Advanced Energy Perspectives

Oklahoma's Energy Efficiency Incentives Give Utilities a Business Reason to Save Customers Money

Posted by Coley Girouard

Feb 27, 2019 1:01:52 PM

Copy of Case Studies in Utility Business Model - FINAL (1)

This is the third in a six-part series on utility business model reform provided by Rocky Mountain Institute, America's Power Plan and Advanced Energy Economy Institute, originally published by Utility Dive

Incentives under the traditional cost-of-service utility revenue model are fundamentally misaligned with the implementation of energy efficiency programs. This is because, traditionally, utilities collect revenues based on the amount of energy they sell, whereas energy efficiency programs attempt to reduce energy consumption, thereby reducing utility revenues and profits.

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Topics: 21st Century Electricity System, Regulation, Utility Business Model Reform Case Studies

Behavioral Demand Response Gives Baltimore Gas and Electric a Business Reason to Reduce Peak Usage

Posted by Coley Girouard

Feb 6, 2019 12:48:38 PM

Case Studies in Utilitity Business Model - BGE-500

This is the second in a six-part series on utility business model reform provided by Rocky Mountain Institute, America's Power Plan, and Advanced Energy Economy Institute, originally published by Utility Dive.

At most times of the year, much of the electricity generating capacity in the United States stands idle. That's because the electric power system is built to handle demand at its peak — those few sweltering summer days when everyone's AC is running full blast. What utilities pay for power at those times of peak demand drives up the price we pay for electricity. In fact, approximately 10% of infrastructure investments in the United States focus on serving demand in just 1% of hours of the year. This leads to the question: are there more efficient ways to manage this demand — and make it in utilities' business interest to implement them?

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Topics: 21st Century Electricity System, Regulation, Utility Business Model Reform Case Studies

What do Hawaii and Pennsylvania (and Several Other States) Have in Common? They’re Charting a Course Toward Utility Regulatory Reform.

Posted by Ryan Katofsky

Jan 30, 2019 3:00:00 PM

Utility Regulatory Reform-730

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.

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Topics: 21st Century Electricity System, Regulation

Top 10 Utility Regulation Trends of 2018

Posted by Coley Girouard

Dec 19, 2018 4:52:37 PM

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Photo by Tom Burke, used under a Creative Commons license

In July, we published a list of the top 10 utility regulation trends of 2018 – so far. With 2018 winding down, we check in on the top public utility commission (PUC) actions and trends of the year. Ten prominent trends and actions stand out above the rest, from renewables continuing their downward price trajectory, to electric vehicle charging infrastructure build-outs getting approved, to exploration of utility business model reforms and non-wires alternatives to traditional distribution investments. Here is the full round-up of the top 10 matters before PUCs in 2018.

Note: some links in this post reference documents in AEE's software platform, PowerSuite. Click here and sign up for a free trial.

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Topics: PUCs, 21st Century Electricity System, Advanced Transportation

Pioneering a Performance-Based Future for Energy Efficiency, California Utilities are Creating an Opportunity for Innovation Not to be Missed

Posted by Matt Golden

Dec 18, 2018 5:30:32 PM

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This is a guest post by Matt Golden, CEO of AEE member company OpenEE.

Energy efficiency in California is rapidly evolving. Moving toward the state’s 50% renewable portfolio standard (RPS), SB350 goals to double energy efficiency and renewable energy, and perhaps most importantly, new SB100 requirements to achieve zero carbon on the grid by 2045, it has become necessary to rethink our demand-side strategy. Achieving these lofty targets while maintaining a balanced, stable, and affordable grid will take all the distributed energy resources we can get, including a massive increase in demand flexibility from energy efficiency, electrification, and controls. 

New solicitations for energy efficiency services from California’s investor-owned utilities point the way toward a future of performance-based capture of energy savings when and where they matter, driven by innovation in the marketplace. Energy efficiency providers should see this as an opportunity – and there’s no time to waste. 

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Topics: Guest Post, California Engagement, 21st Century Electricity System

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Advanced Energy Perspectives is AEE's blog presenting news, analysis, and commentary on creating an advanced energy economy. Join the conversation!

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