Commission Watch

Scare Tactics

New England’s proposed capacity market reform would force generators to ‘Be There or Else.’

Facing worries about resource adequacy, ISO New England proposes changes that would penalize generators that fail to perform when needed -- for any reason. Market players say it can only work if the system operator allows for reasonable exceptions.

Invoice Enclosed

Having lost Entergy to MISO, the Southwest Power Pool seeks its pound of flesh.

Welcome to the age of RTO competition: region vs. region, grid vs. grid. It could well outdo the choice wars between retail energy suppliers that we thought were in our future.

Cross-Border Bargaining

Interregional grid planning under FERC Order 1000.

Territorial fights emerge in the interregional transmission plans proposed for compliance with FERC Order 1000.

Transmission Policy in Flux

More planning, fewer incentives, and a black swan on the horizon.

The transmission superhighway still needs major investments. Rate incentives were working -- until FERC started backing away from them. FERC should assert its authority more aggressively to promote the vision of a robust interstate grid.

Rethinking Capacity Markets

A pragmatic new approach to assuring reliability.

The latest dispute over PJM’s bidding rules has raised the level of uncertainty in organized electricity markets. Efforts at reform have created a market structure so jumbled that it can’t produce just and reasonable rates -- or assure adequate supply resources. It’s time for FERC to consider alternative approaches to market design.

Solar Screen Test

Making room on the local grid for small-scale PV.

For the first time, perhaps, the electric utility industry may need to keep track not only of peak load, but also of minimum load, as the Federal Energy Regulatory Commission reviews a proposal by the Solar Energy Industries Association to employ a new definition of minimum load under a new, relaxed threshold test that would govern eligibility for fast-tracking of applications by generation developers to interconnect new, small-scale solar energy projects to the local utility distribution grid.

Baghouse Bottleneck

EPA, mercury and electric reliability.

The energy industry has known for decades that federal regulators eventually would set rules under the Clean Air Act to govern emissions of mercury and other air toxics from coal-fired power plants. However, with the U.S. Environmental Protection Agency now having issued a final mercury rule, along with guidelines for possible extensions of the compliance deadline, utilities and power plant owners finally have a clear idea what they are up against. And the outlook isn't pretty. The challenge is to retrofit many hundreds of generating plants across the country--and all on the same three-year compliance schedule. Yet two wildcards remain in play: what deference the EPA will give to electric reliability needs, as it "consults" with the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Council; and how effective FERC Chairman Jon Wellinghoff will be as Republican leadership in Congress works to derail the new rules.

Baked-In or Decoupled?

Rate case risk in a climate of declining sales.

(November 2010) Data from 2010 ROE Survey documents the industry’s struggle to reconcile rate trackers and decoupling provisions in utility rate cases.

Bench Report: Top Ten Legal Decisions of 2010

2010 Law & Lawyers Report

1. Private Bargaining vs. Public Interest; 2. Negawatts = Megawatts?; 3. Smart Grid Skeptics; 4. Troubled Waters; 5. $1 Billion Down the Drain; 6. Feed-In Frenzy; 7. Spreading Downwind; 8. Violator Beware; 9. Greenhouse Two-Step; 10. SPP’s ‘Highway/Byway’ Plan.

One if by Wholesale, Two if by Retail

Which path leads to the smart grid?

A fierce debate has erupted in the utility policy community, with battle lines drawn within FERC itself. In the effort to improve system efficiency, two competing alternatives stand out: to build the smart grid on large-scale demand response (DR) programs, or to build it around consumer behavior in retail markets.