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

Through Long and Winding Process, Corporate Procurement of Renewable Energy in Michigan Gets Better

Posted by Caitlin Marquis and Laura Sherman

Dec 11, 2018 2:00:00 PM

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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.

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Topics: Regulation, Advanced Energy Buyers Group, Highlights

Distribution system planning: Proactively planning for more distributed assets at the grid edge

Posted by Coley Girouard and Ryan Katofsky

Nov 27, 2018 11:00:00 AM

This is the seventh in an occasional series from AEE, originally published in Utility Dive, that addresses how the power sector can successfully transition to a 21st Century Electricity System.

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.

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Topics: PUCs, 21st Century Electricity System, Regulation

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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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