Transmission

The case backlog of unprocessed electric reliability violations is growing out of control, threatening to “swamp” the industry — a sign, perhaps, that when Congress and FERC modernized the electric reliability regime to serve a more market-based industry structure, and for the first time gave enforcement authority to North American Reliability Corp. (NERC) as the nation’s official electric reliability czar, no one gave much thought, apparently, as to whether NERC’s very idea of what constitutes reliability might have needed modernizing as well.

Market rules could evolve to compensate gas suppliers for pressurizing pipelines when needed on short notice. Enhanced ancillary services will require innovative strategies using line pack in interstate pipelines and stepped up communication among gas and electric market participants to preserve reliability objectives in gas and electric markets.

Lockheed Martin teams with Tendril; Pattern Energy 101 MW wind plant starts operating; Alstom to supply steam equipment to GWF plant; Siemens wins government efficiency contract; GE Jenbacher introduces high-efficiency gas engine; OpenADR Alliance forms; Better Place gets into San Francisco taxis; EnerNOC enters TransAmerica Pyramid; and more.

The California ISO is going its own way with its proposal for transmission planning, virtually ignoring FERC’s proposed rules on transmission planning and cost allocation. California wants to bring method to the madness of developing transmission projects, and its approach has raised hackles in the industry. The dispute defines the battle over America’s most attractive market for rate-regulated investment.

In some states, transmission projects have slowed to a halt as regulators attempt to substitute their own need determinations for those of RTOs. The federal framework encourages cooperation, but Congress and the courts have given FERC clear authority over interstate transmission systems.

FERC has proposed that wholesale energy markets should subsidize load reductions with full LMP (locational marginal price), without deducting the customers’ retail savings. Such a policy could distort the market, and other solutions might achieve the same objectives more efficiently.

Customer backlash over dynamic pricing and the smart-grid caught the industry unprepared. CIOs and top customer specialists share their strategies for engagement and attaining consumer satisfaction.

Now that some new major transactions have emerged, and financial recovery appears slowly moving forward, utility mergers are beginning to appear likely again. Although regulatory hurdles still impede new transactions, some changes at the federal level are reducing concerns about market power and competition. Plus, changing market conditions and new compliance requirements are strengthening the case for scale economics.