Energy Exchange

Compensating distributed energy resources for environmental attributes

By EDF Blogs / Published: March 6, 2018

Small distributed energy resources, cutting carbon emissions, and making sure people pay appropriately for participating in the electric system: These have been pillars of Reforming the Energy Vision (REV), New York’s comprehensive initiative to re-think utility regulation and reduce carbon in the power sector.

Cutting carbon pollution – decarbonization – will be difficult as long as a carbon price is in effect only for large generators. That approach creates a risk of shifting emissions from large generators to small ones and creates a disincentive for environmentally-beneficial electrification.

Setting a robust price on carbon and applying it to fossil fuel users of all sizes and types would avoid such results and enable the market to drive down emissions efficiently. But in a world without such a broadly-applied price, designing an appropriate compensation mechanism for small generators that produce both environmental benefits and emissions is an interesting economic policy challenge.

There’s a lot to consider. Let’s unpack the issues. Read More »

Illinois has plenty of power, says new report. So, why bail out Dynegy’s coal plants?

By Christie Hicks / Published: March 5, 2018

Since last year, Dynegy has tried to strong-arm Illinois legislators and regulators into allowing it to pollute more. To add insult to injury, the Texas-based energy giant wants to charge customers more to do so. It’s a lose-lose for Illinoisans. And here’s the kicker: A new report just revealed that Illinois has more than enough power without Dynegy’s coal plants.

Dynegy has spent the past year targeting environmental protections at the Illinois Pollution Control Board, and has re-introduced legislation in Springfield that would give its uneconomic coal plants a $400 million per-year bailout. Meanwhile, Dynegy is raking in millions in profits. Moreover, Dynegy was acquired last week by Vistra Energy in a move that will generate $4 billion in equity.

There is more than enough power in Illinois (termed “resource adequacy” in energy parlance) to keep the lights on and then some, confirms the new report from the Illinois Commerce Commission (ICC). The report is further evidence that Illinoisans should not have to bail out Dynegy’s polluting plants. Read More »

Also posted in Clean Energy, Illinois / Comments are closed

Report: LA County oil and gas sites require stronger oversight

By Irene Burga / Published: March 2, 2018

A new report from the Los Angeles County Department of Public Health (DPH) provides yet more evidence that greater oversight is needed to address health and safety concerns with the region’s oil and gas facilities.

Los Angeles sits directly on top of 68 active oil fields, meaning many of the city’s residents live in close proximity to harmful emissions associated with oil and gas development, including compounds that can cause cancer, respiratory diseases like asthma, severe headaches, neurological problems, and other health consequences.

LA DPH assessed the impact of urban drilling on communities in east and south LA and considered existing research to identify actions for regulators to reduce public health threats, including:

Also posted in Air Quality, Aliso Canyon, California, Methane, Natural Gas / Comments are closed

California’s disadvantaged communities could benefit from time-of-use electricity prices, but it won’t happen automatically.

By EDF Blogs / Published: February 26, 2018

By Lauren Navarro, senior policy manager, and Jamie Fine, senior economist

It’s no secret that California is a clean energy leader. The state is on track to meet its renewable energy goals, with many utilities hitting targets ahead of schedule. In order to transition to a system that can handle increased levels of clean energy like solar and wind, we need innovative solutions to take advantage of these resources. One low-cost solution is to change how we pay for electricity – making it cheaper when it is powered by clean resources and more expensive when powered by fossil fuels with time-of-use pricing. Utilities are on their way to bringing this to Californians, piloting the new rates in advance of a full rollout in 2019 and building on the successful rollout of these rates to commercial customers a few years ago.

For many Californians, the shift to time-of-use pricing will be new, but not impact their bills very much and could even save them money, particularly for people who live along the coast. However, for some customers – communities with lower incomes in hotter areas of the state that are more vulnerable to possible summertime bill increases – shifting when they use electricity can be harder, and without help their costs could increase. Rightly, lawmakers and regulators have pushed for extra attention for these vulnerable customers as the state moves toward time-of-use rates. While utilities acknowledge this discrepancy as an issue, none are offering sufficient, robust solutions (you can learn more about this in our recent blog).

A new bill introduced last week by California Assemblymember Joaquin Arambula would add that utilities must consider how time-of-use rates could impact low-income customers in disadvantaged communities before putting them on the new rates. It is vital to protect the most economically and environmentally vulnerable Californians from financial hardships. And the answer is not easy. All Californians stand to benefit from rates that could lower pollution and integrate more renewables – yet, we don’t want to heedlessly roll-out the rates in a way that results in higher electricity bills for customers with low incomes. Read More »

Also posted in California, Clean Energy, Demand Response, Electricity Pricing, Energy Efficiency, Energy Equity, General, Time of Use / Comments are closed

Pollution monitors should be standard in LA’s oilfields

By Tim O'Connor / Published: February 6, 2018

There are several reasons to be optimistic about environmental progress in Los Angeles. The city is making massive investments in electric vehicles, making clean energy more accessible to everyday people, and cutting pollution from the ports and freeways to name a few. But with over 60,000 Angelinos living less than 500 feet from an active oil well – LA could do more to protect our health and our environment.

Oil and gas wells emit toxic chemicals that can increase our risk of developing asthma, cancer and other health problems. Recent studies by the California Air Resources Board and South Coast Air Quality Management District have uncovered elevated levels of benzene, a cancer causing agent, and other toxic compounds coming from oil and gas equipment in Huntington Beach and Signal Hill. In Santa Fe Springs a rupture at an oil site coated numerous homes with oil and generated noxious odors. Then there are the communities in Culver City, South LA, Compton and elsewhere living mere feet from drill sites who experience odors and health ailments on a regular basis. Most notoriously, the Porter Ranch community next to the Aliso Canyon gas field still reports respiratory problems and other symptoms stemming from a major gas leak in 2015.

Also posted in Air Quality, Aliso Canyon, California, Methane, Natural Gas / Comments are closed

Utilities planning to move Californians to time-of-use pricing need solutions for low-income customers

By EDF Blogs / Published: January 30, 2018

By Andy Bilich, clean energy analyst, and Jamie Fine, senior economist

Last month, all three of California’s major investor-owned utilities submitted applications to the California Public Utilities Commission detailing their respective strategies for how to transition residential customers to time-of-use pricing. Time-of-use pricing, if done right, is a low-cost strategy to help meet California’s climate and clean energy goals. This innovative tool can help the state rely more on clean energy and less on fossil fuels, at the same time delaying the need for new infrastructure and reducing costs and harmful emissions. While a significant number of Californians will be able to adapt to this new pricing, the shift this summer and next will likely be more challenging for some ─ namely, low-income customers in hot areas of the state.

Environmental Defense Fund (EDF) supports time-of-use pricing for its benefits to the environment, the electric system, and customer’s pockets. However, the utility plans have some troubling gaps that may prevent the new system working for everyone. For California to pioneer a clean economy for all, the utilities and the commission must proactively overcome barriers facing vulnerable customers who need more help adjusting to time-of-use rates. Read More »

Also posted in California, Electricity Pricing, Time of Use / Read 2 Responses