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FERC DER Aggregation advances debates over distributed energy resources as Congress presses action on Order 841, grid resilience, and wholesale market access, including rooftop solar, storage, and virtual power plant participation across PJM and ISO-NE.

Key Points

FERC DER Aggregation enables grouped distributed resources to join wholesale markets, providing capacity and flexibility.

? Opens wholesale market access for aggregated DER portfolios

? Aligns with Order 841, storage, and grid resilience goals

? Raises jurisdictional questions between FERC and state regulators

The Monday letter from Congressional Democrats illustrates growing frustration in Washington over the lack of FERC action on multiple power sector issues, including the aging U.S. grid and related challenges.

Last May, after the FERC technical conference, 16 Democratic Senators wrote to then-Chairman Kevin McIntyre urging him to develop guidance for grid operators on aggregated DERs.

In July, McIntyre responded, saying that FERC was "diligently reviewing the record," but the commission has taken no action since.

Since then, "DER adoption and renewable energy aggregation have continued to grow," House and Senate lawmakers wrote in their identical Monday letters, "driven not only by state and federal policies, but consumer interest in choosing cost-competitive technologies such as rooftop solar, smart thermostats and customer-sited energy generation and storage, reflecting key utility trends in the sector."

The lawmakers wrote they were "encouraged" by FERC Chairman Neil Chatterjee's comments in June 2018, writing that he "specifically cited the role DERs will play in our continued grid transition."

In that speech at the S&P Global Platts 2018 Transmission Planning and Development Conference, Chatterjee noted "growing interest" in non-transmission alternatives, including "DERs and storage."

"How the Commission treats filings associated with those first-of-kind projects could prove an important factor in investors’ assessments of whether similar non-traditional projects are bankable or not — and more broadly signal whether FERC is open to innovation in the transmission sector,” he said.

In addition to the DER order and rehearing decision on Order 841, FERC has multiple other power sector initiatives that have not seen official action in months, even as major changes to electricity pricing are debated by stakeholders.

The highest profile is its open proceeding on grid resilience, set up last January after FERC rejected a coal and nuclear bailout proposal from the Department of Energy. In October, the CEO of the PJM Interconnection, the nation’s largest wholesale power market, urged FERC to issue a final order in the docket, calling for "leadership" from the commission.

Chatterjee, however, has not indicated when FERC could decide on the case. In December, Commissioner Rich Glick told a Washington audience he is "not entirely sure where the chairman wants to go with that proceeding yet."

Outside of resilience, FERC also has open reviews of both its pipeline certificate policy and implementation of the Public Utilities Regulatory Policy Act, a key law supporting renewable energy. McIntrye set those reviews in motion during his tenure as chairman, but after his death in January the timing of both remains unclear.

In recent months, Chatterjee has also delayed FERC votes on major export facilities for liquefied natural gas and a political spending case involving PJM after impasses between Republicans and Democrats on FERC.

Two members from each party currently sit on the commission. That allows Democrats to deadlock commission votes on natural gas facilities and other issues — a partisan divide on display this week when they clashed with the chairman over offshore wind.

As the commission considers final guidance on DERs, the boundaries of federal jurisdiction are likely to be a key issue. At the technical conference, states from the Midcontinent ISO argued FERC should allow them to choose whether to let aggregated DERs participate in retail and wholesale markets. Other states argued the value proposition of distributed resources may rely on that sort of dual participation.

Despite the lack of action from FERC, some grid operators are moving forward with aggregated distributed resources in New England market reform efforts and elsewhere, demonstrating momentum. Last week, a residential solar-plus-storage aggregation cleared the ISO-NE capacity auction for the first time, committing to provide 20 MW of capacity beginning in 2022.

On the Senate side, Sens. Sheldon Whitehouse, R.I., and Ed Markey, Mass., led the letter to FERC. In the House, Reps. Peter Welch, Vt., and Mike Levin, Calif., led the signatories.

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U.S. EV Market Share Dip Q1 2024 reflects slower BEV adoption, rising PHEV demand, affordability concerns, charging infrastructure gaps, tax credit shifts, range anxiety, and automaker strategy adjustments across the electric vehicle market.

Key Points

Q1 2024 EV and hybrid share slipped as BEV sales lag, PHEVs rise, and affordability and charging concerns temper demand.

