J.Pollock Blog

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A Holiday Message

The proverbial three-legged stool (i.e., Reliability, Affordability, and Sustainability) essential to the well-being of our economy and national security is facing serious challenges as a new year begins.  The North American Electric Reliability Corporation (NERC) just released its 2024 Long-Term Reliability Assessment (LTRA). The LTRA leaves a clear impression that electric reliability is being undermined not only by “explosive” demand growth, read more…

Reliability and Affordability

When asked to identify the priorities for procuring electricity, a client used the analogy of a three-legged stool: For the stool to properly function, there has to be balance.  All three legs must be the same length, otherwise the stool will become unstable and eventually fail.   The stool analogy is particularly apt in the electric industry. While there is general read more…

Exaggerated Promises?

Beware of solar projects bearing exaggerated promises! Happy Thanksgiving! US solar capacity factors retreat in 2023, break multiyear streak above 24% Tony Lenoir • Commodity Insights Wednesday, November 20, 2024 6:54 AM CT Solar capacity factors fell across all US independent system operators in 2023, sending the weighted US average below the 24% mark for the first time in at least read more…

Return of Dispatchable Generation?

In past blogs, I have described how utilities are prematurely retiring dispatchable generation before it can be replaced with similar accredited (firm) capacity. The recent article discussing Ameren’s request to build an 800 MW simple-cycle natural gas fired plant comes on the heels of a court-ordered retirement of a perfectly functional coal-fired power plant.  (BTW: As a young engineering student, I read more…

Southeast Utility Gas Expansion Plans

As Dave Lyons has stated many times, there is little coordination between Southeast Utilities to ensure the adequacy of both the supply and delivery to meet exploding load growth.  However, given the constraints, cost, and long-lead times associated with other generating resources (particularly coal, nuclear, and renewables that cannot provide 24×7 reliable power), there doesn’t seem to be any reasonable read more…

Electric Utility Negative Credit Outlooks

S&P reports that electric utilities in Florida, Texas, Virginia, and Washington should be closely watched for potential negative credit impacts of higher capital spending, particularly to address wildfire risks and resiliency.  This will be an issue in the upcoming rate cases.   Electric utilities’ negative credit outlooks reflect higher costs Tuesday, February 27, 2024 1:29 PM CT By Tom Tiernan The credit read more…

MISO Warns ‘Immediate and Serious’ ChallengesAre Threatening Reliability

In a recently published article in Power Magazine, MISO is, once again warning, about severe reliability challenges.  The challenges are the result of many factors, including: In essence, MISO is facing a “perfect storm” created by surging load growth and declining accredited capacity.  The decline is largely due to decarbonization policies that seek to replace conventional generation with renewable resources read more…

2023 Electric Utility Authorized ROEs

Rising interest rates are slowly being reflected in the return on equity (ROE) authorizations in electric rate cases decided in 2023.  Vertically integrated (generation/transmission/distribution) utilities were authorized ROEs of 9.8% (vs. 9.75% in 2022) – see the blue bar chart below.  Wires-only (distribution) utility authorized ROEs were 9.24% (vs. 9.11% in 2022) – see the orange bar chart below.   A read more…

Hawaii-Five-Uh-Oh!

I have previously warned about prematurely retiring fossil fuel plants before they can be replaced with equally capable alternatives that will not jeopardize either the reliability or affordability of electricity.  Unfortunately, there is now a real word example, in the State of Hawaii, where power outages have occurred following the early retirement of a (middle-aged) coal plant (credit to the Energy read more…

US Taxpayers Bail Out California!

One of the early and perhaps most visible benefits from the 2021 Infrastructure Law is a $1.1 billion credit provided to Pacific Gas and Electric to extend the operating life of the Diablo Canyon nuclear plant in California.  This is the same nuclear plant that California’s Governor and other energy policy gurus so desperately insisted should be retired because nuclear read more…