Advanced Energy Perspectives

Given the market surge of air and ground source heat pumps, Michiganders have more options than ever to efficiently and affordably heat and cool their homes with electricity. Especially when paired with additional energy efficiency measures, load management, dynamic rates, and distributed energy resources (DERs), the savings can be significant. But until customers upgrade their appliances and ditch the fossil fuels, many remain at risk. In Michigan, gas utilities are rapidly spending on capital-intense pipeline replacement and modernization projects, leading to higher and higher delivery costs for their customers.

What is a daily demand charge?  

A demand charge is a utility fee based on the maximum amount of energy a customer uses during a short period of time within a billing cycle. Nevada Power, a subsidiary company of NV Energy, is proposing to add a mandatory daily demand charge for its residential customers.

Under this plan, your electricity meter would be measured on a 15-minute cycle each day, and your bill will be based on the highest 15-minute period energy use during that day. For example, if your highest energy usage is from 6:45-7 PM on a day in July, the demand charge for that day will be based on this time, regardless of your usage during the rest of the day. This would be in addition to the basic service charge of $18.50 that customers already pay. This is something no other investor-owned utility (IOU) in the country currently does.

After a robust exchange of testimony, arguments, and briefings among stakeholders, the fate of We Energies’ (WEC) proposal to spend $1.2 billion on a new gas plant – a plant the utility plans to use just 10-20% of the time – now rests with the Public Service Commission (PSC) of Wisconsin. Formal proceedings before the PSC concluded on April 11, and a decision is expected in the coming weeks.

The 2024 NV Energy Integrated Resource Plan (IRP) proceeding is coming to a close, with a decision expected from the Public Utilities Commission of Nevada (PUCN) by December 20, 2024.

In Nevada, an IRP proceeding is conducted every three years with the goal of ensuring that NV Energy has the resources it needs to reliably and affordably serve Nevada’s electric customers and meet state policy goals. However, NV Energy’s proposed IRP, similar to those preceding it, exemplifies how the IRP process encourages investment in new gas resources, despite the availability of cheaper clean energy resources, such as Nevada’s abundant solar, geothermal, and distributed energy resources increasingly found on Nevadans’ rooftops and driveways. 

As we near the end of 2024, I’m pleased to share some good tidings and a bit of hope. While uncertainty hangs heavy on the horizon, Massachusetts offers a bright example of how states can shine when they choose to step up.

Governor Maura Healey recently signed a landmark clean energy package that will accelerate clean energy deployment in Massachusetts, and, in turn, will increase local jobs and lower energy costs. The act includes critical reforms to streamline siting and permitting processes, as well as provisions to expand grid-enhancing technologies, energy storage, and other advanced energy technologies.