Power & Utilities
States are exploring ways to utilize the multiple benefits that energy storage provides to the grid, from enabling the increased penetration of renewable resources and reducing dependence on emitting generation, to bolstering reliability.
Clean energy mandates and goals adopted by U.S. states and utilities are driving efforts to plan and build out the transmission infrastructure needed to accommodate the exponential growth of wind and solar to facilitate power sector decarbonization.
Legislation enacted across U.S. states so far in 2021 reflects the evolving discussion around a wide range of policies ranging from accelerating the transition to cleaner energy and strengthening emissions reduction targets, to enhancing grid resilience, and preempting municipal natural gas bans. Delaware enacted legislation to increase the state’s renewable portfolio standard (RPS) for regulated…...
Performance-based regulation (PBR) continues to evolve in the face of transformational changes brought about by new technologies, changing customer preferences, and state policy mandates. Recent actions range from Hawaii’s approval of performance incentive mechanisms to accelerate clean energy goals, the District of Columbia’s ratemaking pilot that contains climate goals-driven tracking mechanisms, and Washington’s law to move towards PBR to help utilities adapt to rapidly changing societal expectations and public policy objectives.
The long-awaited capacity market auction of PJM Interconnection LLC for the 2022-2023 delivery year cleared at $50 per megawatt-day, which is 64 percent lower than the 2018 auction and the lowest in almost a decade. This is the first auction to be conducted by the nation’s largest grid operator under the expanded minimum offer price rule (MOPR) resulting from a 2019 order by the Federal Energy Regulatory Commission.
Grid modernization endeavors are progressing at a fast pace as states explore solutions to advance clean energy and climate goals while effectively meeting customer needs. Modernizing the grid is necessary to support the integration of additional levels of renewables, leverage customer-sited resources to participate in grid operations, and empower consumers with more choices for electric service.
A recent ransomware attack that shut down the Colonial Pipeline system, which supplies nearly half the fuel consumed on the East Coast, has elevated concerns about the use of cyberattacks to paralyze key infrastructure. The incident is the latest example of intrusions exposing U.S. cyber vulnerabilities, calling for stronger measures to secure the nation’s energy pipelines and critical infrastructure against increasingly sophisticated and malicious attacks.
Washington is moving expeditiously to implement rules and strategies as the state seeks to achieve carbon-free electricity by 2045 and reduce emissions to net zero by 2050. The state is advancing multiple measures ranging from resource planning rules to establishing a carbon cap-and-trade program, and strengthening auto-emission standards.
Texas state lawmakers are exploring solutions to address the issues faced during and after the mid-February winter storm event that caused widespread outages across the state. California, which faced a similar predicament due to an unprecedented heatwave in August 2020, albeit smaller in scale and severity, has advanced measures to ensure reliability this summer.
Utility resource planning continues to evolve as state regulators take a holistic approach to evaluate the energy delivery process and strive to provide more transparency in the planning process. Carbon reduction is becoming a key component of integrated resource plans (IRPs) amid the influx of distributed energy resources and new renewable generation under various state programs. IRPs provide an evaluation of utilities’ future electricity needs and potential means to meet the requirements.
The fallout from severe arctic weather during February has prompted regulators from Texas to Montana to examine utility infrastructure, preparedness and response, and impacts to customers. Texas, which experienced the worst power outages resulting from Winter Storm Uri, has issued multiple orders and initiated investigations to address the impacts of the grid event. Following announcements of an inquiry into the grid event and the possibility of market violations, the Federal Energy Regulatory Commission (FERC) is now set to examine the impacts of climate change and extreme weather events on electric system reliability. Regulators across several U.S. states are investigating the after-effects of the storm to mitigate bill impacts to customers while exploring cost-recovery for utilities which faced extraordinary expenses as natural gas prices soared to unprecedented levels.
Transportation electrification is gaining momentum across the U.S. as states and utilities continue to implement measures to boost electric vehicle (EV) adoption and expand charging infrastructure. Recent actions range from California’s vehicle-grid integration strategy to Pennsylvania’s rulemaking proposal for a light-duty EV requirement, and a utility-coalition plan for a seamless charging network.