As we have written many times in the past, the electric power sector is in the midst of some big changes. Whether it is new wind and solar power beating existing coal generation on price, the rise of electric and autonomous vehicles, or the multiple factors behind the evolving utility business model, change is in the air, and those changes are being driven in large part by technology and customer preferences. So it is not a question of if, but when change occurs, and it is also possible to imagine what the end state is going to look like, even if the timing and many of the details remain unknown. Uncertain, as well, is the path to that end state. But states ranging from Pennsylvania to Hawaii are blazing the trail, each in their own way.

In 2018, wholesale electricity markets were a bumpy ride for the advanced energy industry. The year began with major victories for the sector, including the Federal Energy Regulatory Commission’s (FERC) unanimous rejection of the Trump Administration’s proposal to bail out uneconomic coal and nuclear power plants, and FERC’s adoption of a final rule (Order 841) opening wholesale electricity markets to energy storage resources.  But headwinds developed as the year went on, including FERC’s June order requiring PJM to make major changes to its capacity market that could result in new barriers to participation for advanced energy resources, and moves in PJM and ISO New England to favor so-called “fuel secure” resources. After a turbulent 2018, what will 2019 bring? Here are some of the key areas where AEE will be engaged to ensure that advanced energy resources can continue to achieve growth in wholesale electricity markets.   

Those of us who follow energy policy likely spent a good portion of December looking at year-in-review articles. That period of reflection on what went well and what’s left to be done is important. So too is the process, beginning in January, of looking out toward the horizon to see where the road goes from here. We know that much of the action on advanced energy will be driven by state governments across the nation. So here is a look at the five issues we think will drive state policy for – or against – advanced energy in the year ahead.

In our nation’s capital, 2019 hardly started with celebratory fireworks, as President Trump and congressional leaders were in the midst budget stalemate that has led to a government shutdown, now 20 days and counting. While much of the government remains closed, advanced energy has moved into the spotlight as a major policy item for the new Congress. This is because the Democrats taking control of the House, bolstered by a bold incoming class of congressional freshmen, has put climate change, and the investments in advanced energy that could be employed to address the issue, back on the Washington agenda. It’s early days in this new and unsettled political landscape, but already three factors seem likely to shape a coming debate on climate change legislation in the 116^th Congress, with potential implications for the advanced energy industry.

Indiana AEE hosted an ‘Energy 101’ legislative briefing and breakfast January 8 to introduce AEE and advanced energy policy issues to legislators. The audience was newly elected legislators and members of the House and Senate Utility committees. Legislators heard from Claudia Earls, Chief Counsel, Northern Indiana Public Service Co. (NIPSCO), on the utility’s recent IRP and announcement of plans to close its last two coal plants in the next 10 years, replacing that capacity with solar, wind, storage, and demand management resources.