✅ BEV share fell to 7.0% as affordable models remain limited

✅ PHEV sales rose 50% YoY, easing range anxiety concerns

✅ Policy shifts and charging gaps weigh on consumer adoption

The U.S. electric vehicle (EV) market, once a beacon of unbridled growth, appears to be experiencing a course correction. Data from the U.S. Energy Information Administration (EIA) reveals that the combined market share of electric vehicles (battery electric vehicles, or BEVs) and hybrids dipped slightly in the first quarter of 2024, marking the first decline since the onset of the COVID-19 pandemic, even as EU EV share rose during lockdowns in 2020.

This news comes as a surprise to many analysts who predicted continued exponential growth for the EV market. While overall sales of electric vehicles surged into 2024 and did increase by 7% compared to Q1 2023, this growth wasn't enough to keep pace with the overall rise in vehicle sales. The result: a decline in market share from 18.8% in Q4 2023 to 18.0% in Q1 2024.

Several factors may be contributing to this shift. One potential culprit is a slowdown in battery electric vehicle sales. BEVs saw their share of the market dip from 8.1% to 7.0% in the same period. This could be attributed to a lack of readily available affordable options, with many popular EV models still commanding premium prices and concerns that EV supply may miss demand in the near term.

Another factor could be the rising interest in plug-in hybrid electric vehicles (PHEVs). PHEV sales witnessed a significant jump of 50% year-over-year, reflecting how gas-electric hybrids are getting a boost from major automakers, potentially indicating a consumer preference for vehicles that offer both electric and gasoline powertrain options, addressing concerns about range anxiety often associated with BEVs.

Industry experts offer mixed interpretations of this data. Some downplay the significance of the dip, attributing it to a temporary blip, even though EVs remain behind gas cars in total sales. They point to the ongoing commitment from major automakers to invest in EV production and the potential for new, more affordable models to hit the market soon.

Others express more concern, citing Europe's recent EV slump and suggesting this might be a sign of maturing consumer preferences. They argue that simply increasing the number of EVs on the market might not be enough. Automakers need to address issues like affordability, charging infrastructure, and range anxiety to maintain momentum.

The role of government incentives also remains a question mark. The federal tax credit for electric vehicles is currently set to phase out gradually, potentially impacting consumer purchasing decisions in the future. Continued government support, through incentives or infrastructure development, could be crucial in maintaining consumer interest.

The coming quarters will be crucial in determining the long-term trajectory of the U.S. EV market, especially after the global electric car market's rapid expansion in recent years. Whether this is a temporary setback or a more lasting trend remains to be seen. Addressing consumer concerns, ensuring a diverse range of affordable EV options, and continued government support will all be essential in ensuring the continued growth of this critical sector.

This development also presents an opportunity for traditional automakers. By capitalizing on the growing PHEV market and addressing consumer concerns about affordability and range anxiety, they can carve out a strong position in the evolving automotive landscape.

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US Electricity Generation H1 2018 saw wind and solar gains but hydro declines, as natural gas led the grid mix and coal fell; renewables' share, GWh, emissions, and capacity additions shaped the power sector.

Key Points

It is the H1 2018 US power mix, where natural gas led, coal declined, and wind and solar grew while hydro fell.

✅ Natural gas reached 32% of generation, highest share

✅ Coal fell; renewables roughly tied nuclear at ~20%

✅ Wind and solar up; hydro output down vs 2017

To complement our revival of US electricity capacity reports, here’s a revival of our reports on US electricity generation.

As with the fresh new capacity report, things are not looking too bright when it comes to electricity generation. There’s still a lot of grey — in the bar charts below, in the skies near fossil fuel power plants, and in the human and planetary outlook based on how slowly we are cutting fossil fuel electricity generation.

As you can see in the charts above, wind and solar energy generation increased notably from the first half of 2017 to the first half of 2018, and the EIA expected larger summer solar and wind generation in subsequent months, reinforcing that momentum.

A large positive when it comes to the environment and human health is that coal generation dropped a great deal year over year — by even more than renewables increased, though the EIA later noted an increase in coal-fired generation in a subsequent year, complicating the trend. However, on the down side, natural gas soared as it became the #1 source of electricity generation in the United States (32% of US electricity). Furthermore, coal was still solidly in the #2 position (27% of US electricity). Renewables and nuclear were essentially in a tie at 19.8% of generation, with renewables just a tad above nuclear.

