Energy Exchange

New York Moves to Properly Value Clean, Distributed Energy

New York Lights-2New York is on the path to transforming its electric industry. Since the Reforming the Energy Vision (REV) proceedings kicked off with the goal of creating a more robust and efficient electric grid, the State is now a step closer in the quest to reduce greenhouse gas emissions by 40 percent from 1990 levels. And, thanks to the New York Public Service Commission (PSC), the road is looking a lot smoother.

Last month, the PSC rolled out the Benefit Cost Analysis Order, a methodology for how electric utilities should weigh the costs and benefits of proposed investments that affect the grid. With this new order, utilities will be required to calculate the net benefits associated with portfolios of distributed energy investments, such as rooftop solar and energy storage, and compare them with traditional utility investments, like substations, power lines, and poles.

This decision is crucial for New York’s clean energy future because utilities must now value the environmental benefits of distributed energy sources, and quantify how these different alternatives can work together to create a cost-effective, resilient grid. For example, in the face of severe congestion on the grid, utilities could expand the electric system to meet growing demand. Alternatively, they could incentivize a number of different distributed resources to help bring demand down by, for instance, encouraging customers to install solar panels, participate in demand response programs, or invest in energy efficiency to avoid a grid expansion. Read More »

Also posted in Energy Efficiency, New York / Read 8 Responses

Good Policy Gone Bad: How Nevada Killed Jobs and Clean Energy Competition

Road_Closed_sign_along_Nevada_State_Route_317_south_of_Caliente,_NevadaIf you want a good example how bad government can kill good jobs and clean energy innovation, take a look at what’s happening in Nevada, where a decision by Governor Brian Sandoval’s appointees, pushed by NV Energy Inc., essentially killed the thriving local solar energy industry.

In December 2015, Gov. Sandoval’s Public Utilities Commission (PUCN) approved a new net metering rule for people with rooftop solar systems that significantly increases monthly fees they pay their utility and significantly decreases the value of unused energy they sell back to the grid. Under the new rule, rooftop solar owners do not receive payments for the benefits they provide the electric grid and it will simply take too long to recoup a solar investment so that, for most, solar will no longer be a smart financial move. Solar companies are already running for the border.

And if killing jobs wasn’t enough, PUCN’s new rule is retroactive, essentially pulling the economic rug out from under the 17,000 Nevadans who have already invested in solar systems based on existing rules. In some cases, people who have invested tens of thousands of dollars are immediately underwater; it may take them decades to see a financial return on their investment. That is, unless Nevada decides to grandfather all existing solar customers for 20 years (a vote by the PUCN is scheduled for tomorrow). Read More »

Also posted in Jobs, Solar Energy, Utility Business Models / Read 9 Responses

Moms Know What’s Best: How Time-of-Use Electricity Pricing can Benefit California Families

mcaf listenedCalifornia’s “big three” utilities, at the behest of state regulators, are in the process of examining and improving how they price electricity, including something called time-of-use (TOU) electricity pricing. This option – which rewards people who shift some of their electricity use to times of day when clean energy is abundant and electricity is cheaper – can help California families create safer communities while saving money on their utility bills. Mom’s Clean Air Force California mom Linda Hutchins-Knowles agrees, and recently wrote this opinion piece in the San Jose Mercury News encouraging others to adopt TOU.

Linda, like many moms, wears multiple hats. As a mother, she wants to help leave her children a safer, more sustainable word. As an advocate, she supports increasing our use of clean energy over dirty fossil fuels to help clean our air and environment as a whole. Finally, as a consumer, she wants to do these things without breaking the bank. Read More »

Also posted in Clean Energy / Read 1 Response

Feeling Gridlocked? New Report Grades State Power Systems and Inspires Modernization

2016 grid modernization rankings by gridwise alliance and cleanedgeThe GridWise Alliance, a leading business forum for the development of a smart, clean, modern electric grid, just released its 3rd Annual Grid Modernization Index – a ranking of states’ progress towards a more sustainable energy system. The Index goes beyond tracking investments that modernize the electric system; it explores the policies these investments can support, such as increasing efficiency and reducing emissions. The report also delves into the valuable services customers can expect from smart technology investments in the grid.

Grid modernization isn’t simply about replacing aging infrastructure – it’s about managing energy in new ways, namely through sensors and digital communication. Greater visibility and control as a result of these investments can create a dynamic electric system that is more efficient, better manages costs, improves customer service, and protects our limited resources.

In addition to possibly giving your home state something to brag about, the results of this Index offer plenty of useful information on how states have modernized the grid and charted their own course toward making smarter energy choices. Read More »

Also posted in California, Demand Response, Energy Efficiency, Grid Modernization, Illinois, Solar Energy, Texas, Voltage Optimization / Comments are closed

3 Ways to Improve California’s Time-Of-Use Electricity Pilots

Jay Godwin photo - 07/31/2015 Location: The Mueller community in Austin, Texas. Caption: Mueller resident Dennis Nick is a Pecan Street program participant. He has solar collectors on his roof and an electric car in his garage. Information about his energy use can be accessed through mobile apps and on the web.California’s big three utilities – San Diego Gas & Electric (SDG&E), Pacific Gas & Electric (PG&E), and Southern California Edison (SCE) – serve approximately 80 percent of the state’s residential customers, which is why their recent move to update the state’s antiquated electricity pricing could be a game-changer for helping the state achieve its climate and clean energy goals.

In late December, while most people were on holiday, the utilities submitted plans to the California Public Utilities Commission (CPUC) to assess electricity prices that vary with the season and time of day. These plans detail the next two years of piloting time-of-use (TOU) pricing for most residential customers, and will help California reduce pollution and increase renewable energy production. Read More »

Also posted in California, Clean Energy, Energy Financing, Grid Modernization / Comments are closed

The Supreme Court Decides in Favor of a Critical Clean Energy Resource: Demand Response

rp_640px-Oblique_facade_2_US_Supreme_Court.jpgYesterday, the Supreme Court issued an important decision in support of a vital clean energy resource: demand response. The case, FERC v. EPSA, revolves around demand response, a resource that helps keep prices low and the lights on, all while being environmentally friendly.

It’s a significant victory for anyone in favor of a cleaner, cheaper, accessible, and more reliable grid. That describes a diverse group — consumer advocates, environmentalists, economists, states, grid operators, and leading legal scholars all filed in support of a critically important and well-designed policy creating access for demand response in wholesale energy markets. Read More »

Also posted in Clean Energy, Demand Response, Grid Modernization / Comments are closed