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Regulators Can Win the Trifecta with Residential Demand Charges

Advanced metering and demand charges give efficient and equitable price signals to customers.

The wide deployment of smart meters gives regulatory policy-makers a rare opportunity to change residential rate design. This can be done in a way that improves economic efficiency, and utility consumer and shareholder equity. Here we provide ten questions that should be asked by policy-makers, as well as some guidance in deriving the answers.

Action by Choice

Time-varying rates is an effective way to satisfy customer demands.

In the 21st century economy pivoted on customer choice, opt-in is the path to tread in the provision of time varying rates to electricity customers.

Fueling America's Economic Engine

New energy economy also relies on some old fossil friends.

It has not been public investments in sustainable fuels and modern tools that have led to the re-awakening of the U.S. economy. Rather, it’s been mostly private investment in shale gas development that has led to new capital formation, infrastructure development and jobs galore.

Taking Digital to Scale

Eight key ‘plays’ to alter how work is managed and performed.

Adopting digital capabilities to transform operations and processes holds immense promise for utilities. Indeed, it’s the best path to growth.

Gridlock in 2030?

Policy priorities for managing T&D evolution.

A pair of myths is driving many investments today—i.e., America’s T&D system is falling apart, but the smart grid will save the day. A new MIT study reveals a more nuanced truth about reliability, efficiency, and plans for new technologies. The most effective policies and investments will focus on solving real problems and delivering tangible benefits.

Bonneville's Balancing Act

In the Pacific Northwest, you either spill water or spill wind.

The wind power industry has been up in arms ever since the Bonneville Power Administration earlier this year announced its Interim Environmental Redispatch and Negative Pricing Policy. That policy, applicable during periods of high spring runoff and heavy water flow volumes on the Federal Columbia River Power System, calls for BPA to redispatch and curtail access to transmission for wind power generating turbines, and to replace that resource with hydroelectric power generated via BOA hydroelectric dams, in order to avoid having to divert water through dam spillways, which could threaten fish and wildlife by creating excess levels of Total Dissolved Gas (TDG), which can cause Gas Bubble Trauma. Yet the legal issue remains unclear: Does this practice imply discrimination in the provision of transmission service, or is it simply a matter of system balancing and generation dispatch? In fact, the FERC may lack jurisdiction over the dispute, as it pertains to the fulfillment of BPA’s statutory mandates.

Grid 2050

Shaping system transformation.

New technologies—and new expectations—require taking a fresh look at the institutions and practices that have provided reliable electricity for the past century. Collective action is needed to define the key attributes of a future grid and then to take the more difficult next step—adapting our processes and institutions to align with that future vision. A thoughtful approach will allow America to capture the potential value that’s offered by sweeping changes in technologies and policies.

Balance of Power

Large grids can integrate more wind—without major burdens.

Despite the variable nature of the resource, wind can be managed so that it will not impair the reliability of a utility system. The Federal Energy Regulatory Commission proposed a rule that would require changes to the way transmission service is scheduled, which would enhance the ability of balancing authorities to integrate wind.

States' Rights, Gamed Markets

FERC OK's PJM's capacity price floor, but questions remain about 'legitimate interests.'

FERC seems to say that states remain free to interfere with RTO markets.

Citing what it called “mounting evidence of risk” that PJM’s RPM capacity market could indeed “be gamed,” the Federal Energy Regulatory Commission (FERC) last week OK’d most of the tariff amendments PJM had proposed to correct flaws in its Minimum Offer Price Rule (MOPR), which allows the grid operator to mitigate or predatory, below-cost bids by suppliers who would sell generating capacity into the region.