[BETA] Fortnightly

(July 2011) Xcel Energy names new president and COO; Pacific Gas and Electric adds new senior v.p. and chief information officer; NorthWestern Energy appoints new members to executive management team; plus senior staff changes at Constellation Energy, Alliant Energy, GDF SUEZ, and others.

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.

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?

With budget battles heating up in Washington, Congress and the Obama administration are squaring off to debate energy policy legislation. While Democratic leadership favors a clean energy standard, Republican lawmakers are focused on blocking administration initiatives to regulate greenhouse gas emissions. A compromise approach might bring substantial changes to America’s national energy strategy.

(April 2011) Ameren announces new executive positions; The New York State Smart Grid Consortium names first executive director; Constellation Energy selects lead for solar sales and green initiatives; plus senior staff changes at Puget Sound Energy, Baltimore Gas & Electric, Pacific Gas and Electric, Central Vermont Public Service, Tennessee Valley Authority, and others.

With the abandonment of a nationwide energy policy by the previous Congress, states continue leading carbon mitigation efforts. Indeed, existing state policies and renewable portfolio standards (RPS) are already having a significant impact on the U.S. generation portfolio. FERC now proposes to weigh state policy as a consideration in transmission filings. Should state policies guide federal action? Will they suffice to reduce carbon emissions?

Policy makers in the E.U. and the United States are taking different approaches to facilitating smart grid development. While both regions are setting standards that the rest of the world likely will follow, they also face difficult challenges in resolving issues around cost recovery, customer engagement and workforce preparedness.

Generators and demand-response providers are reaping rewards in forward capacity auctions, causing suppliers to go shopping for the most lucrative markets. Now the Midwest ISO is trying to catch up, by proposing its own auction for years-ahead resource bids. But does RTO shopping serve the interests of customers, who are legally entitled to rates that are just and reasonable? Why are some state policy makers advocating a return to old-school RFPs for long-term contracts?

As Google says, “the wind cries for transmission.” But the opposite is true as well: without new wind and solar energy projects, we would not need to build so many new transmission lines. Each side needs the other, yet neither dares declare too soon, and risk weakening its bargaining position. That is, until one utility in California found a way to break the impasse, with each side scratching the other’s back — thus putting to rest the age-old question, “Which came first, the . . . ?”

New Jersey Gov. Chris Christie in February signed into law a bill that will have the state commissioning construction of 2,000 MW of new gas-fired power capacity and dumping it into the PJM capacity market at a $0 price. Maryland is considering a similar capacity-dumping scheme. What’s behind these efforts to manipulate capacity auctions — regional constraints or local politics?