Advanced Energy Perspectives

Allocation based on historical generation is likely to result in a "tragedy of the commons," because the cost of measures (such as developing a wind farm) are borne by the investing utility, but the emissions reduction benefits accrue to all that use the grid (including other utilities and power generators).

The Supreme Court has put a temporary hold on enforcement of the Clean Power Plan while lawyers battle over its ultimate fate, but here at AEE we’re confident the rule will prevail — and we’re keeping busy in the meantime, working with the long list of states committed to planning for compliance. We’ve got plenty of advice for states, and today we’re focusing on those that would choose to comply using mass-based plans. Bottom line: How you distribute the emission allowances needed for compliance makes a difference.

This post is one in a series featuring the complete slate of advanced energy technologies outlined in the report This Is Advanced Energy. 

Here at Advanced Energy Perspectives, we have known for some time that the utility business model is undergoing a necessary evolution. Utilities have been integrating variable energy resources and starting to incorporate energy storage, advanced metering, demand response, and other advanced energy technologies at an increasing rate, even without national policy forcing their hands. Back in 2014, we said the days of “your grandpa’s utility business model” were over. This week, thanks to a new survey of utility employees, we heard the same thing – right from the horses’ mouths.

Last week, in an unprecedented move, the U.S. Supreme Court ruled 5-4 to stay EPA’s Clean Power Plan. While this is certainly a setback for the CPP at the federal level, it is clear that work will continue at the federal and state levels in a variety of forms. Since the stay, many states have weighed in on the decision: 16 states will continue to plan for compliance with the rule, 12 states have suspended planning efforts, eight states have yet to announce any planning process, and six states are still reviewing their options post-stay. AEE will continue to monitor states’ actions in the aftermath of the ruling. Here is what we know so far.

This post is one in a series featuring the complete slate of advanced energy technologies outlined in the report This Is Advanced Energy. 

Image courtesy of U.S. Army Corps of Engineers Chicago District.