Tag Archives: Pricing

Electric Demand Charges: A Lesson from the Telephone Industry

The only ad with prices that I remember from 50 years ago was AT&T’s offering of a three minute coast to coast telephone call for $1.00.  With the inflation that we have seen over the last 50 years, one would … Continue reading

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Net Metering–Morphing Customers Who Self Generate

The U.S. Public Utilities Regulatory Policy Act of 1978 started a flood of non-utility generation, initially a few very large cogeneration plants and recently a large number of small roof top solar generation.[1]  The rapid growth in the number of … Continue reading

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Utility 2.0 or Just Utility 1.X

On Tuesday, 2013 October 29, I attended a discussion of the report “Utility 2.0: Building the Next-Gen Electric Grid through Innovation.”  I left feeling that the innovations discussed are just more of the same, just as I have often described … Continue reading

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A Romp Through Restructuring

Today I presided over the monthly lunch of the National Capital Area Chapter (NCAC) of the U.S. Association for Energy Economics, with Craig Glazer, Vice President-Federal Government Policy, PJM Interconnection.  Besides announcing future events and talking about the successful NCAC … Continue reading

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The Electric Transmission Grid and Economics

Tuesday, 2013 October 8, I went to the MIT Club of Washington Seminar Series dinner with Anjan Bose of Washington State University talking about Intelligent Control of the Grid.  Anjan began with giving two reasons for the transmission grid but … Continue reading

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System of Governance

On 2013 February 27 & 28, I attended the National Research Council’s workshop on “Terrorism and the Electric Power Delivery System.” Though “terrorism” was in the title of the report issued November 2012, the issues were as applicable to natural … Continue reading

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Oil Storage

During the Arab oil embargo of 1973, some people speculated that the US had a strategic petroleum reserve in the form of gasoline sitting in the driveways of most suburban homes.  The speculation was that many people made a point … Continue reading

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Economic Failures Contribute to Indian Grid Blackouts

On 2012 July 30 and July 31, India experienced massive blackouts on its electricity grid. The first blackout was early in the morning of July 30 and affected only the Northern Region. The second failure was at midday on July … Continue reading

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Grid Security in India

India prices Unscheduled Interchange (UI) in a way that combines economics with reliability. Frequency excursions change the price of UI. The staff of the Indian CERC is proposing to change the formula used for UI in a way that generates substantial net income for the federally owned grid. Continue reading

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“Too Much of a Good Thing” Revisited

Spot electricity prices sometimes need to vary widely from the dispatch prices established by an ISO so that generators and consumers see an impact on the average charge. Continue reading

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