Energy Exchange

Why The Texas Railroad Commission Must Get Well Integrity Right

By Scott Anderson / Published: April 25, 2013

On February 28, 2013, something went very wrong on a well site in Hemphill County, Texas:

According to Railroad Commission investigators, there was “one injury from well head being blown off when casing parted.”

According to the investigators, it took almost two weeks before this “frac water” stopped flowing out of the wellbore, and another week for the well to be plugged. The investigation did not determine the underlying cause of this accident.

Getting the rules right on well integrity is about preventing pollution, protecting the environment, securing property and, most importantly, saving lives. There were no fatalities in this accident, but sadly, that is not always the case (learn more about risks EDF’s natural gas work addresses).

The Railroad Commission is close to finalizing a historic well integrity rulemaking, the most significant overhaul of these practices in several decades. It is, on the whole, an excellent effort, bringing Texas back to the forefront on well construction, operation and maintenance practices. The proposals are progressive and will lead to real environmental benefit.

One particular provision of the proposal, however, falls short of the standard set by the rest of the rulemaking. It has to do with the amount of space surrounding casings, the steel pipes that go underground. This “annular space” (or “annular gap”) is supposed to be filled with cement as necessary to isolate groundwater from pollution, protect the casing from corrosion, and prevent gas from migrating to places it does not belong.

The width of the annular gap matters. In order for a cement job to be effective, the gap must be neither too wide nor too narrow.

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Posted in Natural Gas, Texas / Comments are closed

Nest Labs: Proof Life Exists In The Smart Grid Ecosystem

By Jamie Fine / Published: April 23, 2013

This commentary was originally posted on EDF’s California Dream 2.0 blog.

There are many conceptions of the smart grid; what it is and what it should do for us – the “ratepayers” – who will finance the necessary upgrades to California’s electrical system. I find the concept of a “smart grid ecosystem” — with smart customers, smart utilities and smart markets — to be a helpful guidepost as we seek to evaluate what should be accomplished by the utilities trusted to deploy our smart grid.

Ecosystems achieve resiliency through diversity. We want a variety of clean energy resources on the supply side – hydropower, wind, solar photovoltaic, solar thermal – spread across a variety of locations (but never too far from customers). Similarly, on the demand – or customer – side, Californians, buildings, appliances and electric vehicles create an intricate, synergetic web that can be made more efficient and flexible with customer education and empowerment, customer-focused energy pricing policies, and demand response (which allows customers to voluntarily reduce peak electricity use and receive a payment for doing so in response to a signal from their electric utilities).

There are other ways to contemplate diversity in the energy context: Unlike some other states, most Californians can’t choose their power providers, though they can choose among rate “plans” (which are payment schemes, not plans to help manage energy use and costs). EDF recognizes that a smart energy marketplace will thrive with a greater variety of competitors, products and services, and would like to see “3rd party energy service providers” able to participate (that catch-all term includes organizations that deliver energy services and products to customers at a variety of levels throughout the smart grid ecosystem).

Yesterday’s announcement by Nest Labs (Nest) is more proof that the smart grid ecosystem is alive and well. With utility partnerships in California and Texas, among other places, Nest uses their intelligent, WiFi-connected thermostat to help customers smartly and painlessly trim energy use by learning, and mimicking, their temperature preferences automatically. For example, the Nest’s Seasonal Savings services will alert your thermostat when new rates apply with a change of season and the device will begin slight adjustments to presets to adapt to predictable weather trends. Read More »

Posted in General / Comments are closed

Looking For User-Friendly Data On The Real Benefits Of Energy Efficiency? Try REED

By Kate Zerrenner / Published: April 18, 2013

Earlier this month, the U.S. Department of Energy (DOE) announced the Regional Energy Efficiency Database (REED), a user-friendly tool to engage policymakers, customers and industry on the real benefits of energy efficiency. With the support of the DOE, the Northeast Energy Efficiency Partnership (NEEP) created the regional database to create consistent protocols for energy efficiency in Connecticut, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont, with Delaware and the District of Columbia to be added later this year. NEEP’s Regional Evaluation Measurement and Verification Forum (EM&V Forum) will then use these protocols to evaluate and measure the results of each participating states’ energy efficiency programs.  

Back in 2010, the EM&V Forum adopted standard guidelines for reporting, and as a result, has been able to develop this database that not only allows users to visually see the benefits of energy efficiency within a state, but also compare them in a meaningful way against other states in the region.  Think of it as a little energy efficiency competition amongst neighbors.

The Northeast region has a robust energy efficiency partnership and network, the Regional Greenhouse Gas Initiative (RGGI), which caps power plants emissions and higher electricity costs than most other regions in the country, all of which incentivizes energy efficiency. By accurate monitoring and verifying energy usage using the EM&V Forum, policymakers can determine which programs are the most impactful, from both and economic and environmental perspective, which ensures consumers that their tax dollars are providing tangible benefits.

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Posted in Energy Efficiency, Washington, DC / Comments are closed

California Leading The Way To Clean Energy Innovation While A Few Lag Behind Investing In Litigation, Obstructionism

By EDF Blogs / Published: April 17, 2013


This commentary by Erica Morehouse, EDF Staff Attorney was originally posted on EDF’s California Dream 2.0 blog.

Climate pollution threatens the health of California’s families and the prosperity of our economy. Last November, California began a vitally important program that reduces climate pollution, rewards clean energy innovation, and helps ensure that the biggest emitters are responsible for their own pollution.

