Congestion on Trial

PJM and the crisis over FTR underfunding.

PJM’s latest crisis—the underfunding of financial transmission rights that we’ve seen over the last few years—pushes regulators right to the edge. How far do they trust wholesale power markets? Do they accept the idea, proven by a famous economist, that freely traded financial instruments can work just as well—better even—than firm, physical contract rights?

In PJM’s case, we are told, the problem occurs when too much negative congestion shows up in real-time balancing. But if congestion is bad, shouldn’t negative congestion be good?

Transactions (May 2013)

Dominion agreed to buy three merchant power plants from Energy Capital Partners; First Solar acquired the 150 MW Solar Gen 2 project; Dynegy subsidiary Illinois Power Holdings will acquire Ameren Energy Resources and three subsidiaries; and others ...

People (May 2013)

New Opportunities: Ben Fowke, chairman, president and CEO of Xcel Energy, was named to a committee composed of CEOs from the utility and nuclear industries that will receive regular briefings from the FBI, National Security Agency, Department of Energy, and Department of Homeland Security to begin cooperative efforts on cybersecurity issues.

Energy Efficiency's False Hope

Only behavioral change will reduce energy consumption.

Standards and technology don't reduce energy consumption, despite the claims of efficiency zealots. Real energy savings only come through behavioral change.

Old School Microgrid

Resilience depends more on determination than technology.

A brutal storm ripped through southwestern Minnesota in April and snapped 2,000 power poles. Worthington Public Utilities kept the lights on with a seat-of-the-pants microgrid.

Charting the DSM Sales Slump

Demand side management has a growing effect on energy sales. Utilities are applying five methods to account for DSM in sales forecasts. A Brattle Group survey reveals those methods and their characteristics.
Demand side management has a growing effect on energy sales. Utilities are applying five methods to account for DSM in sales forecasts. A Brattle Group survey reveals those methods and their characteristics.

Massachusetts Finds Long-Term Contract Mandate Premature

The Massachusetts Department of Public Utilities found it’s unnecessary at the current time to require electric utilities to enter long-term contracts for power supply to address forecasts of insufficient peak-load requirements in the state. The department said that requiring electric distribution companies to enter into long-term contracts with generators would be proper only if there was convincing evidence that the competitive market has failed and that there are imminent reliability concerns.

Colorado Denies SmartGridCity Cost Recovery

The Colorado Public Utilities Commission (PUC) upheld an initial decision by an administrative law judge (ALJ) issued in January, which had recommended that Xcel Energy subsidiary Public Service Company of Colorado (PSCC) be denied any further rate recovery of SmartGridCity costs. The commission said the utility had been given ample opportunity to prove the prudence of the rising costs of the project but that the company had failed to do so.

Discount Rate Authorized for Returning Default Service Customers

New Hampshire Public Utilities Commission authorized Public Service Company of New Hampshire (PSNH) to institute two different default energy rate schedules, a standard rate for those customers who have never left the utility for a competitive energy supplier and a discounted, albeit “above market,” rate for customers who took service with an alternative provider and then return to the utility’s default service. According to the utility, such pricing flexibility is necessary in order for it to compete effectively against other suppliers.