Actually, combined with an increase in nuclear power generation, natural gas electricity production increased so much that the renewable energy share of electricity generation actually dropped in the first half of 2018 versus the first half of 2017, even amid declining electricity use in some periods. It was 19.8% this year and 20% last year.

Again, solar and wind saw a significant growth in its market share, from 9% to 9.9%, but hydro brought the whole category down due to a decrease from 9% to 8%.

The visuals above are probably the best way to examine it all. The H1 2018 chart was still dominated by fossil fuels, which together accounted for approximately 60% of electricity generation, even though by 2021 non-fossil sources supplied about 40% of U.S. electricity, highlighting the longer-term shift. In H1 2017, the figure was 59.7%. Furthermore, if you switch to the “Change H1 2018 vs H1 2017 (GWh)” chart, you can watch a giant grey bar representing natural gas take over the top of the chart. It almost looks like it’s part of the border of the chart. The biggest glimmer of positivity in that chart is seeing the decline in coal at the bottom.

What will the second half of the year bring? Well, the gigantic US electricity generation market shifts slowly, even as monthly figures can swing, as January generation jumped 9.3% year over year according to the EIA, reminding us about volatility. There is so much base capacity, and power plants last so long, that it takes a special kind of magic to create a rapid transition to renewable energy. As you know from reading this quarter’s US renewable energy capacity report, only 43% of new US power capacity in the first half of the year was from renewables. The majority of it was from natural gas. Along with other portions of the calculation, that means that electricity generation from natural gas is likely to increase more than electricity generation from renewables.

Jump into the numbers below and let us know if you have any more thoughts.

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North Carolina Utility Arrears Crisis strains households and municipal budgets as COVID-19 cuts jobs; unpaid utility bills mount, shutoffs loom, and emergency aid, unemployment benefits, and CARES Act relief lag behind rising arrears across cities.

Key Points

A COVID-19 driven spike in unpaid utility bills, threatening households and municipal budgets as federal aid lapses.

✅ 1 million families behind on power, water, sewage bills

✅ $218M arrears accrued April to June, double last year

✅ Municipal utilities face shutoffs, budget shortfalls

As many as 1 million families in North Carolina have fallen behind on their electric, water and sewage bills, a sign of energy insecurity threatening residents and their cities with severe financial hardship unless federal lawmakers act to approve more emergency aid.

The trouble stems from the widespread economic havoc wrought by the coronavirus, which has left millions of workers out of a job and struggling to cover their monthly costs as some states moved to suspend utility shut-offs to provide relief. Together, they’ve been late or missed a total of $218 million in utility payments between April 1 and the end of June, according to data released recently by the state, nearly double the amount in arrears at this time last year.

In some cases, cities that own or operate their own utilities have been forced to absorb these losses, as some utilities reconnected customers to prevent harm, creating a dire situation in which the government’s attempt to save people from the financial brink instead has pushed municipal coffers to their own breaking point.

In Elizabeth City, N.C., for example, about 2,500 residents haven’t paid their electric bills on time, according to Richard Olson, the city manager. The late payments at one point proved so problematic that Olson said he calculated Elizabeth City wouldn’t have enough money to pay for its expenses in July. In response, city leaders requested and obtained a waiver from a statewide order, similar to New York’s disconnection moratorium, issued in March, that protects people from being penalized for their past-due utility bills.

The predicament has presented unique budget challenges throughout North Carolina, while illustrating the consequences of a cash crunch plaguing the entire country, where proposals such as a Texas electricity market bailout surfaced following severe grid stress. State and federal leaders have extended a range of coronavirus relief programs since March to try to help people through the pandemic. But the money is limited and restricted — and it’s not clear whether more help from Congress is on the way — creating a crisis in which the nation’s economic woes are outpacing some of the aid programs adopted to combat them.

“We are entering a phase where the utilities [may] be able to shut off power, but what was propping up people’s economic lives, the unemployment benefits and Cares Act support, won’t be there,” said Paul Meyer, the executive director of the North Carolina League of Municipalities.

