Advanced Energy Perspectives

Distributed energy resources (DERs) are becoming an increasingly important element in the U.S. electricity system, capable of driving us toward a more flexible, reliable, resilient, affordable, and clean grid. However, when any industry goes through a substantial change, there are questions that must be answered. What entities should be allowed to own, operate, and control DERs and DER services? Should a monopoly (i.e., the utility) be allowed to compete against private advanced energy companies given their inherent competitive advantages? In places like Arizona and New York, answers are starting to emerge, but are not yet settled.

Over the course of 2016, most of the advanced energy policy conversations in Nevada have been around net metering, with much score-keeping of progress and setback. Between rollback in June and partial reinstatement in December, net metering has taken center stage, with more to come this year. But another official decision has set the stage for Nevada to once again be an expanding market for advanced energy. It was a little-noticed ruling by the state’s public utility commission (PUC) to incorporate costs and benefits across all attributes in weighing various options for meeting the needs of electricity customers. AEE’s nonprofit educational affiliate, the AEE Institute, was right in the middle of it.

In September, we published a post on the top 10 utility commission issues of 2016 so far, but action on utility regulations has continued in the months since. In this year-end post, we look at 10 key actions taken by state public utility commissions (PUCs) in 2016. These actions affected everything from rate design for distributed energy resources to data access to grid modernization. More broadly, they all point the way toward a modern electric power system for the 21st century, even if getting there is by fits and starts.

Virtually every industry is transforming to incorporate data strategically, and the information age has finally arrived in the electric utility industry. With the deployment of smart meters now approaching 50% of all electric meters, utilities are collecting massive amounts of granular data. The question is, how can utilities best utilize all of this data and make it available—and useful—to customers and third parties?

Energy storage is a game changer. Ultimately, it could free the electric power system from matching generation and consumption on a minute-by-minute basis, saving electricity until it’s needed. Policymakers, utilities, and customers are beginning to recognize its value. Doug Little, chair of the Arizona Corporation Commission, summed up the potential of behind-the-meter (BTM) storage this way: “Energy storage technology is really the 'secret sauce’ for the future of residential rooftop solar.” At AEE, we agree, but add that it could be the secret sauce for numerous other applications - on both sides of the meter. That makes energy storage a key  technology for modernizing the energy grid and leading to an advanced energy future.