Advanced Energy Perspectives

The 2020 session of the Indiana General Assembly was expected to be quiet. After all, we had just wrapped up the first year of the 21st Century Energy Task Force – a two-year study to create a comprehensive statewide energy plan for Indiana. Add to that, advanced energy advocates had been victorious the year before by defeating a proposal that would have placed a 20-month moratorium on Indiana Utility Regulatory Commission (IURC) action on any matter involving more than 250 MW of generating capacity – a requirement that would have locked in Indiana’s coal-fired generation for nearly two years and prevented Indiana’s utilities from pursuing their plans for advanced energy investment. With coal’s bid for a bailout knocked down last year, no one – advocates, special interests, or legislators – expected a big energy fight this session. Little did we know, but the bell was about to ring for another round in the legislative ring.

Sen. Jennifer McClellan and Del. Rip Sullivan celebrate passage of the Virginia Clean Economy Act, with AEE's Harry Godfrey (center) and JR Tolbert (right of Sullivan) looking on. Photo by Mary Rafferty

Last week, the Virginia General Assembly passed the Virginia Clean Economy Act (VCEA), which is now headed to the Governor’s desk for signature. The VCEA represents the single largest initiative spurring advanced energy investment in the southeastern United States. It  is also the culmination of three years of engagement and advocacy in the Commonwealth for Advanced Energy Economy. What does the Virginia Clean Economy Act do? And how did the Old Dominion go from laggard to leader in advanced energy? Read on.

As the Indiana General Assembly passed the halfway mark of its session last week, the question of whether to offer a lifeline to costly coal plants came to the forefront for the second year in a row. Last year, the advanced energy industry claimed victory as the House rejected a proposal that would have placed a 20-month moratorium on Indiana Utility Regulatory Commission (IURC) action on any matter involving more than 250 MW of generating capacity. This proposal would have locked in Indiana’s coal-fired generation for nearly two years and prevented Indiana’s utilities from pursuing their plans for advanced energy investment. Unsurprisingly, coal interests came back to the legislature this year looking for protection again. Despite rejecting the moratorium last year, a new proposal to require IURC approval before a utility can retire a coal plant was approved by the Indiana House. Now moving to the Senate, this bill is threatening to slow Indiana’s transition to investment in advanced energy. Here are the top five reasons the legislature should act to defeat this proposal:

After a landmark first year in office that included passing legislation on pension reform and recreational cannabis as well as putting a new state income tax proposal on the ballot this November, Illinois Gov. JB Pritzker seemingly tackled every major item from his 2018 campaign agenda, with the exception of passing comprehensive energy legislation. But maybe not for long. In his State of the State address on Wed., Gov. Pritzker said, “Our spring agenda must address the pressing issue of adopting new clean energy legislation that reduces carbon pollution, promotes renewable energy, and accelerates electrification of our transportation sector.” In adding that he would not “sign an energy bill written by the utility companies,” he was also giving a sign of the potential for broad stakeholder input – and AEE is already ahead of the game.

If you’re looking for big trends to watch in electricity markets, there’s no shortage these days. Some are broad policy issues, like the growing number of states targeting 100% clean grids (definitions vary but they are all directionally similar). Others are being driven by technology innovation, such as the continuing price declines for renewable energy and batteries. Some have a strong consumer focus, like smart thermostats and electric vehicles. Others are downright wonky, like the ongoing challenges related to the participation of distributed energy resources (DERs) in organized wholesale markets, or how states are trying to modernize the utility business model for the 21st century. One that we’ll look at today is how state policies to achieve 100% clean grids affect resource adequacy – that is, ensuring there is sufficient generating capacity to meet demand at all times.