Energy Exchange

REPORT: CA Utilities Are Leaking Lots of Gas – but There’s a Way to Stop It

A new report confirms with greater accuracy than ever before that California natural gas utilities are letting huge amounts of their product escape into the atmosphere – about 6.6 billion cubic feet in 2015. That’s more than the amount of gas released during last year’s Aliso Canyon disaster, and over twice the total loss from all of the state’s oil and gas wells.

These huge gas losses are a major environmental problem. Methane – the main ingredient in natural gas – is a potent climate pollutant.  Leaks and other emissions from California utilities in 2015 have the same climate impact as burning more than 1 billion gallons of gasoline.

Where the data comes from and what it means

In 2014 California passed SB 1371, a new law requiring utilities to reduce methane emissions. This new report is based on emissions data collected under that law.  Read More »

Posted in General, Methane, Natural Gas / Comments are closed

What the US Electricity Sector Can Learn from the Telecom Revolution

Utilities and regulators are not typically known for innovation. Instead, they tend to focus their efforts and attention on reliability and cost effectiveness. So, when Rob Powelson, new president of the National Association of Regulatory Utility Commissioners (NARUC) kicked off his first national meeting under the theme “Infrastructure, Innovation and Investment,” I was intrigued.

The opening general session focused on how to upgrade aging utility infrastructure in ways that optimize new technology, and introduced a new Presidential Task Force on Innovation to promote modernization. This task force will discover how NARUC members can embrace emerging innovation – like integrated energy networks and battery storage.

This utility-industry focus on innovation marks a new direction. To prepare for the venture, we can learn from the most recent rapid disruption in a related industry, telecommunications: a mere 20-year transition from POTS (plain old telephone service) to PANS (pretty amazing new stuff). This cautionary tale reveals that the winners are grid operators who welcome new ideas and offer customers new services. Read More »

Posted in Grid Modernization, Utility Business Models / Read 4 Responses

EPA’s Greenhouse Gas Inventory Makes Progress but Misses Forest for Trees

In its draft 2017 GHG inventory, published this week, the EPA estimates methane emissions from the oil and gas industry were lower than their previous estimate in the 2016 inventory.

The vast majority of the decrease comes from methodological changes in how EPA does these estimates and does not represent actual reductions from improved industry practices. We expect to see fluctuation in EPA estimates in future inventories as the agency continues to revise their accounting methods; this inventory should not be viewed as the final answer. But, to see the actual trend in emissions, you should compare 2015 emissions to their updated estimate of 2014 emissions, not the estimate from last year’s inventory. EPA estimates a mere 2% reduction in actual emissions, largely attributable to reduced drilling activity and well completions, which is a result of lower oil and gas prices in 2015. This points to the importance of recently enacted regulations, like the EPA NSPS and BLM rule, to drive the much greater reductions needed to minimize waste and the climate impacts of oil and gas. Read More »

Posted in General, Methane, Natural Gas / Comments are closed

Aliso Canyon Decisions Must Be About More Than Just Near-Term Safety

openclosedAfter months of speculation, the California agency in charge of setting standards for oil and gas operations (“DOGGR”) this week announced a pair of meetings to take public comment on the reopening of the Aliso Canyon Natural Gas Storage Facility.

This development stems from legislation passed in 2016 (SB 380), and is expected to be among the final steps before Southern California Gas Corporation (SoCalGas) is allowed to restart limited use of the facility. So, while it’s critical for the state to get its decisions right for safety and near-term electric reliability related to Aliso, to fully comply with SB 380, the decisions being made also need to take into account the larger issues facing California today. Read More »

Posted in Aliso Canyon, California, General, Methane, Natural Gas / Comments are closed

Utility Regulators Guided To Set New Rates Deliberately, Using Data

pecan-street-neighborhood-solarDistributed resources – like residential solar, storage, and electric cars – are becoming more mainstream every day. This presents new challenges for utilities and utility regulators who are struggling to capture their benefits, while balancing shareholder interests and reliability.

To help utility commissions around the U.S. navigate the challenges, considerations, and policy developments related to the emergence of distributed energy resources, the National Association of Utility Regulators Association (NARUC) board of directors accepted a rate manual written by its staff subcommittee at its annual meeting. The Distributed Energy Resource Compensation Manual supports a deliberate, reasoned approach to making rate design changes by providing practical guidance to its members. Read More »

Posted in Clean Energy, Electric Vehicles, Electricity Pricing, Solar Energy / Tagged | Comments are closed

The Killer App for The Internet of Things? Combating Climate Change.

graphicCo-authored by David Kirkpatrick, Techonomy’s CEO.

When Elon Musk announced his lower-priced Tesla 3 electric car in the spring of 2016, he opened the press conference with rhetorical questions. “Why does Tesla exist? Why are we making electric cars?” The audience of car fanatics and techies didn’t expect the answer he gave, though a clue came from the fact that Musk was already working to fold his other company, SolarCity, into Tesla. He continued: “Because it’s very important to accelerate the transition to sustainable transport…for the future of the world.”

Then Musk started talking about the world’s “record CO2 levels,” noting, “The chart looks like a vertical line, and it’s still climbing!” He sees Tesla as targeting climate change — the cars will connect to the solar systems and home storage batteries, so “every individual is their own utility,” and less carbon is emitted. Not what you’d expect from a car company.

Musk seldom uses the phrase, but what he was talking about was the Internet of Things (IoT) — putting computing intelligence into the objects and systems that surround us, connecting them to the network, and stitching it all into a digital ecosystem. Tesla’s cars, solar collectors and batteries all are connected, communicating via the internet. While the concept of IoT has been batted around the tech industry for a decade, with companies including Cisco and Intel placing hefty bets on its success, only now — suddenly — is it starting to make sense. Read More »

Posted in Clean Energy, Climate, Energy Innovation, Grid Modernization, Solar Energy, Time of Use, Utility Business Models, Wind Energy / Tagged | Comments are closed