States and utilities across the U.S. are expanding electric vehicle (EV) charging infrastructure to overcome barriers to transportation electrification. The demand for fast charging in states with zero-emission vehicle goals, such as California, New York, and New Jersey, have heightened the need for reliable access to a wider network of stations.
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.
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.
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.
Alternative ratemaking plans and innovative rate design proposals continue to emerge as utilities adapt to policy and technology changes driven by decarbonization efforts and distributed energy growth. With growing state mandates to increase renewable energy generation, regulators are devising performance metrics and incentives to encourage utility innovation in achieving policy goals.
The offshore wind industry continues to progress in the U.S. with East Coast states proceeding with new solicitations to procure capacity to meet their ambitious goals. New York and New Jersey are seeking to add nearly five gigawatts alongside offshore port infrastructure. Massachusetts is considering a bundled solicitation for generation and transmission in its next round of procurement. The industry’s growth has prompted federal regulators to examine whether existing frameworks in regional transmission organizations can accommodate offshore wind integration.
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.
The Federal Energy Regulatory Commission has revised the regulations for implementing a 1978 federal law, which requires electric utilities to purchase power from small power producers. The reforms, intended to reflect changes in the energy markets, mark the first major overhaul to utility power procurement rules under the law, which has spurred the growth of small renewable generators.
In a major victory for the energy storage industry, a federal court affirmed that battery installations connected to the distribution grid must have the opportunity to access wholesale power markets. The move comes as federal regulators are examining the growing interest in hybrid resources, with battery technology seen as an important tool in integrating other resources to the grid. The affirmation bodes well for expanding wholesale market access to distributed energy resources.
A series of setbacks for high-profile oil and gas pipeline projects in the U.S. reveal the difficult climate for midstream projects in the face of growing legal challenges, changing economics, and states’ push to reduce fossil fuels as they embrace clean energy.
Policy support for electric vehicles (EVs) continues to grow across U.S. states as transportation electrification is a primary component of regulators’ strategies to meet clean energy and emissions reduction targets. Recent initiatives range from California’s electric truck mandate to Nevada’s vehicle emission standards to New Jersey’s EV ecosystem proposal.
As states continue to reexamine net metering programs in the evolving distributed solar landscape, the industry faces a new challenge: a petition asking federal regulators to exercise jurisdiction over these state-administered programs that compensate behind-the-meter generation for grid-exported energy.