Analysis Group

FERC Revises Market-Based Rate Procedures

Order 816 indicates the commission is scrutinizing the underlying calculations of market power analyses.

This revision could have significant impact on market power analyses of certain franchised utilities and affiliated MBR entities.

2014 Utility Regulators' Forum

Diversifying Utility Regulation: State regulators voice opinions as mixed as the nation’s geography.

Interviews with public utility commissioners from key states – New York, California, Maryland, and Georgia – on coal carbon, climate, and the revolution in retail. What they’re thinking. What they’re planning.

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.

Results-Based Regulation

A more dynamic approach to grid modernization.

The utility’s role is changing, and regulation must change along with it – to spur innovation and respond to evolving customer needs. Modernizing the industry will require a dynamic approach.

Putting a Price on Carbon

How EPA can establish a U.S. GHG Program for the Electricity Sector.

With the Environmental Protection Agency’s proposed greenhouse gas (GHG) emissions standards expected in June 2014, many states are considering their own approaches to provide flexibility in meeting compliance requirements. Experience in North America to date provides policy guidance.

Tranche Warfare

The experts do battle over capacity market design.

A FERC conference this fall aired new major policy options for capacity markets. Amid the battle, ISOs are making tactical adjustments.

Labor Costs and the Rate Case

Incentives, staffing, and benchmarking in a tight economy.

In several recent utility rate cases, regulators have disallowed portions of utility compensation expenses, on the basis that difficult local economic conditions justify pay cuts. However, when utilities begin squeezing their uniquely qualified technical and management staffs, performance can suffer. Analysis Group authors David W. Sosa and Virginia Perry-Failor review experiences at several companies to show how an evidentiary approach will help utilities avoid disallowances of critical compensation for valued employees.

Battle Lines:

2011 Groundbreaking Law & Lawyers Survey and Report

With a flurry of major new environmental regulations, the Environmental Protection Agency (EPA) is altering the power generation landscape. But will the new federal rules survive court challenges—to say nothing of next year’s national elections? Fortnightly's Michael T. Burr considers the controversy over new environmental standards. PLUS: Top Utility Lawyers of 2011.

Retirement is Coming

Preparing for New England’s capacity transition.

A wave of coal-fired plant retirements presages a possible crisis in the New England market. As load-serving utilities in ISO New England become increasingly dependent on natural gas-fired capacity and large-scale renewable generators, the region might be forced to rely on expensive cost-of-service reliability contracts to keep the lights on. Stakeholders are considering alternative approaches to encouraging power plant development, including special rate incentives previously reserved for transmission projects. Paul J. Hibbard, former Massachusetts DPU chairman and now vice president with the Analysis Group, analyzes how resource constraints are blurring the lines between competitive markets and integrated resource planning in New England.

Letters to the Editor

Jay Kumar, President, Economic & Technical Consultants Inc.: Could Hind Farag and Gary L. Hunt point out any winner whose power costs have decreased after the implementation of LMP? I can bet they won’t find even one single (real) entity. ... I am glad that MISO is sticking to the original basis of a supposedly competitive market.

Diane Moody, Director, Statistical Analysis, American Public Power Association: “The Fallacy of High Prices” purports to show that restructuring of wholesale power markets has resulted in significant benefits. However, the analysis it offers in support of this proposition is not credible.