Commission

What Happened at Beacon

Election politics almost killed a great idea.

Beacon Power filed bankruptcy last fall, amid a political firestorm sparked by Solyndra’s demise. But should the company have received a bailout, so it could continue operating until FERC’s new pay-for-performance rules take effect?

Vendor Neutral

(April 2012) MidAmerican Energy awarded a contract to Siemens Energy to supply wind turbines for its 407-MW project expansion. American Electric Power began operating the 580-MW Dresden natural gas-fired combined-cycle power plant. Duke Energy and ChinaHuaneng Group signed a three-year agreement expanding their research cooperation to include coal and carbon capture and sequestration technologies. And others...

Keeping Your Kilowatts Private

A survey of state policies on release of customer data.

The advent of smart grid technology has raised new and challenging issues concerning data privacy. Of course, data privacy isn’t a new concern for the energy industry, as utilities have always collected customer data, some of which is common to any business, such as contact and credit information, and some of which is unique to the energy industry, such as usage and demand data.

Nuclear Faceoff

Indian Point and the battle for the nation’s energy future.

State lawmakers are trying to block relicensing of the Indian Point nuclear power plant near New York City, but the owner hopes to keep the plant generating low-cost electricity. The battle over Indian Point raises new legal issues—and represents a microcosm of the struggle for America’s nuclear future.

EV Hype and Hope

Six months after Solyndra's bankruptcy, the resulting controversy is affecting other companies that were hoping to secure loans from the Department of Energy. Lawmakers want to know whether the DOE loan program has stalled out -- and whether reforms are needed to clarify the mission and the risks for taxpayers.

In the past few years, hype over electric vehicles reached a crescendo in the media and in political circles. The good news is that this hype spurred major investments -- both private and public -- toward R&D and commercialization that’s already starting to show results (See “The Hundred-Dollar Race” - left). The bad news, however, is those results haven’t yet translated into dramatically better or cheaper cars in showrooms, leaving first-generation EVs to compete against mature gas-powered cars with much lower sticker prices.

Vendor Neutral

(March 2012) DTE Energy awards contract to URS; Exelon and Constellation reach an agreement with Electricite de France; Dominion and Lockheed Martin enter a joint marketing and development alliance; plus deals involving Nissan North America, CenterPoint Energy Field Services, Honeywell, Silver Spring Networks, and others.

Labor Costs and the Rate Case

Incentives, staffing, and benchmarking in a tight economy.

In several recent utility rate cases, regulators have disallowed portions of utility compensation expenses, on the basis that difficult local economic conditions justify pay cuts. However, when utilities begin squeezing their uniquely qualified technical and management staffs, performance can suffer. Analysis Group authors David W. Sosa and Virginia Perry-Failor review experiences at several companies to show how an evidentiary approach will help utilities avoid disallowances of critical compensation for valued employees.

The Trouble with Freeriders

The debate about freeridership in energy efficiency isn’t wrong, but it is wrongheaded.

In any conservation or efficiency program, some market participants will reap benefits without paying their share of the costs—i.e., the “freerider” problem. Some freeriders are unavoidable and generally not a problem. But as Cadmus Group analysts Hossein Haeri and M. Sami Khawaja explain, avoiding excessive freeridership requires careful program structuring, as well as ongoing measurement to accurately evaluate outcomes.

Killing the Goose

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.

Race to the Bottom

Two Eastern governors make war against markets.

The governors of New Jersey and Maryland have embarked on a crusade that could topple competitive energy markets in their states—and perhaps beyond. Glen R. Thomas, former chairman of the Pennsylvania PUC, challenges policy makers in the two states to stand up for free markets and stop a destructive race to the bottom.