Posts Tagged: Regulation
European Energy Policy Oxymoron: Free Market Regulation

The European energy crisis has been a harsh lesson in Economics 101: commodity prices are set by the highest cost producers. Since natural gas is now the highest cost way of producing electricity, the electricity price has more than quintupled because the natural gas price has more than quintupled [source: Bloomberg]. Some articles have described[…]

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Jim Murchie – August 11, 2022

While EPA’s authority to regulate CO2 was confirmed in the recent Supreme Court ruling in W. Virginia v EPA, the Court left the door open. The Wall St. Journal reported today that an early draft of the Inflation Reduction Act included language to close that door and affirm EPA authority over CO2. The Parliamentarian rejected[…]

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The Most Reliable Part of the Energy System: Politicized Criticism of its Unreliability

Summer hasn’t even started and we’re already hearing warnings of impending power shortages.  Of course, everything these days is in short supply except editorial page political diatribes placing blame.  Not being experts on baby formula, we will stick with the energy system and attempt to shed some light on the underlying issues causing energy in[…]

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The Energy Blame Game and Other False Narratives

Now that petroleum and natural gas are in short supply (along with every other commodity), prices have spiked and the initial shock to our collective senses of the Russian invasion of Ukraine has been absorbed, it’s time to start passing blame. Experience informs us that the one blaming the loudest is usually the one either[…]

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Say it Ain’t So, Joe (x 2) – EIP’s Year-End Note

What Happened to the Energy Transition? The past year saw a froth of excitement about “clean” energy stocks following the election melt into the reality of an energy system that is still heavily dependent on – and not getting enough supply of – fossil fuels. West Virginia Senator Joe Manchin just stiff-armed the Build Back[…]

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Environmental Justice: California proposes no longer charging the poor for solar panels for the rich.

On December 13, 2021, California’s utility regulator (CPUC) proposed changes that would reduce the price retail customers receive for rooftop solar generated power they sell to the grid by at least 70%[1].  California has power reliability problems and (nearly) the most expensive retail electricity prices in the country.  This proposed order addresses not only costs[…]

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Biden Announces New Target for Solar Energy to Power 40% of U.S. Electric Supply

On September 8, 2021, the Biden Administration’s Energy Department released a “Solar Futures Study Providing the Blueprint for a Zero-Carbon Grid.”  Among other things, this study notes that solar energy can “power 40% of the nation’s electricity, drive deep decarbonization of the grid, and employ as much as 1.5 million people—without raising electricity prices.[1]” This[…]

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Recent events highlight the need for performance-based rate making

Our blog posts tend to cover timely news items and have been cited and used as sources for others.  We  wanted to highlight some of our recent mentions for our blog reader who are not on LinkedIn and also speak to our “behind the scenes” engagement focused on challenges facing today’s energy systems. Over the[…]

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Senate Agreement an Encouraging Step Toward Constructive Infrastructure Legislation

Key Takeaways A bipartisan majority of 67 Senators has agreed to support legislation providing for $550 billion of federal infrastructure spending.  Once formally passed by the Senate, the bill would move to the House, where it already faces opposition from some progressives. The current bill provides: $73 billion of incentives for electrical transmission to support[…]

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Polar Vortex, Texas Style

Key Takeaways: Any large-scale failure of the energy system in the U.S. will result in public policy changes that incentivize more capital spending and that is good for the regulated gas and electric monopolies that grow earnings by growing their “rate base”, the investment base upon which they earn their allowed rates of return. This[…]

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