What conservation potential assessments tell us about ‘achievable’ efficiency.
Regulators across the country are relying on conservation-potential assessments to guide their policy decisions. Models based on macroeconomic analysis, end-use forecasting and accounting measurements provide different ways to assess the achievability of conservation and efficiency goals.
A proposal for utility regulatory and industry reform.
With America’s balkanized and under-staffed regulatory construct, utility companies are left struggling to achieve true scale economies or make real progress toward achieving national energy goals. This retired IOU executive says it’s time to redesign—and strengthen—the regulatory framework.
Models are evolving for utility-scale solar development.
During the next few years, the biggest growth in the solar energy market will happen in the form of utility-scale projects, mostly driven by state renewable portfolio mandates. But financing such projects has become more difficult, with a smaller pool of equity capital and an evolving set of regulatory requirements.
Northeastern politicians declare war on capacity auctions.
New Jersey Gov. Chris Christie in February signed into law a bill that will have the state commissioning construction of 2,000 MW of new gas-fired power capacity and dumping it into the PJM capacity market at a $0 price. Maryland is considering a similar capacity-dumping scheme. What’s behind these efforts to manipulate capacity auctions — regional constraints or local politics?
Hype, hysteria, and strategic planning.
The industry is learning some painful lessons about public communication. Hype has given way to hysteria over smart grid rollouts, and forced many companies to re-think their strategies. Capturing the benefits of new technology requires a straightforward approach to selling the benefits — and facing the costs.
Evaluating smart meters and public backlash.
After ratepayers brought a class-action lawsuit against distribution utilities, Texas regulators commissioned a study of the state’s new smart meters. The study explains why customers reacted the way they did, and offers insights into how the industry can avoid a Texas-style backlash.
In-state green mandates face Constitutional challenges.
In effort to promote local green energy resources, some states are enacting policies that tread on federal authority. Restrictions on power imports to satisfy RPS requirements might violate the Commerce Clause of the U.S. Constitution. Can the states foster home-grown energy without running afoul of federal laws?
What California can teach FERC about transmission planning.
The California ISO is going its own way with its proposal for transmission planning, virtually ignoring FERC’s proposed rules on transmission planning and cost allocation. California wants to bring method to the madness of developing transmission projects, and its approach has raised hackles in the industry. The dispute defines the battle over America’s most attractive market for rate-regulated investment.
State regulators face mandates without consensus.
New federal and state policy mandates are pulling state regulators in many directions. The patchwork of regulations has created a new level of complexity for utility investment decisions and political risk for utilities and state regulators alike.
Ring-fencing after the subprime meltdown.
When Électricité de France stepped in to buy Constellation Energy’s nuclear assets and help the company avoid bankruptcy, the Maryland Public Service Commission conditioned the sale on a set of ring-fencing provisions. The industry has been using such structures to protect ratepayers in complex and high-risk M&A transactions since the 1990s. The protection isn’t foolproof, however—and it can bring problematic regulatory trade-offs.