Declining costs, evolving technology, and changing grid needs are accelerating the pace of deployment of battery storage projects. Regulators seek to spur investments to leverage the multiple benefits of batteries, including the ability to add large amounts of intermittent renewable generation to the system, and to defer or eliminate the need to build new transmission…...
Utilities are stepping up efforts to boost retail power and gas rates to offset tepid growth in electric demand and weak prices in the wholesale markets. Utilities are also overhauling how charges are set by launching non-traditional rate programs, including revenue decoupling and performance-based rates. Keep on top of the latest utility rate programs by…...
As the pandemic continues to unfold, utility regulators across the U.S. are focusing on the core issues of providing relief for the hardest-hit customers and reviving the economy with the help of utility initiatives. To date, several states have extended disconnection moratoriums and implemented customer relief programs, while others are examining how additional spending by the utilities could provide new jobs while minimizing customer bill impacts in the future.
A growing number of states across the U.S. are amping up energy storage to complement the drive towards clean energy as batteries can help integrate diverse generation technologies and stabilize the grid. State commitments to procure battery storage capacity now top 11 gigawatts, following targets established by Nevada and Virginia this year.
More states and utilities are exploring microgrids as part of their resiliency strategies driven by the growing demand to bolster the reliability of the power system in the face of extreme weather events, such as storms and wildfires.
Utility commissions in almost a dozen jurisdictions have canceled hearings and revised procedural schedules in several pending electric and natural gas rate cases. A few utilities have committed to delay the implementation of rates, in order to avoid burdening customers amid the difficult circumstances created by the COVID-19 pandemic.
The New England grid operator has proposed a long-term, market-based solution to the region’s energy security problem as the power generation fleet moves towards a mix of energy-limited resources. With the retirement of resources with stored fuel, the system is increasingly reliant on facilities that run on just-in-time natural gas deliveries and weather-dependent wind and solar energy. To address the ensuing challenge, the grid operator proposes to improve the current market structure by creating incentives for the region’s fleet to invest in the energy supply arrangements and technologies on which the region depends.
Amid the economic downturn ensuing from the pandemic, state utility regulators are faced with the challenging task of protecting customers from power shutoffs while also considering costs incurred by utilities. A growing number of state commissions are directing utilities to establish a regulatory asset account to capture and track COVID-19-related incremental costs.
The volatile situation created by the COVID-19 spread has prompted state utility commissions to respond with new directives and guidance on a number of proceedings. Regulators have responded with various measures, including suspending service disconnections, transitioning to virtual meetings, and delaying rate cases.
Virginia has become the first state in the South to begin a clean energy transition with the passage of a sweeping energy bill that sets the state on the path to carbon-free power by 2050. The law replaces the voluntary renewable energy portfolio program with a mandatory standard, and paves the way for an enormous expansion of wind and solar power, energy storage, and energy efficiency.
A growing number of cities across the U.S. are moving toward electrifying their building sectors and banning natural gas use. The Northern California city of Berkeley passed the first such ban, initiating a wave of similar ordinances as a means to reduce carbon emissions. The movement prompted Arizona to enact the first state law preventing local bans on natural gas, and several other states to introduce bills with similar language.
Utility regulators are expanding resource planning requirements as a growing number of utilities are proposing early closure of coal plants, in addition to investing more in solar, wind and battery storage. Long-term resource plans are evolving to consider a host of emerging issues ranging from equity assessments and avoided costs, to reflecting the cost of carbon, as utilities seek to balance flexibility and reliability.
