FERC

Secrecy is the norm in electric power bidding. This lack of transparency impedes an efficient electricity market. Bringing daylight to power markets would reduce prices and save consumers money.

Congress hasn’t amended the Federal Power Act in any way that would change the status quo, and a bright line still separates the distribution business from the federally regulated bulk-power system. Pending legislation, however, might change that.

As energy issues take center stage in the policy debate, state attorneys general increasingly are using their political influence and legal authority to affect a wide range of areas—from greenhouse-gas emissions to siting and development of infrastructure projects. Working constructively with state AGs can help utilities avoid becoming targets of investigation and litigation.

When Pacific Gas & Electric broke the news six weeks ago that it had signed a deal with Solaren Corp. to buy 200 MW of solar energy from satellites launched into geosynchronous orbit, the idea seemed almost laughable. Solaren’s plan is to catch unobstructed sunlight falling on arrays of photovoltaic solar panels deployed in the crystalline void of outer space, and then to convert the generated electricity into radio-frequency energy for transmission to Solaren’s ground-based receiving station outside Fresno. Welcome to the new renewable reality.

With the introduction of retail competition in the electricity industry, regulatory authorities in many jurisdictions are now overseeing the purchase of electricity at wholesale by electric utilities for customers that do not otherwise obtain supply from independent retailers. There are two primary ways in which, under the supervision of regulatory authorities, electric utilities purchase electricity for these non-shopping customers: through simultaneous descending clock auctions or through fairly common sealed-bid auctions, commonly known as Requests for Proposals.

The American Recovery and Restructuring Act (ARRA, or the Recovery Act), signed into law in February, provides $4.5 billion in stimulus funding for programs aimed at “electricity delivery and energy reliability activities to modernize the electric grid.” This funding commitment, and swirl of industry and lawmaker activities since, has helped lift the smart-grid agenda out of the shadows of utility engineering departments and into the public’s broader view.

AMI’s data explosion will require back-office changes for CIS/billing.

New federal policies have opened the gates to utility investments in renewable generating plants. Some states, however, still make it difficult for utilities to put such assets into the rate base. Executives at Duke, OG&E, PG&E and Xcel Energy discuss challenges and opportunities affecting their renewable investment strategies.

Utilities are leaving no stone unturned in their search for ways to save electricity. Federal incentives will support new technologies and projects, but can those incentives overcome structural barriers that stand in the way of major efficiency improvements? editors explore challenges and opportunities arising from the new efficiency mandate.

Supporters of renewable energy are seeking to socialize the cost of a new interstate highway system for transporting green power. But utilities and transmission owners will build or finance new transmission systems to serve economic demands. Policy makers shouldn’t pre-ordain the direction of industry progress.