On June 2, FERC conditionally approved tariff revisions to facilitate and govern the participation of aggregated distributed energy resources (DERs) in CAISO’s energy and ancillary services markets.
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On June 2, FERC conditionally approved tariff revisions to facilitate and govern the participation of aggregated distributed energy resources (DERs) in CAISO’s energy and ancillary services markets.
In May 2016, Indianapolis Power and Light (IPL) brought online the first utility-scale battery storage system in the Midcontinent Independent System Operator (MISO) region. IPL reports the system will be used to provide frequency regulation, as well as other reliability services.
Changing weather patterns are becoming more common, and predicting them is becoming even more difficult. This is especially true for electric and gas utilities, which use historical weather data when developing predictions of future weather patterns, which are in turn used to project future demand and ultimately rates. In the past, public utility commissions have accepted the practice of using 30-year historical averages to develop weather normalization curves and forecasts submitted as part of the rate case process.
As part of the New York REV proceeding, a pilot program using a blockchain platform has allowed residents within a microgrid to sell their excess power directly to their neighbors without going through the utility. The blockchain technology first rose to prominence in 2009 due to its innovative role in tracking the cryptocurrency Bitcoin.
On May 19, 2016, as part of the Reforming the Energy Vision (REV) proceeding, the New York Public Service Commission (PSC) issued an order to the New York investor-owned utilities regarding further instruction to modernize the utility business model. The Order Adopting a Ratemaking and Utility Revenue Policy Framework, or the as it is commonly referred to as the “Track 2 Order,” outlines the near-term requirements for utility compliance and long-term vision for REV markets.
In May 2016, Starbucks, the Seattle-based coffee chain, announced that it had closed an offer of $500 million in bonds to fund sustainability projects. The move was made to “fund programs that ensure coffee is grown and distributed in a way that can be maintained over the long run.”
The American Public Power Association (APPA) is a non-profit, non-partisan trade association for public power utilities in the United States that focuses on, among other things, advancing the legislative and regulatory interests of its members.
In May 2016, MGM Resorts (MGM) and Wynn Resorts (Wynn) each filed with the Public Utilities Commission of Nevada to replace Nevada Power with an alternative energy provider. In filing this application, MGM and Wynn agreed to pay $86.9 million and $15.7 million, respectively, in impact fees to Nevada Power.
In a recent interview with SNL Energy, Duke Energy signaled interest in installing commercial battery storage projects in regulated markets. The development follows several battery storage pilot projects, as well as unregulated commercial installations in competitive, deregulated markets.
Developments continue as legal maneuvers impact the implementation of the Obama administration’s Clean Power Plan (CPP). As recent as February 9, a stay was granted halting the implementation of the CPP, pending a review of the merits of the rule by the D.C. Circuit Court. On May 16, in an unexpected twist, the U.S. Court of Appeals for the D.C. Circuit Court indicated it would hear challenges to the CPP sitting en banc[1]. En banc means the full panel of circuit court justices will hear the case rather than the more traditional panel of three justices. The decision to have an en banc review has the potential to expedite the ruling and the implementation timeline of the CPP. Hearing arguments en banc reinforces the complexity and significance of the CPP.
On May 12, the EPA finalized its rule to limit methane emissions from new and heavily modified oil and gas facilities. The rule, which updates the New Source Performance Standards, is projected to reduce methane emissions by 510,000 tons by 2025. These reductions will be made possible by setting emissions limits, requiring a fixed schedule for monitoring leaks, and phasing in “green completion” for hydraulically fractured oil wells.
In March 2016, Pacific Gas and Electric Company (PG&E) submitted plans for a pay-for-performance residential energy efficiency pilot program. The PG&E plan uses newly available and standardized energy and project data, combined with open-source standard methods to calculate savings. The result is a market that pays for actual performance of energy efficiency instead of upfront savings estimates.
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