Bonneville's Balancing Act

In the Pacific Northwest, you either spill water or spill wind.

The wind power industry has been up in arms ever since the Bonneville Power Administration earlier this year announced its Interim Environmental Redispatch and Negative Pricing Policy. That policy, applicable during periods of high spring runoff and heavy water flow volumes on the Federal Columbia River Power System, calls for BPA to redispatch and curtail access to transmission for wind power generating turbines, and to replace that resource with hydroelectric power generated via BOA hydroelectric dams, in order to avoid having to divert water through dam spillways, which could threaten fish and wildlife by creating excess levels of Total Dissolved Gas (TDG), which can cause Gas Bubble Trauma. Yet the legal issue remains unclear: Does this practice imply discrimination in the provision of transmission service, or is it simply a matter of system balancing and generation dispatch? In fact, the FERC may lack jurisdiction over the dispute, as it pertains to the fulfillment of BPA’s statutory mandates.

Crossing the Threshold

Technology opens customers’ homes to utility services.

Advanced metering infrastructure and intelligent appliances are opening the door to a new market for utility services. But in-home services are a completely different ball game. Going beyond the meter will require utilities to transform the way they engage and serve customers.

Transactions (September 2011)

Gaz Métro buys Central Vermont Public Service; Tortoise Capital Resources acquires interest in Public Service of New Mexico; South Carolina Electric & Gas and Santee Cooper sell capacity, and more.

People (September 2011)

Hawaiian Electric Industries CEO selected to serve on National Infrastructure Advisory Council; PPL Corp. names new president; FirstEnergy Nuclear Operating Company names new director of strategic industry initiatives; USEC Inc. appoints new vice president and chief audit executive; plus senior staff changes at Southern Company, National Rural Telecommunications Cooperative, Nebraska Public Power District, and others.

Cap-Ex Conundrum

Does slow and steady still win the race?

When a capital-intensive industry enters an asset-building cycle, many companies will operate in the red for a few years or more. That’s not necessarily a bad thing, as cap-ex investments represent growth for shareholders. The devil is in the details, however, and companies facing a large slug of environmental compliance investments might produce disappointing returns over the next few years.

Gas Demand Response

As more natural gas is used for power generation, more volatility can be expected in gas markets. Demand response might provide a tool for managing that volatility, but is it technically feasible? And will gas customers accept it?

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.

EVs and the Smart Grid

Better batteries, renewables and more intelligent electricity networks are converging to deliver efficiency and environmental improvements. Electric vehicle (EV) batteries are both the stumbling block and the catalyst for transformative change.

A century or so ago, Thomas Edison’s commercialization of electricity unleashed an unprecedented cascade of change, altering the way humanity worked, lived and interacted. Today, with the convergent rise of the smart grid, renewable energy and electric vehicles (EVs), the power sector is embarking on a second era of transformation that promises to deliver a smarter, greener and more efficient 21st century.

Vendor Neutral

(August 2011) Shaw Group completes 500 MW combined cycle plant; Pattern Energy begins building Spring Valley wind farm; AEP, Duke and TVA team up on interstate transmission line; AEP and MidAmerican contract for Texas transmission projects; Alliant contracts Open Systems International for volt-VAR control system; Alstom buys into AWS Ocean Energy; Siemens acquires shares in PV manufacturer Semprius; Lockheed Martin introduces cyber security system; plus contracts and announcements involving Elster, Itron, Suzlon, Solon, Sensus, Westinghouse Electric, Morgan Lewis and others.

Better Safe Than Compliant

Protecting the smart grid requires a broader strategy.

NERC’s critical infrastructure protection (CIP) standards set a minimum level of security performance—and only for high-voltage transmission systems, not the distribution grid. A compliance-checklist approach to security might lack the adaptability needed to combat evolving threats like the Stuxnet worm. A multi-layered, risk-based approach will provide better protection for the emerging smart grid.