Key Takeaways: The Environmental Protection Agency’s proposal to reduce methane emissions from the oil and gas sector would impose millions of dollars in annualized regulatory burdens despite substantial methane reductions driven by current market incentives The proposed regulations would add to the existing burden on oil and gas companies, which are currently suffering from low…...
Key Takeaways: Power generators will benefit from higher clearing prices in PJM’s 2018/2019 capacity market auction while facing higher penalties in case of non-performance Share of natural gas will remain significant through either new generation or uprates to existing generation Demand response, energy efficiency and renewables potentially have a larger role in subsequent auctions and…...
Key Takeaways: Light tight oil production from unconventional resources has prompted industry to seek export avenues Approval of U.S.-Mexico crude oil swaps provides an additional market for light crude and increases its value given the current limitations in U.S. refinery capability Oil exchange transactions will potentially enhance refinery utilization in the United States and Mexico…...
Key Takeaways: Proposed ratemaking and utility model reforms under the Reforming the Energy Vision (REV) seek to align the earning opportunities of utilities with customer value by incentivizing near-term activities that support full-scale markets A shift from traditional regulatory incentives to market-based earnings would align utility profits with market activities The utility industry will increasingly…...
Key Takeaways: The final Clean Power Plan relies on switching to natural gas and renewable energy generation to meet compliance obligations States have multiple options and broad discretion to meet compliance obligations through generation from nuclear and renewables, including wind, solar, hydro, and biomass New and incremental nuclear generation will be valued for both mass‐based…...
Key Takeaways: The Energy Policy Modernization Act of 2015 contains comprehensive reforms with impacts to gas, electric, and renewables, and it is likely to pass after the August recess The bill would require the Department of Energy (DOE) to issue final decisions on applications to export natural gas to countries that do not have a…...
Key Takeaways: Mexico’s July 15 opening Round One close-to-shore oil and gas auction fell short of expectations with only 2 of 14 blocks auctioned and a number of major international players sitting out Subsequent Round One auctions for deepwater oil fields will attract more interest from major players, but Mexico will be forced to revisit…...
Key Takeaways: BP agreed to settle all federal, state and local claims for $18.7 billion, with payments to be spread over 18 years The agreement increases BP’s financial certainty, but its reduced cashflow could lead the company to become a takeover target in the current low oil price environment New draft regulations would establish design…...
Key Takeaways: The Mercury and Air Toxics (MATS) rule represented one of the most significant air pollution regulations in U.S. history when it was announced in 2011 The Supreme Court rejected the rule, ruling that the EPA should have considered costs initially when assessing whether the rule was “appropriate and necessary” The specific nature of…...
Key Takeaways: The Reforming the Energy Vision (REV) initiative seeks a fundamental restructuring of New York’s centralized utility model in response to technology advancements and customer trends that favor decentralized power generation The 2015 New York State Energy Plan provides a roadmap to implement the REV strategy through increased renewable generation, energy efficiency, and emissions…...
Key Takeaways: The 2013 Climate Action Plan called for new standards to advance fuel economy and emissions reductions in the transportation sector Proposed Phase 2 standards for medium- and heavy-duty vehicles aim to achieve 24 percent improvement in fuel efficiency by 2027 The new standards will spur advancements in trucking technology, resulting in substantial costs…...
Key Takeaways: PJM’s forced generation capacity outages in the 2013/2014 winter, along with long-term distributed generation trend, prompted PJM to propose capacity market reforms to ensure system reliability After requesting additional information in April, FERC approved PJM’s approval, allowing for inclusion in August Forward Capacity Auction Capacity Performance will impose stringent operational requirements and non-performance…...