In today’s AUSenergy News Update: Exelon buys Integrys and takes over Chicago power deal, Study emphasizes importance of energy diversity to U.S. economy, and a measure to stop new FERC capacity zone approved by House.

Exelon buys Integrys and takes over Chicago power deal

Summary: Exelon announced that it will buy Integrys Energy Services. Integrys currently supplies electricity for 720,000 Chicagoans. It will become part of Exelon’s Constellation business unit.
AUS Comment: Integrys’ contract with the city of Chicago will expire in May of 2015. Exelon will honor the terms of that agreement. Customers will not experience any service disruptions resulting from the transaction.

Study emphasizes importance of energy diversity to U.S. economy

Summary: A report entitled, “The Value of US Power Diversity” was released by IHS, a global market and economic information company. The findings of the report emphasize the importance of diversifying the US energy fuel resources that make up the electricity market. They believe that the more diverse the power generation is the less volatile the market will be.
AUS Comment: Energy fuel diversity in the power grid allows the US market the flexibility to respond to active fuel prices by replacing one energy resource for another. By not relying upon one fuel source for the economy’s needs, the US market would see volatility in power prices diminish.

Measure to stop new FERC capacity zone approved by House

Summary: A measure that would require the Federal Energy Regulatory Commission (FERC) to eliminate a new capacity zone in the the Hudson Valley was recently approved by the House. FERC had issued an order approving the NYISO’s request to create a new Lower Hudson Valley (LHV) capacity zone effective May 1, 2014. FERC and NYISO justified the order on the grounds that by establishing the new LHV capacity zone, the LHV capacity price would send more efficient price signals. The cost of capacity for customers in the Lower Hudson Valley zone has increased as a result of the new capacity zone, and the increased cost is being passed through to customers based on the May 1, 2014 implementation date for the new zone.
AUS Comment: The rate increases are confined to the Lower Hudson Valley. Alternative Utility Services has spoken with several of our providers who are active in this area, and they have confirmed that none of our clients will be affected by this capacity change.