AUSenergy News Update 06/05/2014
Jun 5, 2014

In today’s AUSenergy News Update: Higher summer temperatures mean higher electric bills, U.S. Court of Appeals vacates FERC Order 745, and EPA releases proposed rules for US carbon emissions.


Higher summer temperatures mean higher electric bills

Summary: Pennsylvania’s Public Utility Commission is reminding consumers to look for ways to conserve energy in anticipation of the increased demand for energy from air conditioners and fans. The PUC is also urging consumers to check their electric bills, confirm their supplier, check the terms and conditions, and evaluate options from competitive suppliers.
AUS Comment: This is sound advice for any market that has deregulated its electricity.


U.S. Court of Appeals vacates FERC Order 745

Summary: The U.S. Court of Appeals has ruled 2-1 that the Federal Energy Regulatory Commission Order 745 encroaches on a state’s authority to regulate the retail power market; a position taken by utilities, who also oppose the regulation on grounds that it is overly generous to major energy users.
AUS Comment: FERC Order 745 calls for grid operators to pay the locational marginal price to economic demand response resources in real-time and day-ahead markets, as long as dispatching DR is cost-effective. Despite the ruling, demand response will continue to be an increasingly important resource.


EPA releases proposed rules for US carbon emissions

Summary: EPA director, Gina McCarthy, unveiled a Clean Power Plan to reduce carbon emissions from power generation; 30% reduction by the year 2030 as compared to 2005 levels.
AUS Comment: The EPA’s emission targets are intended as a means to gradually wean the nation off of its dependence on coal-fired power plants. The rules will likely support increased use of lower carbon-emitting fuel sources such as natural gas, solar, wind, and perhaps even nuclear. Furthermore, the rules may also spur clean energy innovations, an increase in ‘green’ jobs, and entrepreneurialism in the energy market. Opponents, however, are claiming that these new rules would result in unreasonable job losses and extremely high energy bills.

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