| This week's sponsor is ABB. |  | Webinar: The IT/OT Integration Imperative
April 23, 2 pm ET/ 11 am PT
Traditionally, IT and OT systems worked as separate entities; however, the smart grid requires a convergence of both. Join FierceEnergy and a panel of experts as they examine the effects on utilities that do not take steps to converge/integration their IT/OT systems. Register Today. |
Also Noted: Spotlight On... Xcel pays $1 million in efficiency rebates
EU gets aggressive on big data privacy; finding value in municipal broadband and much more... Lawsuit slams ComEd for smart meter delays
Commonwealth Edison Company's (ComEd) smart meter program has faced two years of regulatory and financing obstacles since its approval in 2011. The utility is now facing a class-action lawsuit in Illinois, alleging that it betrayed customer trust and violated regulatory agreements through collecting smart meter funding while delaying the program more than two years. Feature US faces uphill battle in Asian energy market
The U.S. energy market is full of potential and growing daily. But Asia -- and China in particular -- looms even larger for U.S. energy companies interested in raising their businesses to the next level. But while the region is primed for expansion, U.S. companies face a number of challenges to tapping this new market. Feature SDG&E: Changing the utility mentality
The Smart Grid Consumer Collaborative (SGCC) recently selected San Diego Gas & Electric (SDG&E) as one of four utilities to appear as a smart grid success case study in its 2013 State of the Consumer Report. I recently discussed in more detail the specifics of the utility's approach with SDG&E's Director of Customer Programs and Projects Ted Reguly. On the Hot Seat News From Across the Energy Industry:
1. Smart grid awareness tied to energy security
2. Prepay driving lower energy use
3. NY-Sun funds target BOS costs
Today's Top News 1. Solar trend could mean cash for utilities
 | | Credit: Sunrun. |
A new trend in solar generation could be one for utilities to cash in on.
The national trend is toward "disownership," according to solar company Sunrun. Sunrun research, conducted by Harris Interactive, explored consumers' attitudes on renting or leasing items and found that customers believe they can get more value through disownership. "These results show we've entered an age in which Americans recognize they can get more value by owning less," said Sunrun co-Founder and co-CEO Lynn Jurich. "At the same time, smart companies are creating innovative business models that offer consumers more flexible choices for accessing the things they want and need." Third-party-owned solar delivered more than $938 million to the California economy in 2012, the same amount as in the previous five years combined, and represents 74 percent of the state's 2012 home solar market, according to PV Solar Report. Utilities are losing profits to "third parties" who are handling customers' solar needs. Through innovative business modeling, utilities could become the conduit for their customers to lease or rent solar panels and create a revenue stream from traditional costs of ownership such as storage and maintenance. In fact, 53 percent of customers say they are more likely to rent or lease if it will cut down on these costs, according to Harris Interactive. For more:
- see this infographic Related Article:
CA third-party solar grows 3,332% Read more about: SunRun
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| This week's sponsor is Equifax. |  | Webinar: The Equifax Big Picture Outlook on the US Economy
Monday, April 15th, 2pm ET / 11am PT
Attend this webinar, and you'll gain a clearer understanding of current and future economic indicators along with a high-level analysis of the big issues facing markets today. Register today! |
2. Consumers blame utilities for lack of energy efficiency
New research reveals that consumers' energy-saving habits have declined over the last few years. While 75 percent of American homes need energy-efficiency improvements, energy-efficient product purchases and home improvement projects continue to fall. According to the Shelton Group, the rate of energy-efficient project completions, consumer perception of energy-efficient product incentives and other utility demand-side management programs, and overall engagement with energy efficiency programs have declined over the past three years. For example, the act of replacing incandescent bulbs with energy-efficient CFLs or LEDs is down 13 percent. The use of sealing, caulking or weatherstripping is down 17 percent. The purchase of higher-efficiency appliances is down 6 percent. Additionally, simple energy saving measures consumers can undertake at home are not catching on. For instance, 50 percent don't unplug chargers and unused appliances; 40 percent don't use energy-saving thermostat settings; and nearly 70 percent have not changed their water heater settings. An equally large amount of respondents who don't take the necessary steps to conserve precious energy resources -- 40 percent -- claim they are concerned about future generations and the environment they will inherit. "We do not understand the environmental impact of our energy use -- we're more strongly driven by our wallets when it comes to energy," said Suzanne Shelton, founder and CEO of the Shelton Group. "And even then, sometimes we'd prefer to blame our utility company than actually take responsibility for our own consumption and the ensuing monthly utility bills." Of those who have implemented energy-efficiency measures, more than 40 percent are frustrated because they aren't seeing the reduction they expected on their utility bills. For more:
- see this article Related Article:
Rural co-ops hold the secret to energy-efficiency success Read more about: Energy Efficiency, customer engagement
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3. Texas at a policy crossroad
The Texas Combined Heat and Power Initiative (TXCHPI) is working to provide policy leaders with solutions to ease water shortages and improve power supply in the face of continued drought conditions and increasingly steep water usage fines. TXCHPI contends that CHP, or cogeneration technology, reduces the water needed for energy production, as well as increases the use of natural gas. Research has shown that increasing CHP from 20 to 35 percent of the state's total electric generation by 2025 would add roughly 14,000 MW to the grid while conserving approximately 161 billion gallons of water, according to TXCHPI. "Concerns about the adequacy of our power supply and ongoing water shortage have lead Texas to a policy crossroads," said Paul Cauduro, executive director at TXCHPI. "Our solution is to remove regulatory barriers and treat CHP systems equally in the tax code in order to create a wave of CHP developments in the state's industrial and commercial sector." House Bill 2049 is currently under consideration by the Texas legislature to allow cogeneration facilities to sell electricity and thermal energy to the same customer, maximizing the efficiency of the cogenerating facilities while providing secure and reliable power without power transmission and distribution issues or line losses. House Bill 2074, if approved, would include CHP in the Texas margin tax exemptions that currently exist for renewable energy sources by allowing a corporation to deduct a small portion of the CHP system investment from their state margins tax. For more:
- see this article Related Articles:
Rolling blackouts driving resCHP
Is CHP the answer to coal retirements?
