California Energy Commission

2008 Regulators Forum: Putting Efficiency First

New rate structures prioritize conservation, but will customers buy it?

As saving energy becomes a policy priority, utility commissioners struggle to reconcile traditional revenue models with smart metering and smart pricing. Unlocking conservation potential will depend on transforming passive ratepayers into smart consumers. Fortnightly hosts a roundtable discussion with commissioners from six states.

RPS Race

As green mandates tighten, utilities scramble to comply.

Mandatory renewable portfolio standards are becoming the norm. But after low-hanging green fruits are harvested, renewable power might get scarce. Many utilities will struggle to meet RPS requirements until lawmakers create stable federal policies and a national market for green credits.

Inclining Toward Efficiency

Is electricity price-elastic enough for rate designs to matter?

Contrary to conventional wisdom, electricity demand isn’t immune to price elasticity, and rate designs can encourage conservation. In particular, inclining block rates coupled with dynamic pricing can cut electric use by as much as 20 percent.

Policies Get Smart

State and federal incentives push utilities to invest in grid intelligence.

State and federal incentives provide the carrot for utilities to invest in grid intelligence. But regulatory and technological incentives are not enough without customer participation. Smart-grid policies will succeed only by focusing on customer needs and benefits.

Optimizing Demand Response

A comprehensive DR business case quantifies a full range of concurrent benefits.

The benefits of DR remain difficult to quantify. Building a comprehensive business case requires a shift in how policy makers think about DR in order to understand its real possibilities.

No Generator Left Behind

A new theory on capacity markets and the missing money.

On Wednesday May 7, FERC will host a conference in Washington, D.C. that might prove extraordinary. The commission staff promises not only to review the forward capacity markets now operating in New England and PJM—each a story unto itself—but also to discuss a new rate-making theory that has come virtually out of nowhere and which proposes to help solve the notorious “missing money” problem.

Selling the Smart Grid - The Pitch

Two utilities win customer support for dynamic pricing and demand response.

If the recent backlash against California’s proposed new building codes proves anything, it’s that ratepayers won’t buy into the smart-metering concept by themselves. The industry will have to sell it. How then should electric utilities, municipals and cooperatives go about introducing smart grid technologies? Two major utilities—Public Service Electric & Gas (PSE&G) and Southern California Edison—are in the early stages of doing just that

Selling the Smart Grid - The Backlash

California learns painful lessons from its proposal to mandate demand response.

When the California Energy Commission (CEC) proposed to include programmable communicating thermostats in the state’s new building codes, it expected some push-back from home builders. It didn’t expect what it got: a major public outcry.

Selling the Smart Grid

Special report on public support for smart metering and demand response.

Smart metering is entering the public consciousness. But gaining support from consumers is tricky business, as evidenced by the recent backlash in California. Customers will accept dynamic pricing and demand-response capabilities only if regulators and utilities take a soft-sell approach.