White House, GOP in disarray over coronavirus spending plan as deadline nears on expiring emergency aid

The future of that safety-net support — and other federal aid — hangs in the balance as lawmakers returned to work this week in their final sprint ahead of the August recess. The White House and congressional leaders are split over the contours of the next coronavirus relief package, including the need to extend more aid to cities and states as some utilities have waived fees to help customers, and reauthorize an extra $600 in weekly unemployment payments that were approved as part of the Cares Act in March.

Outside Washington, workers, businesses and government officials nationwide have pleaded with federal lawmakers to renew or expand those programs. Last week, Roy Cooper, the Democratic governor of North Carolina, urged Congress to act swiftly and adopt a wide array of new federal spending, including proposals for DOE nuclear cleanup funding, stressing in a letter that the “actions you take in the next few weeks are vital to our ability to emerge from this crisis. ”

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Alberta Last-Resort Power Rate Reform outlines consumer protection against market volatility, price spikes, and wholesale rate swings, promoting fixed-rate plans, price caps, transparency, and stable pricing mechanisms within Alberta's deregulated power market.

Key Points

Alberta Last-Resort Power Rate Reform seeks stable, transparent pricing and stronger consumer protections.

✅ Caps or hedges shield bills from wholesale price spikes

✅ Expand fixed-rate options and enrollment nudges

✅ Publish clear, real-time pricing and market risk alerts

Alberta’s electricity market is facing growing instability, with rising prices leaving many consumers struggling. The province's rate of last resort, a government-set price for people who haven’t chosen a fixed electricity plan, has become a significant concern. Due to volatile market conditions, this rate has surged, causing financial strain for households. Experts, like energy policy analyst Blake Shaffer, argue that the current market structure needs reform. They suggest creating more stability in pricing, ensuring better protection for consumers against unexpected price spikes, and addressing the flaws that lead to market volatility.

As electricity prices climb, many consumers are feeling the pressure. In Alberta, where energy deregulation is the norm in the electricity market, people without fixed-rate plans are automatically switched to the last-resort rate when their contracts expire. This price is based on fluctuating wholesale market rates, which can spike unexpectedly, leaving consumers vulnerable to sharp price increases. For those on tight budgets, such volatility makes it difficult to predict costs, leading to higher financial stress.

Blake Shaffer, a prominent energy policy expert, has been vocal about the need to address these issues. He has highlighted that while some consumers benefit from fixed-rate plans, with experts urging Albertans to lock in rates when possible, those who cannot afford them or who are unaware of their options often find themselves stuck with the unpredictable last-resort rate. This rate can be substantially higher than what a fixed-plan customer would pay, often due to rapid shifts in energy demand and supply imbalances.

Shaffer suggests that the province’s electricity market needs a restructuring to make it more consumer-friendly and less vulnerable to extreme price hikes. He argues that introducing more transparency in pricing and offering more stable options for consumers through new electricity rules could help. In addition, there could be better incentives for consumers to stay informed about their electricity plans, which would help reduce the number of people unintentionally placed on the last-resort rate.

One potential solution proposed by Shaffer and others is the creation of a more predictable and stable pricing mechanism, though a Calgary electricity retailer has urged the government to scrap an overhaul, where consumers could have access to reasonable rates that aren’t so closely tied to the volatility of the wholesale market. This could involve capping prices or offering government-backed insurance against large price fluctuations, making electricity more affordable for those who are most at risk.

The increasing reliance on market-driven prices has also raised concerns about Alberta’s energy policy changes and overall direction. As a province with a large reliance on oil and gas, Alberta’s energy sector is tightly connected to global energy trends. While this has its benefits, it also means that Alberta’s electricity prices are heavily influenced by factors outside the control of local consumers, such as geopolitical issues or extreme weather events. This makes it hard for residents to predict and plan their energy usage and costs.

For many Albertans, the current state of the electricity market feels precarious. As more people face unexpected price hikes, calls for a market overhaul continue to grow louder across Alberta. Shaffer and others believe that a new framework is necessary—one that balances the interests of consumers, the government, and energy companies, while ensuring that basic energy needs are met without overwhelming households with excessive costs.

In conclusion, Alberta’s last-resort electricity rate system is an increasing burden for many. While some may benefit from fixed-rate plans, others are left exposed to market volatility. Blake Shaffer advocates for reform to create a more stable, transparent, and affordable electricity market, one that could better protect consumers from the high risks associated with deregulated pricing. Addressing these challenges will be crucial in ensuring that energy remains accessible and affordable for all Alberta residents.

