Charles River Associates

Regulatory Roundup

2004 FERC roundup: Path 15 Upgrade; Gas Bypass Pipeline; Power Line Communications; Gen Station Power Needs; ISO Retail Service; Renewable Energy Portfolios; Gas Supply Risk; Fuel Cost Hedging; Utility Supply Solicitations; Provider of Last Resort; Coal Seam Gas; Deceptive Marketing Practices; Renewable Portfolio Standards.

Tranche Warfare

The experts do battle over capacity market design.

A FERC conference this fall aired new major policy options for capacity markets. Amid the battle, ISOs are making tactical adjustments.

Congestion on Trial

PJM and the crisis over FTR underfunding.

PJM’s latest crisis—the underfunding of financial transmission rights that we’ve seen over the last few years—pushes regulators right to the edge. How far do they trust wholesale power markets? Do they accept the idea, proven by a famous economist, that freely traded financial instruments can work just as well—better even—than firm, physical contract rights?

In PJM’s case, we are told, the problem occurs when too much negative congestion shows up in real-time balancing. But if congestion is bad, shouldn’t negative congestion be good?

No Fuel, No Power

Lessons from New England on electric-gas market coordination.

Despite the hype about cheap gas, pipeline constraints are creating new risks. New England’s wholesale power prices ran three times as high this past February compared to the same month in 2012.

Nuclear Faceoff

Indian Point and the battle for the nation’s energy future.

State lawmakers are trying to block relicensing of the Indian Point nuclear power plant near New York City, but the owner hopes to keep the plant generating low-cost electricity. The battle over Indian Point raises new legal issues—and represents a microcosm of the struggle for America’s nuclear future.

Low-Income Reality Check

Evaluating the impact of dynamic pricing.

Are residential time-of-use prices only effective for middle class households, or do low-income customers benefit too—as authors Lisa Wood and Ahmad Faruqui asserted in their October 2010 article? Data from pilot programs show that low-income customers exhibit a reduced ability to benefit from dynamic pricing. Demand response programs should accommodate the realities of low-income customers’ consumption patterns.

When Markets Fail

New England grapples with excess capacity and rock-bottom prices.

Corrosive.” “Seriously flawed.” On the “brink of market failure.”That’s what critics say about New England’s forward capacity market (FCM), whereby ISO New England conducts auctions to solicit offers from project developers to make electric capacity available three years into the future to meet anticipated regional demand.

Rethinking Prices

The changing architecture of demand response in America.

Pilot projects are demonstrating the potential of smart metering and smart rates to make the most of supply and demand resources. But as empirical studies show, not all pricing designs are equally suited to every region.

'T' Party Revolt

Transmission expansion costs are spread unevenly, driving a wedge between utilities and regions.

Back in June, the Bismarck Tribune ran an interview with North Dakota Public Service Commissioner Tony Clark that showed just how difficult it is to build national consensus for renewable energy.

Buyer's Remorse

The PJM complaint and the rising cost of electric reliability.

Who says ratepayers must accept the traditional measure of electric reliability—a single one-hour outage every ten years? If shown the bill ahead of time, might they decide otherwise; that such luxury is no longer affordable? Consumers are making similar decisions about gasoline and mortgages. Why not electricity?