Getting Capacity Right: How Current Methods Overvalue Conventional Power Sources

Posted by Reports on Mar 30, 2022 6:18:56 PM

Publish Date: March 30, 2022

Getting Capacity Right

Acceleration of the clean energy transition is dramatically shifting the types of electric generation technologies used to meet electricity demand and reliably operate the grid. Rapid cost declines in advanced energy technologies like wind, solar, and energy storage are making them increasingly competitive choices for new generation additions. While there has been considerable attention devoted to determining the reliability value of these new resource types, the methods used to evaluate the resource adequacy, or capacity value, of conventional thermal generating resources (including coal, natural gas, and oil-fired power plants) have not been formally reexamined or updated in decades.

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Topics: Utility, Regulatory, Wholesale Markets

Reaching for the Cloud: Solutions for Regulatory Parity for Cloud Services for Utilities

Posted by Reports on Feb 24, 2022 12:55:29 PM

Publish Date: February 22, 2022

Cover_Reaching for the Cloud-1Information technology (IT) and data solutions are a central focus of modern enterprise in every industry. Many industries have made the transition from traditional, on-premises IT solutions to cloud computing — and those industries have subsequently benefited from the scalability, flexibility, and efficient use of capacity cloud computing offers. However, regulations that have been in place for nearly a century have delayed the ability of utilities to transition from on-premises systems to cloud computing services. This paper, from AEE and the Edison Electric Institute (EEI), examines the regulatory reforms needed to modernize the IT systems that utilities depend on to provide safe, reliable, and efficient operations. 

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Topics: Utility, Regulatory

Utility Earnings in a Service-Oriented World

Posted by Reports on Jan 29, 2018 4:17:00 PM

Publish Date: January 29, 2018

Throughout the economy, companies are finding efficiencies and operational benefits through services provided by third parties instead of physical assets that they own and manage.

However, under prevailing cost-of-service regulation, electric utilities may be discouraged from using such services, since they do not generate profits the way that investments in capital assets do.

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Topics: PUCs, Utility, Regulatory

Making Corporate Renewable Energy Purchasing Work for All Utility Customers: Design Principles for Voluntary Renewable Energy Programs

Posted by Reports on Jul 25, 2017 4:45:00 PM

Publish Date: July 25, 2017

Voluntary renewable energy tariffs are quickly emerging as one of the key tools to meet growing corporate renewable energy demand in vertically integrated markets.

Participation in renewable energy tariffs has grown steadily over the past five years, and improvements in program design have continued apace. A report from Advanced Energy Economy Institute and a companion policy brief from AEE provide guidance for the design of successful renewable energy programs in regulated markets. 

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Topics: PUCs, Utility, Regulatory

Comment Letter on NY REV Ratemaking and Utility Business Models

Posted by Reports on Oct 27, 2015 4:55:00 PM

Publish Date: October 27, 2015

Comments submitted by the Advanced Energy Economy Institute on the staff white paper on Ratemaking and Utility Business Models issued by the New York Public Service Commission in its "Reforming the Energy Vision" proceeding.

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Topics: State Policy, PUCs, Utility

Peak Demand Reduction Strategy

Posted by Reports on Oct 14, 2015 1:07:00 PM

Publish Date: October 14, 2015

Demand for electricity can spike during just a few hours a year, and typically 10 percent of our electric system capacity is built to meet demand in just 1 percent of hours during the year. This comes at a significant cost to consumers.

This report, prepared for AEE by Navigant Consulting, evaluates the benefits and costs of reducing peak demand in two states, Illinois and Massachusetts, and the feasibility of utilities to procure the resources to meet demand reduction goals over 10 years.

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Topics: State Policy, Utility