Energy Exchange

Who Pays for the Hidden Costs of Coal?

The Public Utilities Commission of Ohio is still deciding whether to approve bailouts for FirstEnergy’s and Dayton Power & Light’s (DP&L) old, inefficient coal plants. The Ohio-based utilities want their customers to shoulder the costs of keeping these unprofitable coal plants running.

Coal plants aren’t cheap to operate. And as natural gas, wind energy, and solar energy have become increasingly affordable in recent years, coal can’t compete anymore. Moreover, subsidizing coal plants is not just a matter of higher electricity bills. We need to take into account the hidden costs of coal, which we all have to pay. Read More »

Also posted in FirstEnergy, Ohio / Read 1 Response

More Subsidies than You Think Influence the Cost of Electricity

The Texas electricity market is evolving. Low prices have helped natural gas become the dominant electricity generation resource, surpassing coal for the first time. The state’s unique competitive wholesale market, along with recently built transmission lines, have led to exciting opportunities for the rapid development of wind and solar generation. But in looking at the cost of various fuel sources and Texas’ energy future, confusion about electricity subsidies needs to be addressed.

Yes, wind and solar power have recently benefitted from the federal Production Tax Credit and Investment Tax Credit. That said, it’s important to recognize that natural gas and coal generation have enjoyed state and federal incentives for a century, and continue to do so.

The tax benefits for wind and solar generation are not the same as those for fossil fuel generation, but each plays a similar role: Tax benefits affect the final cost of electricity. Read More »

Also posted in Natural Gas, Solar Energy, Texas, Wind Energy / Comments are closed

How One Clean Energy Solution Can Help Fix Both Price Shocks and Energy Waste

Andrew Bilich, Clean Energy Analyst, contributed to this post.

Here in California, we know a thriving economy and forward-thinking clean energy policy go hand in hand. An important way for us to do this is to keep using cost-competitive renewable sources of energy to power our economy.

Transitioning California to a clean energy economy is good for our wallets, our lungs, and our workforce. Today, electricity from renewable sources like solar and wind are far cheaper than fossil fuel-based generation, and in California we’re powering our homes with nearly 30 percent clean resources. In fact, as the sun shined brightly last week more than half of California’s electricity was powered by renewable sources.

Yet, recent spikes in natural gas bills remind us why alongside renewables, we need to thoroughly green the grid and bring down costs for everybody. One way to accomplish these dual goals is to use our clean energy optimally by deploying efficient tools like TOU, or time-of-use pricing. Read More »

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

With New Distributed Energy Rebate, Illinois Could Challenge New York in Utility Innovation

By Andrew Barbeau, senior clean energy consultant

How does the electric utility fit in to a rapidly-evolving energy system? That’s what the Illinois Commerce Commission is trying to determine with its new effort, “NextGrid.” Together, we’re rethinking the roles of the utility, the customer, and energy solution providers in a 21st-century electric grid.

In some ways, NextGrid will follow in the footsteps of New York’s innovative Reforming the Energy Vision (REV) process, a multi-year effort to re-examine how electric utilities and customers interact. A new approach is essential to accelerating the adoption of clean energy technologies and services in the state.

Like REV, NextGrid is gaining national attention for stakeholder-driven processes to reveal new ways to value distributed energy resources (DER), like rooftop solar and batteries. New York and Illinois’ efforts also seek alternatives to simply building more and more wires, poles, and power plants to meet the energy needs of tomorrow.

Yet, Illinois may go a few steps beyond New York, creating a comprehensive framework for utilities to measure how DER are making the grid smarter and more efficient. Here is what we know will happen so far.

Read More »

Also posted in Clean Energy, Grid Modernization, Illinois, Utility Business Models / Read 2 Responses

States to Trump: We’re not backing down on climate, clean air

Last week the California Air Resources Board unanimously voted to finalize new regulations to reduce oil and gas methane emissions. This is the first major environmental regulation that has been issued since the new Administration took office, and sends a clear message that states aren’t going to take the new administrations attacks on the environment lying down.

Every signal from the Trump Administration – from pledging to kill the Clean Power Plan, to the recent executive orders that order EPA to begin reversing important climate protections, to the massive proposed budget cuts to the Environmental Protection Agency– indicate that the United States government is keen to undo some of the fundamental environmental protections that are critical to our health and prosperity. And yet, through these signals, California is moving forward with sensible policies that will hold oil and gas companies accountable for their operations, and their pollution. Read More »

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

Keeping America Great: Smart Rules Can Help The Economy And Nature Prosper

Barely a month after his inauguration, President Trump is proceeding with plans to dismantle protections under the Clean Air Act and Clean Water Act.  The targets include limiting pollution into streams and wetlands that flow into drinking water for a hundred million Americans, automobile fuel economy standards that cut tailpipe pollution, and performance standards under the Clean Power Plan that would boost renewable power and fight climate change.  Trump and his EPA Administrator, Scott Pruitt, have drawn up reckless plans to slash EPA’s budget—greeted with derision even by some Republicans in Congress.  With the tragic story of Flint still fresh in people’s minds, the President is betraying the demands of his own supporters — fully 64% of Trump voters want to maintain or increase spending on environmental protection.

These actions are a tragic wrong turn for the country — and not just because they threaten to roll back decades of progress on air and water pollution, and the recent steps forward on climate change.

What I especially worry about are the lost opportunities for economic growth, new jobs, and the competitiveness of American companies — at a time when China and others are stepping up.

Read More »

Also posted in California, Clean Energy, Energy Financing, Energy Innovation, Grid Modernization, Illinois, Renewable Energy / Tagged | Comments are closed