Uncertain market design affects generation investment planning.
Mark Griffith and Keith Durand
Faced with state-wide electric utility restructuring and power-market deregulation, the state of New York constantly has been adjusting the state’s power markets to meet the potentially contradictory goals of low cost, yet reliable power. In New York this has taken many forms, including monitoring of energy prices, caps on capacity prices and forced divestment of assets to reduce potential market abuses.
New England shows the benefits of demand resources in forward capacity markets.
By Sandra Levine, Doug Hurley and Seth Kaplan
New England is leading the way toward a future that is both cleaner and provides greater electric reliability at reduced cost. New England Independent System Operator (ISO-NE) has created an innovative mechanism that addresses concerns about ensuring adequate energy capacity by allowing the cleanest and lowest-cost resources to be used to meet the nation’s power needs.
ERCOT’s February emergency suggests storage capacity is needed to support renewables.
ERCOT in February averted a blackout that could have become a disastrous defining moment for the windpower industry. This near miss can teach utilities and system operators valuable lessons about integrating variable energy sources into the power grid.
In light of your prescient Frontlines column, “PURPA Redirected” (February 2008), I am curious of your insight. Is there a nexus between §571 of EISA and the demand response (DR) text in the pending FERC NOPR, RM07-19-000, “Wholesale Competition in Regions with Organized Electric Markets,” issued Feb. 22, 2008?
The New York ISO named Mary McGarvey its vice president and chief financial officer. Pacific Gas and Electric Co. announced that its board of directors elected Barbara Barcon as vice president, finance and chief financial officer. Henry B. “Brew” Barron was appointed president, chief executive officer and chief nuclear offer of Constellation Energy Nuclear Group. MidAmerican Energy Holdings Co. announced that Gregory E. Abel became the chief executive officer. And others...
Fiber optic lines expose grid companies to class action lawsuits.
Arnold Tesh and Deborah Haskell
Property owners are banding together and filing class-action lawsuits against transmission owners who sell dark-fiber capacity on their rights of way. Utilities have strong arguments against demands for hefty compensation.
Strategic pain points require an artful approach.
Monica Benner and Mani Vadari
Utilities are at the threshold of some of the most significant changes they have faced in their history, rivaling the passage of PUHCA in 1935. This change emanates primarily from a handful of key business drivers associated with major technological improvements (i.e., AMI, smart grid), the need for increased customer focus, increased regulatory mandates, and a changing workforce.
Why developers today are often kept waiting to get projects ok’d to connect to the grid.
Late last year FERC learned that the Midwest regional grid likely would require at least 40 years — until 2050 — simply to clear its backlog of proposed gen projects awaiting a completed interconnection agreement to certify their compatibility with the interstate power grid. But grid engineers would meet that date only by shortening the process and studying multiple projects simultaneously in clusters. To apply the process literally, studying one project at a time, as envisioned by current rules, the Midwest reportedly would need 300-plus years to clear its project queue.
RTO markets aren’t living up to the promise of cheaper power.
Robert McCullough, Berne Martin Howard and Michael Deen
Regional Transmission Organizations (RTOs) have not performed as well as open wholesale markets over the past decade. RTO advocates want governmental intervention, but the best answer may be requiring RTOs to file system lambdas.
Modern approaches to system operations and forecasting make the most of variable energy sources.
Nobody disputes windpower’s variability; that’s a given. But modern approaches to demand management, grid integration and wind forecasting are making windpower more predictable and grid friendly. And technology companies are marketing a variety of equipment and services to support a growing base of variable wind capacity—sort of like a virtual Country Kitchen Buffet for the windpower picnic.