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At least 19 records

What does the future hold for utility electricity efficiency programs?

Here, this study develops projections of future spending and savings from electricity efficiency programs funded by electric utility customers in the United States through 2030 based on three scenarios. Our analysis relies on detailed bottom-up modeling of current state energy efficiency policies, demand-side management and integrated resource plans, and regulatory decisions. The three scenarios represent a range of potential outcomes given the policy environment at the time of the study and uncertainties in the broader economic and state policy environment in each state. We project spending to increase to $8.6 billion in 2030 in the medium scenario, about a 45 percent increase relative to 2016 spending. In the high case, annual spending increases to $11.1 billion in 2030 and remains relatively flat in the low case ($6.8 billion in 2030). Our analysis suggests that electricity efficiency programs funded by utility customers will continue to impact load growth significantly at least through 2030, as savings as a percent of retail sales are forecast at 0.7 percent in the medium scenario and 0.98 percent in the high scenario.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

A Snapshot of EV-Specific Rate Designs Among U.S. Investor-Owned Electric Utilities

EV-specific electric utility rates have a profound effect on the underlying economics motivating EV adoption. State utility regulators and electric utilities play a critical role in approving and designing rates, respectively. However, the nascence of the EV industry has resulted in regulators’ and utilities’ having very limited experience with EV-specific rate designs. This suggests there could be substantial benefit from efforts intended to provide a better understanding of how EV-specific rates are designed presently in the United States. To meet that need, Berkeley Lab researchers, with support from E9 Insight, developed a database of piloted, proposed, and offered rates among U.S. investor-owned utilities (IOUs) between 2012 and 2022. The database is comprised of 217 electric utility retail rates from IOUs in 38 states and the District of Columbia that either required proof of EV ownership or were otherwise designed for the purposes of reselling energy for use in EV charging (i.e., EV-specific rates). The analysis of the database identifies the EV-specific rate designs currently observed, infers a number of policy-driven objectives, and suggests a number of next steps for future research.

33 ADVANCED PROPULSION SYSTEMS↗

Electric Utility Industry Standards Landscape

The electric utility industry relies on robust communication protocols to manage complex electrical grid data. The inherent networked nature of electrical grids, coupled with the radial structure of the “last mile” portion delivering power to end-use customers, presents difficulties in describing electrical models using simple data constructs. The paper provides an overview of communication protocols that address electric utility data, including grid data, and classifies these protocols through identification key characteristics that make them suitable for different electric grid data domains. Because of their variety, grid edge devices and their associated dedicated protocols are assessed by groups: those primarily designed for energy production and storage, those related to flexible loads, and those related to electric vehicles. The intent of this report is to provide guidance for stakeholders to navigate the challenges posed by the numerous overlapping protocols available to address electric grid data. Although further industry review, refinement, and validation of the categorization of these protocols is recommended, the authors propose this categorization as a start to improve electric grid awareness and understanding. In addition, this report includes three recommended industry actions regarding protocols to improve communications on the electric grid.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The Distribution of U.S. Electric Utility Revenue Decoupling Rate Impacts from 2005 to 2017

Investments in energy efficiency and distributed generation reduce electric utility retail sales. Since electric utilities have historically collected a large portion of revenues from volumetric energy rates (¢/kWh), such reductions in sales can impact the utility’s ability to sufficiently recover non-production costs. Regulatory mechanisms that “decouple” utility revenues from sales were implemented to help make the utility indifferent to energy efficiency and distributed generation by ensuring the utility is able to collect an allowed level of revenue each year regardless of its sales. However, noticeable and consistent surcharges over time may create the perception of an incorrectly designed or implemented decoupling mechanism. To date, there are limited quantitative analyses of the rate adjustments due to decoupling mechanisms implemented among U.S. electric utilities (see Morgan, 2013). Given the recent rapid increase in distributed energy resource (DER) adoption in some states and utility service territories, consumers may be facing more prevalent and ongoing decoupling surcharges. This, in turn, may undermine stakeholder support for implementation of decoupling mechanisms and the associated utility support for energy efficiency and DERs. To determine the size of retail rate adjustments associated with decoupling mechanisms and whether they have a tendency towards bill surcharges or credits, we analyzed a large dataset of historical annual decoupling rate adjustments for 21 electric utilities in 11 states between 2005 and 2017. We found that decoupling mechanisms adjusted rates, both up and down, between rate cases, and the majority of those adjustments (54 percent) are small (within a range of -1 to 1 percent). However, we also found that 64 percent of the rate adjustment observations in our sample showed a positive rate adjustment. Importantly, once a surcharge is applied there is an 86 percent chance that there will be a surcharge in the next year as well. While our analysis did not seek to understand the root causes for such results, some possible factors include the accuracy of revenue requirement forecasts, emerging structural changes in customer use and production of energy, misaligned financial motivation, and other factors that influence sales (e.g., economic recession).

