Energy Policy & Legislation

We continue to rush towards a renewable future without considering overall system design, the costs that various renewable scenarios impose on grid operation, and the operation of the grid with these scenarios. When the externalities of climate change and ocean acidification create an overwhelming mandate to move away from fossil fuels, we have no choice but to go forward. Shouldn't we try to pick the cheapest path?

Commissioner Powelson was installed as the 128th president of NARUC in November 2016.

Adam Smith's first book, “The Theory of Moral Sentiments,” argued that people acted not just for money, but also out of professional pride, fairness, patriotism, altruism and other non-economic reasons. Maybe the time has come to revisit Adam Smith and his important first book.

Offer end uses as the product, and not therms or watts. The utility becomes a true energy service company.

In the U.S., electric utilities are the major supporter of MRPs. In other countries, the government has been a major proponent. Countries such as Australia, Canada and Great Britain have relied heavily on MRPs, often citing the deficiencies of traditional rate-of-return ratemaking.

Fairness has conflicting meanings for customers, utilities, power generators, DER providers, and others. Regulators and policymakers must understand their goal should not be the perfect rate design; it doesn't exist.

The typical solar customer in Southern California could recover their investment in seven years. After which, the facility would provide essentially free electricity for at least 18 more years. If this sounds too good to be true, it is. Those generous returns are paid for by federal taxpayers and California residential customers that lack rooftop solar.

The 14 states with highest DER adoption levels represent 40% of the total market for electricity; four states have annual revenues of more than $15 billion.

In 2016, the Institute for Electric Innovation released Volumes I, II, and III of Key Trends Driving Change in The Electric Power Industry. The final volume examines rate and regulatory reform, data analytics, and grid modernization.

Lawmakers in Hawaii are really asking three interconnected questions. Do we need stockholders or shareholders to finance our electric utility? Are we comfortable with private sector management setting goals for the local electricity business? If the electric business is run publicly as a not-for-profit, how will we set rates?