Energy Exchange

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

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 »

Posted in FirstEnergy, Grid Modernization, Ohio / Read 1 Response

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

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 »

Posted in FirstEnergy, Ohio / Read 1 Response

Thinking beyond Microgrids to Build a Smarter Energy Future

Chicago_@_Night_from_JH (1)Localized power grids that have the ability to disconnect from the main, centralized grid – known as microgrids – have become one of the electricity industry’s latest darlings. Particularly after Hurricane Sandy knocked out electric generators and wires along the Northeast coast in 2012, urban and utility planners have been devising localized grids that can operate autonomously, strengthen the overall power system’s reliability and resilience, and protect critical infrastructure like hospitals, water treatment facilities, and police stations in the event of a grid-wide outage.

There are environmental benefits to microgrids as well. Clean energy advocates tend to rave about the ability to integrate growing amounts of distributed energy resources, including solar, wind, energy storage, and demand response, which rewards customers for conserving energy. And by avoiding the long-distance transmission of electricity, microgrids and their distributed generators can also reduce energy losses and increase efficiencies. These outcomes all have the potential to curb pollution, while cutting costs for utilities and their customers.

More importantly, as microgrids expand, they prompt us to imagine broader opportunities – and recent developments in Illinois are exploring new frontiers.  Read More »

Posted in Grid Modernization, Illinois / Read 5 Responses

Holistic Energy-Water Planning: Hedging Your Bets in a Water-Stressed World

ewn road to resilienceYou probably have some sort of insurance – for your healthcare, car, house, or apartment. Acting on climate change is also like insurance. It is all about managing the risks.

We can’t know for certain what the future brings, but recent research predicts a 40 percent shortfall of available water across the globe by 2030. In the face of this prediction, a new report from the World Energy Council, “The Road to Resilience – Managing the Risks of the Energy-Water-Food Nexus” helps lay some groundwork to ensure we plan for the climate risks that will affect our most essential resources.

I have talked about the reliance of energy on water and water on energy (the energy-water nexus), and touched on their connection to food. But let me make that linkage clearer: 70 percent of available global freshwater is used by the agricultural sector, and energy is the second-largest freshwater user globally after agriculture (although this varies from country to country and region to region). Relatedly, about 15 percent of total U.S. energy demand is for the food sector (this includes both agriculture and processing), and roughly 13 percent of U.S. energy use is for water-related purposes.  Read More »

Posted in Energy-Water Nexus / Read 4 Responses

A Good Grid is Like a Good Vacation: Balanced and Well-Timed

photo-1456425712190-0dd8c2b00156On vacation and awake in my too-soft bed at 5 AM while my family snored, I was regretting my misaligned sleep schedule. But then I realized time was on my side, so I tiptoed out in solitude for sunrise at the south rim of the Grand Canyon. Thanks to my very clever smart phone that is also a camera, my amateur photos (sort of) reveal the majesty of this national landmark. When we realize the schedule of Nature’s wonders is both beautiful and indefatigable, and humble ourselves with simple acts of realignment, harmony can be found amidst the springs and cliffs of our lives.

Just as timing helped me take advantage of something I would have otherwise missed and my smart phone aided in capturing the moment, similar lessons can be learned in how we use energy. My phone, when linked to a smart thermostat, can help align my electricity use with cheap, clean energy resources like solar and wind. Soon residential customers of California’s “big three” utilities, Pacific Gas & Electric (PG&E), Southern California Edison (SoCal Ed), and San Diego Gas & Electric (SDG&E), will be able to take full advantage of this option.  Read More »

Posted in California, Electricity Pricing, Time of Use / Read 3 Responses

We’re wasting solar energy because the grid can’t handle it all. Here’s a solution.

caligrid_378x235California has a nice problem: It’s producing so much clean solar energy that the state’s electric grid is at capacity, and sometimes beyond.

As Vox’s David Roberts reports in his excellent piece about California’s grid headache, it makes good sense to expand the system by interconnecting state-run energy markets.

But he also notes, at the end of his story, some other and complementary strategies California can use to increase its grid bandwidth – while accommodating rapidly growing, but variable, renewable energy sources.

Connected grids, alone, are not a long-term fix. Read More »

Posted in California, Clean Energy, Electricity Pricing, Energy Efficiency, Grid Modernization, Renewable Energy, Solar Energy, Time of Use / Tagged | Read 3 Responses