California Tariff Proposal Opens Wholesale Market to Small Distributed Energy Resources

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

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

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

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

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

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.

New York Seeks To Redesign Compensation To Keep Nuclear Plants Alive

EnerKnol Research Reports, Nuclear Power, PRODUCTS, Renewables

On February 23, 2016, the New York State Public Service Commission (NY PSC) announced a plan to preserve financially-struggling nuclear power plants, which, if closed, would negatively impact the state’s ability to meet its clean energy and emissions reduction objectives. The plan could set the stage for additional policy changes, since sustained operation of existing nuclear plants requires long-term financial viability facilitated by an effective market design that recognizes the range of nuclear benefits.

FERC’s Revised Critical Infrastructure Protection Demands Active Vigilance

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

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.

Supreme Court Halts Clean Power Plan Over Concerns Of EPA Overreach

Emissions, EnerKnol Research Reports, Environmental Markets, PRODUCTS

The Supreme Court’s unprecedented move to halt the Clean Power Plan is a major setback to a rule that forms the centerpiece of President Obama’s broader plan to address climate change and reflects the Court’s concerns over EPA overreach. State utility regulators now have to carefully decide whether to suspend or pursue compliance planning efforts given uncertainties over the outcome of the judicial review. Climate change, which has traditionally drawn little attention from voters, is likely to become a prominent factor in the 2016 presidential election.

State Commission Findings Influence Ongoing Net Energy Metering Valuation Debate

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

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

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

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…...

California Leak Exposes Risks of Increasing Reliance on Natural Gas

EnerKnol Research Reports, Fossil Fuels, Natural Gas, PRODUCTS

Key Takeaways: The California Department of Conservation (DOC) will issue emergency natural gas storage regulations in response to a persistent leak at the Aliso Canyon Natural Gas Storage Facility in Los Angeles County This incident exposes underground storage risks and regulatory disparity as utilities continue to increase natural gas-fired generation Innovative methane detection technology will…...

Obama Administration Seeks Safeguards for Energy Reforms

Emissions, EnerKnol Research Reports, Environmental Markets, PRODUCTS

Key Takeaways: President Obama emphasized progress his Administration has made in renewable energy growth and climate action in his 2016 State of the Union address Newly proposed reforms to the federal government’s management of oil and coal resources would impose additional costs to reflect environmental impacts The Obama Administration is determined to safeguard climate policy…...

Revisions to MISO Capacity Market Rules Could Lower Illinois Electricity Prices

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

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

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

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…...