Energy Exchange

Ohio’s FirstEnergy Buys Customers’ Electricity Using a No-Bid, Self-Dealing Contract…It’s Déjà vu all over again

By John Finnigan / Published: September 9, 2015

In a long-awaited hearing which began last week, Ohio’s largest utility is seeking approval for a rate hike of $3 billion. FirstEnegy is asking the Public Utilities Commission (PUCO) to force customers to pay for its old, dirty, uneconomic coal plants and a nearly-expired nuclear plant.

Although there are many reasons to oppose the bailout proposal, one key objection is that FirstEnergy’s sister company – FirstEnergy Solutions – owns these power plants. Rather than undertaking a competitive bid to find the best deal and most affordable prices available, FirstEnergy agreed to buy the power from FirstEnergy Solutions. Imagine if the owner of your company forced you and every employee to buy expensive health insurance from their cousin, even though you could easily get a better price if you shopped around.

If this sounds bad, it gets worse – this isn’t the first time FirstEnergy has tried this tactic. The utility did the same thing in 2013, and the PUCO slammed FirstEnergy for doing so. This is just a case of déjà vu all over again, and FirstEnergy should expect the same result. Read More »

Posted in Clean Energy, Electricity Pricing, Ohio / Comments are closed

Cutting 50 Percent from California’s Petroleum Consumption can Lower Fuel Prices and Price Volatility While Keeping the Economy Strong

By Tim O'Connor / Published: September 3, 2015

Keep reading for an overview or dig right into a new Environmental Defense Fund (EDF) policy brief on transportation fuel prices and the proposed 50 percent fossil fuel reduction for more details.

If you are a movie buff, you might remember Groundhog Day in which Bill Murray’s character had to relive the same day over and over again. Well, if you live in California, you probably feel like the existing gasoline and diesel system is on the same style of hamster wheel (i.e. roller coaster prices, Californians paying more than the rest of the country, and the petroleum industry spending the money you pay at the pump to lobby against any change).

As the 2015 legislative season comes to a close, a new script can be written for the state’s transportation fuel system in the form of SB 350 (De León). This effort would reduce petroleum use by 50 percent and in the process could reduce overall gas prices in California, reduce seasonal and annual volatility, and inject healthy competition into fuel markets that retain and create jobs across the state.

Understanding how SB 350 can help fuel consumers across California is actually pretty simple. Since the vast amount of California’s fuel is sold by a limited number of providers and drivers primarily rely on a single type of specialized fuel (CARB reformulated gasoline) – there is basically no competition in the market or choices available to consumers. Therefore, decisions by fuel providers to fix refineries or upgrade pipelines have impacts that directly affect the price Californians see at the pump, as well as how much profit or loss those same fuel providers experience. With significant profit margins and a massive fuel consumption rate, it’s no wonder the petroleum industry is trying to retain the status quo where they can single handedly inflate gas prices and profits. Read More »

Posted in General / Comments are closed

Three Technologies that will Keep Energy Costs in Check

By Jim Marston / Published: September 2, 2015

Many American households and businesses saw energy costs soar this summer with July being the hottest month in Earth’s hottest year on record.

Utilities rely on “peaker plants” during these record-setting heat waves to avoid blackouts. Such plants are more expensive and often more polluting to operate, and utilities pass the higher costs straight on to their customers.

Fortunately, this energy equation is changing. Innovative pricing and smart energy systems are gradually taking hold across the United States, already allowing homes and businesses to save energy and cut costs. It’s just the beginning of what I call our next energy revolution.

Here are three technologies on the market today that are fueling this trend: Read More »

Posted in Clean Energy, General, Renewable Energy, Time of Use / Read 1 Response

Finding a Balanced Solar Policy in Kansas

By John Finnigan / Published: August 31, 2015

How does a utility company structure charges for the electricity it sells? That depends on where you live, and across the country, utilities are filing for rate increases with state agencies and commissions. The utility’s charges may be some combination of a fixed monthly fee, a fee based on the volume of electricity used, and a fee connected to the customer’s peak energy use.

Westar Energy in Kansas is one example of a utility company filing for rate increases. The company recently asked the Kansas Corporation Commission for permission to increase the fixed monthly charge for residential customers. That’s not unusual in itself, but the amount of the fixed charge increase was shocking.

Westar also proposed a special rate structure squarely aimed at residential customers with solar panels, essentially penalizing them for using clean energy and discouraging more people from installing solar panels.

Environmental Defense Fund disagreed with Westar’s approach, and we filed expert testimony with Kansas regulators explaining why. Westar finally reached a settlement with the other stakeholders – and our recommendations were instrumental in eliminating the utility’s proposal to impose discriminatory rates on solar customers. Last week the Commission issued the order to approve the settlement. Read More »

Posted in Electricity Pricing, General, Grid Modernization / Read 1 Response

Denver Housing Authority Sets Bar for Municipalities Nationwide

By EDF Blogs / Published: August 31, 2015

By: Victoria Mills and Cheryl Roberto

To many, it may seem that pursuing environmental sustainability would fall relatively low on a municipal housing authority’s goals. After all, providing moderate and low-income families with clean, stable homes in the face of uncertain federal subsidies and increasing taxpayer scrutiny is challenge enough.

The Housing Authority of the City and County of Denver (DHA), therefore, deserves praise for its innovative solar power program that not only provides renewable energy, but creates revenue for the housing authority, creates green jobs in the region, and saves taxpayers’ money – all the while reflecting the spirit of the federal Department of Energy’s Better Buildings Challenge, which looks to reduce energy consumption by 20 percent by the year 2020. DHA serves as a model for municipalities across the country.

Andrea Davis of the DHA’s Real Estate Department and Chris Jedd, portfolio energy manager, showed the creativity and sheer will to make a lofty renewable energy goal affordable, manageable and successful, while providing their communities with empowerment, economic opportunity, and a vibrant living environment. Read More »

Posted in EDF Climate Corps, Energy Efficiency, Energy Financing, Renewable Energy / Tagged EDF Climate Corps, Solar Energy | Comments are closed

Everything You Need to Know about FirstEnergy’s Bailout Request

By Dick Munson / Published: August 30, 2015

After a long summer and several delays, the Public Utility Commission of Ohio (PUCO) is scheduled to begin hearing FirstEnergy’s plea for subsidies today. Over the past few months, Environmental Defense Fund (EDF) and other stakeholders have hit the streets, airways, and internet to explain the company’s proposal. Thankfully for you, we’ve summarized the high-points of all this analysis in an easy-to-read outline. Here are the basics:

What is First Energy requesting?

FirstEnergy is asking PUCO to approve non-competitive purchase agreements that would enable the utility’s distributors to buy power at above-market prices from FirstEnergy’s subsidiary power plants. August 31 marks the beginning of testimony and cross examination of FirstEnergy executives, as well as diverse stakeholders, including EDF. This process may take up to seven weeks.
FirstEnergy is seeking subsidies for the 52-year-old Sammis coal-fired plant; two 60-year-old coal-fired power plants (Kyger Creek in Cheshire, Ohio, and Clifty Creek in Madison, Indiana); the Davis-Bessie nuclear plant, which is two years from the expiration of its 40-year license; and for the utility’s share of the Ohio Valley Electric Corporation. The subsidies essentially shift the financial risk of these older and more expensive generators from FirstEnergy’s shareholders to its customers, who would fund the proposal through fees and higher rates.

Posted in Clean Energy, Demand Response, FirstEnergy / Read 2 Responses