Regulatory Update Webinar. December 3, 2014

Transcription

1 Regulatory Update Webinar December 3, 2014

2 Regulatory Update Webinar Northeast Midwest South & West Mid-Atlantic

3 Northeast Chris Kallaher, Sr. Director, Government & Regulatory Affairs

4 Capacity Issues Still Dominate NEPGA FERC complaint Seeks removal of Demand Response resources from FCA 9 ( Capacity Commitment period) Parties seek judicial review of FCA 8 results New Jersey BPU issues Capacity Performance order Will allow BGS suppliers to pass through increased costs; retail suppliers must petition for similar treatment Bill filed in Senate to reverse effects of DC Circuit decision on FERC Order 745 Largely symbolic Joint NYPSC/FERC technical conference Clear differences in view of capacity market NYPSC more normative than FERC

5 A Brief Tour of the States And EPA! Massachusetts DPU denies AG request to defer basic service costs Connecticut PURA issues final order on rules for marketing and ops Could affect relationship between brokers and retailers New York EPA PSC seeks comments on its clean energy initiatives US Supreme Court agrees to hear MATS case EPA aims to reduce ozone emissions by 10 percent

6 Questions?

7 Midwest Teresa Ringenbach, Sr. Manager, Government & Regulatory Affairs

8 Ohio Electric Ohio utilities file a non-bypassable rider for affiliate plants. FirstEnergy and AEP ask for multiple plants, Duke only OVEC. Utility enters a PPA and sells power into the day ahead market. Any credit/debit passed through to customers. Customers are divided Case status AEP NITS rider AEP Capacity Deferral Case Utility smart data access tariffs RMI workshops New rules effective December 1 SB 310 new items on bills

9 Illinois Electric IPA Plan final approval in December Net metering rules Muni Agg rule making remanded back to ICC New Governor = New Chair and new commissioner ComEd changes to PLC and bill changes

10 Michigan, Wisconsin and Missouri Michigan: Expect legislation to fully re-regulate February Consumers gas setting up individual customer portals. Wisconsin: We Energies fighting to eliminate solar Missouri: Tentative push for gas choice smaller customers died a quiet death. Push for electric choice is getting noise but doesn t seem to have a lot of juice yet

11 Midwest Gas Ohio: No new transport issues Working on moving Columbia C&I to 70% Illinois: Ameren small volume choice program We Energies/Integrys merger case Part 500 rulemaking Kentucky: Louisville Gas rate case watching for changes to transport programs.

12 Questions?

13 South & West Ned Ross, Director, Government & Regulatory Affairs Read Comstock, Director, Government & Regulatory Affairs 13

14 Agenda Texas Legislative Update ERCOT Resource Adequacy Operating Reserve Demand Curve ERCOT Transmission Issues Issues to Consider

15 Texas Legislative Update Texas Legislature only meets every odd numbered year for 5 months Texas policymakers have consistently supported competitive energy markets and we don t expect that to change We don t expect any legislation enacted during the 2015 Legislative Session that will significantly impact the competitive electricity market HOWEVER, some issues that could develop include: Resource adequacy Texas reaction to EPA rules Repeal of renewable and natural gas mandates Alternative Ratemaking authority for TDUs

16 ERCOT Resource Adequacy The Commission recently declared the level of reserves in the ERCOT market as healthy The Commission is changing course in the resource adequacy debate and will not implement a capacity market in the near future The implementation of a capacity market received much political resistance from consumers and recent data decreased the urgency to address resource adequacy The Economically Optimal Reserve Margin report released by the Brattle Group on January 31 st indicated that the current market structure can maintain reserves above the economically optimal reserve margin of 11.2% The ERCOT Board adopted a new long-term load forecast methodology that results in reserves close or above the current minimum target of 13.75% through 2018 Going forward the Commission will focus on addressing the reliability standard and continue to explore improving scarcity pricing in the energy market

17 Source Texas PUC

18 Source Potomac Economics - Number of hours at system-wide offer cap Level of reserves matter because reserves are one indicator as to potential for scarcity prices the other leading indicator is weather!

19 Operating Reserve Demand Curve On September 12, 2013, PUCT ordered ERCOT to implement an Operating Reserve Demand Curve (ORDC). An ORDC implements a scarcity adder to real-time energy prices based upon a curve that represents the value of lost load at certain levels of reserves. Implementation occurred on June 1, 2014 and max price in ERCOT now is $9000 per MWH

20 ERCOT Transmission Issues Competitive Energy Renewable Zone (CREZ) transmission completed on schedule Oil and natural gas related demand growth has caused significant load growth in west and south Texas Lower Rio Grande Valley (Frontera power plant decision to export to Mexico) Houston Import Project Ancillary Services overhaul targeted for 2018

21 Issues to Consider ERCOT s energy-only market structure combined with regulatory initiatives designed to increase frequency, duration, and level of scarcity prices means ERCOT can experience higher volatility than other electricity markets How are procurement strategy and product selection impacted by this potential volatility? How is procurement strategy impacted by transmission issues?

22 Questions?

23 Mid-Atlantic Ashley Ramer, Government & Regulatory Affairs Specialist

24 Thank you for attending today s Webinar! Please tell us what s important to you - short survey at: Today s slide presentation can be found at: 24