Advanced Energy Perspectives

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.  

Image provided by EnergyEfficiencyDay.org

This year’s Energy Efficiency Day (#EEDay2018) was designed to spotlight the impact of efficiency technologies and inspire companies, as well as the average person, to take action. That’s why AEE is supporting the national social media campaign on Oct. 5 and encouraging our members and partners to join us.

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.

As the nation’s top per capita manufacturing state – the No. 1 steel producer and No. 3 for cars – Indiana is an energy-intensive state, so saving energy means saving money here as much as anywhere. But cost is driven especially by turning on those last, most expensive power plants – or building new ones – to meet demand at its peak. Meeting peak demand is expensive; not only are wholesale electricity prices higher during those times, but about 10% of our state’s electric power infrastructure investments focus on serving load during just 1% of the hours of the year. If Indiana can shave or eliminate these expensive peaks it could reduce costs and improve reliability, because times of peak demand are also typically when the grid is most stressed. Our new report shows three ways that Indiana can reduce peak demand.

Cybersecurity is a growing issue for the U.S. economy, especially for the critical infrastructure that keeps the nation’s energy system operating — the interconnected and interdependent systems of natural gas, water, communications, and fuel distribution, and especially the highly dynamic electric power sector, which is seeing the widespread introduction of advanced and intelligent energy technologies. But that doesn’t mean the intelligent and distributed grid of the future need be more vulnerable to cyberattack than the closed and centralized electric power system it is in the process of replacing.