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Distributed Energy Resources to Dominate at Gathering of Nationwide Utility Regulators

By Diane Munns / Published: November 10, 2016

On November 13, 2016, the nation’s state and federal utility regulators – also known as the National Association of Utility Regulators Association (NARUC) – will meet for their 128^th annual meeting in La Quinta, CA and host over 1000 participants. As a former NARUC president and seasoned observer of these meetings, I study the issues that rise to the top for the limited amount of meeting time available. The topics making the cut offer a snapshot of what is trending nationally in the various regulated sectors.

Distributed resources – like residential solar, storage, and electric cars – not long ago nascent technology, are now mainstream. At this year’s NARUC meeting, issues related to the impact of distributed resources on business models and regulation dominate the electricity agenda as states strive to capture their benefits.

The conversation will tackle next-level questions of grid modernization, interconnection, valuation, business models, and rate design. Utility planners aim to correctly set conditions for continued growth in the transforming electricity sector. The meeting topics reveal changed thinking, from fixing “problems” caused by these technologies to maximizing their potential benefits. Read More »

Also posted in Clean Energy, Electricity Pricing, Grid Modernization, Solar Energy / Tagged Energy Storage | Comments are closed

Fraying Wires: How Policymakers Can Fix America’s Electricity Infrastructure

By Dick Munson / Published: November 7, 2016

electric-pylons On any given day, half a million Americans lose power for two or more hours. Those blackouts cost our economy billions of dollars. 70 percent of the U.S. grid that delivers electricity to our homes and businesses is at least 25 years old, and comparatively we endure more outages than other developed nations. We suffer some 360 minutes of outages each year, compared with just 16 minutes for Korea, 15 for Germany, and 11 for Japan.

A new book – The Grid: The Fraying Wires Between Americans and Our Energy Future – offers these and other insights about the challenges of modernizing America’s electric grid – the set of wires and transformers that transmit and deliver power. According to the author, McGill University professor and cultural anthropologist Gretchen Bakke, our current system is “worn down, it’s patched up, and every hoped-for improvement is expensive and bureaucratically bemired.”

But change could be on the horizon. With a new president and Congress taking office in January, legislation to address America’s deteriorating infrastructure, like bridges and lead-laden water pipes, will likely be debated. High on their list of priorities should be new policies encouraging private-sector investment and innovation in the electricity sector.

Here are four ideas from Bakke that the new Congress and administration should keep in mind as they consider legislation that will lay the groundwork for America’s energy future. Read More »

Also posted in Clean Energy, Data Access, Grid Modernization / Tagged Energy Storage | Read 4 Responses

Ohio Regulators Deliver “Undoubtedly Unconventional” Decision in FirstEnergy Bailout Case

By Dick Munson / Published: October 13, 2016

power-lines-unsplash2 In a long-awaited decision, the Public Utilities Commission of Ohio (PUCO) yesterday approved a $600-million electricity rate plan for FirstEnergy.

One read of the decision is, regulators killed the Ohio-based utility giant’s massive bailout and ordered the utility to modernize its grid. If accurate, this would be an incredible victory: Dirty power plants would not be subsidized, FirstEnergy would not be rewarded for its poor business decisions, and the company would invest in measures that increase efficiency and welcome clean-energy resources.

Ah, if the PUCO order were only so clear. On the one hand, it does seem the regulators are giving FirstEnergy $600 million upfront and requiring it to spend those funds on grid-modernization programs the PUCO will approve in the future. Yet, the more realistic read is, Ohio regulators are simply handing FirstEnergy $600 million in hopes the subsidy will allow the utility to improve its balance sheet. Then, FirstEnergy will (hopefully) propose grid-modernization efforts that the PUCO will consider and fund down the line. In other words, the PUCO is providing FirstEnergy a no-strings-attached subsidy.

The decision is unusual and a bit difficult to interpret – even the PUCO chairman admits the approach is “undoubtedly unconventional.” The only certainty is that this issue will not die. Environmental Defense Fund and its allies will continue to press the PUCO and the Ohio Supreme Court to ensure the $600 million goes toward building a cleaner, more modern electric grid. Read More »

Also posted in FirstEnergy / Comments are closed

New York and the Standby Tariff: A Breakthrough for Clean, Distributed Energy

By Marc Rauch / Published: October 5, 2016

ny-clean-fall For New Yorkers wanting more clean, distributed energy, the recent Con Edison rate case offers some good news.

Presented to New York’s Public Service Commission (NYPSC), which regulates utilities in the state, a rate case is a process utilities use to adjust policies and set rates charged to customers. A rate case occurs once every few years and provides an opportunity for state and local governments, along with consumer and environmental advocacy groups, to seek cleaner, cheaper, and more customer-friendly electricity.

The Con Edison rate case is considered a bellwether for similar proceedings involving electric utilities throughout New York State – which is part of why a recent filing with the NYPSC is so important. Along with more than 20 other parties (including Con Edison, the Real Estate Board of New York, the New York Energy Consumers Council, and several environmental advocacy groups), Environmental Defense Fund (EDF) on September 20th filed a joint proposal with NYPSC that (among other recommendations) calls for changes to the current standby tariff that are likely to be approved by the Commission. Read More »

Also posted in Electricity Pricing, New York, New York REV / Comments are closed

New Report: Competition Leads to Savings and Cleaner Energy

By EDF Blogs / Published: September 7, 2016

By: John Finnigan and Dick Munson

To compete, or not to compete – that is the question facing today’s electricity industry.

On one side of the debate are utilities with uneconomic power plants, which are unable to prosper in regional, competitive electricity markets. Faced with low natural gas prices and dramatically declining renewable energy costs, these utilities want bailouts for their aging coal fleets, or they want to relive their glory days as monopolies with guaranteed profits and no pesky corporate rivals. Ohio-based FirstEnergy – which has long waged war on clean energy and campaigned for a bailout – serves as the poster child of this camp.

On the other side are those that recognize the myriad benefits of competition. This includes power companies that didn’t double down on coal and do operate their plants efficiently. There are also nontraditional players – like cleantech entrepreneurs and renewable energy producers – who desire access to the market and a level playing field.

Fortunately, the pro-competition side just got a big endorsement from the nation’s largest grid operator, PJM Interconnection. PJM issued a newly-revised report that confirms bailouts and re-monopolization are not the solution, and competitive markets are the best path for lower-cost, cleaner energy. Read More »

Posted in Utility Business Models / Read 1 Response

Hot Topics at the Summer’s Biggest Electricity Meeting

By Diane Munns / Published: August 4, 2016

NARUCMeeting More than 1,000 people gathered in Nashville, TN this week for the summer meeting of the National Association of Regulatory Utility Commissioners (NARUC). The meeting is one of three yearly where thought leaders gather to socialize the knottiest issues of the day in regulated utility industries, including telecommunications, electricity, natural gas, and water. Two electricity debates dominated the stage and the halls during this summer’s meeting: nuclear power and rate design.

NARUC meeting participants represent state public utility commissioners and their staffs, federal energy agencies, regulated industries, and special interest groups. The meetings are a place to define issues, float solutions, and begin to understand and narrow disagreements.

Nuclear power and rate design were hot topics at this summer’s meeting because of cracks in the present electricity system created by new technologies and environmental regulation.

Also posted in Electricity Pricing / Comments are closed