Energy Exchange

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

The Supreme Court Continues a Trend of Protecting Competitive Markets. Here’s Why it Matters for Ohio.

By Dick Munson / Published: April 21, 2016

supreme-court-544218_1920America got a rare unanimous decision from the Supreme Court this week in a case that has widespread implications for our electric grid, as well as the markets and regulations that govern and move it.

The case was Hughes v. Talen Energy Marketing (docket no. 14-614). The Court decided it 8-to-0, with Justice Ginsburg writing the opinion.

It centered on a Maryland decision to guarantee fixed revenues for an electric generator. Typically, generators are paid through wholesale markets, regulated by the Federal Energy Regulatory Commission (FERC). These wholesale markets keep prices down and costs competitive by only paying for the lowest-cost resources necessary to keep the system running. By guaranteeing money for a generator, no matter how competitive it was in the market, Maryland effectively muted the price signal and ensured that electricity from this particular resource would be paid – regardless of how costly it might be for consumers. Read More »

Also posted in FirstEnergy, Grid Modernization, Ohio / Read 1 Response

Why This Impending Bailout for Ohio Coal Plants is Bad News for America

By Dick Munson / Published: April 21, 2016

Wait – Ohio utility regulators did what?

The $6-billion bailout of uneconomical coal and nuclear plants is bad enough. But the decision by the Public Utilities Commission of Ohio to let two power companies saddle ratepayers with their bad debt also sets a dangerous precedent that could have ramifications for consumers in other states.

This is more than a local rate case. It’s about traditional utilities going on the offense against new and cleaner power providers that offer cheaper rates in a competitive energy market – a drama playing out nationwide.

All eyes are now on the federal agency overseeing wholesale electricity markets to see if the Ohio deal will stand or fall. Read More »

Also posted in FirstEnergy, Ohio / Read 1 Response