Adverse Impacts of Poor Governance

Continuing from my last post regarding poor governance, both the EPA and Federal Appeals Court have taken recent actions that will affect grid reliability and future electricity costs.   With respect to the EPA, on April 5, the EPA moved to strengthen a mercury pollution rule for coal-fired power plants on the assumption that the vast majority of affected generators are read more…

EPA Finalizes Good Neighbor Rule

It is unfortunate, if not shameful, that an important government agency is implementing rules that could seriously compromise the reliability of the electricity grid.  Yet, it is clear that EPA considered only the improvement in air quality and ignored the downstream impact of its “Good Neighbor” rule — higher costs and diminished reliability of electricity – in determining that the read more…

The End of Coal

The Inflation Reduction Act (IRA) is frequently cited for the proposition that renewable energy resources will become more competitive with traditional generating plant technologies.  However, it may come as a surprise that researchers are now claiming that renewables are more economical than all (but 1) of the remaining coal plants.   This is the conclusion of the just released Coal Cost read more…

Resource Adequacy and Reliability

This should be yet another wake-up call that the more rapid retirement of generation capacity is placing pressure on system operators’ ability to keep the lights on, particularly during more stressful periods.   MISO is not the only region facing an imminent threat.   MISO facing increasingly thin reserve margins due to plant retirements – NERC EXTRA Thursday, December 15, 2022 3:24 PM read more…

The Energy Transition

All is not well in “Grid-Land.”  The NYISO and MISO have recently issued warnings about the challenges to maintaining a reliable system in meeting decarbonization mandates (see the S&P articles below).  Especially concerning is that mandates are accelerating the retirement of older fossil-fuel units that the RTOs say are needed to avert capacity shortages.  More concerning is the growing reality read more…

A Call for Candor

There is no shortage of bold energy transition plans, as numerous governmental leaders and think tanks have proposed aggressive actions to fully decarbonize electricity generation over the next few decades.  Importantly, although the goal may be the same, the many transition plans employ different assumptions and means to achieve the goal.  That there are important differences warrants debate.   We have read more…