Energy Exchange

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.

The Process Priority: Inspiring Good Rate Design for Our Modernizing Grid

By Diane Munns / Published: July 29, 2016

Untitled design (19) New technology is evolving electricity transmission from a centralized, one-way system to a more distributed, interactive one. This system necessitates new electricity rates, and the National Association of Regulatory Utility Commissioners (NARUC) unveiled this week at its annual summer meeting a draft manual that will help states across the U.S. design them.

The Distributed Energy Management Compensation Manual is basically a compendium of rate design options that regulators can consider, and it outlines each option’s pros and cons. NARUC President Travis Kavulla charged his staff with writing the manual – a monumental undertaking – and we commend the organization for this effort.

I was pleased to speak during the Town Hall event at which NARUC rolled out the draft manual, and my remarks focused on one critical need: good rate design process. Choosing the right electricity rate for a state is important, but so too is the process by which regulators arrive at that decision. Early in the document it recognizes, “A jurisdiction will need to identify its current status regarding DER [distributed energy resources], what role it expects DER to have in the future, understand the nature of DER adoption rates, and identify necessary policy developments to accommodate that future.” Now is the time to encourage NARUC to include in the manual a dedicated section that shows states how to build a process for ratemaking that will be sustainable, benefit consumers, and advance in tandem with electricity distribution technology. Read More »

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

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

By Jayant Kairam / Published: July 12, 2016

CATemp On 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.

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

Market Forces are Driving Coal’s Demise and Cleaning Up the Grid in Texas

By Jim Marston / Published: June 15, 2016

power lines unsplash cropped What do economists and environmentalists have in common? When it comes to Texas’ energy future, more than you may think.

According to a new study from the Brattle Group, a reputable, national economics consulting firm with extensive experience in Texas’ electricity sector, market forces are leading to coal’s rapid decline in the Lone Star State. Moreover, rapidly-growing cleaner electricity sources like natural gas and renewable energy will be able to entirely meet Texas’ additional power needs – without increasing electric bills. We couldn’t agree more.

That said, we’re confident the impacts are going to be even more powerful in terms of Texas’ wind, solar, and energy efficiency. And the latest report from Texas’ main grid operator, the Electric Reliability Council of Texas (ERCOT), continues to support that expectation. Read More »

Posted in Air Quality, Natural Gas, Renewable Energy, Texas / Comments are closed

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

By Jamie Fine / Published: April 18, 2016

photo-1456425712190-0dd8c2b00156 On 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

A Successful Cleanup at Aliso Canyon Requires a Principled Approach

By Tim O'Connor / Published: April 7, 2016

aliso pic 2 The leak in Southern California Gas Company’s Aliso Canyon Facility released a massive amount of methane – a powerful climate change pollutant. Like other catastrophes, now that the pollution release is stemmed, the focus shifts towards cleanup and mitigation (as well as establishing causation, preventing recurrence, and pursuing legal actions).

Last week California took a major step on the cleanup front with the release of the final Aliso Canyon mitigation plan, a plan to cut pollution equal to about 100,000 metric tons of methane. Its aims to achieve these reductions by focusing on the agriculture and waste sectors, increasing energy efficiency and decreasing use of fossil fuels, and reducing methane “hot spots.”

While the portfolio of strategies laid out within the finalized plan is strong, this is only the beginning of a lengthy process, and one in which pushback from SoCalGas is already palpable. As the critical details of the mitigation plan are put into action, adherence to core principles is necessary to ensure mitigation from the Aliso Canyon disaster is a success story for the climate and people of California. Read More »

Posted in Aliso Canyon, Methane, Natural Gas / Read 1 Response