Lave CEIC 2-5-071 Assessing Restructured Electricity Markets An APPA Symposium Lester B. Lave Carnegie Mellon Electricity Industry Center February 5, 2007.

Slides:

Advertisements

Similar presentations

Achieving Price-Responsive Demand in New England Henry Yoshimura Director, Demand Resource Strategy ISO New England National Town Meeting on Demand Response.

Advertisements

Demand Response: The Challenges of Integration in a Total Resource Plan Demand Response: The Challenges of Integration in a Total Resource Plan Howard.

EXPANSION OF TRANSMISSION SYSTEMS IN A DEREGULATED ENVIRONMENT Yong Zheng Saskatchewan Power Corporation N.A.Chowdhury University of Saskatchewan.

Alberta’s Future Electricity Needs: What’s the Real Story? Economic Developers of Alberta Annual Professional Conference April 10, 2014 John Esaiw, Director.

Transmission Independence and Investment Pricing Policy for Efficient Operation and Expansion of the Transmission Grid FERC Docket Nos. AD and.

Texas Deregulation – A Success Story The ERCOT Market Framework Has Been A Success Implementation  Bilateral Contracts - Participants contract up to 100%

1 EERMC Public Meeting on Combined Heat and Power September 17, 2013.

A Primer on Electric Utilities, Deregulation, and Restructuring of U.S. Electricity Markets W.M. Warwick July 2000 Revised May 2002.

Susan Covino Senior Consultant, Emerging Markets March 31, 2015

Alternative Models of Electric Industry Restructuring

Regulatory Barriers to the Adoption and Diffusion of Stationary Fuel Cells in Ohio William M. Bowen Professor, Public Administration and Urban Studies.

Rethinking Vertical Integration in Electricity Robert J. Michaels California State University, Fullerton 18 th Annual Western Conference.

Solutions to California’s Energy Crisis: Real-Time Pricing by Frank Wolak Chairman, Market Surveillance Committee March 17, 2001.

Texas Electricity: Forever in transition Robert Michaels Professor of Economics California State University Fullerton CA 92834

Electricity: What Texas did right, what’s left to do Robert Michaels Professor of Economics California State University Fullerton CA 92834

BA212: Class 2 An Overview of the Natural Gas and Electricity Industries.

Retail Competition and Electricity Contracts Richard Green University of Hull and CEPR.

Electric Utility Basics An overview of the electric industry in New England and the operation of consumer-owned utilities 1.

Digital Electricity Space: Neoliberalism and energy saving capital WORKSHOP. ‘CONSTRUCTING AND CONTESTING SPACES FOR LOW-CARBON ENERGY INNOVATION’, SCHOOL.

The Continuing Evolution of U.S. Electricity Markets

COMPETITIVE ELECTRICITY MARKETS March 15, PA Customer Choice Legislation  Distribution service remains regulated by PAPUC.  Transmission service.

Generation Expansion Daniel Kirschen 1 © 2011 D. Kirschen and the University of Washington.

M ICHIGAN P UBLIC S ERVICE C OMMISSION Transformation of the Electric Power Industry: Value of Regulatory Impact Assessments Greg R. White Commissioner.

Increasing Electricity Prices: Are Fuel Costs the Only Explanation? Preliminary Findings Ken Rose Independent Consultant Assessing Restructured Electricity.

The US Electricity Industry Status, Issues & Trends Valid at 27 November 1998.

Henwood Consulting What’s Up ? California Electric Generation Markets Gary L. Hunt Managing Director.

MIDWEST ENERGY OUTLOOK THE ROLE OF COMPETITIVE POWER SUPPLIERS ENERGY MARKETS IN TURMOIL May 17, 2001 Freddi L. Greenberg.

The German Electricity Market in the European context Bocconi University Karsten Neuhoff German Institute for Economic Research / Technical University.

Electric Restructuring In Pennsylvania Sonny Popowsky Pennsylvania Consumer Advocate May 10, 2007 Institute for Regulatory Policy Studies Transforming.

20 September 2015 GAZ DE FRANCE ESS Introduction of Gas Reserve Arrangements Mark Bailey Gaz de France ESS.

1 View of Federal Energy Legislation Sonny Popowsky Pennsylvania Consumer Advocate September 16, 2004 Indiana Energy Conference PA Office of Consumer Advocate.

Overview of the North American and Canadian Markets 2008 APEX Conference in Sydney, Australia October 13, 2008 Hung-po Chao Director, Market Strategy and.

Retail Competition: Managing a Difficult Transition David L. O’Connor Commissioner Massachusetts Division of Energy Resources (DOER) Presentation to National.

THE PJM INTERCONNECTION STATE OF THE MARKET REPORT 2001 Joseph E. Bowring Manager PJM Market Monitoring Unit Federal Energy Regulatory Commission June.

California’s Electricity Industry: yesterday and today James Bushnell University of California Energy Institute

Eugene T. Meehan Senior Vice President Presented at: Empowering Consumers Through Competitive Markets: The Choice Is Yours Sponsored by: COMPETE and the.

Integrated Electrics Two Steps Forward…One Step Back Scott Pearl Integrated Utility Analyst The Institute for Regulatory Policy Studies’ Energy Markets.

Liberalization of Electricity Market in Taiwan Su, Jin-sheng Energy Commission Ministry of Economic Affairs August 8, 2001.

