Energy Exchange

Rubber-Stamp Regulators: Ohio Gives FirstEnergy Another Go-Ahead

approved-pixabayAt least in theory, government officials are supposed to monitor electric utilities and ensure they do not abuse their monopoly power. For more than a century, these independent regulators have protected customers from unfair, above-market prices and provided a check on giant corporations.

That social contract is being tested in Ohio.

In an unprecedented move, the Public Utilities Commission of Ohio (PUCO) today allowed FirstEnergy to seek a new power plant bailout – a full day before opponents were to offer their objections. So, without listening to the arguments against the deal, the PUCO rubberstamped the utility’s request for a rehearing.

Unfortunately, this is not the PUCO’s first rubber-stamping. FirstEnergy’s original proposal would have forced customers to pay $4 billion to subsidize the utility’s old and dirty power plants, which could no longer compete in the market. That proposal was almost laughable since the power plants were not needed, and certainly not at such a high price – other companies proposed to offer the same amount of electricity at significantly lower prices. Read More »

Also posted in FirstEnergy, Ohio / Read 3 Responses

You can Help Shape the Clean Energy Conversation: Vote for SXSW Eco Panels

sxswecoPublic voting is open for SXSW Eco 2016 – one of the world’s most high-profile environmental conferences. Cast your vote by May 20 to help determine which panels, workshops, solo talks, and bootcamps the conference will feature Oct. 10-12 in Austin, TX.

Whether or not you plan to attend the conference, your opinion matters: SXSW Eco aims to highlight breakthrough ideas and discover new ways of addressing critical environmental challenges, locally and globally. In other words, what matters to you, matters to SXSW Eco. Read More »

Also posted in Energy-Water Nexus, Solar Energy, Texas / Read 2 Responses

Saving Energy and Money: Texas is on a Path to Greater Efficiency

By: Robert King, Southcentral Partnership for Energy Efficiency as a Resource, Peter Sopher and John Hall, Environmental Defense Fund

Texas_welcome_sign Tim Patterson flickrThree of the top five fastest growing cities in the country are here in Texas, and explosive population growth puts a lot of pressure on our electric grid to keep up with demand. Fortunately, the state’s main grid operator, Electric Reliability Council of Texas (ERCOT), has done a great job of keeping the lights on, and new building codes are ensuring less energy use in the thousands of new houses that are being constructed.

As more and more people flock to the Lone Star State, there is significant potential for energy efficiency to reduce pollution and energy bills for Texas families. But in a report released last October, ERCOT overestimated the cost of energy efficiency in Texas – by more than two times – and understated by about seven times the amount we are on track to achieve. ERCOT’s estimates do not acknowledge Texas’ reality: Energy efficiency, and other sources of clean energy, are already on the rise.  Read More »

Also posted in Clean Power Plan, Energy Efficiency, Texas / Read 2 Responses

Putting the Customer First: How California can Achieve a Distributed Energy Grid

3725860708_50e3dd08c7_zIf you have ever worked in the service industry and dealt with a difficult customer (or even seen one in action), you are likely inclined to recall the oft-used adage, “the customer is always right.” Clichéd as that phrase may be, it is not without merit. Here at Environmental Defense Fund (EDF), we believe the same truism applies to how utilities approach providing electricity.

In a recent ruling issued in the Integrated Distributed Energy Resources (IDER) proceeding, California Public Utilities Commission (CPUC) Commissioner Michel Florio found, quite properly, that utility business models need to be evaluated in order to put more customer and third party-owned distributed energy resources, like rooftop solar and energy storage onto the grid. Currently, utilities receive a rate of return if they build infrastructure necessary to support our central power grid (like pipelines for our aging natural gas system). If clean, distributed energy sources make that infrastructure less essential, it could jeopardize the utilities’ revenue stream, thereby discouraging them from including these cost-effective energy resources in our power mix. Read More »

Also posted in California, Grid Modernization, Utility Business Models / Read 6 Responses

A Bailout by Any Other Name: FirstEnergy Still Trying to Stick It to Ohio Customers

handshake_iStock_000000409076_L3You have to give some credit to FirstEnergy. It does hire creative lawyers.

After the Federal Energy Regulatory Commission (FERC) effectively killed the utility giant’s $4-billion bailout request to keep its uneconomic power plants online, those expensive attorneys figured they could redefine a few words and restore the subsidies. In an attempt to thwart FERC’s decision, the utility is asking the Public Utilities Commission of Ohio (PUCO) to consider “modifications” to its bailout plan. However, these changes will still result in increased customer bills at the rate of $4 billion.

For almost two years, FirstEnergy argued it needed to prop up its uneconomic generators with “power purchase agreements” (PPA) between the utility and its affiliate companies. After federal regulators declared such transactions were illegal because they distorted competitive markets, FirstEnergy lawyers are now saying, “Just kidding!” Instead of using the term “PPAs,” the utility now prefers “surcharges,” skirting FERC’s ruling and hoping it won’t notice there’s been no real change. Read More »

Also posted in FirstEnergy, Ohio, Utility Business Models / Comments are closed

San Antonio Leadership Puts People over Politics by Supporting Clean Power Plan

By: John Hall, Texas state director, clean energy, and Colin Leyden, senior manager, state regulatory & legislative affairs – natural gas

san antonio riverwalk pixabayWhen it comes to clean air and clean energy, Texas cities – and their encompassing counties – know what’s good for them.

San Antonio’s Bexar County Commissioners, for example, recently approved a resolution supporting the nation’s first-ever limits on carbon pollution from power plants, the Clean Power Plan.

Bexar County includes the City of San Antonio and adjoining areas. By endorsing the plan, the broader San Antonio community joins Texas’ largest cities Houston and Dallas, whose mayors are also supporting the sensible, cost-effective clean air measure. (In fact, Houston and Dallas filed an amicus brief together with a large coalition of cities to support the Clean Power Plan in court).

All of this comes in the face of staunch opposition from Texas state leaders, who have used taxpayers’ money to sue the Environmental Protection Agency (EPA) over these safeguards. Meanwhile, Bexar County Judge Nelson W. Wolff and commissioners passed the resolution unanimously, meaning members from both sides of the aisle put politics aside and voted for healthier air for our communities and families. Read More »

Also posted in Air Quality, Clean Power Plan, Texas / Read 2 Responses