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Nevada Renewable Portfolio Standard 2030 targets 50% clean energy, advancing solar, geothermal, and wind, cutting GHG emissions, phasing out coal, and expanding storage, EV infrastructure, and in-state renewables under PUCN oversight and tax abatements.

Key Points

A state mandate requiring 50% of electricity from renewables by 2030, driving solar, geothermal, wind, and storage.

✅ 50% clean power by 2030; 100% carbon-free target by 2050

✅ Growth in solar, geothermal, wind; coal phase-out; natural gas remains

✅ RETA incentives spur 6.1 GW capacity, jobs, and in-state investment

Nevada is on track to meet its Renewable Portfolio Standard of 50% of electricity generated by renewable energy sources by 2030, according to the Governor's Office of Energy's annual Status of Energy Report.

Based on compliance reports the Public Utilities Commission of Nevada has received, across all providers, about 20% of power is currently generated by renewable resources, and, nationally, renewables ranked second in 2020 as filings show Nevada's investor-owned utility and other power providers have plans to reach the state's ambitious RPS of 50% by 2030, according to the report released Jan. 28.

"Because transportation and electricity generation are Nevada's two largest contributors to greenhouse gas emissions, GOE's program work in 2021 underscored our focus on transportation electrification and reaching the state's legislatively required renewable portfolio standard," GOE Director David Bobzien said in a statement Jan. 28. "While electricity generated from renewable resources currently accounts for about 25% of the state's electricity, a share similar to projections that renewables will soon provide about one-fourth of U.S. electricity overall, we continue to collaborate with the Public Utilities Commission of Nevada, electricity providers, the renewable energy industry and conservation organizations to ensure Nevada reaches our target of 50% clean energy by 2030."

The state's RPS, enacted in 1997 and last modified in 2019, requires an increase in renewable energy, starting with 22% in 2020 and increasing to 50% by 2030. The increase in renewables will reduce GHG emissions and help the state reach its goal of 100% carbon-free power by 2050, while states like Rhode Island have a 100% by 2030 plan, highlighting varying timelines.

Renewable additions
The state added 1.332 GW of renewable capacity in 2021 as part of the Renewable Energy Tax Abatement program, at a time when U.S. renewable energy hit a record 28% in April, for a total renewable capacity of 6.117 GW, according to the report.

The RETA program awards partial sales and use tax and partial property-tax abatements to eligible renewable energy facilities, which increase Nevada's tax revenue and create jobs in a growing industry. Eligible projects must employ at least 50% Nevada workers, pay 175% of Nevada's average wage during construction, and offer health care benefits to workers and their dependents.

Since its adoption in 2010, the GOE has approved 60 projects, including large-scale solar PV, solar thermal, biomass, geothermal and wind projects throughout the state, according to the report. Projects granted abatements in 2021 include:

• 100-MW Citadel Solar Project
• 150-MW Dry Lake Solar + Storage Project
• 714-MW Gemini Solar Project
• 55-MW North Valley Power Geothermal Project
• 113-MW Boulder Flats Solar Project
• 200-MW Arrow Canyon Solar Project

"Nevada does not produce fossil fuels of any significant amount, and gasoline, jet fuel and natural gas for electricity or direct use must be imported," according to the report. "Transitioning to domestically produced renewable resources and electrified transportation can provide cost savings to Nevada residents and businesses, as seen in Idaho's largely renewable mix today, while reducing GHG emissions. About 86% of the fuel for energy that Nevada consumes comes from outside the state."

Phasing out coal plants
Currently, more than two-thirds of the state's electricity is produced by natural gas-fired power plants, with renewables covering most of the remaining generation, according to the report. Nevada continues to phase out its remaining coal power plants, as renewables surpassed coal nationwide in 2022, which provide less than 10% of produced electricity.

"Nevada has seen a significant increase in capturing its abundant renewable energy resources such as solar and geothermal," according to the report. "Renewable energy production continues to grow, powering Nevada homes and business and serves to diversify the state's economy by exporting solar and geothermal to neighboring states, as California neared 100% renewable electricity for the first time. Nevada has more than tripled its renewable energy production since 2011."

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