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Fortnightly Magazine - February 2010

Changing the Game

Why did Michigan cap competition?

The sweeping regulatory reform implemented in Michigan over the past year is often couched as a response to the economic crisis. Decoupling rates from utility profits, the reasoning goes, will remove disincentives to efficiency. Reducing the subsidies that commercial customers have long shouldered will ease their financial burdens. New renewable portfolio standards and wind generation initiatives will create green jobs and much-needed infrastructure.

Byline: 

Steven Andersen

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Outsmarting the Grid

A trio of eager tech startups confronts an industry intent on preserving the status quo.

In light of all the excitement created by smart-grid regulatory initiatives and stimulus funding, three clever tech startups have come forward with proposals for novel grid projects. In California, Western Grid Development proposes to install energy storage devices ranging in size from 10 to 50 MW at various discrete and strategic locations in PG&E’s service territory where the California ISO has identified reliability problems. Second, a company called Primary Power proposes to deploy a total of four advanced, 500-MVAR static VAR compensators (SVC) at three separate locations within the PJM footprint. Third, in Clovis, N.M., Tres Amigas plans to allow power producers to move market-relevant quantities of electric power and energy between and among the nation’s three asynchronous transmission grids: ERCOT and the Eastern and Western Interconnections.

Byline: 

Bruce W. Radford

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Tomorrow's T&D

The most economical energy savings might be found in grid efficiency.

Power delivery efficiency gains constitute a valuable utility asset that can offset or defer new generation and T&D investments. Enabling technologies, utility demonstration projects and supporting regulatory frameworks are needed to validate potential savings.

Byline: 

Karen Forsten

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Smart Grid Consensus

Workable standards require utility input.

The IEEE P2030 Work Group is developing standards to encourage seamless deployment, integration and operation of energy, information and communication technologies across the smart grid. Utility input and engagement is needed to produce workable standards.

Byline: 

Dick DeBlasio

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Engaging Customers

Look to other industries for lessons on marketing services.

To get the most from smart-grid investments, utilities need to target customers most likely to participate in smart-grid programs. The new business case requires a new marketing strategy—and a new level of regulatory scrutiny.

Byline: 

Rich Huntley

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Smart-Grid Roadblocks

Strategies for surviving the industry’s transition.

To realize the full potential of smart-grid benefits, utilities must undergo significant changes. They must learn to integrate information and operations differently, demonstrate adaptability and modify cultural tendencies.

Byline: 

Robert Spencer and Bernie Bujnowski

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OMG Opportunity?

Electrifying the Android generation.

Those who don’t embrace new technologies will get left behind when the world changes around them. This is true across generations and across industries. At the same time, however, the telecom revolution offers a cautionary lesson about what motivates consumers and how it translates into business opportunities.

Byline: 

Michael T. Burr, Editor-in-Chief

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People (February 2010)

Iberdrola USA announced that Kevin Walker joined the company as chief operating officer. Mark Lynch is named president of subsidiaries New York State Electric & Gas and Rochester Gas and Electric. Alliant Energy promoted Patricia Kampling to executive v.p., CFO and treasurer. John Larson is promoted to senior v.p.-generation, with more responsibilities involving generation-related duties. And more...
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The Coming Conflict

Predicting discord in power plant property tax assessments.

At a time when many states and municipalities are facing budget deficits of historic proportions, many power generators are struggling against declining demand, the lowest electricity prices in many years, and looming carbon legislation. As a result, tax authorities might be seeking to raise property tax receipts at the exact same time that many generators are looking to lower their assessments. Conflict appears to be on the horizon, but where will it emerge? An examination of state budgets, as well as the expected changes in generator gross margins, reveals how tax collectors and taxpayers are most likely to respond.

Byline: 

Antonio R. Paez, et al.

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