Competitive market problems and their implications for customers’ net costs.
Hyde M. Merrill and Richard D. Tabors
In competitive power markets based on locational marginal pricing (LMP), the facts sometimes conflict with popular belief. Most notably: 1. When there’s congestion, the books don’t balance, and ratepayers always pay more than the generators receive. The difference is sometimes called “congestion cost.” 2. Congestion in a competitive market doesn’t necessarily increase ratepayers’ costs; and 3. Reductions in LMP are incomplete and sometimes misleading measures of economic benefits of transmission upgrades. These three facts and their implications should be considered in transmission planning, market design, tariffs, and system operations.
Bonneville Power, wind curtailments and the bigger picture.
Bruce W. Radford
Asset owners in the Northwest cry foul as the Bonneville Power Administration struggles to reconcile FERC orders with its operational realities. The battle between wind and water has blown up into a regional conflict over transmission tariffs.
Hybridizing fossil plants with solar thermal technology.
Charles W. Thurston
Utilities are testing options for adding solar capacity to existing steam power plants. Concentrated solar thermal boosters increase plant efficiency and reduce emissions, while helping utilities to cost-effectively meet renewable mandates.
The regulator’s role in promoting cybersecurity for the smart grid.
State commissions can select from a toolkit of regulatory approaches to promote desired utility cybersecurity behavior. One approach is to allow the industry to selfregulate, and another approach is to leave the job to the federal government. But sofar, neither the industry nor the federal government have developed and implemented adequate standards for securing the smart grid. States can play a constructive role—albeit perhaps not in the form of traditional regulation.
EPA’s new water, waste, and air regulations complicate power plant compliance.
New environmental requirements under the Clean Water Act (CWA) will add to the already complex burden of compliance for power plants. As the Environmental Protection Agency moves forward with cooling water and effluent standards, utilities and generators will have to deal with overlapping rules and conflicting policy goals.
Squeezing plant outage duration by days or even weeks can save the industry billions of dollars in lost running time. The San Onofre outage is just the most visible example of what’s at stake for the industry. New outage management technologies and processes allow generators to coordinate outages and get critical plants back online quickly and efficiently.
(July 2012) NRC renews Entergy Pilgrim nuclear license. San Francisco selects EnerNOC. Entergy contracts with Comverge. FPL adds Quantum Ford F-150 PHEVs to its fleet. Lincoln Renewable Energy dedicates 12.5-MW NJ Oak solar project.
Southern Company announced changes in the company’s management team. Great Plains Energy and Kansas City Power & Light (KCP&L) appointed Scott Heidtbrink as executive v.p. and COO of KCP&L and greater Missouri operations. NV Energy announced two senior leadership appointments. Pacific Gas & Electric (PG&E) appointed Jesus Soto Jr. as senior v.p. of gas transmission, operations, engineering, and pipeline integrity. And others...
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