Sec. 5 RE-REGULATION- EPAct 1992 FERC Orders 888 and 889 (1996) EPAct 2005 In short these three laws move the power industry towards an increase in competition.

Designing Utility Regulation to Promote Investment in Cost-Effective Energy Efficiency Dale S. Bryk Natural Resources Defense Council Pennsylvania.

“Demand Response: Completing the Link Between Wholesale and Retail Pricing” Paul Crumrine Director, Regulatory Strategies & Services Institute for Regulatory.

Demand Response Workshop September 15, Definitions are important Demand response –“Changes in electricity usage by end-use customers from their.

Structuring Electricity Markets Lester B. Lave Electricity Industry Center Carnegie Mellon University January 10, 2008.

PJM©2012www.pjm.com PJM’s Experience with Capacity Markets Terry Boston President & CEO PJM Interconnection Power Across Texas September 21, 2012.

Construction of Coal-Fired Generation: Evaluating the Utility Credit Implications Ellen Lapson, Managing Director Fitch Ratings, Utilities, Power & Gas.

INTRODUCTION TO INTERNATIONAL BUSINESS Global Production and Supply Chain Management Global Financial Management August 11, 2008 Discussion Section.

Demand Response: What It Is and Why It’s Important 2007 APPA National Conference San Antonio, Texas June 26, :00 a.m. to Noon Glenn M. Wilson Director.

ERCOT PROGRESS REPORT Board of Directors Austin, Texas February 18, 2003.

STEEL MANUFACTURERS ASSOCIATION Annual Members Conference FEDERAL ENERGY ISSUES Jay Brew Brickfield, Burchette, Ritts & Stone, P.C. May 2007.

Designing Energy Solutions without Borders National Association of Regulatory Utility Commissioners National Association of Regulatory Utility Commissioners.

CHANGES IN SUPPLY Brianna Coachman. INPUT COSTS  Effects of rising costs: A supplier sets output at the most profitable level, where price is equal to.

National Energy Technology Laboratory Driving Innovation ♦ Delivering Results Steve Bossart, Moderator October, 2015 USAEE Pittsburgh North American Conference.

OPOWER CONFIDENTIAL : DO NOT DISTRIBUTE 1 Energy Policy Innovation Outside VA: Views from NY and CA November 12, 2015.

Demand Response

To Buy or To Build Is it really one or the other? APPA New Generation Workshop Portland, Oregon August 1, 2007.

POSITIVE ENERGY TOGETHER ® Industry Trends Discussion MEC Conference San Antonio Texas, October 19 th, 2009 Jesse B. Langston.

Wholesale Electricity Markets: Opportunities and Challenges Howard HaasUSAEE October 27, 2015.

Mario S. DePillis Jr. USAEE Meeting, Pittsburgh, PA October 25-28, 2015.

Consumer Cost Effectiveness of Carbon Mitigation Policies in Restructured Electricity Market Jared Moore and Jay Apt (adviser) CMU Engineering and Public.

Dated: 17 February 2016 Instructor :Kashif Mehmood.

Zsuzsanna Csereklyei & David Stern

Wind Project Ownership - An Investor Owned Utility Perspective John R

Introduction to Economic Regulation

Wind Project Ownership - An Investor Owned Utility Perspective John R

Regional Transmission Organizations

EE6501 POWER SYSTEM ANALYSIS

Resilience and Reliability in PJM’s Competitive Markets

The Need for Compensatory Standby Rates

Generation Expansion Daniel Kirschen

Retail Rate Design & Administration

Presentation transcript:

Lave CEIC Assessing Restructured Electricity Markets An APPA Symposium Lester B. Lave Carnegie Mellon Electricity Industry Center February 5, 2007

Lave CEIC Accomplishments of RORR Minimized risk to investors => rapid expansion of electrical system after 1910 Incentives for reliability & customer service Universal service Help other utilities National Academy of Engineering: Electricity system greatest engineering accomplishment of 20 th century

Lave CEIC Problems with RORR Over-investment – gold plating PUC Red Tape PUC knowledge of Business & technology Focus on Efficiency or Equity or Politics? Revolving door for commissioners Punish risk-taking; little R&D Hiring risk averse managers & engineers

Lave CEIC Goals for Deregulation Lower Price now & in future through competition Customer choice Shift risks to investors Improve operations Speed innovation Lessen regulation & give managers the same freedom as unregulated companies

Lave CEIC Consequences of Deregulation Price levels & cross-subsidization Incentives for market manipulation Investment incentives: generation & transmission Industry Profits (adjust for risk & fuel price) Utilities enter other businesses (foreign utilities, water companies, telecommunications…)

Lave CEIC Today is the First Day of the Rest of Your Life PJM ad hoc adjustments: market monitor, capacity market, mitigation payments … More radical change? What else comes with new legislation & rulemaking? Re-regulation? Redesign of competitive market? –Eliminate hourly market? –Real time pricing for large customers –Fuel-Technology portfolio balancing

Lave CEIC Redesign Competitive Market? Eliminate incentive to manipulate market Have retail price reflect wholesale price Investment incentives for generation Balance Fuel-Technology portfolio (risks) RTO controls transmission (investment) Incentives for locating generation & load

Lave CEIC Success of Deregulation? Lowering Price: (absolute or relative to RORR utilities?) Customer choice (large & small customers) Improving operations Shifting risks to investors Incentives to invest Profits to companies Lower regulation more manager choice Speeding innovation