Advanced Energy Perspectives

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:

This is a guest post by Adam Scheer (Recurve), Jake Millette and Olivia Patterson (Opinion Dynamics), and Julie Michals (E4TheFuture)

Driven by advancing technologies and by policies that are evolving to both mitigate and adapt to climate change, the energy industry is changing at a breakneck pace. On the demand side, our fundamental challenge is moving beyond siloed programs into scaled demand flexibility to achieve states’ priorities such as grid resilience, resource adequacy, and decarbonization, amidst increasing electrification. Critically, scaling distributed energy resources (DERs) to meet a host of policy goals will require that we leverage limited ratepayer dollars to cultivate as much energy efficiency (EE) and other DER investment as possible. The question is: are cost-effectiveness (CE) testing practices developed decades ago adequate to guide our industry investments today? In our experience, legacy CE practices are inhibiting both innovative program designs and commonsense best practices for putting ratepayer dollars to optimal use.

We all have the power to save energy and today’s technology providers make it easier than ever to make a big difference. Whether you want to save money on your home energy bills, improve building comfort, reduce office, commercial and industrial costs, drive U.S. economic growth and jobs, or make a significant dent in harmful emissions, energy efficiency (EE) is a superpower we can all tap right now.

That’s why AEE is supporting the fourth annual national Energy Efficiency Day on Oct. 2 and encouraging you to join us. Working with national and regional EE colleagues, we are taking this fall day to highlight all the benefits of EE, shed light on enabling technologies, share valuable, cost-saving tips, and make it fun.

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

The most important innovation coming along in electricity may not be a cutting-edge technology or a first-in-the-nation government policy. Rather, it might be a subtle, yet transformative, change in the way utilities meet their resource needs. Instead of prescribing specific technologies to meet future demand – typically, power plants of a particular type – and buying it or building it themselves, utilities are increasingly defining their needs and allowing all technologies and services that can meet those needs to slug it out. It’s an approach that can save money for customers, relieve regulators of unnecessary risk, and open up opportunities for advanced energy companies of all kinds.

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.