Not your father’s feed-in tariff.
The industry has struggled to craft a feed-in-tariff (FiT) structure that works for solar generators and utility customers, with mixed success. But now, the California Public Utility Commission might have found an approach that other states can replicate. CPUC’s FiT mechanism recognizes the value proposition of solar energy, and uses market forces to drive economic improvements, especially for distributed solar projects.
DR design flaws create perverse incentives.
Demand response isn’t energy: It’s a separate product, traded in a separate market. Policy trends, however, are moving toward equal treatment for demand and supply resources in electricity markets. Does treating DR as energy inflate its value and create perverse incentives?
The real reasons behind the state’s energy savings.
In 2006, the California legislature and governor positioned energy conservation and efficiency as the cornerstone of the state’s Global Warming Solutions Act. The Act mandates a 2020 statewide limit on greenhouse gas (GHG) emissions to 1990 levels. Compliance will be nothing short of Herculean: California will have to reduce per capita energy usage in a manner that accommodates continued brisk population growth and protects the state’s economy from economic dislocations and recessionary pressures.
How to account for lack of strong price signals. A hard year puts deregulation to the test.
Catherine McDonough and Robert Kraus
The greatest benefits of time-of-use pricing come from avoided costs of peaking power and T&D capacity—but only if hourly retail prices accurately model the true costs of delivered energy, including scarcity rents. Restoring the missing price signals will encourage economic investments in AMI, conservation and system capacity.
Vendors battle it out while utilities await common communications protocols.
Uncertainties about smart metering goals are hindering efforts to standardize communications protocols and feature sets. While vendors battle over standards, utilities and policy makers are moving forward anyway—despite the potential for setbacks.
Seemingly eco-friendly definitions can prevent adoption of renewable portfolio standards.
Seemingly eco-friendly definitions can prevent adoption of renewable portfolio standards.
The Texas method for assigning provider of last resort draws criticism from market players and consumer advocates.
Tom Michelman
Texas wins raves from the big players for its rules and systems, but the small consumer, as in other states, sees little reason to switch.
Mark Hand is senior editor of Public Utilities Fortnightly.
Texas wins raves from the big players for its rules and systems, but the small consumer, as in other states, sees little reason to switch.
Six months into the opening of the restructured Texas electric market, industry players are generally pleased with the results, but the jury is still out, as the state's vaunted system design has shown some cracks, and consumers still see little reason to switch their energy supplier.
Retail energy markets entail a unique set of risk management challenges.
See Figure 1
David A. Foti and Martin F. Nellius III
Electric Reliability
Case No. 2000-095, May 15, 2000 (Ky.P.S.C.).
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