1 / 22

A Short History of Electric Industry Policy

A Short History of Electric Industry Policy. Combined Heat and Power/Distributed Generation and Emerging Fuels June 26 , 2007. Alex Hobbs, PhD, PE aohobbs@ncsu.edu.

celerina
Download Presentation

A Short History of Electric Industry Policy

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A Short History of Electric Industry Policy Combined Heat and Power/Distributed Generation and Emerging Fuels June 26 , 2007 Alex Hobbs, PhD, PE aohobbs@ncsu.edu

  2. It is the purpose of the State Utility Commission to insure that shareholders are appropriately rewarded for their investments in utility infrastructure and expenses. It is the purpose of the State Utility Commission to regulate the electric utility so that the consumers are fairly treated by a monopoly franchise which provides a necessary service. How do you see this?

  3. Inception -1930Investors lead with no regulation • Small and regional utility companies, little interconnection nor transmission facilities • Technological improvements in generation and transmission followed by load growth • Competition, consolidation, and monopoly • By 1929 16 holding companies controlled 80% of US utilities • Resulted in federal government intervention

  4. 1931 -1950Period of high load growth, technological development, government participation & intervention • 1935 Public Utilities Holding Company Act (PUHCA)–Reorganized electric utility industry and created effective regulation (State and Federal) • 1936 Federal Power Act (FPA) and Creation of Federal Power Commission (FPC) • Rural electrification program • Extensive development of hydropower through federal generation authorities

  5. 1951 -1985 Modernization of Electric Power • Industry growth at 7% to point of being overbuilt • Capital cost of 20% nuclear power helped double rates for industrial customers between 1970 and 1985 • Extensive interconnection among utilities and formation of reliability councils following 1965 Northeast blackout • EPA established in 1970 to safeguard the environment • DOE established in 1976 to promote national energy security • Federal Energy Regulatory Commission (FERC) created in 1977 with more authority and broader responsibility than former FPC which was abolished • Public Utility Regulatory Policies Act of 1978 • Provide legislative and jurisdictional guidance for governmental bodies • PURPA set up to encourage energy efficiency and renewable energy technologies

  6. 1986 -2005Increased grid access, deregulation uncertainty, promotion of energy efficiency, renewable energy and distributed generation. • Energy Policy Act of 1992 • Created new entity Exempt Wholesale Generators (IPP) • Promote use of deregulated natural gas by higher efficiency gas turbines with combined cycle and CHP • EPAct set up rules to begin opening up the grid and allow competitive generators to compete for customers to drive down costs and prices • FERC Orders 888 & 2000 • 888 (1996) Requires IOUs to publish nondiscriminatory tariffs that can be applied to all generators/competitors • 2000 (1999) Calls for the creation of regional transmission organizations RTO’s to fairly control transmission system operation

  7. EPAct 2005 • Signed into law on August 8, 2005 • Applies to each utility, if their total sales other than resale, exceeded 500 million kilowatt-hours during any calendar year. • Requires each state regulatory authority and each non-regulated electric utility to conduct a “consideration and determination” of five new PURPA standards added to PURPA Section 111(d) within a defined time period • Net Metering • Interconnection • Time-Based Metering and Communications • Fuel Sources • Fossil Fuel Generation Efficiency • FERC Order 2006 for simplified interconnection rules • http://www.ferc.gov/industries/electric/indus-act/gi/small-gen.asp

  8. Key Policy Issues in Arkansasto promote Distributed Energy Resources • Renewable Portfolio Standards to require near market renewables and energy efficiency • Public Building Requirements to raise awareness, show state leadership and establish a base market • Institutional Green Power Purchases to support market development of generation resources • Local Barrier Reforms in zoning, permitting & taxation • Tax Credit Treatment to make the RE Credits “tradable” by nontaxable early adopters • Public Benefit Funds to Support market emergence and development • Net Metering & Simplified Interconnection Rules to upsize to support larger scale DER, PV and Wind

  9. Green building standards for Arkansas state facilitiessupports CHP Incentive Type: Energy Standards for Public Buildings Eligible Efficiency Technologies: Comprehensive Measures/Whole Building, Specific technologies not identified Eligible Renewable/Other Technologies: Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, CHP/Cogeneration, Bio-gas, Daylighting, Small Hydroelectric Applicable Sectors: State Government Goal: LEED and Green Globes certification Website: http://www.1800arkansas.com/energy/ Authority 1: AR Code § 22-3-1801 et seq.

