Power & Utilities

California Tariff Proposal Opens Wholesale Market to Small Distributed Energy Resources

New policy proposals at both regional and state levels could increase access to wholesale markets for aggregated distributed energy resources (DERs). The California Independent System Operator (CAISO) filed tariff revisions with the Federal Energy Regulatory Commission (FERC) on March 4, 2016, to enable aggregated DER to participate in the ISO’s wholesale markets. DER initiatives in New York, Hawaii, and Texas could also identify optimal solutions to balance renewable energy growth with grid safety and reliability. Access to these markets will be a critical advancement for rooftop solar and solar storage, particularly as DER adoption continues to expand with enhanced technology capabilities, environmental regulations, and fossil-fuel retirements.

Oregon Bill Sets Precedent To Phase Out Coal

Oregon’s SB 1547, signed into law on March 8, 2016, will phase out coal-fired generation from the state’s electricity mix by 2035 and double the state’s Renewable Portfolio Standard (RPS) to 50 percent by 2040. The coal phase-out will require utilities to cease importing coal-fired power to Oregon customers, while the ambitious RPS goal will shape the state’s energy mix, corresponding with renewable generation’s ability to displace fossil fuels.

Washington DC Regulators Propose Additional Requirements For Exelon-Pepco Merger

On February 26, 2016, the Public Service Commission of the District of Columbia (DC PSC) rejected a proposed merger for Exelon Corporation’s acquisition of Pepco Holdings, but proposed alternative terms that would require active participation in renewable energy initiatives and improved cost allocation. The growing complexity of the approval process demonstrates the need for more flexible merger plans that address infrastructure modernization and environmental goals.

FERC’s Revised Critical Infrastructure Protection Demands Active Vigilance

The FERC’s Critical Infrastructure Protection (CIP) Version 5 standards are based on a tiered impact rating methodology, which would bring all cyber assets that could impact BES facilities into the scope of the CIP standards. The CIP Version 5 standards require that responsible entities actively consider the BES security needs beyond mere compliance with minimum standards.

State Commission Findings Influence Ongoing Net Energy Metering Valuation Debate

California’s decision to retain retail rate net metering is in stark contrast to a December 2015 decision in Nevada that changes the compensation for solar providers from retail to much lower wholesale rates and also decreases the credit solar owners receive for net excess generation. Of key interest is whether the controversial decisions – particularly in Nevada – will set precedent for other ratemaking decisions across the nation. Some states have initiated studies or opened dockets to address these issues, and others have effected changes, and critical findings across commissions will influence the outcomes in other states.

U.S. Supreme Court Ruling Heightens Need For Demand-Response Regulatory Coordination

Key Takeaways: The Supreme Court ruling on FERC Order 745 establishes the Federal Energy Regulatory Commission’s (FERC) jurisdiction over demand response (DR) in the wholesale energy market The ruling will ensure that eligible DR resources receive the same compensation as generation resources, facilitating increased DR participation in wholesale energy markets The decision will further the…...

Revisions to MISO Capacity Market Rules Could Lower Illinois Electricity Prices

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,…...

Transmission Investments Critical to Accommodate Changing Resource Mix

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…...

States Seek New Net Metering Models To Address Balance In Distributed Generation

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…...

Reforms To FERC Market-Based Rate Program Streamline Compliance

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…...

ISO-NE Extends Winter Reliability Program Until Pay-For-Performance Program Takes Effect

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…...

California Strengthens Renewable Energy And Energy Efficiency Goals

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…...