FERC Order 1000 and the case for alternative solutions.
Elizabeth Watson and Kenneth Colburn
How FERC Order 1000 gives short shrift to NTAs (non-transmission alternatives) in regional system planning—while consumers pay the price.
Lessons from New England on electric-gas market coordination.
Despite the hype about cheap gas, pipeline constraints are creating new risks. New England’s wholesale power prices ran three times as high this past February compared to the same month in 2012.
Distribution utilities could become an important source of renewable funding.
Distribution utilities are well positioned to provide tax equity for renewable projects, but some state laws prevent it. Tapping the potential will require progressive leadership by utility executives and regulators.
Building a model that works across states and programs.
ISO New England develops the nation’s first multistate long-term forecast of energy-efficiency savings.
Second thoughts on transmission’s golden egg.
The electric utility industry offers up a wealth of ideas on how the Federal Energy Regulatory Commission might reform its policy, adopted under FERC Order 679 in 2006, of granting financial incentives for investments in transmission line projects that ensure reliability or mitigate line congestion so as to reduce the cost of delivered power. Fortnightly’s Bruce W. Radford reports.
Adding up the benefits of infrastructure investments.
J.P. Pfeifenberger and D. Hou
Allocating the costs of new transmission investments requires accurately assessing the value of those new lines, and identifying the primary beneficiaries. But formulaic approaches rely too much on the most easily quantified cost savings, and reject benefits that are dispersed across service areas—or that might change over the course of time. Brattle Group analysts J.P. Pfeifenberger and D. Hou explain that comprehensive valuation produces a more accurate picture.
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.
(August 2011) Economic consultant Michael Rosenzweig challenges Constantine Gonatas’s proposal for ensuring FERC’s demand response rulemaking achieves its objectives. Also, Juliet Shavit takes issue with Contributing Editor Steven Andersen’s characterization of utility customers as “crazy.”
(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.
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.