Energy Policy Act of 2005

Life After PUHCA

N.J. BPU enacts new rules to insulate utilities from holding companies.

When Congress repealed the Holding Company Act, it gave states greater authority to regulate utilities. New Jersey picked up the baton and enacted rules to protect ratepayers.

A Voice for Smart-Grid Security

Who will oversee the industry’s cyber standards?

Who will oversee the industry’s cyber standards? Effective security calls for a single organization to set standards that will protect the smart grid. The industry is struggling to reach consensus over authority, scope and funding for its new security apparatus.

Paying for the Green Grid

Subsidies might not be the best solution for interconnecting renewables.

Supporters of renewable energy are seeking to socialize the cost of a new interstate highway system for transporting green power. But utilities and transmission owners will build or finance new transmission systems to serve economic demands. Policy makers shouldn’t pre-ordain the direction of industry progress.

Titans of Transmission

ITC and AEP jockey for the lead in building the grid of tomorrow.

On February 9, a group of the nation’s major grid system operators released a study estimating the nation’s electric industry sector needs to spend some $80 billion—more than 10 times the size of that portion of the Obama stimulus package directed specifically at transmission construction—in order to achieve a 20 percent retail penetration for renewable wind energy in just the Eastern Interconnection.

Transmission Incentive Overhaul

FERC’s ROE incentive adder policy sends the wrong signals.

FERC is offering incentive rates to entice transmission investment. But the authors identify serious flaws in emerging policy regarding return on equity (ROE) incentive adders. Determining whether and when ROE adders are appropriate requires a more deliberative approach.

Defensive Invention

When the U.S. Patent Office published patent application number 11/626,810 in July 2008, few people noticed—at first. Soon, however, the metering-technology community was abuzz, mostly with outrage. If the Patent Office grants the patent and all its claims, other utilities would be legally forbidden from using any of the methods described, without first obtaining a license from the patent holders.

AMI Standards: A Work in Progress

Vendors battle it out while utilities await common communications protocols.

Uncertainties about smart metering goals are hindering efforts to standardize communications protocols and feature sets. While vendors battle over standards, utilities and policy makers are moving forward anyway—despite the potential for setbacks.

Standard-Offer Service: Beauty or Beast?

Is development of retail choice compatible with best-priced standard-offer service for smaller customers? Conflicting policy priorities threaten to distort Maryland’s retail energy markets.

Biofuel Furor

Will power plants get caught in ethanol’s food fight?

The debate over food vs. fuel never has been louder. Using corn to make the biofuel ethanol is perhaps the best known point of argument. Everyone is asking: Should the United States require a certain percentage of U.S. corn crops be turned into fuel in the face of global food shortages and exorbitant food prices? And what are the effects of diverting food croplands into producing fuel?

Utility 2.0

Web technologies are transforming the utility-customer relationship.

Thanks to the Internet, consumers expect 21st century companies to bring a sophisticated online presence. Utilities that leverage the interactive power of Web 2.0 will strengthen their positions in regulatory and competitive arenas.