Customer choices are changing electric and gas utility load shapes and revenues. The drivers for change include: the increased market penetrations of new or improved demand side management (DSM) technologies; distributed energy resources (DER) such as renewable energy combined heat and power (CHP); and energy storage. In response, utilities are beginning to reformulate their basic tariffs and are developing new regulatory constructs, which are beginning to show up in ratemaking dockets across the country. Examples include the controversies that have surrounded solar net metering, standby rates for combined heat and power (CHP), and FERC Order 841 that requires that the “value of energy storage” in wholesale markets be fairly compensated. Energy managers need to be forewarned about the potential sea changes being considered by utilities, even if only to help them be prepared to seek win-win solutions and regulatory relief. This paper will identify and describe the consequences of new levels of DSM and DER on utility operations and revenues, and review how retail tariffs and ISO/RTO structures may evolve to accommodate the changing energy landscape.
Edward Regan, P.E.
Strategic Utility Management LLC
Ed Regan is a registered professional engineer with over 38 years of extensive experience in utility engineering, planning, finance, and executive management. Electric generation resources he has worked with include natural gas, coal, nuclear, biomass, combined heat and power, and solar. New and profitable utility services he has had a responsible role for establishing include combined heat and power, chilled water distribution, and fiber optic based telecommunications services.
He has visited many fossil and renewable generating stations in Denmark, Germany, Belgium, Netherlands, Italy and Japan and is familiar with the wide range of electrical generation technologies and storage systems currently deployed throughout the USA and Europe.
Past president of the Florida Municipal Electric Association, Ed has also served on the Solar Electric Power Association’s board of directors and on the Settlement and Operating Committee of The Energy AuthorityTM, a municipally owned power marketing company managing in excess of 25,000 megawatts of generating capacity throughout the USA. He is currently a Senior Fellow at the University of Florida’s Public Utility Research Center.
In 2012 he created Strategic Utility Management LLC and together with associates (assembled depending on the project), has completed projects related to power supply contracts and requests for proposals, demand side management, broadband services and feasibility studies, renewable energy systems for off-grid facilities, and energy resilience and commodity acquisition for United States Navy shore facilities with an emphasis on distributed resources and microgrids.