Advanced Energy Perspectives

This legislative session, Colorado is on its way toward modernizing how electricity infrastructure is built and propelling the interstate conversation on grid regionalization. Passed by the Colorado Senate and approved by its first committee in the House, bipartisan Senate Bill 72  would put Colorado on the map for leading the West toward a regional electricity market that helps the Rocky Mountain State capitalize on its immense resources and give households and businesses from New Mexico to Washington State the affordable clean energy they want. All it will take is one last push in the Colorado House of Representatives.

Texas’ February winter weather emergency dominated energy news nationwide. Now it’s dominating proposals in the Texas legislature. Following historic electricity outages, it’s no surprise grid reliability issues have come to the forefront of lawmakers’ priority list, with proposed legislation focusing on everything from distributed energy resources to various commission reforms. We turned to AEE’s PowerSuite to parse out which bills at play in the Lone Star State are generating the most buzz and share the measures we’re keeping our eyes on.

For the past two years, states, advanced energy developers, and corporate buyers of clean energy have expressed interest in creating competitive wholesale electricity markets in the Southeast. They see these markets as potentially reducing consumer costs and facilitating the cost-effective achievement of state and corporate clean energy goals. As calls in the region to study the creation of competitive wholesale market mechanisms in the region steadily grew, surprising news leaked in July that several utilities in the Southeast, including Southern Co., Duke Energy, and the Tennessee Valley Authority, were talking about a new platform for power trading called the Southeast Energy Exchange Market (SEEM), culminating in a filing with FERC in February. The question now: is SEEM a step toward wholesale market competition and greater access to advanced energy in the region, or a preemptive strike by the region’s utilities to avoid true competition? 

Last week, the Indiana Utility Regulatory Commission (IURC) issued its final order in a proceeding to examine Duke Energy Indiana’s coal-fired unit commitment decisions during the Fall of 2019. While the IURC ultimately declined to order Duke to refund customers for the financial losses it knowingly incurred, the Commission rightly acknowledged that today’s changing energy landscape has complicated the way coal plants should operate. AEE had hoped that the IURC would go further to protect customers from the financial harm caused by Duke’s uneconomic operating practices, but the Commission did push Duke to move toward a better decision-making process for future commitment decisions. With those now under a bit more scrutiny, we look forward to working with Duke on the alternatives we proposed to help the utility give up its costly coal addiction in its 2021 Integrated Resource Plan.

Texas is in the midst of a severe and historic winter weather event, which has led to the worst outages the state has experienced in decades. With over 4 million Texans losing power, all eyes are on the state’s grid manager and market operator, Electric Reliability Council of Texas (ERCOT), and market participants like power plant owners and operators, demand side resources, and other grid assets as they work around the clock to restore the grid to normal operating conditions. Defenders of the energy status quo are also using the occasion to cast doubt on advanced energy technologies – especially wind power, on which Texas is a national leader. But they’ve got it exactly backwards. The troubles in Texas point to the need for more advanced energy, not less.