Fortnightly Magazine - July 2016

Giving Credit Where Credit is Due

Ensuring State Emission Reduction in Clean Power Plan

Strong public policy favors giving states credit for the carbon reductions they make while the Plan’s legality is pending.

Order 745: A Time Bomb for Electricity Consumers

One of the worst orders FERC has ever produced

Order 745 overcompensates demand response, unduly discriminates against wholesale suppliers, sanctions and institutionally enforces the exercise of monopsony market power, and will ultimately raise electricity prices.

Energy Cloud Playbook

Building Competitive Advantage for Grid of the Future

The pace and impact of change in the energy industry are unrelenting. Utilities must rethink many of the assumptions that have anchored strategic planning to date. This requires that utilities play both defense as well as offense to remain competitive.

The Consumer-Centric Utility

Empowering Consumers while Managing Risk and Optimizing Assets

Electric utilities do not simply sell a commodity. They sell safe, affordable, reliable and clean electric service. The “Consumer-Centric Utility” business model provides a viable framework for utilities while enabling new products and services that meet growing consumer expectations.

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.

Geomagnetic Disturbances and the Grid

Harmonics Studies Needed to Assess Vulnerabilities

NERC recently issued reliability standards in response to the potential for geomagnetic disturbances to disrupt operations and possibly damage assets. The power industry appears to have placed undue emphasis on GMD’s threat to transformers. Our studies and those by others have underscored the value to transmission organizations in assessing their vulnerability to harmonics.

Energy Company's Pipe Dream

Why $3.3 Billion Northeast Energy Direct Pipeline Was Defeated

It’s a David and Goliath story. But instead of a slingshot, David in this case fired off a stiff legal challenge to defeat the giant.

Ratemaking and the Campaign Against Rooftop Solar

Rate design should balance consumer and investor interests.

Regulators should ensure that changes to rate design seek to balance consumer and utility interests. Rates that are intended to insulate utilities from economic and technological change while providing no benefits to consumers ought to be considered unjust, unreasonable, and unduly discriminatory.
V