Fate of Conservation Mandates
Many states allow private opt-outs, but Florida bucks the trend.
Should regulators allow customers opt-out, on the theory they know best? Or should all customers be made to participate?
Wal-Mart
$9 Billion at Risk
If PJM markets should lose demand response as a capacity resource.
The AEMA sees the self-help DR revolution as a key to America’s recent industrial renaissance: “If demand response is removed from wholesale markets,” the group says, then “the electric grid is back to the rotary phone.”
Embracing Disruption
Developing a leadership role for utilities in alternative technologies.
Faced with aging assets, rising operating costs, growing regulatory risks, and flat demand growth, utilities are challenged to remain competitive in an evolving energy market. The answer might be for utilities to establish a leadership position and pursue a more flexible mission.
Investor Sequester
State complaints over FERC-granted equity returns could dry up funding for transmission expansion.
Perhaps sensing the weight of evidence allayed against them, transmission owners have thrown caution to the wind by openly and admittedly submitting an ROE analysis that doesn’t comport with FERC precedent.
Big Data
The buzzword of the day is ‘analytics.’ But what does it mean?
As utilities seek to extract value from their technology assets, smart grid and metering data is becoming a gold mine for insights about how to improve service and save money. Fortnightly’s Alyssa Danigelis speaks with experts in the growing field of data analytics, to learn how big data might reshape the utility landscape.
People (July 2011)
Xcel Energy names new president and COO; Pacific Gas and Electric adds new senior v.p. and chief information officer; NorthWestern Energy appoints new members to executive management team; plus senior staff changes at Constellation Energy, Alliant Energy, GDF SUEZ, and others.
Tipping Point
Industry giants start the EV revolution.
Reports of the electric car’s death are greatly exaggerated. Technology, economics and politics are driving a new start for electric vehicles; already dozens of EV models are heading for U.S. showrooms. Electricity won’t replace gasoline overnight, but utilities are planning today for tomorrow’s transportation load.
Negawatt Pricing
Economists take sides in the battle for DR’s soul.
Back when the U.S. economy and power consumption still were bubbling, PJM reported in August 2006 that customer curtailments during a week-long August heat wave had generated more than $650 million in market-wide energy savings—all at a mere $5 million cost, as measured in direct payments made to the demand response (DR) providers, set according to wholesale power prices prevailing at the time. Where else but the lottery can you get an instant payoff of 130-1?
RTOs and the Public Interest
Defining the mission when the consumer plays second-fiddle to the needs of the market.
Six months back, when ISO New England was mulling over various reforms that FERC had mandated last fall in Order 719 for the nation’s six regional transmission organizations and independent system operators (RTOs and ISOs are interchangeable terms in this column), the ISO refused point blank to include in its mission statement a proposal by stakeholders that it should operate the bulk power system at the “lowest reasonable cost.”
The High Cost of "Free" Capacity
Fickle behavior by LSEs threatens to destabilize organized markets.
Dodging capacity payments might become an art form among load-serving entities and large electric consumers, as evidenced by Duquesne’s plan to exit PJM, as well as alternative market-designs proposed by large users. But such behaviors might only serve to disrupt organized markets and cause a return to full regulation.