Photo by Drew Buikema, used under a Creative Commons license. 

Back in December 2016, an omnibus energy bill signed into law in Michigan contained a small section requiring utilities to develop “voluntary green pricing” programs. Today, nearly two years later, the ensuing regulatory process is producing results that will open new renewable energy options for residential as well as commercial and industrial (C&I) customers. The Michigan Public Service Commission recently issued orders requiring improvements to Consumers Energy’s “Large Customer Renewable Energy Program” (LC-REP) and Solar Gardens program, and to DTE’s MIGreenPower program, while also requiring DTE to introduce a new program focused on C&I customers. The regulatory process is far from complete, but before long corporate customers in Michigan will have more and better ways to procure the renewable energy they want to power their operations.

We knew this time was coming, but now it’s here: Call it the crossover point, when technologies like large-scale wind and solar come so far down the cost curve that they become cheaper than legacy sources of electric power generation. Cheaper than the old alternatives, in terms of making new investments. Cheaper, even, than keeping old power plants going, in some cases. And that time is now. You can see it in the latest estimates of lifetime costs of electricity from new power sources made by investment bank Lazard, and you can see it in the latest purchases of renewable power by utilities. Any way you look at it, advanced energy is winning.

In 2018,  topics trending on the internet ranged from the Supreme Court confirmation hearings to the royal wedding. But on PowerSuite, AEE’s online tool for identifying and managing energy policy risks and opportunities, the trends looked a little different. Similar to YouTube or Twitter, “trending” in PowerSuite means an item is popular among users and particularly active, in terms of hearings, amendments, floor action, or regulatory filings. This year, legislation providing incentives for customer-sited energy storage in California and a utility’s resource plan in Michigan were the top bill and regulatory proceeding, respectively, trending on PowerSuite. But there’s more to be learned about energy policy in 2018 from choices made by PowerSuite’s 1,400 active monthly users.

Image courtesy of Chrishna and used under a Creative Commons license.

Severe weather events – whether hurricanes, wildfires, cold snaps, or heat waves – increasingly play a role in the lives of Americans. While extreme weather creates all sorts of problems, high on the list is the stress they put on the electric grid. Prior to this year, the 2014 Polar Vortex has been pointed to by those concerned about the ability of the electric grid to withstand severe weather events, and we’ve noted how wind and demand response helped keep the lights on during that cold snap. But in 2018, it was an expected heat wave in Texas that loomed as a potential threat to the grid. Would the Electric Reliability Council of Texas (ERCOT), the grid operator that relies more on market principles than any other in the country, be able to keep on the lights? The answer turned out to be yes – with lessons that could prove instructive to the 116th Congress when it convenes in January.  

U.S. utilities invest over $20 billion per year replacing and modernizing their electricity distribution infrastructure. As the electricity system continues to evolve, making sure that this money continues to be invested wisely, especially at a time of growing deployment of distributed energy resources (DER), is prompting changes to how utilities conduct distribution system planning.