Energy Exchange

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

By Dick Munson / Published: May 4, 2016

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 EDF Blogs / Published: May 4, 2016

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

Benefits of Clean, Distributed Energy: Why Time, Location, and Compensation Matter

By Kristina Mohlin / Published: May 3, 2016

solar-panels-new-yorkNew York is preparing for a future in which clean, distributed energy resources – such as energy efficiency, electric vehicles, rooftop solar panels, and other types of local, on-site power generation – form an integral part of a more decentralized electric grid. This is the future the New York Public Service Commission (PSC) wants to see realized through its signature initiative, Reforming the Energy Vision (REV).

This vision means the role of the customer is changing: from recipient to both user and provider of electricity and other grid services. By investing in clean, distributed energy resources, customers can make the electric system more efficient and contribute to a cleaner environment, while gaining greater control over their energy bills. Read More »

Also posted in New York, Solar Energy, Utility Business Models / Read 1 Response

Texas Cities Lead on Solar, But Tapping The State’s Potential Has Just Begun

By Sarah Ryan / Published: May 2, 2016

Mueller_austin_solar_array1Last year solar power saw unprecedented growth and it doesn’t seem to be slowing down. So where is much of this growth happening? In one word: cities.

In a new report from Environment America Research & Policy Center and Frontier Group, Shining Cities 2016 identifies the urban centers fostering growth in solar energy, and the policies and programs that can maximize solar potential. The cities that topped the list were, not surprisingly, primarily from the sunshine-abundant Pacific region, followed by an equal amount of cities from the Mountain, South Central and South Atlantic regions. These centers of connectivity and growth are major electricity consumers, and therefore important movers in the transition to a clean energy economy.

But there are still vast amounts of untapped solar potential in the U.S. – specifically 1,118 GW, which equates to 39 percent of total national electricity sales (enough to power over 782 million homes a year) – according to a study on “rooftop solar power generating capacity potential” by National Renewable Energy Laboratory (NREL). The same study stated that Los Angeles, the city currently with the most solar capacity, could host up to 42 times its current solar capacity, providing up to 60 percent of the city’s electricity. This staggering amount of renewable energy is possible in other cities across the U.S. as well – even in unlikely states, such as Texas. Read More »

Also posted in California, Electricity Pricing, Solar Energy, Texas, Utility Business Models / Read 6 Responses

Ohio Failed to Protect Customers and Markets – So Federal Regulators Came to the Rescue

By John Finnigan / Published: May 2, 2016

columbus-898928_1280The Federal Energy Regulatory Commission (FERC) recently rejected Ohio-based utilities FirstEnergy and AEP’s bailout deals, which the Public Utilities Commission of Ohio (PUCO) recently approved. FERC, which is responsible for ensuring fair wholesale electricity prices, recognized that these backroom bailouts were “abusive,” taking advantage of “captive” customers and harming the competitive market. Fortunately, FERC’s rulings protect customers and markets – which the PUCO utterly failed to do in approving these deals.

FirstEnergy and AEP wanted these bailouts to protect their old coal and nuclear plants, which are losing money because they cost more to operate than the money received from power sales. The companies considered shutting down the plants, but they concocted the backroom bailout deals in a last-ditch attempt to keep them open and money rolling in. Read More »

Also posted in FirstEnergy, Ohio, Utility Business Models / Read 6 Responses

Filling the Gap: How Efficiency Standards could Save Billions in Commercial Real Estate

By Ellen Bell / Published: April 25, 2016

office building unsplashNo one ignores an opportunity to save billions of dollars. Numbers of that size are enough to make an audience take notice, even in a business like commercial real estate, where deals in the hundreds of millions and billions are commonplace.

Each year the U.S. spends over $400 billion on energy for our buildings, many of which were constructed before modern energy codes existed and, as a result, use more energy than they should. This efficiency gap has led to the creation of a $20 billion retrofit industry, designed to help building owners and managers overcome barriers that deter them from tackling energy costs, like lack of information, misaligned financial incentives, or insufficient capital. In my hometown of Chicago alone, buildings could save up to $184 million in energy costs if they pursued more aggressive energy management – and those are just the ones reporting data. Read More »

Also posted in Energy Financing, Illinois, Investor Confidence Project / Read 2 Responses