APS

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.

With recent scale-up in both photovoltaic and concentrated thermal facilities, solar energy is nearing cost parity with wind and even some fossil generation sources. And with development models evolving to help companies manage technology risks, solar power has become an attractive investment opportunity—not just for tax-equity players, but also for utilities.

Regardless of what drives the action — state regulation, federal policy, economic reality — collaboration between utilities and the solar industry is now becoming prevalent. Expanding definitions of utility solar business models represent a significant potential for solar market growth, and provide paths for others to follow.

Customer backlash over dynamic pricing and the smart-grid caught the industry unprepared. CIOs and top customer specialists share their strategies for engagement and attaining consumer satisfaction.

Investor-owned utility executives have long understood the benefits of prepaid metering, but technical and regulatory roadblocks have prevented wide-scale implementation. Now, however, two IOUs—Arizona Public Service and DTE—are planning prepaid metering programs that could be offered to all customers. Smart metering technology might pave the way for prepaid to become a standard service.

The North American Electric Reliability Corp. (NERC) holds substantial enforcement powers as the nation’s electric reliability organization for bulk power transactions. Taking affirmative steps will help utilities and system operators to avoid or minimize NERC penalties.

In light of all the excitement created by smart-grid regulatory initiatives and stimulus funding, three clever tech startups have come forward with proposals for novel grid projects. In California, Western Grid Development proposes to install energy storage devices ranging in size from 10 to 50 MW at various discrete and strategic locations in PG&E’s service territory where the California ISO has identified reliability problems. Second, a company called Primary Power proposes to deploy a total of four advanced, 500-MVAR static VAR compensators (SVC) at three separate locations within the PJM footprint. Third, in Clovis, N.M., Tres Amigas plans to allow power producers to move market-relevant quantities of electric power and energy between and among the nation’s three asynchronous transmission grids: ERCOT and the Eastern and Western Interconnections.

With public opposition rising against almost any kind of utility project or investment, collaboration among stakeholders with widely divergent points of view never has been more critical. Three recent utility cases demonstrate how a formal stakeholder collaboration process can build support for otherwise contentious decisions.