AEP rekindles debate over grid pricing, but should the outcome hinge on majority rule?
You might have thought the Feds closed the book on any broad, region-wide sharing of sunk transmission costs—especially after FERC ruled last spring in Opinion No. 494 that PJM could stick with license-plate pricing (LPP) for transmission lines already planned and built. If you thought that, you weren’t alone. Of 25 transmission owners (TOs) in the Midwest ISO (MISO), 24 voted recently to do the same for their market as well.
State-policy turmoil reshapes utility markets.
As many states move toward re-regulation, we speak to commissioners in Illinois, Missouri, Pennsylvania, Texas, and Virginia to learn how policies are evolving—and how far the regulatory shakeup will go
FERC would relax price caps—sending rates skyward—to encourage customers to curtail loads.
About four months ago, at a conference at Stanford University’s Center for International Development, the economist and utility industry expert Frank Wolak turned heads with a not-so-new but very outrageous idea.
Green credits are maturing to become real, tradeable assets.
Michael Zimmer, Jason T. Hungerford, and Jennifer M. Rohleder
By displacing electricity produced from fossil fuels, renewable power plants produce two distinct products—commodity electricity and a set of environmental attributes (particularly avoided emissions). These environmental attributes can be packaged into a product called a renewable energy certificate, or REC, and sold separately from the electricity. As REC markets develop, key issues are being addressed regarding market interaction.
The big challenge facing the Northeast energy markets.
The Northeast energy markets are working hard to establish new levels of regional coordination and cooperation. The region’s concerted effort is essential to resolving some of the industry’s toughest issues since the individual markets evolved. These issues include the elimination, reduction, or bridging of seams issues that prevent the economic transfer of capacity and energy between neighboring wholesale electricity markets, or control areas, as a result of incompatible market rules or designs.
As if carbon control were a fait accompli, gen developers skew the queue toward renewable projects, driving new policy on transmission pricing.
Now at last, in a region other than California, we can see clearly that renewable mandates and fears of carbon taxes have influenced the power-plant development cycle. Moreover, this effect is helping to drive policy proposals for the pricing of transmission service and the recovery of costs for grid upgrades deemed necessary to bring the new plants on line.
(September 2007) DPL Inc. promoted Bryce Nickel to vice president of transmission and distribution operations. DPL also announced the promotion of Kevin Hall to director, transmission and distribution engineering. MDU Resources Group Inc. promoted Cynthia J. Norland, assistant vice president of administration, to vice president of administration. Portland General Electric Co. named Jay Dudley vice president, general counsel, and compliance officer. And others...
Taking the anti-FERC approach to the grid.
Vikram Janardhan, Ajit Kulkarni, Ph.D., Narottam Aul, and Ng Meng Poh
A common response to energy-market risk is a complex market infrastructure, with significant administrative effort and cost dedicated to managing the risks and ensuring that the market functions in a transparent and effective manner. But is market complexity a necessary byproduct of competitive markets?
FERC attempts to reform competitive markets.
Richard Stavros, Executive Editor
The fact that FERC actually released an advance notice of proposed rulemaking in late June, on competitive markets of all subjects, has many in disbelief.
The Southeast again is the battleground for fuels, technology, and market structure.
One sure sign of recovery in boom-and-bust power-generation markets is the renewed growth in the planning and construction of power plants. Active efforts are underway in generation development in the Southeast markets in spite of the high levels of generating reserve margins. With its traditional utility-dominated market structure and a preference for baseload generation, the Southeast is the battleground for the next round of power-generation development.