Western Energy Market Cumulative Benefits Exceed $1.1 Billion

The Western Energy Imbalance market generated $119.3 million in savings in the third quarter of this year, the highest quarterly benefits achieved since the market launched in 2014, according to an Oct. 29 press release from the California Independent System Operator Corporation. This brings the cumulative benefits of the real-time energy market to about $1.11...

Visual Primer: FERC Order on PJM Capacity Market Reforms Hinders States’ Plans for Clean Energy Transition

The Federal Energy Regulatory Commission has issued an order on implementing reforms that expand the minimum offer price rule (MOPR) to most state-subsidized resources participating in the regional capacity market administered by PJM Interconnection LLC, which operates across 13 states and the District of Columbia. The ruling has sparked concerns over its potential to harm renewable generation seeking to participate in the capacity market and frustrate state clean energy policies.

New England States Seek Wholesale Power Market Reforms to Support Decarbonization Goals

The governors of five New England states – Connecticut, Maine, Massachusetts, Rhode Island, and Vermont – issued a statement on Oct. 14 calling for reforms to the regional wholesale electricity market structure to support their decarbonization efforts. In light of the states’ commitment to reduce emissions by at least 80 percent below 1990 levels by…...

FERC Capacity Market Order Suggests Default Service Auctions Could Constitute State Subsidy

The Federal Energy Regulatory Commission on Oct. 15 issued an order on PJM Interconnection LLC’s proposed revisions in response to a December 2019 order that directed the grid operator to expand the minimum offer price rule, or MOPR, effectively raising the bid price for state-subsidized resources to participate in the capacity market. Democratic Commissioner Richard…...

Wholesale Price of Solar Power More Than Double The Price Paid to Other Technologies in 2019: EIA

In 2019, the weighted average wholesale price of solar PV-generated electricity was $83 per megawatthour, more than double the price of wind, fossil fuels, or nuclear, according to an Oct. 9 report from the U.S. Energy Information Administration. The higher price is partly driven by geography and timing. Wholesale electricity prices rise when demand within…...

FERC Opens Wholesale Electricity Markets to Distributed Energy Resources

The Federal Energy Regulatory Commission on Sept. 17 approved a long-awaited rule, directing regional grid operators to open their markets to distributed energy resource aggregations. The order removes barriers preventing these resources from competing on a level playing field in the wholesale capacity, energy, and ancillary services markets. The rule requires regional grid operators to…...

EnerKnol’s Visual Primer – Utilities Continue Plans to Accelerate Phase-Out of Coal-Fired Generation

Proposals to accelerate the phase-out of coal-fired generation appear more prominently in long-term resource plans of U.S. electric utilities, reflecting the growing shift to renewable energy. The transition from coal continues to be driven by state clean energy mandates, emissions reduction goals, low natural gas prices, and increased availability of low-cost renewables and storage resources.

EnerKnol’s Visual Primer – Increased Focus on Clean Energy Prompts Wholesale Power Markets to Weigh Carbon Pricing

There is a growing interest in how carbon pricing can be incorporated into wholesale power markets as more jurisdictions embrace policy goals to transition to a lower-carbon power system. The Federal Energy Regulatory Commission has scheduled a technical conference to consider state adoption of mechanisms to price carbon emissions in regions with commission-jurisdictional electricity markets.

EnerKnol’s Visual Primer – Distributed Generation Compensation Evolves to Reflect Benefits With Greater Accuracy

Recently, state regulators have stepped up efforts to value distributed energy resources (DERs) more accurately while looking for ways to better reflect the costs they impose on the grid. Among recent actions, New York adopted a mechanism to move the market towards more cost-reflective rates, while California decided to include avoided transmission costs in the valuation, and Connecticut unveiled a study on quantifying the benefits of these resources.

Over 85 Percent of U.S. Power Plants Switched From Coal to Natural Gas Since 2011: EIA

From 2011 to 2019, the U.S. repurposed 121 coal-fired plants to burn other fuels, of which 103 switched to natural gas, according to an Aug. 5 report from the U.S. Energy Information Administration. The agency attributed the trend to stricter emission standards, low gas prices, and more efficient natural gas turbine technology. Of the 316.8-gigawatts…...

Southwest Power Pool to Implement Policy Changes, Enhance Market Development

The Southwest Power Pool Inc., the regional transmission organization for 14 states in the central U.S., on July 29 announced plans to implement policy changes and improve its market development strategies in the second half of 2020. The announcement follows a suite of approvals from the organization’s board and stakeholder committees. The board approved four…...

EnerKnol’s Visual Primer – Ohio Nuclear Bailout Scandal Stirs Up Questions Over Ratepayer Subsidies for Aging Power Plants

The debate over ratepayer subsidies for struggling nuclear power plants has resurfaced, following a racketeering investigation related to a controversial Ohio law, which created a $1 billion bailout for FirstEnergy Corp. last year. The economic troubles of the embroiled industry come to the fore even as states such as New Jersey and Illinois evaluate plans to opt out of the regional capacity market in response to reforms that expanded the minimum offer price rule to subsidized resources.