Energy Exchange

How Did Southern California Keep the Lights on During an Historic Heatwave? We Need to Know.

CATempOn June 20 and 21, temperatures across the Southwest hit record triple digits. It was a scorching way to start the summer. For Southern Californians, early arrival of extreme heat tested the region’s already compromised electricity system: Residents braced for rolling blackouts as the Aliso Canyon natural gas storage facility (one of the primary sources of power generation in the region) was offline after a disastrous methane leak last winter. Aliso will remain offline until Southern California Gas Company can assure regulators, legislators, and the community that it can be operated safely and efficiently.

The heatwave was further complicated by devastating wildfires to the north and southwest, but the region was ultimately able to emerge from the threat relatively unscathed. Although thousands of residents dealt with short-term outages, rolling blackouts – reminders of California’s dramatic energy crisis of the early 2000s – never came and the region was able to breathe a collective sigh of relief.

During the heatwave, focus was rightly on keeping the system running. But now it’s time to look at how we were able to meet historic electricity demand without the system crashing, and how this will inform power providers in the months ahead.

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Posted in Demand Response, Energy Efficiency, Gas to Clean, Grid Modernization, Methane, Natural Gas / Read 1 Response

Ohio Regulators Attempt to Keep FirstEnergy Afloat with New Subsidy Proposal

SmokestacksMy head feels whipsawed by the wildly changing proposals to bail out FirstEnergy’s uneconomic and dirty power plants. The latest development in this ongoing saga occurred June 29, when the Public Utilities Commission of Ohio (PUCO) staff recommended a new subsidy solution for the utility behemoth: $131 million per year over three years.

While this proposal is, blessedly, 90 percent less than FirstEnergy’s original $4 billion bailout proposal, it’s still an unnecessary subsidy that Ohio taxpayers should not be forced to shoulder. Hearings on whether the PUCO commissioners should approve the deal begin today.

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Posted in FirstEnergy / Comments are closed

Indiana Formally Approves Duke Energy’s Grid Modernization Plan

grid

UPDATE: Since the March 2016 publication of this original blog post, the Indiana Utility Regulatory Commission (IURC) last week issued an order officially approving a settlement agreement Environmental Defense Fund, along with several other stakeholders, helped negotiate for Duke Energy’s grid modernization plan. The IURC’s order approved the settlement (details of which are outlined in the post below) without change. Now Duke Energy can proceed with the $1.4 billion plan, which will bring many clean energy benefits to Duke’s 800,000 customers.

Help is on the way to reduce harmful pollution in Indiana, which has the seventh highest level of greenhouse gas emissions in the country.

Environmental Defense Fund (EDF) joined a settlement filed this week for Duke Energy’s grid modernization plan. The settlement calls for Duke – the largest utility in the country, which serves over 800,000 Indiana households – to invest $1.4 billion over the next seven years to improve its electric grid. Doing so will deliver major benefits for Duke’s customers. Read More »

Posted in Demand Response, Grid Modernization, Utility Business Models, Voltage Optimization / Comments are closed

3 Things to Know About Gas Pipeline Regulations

rp_9496055390_6ce041c81b_o-300x168.jpgA ruptured natural gas pipeline in the quiet community of San Bruno, California ignited on the evening of September 9, 2010. The resulting fire destroyed 38 homes, killed eight people, and injured many others. It was one of the biggest pipeline explosions in recent history, and it very likely could have been prevented.

Now, almost six years later, the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) is proposing new regulations to prevent serious incidents, like what happened in San Bruno, from happening again. Read More »

Posted in Climate, Methane, Natural Gas / Tagged , , | Comments are closed

How More Transparent Electricity Pricing Can Help Increase Clean Energy

By: Beia Spiller and Kristina Mohlin

The price of most goods we purchase is CostPriceImagegenerally based on the costs associated with the goods’ production, including the raw materials used to generate them, the labor associated with their manufacturing, and so on. However, when it comes to pricing residential electricity, many regulators choose to use a flat price per unit of electricity (kilowatt-hours, or kWh) that unfortunately fails to adequately reflect the underlying costs of generating and delivering energy to our homes.

This creates incorrect incentives for conservation and investments in distributed energy resources (like rooftop solar, energy storage, and demand response). Getting these incentives right can go a long way in creating more opportunity for efficiency and clean energy resources.

Pricing electricity generation

The cost of generating electricity from large-scale power plants varies significantly over the course of a day. When demand is low, electricity providers call upon the most efficient and inexpensive power plants to produce electricity. As demand increases, they must also utilize more inefficient and expensive power plants. So, for the price of generation to accurately reflect these costs, it too must vary with the time of day. Time-variant pricing charges customers more for using electricity during periods of high demand (such as during hot afternoons) and less when demand is not as great. This pricing system is an accurate reflection of generation costs.

In contrast, flat rates that don’t vary over time incentivize customers to consume more electricity when it’s most valuable to them, even though consuming during times of high demand places a larger cost on the system. Thus, the current, static pricing system creates incorrect incentives for conservation and electricity use. Read More »

Posted in Electricity Pricing / Comments are closed

Clean Energy Conference Roundup: July 2016

rp_conference-300x2001-300x200-1-300x200.jpgEach 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 July:

July 26-28: NY Rev Summit (New York, NY)
Speaker: Rory Christian, Director, New York Clean Energy

  • Building on New York’s Reforming the Energy Vision (REV) initiative, Infocast’s second REVolution summit will focus on how utilities are planning for the future, and how they will explore both the promise and the practical development of microgrids, renewable energy, and emerging opportunities for third party providers. The summit will also consider various state efforts to finance and encourage clean energy markets sufficiently to ensure a robust, sustainable power delivery system. Read More »
Posted in Aliso Canyon, California, Conference Roundup, Illinois, New York, Washington, DC / Tagged | Comments are closed