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

The use of wholesale market purchases by Western U.S. electric utilities

Load Serving Entities (LSEs) can procure electricity from their owned generation or purchase it on bilateral or centrally organized markets. Electric utility procurement decisions have important implications for resource adequacy, which is gaining attention especially in the Western U.S. However, there is little or no research on trends of utility procurement practices, and the role that wholesale market transactions can have for resource adequacy and other applications. This paper leverages information from the U.S. Department of Energy’s Energy Information Administration, Berkeley Lab’s Resource Planning Portal, and structured interviews with regulatory and utility staff. We find that use of market transactions to meet electric energy needs has been increasing across U.S. LSEs. The reasons for this trend include a general stagnation in building owned resources, a preference towards contracting renewable energy resources to meet RPS targets, and the lower relative cost of wholesale market electricity. Among market transactions across different time scales, short-term transactions were prevalent in Western U.S. LSEs until the 2008 recession, and thereafter declined to about a quarter of total purchases. In contrast, long-term market transactions have become more prevalent and resource planning reports project the share of these transactions in the procurement mix may continue to increase. Results suggest resource adequacy obligations may drive preferences for asset ownership more than a profit incentive. We also recommend improving the planning to procurement connection by reflecting in planning assumptions the operational constraints of market transactions. These results provide insights on key issues in electric utility procurement that could improve overall market efficiency, respond to rapidly changing industry conditions, and identify practices that LSEs and regulators should consider incorporating into their long-term transmission and capacity planning processes.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Improving the Accuracy of Clustering Electric Utility Net Load Data using Dynamic Time Warping

Identifying patterns in electric utility net load data in a time-series format is very useful in preparing the operation for next day. Machine learning algorithms have been used in other domains and those concepts are applied in this paper on real-world net load measurement data. Clustering is the practice of grouping data with similar characteristics as determined by the distance measure. The K-means clustering algorithm is utilized here with actual electric utility data. The paper uses the standard distance measure, Euclidean distance (ED), and compares its performance against the dynamic time warping (DTW) measure. An actual case study with real data is presented, and DTW distance measure-based method observed to result better accuracy compared to the ED based method for substation net load measurements predominantly with residential customers.

clustering↗

A Handbook for Designing, Implementing, and Evaluating Successful Electric Utility Pilots

Since at least the late 1970s, electric utilities and their regulators have recognized the value of experimentation to motivate innovation. The industry has a long history of using pilots to help inform future decision making about electric utility rates, customer technology adoption and integration, and even changes to the utility’s regulatory or business model. Although utility pilots have become almost ubiquitous proving grounds for new rates, technologies, and alterations to the traditional utility regulatory and business model, some regulators are beginning to raise questions about what constitutes a “good” pilot. Much has been written about utility pilots over the years; however, what is missing from the literature is the identification of a comprehensive process for not only designing and evaluating a pilot, but also implementing, successful utility pilots that provide actionable outcomes upon which more informed decisions can be made. This report provides a step-by-step process that regulators, policymakers, and utilities can follow to help promote a more successful pilot, even if whatever is being tested fails to produce the intended or expected result(s). It is worth noting that this report is not intended to serve as a technical resource for those designing, implementing, and evaluating pilots. However, there are myriad references provided for those wishing to delve deeper into the technical details.

24 POWER TRANSMISSION AND DISTRIBUTION↗

Analyzing Distributed Processing For Electric Utilities

Distributed Processing Trade-Off Model for Electric Utility Operation computer program based upon study performed at California Institute of Technology for NASA's Jet Propulsion Laboratory. Study presented technique addressing question of tradeoffs between expanding communications network or expanding capacity of distributed computers in energy-management systems (EMS) of electric utility. Gives EMS planners macroscopic tool for evaluation of architectures of distributed-processing systems and major technical and economic tradeoffs as well as interactions within systems.

Klein, Stanley A.↗

Emerging Best Practices for Electric Utility Planning with Climate Variability: A Resource for Utilities and Regulators

This report is intended to support electric utilities and regulators as they work together to increase the climate resilience of the power system in the United States. It focuses on best practice methods and examples of conducting utility forecasting with climate change (Section 2) as well as three overlapping types of electric utility planning for climate change: resource planning (Section 3), asset planning (Section 4), and contingency planning (Section 5). This report also addresses data development and access (Section 6), emerging pathways for planning including decision-making under deep uncertainty and storylines approaches (Section 7), regulatory considerations (Section 8), and coordination and innovative funding and cost sharing approaches to planning for climate variability (Section 9).

24 POWER TRANSMISSION AND DISTRIBUTION↗

National Maglev initiative: California line electric utility power system requirements

The electrical utility power system requirements were determined for a Maglev line from San Diego to San Francisco and Sacramento with a maximum capacity of 12,000 passengers an hour in each direction at a speed of 300 miles per hour, or one train every 30 seconds in each direction. Basically the Maglev line requires one 50-MVA substation every 12.5 miles. The need for new power lines to serve these substations and their voltage levels are based not only on equipment loading criteria but also on limitations due to voltage flicker and harmonics created by the Maglev system. The resulting power system requirements and their costs depend mostly on the geographical area, urban or suburban with 'strong' power systems, or mountains and rural areas with 'weak' power systems. A reliability evaluation indicated that emergency power sources, such as a 10-MW battery at each substation, were not justified if sufficient redundancy is provided in the design of the substations and the power lines serving them. With a cost of $5.6 M per mile, the power system requirements, including the 12-kV DC cables and the inverters along the Maglev line, were found to be the second largest cost component of the Maglev system, after the cost of the guideway system ($9.1 M per mile), out of a total cost of $23 M per mile.

