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Archive for December, 2011

Implications of the Maximum Achievable Control Technology (MACT) Standard

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The EPA has revealed the final rules that would curb mercury and 84 other toxic chemicals from U.S. power plants.  These rules would implement a provision of the Clean Air Act (CAA) known as the Maximum Achievable Control Technology (MACT) standard or Mercury and Air Toxics Standards (MATS).  The EPA believes they will affect about 1,400 coal-fired units and oil-fired units at about 600 power plants that emit harmful pollutants.  The EPA ruling has given coal and oil plants until 2016 to comply with the rules and finish their retrofits and/or closures.    

Critics of the MACT rule have argued…
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Decrease Expected for Purchased Cost Indifference Amount (PCIA) on California Direct Access Electric Customer Bills

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Direct Access customers in California should take note of a change in non-bypassable charges as it directly impacts their electricity costs.

What are Non-Bypassable Charges?
Non-bypassable charges include utility charges that all customers must pay, including transmission and distribution charges.  Direct Access customers must also pay a non-bypassable charge referred to as the Purchased Cost Indifference Amount (PCIA), that is the Direct Access customer’s share of “stranded costs” associated with purchases made by the utility before the customer left utility service.

The PCIA rate paid by customers varies depending on when the customer leaves utility service, referred to…
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A Unique Chance for Commercial & Educational Buildings to Get Paid to Reduce Energy

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By Sonya Ulen
Director, Load Response, Constellation Energy

If you could see just how much energy or water that is used in your building, or even the floor that you work on, would you stop to take a look?

Some businesses have dedicated energy managers that monitor electric power use and water consumption for their organization. But now everyone can have a “behind the scenes view” because energy monitoring has reached a whole new level — now businesses can install customer-facing software platform and kiosk that will allow their employees to view, compare, and share their building consumption…
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Snowpack’s Influence On Winter Heating Demand

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Both natural gas and power prices continue to experience considerable downward pressure due to the persistent above average temperatures present in the eastern two-thirds of the country.  Weather-related demand, which is typically measured in Heating Degree Days (HDD’s), has been significantly lower than normal this winter.  

This lack of demand has delayed the price support that we typically see at this point of the heating season.  The HDD’s from Nov. 1, 2011 to the current day are -13% lower than the same period last year and are -8% lower than the 30-year normal.  As a result, the prompt-month natural gas…
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How PUCO’s Order That Modified AEP Ohio’s Proposal Could Impact Ohio Customers

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Yesterday, the Public Utilities Commission of Ohio (PUCO) entered Orders that modified American Electric Power (AEP) Ohio’s settlement proposal.   At this time, we do not know if the modifications are acceptable to AEP Ohio but the PUCO directed that compliance tariffs be filed by December 23rd.  The following are key points from the Order adopted by the PUCO that modified a prior settlement agreement:

– Gradual Base Generation Rate Increase: The PUCO lowered the base generation rate increases to half of what was proposed in the original agreement. The current base rate is 2.1 cents/kWh. Customers, per the Order…
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Regulatory Changes to Impact Demand Response Compensation in Organized Wholesale Energy Markets

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Customers and aggregators that act as demand response resources in organized wholesale energy markets should take notice of the Federal Energy Regulatory Commission (FERC)’s Order 745, issued on March 15, 2011.  FERC Order 745 directs each organized market operator (ISO) to institute incentive payments for demand response resources that curtail energy consumption during certain hours that would confer a “net benefit” to purchasers of wholesale supply by reducing price volatility during those hours.  

The incentive payment structure provides that demand resources will be paid the prevailing locational marginal price (LMP) at the wholesale market location at which the curtailment…
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