Power & Utilities
Key Takeaways: The Midcontinent Independent System Operator (MISO) will no longer calculate the reference level for its annual capacity auctions based on opportunity costs of selling capacity into the PJM Interconnection region The Federal Energy Regulatory Commission (FERC) has directed revisions to MISO rules to reflect the counter-flows created by capacity exports to neighboring regions,…...
Key Takeaways: Transmission investments are expected to increase significantly to replace aging infrastructure, maintain reliability, and meet environmental obligations and state renewable energy goals Transmission is critical for connecting high-quality renewables and other lower-carbon resources far from load centers to the grid The Federal Energy Regulatory Commission has issued a decision reducing the base return…...
Key Takeaways: Arizona will investigate the costs and benefits of distributed generation (DG) to address net metering cost-shift issues and ensure a balanced share of grid maintenance costs between DG and non-DG ratepayers Arizona’s decision could set national model for states seeking reasonable net energy metering (NEM) reimbursement as DG penetration increases Reforms to NEM…...
Key Takeaways: The Federal Energy Regulatory Commission’s (FERC) revised Market-Based Rate Program will reduce administrative burden on industry participants and increase certainty for sellers FERC will no longer require market-based rate sellers to file quarterly land acquisition information for new generation sites Market-based rate sellers will not have to report behind-the-meter generation in the indicative…...
Key Takeaways: The New England Independent System Operator will extend its winter reliability program to address reliability challenges created by increased reliance on natural gas-fired generation until its Pay-for-Performance market design takes effect in 2018 Coordination with natural gas pipeline operators is becoming increasingly important for ISOs/RTOs in addressing gas supply constraints Natural gas transportation…...
Key Takeaways: California Senate Bill 350 requires 50% of utility power to come from renewable sources and 50% increase in energy efficiency in existing buildings by 2030 Requirement to halve statewide petroleum use by 2030 was dropped after intense lobbying by the oil and gas sector Implementation will require enhanced transmission, energy storage, and demand…...
Key Takeaways: The Department of Energy’s (DOE) $1B loan guarantee for distributed energy projects addresses market barriers to deploy innovative solar, storage, and flexible demand technologies The loan program aims to aggregate distributed energy projects that would be too small to be financed individually due to high transaction costs Large-scale distributed energy providers and aggregators…...
Key Takeaways: Power generators will benefit from higher clearing prices in PJM’s 2018/2019 capacity market auction while facing higher penalties in case of non-performance Share of natural gas will remain significant through either new generation or uprates to existing generation Demand response, energy efficiency and renewables potentially have a larger role in subsequent auctions and…...
Key Takeaways: Proposed ratemaking and utility model reforms under the Reforming the Energy Vision (REV) seek to align the earning opportunities of utilities with customer value by incentivizing near-term activities that support full-scale markets A shift from traditional regulatory incentives to market-based earnings would align utility profits with market activities The utility industry will increasingly…...
Key Takeaways: The Mercury and Air Toxics (MATS) rule represented one of the most significant air pollution regulations in U.S. history when it was announced in 2011 The Supreme Court rejected the rule, ruling that the EPA should have considered costs initially when assessing whether the rule was “appropriate and necessary” The specific nature of…...
Key Takeaways: The Reforming the Energy Vision (REV) initiative seeks a fundamental restructuring of New York’s centralized utility model in response to technology advancements and customer trends that favor decentralized power generation The 2015 New York State Energy Plan provides a roadmap to implement the REV strategy through increased renewable generation, energy efficiency, and emissions…...
Key Takeaways: The 2013 Climate Action Plan called for new standards to advance fuel economy and emissions reductions in the transportation sector Proposed Phase 2 standards for medium- and heavy-duty vehicles aim to achieve 24 percent improvement in fuel efficiency by 2027 The new standards will spur advancements in trucking technology, resulting in substantial costs…...