The program places a firm limit on overall climate pollution from the largest industrial emitters in California, allows flexible solutions to achieve that limit across sources, and requires major industrial emitters to bear a small portion of their pollution costs by requiring them to obtain carbon emissions allowances under the state’s cap-and-trade program, under which allowances may be obtained in public auctions or trades on the open market.

Fast forward five months, Californians are already realizing critical health and economic benefits from this groundbreaking environmental policy. And, the Golden State continues to lead the way in clean energy and transportation jobs due in large part to AB 32, which has opened the door for greater investment in the clean energy economy. More good news: Yesterday, the state fulfilled a requirement of 2012 AB 32 Legislation by releasing its blueprint for how to expand these benefits by investing proceeds from auctions to strengthen our economy, our health, and the environment.

California’s plan focuses on making key greenhouse gas reductions in three sectors: transportation, energy, and natural resources. The goal is to create multiplier effects that allow Californians to draw benefits from these opportunities that far outweigh the investment. And every day new research shows just how widely the benefits of clean economy investments can ripple. EPA recently released a study showing that if energy costs accounted for the health impacts of burning fossil fuels, they would increase by between $361 and $886.5 billion annually. When California invests in clean energy those hidden health benefits accrue for years to come – and they protect our families and our children.

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Posted in California, Energy Efficiency, Renewable Energy / Comments are closed

Renewables BuyBack Bill Pays Good Money For Clean Energy

By / Published: April 15, 2013

Picture this: You live in Texas, the state with the most solar energy potential in the U.S.  Knowing this, you decide to install solar panels on your home’s rooftop because, in Texas, you can lease – rather than buy – the entire solar energy system.  The option to lease allows you to take advantage of a low monthly payment that will be offset by the savings on your energy bill, rather than face high upfront investment costs.

Now, while you are at work during the day, your panels are actually putting excess, unused energy back onto the grid, when electricity is most expensive.  And, that surplus of energy isn’t just wasted; it is used by your electric company to serve other customers.  In most states, electric companies buy this power back at a retail rate.  But, in Texas it’s not quite that simple.  In order to see any form of pay back, you have to be a lucky customer of one of only three retailers – TXU Energy, Reliant Energy and Green Mountain Energy – that offer “renewable buyback” rates in Texas.  If you happen to buy electricity from one of the other 50 retailers serving residential providers across the state, though, you could always switch over to a renewable buyback program.  But there is no guarantee that you will be paid a fair market value for the 25+ years your solar energy system is expected to last.

Making a long-term investment to protect against highly-fluctuating, unpredictable electric rates is a difficult decision, and making that decision without knowing whether you are guaranteed fair compensation is nearly impossible.  This is one of the key reasons why Texas lags behind the nation in solar adoption.  Fortunately, there is a solution in the works.  Senate Bill 1239 from state Senator Jose Rodriguez seeks to guarantee homeowners, schools and religious facilities at least a minimum buyback rate based on wholesale market energy prices, which were about 50 percent lower than retail rates in 2011, on average.  The bill has a similar impact for rural electric co-operative, municipal and independently-owned utility customers, ensuring that any homeowner, school or religious entity that installs a properly-sized solar energy system will be compensated comparable to the way a fossil fuel power plant is compensated in the wholesale market. Read More »

Posted in Renewable Energy, Texas / Tagged | Read 1 Response

A Clean Energy Paradise In The Pacific

By / Published: April 12, 2013

When people think Hawaiian paradise, usually beaches, sun and trade winds come to mind. The price of energy? Not so much.

The state actually has the highest electric rates in the nation, approximately 2 to 3 times higher than the average price on the mainland. Given these high rates and the relatively mild climate, it makes sense that Hawaii’s customers are among the lowest monthly consumers of electricity at 585 kWh per month. However, despite low energy use, Hawaii’s customers still have the highest electric bills in the nation, at a whopping $203 per month on average. That’s 20 percent higher than the next highest state’s average bill!

It’s appropriate, then, that the Aloha State is on the forefront of policy measures intended to lower energy bills by looking to energy efficiency and renewable energy. Hawaii’s sunny days, coupled with its extraordinarily high cost of electricity, make going solar a relatively attractive option. And, not to mention, a much cleaner option given that the state relies on petroleum to generate over 75 percent of its electricity. In fact, Hawaii ranks third in the nation for total installed solar electric capacity per capita. However, the upfront cost of installation remains a significant barrier to widespread adoption of clean energy technologies. Access to financing is limited to those with stellar credit, and there is little incentive for renters to pay for energy upgrades to properties they don’t own. In Hawaii, solutions that work for renters are especially important since over 40 percent of the state’s residents rent.

But all is not lost. On February 1st, the Hawaii Public Utilities Commission (PUC) delivered a blueprint of a promising on-bill program to help residents and small commercial customers — including renters — invest in cost-saving, clean energy projects. By allowing for repayment of private financing for energy efficiency and renewable projects on customers’ monthly utility bills, Hawaii would be the first-in-the-nation to offer a statewide residential and small commercial on-bill program. The program works for renters and property owners because the energy benefits and the repayment obligation transfer from tenant to tenant with the property, enabling customers to invest in projects that outlast their terms of occupancy. Read More »

Posted in Energy Efficiency, On-bill repayment, Renewable Energy / Tagged , | Read 1 Response