Competitive energy suppliers are infuriated by Michigan’s regulatory framework. The state partially unbundled its utilities, but left generation tied to retail operations. Then it opened the retail market to alternative suppliers, but capped their participation at 10 percent — severely limiting true competition. Former FERC Commissioner Bill Massey says Michigan’s schizophrenic approach is stifling innovation and saddling customers with unnecessary risks and costs.
Preparing for New England’s capacity transition.
A wave of coal-fired plant retirements presages a possible crisis in the New England market. As load-serving utilities in ISO New England become increasingly dependent on natural gas-fired capacity and large-scale renewable generators, the region might be forced to rely on expensive cost-of-service reliability contracts to keep the lights on. Stakeholders are considering alternative approaches to encouraging power plant development, including special rate incentives previously reserved for transmission projects. Paul J. Hibbard, former Massachusetts DPU chairman and now vice president with the Analysis Group, analyzes how resource constraints are blurring the lines between competitive markets and integrated resource planning in New England.
The smart grid and the slippery business of setting industry standards.
Four years ago, Congress made its wishes known: it tabbed the National Institute of Standards and Technology to develop a set of standards for the smart grid, and then instructed FERC, the Federal Energy Regulatory Commission “adopt” those standards, but only after finding a ”sufficient consensus,” and only “as may be necessary” to assure “functionality and interoperability.” Yet what is known is not necessarily clear. Who decides if consensus prevails? What does “interoperability” mean? Should FERC’s “necessary” finding extend to retail smart grid applications, arguably outside its purview? And the biggest dispute — must standards be mandatory? — finds PJM at odds with much of the utility industry.
Utilities work toward a more mature relationship with customers.
The notion that utilities don’t do a good job of consumer engagement is only half true. The fact is, many customers don’t want to be engaged. They just want cheap, reliable electricity, no questions asked. But smart grid advancements call for a dramatic improvement on both sides of the conversation. Utilities are struggling to create a more mature relationship with their customers.
Investment opportunities in an evolving environment.
Some of the key policy mechanisms and market factors that triggered the boom in renewable energy development have weakened in the face of one of the most severe economic downturns in modern history. In some ways, though, the renewables sector is richer and more dynamic today than when the boom began. A shakeout might be coming among renewable power players, and those that survive will strengthen their capabilities, hone their strategies, and take advantage of industry consolidation to build scale.
Utilities prepare for a bumpy road.
Electric vehicles promise major benefits for utilities, including increased electricity sales and accelerated transformation of passive energy consumers into collaborative stakeholders. But EV integration faces major challenges, from transformer overloading to the complexity of managing mobile transactions. Addressing these challenges in a collaborative way will allow the industry—and the country—to realize the benefits of a healthy market for electric transportation services.
Protecting smart systems against cyber threats.
Smart grid technologies bring a host of cyber security considerations that need to be addressed throughout the T&D domain—and even into the customer’s home. In this exclusive report, Department of Energy authors team up with industry experts to examine how to deal with the changes and challenges of securing the smart grid.
Protecting critical assets in a hazardous world.
In the wake of recent global-scale cyber intrusions, security concerns have expanded from being compliance and operational issues to fundamental risk management considerations. An integrated, enterprise-wide approach holds the greatest promise for securing critical utility infrastructure against increasing dangers in cyberspace.
Can higher electricity prices be more affordable?
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.