Distributed generation

Looking Beyond Transmission

FERC Order 1000 and the case for alternative solutions.

How FERC Order 1000 gives short shrift to NTAs (non-transmission alternatives) in regional system planning—while consumers pay the price.

The Law of Unintended Consequences

The transition to distributed generation calls for a new regulatory model.

With the best of intentions, policymakers have encouraged the proliferation of distributed generation (DG) in various forms. Now, however, the trend toward DG is accelerating more rapidly than traditional utility ratemaking and business models are capable of managing. Failure to rationalize the regulatory framework will bring serious and costly disruption.

Scratching the Surface

A 2013 retrospective on ‘Saving Gigabucks with Negawatts’ (1985)

The basic conclusion of “Saving Gigabucks with Negawatts”—that big thermal plants are obsolete—has proven true, as has its call for flexibility and strategic risk management. But the big issues now are no longer about marginal costs; they’re about the very nature of the electricity enterprise.

SCE and GE to Upgrade UC-Irvine Campus Grid

Southern California Edison (SCE) and GE are collaborating to put the smart grid to work by upgrading and modernizing the utility’s infrastructure. The project will include electric-distribution infrastructure, substations, residential homes, cyber security systems, battery energy storage, and EV charging stations at the University of California-Irvine, and other products that affect the reliability of a modernized grid. Funded by the American Recovery and Reinvestment Act, the demonstration project will launch on June 30, 2013.

California Orders SCE to Procure Energy Storage

The California Public Utilities Commission (CPUC) unanimously approved a decision ordering Southern California Edison (SCE) to procure between 1,400 and 1,800 MW of energy capacity in the Los Angeles basin to meet long-term local requirements by 2021. Of this amount, at least 50 MW is required by the CPUC to be procured by SCE from energy storage resources, as well as up to an additional total of 600 MW of capacity required to be procured from preferred resources – including energy storage. “Preferred resources” also include energy efficiency, demand respon

Demand Growth and the New Normal

Five forces are putting the squeeze on electricity consumption.

It’s tempting to attribute the recent slowdown in electricity demand growth entirely to the Great Recession, but consumption growth rates have been declining for at least 50 years. The new normal rate of demand growth likely will be about half of its historic value, with demand rising by less than 1 percent per year. This market plateau calls for a new utility strategy.

CEO Forum: Facing the Future

Three CEOs, three business models, one shared outlook.

Cheap gas, regulatory uncertainties, and a technology revolution are re-making the U.S. utility industry. Top executives at three very different companies—CMS, NRG, and the Midwest ISO—share their outlook on the industry’s transformative changes.

Cali Gets it Right

Not your father’s feed-in tariff.

The industry has struggled to craft a feed-in-tariff (FiT) structure that works for solar generators and utility customers, with mixed success. But now, the California Public Utility Commission might have found an approach that other states can replicate. CPUC’s FiT mechanism recognizes the value proposition of solar energy, and uses market forces to drive economic improvements, especially for distributed solar projects.