Refining the business case for advanced distribution investments.
As utilities plan their capital budgets for the next few years, investments in advanced distribution systems face an uncertain future. Customers question the value—and propriety—of some programs, while long-term strategic goals depend on seamless integration. What will be the path forward for smart grid technology?
Re-starting the Big Build calls for revisiting cost-recovery mechanisms.
By Sherman Elliott and Ralph Zarumba
As the industry resumes major capital-spending programs, utilities and their stakeholders are rightly concerned about the effects on prices. Traditional regulatory approaches expose utilities to risks and costs, and can bring rate shock when capital spending finally makes its way into customers’ bills. Pre-funding investments can provide a smoother on-ramp to bearing the costs of a 21st-Century utility system — but it also raises questions for utilities to address.
(April 2012) MidAmerican Energy awarded a contract to Siemens Energy to supply wind turbines for its 407-MW project expansion. American Electric Power began operating the 580-MW Dresden natural gas-fired combined-cycle power plant. Duke Energy and ChinaHuaneng Group signed a three-year agreement expanding their research cooperation to include coal and carbon capture and sequestration technologies. And others...
(March 2012) DTE Energy awards contract to URS; Exelon and Constellation reach an agreement with Electricite de France; Dominion and Lockheed Martin enter a joint marketing and development alliance; plus deals involving Nissan North America, CenterPoint Energy Field Services, Honeywell, Silver Spring Networks, and others.
A look at issues facing the commission for the coming year.
Price-Responsive demand, EPA regulations, and merger policy will be on the agenda for the coming year as the Federal Energy Regulatory Commission works its way through the list of key cases that were pending at FERC as of January 2011.
(January 2012) American Electric names new vice presidents; Northeast Utilities announces executive changes; Southern Nuclear and Peabody Energy name new vice presidents; plus senior staff changes at IDACORP, Georgia Power, Conservation Services Group, and others.
But transmission planning, as we know it, may never be the same.
The recent landmark ruling on transmission planning cost allocation, known as “Order 1000,” and issued by the U.S. Federal Energy Regulatory Commission in late July 2011, could well produce an unintended side effect — the formation of regional compacts among states to identify needs and plan for development of new power plant projects.
(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.
The changing architecture of demand response in America.
Ahmad Faruqui, Ryan Hledik and Sanem Sergici
Pilot projects are demonstrating the potential of smart metering and smart rates to make the most of supply and demand resources. But as empirical studies show, not all pricing designs are equally suited to every region.
The economy forces tough decisions.
The economy has put state commissioners and regulated utilities in precarious positions. Seven state chairmen explain how they’re applying fair rate treatment.