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Posts Tagged ‘FERC’

Update on 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 certain 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 participating demand resources will be paid the prevailing locational marginal price (LMP) at the wholesale market location…
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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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The Future of Demand Response

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Demand response is a resource that allows electric customers to voluntarily reduce their electricity usage in response to a price signal, financial incentive, environmental concern or reliability emergency. By lowering usage at these times, customers are able to help lower wholesale energy prices and possibly prevent rolling black-outs by offsetting the incremental amount of electricity needed to meet increased demand during high load periods. It is a tariff or program that was designed to motivate changes in electricity use by end-use customers that can help modify the load profile of a utility or region. 

Common methods of…
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Constellation Energy to Merge With Exelon

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Today we announced that the boards of directors of Exelon (NYSE: EXC) and Constellation Energy (NYSE: CEG) have agreed to combine the two companies in a stock-for-stock transaction. The merger creates the number one competitive energy provider with one of the industry’s cleanest and lowest-cost power generation fleets and one of the largest commercial, industrial and residential customer bases in the United States.

Highlights of the merger include:

  • Creates the number one competitive energy provider
  • Combined enterprise value of $52 billion
  • Combines nation’s leading clean generation fleet and leading power sales and marketing business

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Regulatory Changes to Impact Electricity Generation Costs for Businesses in PJM Region

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PJM Interconnection (“PJM”), the regional grid operator for significant parts of the Midwest and mid-Atlantic, has recently identified that nearly 12,000 MW of electricity capacity provided primarily by smaller, old coal units is “at-risk” of imminent retirement. Aging units are becoming less economic due to high maintenance costs, high coal costs, relatively low natural gas prices (natural gas is the fuel of choice for many competing generators) and the threat of climate legislation that would require massive upgrades to contain pollutants emitted by these plants.

All of these impediments come at a time when demand for electricity has substantially decreased…
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