue spewing pollution from dirty generators. This bailout is bad news for business, customers, and the environment – and the PUCO should have rejected it. Environmental Defense Fund (EDF) will continue to object to the income-guarantees at the state and federal level.

On the other hand, and in a separate regulatory case, AEP has been working with multiple parties – including EDF – to build a cleaner, smarter grid. Its recent grid modernization agreement is a step toward more efficient, reliable electricity that will help people reduce their energy usage, lower their electric bills, and breathe cleaner air.

These two concurrent cases show AEP needs to decide whether it will change for the future, or stay stuck in the past. And while EDF has been clear in our opposition to the subsidies, today we want to acknowledge AEP’s innovative, forward-looking grid modernization efforts. Read More »

Also posted in Grid Modernization, Ohio, Voltage Optimization / Comments are closed

An Historic Moment: Advanced Meters Make their Way to New York City

NYC at nightDo you remember where were you were and what you were doing the day the first iPhone was released? What about the moment when Senator Obama became a real contender for the White House? It is rare to experience a pivotal moment in history, and appreciate its significance in real time.

Last week, the New York Public Service Commission (PSC) approved a plan by New York’s largest utility, Consolidated Edison (ConEd), to distribute advanced meters (also known as “smart meters”) to more than 3.2 million electric and 1.2 million gas customers in New York City. Advanced meters, a key component of the smart grid, can unlock the many benefits of clean energy while empowering customers to take charge of their energy use. For me, this move by the PSC was a pivotal moment in New York City’s history. Read More »

Also posted in Clean Energy, Grid Modernization, New York, Time of Use / Read 1 Response