Commission

Restoring Financial Balance

With looming mandates and aging infrastructure, utilities need regulatory support.

The balance of stakeholder interests in utility ratemaking has shifted over the past decade toward achieving social policy goals. A more sustainable balance is required if utilities and regulators hope to preserve utility service quality and affordability.

Transmission Tug-of-War

From EPAct to Order 1000, siting authority continues evolving.

Six years after Congress granted FERC “backstop” siting authority for electric transmission projects in the Energy Policy Act of 2005, the regulatory landscape is still evolving as a result of federal court decisions and new FERC orders. But despite a lack of certainty at the federal level, project sponsors have filed numerous applications at the state level for new transmission projects. Can these projects proceed without greater certainty at FERC?

Bench Report: Top Ten Legal Decisions of 2011

1. ‘Policy’ Guides the Grid; 2. Carbon Not a Nuisance (Yet); 3. Gigabucks for Negawatts; 4. A MOPR, Not a NOPR; 5. Ramp Up the Frequency; 6. Cap-and-Trade Still Lives; 7. Cyber Insecurity; 8. Korridor Killer; 9. The Burden Not Shared; 10. Ozone Can Wait.

People (October 2011)

Tennessee Valley Authority implements new leadership group; Foley & Lardner hires two partners; New York Independent System Operator names new consumer interest liaison; Alterra appoints new CEO; plus senior staff changes at Xcel Energy, Galvin Electricity Initiative, Arch Coal, and others.

Vendor Neutral

(October 2011) Wind Capital group selects RMT Inc. to design and construct wind energy facility; MEMC Electronic Materials, Inc. and SunEdison acquire Fotowatio Renewable Ventures; Solar Community and Reliant Energy team up to offer financing options; KEMA selects Green Energy Corp.’s software; Leviton unveils commercial electric vehicle charging stations; plus announcements and contracts involving Science Applications International Corp., Tantalus, FirstEnergy Nuclear Operating Co. and others.

Achieving Interoperability

The smart grid requires utilities and regulators to assert leadership.

Adopting an interoperable framework for the smart grid isn’t just a question of technology standardization. It’s also about navigating the legal, regulatory, and business factors that affect technology implementation. Making the smart grid work will require utilities and regulators to assert leadership.

Facing Nuclear Fear

Renewing public support after Fukushima Daiichi.

The Fukushima disaster has fallen off the headlines, but fear of nuclear energy remains a potent barrier to new development—as well as continued operation of the current reactor fleet. Building the foundation for a stable industry will require a sustained and strategic approach to restoring and securing the public trust.

Technology for the Masses

The consumer-centric smart grid and its challenge for regulators.

Federal and state regulators play a critical role in the evolution of the smart grid. Lawmakers face a host of questions, from deciding who owns consumer data and how it can be used, to defining a new range of regulated and unregulated utility services and applications. How much regulation will be needed to manage the transformation to a smart grid? And how much regulation will be too much?

Yes, We Have No Negawatts

When you sell demand response back to the grid, how much capacity are you now not buying?

When customers sell demand response into a regional capacity market (such as PJM’s Reliability Pricing Model, known as the RPM), how much credit should they earn for agreeing to curtail demand and alleviating stress on the grid — that is, for reducing the market’s need for generating capability and capacity reserve margin? And further, should the amount of credit depend on whether the customer works with market aggregators, known both as CSPs (“Curtailment Service Providers”) or ARCs (“Aggregators of Retail Customers”)? One view would pay customers for the full extent of their curtailment of demand — known as its “Guaranteed Load Drop” (GLD). The other would limit capacity credit to the customer’s prior load history — “Peak Load Contribution,” or PLC. The answer may well dictate whether regulators continue to treat “energy” and “capacity” as two distinct concepts.

Twist and Sulk

A fearful economy cries for industry leadership.

Many utilities have trimmed their capital spending in the face of economic weakness and regulatory uncertainty. At the same time, strong energy sales have boosted cash flow and profits. Backed by regulated returns and clear resource plans, the industry should step up infrastructure investments. Are we ready to lead America out of economic malaise?