ERCOT needs CHP now more than ever
Combined heat and power to double by 2022 Read more about: power supply, Power Transmission
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4. Next-gen meters driving efficiencies for gas utilities
As in the electric meter market, residential and commercial gas meters are seeing a shift toward advanced metering infrastructure (AMI) technology to the tune of annual revenue of $258 million in 2013 to more than $1.5 billion in 2020. "The transition to the latest gas modules connected to AMI networks is just getting started," said Neil Strother a senior research analyst at Navigant Research. "Meters with one-way communications capabilities are now giving way to two-way devices that will open up a host of new benefits and efficiencies for both gas utilities and their customers." AMI technology offers remote, automated interval meter reads, as well as command and control features, increased accuracy, and the potential for enhanced energy use management. While the deployment of smart gas meters shares some characteristics with the utilization of smart electricity meters, there are significant differences in the terminology and the fundamental assumptions applied to the two markets, according to the report. Unlike electric utilities, gas utility managers can store their product and do not face the same load balancing challenges. In addition, time-of-use billing is not a priority for gas consumption, since the price does not shift dramatically during the course of a day as it does for electricity. For more:
- see this article Related Article:
Two-way communication enhances meter data for gas utilities Read more about: advanced metering infrastructure, gas utilities
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5. Florida targeting nuclear cost recovery
Florida is considering legislation that would protect utility customers from footing the bill for construction of unlicensed nuclear power plants. The state's House Energy and Utility Subcommittee approved PCB 13-01 this week. The bill lays the groundwork for alternative cost recovery mechanisms to finance the "siting, design, licensing, and construction of a nuclear power plant." State utilities will still be allowed to bump up base rates to finance the projects, but only after the generating facility is placed in commercial service. In the event that new nuclear generation forces closure of existing generation (such as a coal-fired plant), the law would allow utilities to recover costs from that loss for a period of up to five years, according to the bill. A Miami Herald report notes the bill's impact on Florida Power & Light (FPL), which has charged its customers more than $1 billion to expand its now shuttered Crystal River plant, as well as to fund development of a new plant in Levy County. That project remains unlicensed, but FPL has kept $150 million of the money as profit, according to the Herald. The bill would change cost recovery methods in the state, which were most recently set in 2006. FPL says it has requested $151 million in nuclear cost recovery for 2013, which it pegs at about $1.68 per month for a typical customer. For more:
-see this article
-see the proposed legislation
-see FPL's cost recovery fact sheet Related Articles:
Florida regulators approve nuclear cost recovery plans
FPL files to limit rate request
Read more about: Florida Power & Light
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Also Noted SPOTLIGHT ON... Xcel pays $1 million in efficiency rebates Xcel Energy's Kilowatt Crackdown has saved 74 buildings in the Twin Cities more than 9 million kilowatt-hours of electricity. The buildings retrofitted lighting, upgraded motors and variable frequency drives, implemented higher efficiency heating and cooling equipment, and conducted building tune-ups. Xcel distributed $1 million in rebates as a result of the crackdown. Article Quick news from around the web: >The EU is being more aggressive than the U.S. in addressing the definitions and impacts of big data on privacy. Article
>Is municipal broadband worth the cost? Article
>A new report shows social networks are going to be a major driver of mobile ad spending. Article
>Germany exported more energy in 2012 than at any point over the previous five years. Article
>Many utilities are beginning to realize the operational benefits of Building Energy Management Systems. Article
>Investors who finance the U.S. water infrastructure are posing clear challenges to U.S. water utilities. Article
> The Equifax Big Picture Outlook on the US Economy- April 15th, 2pm ET / 11am PT Attend this webinar, and you'll gain a clearer understanding of current and future economic indicators along with a high-level analysis of the big issues facing markets today. Register today! > The IT/OT Integration Imperative - April 23, 2 pm ET/ 11 am PT Traditionally, IT and OT systems worked as separate entities; however, the smart grid requires a convergence of both. Join FierceEnergy and a panel of experts as they examine the effects on utilities that do not take steps to converge/integration their IT/OT systems. Register Today.
| > UTC TELECOM 2013 - May 15-17 - Houston, TX Gain critical knowledge through education, networking, and access to cutting-edge information and communication technologies and services from the industry’s leading technology experts. UTC TELECOM is the vehicle to deliver your future. Register online today. > The Smart Grid Customer Education Symposium - June 17 - Nashville, TN This year’s Symposium moves from meter awareness to communications strategies around pricing programs and in-home energy management technologies. Learn from smart grid experts how to build the most comprehensive, integrated communications programs. Register at www.smartgridcustomereducation.com.
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