Advanced Energy Perspectives

In most parts of the country, how utilities plan their distribution systems – the network of poles, wires and other equipment designed to support electricity delivery at the local level – is something of a “black box.” But now, with the continued proliferation of distributed energy resources (DERs) – ranging from rooftop solar to onsite battery storage and demand response – available to help manage electric supply and demand at the distribution level, that black box needs to be opened. Colorado is doing just that by joining a growing number of states that are implementing distribution system planning (DSP) rules for the first time.

Although 2021 is only halfway through, state utility regulators and regional grid operators have had their hands full considering issues at the cutting edge of the energy transition. How can utilities develop resource plans that align with state policy goals? How do all those mobile batteries in the growing fleet of electric vehicles (EVs) get integrated with the grid? How can customers be helped to make smarter energy decisions? These questions and more are on the docket in 2021, and Advanced Energy Economy has been tracking how regulators are tackling these complex issues. Even just halfway in, the regulatory trends from across the country suggest that 2021 will be another transformational year for advanced energy.

On May 6, the clean energy train slid off the tracks in Arizona, taking with it the hope for the timely passage of the proposed Arizona Corporation Commission (ACC) Energy Rules to reach 100% clean energy by 2050. More than three years after the rulemaking train left the station, the ACC rejected the proposed rules in a surprise 3-to-2 vote. That decision came after nearly three years of official stakeholder engagement, bipartisan cooperation, and extensive participation of utilities, consumer advocates, and communities of faith in the robust process, with all of those groups ultimately supporting the proposed rules package. But it turns out this was not the end of the line for the proposed rules. They are now back on track, in a new form, although the journey is far from over.

Last week, the Indiana Utility Regulatory Commission (IURC) issued its final order in a proceeding to examine Duke Energy Indiana’s coal-fired unit commitment decisions during the Fall of 2019. While the IURC ultimately declined to order Duke to refund customers for the financial losses it knowingly incurred, the Commission rightly acknowledged that today’s changing energy landscape has complicated the way coal plants should operate. AEE had hoped that the IURC would go further to protect customers from the financial harm caused by Duke’s uneconomic operating practices, but the Commission did push Duke to move toward a better decision-making process for future commitment decisions. With those now under a bit more scrutiny, we look forward to working with Duke on the alternatives we proposed to help the utility give up its costly coal addiction in its 2021 Integrated Resource Plan.

A little less than a year ago, Virginia made history by passing the Virginia Clean Economy Act (VCEA) and becoming the first Southern state to establish a 100% clean energy standard. Today, the VCEA faces one of its first critical tests, as the State Corporation Commission (SCC) considers Dominion’s 2020 Renewable Portfolio Standard (RPS) filing – the utility’s first under the law’s new binding standard. Will the Commission find in favor of the utility, ruling only on the basis of the projects Dominion proposes to build and contract for? Or will the Commission consider the utility’s proposal within the broader context of the law, which pushes utilities to meet their RPS requirements through a variety of means to ensure lowest cost, as AEE and a number of other intervenors propose? It is our hope that the Commission will look at the forest, not just the trees – and set Dominion on the right clean-energy course for Virginia’s families and businesses.