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.
Integrating distributed resources into the smart grid.
The remedy for America’s gravest economic woes may lie in a smart grid that can deliver vast amounts of clean, renewable energy while enhancing our energy security and democratizing our energy system. Although regulatory questions and technical challenges might dominate the industry’s short-term focus, the smart grid’s driving forces parallel America’s long-term national interests — a fact that should guide ongoing technology strategies and investment decisions.
With no guidance yet from FERC, Atlantic Wind is forced to wait.
Touted as the nation’s first-ever “offshore transmission highway,” the proposed Atlantic Wind Connection (AWC) high-voltage power line in theory could foster dozens of wind farms in shallow offshore costal waters up and down the mid-Atlantic seaboard — but only if federal regulators can get buy-in for new transmission planning rules that give precedence to large, macro projects aimed at boosting renewable energy. Otherwise, the grid project might never pass muster with the engineers charged with OK’ing new power lines, since the AWC is probably not needed to maintain reliability, and likely would not make electricity rates any cheaper for East Coast ratepayers. Should wind energy developers start with massive grid projects to attract clusters of wind turbines, or should the wind farms come first?
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.
Getting the most from demand response—despite a flawed FERC rule.
FERC’s new rule on compensation for demand resources tips the market balance toward negawatts. Arguably the commission’s economic analysis is flawed, and the rule represents a covert policy decision that stretches federal authority. Nevertheless, economic benefits will result if DR programs are well implemented to avoid gaming the system and distorting the market.
(April 2011) GE Hitachi and Lockheed Martin team up on nuclear reactor controls; Elster wins metering contract in New Hampshire; Xcel hires Bechtel for nuclear services in Minnesota; Mitsubishi builds transformer HQ in Memphis; Northeast Utilities taps Siemens for transmission projects; Iberdrola sells wind output to FirstEnergy; Consumers and DTE invest $400 million to upgrade pumped storage facility; plus contracts and announcements from Alstom, URS, Areva, groSolar, Pattern Energy, S&C Electric and others.
Why the green grid might do better without open access.
Are the Feds at war with green power development? You might have thought so, if you had sat through the conference held March 15, 2011, at the Federal Energy Regulatory Commission, where the consensus seemed to be that FERC’s policy of granting open-access rights on electric transmission lines is problematic for green power projects. In short, when wind and solar developers choose to build their own local tie lines to link their projects to the larger grid, FERC policy forces them to make extra line capacity available to rival developers. That requirement doomed the novel Wind Spirit Project, and continues to complicate the job of project financing.
A proposal for utility regulatory and industry reform.
With America’s balkanized and under-staffed regulatory construct, utility companies are left struggling to achieve true scale economies or make real progress toward achieving national energy goals. This retired IOU executive says it’s time to redesign—and strengthen—the regulatory framework.
New transparency practice turns confidentiality on its head.
The Federal Energy Regulatory Commission (FERC) recently authorized its Office of Enforcement to begin revealing publicly the names of subjects under investigation, as well as summaries of allegations against them, earlier than the commission ever had before. In fact, FERC now may disclose allegations before finding any wrongdoing. This new practice raises the specter of damaging reputations without following what normally would be considered due process.
(February 2011) Silver Spring integrates Itron meters; PECO picks Sensus; AT&T and Elster sign agreement; PSEG Fossil selects ABB for a multi-phase controls project; Trilliant secures equity financing and wins Burbank ARRA contract; Navigant buys BTM Consult; GE acquires SmartSignal; plus contracts and announcements from Survalent, Mitsubishi Motors, AES Energy Storage and others.