Save, Phil↗

Electric utility companies and geothermal power

The requirements of the electric utility industry as the primary potential market for geothermal energy are analyzed, based on a series of structured interviews with utility companies and financial institution executives. The interviews were designed to determine what information and technologies would be required before utilities would make investment decisions in favor of geothermal energy, the time frame in which the information and technologies would have to be available, and the influence of the governmental politics. The paper describes the geothermal resources, electric utility industry, its structure, the forces influencing utility companies, and their relationship to geothermal energy. A strategy for federal stimulation of utility investment in geothermal energy is suggested. Possibilities are discussed for stimulating utility investment through financial incentives, amelioration of institutional barriers, and technological improvements.

Pivirotto, D. S.↗

An overview of large wind turbine tests by electric utilities

A summary of recent plants and experiences on current large wind turbine (WT) tests being conducted by electric utilities is provided. The test programs discussed do not include federal research and development (R&D) programs, many of which are also being conducted in conjunction with electric utilities. The information presented is being assembled in a project, funded by the Electric Power Research Institute (EPRI), the objective of which is to provide electric utilities with timely summaries of test performance on key large wind turbines. A summary of key tests, test instrumentation, and recent results and plans is given. During the past year, many of the utility test programs initiated have encountered test difficulties that required specific WT design changes. However, test results to date continue to indicate that long-term machine performance and cost-effectiveness are achievable.

Vachon, W. A.↗

A Review of Water and Climate Change Analysis in Electric Utility Integrated Resource Planning

The purpose of this paper is to examine the extent to which electric utility integrated resource plans (IRPs) evaluate the impact of water constraints on electric generation resource portfolios and the extent to which IRPs consider the impacts of climate change to generation and loads. This white paper reviewed 30 IRPs to determine best practices with respect to analyzing and reporting on potential water-based and climate change risks within the integrated resource planning process. Best practices from electric utility IRPs are identified and additional recommendations and considerations are put forth. In recent years, thermal generating facilities have experienced challenges with water availability: a shortage of cooling water, conditions in which incoming cooling water is too warm for optimal operation, and/or water discharge temperatures exceeding permit limits. S&P Global Market Intelligence recently reported on a study that identified for the year 2030, 98.2 gigawatts (GW) of coal capacity at risk due to water stress. Climate change effects on hydrological cycles may adjust the timing, temperature, and volume of water availability for thermal electric cooling and for hydropower generation, which could further exacerbate the frequency and duration of operational constraints. Climate change can also impact the timing and intensity of electric loads that utilities must serve, most notably for heating and cooling.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗

Ceramic thermal barrier coatings for electric utility gas turbine engines

Research and development into thermal barrier coatings for electric utility gas turbine engines is reviewed critically. The type of coating systems developed for aircraft applications are found to be preferred for clear fuel electric utility applications. These coating systems consists of a layer of plasma sprayed zirconia-yttria ceramic over a layer of MCrAly bond coat. They are not recommended for use when molten salts are presented. Efforts to understand coating degradation in dirty environments and to develop corrosion resistant thermal barrier coatings are discussed.

Miller, R. A.↗

The distribution of U.S. electric utility revenue decoupling rate impacts from 2005 to 2017

Electric utilities have historically relied on volumetric energy rates. Reductions in sales can have an adverse effect on a utility's ability to sufficiently recover its costs. Decoupling mechanisms, when properly designed, diminish the link between revenues and sales. Additionally, analysis of annual rate adjustments from decoupling mechanisms indicate the majority of those adjustments are small. However, once a surcharge is applied there is an 86 percent chance there will be a surcharge in the next year.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI↗

Conceptual design of thermal energy storage systems for near term electric utility applications

Potential concepts for near term electric utility applications were identified. The most promising ones for conceptual design were evaluated for their economic feasibility and cost benefits. The screening process resulted in selecting two coal-fired and two nuclear plants for detailed conceptual design. The coal plants utilized peaking turbines and the nuclear plants varied the feedwater extraction to change power output. It was shown that the performance and costs of even the best of these systems could not compete in near term utility applications with cycling coal plants and typical gas turbines available for peaking power. Lower electricity costs, greater flexibility of operation, and other benefits can be provided by cycling coal plants for greater than 1500 hours of peaking or by gas turbines for less than 1500 hours if oil is available and its cost does not increase significantly.

Hall, E. W.↗

Survey of spatial data needs and land use forecasting methods in the electric utility industry

A representative sample of the electric utility industry in the United States was surveyed to determine industry need for spatial data (specifically LANDSAT and other remotely sensed data) and the methods used by the industry to forecast land use changes and future energy demand. Information was acquired through interviews, written questionnaires, and reports (both published and internal).

Source record↗