Energy Exchange

Illinois Considers Greenhouse Gas Metric for Evaluating Utility Performance

By Dick Munson / Published: September 12, 2014

Source: pgegreenenergy

A new utility business model – “Utility 2.0” or “reform” – is the hot topic in statehouses and regulatory commissions across the country. This is due to many factors: technological innovations in the energy sector, changing consumer expectations, increasing electricity prices, tighter regulations, and the need to decarbonize our energy sector as we grapple with climate change.

Some argue utility earnings should be based on performance rather than volumetric electricity sales. They suggest utilities’ monopoly interests should be aligned with enabling clean energy services – such as on-site renewable energy and home energy management – instead of simply delivering more electricity.

Key to this new approach is the ability to define – and then measure – performance. This will require a set of metrics by which utility investments can be judged and rewarded. Illinois was the early adaptor of performance-based metrics for its historic smart meters roll-out and is finalizing a set of metrics this week that are critical to designing a utility business model for the future. Read More »

Posted in Clean Energy, Demand Response, Electricity Pricing, Energy Efficiency, Grid Modernization, Utility Business Models / Read 1 Response

What a Difference a Day Makes! The Value of Real-Time Electricity Data

By Gavin Purchas / Published: September 11, 2014

Source: gato-gato-gato

Imagine you’re trying to lose weight. If you step on the scale once a month, how can you possibly know how each of your daily decisions affects the number? Weighing yourself every day would be a step up, giving you a much clearer picture of the effects of each day’s choices. Now imagine the potential results if you could access real-time data – if you were able to see just how many calories were in each food you picked up, as well how much energy you were exerting at any given moment.

Thanks to a meta-analysis on behalf of the American Council for an Energy Efficiency Economy (ACEEE), we can now see that access to this kind of granular, real-time data on electricity use leads to significant household electricity savings.

Survey highlights importance of timeliness and granularity

The ACEEE survey aggregates multiple studies designed to evaluate the effectiveness of different types of electricity customer feedback from the past 20 years, including 61 trials from around the world: 33 from the U.S., 13 from Europe, 9 from Canada, and 3 others. Such a diverse pool allows us to draw important conclusions about consumer energy use habits while controlling for variations in culture, climate, and energy use patterns. The results are displayed in the graph below. Read More »

Posted in Clean Energy, Clean Power Plan, Climate, Electricity Pricing, Energy Efficiency, General, Grid Modernization, Utility Business Models / Comments are closed

Household Electricity Data May be a Click Away for Illinois Residents

By Dick Munson / Published: August 18, 2014

Source: Alex Rumford

Energy data collected via smart meters could lead to services that improve people’s lives and cut harmful carbon pollution. This is true if customers have easy access to the energy data they need to control their own energy use and reduce their electricity bills – which isn’t always the case.

When the Illinois General Assembly passed the Energy Infrastructure Modernization Act in 2011, local utilities ComEd and Ameren touted their many benefits, including greater control over peak energy load, electric grid resiliency, and cost savings resulting from the energy conservation efforts of their electricity customers. Now that smart meter deployments are well underway, utilities need to enable the many benefits of smart meters by empowering customers with easy access to their own energy data.

To facilitate this endeavor, EDF and Citizens Utility Board (CUB) joined forces to develop the Open Data Access Framework, a first-of-its-kind proposal, which the groups presented to the Illinois Commerce Commission (ICC) on Friday, August 15th. Read More »

Posted in Clean Energy, Data Access, Grid Modernization, Illinois / Read 1 Response

Corporate Buyers Demonstrate Demand for Renewables. Now it’s Time for the Market to Catch Up.

By Victoria Mills / Published: August 14, 2014

Colin Krenitsky, 2014 EDF Climate Corps fellow for the Denver Housing Authority.

Last month, twelve major corporations announced a combined goal of buying 8.4 million megawatt hours of renewable energy each year, and called for market changes to make these large-scale purchases possible. Their commitment shows that demand for renewables has reached the big time.

We’re proud that eight of the twelve are EDF Climate Corps host organizations: Bloomberg, Facebook, General Motors, Hewlett Packard, Proctor & Gamble, REI, Sprint and Walmart. The coalition, brought together by the World Wildlife Fund and World Resources Institute, is demanding enough renewable energy to power 800,000 homes a year. And while it’s great to see these big names in the headlines, they’re not alone in calling for clean energy: 60 percent of the largest U.S. businesses have set public goals to increase their use of renewables, cut carbon pollution or both. Read More »

Posted in Clean Energy, Climate, EDF Climate Corps, Energy Financing, General, Renewable Energy, Utility Business Models / Comments are closed

To Opt-In or Opt-Out: What Works For Time-Variant Pricing

By Beia Spiller / Published: August 7, 2014

Source: Johannes Rössel, wikimedia commons

It would be logical to assume that we make decisions based on our needs, desires, and values regardless of how the choice is presented. For instance, we wouldn’t expect the choice to become an organ donor to depend on whether you must check a box to accept or decline donation. But we would be wrong: our decisions depend a great deal on how the choice is presented.

Choice architecture gets to the heart of the debate on whether it’s preferable to offer people the opportunity to opt-in or to opt-out, and this question has become crucial to the discussion about time-variant electricity pricing throughout the country.

Opt-out vs opt-in time-variant pricing

Currently, most electricity customers pay for electricity at a single flat rate (i.e., one price per kWh consumed). Such pricing is simple but doesn’t reflect actual system costs, which are higher during times of the day when overall energy demand peaks. Time-variant pricing instead allows utilities to charge more for electricity during periods of peak demand, and less during periods of lower demand. Read More »

Posted in Clean Energy, Demand Response, Electricity Pricing, Energy Efficiency, Grid Modernization / Read 3 Responses

Massachusetts Moves to Modernize its Electric Grid – What this Means for Customers, Utilities

By John Finnigan / Published: June 20, 2014

Source: Leatherndevil, via Wikimedia Commons

According to the Electric Power Research Institute, the U.S. will need to invest $124 billion between now and 2030 to upgrade its electric distribution system, and these upgrades will require state utility commissions to thoughtfully plan for and oversee the investments. Last week, Massachusetts became one of the first states to begin this process by taking a bold step to modernize its electric grid, joining states like New York and Hawaii, which recently introduced similar measures.

On June 12, 2014, the Massachusetts Department of Public Utilities (DPU) ordered utilities to file ten-year grid modernization plans. These plans will spell out how utilities plan to incorporate modern technology to improve electric service and connect clean energy resources to the grid. This will provide customers access to cleaner and higher quality electricity service at a lower cost. Read More »

Posted in Clean Energy, Grid Modernization, Utility Business Models / Comments are closed