Energy Exchange

Recommendations for a resilient grid, no federal coal bailout required

By EDF Blogs / Published: May 9, 2018

By Michael Panfil, Rama Zakaria

In the past year, the U.S. Department of Energy (DOE) has used the issue of grid resilience as cover for an aggressive campaign to funnel a multi-billion-dollar yearly bailout to the owners of old, uneconomic coal and nuclear power plants. Although this DOE effort was rightly rejected by the Federal Energy Regulatory Commission (FERC) in January, the issue of resilience remains.

In denying DOE’s proposal, FERC (the agency responsible for overseeing our nation’s electric grid) asked regional grid operators to report practices they are currently implementing to ensure a reliable, resilient electric grid. In March, grid operators filed their reports, which generally concluded that the grid is resilient and we don’t need uneconomic coal and nuclear plants to keep the lights on.

Today, Environmental Defense Fund (EDF) – alongside numerous other stakeholders from business, academia, industry, and public interest organizations – submitted to FERC individual and joint comments on these grid operator reports and the topic of grid resilience. Read More »

Also posted in Electricity Pricing, Market resilience / Read 2 Responses

Fundamentals should guide FERC on PJM’s misguided state policy proposal

By Michael Panfil / Published: May 8, 2018

Federal regulators are currently considering a proposal that could fundamentally alter how our nation’s power markets work in tandem with state-crafted public policies.

The change being considered, submitted by the nation’s largest grid operator, PJM, would increase electricity prices and undermine state policies in the 13 states and D.C. where PJM operates. Today, Environmental Defense Fund (EDF), alongside other clean energy advocates, filed in opposition to this proposal.

PJM’s proposal before the Federal Energy Regulatory Commission (FERC) is dense and complex (for a great primer on the universe of issues surrounding a similar proposal, see this blog post by NRDC and this article by Vox’s David Roberts). At its core, however, PJM’s proposal centers on a subject that is elemental to the electricity sector: the interplay and interaction between states and federal regulators. PJM should not thrust itself into a public policymaking role, nor should FERC become judge and jury of state policies. Instead, PJM and FERC should facilitate state policy choices. Read More »

Also posted in Electricity Pricing, Illinois, Market resilience, New Jersey, Ohio / Tagged | Comments are closed

Energy storage, wind, and solar companies are recruiting coal miners for their work ethics and high-tech skills

By Jim Marston / Published: May 8, 2018

When a California battery company officially moved its headquarters and manufacturing to Kentucky coal country last week, generous state tax subsidies certainly played a role – but so did something often lost in the debate about coal.

Struggling coal mining towns offer an abundance of highly trained workers, many of whom are eager for new opportunities and stable jobs. Mine work today requires mechanical and technical skills that are transferable to new industries, a fact that companies inside and outside the energy sector are beginning to discover in America’s tightening labor market. Read More »

Also posted in Solar Energy, Wind Energy, Wyoming / Tagged | Read 2 Responses

Closing the information gap on Texans’ energy burdens

By Sarah Ryan / Published: May 3, 2018

As summer approaches in Texas, it may be hard to recall that just this January, temperatures hovered at or below freezing for as long as 64 straight hours. Texans used the most electricity ever over the course of one hour, setting a record in energy use as people reached for their thermostats and cranked the heat. For some in the state, however, this was simply not an option.

People in the lowest income brackets regularly have to choose between keeping their homes at a comfortable temperature and other everyday necessities, like putting food on the table – especially in a state like Texas with extreme temperatures. Low-income households that heat with electricity spend four times more on utility bills, as a percent of their income, compared to the average American. This “energy burden” (the percent of a person’s income spent on energy) highlights the devastating reality that many people face, as well as presents an opportunity for cleaner, smarter energy to help lower electricity bills.

Enter the Texas Energy Poverty Research Institute, or TEPRI, a nonprofit organization seeking to first understand the burden that energy costs place on low-income households, and then propose practical, equitable solutions. Environmental Defense Fund (EDF) is proudly partnering with TEPRI to advance this mission, starting with conducting a sociodemographic study to provide a detailed understanding of Texans with low incomes and their relationship to energy. Read More »

Also posted in Energy Equity, Texas / Comments are closed

New York breathes easier as plans emerge for electrification, starting with new city buses

By Rory Christian / Published: May 3, 2018

The Metropolitan Transportation Authority (MTA) in New York City, operator of the largest bus fleet in the United States, recently announced a plan to adopt a zero-emissions electric vehicle (EV) fleet by 2040. This news is a welcome breath of fresh air. Transitioning away from diesel-fueled buses will improve the quality of life for all New Yorkers in numerous ways. But the question remains: Why will it take more than 20 years?

The deadline is likely a result of the MTA’s need to determine how best to integrate EVs into their current operations while maintaining, and improving, quality of service. There are a myriad of logistical and operational aspects to consider before making a full transition. These considerations will be identified during the agency’s bus pilot, scheduled to start with 10 EV buses this year and planning to expand to 60 buses within the next three years.   Read More »

Also posted in Air Quality, Electric Vehicles, New York / Read 2 Responses

New study answers the question, ‘What is grid resilience?’

By EDF Blogs / Published: May 2, 2018

By Rama Zakaria, Michael Panfil

Whether or not our electric grid is “resilient,” and what if anything should be done to make the grid more resilient, has been a topic of intense scrutiny in the past year.

The stakes in this debate reached new dimensions last fall with a highly controversial proposal by Sec. Rick Perry and the U.S. Department of Energy (DOE), which claimed that the resilience of the electric grid is threatened by the premature retirement of uneconomic coal and nuclear plants. DOE’s flawed proposal – to bail out these plants through a profit-guarantee mechanism – was considered and unanimously rejected in January by the Federal Energy Regulatory Commission (FERC), the agency charged with overseeing our nation’s electric grid. DOE’s proposal, in short, was an incredibly bad idea.

When FERC dismissed DOE’s proposal it opened a new proceeding, asking a series of questions around the topic of grid resilience.

A Customer-focused Framework for Electric System Resilience, a new report authored by Alison Silverstein and Grid Strategies, aims to answer these questions. The report, commissioned by Environmental Defense Fund and Natural Resources Defense Council, recommends a customer-centric framework for evaluating electric system resilience and concludes that the most effective resilience solutions center upon the wires connecting the grid: distribution, and to a lesser extent transmission. By contrast, generation-related solutions – like keeping dirty coal and uneconomic nuclear plants online past their retirement dates – are the least effective for improving resilience. Read More »

Also posted in Electricity Pricing, FirstEnergy, Grid Modernization, Market resilience, Utility Business Models / Comments are closed