Energy Exchange

New Development in Demand Response Ruling Signals Possible Supreme Court Review

By Michael Panfil / Published: December 11, 2014

UPDATE: Yesterday, January 15^th, 2015, the Solicitor General formally asked the Supreme Court to review the demand response case, EPSA v. FERC. This action is a welcome step by the Solicitor General. Now the Supreme Court must decide whether or not to hear this important case.

Late last week, the Solicitor General signaled its intention to file cert. before the Supreme Court in the demand response Order 745 case, EPSA v. FERC. Hidden within this legalese is an important update about a significant (and already complex) case.

So what does it all mean?

First, a bit of background

Demand response pays customers to conserve energy when the electric grid is stressed. With demand response, people and technology, not power plants, help meet energy demand. This is good news for customers, who pay less for electricity, the environment, via reductions in harmful air emissions, and the electric grid, by making it more efficient.

The Federal Energy Regulatory Commission (FERC), tasked with ensuring our nation’s wholesale electricity rates are ‘just and reasonable,’ created Order 745 to ensure that those providing demand response as a service would be adequately compensated. Read More »

Also posted in Demand Response / Read 4 Responses

Illinois Legislators Pledge Support for EPA’s Proposed Carbon Regulations

By Dick Munson / Published: December 10, 2014

While the Environmental Protection Agency (EPA) sorts through the more than 1.6 million comments received on its proposed Clean Power Plan (CPP), one group is stepping out to pledge its support of the landmark proposal. 53 Illinois legislators recently signed a letter urging the EPA to finalize the plan, which will set limits on carbon pollution from existing power plants for the first time ever.

Power plants currently account for nearly 40 percent of the nation’s carbon pollution and Illinois’s proposed target would result in a 33 percent reduction in the state’s carbon output by 2030. Fortunately, due to impressive state efforts to invest in clean energy over the past few years, Illinois is well-positioned to meet the challenge.

CPP is an economic opportunity

The Illinois legislators argue the CPP will help the state “achieve even greater cuts in our emissions, health benefits for all our citizens, and will spur further growth in our state’s economy.” The CPP will further the state’s transition to a clean energy economy by attracting investment in innovation, creating more jobs, and keeping electricity prices affordable. Read More »

Also posted in Air Quality, Climate, Energy Efficiency, Illinois, Renewable Energy / Comments are closed

Bringing Storage Beyond the Closet and into the Socket

By Larissa Koehler / Published: December 9, 2014

EDF’s Innovators Series profiles companies and people across California with bold solutions to reduce carbon pollution and help the state meet the goals of AB 32. Each addition to the series will profile a different solution, focused on the development of new technologies and ideas.

When someone says the word “storage,” the first thing that usually comes to mind are boxes stuffed into the back of the closet, or that deserted facility with orange doors near the freeway off-ramp.

These days, energy innovators across California are giving storage a whole new meaning – and helping to revolutionize the system that brings electricity to homeowners and businesses alike. One of the entities leading this revolution is Pacific Gas & Electric Company (PG&E), a utility in the midst of piloting new battery energy storage technology to determine how effectively it can provide a variety of grid services, including the integration of intermittent renewable generation from solar and wind.

Increasing amounts of distributed energy generation in both urban and rural areas – coupled with increasing customer demand associated with things like population growth and consumer electronics – makes energy storage an important tool to keep generation and energy use in balance. This balancing function is an important asset for integrating renewables into the grid, as storage can soak up solar and wind energy when they are abundant and discharge that energy when it is otherwise unavailable. Through this charge / discharge cycle, energy storage could lower the need for traditional fossil fuel sources and reduce resultant air pollution. Read More »

Also posted in California, Energy Storage / Comments are closed

Utility 2.0: New York Draws Lessons on Utility Regulation from Across the Pond

By EDF Blogs / Published: December 8, 2014

By: Gavin Purchas, Acting Director, Idea Bank, and Elizabeth B. Stein, Attorney

When the New York Public Service Commission (Commission) opened its historic “Reforming the Energy Vision” (REV) proceeding earlier this year, it recognized that the way utility companies have been regulated is out of sync with innovations in technology, business realities, and evolving customer needs, including the need to reduce harmful pollution. In order for utility companies to become part of the solution, the Commission has made it clear that everything is up for grabs – even the basic regulatory paradigm governing how utility companies do business in New York.

Luckily, the Commission won’t have to completely reinvent the wheel since a new regulatory paradigm from the United Kingdom could serve as a potential model. This regulatory approach is known as RIIO and is based on the following formulation: Revenues = Incentives + Innovation + Outputs. RIIO was developed by the UK regulatory body, Office of Gas and Electricity Markets, after the country recognized that its previous framework – while extremely effective at achieving cost reductions – stymied innovation. RIIO includes several elements that may be useful in the New York setting, including: Read More »

Also posted in Demand Response, New York, Utility Business Models / Read 3 Responses

Is Water the New Bottom Line for the Private Sector?

By Kate Zerrenner / Published: December 8, 2014

Business and the energy-water nexus

On December 11^th, the U.S. Chamber of Commerce Foundation (USCCF) Corporate Citizenship Center will host The Energy-Water-Food Nexus: Risks and Opportunities for the Private Sector, the second in a series of roundtables based on a report released earlier this year. The USCCF’s report and surrounding events are highlighting success stories and, more importantly, opportunities for the business community to address the energy–water nexus: the idea that energy and water use are fundamentally intertwined. In order to accurately address water risks across operations and supply chains, businesses must take a more holistic look at their water and power usage.

The business world is quickly beginning to understand the intersection of these two sectors and the significant impact they have on business operations.

In the commercial, industrial, and institutional sectors, energy efficiency and other measures could save as much as 15-30 percent of water use without reducing operations. This is particularly important as businesses consider how they manage water risks in areas where they operate. The 2014 Carbon Disclosure Project Water Disclosure Global Report, conducted on behalf of 573 investors with assets of $60 trillion, reported that 68 percent of responding companies say water is a substantial risk to their businesses, but only 42 percent have publicly demonstrated a commitment to water efficiency. Interestingly, 43 percent of reporting businesses said that water stress and/or scarcity was a top risk driver versus 16 percent that said drought was a top risk driver. This indicates that companies are more focused on longer-term risk management, as opposed to reacting primarily to drought conditions and concerns about short-term profits. Read More »

Also posted in Energy-Water Nexus / Read 1 Response

Can Birds and Wind Energy Co-exist?

By EDF Blogs / Published: December 5, 2014

By: Stacy Small-Lorenz, Conservation Scientist, and Jim Marston, Vice President, US Climate and Energy

Climate change will have major impacts on birds and their habitats, according to a recent report from the National Audubon Society. Scientists project climate change will drastically alter and shrink habitats in the U.S. for many bird species. These findings add to mounting evidence that natural systems are at serious risk for climate change impacts, which we must act swiftly to mitigate.

One solution is to adopt more clean, renewable energy. Utilities have been investing in large-scale wind energy farms at an impressive rate, resulting in 127 million tons of avoided carbon dioxide a year in the U.S. – the equivalent of taking 20 million cars off the road.

But a tricky challenge persists in the effort to make our energy system more sustainable overall: large, utility-scale wind energy developments have been known to kill bats and birds and risk fragmenting sensitive habitats. And while wind turbines kill far fewer songbirds than building collisions or cats, raptors and bats are still at risk for turbine collisions. Read More »

Also posted in Climate, Energy Efficiency, Renewable Energy / Read 2 Responses