The models and motives behind tomorrow’s transmission expansion.
Major transmission projects based on two distinct models are showing signs of life. What can these projects teach us about future transmission investment?
FERC says it won’t ‘change’ the native-load preference, but don’t bet on it.
When FERC opened wholesale power markets to competition a decade ago in Order No. 888, it codified a system for awarding grid access known as the pro forma Open-Access Transmission Tariff (OATT), founded on physical rights, and on the fiction that electrons travel along a “contract path.” Should the commission “tinker” with the OATT, making only surgical changes to make it current? Or, do events instead warrant a complete overhaul?
The bias in RTO markets, and how FERC might fix it.
RTO practice creates less risk and uncertainty over the nominal short-term wholesale price of power, but more risk and uncertainty over the long-term cost of transmission. That spells trouble for the coal-fired plant, sited far off at the mine mouth, needing long-haul transmission over a long-enough term to pay back the capital costs.
FERC risks going overboard in easing penalties for generation imbalances.
What good is a penalty that does nothing to deter the crime? For wind turbines, generation imbalances are caused primarily by variations in weather. Even if these imbalances are indeed a bad thing, no $100 penalty will make them go away.
Commission Watch
IOUs, RTOs duke it out over standardization.
Have regional transmission operators (RTOs) and independent system operators (ISOs) asked for excessive levels of credit from customers, to the extent that the burdensome requirements foreclose full market participation by competitive entities? The Federal Energy Regulatory Commission (FERC) must face that difficult question as it investigates whether to institute a rulemaking on credit-related issues for service provided by ISOs, RTOs, and transmission providers.
Commission Watch
Assimilating the best of the regulated-utility and merchant models.
Vertically integrated utilities (VIUs) have served us well and do not need to be dismantled in the name of competition.
FERC's attempt to standardize markets have some state regulators up in arms.
The fight over standard market design (SMD) looms large as regulators face the coming year. Passions are heightened on the subject-and everyone has an opinion.
In these pages, takes SMD and other questions right to the top policymakers in six states-Alabama, California, Massachusetts, Michigan, New York, and Texas-for a snapshot of what the thinking is on hot topics. And of course we included the man of the hour, FERC's chairman Pat Wood.
Why power plants should pay for grid upgrades.
Do we make all generators equal-using affirmative action to give rights to merchants that are "comparable" to utility-owned plants?
Or, do we let the locational price signals shine through-trusting all plant developers, whether regulated or not, to act in self-interest?
On the virtues and vices of ICAP, ACAP, FTRs, hubs, flowgates, DAMs, and gaming.