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

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, Electricity Pricing, Energy Efficiency / Read 3 Responses

The Chance for Demand Response to Thrive in California All Hinges on One Vote

By Michael Panfil / Published: August 5, 2014

By: Michael Panfil, attorney for EDF’s US Climate and Energy Program, and Jamie Fine, senior economist for EDF’s Clean Energy Program

Demand response encourages customers to shift their energy use to times of day when there is less demand on the power grid or when more renewable energy is abundant. It is an invaluable component of the smart grid that improves air quality, enhances electric grid reliability, and helps utilities, homes, and businesses financially benefit from conserving electricity.

Yesterday, a diverse group of organizations submitted an important and far-reaching settlement agreement on the future of demand response in California to the California Public Utilities Commission (Commission) for its approval. The settling parties – including EDF, California investor-owned utilities, California Independent System Operator (CAISO), consumer groups, and others – recommend, for the first time, a path to properly value, realize, and account for demand response. If approved, these changes have the potential to increase the role of demand response in meeting California’s energy demands, reducing hazardous air pollution, and more efficiently operating the state’s electrical grid. Read More »

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

What We Can Do to Ensure Solar Panels Work During the Next Sandy

By Mina Berkow / Published: August 4, 2014

Source: Lewis Clarke

New Jersey is a national leader in solar power. With close to 1,300 MW of solar energy currently installed, the state ranks third in the country in solar capacity.

A commitment to photovoltaic (PV) technology has helped New Jersey reduce carbon emissions, create jobs, and lower electricity bills. Yet despite its impressive track record in New Jersey, distributed solar PV proved vulnerable when it was most needed – during an historic electricity outage in the wake of Superstorm Sandy. With another hurricane season upon us, it’s a good time to look at ways solar can be utilized when the grid fails.

An unfortunate reality

When Superstorm Sandy hit, residential and commercial PV owners were frustrated upon realizing that their solar panels were rendered useless without a functioning central grid, even when the sun was shining brightly. Read More »

Also posted in Clean Energy, New Jersey, Renewable Energy / Comments are closed

NARUC Summer Meeting Highlights Clean Power Plan, Changing Utilities

By Diane Munns / Published: July 29, 2014

The Official CTBTO Flickr

The annual summer meeting of the National Association of Regulatory Utility Commissioners (NARUC) is a meeting of the minds like no other. Utility companies, regulators, staff, advocates, and trade press from around the country gather to discuss emerging trends and challenges, and it’s a great opportunity to understand what is on the collective mind of those empowered to oversee our country’s electricity system.

This month, over a thousand utility professionals attended the 2014 NARUC summer meeting in Dallas, which was dominated by two topics: the Environmental Protection Agency’s (EPA) proposed Clean Power Plan and the evolving utility business model.

This resulted in some very interesting conversations about changing the regulatory paradigm to incent the use of new technologies, optimize grid operations, and achieve reductions in greenhouse gas emissions. Read More »

Also posted in Clean Energy, Clean Power Plan, Climate, Demand Response, Renewable Energy, Utility Business Models / Comments are closed

After 130 Years, New York Rethinks its Electric Utility Model

By John Finnigan / Published: July 28, 2014

Source: Frank Edens Flickr

America’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. A proposal to overhaul the state’s utility business model could dramatically change how people interact with their power company.

It could bring in innovative technology to help homes and businesses better manage their own energy needs, while at the same time reduce carbon emissions – changes that would have national implications. Read More »

Also posted in Clean Energy, New York, Renewable Energy / Read 1 Response

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

By John Finnigan / Published: July 21, 2014

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 18^th, 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, Electricity Pricing, Energy Efficiency, New York, Renewable Energy, Utility Business Models / Comments are closed