Energy Exchange

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

By Jamie Fine / Published: April 30, 2015

Last 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.

Also posted in California, Electricity Pricing, Time of Use / Read 1 Response

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

By Marita Mirzatuny / Published: April 29, 2015

The 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 »

Also posted in Texas / Tagged Texas Legislature, Wind | Comments are closed

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

By Michael Panfil / Published: April 28, 2015

If 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 »

Also posted in Clean Power Plan, Energy Efficiency, Natural Gas, Renewable Energy / Tagged EPA | Comments are closed

Renewable Electricity is in Bloom in California

By Lauren Navarro / Published: April 27, 2015

While California never quite got a winter, we can still acknowledge that spring – with the sun shining and flowers blooming – is here. From where I sit in Sacramento, spring means allergy season, getting out and enjoying the blue skies, a last bit of cool air before a brutal summer, and oh yes, the legislature heating up on important questions of California’s energy future.

This year, all eyes are on the question of how to meet the bold challenges laid out by Governor Brown in his January inauguration speech, which set goals for: 50 percent of electricity to come from renewable energy, a 50 percent improvement in the energy efficiency of existing buildings, and a 50 percent reduction in petroleum use, all by the year 2030.

To answer that challenge, the Senate has introduced Senate Bill 350 (De Leon) and the Assembly has introduced Assembly Bill 645 (Williams, Rendon), both aimed at increasing the existing Renewable Portfolio Standard (RPS) from 33 percent to 50 percent by 2030. And, both bills are feeling the love from a diverse array of supporters. The April 7^th Senate committee hearing on SB 350 enjoyed a line of supporters (including Environmental Defense Fund) which spilled into the halls! AB 645 saw a comparable showing when it was in committee on April 20^th. Both bills will be discussed for the second time in committees this week.

This strong support for clean energy should come as no surprise – robust renewable energy policies can support job growth, reduce pollution, and attract clean energy businesses to the state, which is why groups representing working people, the environment, and the transition to a clean energy economy showed up “en masse” to demonstrate support. At the same time, these groups are having conversations amongst each other and with the legislature about exactly what the transition to an electricity grid that runs on 50 percent clean resources will look like. Why? Because the details matter. Read More »

Also posted in California, Renewable Energy / Read 1 Response

The New Plan: How OneNYC builds on PlaNYC

By Abbey Brown / Published: April 27, 2015

Every year on Earth Day, people around the world show their appreciation of our planet and pledge their commitment to protecting it. Here in NYC, there are events at every scale – from composting demonstrations to announcements of citywide sustainability plans. Mayor Bill de Blasio took the opportunity to announce his plan for ‘A Strong and Just City’, called OneNYC. Mayor de Blasio was elected on a platform of equality across the city – uniting what he called the ‘two New Yorks’ – and this plan shows his commitment to that vision.

OneNYC builds on the success of former Mayor Bloomberg’s sustainability plan, PlaNYC, but expands the focus to citywide equality. By including issues like education and affordable housing, Mayor de Blasio has reaffirmed his commitment to equity in New York City, while also setting ambitious goals to meet climate change challenges.

Some of the major goals outlined in OneNYC consist of:

Helping 800,000 New Yorkers move above the poverty line by 2025;
Zero waste sent to landfills by 2030; and
An 80 percent reduction in carbon emissions by 2050.

Also posted in Air Quality, New York / Comments are closed

The Story of Demand Response

By Michael Panfil / Published: April 24, 2015

Demand response. It’s a cost-effective energy resource that pays customers to use less energy. Few people even know exists, but it invisibly impacts the life of so many Americans. It’s a clean energy resource that embodies precisely what electricity can and should be: cleaner, cheaper, and more efficient than traditional fuel sources.

We’ve written about demand response at length, discussing a potential case before the U.S. Supreme Court involving the resource and what the road ahead could look like. Today, however, we’re telling the story of how the resource got here. Read More »

Also posted in Demand Response, Grid Modernization, Utility Business Models / Comments are closed