Energy Exchange

Cost Savings Aren’t the Only Benefit to Energy Efficiency

By Kate Zerrenner / Published: January 9, 2014

Kate ZerrennerThis commentary originally appeared on our Texas Clean Air Matters blog.

I often refer to energy efficiency as being cost effective, and it is. It is always cheaper not to use energy or to get the same result while using less energy. But monetary cost savings are just one of the many benefits associated with implementing energy efficiency measures. Reduced pollution, improved health and reduced strain on our water supply are other notable benefits of energy efficiency, though they are not always taken into consideration when a utility proposes a new energy efficiency project.

At the state regulatory level, Public Utility Commissions or similar entities are required to do a cost-benefit analysis for each energy efficiency project or program that a utility proposes, in order to determine how cost effective it may be. This analysis is called an ‘energy efficiency cost test,’ and although the concept may seem straight forward, its application is based on a varying set of pre-defined criteria that are not always consistent. Furthermore, the subject of cost-effectiveness tests is sensitive in the utility sector, because it’s at the core of how energy efficiency programs are valued.

There are several different types of energy efficiency cost tests that differ slightly and are often customized to reflect a state’s values. Before diving into the options, it’s important to note that a cost-effectiveness test of some sort is a necessary measure as more and more states implement ratepayer-funded energy efficiency programs. Customers need to know that the programs they’re paying for are delivering the promised benefits, and regulators need to ensure that the costs paid by the customers are justified.  Read More »

Also posted in Energy Efficiency, Texas / Tagged | Read 1 Response

California on Course to Give Power to the People

By Jamie Fine / Published: January 9, 2014

Transformer over orange skyIn a report issued by the Energy Division at the California Public Utilities Commission (CPUC), experts demonstrated their commitment to the transition toward greener electricity rates in the Golden State. This is good news for two reasons: It will give customers more control of their utility bills and it keeps the state on course to cut pollution.

Today, most Californians are frozen by energy bills that are hard to understand and even more difficult to keep under control.  Fortunately, recommendations from the CPUC released Monday will put the power in the hands of customers by transitioning to rates that vary with the time of energy use.

These “time-variant rates” (TVR) can cut pollution by giving customers tools to directly influence how much money is spent on the least-efficient, most-expensive, and most-polluting power plants.   Critically, it’s also a way to avoid ever-growing, system-wide peak demand that leads to the building of additional power plants, known as “peaker plants” as they are specifically designed to serve customers at times of peak demand. Read More »

Also posted in California, Clean Energy, Electricity Pricing / Comments are closed

Demand Response Helps Texas Avoid Rolling Blackouts in the Face of Polar Vortex

By Marita Mirzatuny / Published: January 8, 2014

MaritaHeadshot

This commentary originally appeared on our Texas Clean Air Matters blog. 

As we begin a new year, the outlook for 2014 looks bright.  But as the Polar Vortex has descended upon the U.S. over the last few days, we have been reminded of the past, specifically the winter of 2011 when Texas’ electricity grid stuttered under the extreme cold.

Monday, as a record-breaking cold snap whisked over the U.S., the Electric Reliability Council of Texas (ERCOT), the state’s grid operator, warned of possible blackouts, just as they did in 2011.  We were lucky this time, but in February of 2011 we were not, and blackouts occurred throughout the state.

ERCOT’s warning meant that the grid’s power reserves “dropped below a comfortable threshold,” and the “system was just one step away from rolling blackouts” as the need for energy outpaced supply.  As these blackout threats loomed, two power plants succumbed to the cold and went down.  The loss in capacity amounted to about 3700 megawatts (MW), with 1800 MW lost due to the cold.  According to Dan Woodfin, ERCOT’s Director of System Operations, “if we had lost another unit it would have put us into an Energy Emergency Alert Three” – the stage that prompts rolling blackouts.  This is unnecessary and unacceptable. Read More »

Also posted in Demand Response, Renewable Energy, Texas / Tagged , , , , | Read 2 Responses

EDF and Allies Defend EPA Emission Standards for Oil and Gas Pollution

By EDF Blogs / Published: January 6, 2014
Source: Angela Keck Law Offices LLC

Source: Angela Keck Law Offices LLC

By: Tomás Carbonell, EDF Attorney, and Brian Korpics, EDF Legal Fellow

A new year may be upon us, but – unfortunately – some members of the oil and gas industry would prefer we roll back the clock on common sense, long-overdue emission standards for oil and gas equipment.

Oil and natural gas production continues to expand rapidly in the United States – and with it the potential for emissions of climate-destabilizing pollutants (especially methane), smog-forming compounds and carcinogenic substances, such as benzene.  We urgently need rigorous national standards that comprehensively address the full suite of pollutants from oil and gas facilities, protect public health and the environment and conserve needless waste of our nation’s natural resources.

In August 2012, the U.S. Environmental Protection Agency (EPA) took a promising first step by issuing emission standards for new natural gas wells and other oil and gas equipment, including the thousands of large storage tanks built near gas wells, pipelines and processing facilities each and every year.  These “New Source Performance Standards” (NSPS) were based on proven and highly-effective emission control technologies that leading companies have been using for years.  Many of these control technologies also directly benefit a company’s bottom line by reducing avoidable waste of natural gas from vents and leaks – saving money while protecting our climate and air.  Read More »

Also posted in Climate, Natural Gas, Washington, DC / Read 1 Response

Renewable Energy to Thrive in 2014, Despite ALEC’s Aggressive Tactics

By Marita Mirzatuny / Published: January 3, 2014

Marita MirzatunyNow that 2013 is behind us, it’s important to reflect on the progress of renewable energy last year and identify obstacles that may arise in 2014.

Over the last year, we kept a close eye on multiple clean energy attacks around the country, specifically on the Renewable Portfolio Standards (RPS) in the various states.  As we have highlighted before, the “man behind the curtain” in these attacks is none other than the infamous American Legislative Exchange Council (ALEC), a front group and model bill factory for many corporate interests including oil, gas and coal.

The good news is that from Ohio to Kansas, EDF and other organizations have been successful in preventing ALEC’s aggressive tactics to hamper clean energy.  To date, ALEC has failed to repeal clean energy standards in any state, despite its “Electricity Freedom Act” propaganda and promise that 2013 would be “the most active year ever” for efforts to repeal renewable energy mandates.  Active?  Yes.  Effective?  No.   Read More »

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Texas is a Leader in Clean Energy Jobs. Let’s Keep It that Way.

By Kate Zerrenner / Published: December 30, 2013
Source: UCSUSA

Source: UCSUSA

This commentary originally appeared on our Texas Clean Air Matters blog.

Over the past several years, a combination of market forces and targeted policies has brought about enormous growth in clean energy technologies around the United States. A clean energy economy has developed around these new technologies, creating tens of thousands of homegrown jobs each year. Despite the industry’s initial surge, recent economic uncertainty has led to a plateau in clean energy job growth in most, but not all, regions in the U.S.

According to a report released by Environmental Entrepreneurs, the U.S. created 10,800 clean jobs in the third quarter of 2013, down from 37,000 in the previous quarter.

Notably, Texas doesn’t follow the national trend. Texas clean energy companies created over 660 jobs in the fall quarter of 2013 alone, up from less than 500 jobs in the previous quarter, cementing Texas in the list of top 10 states for clean energy jobs. Read More »

Also posted in Demand Response, Energy Efficiency, Jobs, Renewable Energy, Texas / Read 1 Response