Playing favorites or ‘all of the above’?
Roger H. Bezdek and Robert M. Wendling
In the past 60 years, the U.S. government has invested in every part of the energy industry, through direct subsidies, tax incentives, regulatory mandates, research projects, etc. Quantifying the dollar impact is a complex task, but it’s necessary for understanding the realities of U.S. federal energy policy.
Can time-of-use rates drive the behavior of electric vehicle owners?
Time-of-use (TOU) pricing might seem like the ultimate solution to ensure electric vehicle charging loads won’t overburden the grid. But will TOU rates guide drivers’ behavior when it’s time to top up their batteries? Early indicators suggest the answer varies among vehicle owners and pricing plans.
Why electricity is good—and more is better.
A century of electrification shows clearly that more electricity—and cheaper electricity—enhances public health, raises living standards and also improves the environment. Conversely, higher prices harm businesses and families, with a disproportionate impact on low-income households. Public welfare goals are best served by public policies that make electricity more accessible and affordable to the masses—not less.
Can higher electricity prices be more affordable?
J.P. Pfeifenberger and A.C. Schumacher
Over the past four years, power prices increased significantly in both restructured and non-restructured states—but then the recession and falling gas prices changed the picture for retail electricity rates. Comparing various states shows a surprising result: In restructured states, electricity bills are more affordable—even though rates are higher.
Aligning renewable energy incentives with RPS compliance.
States’ green energy policies are being used to serve multiple agendas. Lawmakers should revisit their renewable incentive programs to better align them with policy goals. A regional approach will yield a more efficient portfolio.
Proving market performance requires detailed analysis.
Now that fuel prices have fallen recently from the highs seen in 2008 and wholesale electricity prices also have decreased, it might be tempting to attribute the lower prices to the restructuring of the wholesale electricity markets. Unfortunately, it’s a little more complicated than that.
Locational marginal prices in PJM respond to demand and fuel costs.
The evolution of real-time locational marginal prices (LMP) in PJM Interconnection’s wholesale electricity markets demonstrates the characteristics of a well functioning and competitive market; prices are driven by supply and demand fundamentals. Although critics of wholesale electricity markets frequently have pointed to increases in LMP as proof that the wholesale markets aren’t working, in reality, the markets are working as they should. Increases in LMP are driven by higher demand for electricity or increasing fuel prices.
The economy forces tough decisions.
The economy has put state commissioners and regulated utilities in precarious positions. Seven state chairmen explain how they’re applying fair rate treatment.
Structuring renewable agreements to survive change.
Donna M. Attanasio and Zori G. Ferkin
The potential for a federal renewable energy standard (RES) and carbon regulation, considered with the effect of state-imposed renewable energy standards, is fueling a strong, but challenging, market for renewable energy. Utilities are competing to sign up the best new projects, the types of renewable technologies available are increasing, and there are various government stimulus programs for energy; yet, the financial markets still are hesitant. Against this backdrop, how should contracts for power from new renewable resources be shaped so that those deals will look as good five, 10 and 15 years after execution as on the day the ink dries?
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.