Fickle behavior by LSEs threatens to destabilize organized markets.
Dodging capacity payments might become an art form among load-serving entities and large electric consumers, as evidenced by Duquesne’s plan to exit PJM, as well as alternative market-designs proposed by large users. But such behaviors might only serve to disrupt organized markets and cause a return to full regulation.
A new theory on capacity markets and the missing money.
Bruce W. Radford
On Wednesday May 7, FERC will host a conference in Washington, D.C. that might prove extraordinary. The commission staff promises not only to review the forward capacity markets now operating in New England and PJM—each a story unto itself—but also to discuss a new rate-making theory that has come virtually out of nowhere and which proposes to help solve the notorious “missing money” problem.
New Models for Energy RD&D: A new ‘Clean Energy Institute’ could lead the industry’s war on climate change.
John A. Bewick
Clean-energy R&D needs better funding and leadership to meet aggressive greenhouse-gas emissions reduction targets. But how does the industry get there, and what management model best suits achieving such lofty goals? A new ‘clean-energy institute’ might be the answer.
ERCOT’s February emergency suggests storage capacity is needed to support renewables.
ERCOT in February averted a blackout that could have become a disastrous defining moment for the windpower industry. This near miss can teach utilities and system operators valuable lessons about integrating variable energy sources into the power grid.
Simulation modeling can improve O&M and capital-planning processes.
Patrick J. Delaney and Wiko Kabiling
Electric utilities are faced with the challenge of managing a range of aging distribution assets that are critical to system reliability. They also are threatened with potentially huge costs as they seek to replace these assets over the coming years to maintain reliability. Making intelligent decisions about asset maintenance and replacement requires accurate information about the failure patterns of these assets over time.
Voltage sag shows value of accurate wind forecasting.
Michael T. Burr
Variability is a well-known characteristic of windpower, and system operators know they must plan for changes in wind generation over the course of a day. But when those plans fall short, voltage levels can drop quickly, forcing grid operators to dispatch resources to make up the difference—either by shedding load or bringing reserve generation online.
Utilities can transform the world’s energy economy.
Michael T. Burr, Editor-in-Chief
Perceval’s sagas are largely forgotten today, but at least one of them serves as a useful metaphor for an industry seeking the proverbial Holy Grail of clean-energy technology—specifically, the tale of Perceval and the Fisher King.
As president and CEO of ISO New England, Gordon van Welie has his feet planted firmly on each of two sides of a cultural divide. First, as a transmission system operator, van Welie must keep the lights on and the wires humming. At the same time, he must run a regional market—an ongoing experiment in freewheeling capitalism in an industry fraught with more long-term uncertainty than perhaps any other.
The New York ISO named Mary McGarvey its vice president and chief financial officer. Pacific Gas and Electric Co. announced that its board of directors elected Barbara Barcon as vice president, finance and chief financial officer. Henry B. “Brew” Barron was appointed president, chief executive officer and chief nuclear offer of Constellation Energy Nuclear Group. MidAmerican Energy Holdings Co. announced that Gregory E. Abel became the chief executive officer. And others...
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