Bill Hogan, Unbundled
A candid commentary on current topics in electric restructuring.
A no-holds-barred interview with the electric industry’s chief architect of wholesale electric market design.
Transmission
Bridging the Seams
Interregional planning under FERC Order 1000
With no single entity in charge, transmission planning has plagued projects that span multiple regions. A new framework offers a solution.
A Pricey Peninsula
Michigan chafes over regional grid planning, providing a policy lesson for the feds.
High prices have turned Michigan against regional planning -- a possible foretaste of what to expect under FERC Order 1000.
RTO Tango
PJM and MISO ran from the altar once before. Now there’s talk of a shotgun wedding.
Utilities in the Midwest ISO want greater access to sell into PJM’s lucrative market. But that might require a virtual merger of the two RTOs — a move rejected seven years ago as too costly, and perhaps still impractical today.
Double Trouble in PJM's Capacity Market
Policymakers and industry seek a formula to assure competitiveness and resource adequacy.
New Jersey’s bid to force prices downward in PJM’s capacity market not only raises the alarm about market manipulation. It also reveals a dilemma that’s preventing new generation from being built. Incumbent interests and political motivations make PJM less attractive to investment than it should be.
Learning to Love Congestion
Competitive market problems and their implications for customers’ net costs.
In competitive power markets based on locational marginal pricing (LMP), the facts sometimes conflict with popular belief. Most notably: 1. When there’s congestion, the books don’t balance, and ratepayers always pay more than the generators receive. The difference is sometimes called “congestion cost.” 2. Congestion in a competitive market doesn’t necessarily increase ratepayers’ costs; and 3. Reductions in LMP are incomplete and sometimes misleading measures of economic benefits of transmission upgrades. These three facts and their implications should be considered in transmission planning, market design, tariffs, and system operations.
It's the Money, Not the Fish
Bonneville Power, wind curtailments and the bigger picture.
Asset owners in the Northwest cry foul as the Bonneville Power Administration struggles to reconcile FERC orders with its operational realities. The battle between wind and water has blown up into a regional conflict over transmission tariffs.
CEO Forum: Facing the Future
Three CEOs, three business models, one shared outlook.
Cheap gas, regulatory uncertainties, and a technology revolution are re-making the U.S. utility industry. Top executives at three very different companies—CMS, NRG, and the Midwest ISO—share their outlook on the industry’s transformative changes.
Sun Damage
Geomagnetic storms and the limits of human experience.
On April 30, FERC held a technical conference to review scientific claims and policy arguments about geomagnetic disturbances, known as GMD—how some say that a once-in-a-century solar storm could induce a power surge on the interstate grid so destructive as to cook and fry as many 300 extra-high-voltage transformers, plunging much of the nation into a blackout lasting months or even years. Some researchers even harbor fears that GMDs could end life as we know it.
Killing the Goose
Second thoughts on transmission’s golden egg.
The electric utility industry offers up a wealth of ideas on how the Federal Energy Regulatory Commission might reform its policy, adopted under FERC Order 679 in 2006, of granting financial incentives for investments in transmission line projects that ensure reliability or mitigate line congestion so as to reduce the cost of delivered power. Fortnightly’s Bruce W. Radford reports.