Advanced Energy Perspectives

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?

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.

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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 August, the Public Utilities Commission of Ohio (PUCO) released a report on Ohio’s electricity future, the product of an initiative coined PowerForward. The PowerForward report is a milestone in the state’s effort to revolutionize Ohio’s electrical grid, improve reliability and resilience, and incorporate new, innovative technologies to enhance the customer experience. AEE and our member companies have been involved all along the way. The process is far from finished, but the PowerForward roadmap points in the right direction – toward a modernized electric power grid, with utilities regulated in ways that take advantage of advanced energy technologies and services.