Lessons from New England on electric-gas market coordination.
ISO New England
Distribution utilities could become an important source of renewable funding.
Distribution utilities are well positioned to provide tax equity for renewable projects, but some state laws prevent it. Tapping the potential will require progressive leadership by utility executives and regulators.
Building a model that works across states and programs.
ISO New England develops the nation’s first multistate long-term forecast of energy-efficiency savings.
Second thoughts on transmission’s golden egg.
The electric utility industry offers up a wealth of ideas on how the Federal Energy Regulatory Commission might reform its policy, adopted under FERC Order 679 in 2006, of granting financial incentives for investments in transmission line projects that ensure reliability or mitigate line congestion so as to reduce the cost of delivered power. Fortnightly’s Bruce W. Radford reports.
Adding up the benefits of infrastructure investments.
Allocating the costs of new transmission investments requires accurately assessing the value of those new lines, and identifying the primary beneficiaries. But formulaic approaches rely too much on the most easily quantified cost savings, and reject benefits that are dispersed across service areas—or that might change over the course of time. Brattle Group analysts J.P. Pfeifenberger and D. Hou explain that comprehensive valuation produces a more accurate picture.
Putting market economics ahead of reliability, the Federal Energy Regulatory Commission (FERC) has told regional transmission organizations (RTOs) and other grid system operators (ISOs) to rethink the prices they pay for the ancillary service known as frequency “regulation.”
In short, FERC wants all power plants to do what they do best — recognizing that some may be well adapted to providing regulation service, but others perhaps not.
In general, demand response refers to the ability of consumers to respond to a supply shortage by curtailing demand, thereby improving economic efficiency. Since the California energy crisis, demand response has been widely used in electricity markets throughout the United States and Canada.1 Recent developments in the natural gas sector suggest that the time may have come to also introduce demand response in that sector.
But transmission planning, as we know it, may never be the same.
The recent landmark ruling on transmission planning cost allocation, known as “Order 1000,” and issued by the U.S. Federal Energy Regulatory Commission in late July 2011, could well produce an unintended side effect — the formation of regional compacts among states to identify needs and plan for development of new power plant projects.
(August 2011) Economic consultant Michael Rosenzweig challenges Constantine Gonatas’s proposal for ensuring FERC’s demand response rulemaking achieves its objectives. Also, Juliet Shavit takes issue with Contributing Editor Steven Andersen’s characterization of utility customers as “crazy.”