Energy Exchange

DOE’s compensation scheme for coal and nuclear is dead – Now what?

By Natalie Karas / Published: January 12, 2018

In a January 8 Order, the Federal Energy Regulatory Commission (FERC or Commission) swiftly dismissed the Department of Energy’s (DOE) proposed out-of-market compensation scheme for coal and nuclear units.  DOE’s proposal would have provided guaranteed profits to coal and nuclear plants, despite the fact that these aging units are losing out to more efficient and affordable resources.  Instead, FERC took a more measured approach, asking all regional market operators to submit additional information on resiliency issues within 60 days, and providing interested parties an opportunity to respond to those submittals within 30 days.  Here’s what we can expect next. Read More »

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

FERC’s rejection of DOE’s pro-coal and nuclear proposal shows evidence can still trump politics

By Michael Panfil / Published: January 8, 2018

Last week the Midwest and northeastern United States experienced an historic cold snap that tested our nation’s electric grid. Like last year’s solar eclipse, unprecedented wildfires in California, and extreme flooding after Hurricane Harvey, this year’s “bomb cyclone” has not created a reliability crisis. In fact, it appears based on the evidence thus far that our electricity system – built upon the markets and long-standing operator practices behind our grid – passed this test with flying colors.

That’s why today’s decision by the Federal Energy Regulatory Commission (FERC) to reject the Department of Energy’s (DOE) flawed coal and nuclear proposal is such an important win for American families, competitive markets, and the environment.

In mid-October, the DOE took the unprecedented step of asking FERC to provide guaranteed revenues and profits to uneconomic coal and nuclear plants. DOE did so with thinly veiled pretext, arguing without evidence that these plants support grid resiliency. FERC was quickly inundated with a chorus of resistance and disapproval from natural gas companies, environmental groups, consumer advocates, state attorney generals, and congressional members from both parties.  Read More »

Also posted in Electricity Pricing, Grid Modernization / Read 4 Responses

This Midwestern state is the surprising standout on cutting carbon pollution.

By Dick Munson / Published: January 4, 2018

One state surprisingly stands out for reducing carbon emissions from electricity.

Ohio saw an impressive 37.7 percent drop in its power sector’s carbon emissions from 2005 to 2015. Despite not having a stellar track record on clean energy, the Buckeye State, in fact, has become the nation’s carbon-reducing powerhouse: In absolute terms, Ohio slashed its carbon pollution by 50 million metric tons (MMT) during that decade – far more than any other state.

No doubt the steep drop in natural gas prices during this time period played a starring role in this change, forcing numerous dirty Ohio coal plants to close. Yet, despite recurrent challenges from subsidy-seeking utilities, Ohio’s deregulated electricity market and clean energy standards are also to thank. Imagine the carbon reductions that could be achieved if Ohio fully embraced clean energy technologies, and stopped trying to gut the state’s clean energy standards and bail out aging coal plants. Read More »

Also posted in FirstEnergy, Ohio / Read 1 Response

New Jersey’s considering a nuclear bailout. Here’s why we don’t need it.

By Mary Barber / Published: December 12, 2017

BLOG UPDATE – DECEMBER 20, 2017

PSEG’s bill aimed at subsidizing its two aging nuclear power plants was passed out of New Jersey’s Senate Environment and Energy Committee and Assembly Telecommunications and Utilities Committee today, December 20. If enacted, this customer-funded bailout would require all New Jersey electric customers to pay $300 million for an unlimited number of years to keep the plants in operation, adding an extra $40 a year to each customer’s electric bill.

The availability of low-carbon energy and local jobs are both legitimate reasons to be concerned about the premature retirement of New Jersey’s nuclear plants, but a customer-funded bailout is not the answer. A time-bounded zero-emissions credit, tailored to worker protections, community considerations, and a commitment to accelerate the adoption of clean energy should have been considered. Though PSEG admits these plants are profitable, the utility giant still hasn’t provided any documentation or analysis to show these facilities are in need of financial assistance.

December 12, 2017 – The New Jersey State legislature is entertaining a lame duck proposal by the Public Service Enterprise Group (PSEG), the parent company of New Jersey’s largest utility, Public Service Gas & Electric (PSE&G) to subsidize two PSEG nuclear plants and to have it paid for by New Jersey electricity customers – in other words, a customer-funded bailout.

Read More »

Also posted in New Jersey, Utility Business Models / Read 2 Responses

3 things my climate-skeptic dad taught me about clean energy advocacy

By Kate Zerrenner / Published: December 12, 2017

Kate Zerrenner and her dad.

As an advocate for the air, water, and economic benefits that clean energy provides, I find some of my most challenging – and maybe most rewarding – work is trying to engage climate-skeptic lawmakers at the Texas Capitol in Austin.

To facilitate that work, I use lessons I’ve learned from my dad, who lives in San Antonio and with whom I don’t often agree when it comes to our approach on the environment. In the spirit of the holidays, I want to thank him for all those conversations in which we didn’t see eye to eye. Little did I know then, he was teaching me the tools of my trade.

Here are three lessons my dad taught me that I use daily in my work as a clean energy advocate. Read More »

Also posted in Energy Equity, Texas / Comments are closed

A roadmap for a clean, modern grid – The 6 areas that should guide our efforts

By Ronny Sandoval / Published: December 6, 2017

Everyone has a role to play in fighting climate change. Farmers can use new methods to rotate their crops that keep more carbon safely in the ground. Consumers can act with their wallets – buying goods and services that produce less carbon than competitors. Our elected officials, of course, have a lot of influence in setting the narrative and enabling support for climate progress.

But around the country, in municipal buildings, state offices, and corporate headquarters, separate groups of people are busy designing and implementing changes that could have the biggest impact of all: a better, smarter, more modern grid.

Improving our electricity system could be the single largest climate fighting opportunity we have. But it’s not as simple as just putting solar panels on rooftops. Our grid was built over a century ago by different companies, cities, and co-ops. Pieces of it are owned and run by a dizzying web of stakeholders. Even if we could snap our fingers and spur all of these pieces to action, each player would manifest different versions of a “modern grid.”

Environmental Defense Fund (EDF) thus released a guide titled, “Grid Modernization: The foundation for climate change progress” [PDF], which outlines the six key categories that make up a sustainable grid modernization strategy. All of them are connected, either physically or digitally, or by legislation, regulation, or management. Most importantly, they’re connected by efficiency: If each of them is executed well, the whole grid modernization process will yield the best, most reliable, most affordable, and cleanest electricity system. Read More »

Also posted in Climate, Data Access, Electric Vehicles, Energy Innovation, Grid Modernization, Solar Energy, Voltage Optimization, Wind Energy / Tagged | Comments are closed