Advanced Energy Perspectives

Our electric transportation future is on the way – that much is not in doubt. Electric vehicles may currently account for just a small share of vehicle sales, but a high – and accelerating – growth rate is putting EVs on the agendas of public utility commissions (PUCs) around the country. To address the coming electrification of the vehicle fleet – from passenger cars to delivery vehicles, buses, and trucks – state regulators should take steps to maximize the benefits and minimize the challenges associated with this transportation transformation – seven steps, to be specific.

In August, the Public Utilities Commission of Ohio (PUCO) released a report on Ohio’s electricity future, the product of an initiative coined PowerForward. The PowerForward report is a milestone in the state’s effort to revolutionize Ohio’s electrical grid, improve reliability and resilience, and incorporate new, innovative technologies to enhance the customer experience. AEE and our member companies have been involved all along the way. The process is far from finished, but the PowerForward roadmap points in the right direction – toward a modernized electric power grid, with utilities regulated in ways that take advantage of advanced energy technologies and services.  

PJM, the nation’s largest regional grid operator and the largest wholesale electricity market in the world, is at a crossroads: Can it run its markets while accommodating the ability of states to enact clean energy policies, or will it adopt new market rules that put the continuation of those policies at risk? With zero-emission credits (ZECs) supporting existing nuclear power plants in states like Illinois and New Jersey adding to the 29 states across the country already having renewable portfolio standards (RPS) that provide support in the form of renewable energy certificates (RECs) – and many of those states continuing to ratchet up RPS requirements – certain power plant operators have voiced concerns about what they see as “distortions” of the wholesale market. FERC is listening and making big moves. AEE is fully engaged in FERC’s proceedings, working to make sure that advanced energy resources are not disadvantaged in response.

Image by Stormotion.io, used under a Creative Commons license. 

This is the sixth in an occasional series from AEE published in Utility Dive that addresses how the power sector can successfully transition to a 21st Century Electricity System.

Throughout the economy, businesses rely heavily on services to fulfill their needs. In the utility sector, however, the use of services has taken hold more slowly, especially when those services reduce the need for capital investment in their systems. At the heart of the matter is the way utilities recover costs and generate earnings. At stake is faster adoption of modern technology, better service, a more efficient system, and lower costs for customers.

Photo by Tom Burke, used under a Creative Commons license. 

In December, we published a list of the top 10 utility regulation trends of 2017. With half of 2018 already in the rearview mirror, we check in on the top public utility commission (PUC) actions and trends so far this year.

Not surprisingly, the challenges PUCs are grappling with are diverse: moving toward a cleaner grid, adopting foundational electric vehicle policies, investigating utility business model reforms, exploring the integration of new technologies such as energy storage, and increasing customer choice when it comes to sourcing their energy, just to name a few. Without further ado, here is a status check on the top 10 matters before PUCs in 2018 so far.