The marginal external benefits provided by demand response prove more than sufficient to overcome concerns that paying LMP was too expensive.
Author Bio:
Dr. Charles Cicchetti is co-founder of Pacific Economics Group and formerly was the Miller Chair in Government, Business and the Economy at the University of Southern California. Previously, he served with Arthur Andersen Economic Consulting (managing director), Putnam, Hayes & Bartlett (co-chairman), National Economic Research Associates (NERA, as senior vice president), and the Wisconsin Public Service Commission (as chairman).
The Order will extend application of load-reducing technologies and marketing to a new class of services.
Byline:
Ahmad Faruqui and Eric Shultz
It’s tempting to attribute the recent slowdown in electricity demand growth entirely to the Great Recession, but consumption growth rates have been declining for at least 50 years. The new normal rate of demand growth likely will be about half of its historic value, with demand rising by less than 1 percent per year. This market plateau calls for a new utility strategy.
Author Bio:
Ahmad Faruqui is a principal at The Brattle Group, and Eric Shultz is a research analyst. This article was revised from Faruqui’s presentation at the Goldman Sachs Power & Utility Conference on Aug. 14, 2012. The authors acknowledge research assistance by Jennifer Palmer.
Five forces are putting the squeeze on electricity consumption.
A no-holds-barred interview with the electric industry’s chief architect of wholesale electric market design.
Author Bio:
John A. Bewick is Fortnightly’s contributing editor and formerly was secretary for environmental affairs for the Commonwealth of Massachusetts. He holds advanced degrees in nuclear science and business management.
A candid commentary on current topics in electric restructuring.
Byline:
Bruce W. Radford and Michael T. Burr
When Revolutionary War veteran Daniel Shays led an attack on the federal Springfield Armory in January 1787—the spark that ignited the federalist movement—he scarcely could’ve guessed that now, 225 years later, his spiritual descendants would still be fighting that very same battle.
The jurisdictional battle rages on, with FERC and EPA squaring off against the states.
Byline:
J.P. Pfeifenberger, J.W. Chang, and D. Hou
With no single entity in charge, transmission planning has plagued projects that span multiple regions. A new framework offers a solution.
Author Bio:
Johannes Pfeifenberger and Judy Chang are principals of The Brattle Group. Delphine Hou is a former Brattle associate. This article is based on work undertaken for the Southwest Power Pool’s Regional State Committee and the associated report, Seams Cost Allocation: A Flexible Framework to Support Interregional Transmission Planning, April 2012, available at www.spp.org and www.brattle.com. The authors acknowledge sole responsibility for the content of this article.
Interregional planning under FERC Order 1000
High prices have turned Michigan against regional planning -- a possible foretaste of what to expect under FERC Order 1000.
Author Bio:
Bruce W. Radford is publisher of Public Utilities Fortnightly.
Michigan chafes over regional grid planning, providing a policy lesson for the feds.
Utilities in the Midwest ISO want greater access to sell into PJM’s lucrative market. But that might require a virtual merger of the two RTOs — a move rejected seven years ago as too costly, and perhaps still impractical today.
Author Bio:
Bruce W. Radford is publisher of Public Utilities Fortnightly.
PJM and MISO ran from the altar once before. Now there’s talk of a shotgun wedding.
Changes in regulatory requirements, market structures, and operational technologies have introduced complexities that traditional ratemaking approaches can’t address. Poorly designed rates lead to cross-subsidies, inequitable outcomes, and perverse incentives. An objective-based approach can better communicate costs to customers in a way that better serves operations and policy goals.
Author Bio:
Philip Q Hanser is a principal with The Brattle Group. He acknowledges the contributions of Brattle colleagues Ryan Hledik and Ahmad Faruqui, as well as Ken Costello of the National Regulatory Research Institute. He also acknowledges editorial assistance from Heidi Bishop and Shannon Wentworth at Brattle. The opinions expressed in this article are Hanser’s and don’t represent those of The Brattle Group or its clients.
A purposeful approach to setting energy prices.
Great River Energy’s Will Kaul discusses collaborative development
Michael T. Burr
One of the most ambitious transmission projects in America today is CAPX2020, a series of lines in Minnesota and surrounding states. In this first of two exclusive interviews, Fortnightly's Spark talks with Will Kaul, Great River Energy’s v.p. of transmission, about how the project managed to succeed where others have failed.
Not Just for Reliability Anymore
Bruce W. Radford, Public Utilities Fortnightly
In a recent order, the Federal Energy Regulatory Commission (FERC) said that by paying the wrong price for the ancillary service known as frequency “regulation,” system operators have encouraged too many gas-fired turbines and other conventional fossil power plants to supply regulation service.
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