Energy Exchange

U.S. Supreme Court Breathes New Life into FERC Order 745, Demand Response

scotusYou’ve probably heard the saying “life is a journey,” but this could not be more true for EPSA v. FERC, the landmark demand response case clean energy experts have been eyeing for more than a year as it’s made its way through the U.S. legal system.

Starting in the D.C. Circuit Court of Appeals back in May 2014, EPSA v. FERC (also known as the “FERC Order 745 case”) now rests with the U.S. Supreme Court where, today, it was given new life when the Justices accepted the U.S. Solicitor General’s request for review submitted on behalf of the Federal Energy Regulatory Commission (“FERC”). Review was granted on both petitions, which have been consolidated, by FERC and Enernoc, et. al, case numbers 14-840 and 14-841. The Supreme Court granted review to both central questions, one about FERC’s authority and a second about challenges to central provisions to the order providing for fair valuation of demand response. Environmental Defense Fund (EDF), along with a broad coalition of consumer advocates and environmental groups, supported FERC’s petition before the Supreme Court earlier this year and will continue to do so as the matter is reviewed by the high Court.

The decision to review the case is great news for demand response, a voluntary energy conservation tool that relies on people and technology, not power plants, to affordably meet our country’s rising electricity needs. It’s also a welcome sign for the Federal Energy Regulatory Commission (FERC) – the government entity tasked with ensuring our electric rates are ‘just and reasonable’ – and anyone in favor of cleaner, more reliable, lower-cost energy. Read More »

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Fossil fuels haven’t lost the race, yet. Here’s the full story.

By: Jeremy Proville, Senior GIS Specialist & Economic Analyst

Source: Flickr/Nick HumphriesA recent Bloomberg New Energy Finance article made a splash saying that fossil fuels “just lost the race against renewables.” It included a striking chart, depicting changes in power capacity additions with very clear diverging trends.

Although this would be a delightful turn of events, we should be wary of putting the cart before the horse.

What may be lost on many readers is the fact that Bloomberg bases its story on power capacity, rather than actual power generation. Read More »

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Clean Energy Conferences Roundup: May 2015

rp_Source-National-Retail-Federation-Flickr-300x2001.jpgEach month, the Energy Exchange rounds up a list of top clean energy conferences around the country. Our list includes conferences at which experts from the EDF Clean Energy Program will be speaking, plus additional events that we think our readers may benefit from marking on their calendars.

Top clean energy conferences featuring EDF experts in May:

May 5: Smart Money For Sustainable Cities (New York City, NY)
Speaker: Mary Barber, New Jersey Director, Clean Energy

  • Learn from experts on today’s leading edges of green financing, including topics such as greening municipal and corporate bonds, greening utilities, and building investor confidence. Get a jump start on the latest developments in renewable energy and efficiency projects at several scales. This event is free and open to the public.

Read More »

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Electricity Pricing: The Times, they Might be A-Changing

Electricity pylonsLast week, the California Public Utilities Commission (CPUC) issued a proposed decision on residential rate reform. Residential rate reform – how and what Californians pay for electricity – is a thorny subject, and the Commission’s proposed decision is being met with a range of reactions.

We at Environmental Defense Fund (EDF) want to highlight a bright spot in the 300-page document that we’re thrilled about: the attention paid to time-of-use electricity pricing (a type of time-variant pricing). Buried in this long legal document, we see EDF’s fingerprints in the Commission’s call for California investor-owned utilities to ramp up their use of this innovative yet well-proven pricing tool starting with pilots in 2016 and going to scale in 2019.

How TOU Works

If you’ve been following EDF’s work in this area, then you know we’ve been involved in this process for many years and have probably gathered that we’re big fans of time-of-use pricing (TOU) because it better reflects the true cost of electricity, which fluctuates throughout the day. This type of pricing also empowers customers to better control their own energy bills and reduce our reliance on fossil fuels.

TOU pricing works by breaking up the day into two or three large intervals and charges a different price for each. Rates can be divided into off-peak prices (generally during the middle of the night to early morning), semi-peak prices (daytime and evening), and peak prices (occurring during periods of highest demand, usually afternoon to early evening). These rates remain fixed day-to-day over the season.

Read More »

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Wind Energy: It’s What Texas does Best, if State Leaders Will Let Us

flickr-katsrcoolThe story of Texas wind energy is a success, but it’s an odd history.

In 1999, when Texas deregulated the energy market, a deal was struck to include a Renewable Portfolio Standard (RPS), a requirement that power companies source a certain amount of their electricity from renewable energy by certain dates. Texas surpassed the original targets, as well as subsequently increased targets, eventually making Texas the U.S. wind leader. In fact, the wind industry’s success has been an integral part of the “Texas Miracle” of job creation, especially in West Texas, which hasn’t seen an economic boom like this since before the Great Depression.

However, state Senator Troy Fraser (R-Horseshoe Bay) and other legislators think that, because Texas blew past its wind goals, we can call it a “mission accomplished” and repeal the RPS. Repealing Texas’ wind goals at this time, though, could undermine Texas’ wind industry, potentially eliminating thousands of jobs and halting millions of investment dollars Texas receives every year.

The American Wind Energy Association (AWEA) recently released its annual U.S. Wind Industry Market Report for 2014. The report puts Texas on a pedestal, highlighting how the Lone Star State is home to 37 percent of newly installed wind capacity in 2014. Of the 12,700 megawatts (MW) under construction across the country, approximately 7,000 MW are in Texas. Unsurprisingly, Texas leads the country with over 17,000 wind industry jobs. In the list of the Top 10 Public Utilities and Public Utility Districts with Wind Capacity on System across the U.S., Texas’ own CPS Energy in San Antonio and Austin Energy rank first and third, respectively.   Read More »

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NERC’s Report is Flawed: We Can Reduce Climate Pollution and Ensure Electric Reliability

rp_power-poles-503935_1280-300x199.jpgIf reducing climate pollution from power plants were a football game, the U.S. team would be halfway to the goal line while fans were still singing the national anthem.

That is, we have already gotten about halfway to the expected goals of the Clean Power Plan – before the rule is even final.

The Clean Power Plan is the U.S. Environmental Protection Agency’s (EPA) historic effort to place the first-ever limits on climate pollution from our country’s existing fleet of fossil fuel-fired power plants. When it’s finalized this summer, it’s expected to call for a 30 percent reduction in carbon emissions compared to 2005 levels — but U.S. power plant emissions have already fallen 15 percent compared to 2005 levels.

That’s because renewable energy, energy efficiency resources, and natural gas generation have been steadily deployed and growing for years. Even conservative estimates forecast continued growth of these resources — which makes last week’s report from the North American Electric Reliability Corporation (NERC) seem really strange.

NERC’s report about the Clean Power Plan’s impacts on electric grid reliability makes predictions that starkly contrast from the progress we’re already seeing.

How did this departure from reality happen? Read More »

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