  10. AR has Net Metering Ohio has it figured out www.dsireusa.org May 2007 NH: 25 MA: 60 RI: 25 * CT: 100 100 VT: 15/150 100 * * 50 100 * 40 * 25 30 * 10/400 20 * 25/100 * 25 * * no limit 500 * PA: 50/1,000/2,000 NJ: 2,000 DE: 25 MD: 2,000 DC: 100 VA: 10/500 * 40 * 150 * * * 25 2,000 10 * 25 * 1,000 15 * 20/100 * * 100 25/300 10 10/100 80,000 * 50 25/100 50 varies Net metering is available in 41 states + D.C. State-wide net metering for all utility types * State-wide net metering for certain utility types (e.g., IOUs only) Net metering offered by one or more individual utilities (Numbers indicate system size limit in kW; in some cases limits are different for residential and commercial systems, as shown)

  11. Interconnection policy is required for net-metering or RPS • On July 26, 2002, the Arkansas Public Service Commission (PSC) approved final net-metering rules (Order No. 02-046-R). Section 3 applies to the interconnection of net-metered facilities to existing electric power systems. Facilities producing electricity using solar, wind, hydro, geothermal and biomass resources are eligible to interconnect and net meter. Microturbines and fuel cells using renewable resources are also eligible.

  12. Southeast needs to set RE goals DSIRE: www.dsireusa.org June 2007 Renewables PortfolioStandards ME: 30% by 2000 10% by 2017 goal - new RE MN: 25% by 2025 (Xcel: 30% by 2020) VT: RE meets load growth by 2012 *WA: 15% by 2020 • NH: 23.8% in 2025 WI: requirement varies by utility; 10% by 2015 goal MT: 15% by 2015 MA: 4% by 2009 + 1% annual increase OR: 25% by 2025 (large utilities) 5% - 10% by 2025 for smaller utilities RI: 15% by 2020 CT: 23% by 2020 IA: 105 MW CA: 20% by 2010 • NY: 24% by 2013 • CO: 20% by 2020 (IOUs) *10% by 2020 (co-ops & large munis) • NJ: 22.5% by 2021 IL: 8% by 2013 • NV: 20% by 2015 • PA: 18%¹ by 2020 • MD: 9.5% in 2022 *NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) • AZ: 15% by 2025 *DE: 10% by 2019 • DC: 11% by 2022 *VA: 12% by 2022 TX: 5,880 MW by 2015 HI: 20% by 2020 State RPS State Goal • Minimum solar or customer-sited RE requirement * Increased credit for solar or customer-sited RE • ¹PA: 8% Tier I / 10% Tier II (includes non-renewables); SWH is a Tier II resource Solar water heating (SWH) eligible

  13. Public Benefit Funds for Renewables www.dsireusa.org May 2007 Cumulative 1998 – 2017 (Million $) $10 $111 VT: $36 $95 MA: $383 $85 $22 $1,122 RI: $10 CT: $338 $80 NJ: $279 $20 $127 DE: $11 DC: $10.5 $2,048 15 State Funds + DC $4 B by 2017 Funded by Voluntary Contributions

  14. Database of State Incentives for Renewable Energy • The NC Solar Center hosts DSIRE - a comprehensive source of information on state, local, and utility incentives that promote renewables • www.dsireusa.org

  15. IREC Interconnection Project • The NC Solar Center also hosts the IREC Interconnection Project - information on federal, state and utility net metering and interconnection programs • www.irecusa.org/ connect

  16. Do you have some questions? Alex Hobbs, PhD, PE www.CHPCenterSE.org www.ncsc.ncsu.edu

  17. DER Market Scenarios • Back-up generation • Distribution system enhancement • Feeder Relief • Transformer bank relief • Reactive support for the T&D Grid • Serve remote loads • Power Quality • Peak shaving • Energy needs (load growth) and Ancillary Services • Loss reduction • Transmission and distribution deferral • Improve grid asset utilization • Local micro-grid • Interconnected local micro-grids • Interconnected local micro-grids and utility distribution systems

  18. Where Does CHP Fit With DER? • High Thermal Loads High Thermal Loads • Cooling, Heating, or Dehumidification Cooling, Heating, or Dehumidification • Steam, Hot Water, or Direct Heat Steam, Hot Water, or Direct Heat • High Electric Loads • Coincident Thermal and Electric Loads • Extended Operating Hours • Where the Rates and Regulatory Climate are Favorable • Central HVAC System • Access to Fuels (Opportunity fuels and natural gas)

  19. Nuclear power proved to be a boon for the investors.

  20. Distributed Energy Resources

  21. Generation Efficiencies 1 MW 70% CHP Hybrid Fuel cell With CHP 60% CCTG 50% Fuel Cell Micro Turbine 40% GasTurbine Reciprocating Engines 30% Old steam 20% 10kW 100kW 1 MW 10MW 100MW 1000MW

  22. Dawn of electric industry Pearl Street power station went into operation in 1882 in New York City and is considered the world's first central electricity generating station. It was built and operated as a Combined Heat and Power facility by the Edison Electric Light Co., founded by Thomas Edison.  Cutaway of Pearl Street Station

More Related