Shaping system transformation.
New technologies—and new expectations—require taking a fresh look at the institutions and practices that have provided reliable electricity for the past century. Collective action is needed to define the key attributes of a future grid and then to take the more difficult next step—adapting our processes and institutions to align with that future vision. A thoughtful approach will allow America to capture the potential value that’s offered by sweeping changes in technologies and policies.
Large grids can integrate more wind—without major burdens.
Despite the variable nature of the resource, wind can be managed so that it will not impair the reliability of a utility system. The Federal Energy Regulatory Commission proposed a rule that would require changes to the way transmission service is scheduled, which would enhance the ability of balancing authorities to integrate wind.
Green energy mandates might overburden gas pipelines.
By Diane A. Rigos, Boris L. Shapiro and Richard L. Levitan
Market rules could evolve to compensate gas suppliers for pressurizing pipelines when needed on short notice. Enhanced ancillary services will require innovative strategies using line pack in interstate pipelines and stepped up communication among gas and electric market participants to preserve reliability objectives in gas and electric markets.
FERC modifies its enforcement guidelines.
FERC’s revised policy provides greater predictability and transparency in the commission’s approach to determining civil and criminal penalties under its statutory authority. Despite a more systematic framework, however, FERC retains discretion to assess penalties based on the facts of individual cases.
Forecasting brings wind energy under control.
Advancements in forecasting have improved the reliability of day-ahead and hour-ahead estimates of wind generation. Wind never will behave like a base-load power plant. But as system operators integrate wind forecasts into their planning and market processes, they’re transforming intermittent wind energy into a variable but reliable resource.
How merchant funding is remaking the rules for renewables.
Six weeks ago, FERC opened a notice of inquiry to invite industry comments on whether wind, solar, and other intermittent energy sources face unfair obstacles in wholesale power markets. Now assigned their own acronym—VERs, for “variable energy resources”—renewables make up a growing percentage of the nation’s energy supply portfolio. But as FERC notes, they present “unique challenges,” especially in terms of constraints on location and limits on the degree to which system operators can control or dispatch individual VER units. Thus, FERC suggests that certain common rules and practices, such as those for unit commitment, dispatch, and scheduling, might make it overly difficult to integrate VERs into the grid.
Predicting discord in power plant property tax assessments.
At a time when many states and municipalities are facing budget deficits of historic proportions, many power generators are struggling against declining demand, the lowest electricity prices in many years, and looming carbon legislation. As a result, tax authorities might be seeking to raise property tax receipts at the exact same time that many generators are looking to lower their assessments. Conflict appears to be on the horizon, but where will it emerge? An examination of state budgets, as well as the expected changes in generator gross margins, reveals how tax collectors and taxpayers are most likely to respond.
Modeling variables improves daily estimates of gas demand.
At what daily temperature do customers turn on their furnaces? Or more realistically, given individual behavior, over what range of temperatures do they turn on their furnaces? To estimate the current base for its customers, Columbia Gas of Ohio used daily demand and temperature data for the three-year period from April 2005 through March 2008.
As green mandates tighten, utilities scramble to comply.
Mandatory renewable portfolio standards are becoming the norm. But after low-hanging green fruits are harvested, renewable power might get scarce. Many utilities will struggle to meet RPS requirements until lawmakers create stable federal policies and a national market for green credits.
Modern approaches to system operations and forecasting make the most of variable energy sources.
Nobody disputes windpower’s variability; that’s a given. But modern approaches to demand management, grid integration and wind forecasting are making windpower more predictable and grid friendly. And technology companies are marketing a variety of equipment and services to support a growing base of variable wind capacity—sort of like a virtual Country Kitchen Buffet for the windpower picnic.
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