Energy Exchange

Federal Regulators Should (Again) Block FirstEnergy’s Sneaky Attempts to Evade Oversight

By Dick Munson / Published: June 17, 2016

FirstEnergyChaseAkronOhio wikipedia cropped It’s not usually a good idea to dis federal regulators. FirstEnergy doesn’t seem to care.

Almost two months ago, the Federal Energy Regulatory Commission (FERC) ruled against the Ohio-based utility giant’s request to bail out its uneconomic power plants. FirstEnergy then tweaked its proposal to obtain the same result but, according to its CEO, “without the need for…FERC approval.”

To “FERC-proof” its bailout scheme, FirstEnergy now tries to mockingly call its subsidy a “surcharge” rather than a “power purchase agreement (PPA).” Put another way, by simply changing the wording of the original bailout, the utility’s sleight of hand aims to skirt federal oversight.

Environmental Defense Fund (EDF) is joining the Electric Power Supply Association (EPSA) and others in asking FERC to overturn this end-run attempt – something we’re calling FirstEnergy’s “Virtual PPA.” It’s virtually the same as the original rotten deal, and it’s just as bad for customers, clean air, and markets. Read More »

Also posted in FirstEnergy, Ohio / Comments are closed

Market Forces are Driving Coal’s Demise and Cleaning Up the Grid in Texas

By Jim Marston / Published: June 15, 2016

power lines unsplash cropped What do economists and environmentalists have in common? When it comes to Texas’ energy future, more than you may think.

According to a new study from the Brattle Group, a reputable, national economics consulting firm with extensive experience in Texas’ electricity sector, market forces are leading to coal’s rapid decline in the Lone Star State. Moreover, rapidly-growing cleaner electricity sources like natural gas and renewable energy will be able to entirely meet Texas’ additional power needs – without increasing electric bills. We couldn’t agree more.

That said, we’re confident the impacts are going to be even more powerful in terms of Texas’ wind, solar, and energy efficiency. And the latest report from Texas’ main grid operator, the Electric Reliability Council of Texas (ERCOT), continues to support that expectation. Read More »

Also posted in Air Quality, Natural Gas, Renewable Energy, Texas / Comments are closed

As SoCal Braces for Aliso Canyon-Related Blackouts, These Energy Programs Can Help

By EDF Blogs / Published: June 14, 2016

By Jayant Kairam and Timothy O’Connor.

Adding insult to injury, Californians learned this spring that the disastrous four-month methane leak at the sprawling Aliso Canyon natural gas storage facility could result in a new problem: outages.

The failure at Southern California Gas Company’s massive storage site exposed a critical weakness in the state’s energy system. Densely populated Southern California is over-dependent on natural gas from a single provider.

As a result, a vast area stretching from San Diego in the south to Los Angeles and San Bernardino County in the east may face power and gas shortages during the hot summer and cold winter months, a recent report by a group of state regulatory agencies warned. Read More »

Also posted in California, Demand Response, Electricity Pricing, Energy Efficiency, Gas to Clean, Grid Modernization, Methane, Natural Gas / Tagged Energy Storage | Authors: admin / Comments are closed

Texas’ Evolving Energy Reality: Clean Energy Uses Less Water

By Kate Zerrenner / Published: June 13, 2016

It’s been an interesting time for water in Texas. Beyond the incredibly wet and cool spring we’ve been having, Memorial Day saw the second year in a row of record-breaking floods.

And a few weeks ago, the Texas Water Development Board (TWDB) asked for comments on the draft 2017 State Water Plan. The TWDB is the state agency responsible for water planning, and every five years it produces a strategy that “addresses the needs of all water user groups in the state – municipal, irrigation, manufacturing, livestock, mining, and steam-electric power.”

In the five years since the last state water plan, Texas has gone from one extreme to the other in terms of water: from the throes of a devastating drought to historic flooding that resulted in some reservoirs being full for the first time in 15 years.

In this climate of feast or famine, we need to better understand our water supplies and conservation efforts, both of which have a strong tie to our energy choices. That’s why Environmental Defense Fund (EDF) weighed in on Texas’ draft water plan. Not only does the state significantly overestimate the amount of water needed to make electricity, but a more comprehensive view of energy in relation to water demand and supply would benefit the 2017 State Water Plan and future plans. Read More »

Also posted in Energy-Water Nexus, Natural Gas, Renewable Energy, Texas / Read 1 Response

New York Takes a Major Step toward Rethinking Utility Economics

By Rory Christian / Published: June 2, 2016

NY Lights Bridge Throughout the United States, utilities earn a profit through a tried and true regulatory model that has worked well for over 100 years. This model was built on the assumption that customers would use ever increasing amounts of electricity, and it worked for some time. But, as the need to save power and make electric systems more efficient becomes essential to adapt to climate change, this and other assumptions no longer hold true. Without changing how utilities are compensated, we run the risk of experiencing a true irony: utilities, the cradles from which our modern civilization rose, may become the chains preventing us from advancing toward a clean energy future.

Last week, the New York State Public Service Commission (PSC) – which regulates the state’s utilities – took action to transition to a new model aligned with Reforming the Energy Vision (REV), the state’s initiative to transform the electric grid into a cleaner, more efficient and affordable system. By issuing the “Order Adopting a Ratemaking and Utility Revenue Model Policy Framework,” the PSC is changing how New York’s utilities will be compensated, taking a major step to break the chains holding utilities back, and moving from a system where utilities get paid according to how much electricity they sell to one where utilities are compensated for producing environmental benefits aligned with the public good. Read More »

Also posted in Grid Modernization, New York, Utility Business Models / Read 9 Responses

Clean Energy Conference Roundup: June 2016

By EDF Blogs / Published: May 31, 2016

Each month, the Energy Exchange rounds up a list of top clean energy conferences around the country. Our list includes conferences at which experts from the EDF Clean Energy Program will be speaking, plus additional events that we think our readers may benefit from marking on their calendars.

Top clean energy conferences featuring EDF experts in June:

June 19-21: Citizens’ Climate Conference & Lobby Day (Washington, D.C.)
Speaker: Michael Panfil, Director of Federal Energy Policy and Senior Attorney

Citizens’ Climate Lobby is a non-profit, non-partisan, grassroots advocacy organization focused on national policies to address climate change. Attendees will hear speakers and receive training to speak on this issue on behalf of future generations. The conference’s keynote speaker is Dr. Michael Mann, Distinguished Professor of Atmospheric Science at Penn State University and director of the Penn State Earth System Science Center. In 1998, it was his research – conducted with Raymond Bradley and Malcolm Hughes – that led to the famous “hockey stick” graph that shows the alarming rise in average global temperatures during the 20th Century.

Also posted in California, Conference Roundup, Illinois, New York / Comments are closed