NYISO seeks changes to energy bidding

By Atlanta Business Chronicle


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Three upstate power providers may have cost consumers money by artificially inflating auction bids, the nonprofit that operates the stateÂ’s power grid has told federal regulators.

New York State Independent System Operator filed the 51-page document with the Federal Energy Regulatory Commission, which asks if it can cap the plantsÂ’ bids in the future. The three power generators are outside New York City.

The “public” version of the filing, which is posted on NYISO’s Web site, does not name the power plants or how much their alleged inflated bids cost customers.

All commercial and residental customers that buy energy from NYISO or pay for energy based on NYISO prices would be affected by the inflated bids.

“Eventually, it would trickle down to them,” NYISO spokesman Gregor Wynnyczuk said.

A power provider could be the only bidder if a generator it operates is at a strategic location.

An independent study released earlier this year alleges that New YorkÂ’s consumers pay $2 billion a year more than they should for electricity because the stateÂ’s auction system is flawed.

The study by Robert McCullough of McCullough Research in Oregon was made public in March by Assemblyman Richard Brodsky, D-Westchester. McCullough is the energy expert who helped uncover Enron Corp.Â’s energy market manipulation.

New York’s auction system works this way: Power producers bid hourly on the price they want to be paid for their electricity. NYISO stops accepting bids when the power needs are met. All the winning bidders are paid the last — and highest — wholesale bid price, known as the “market-clearing price.”

Brodsky introduced a bill during the last legislative session that would require the state Public Service Commission to tighten regulation on utilities and change the way wholesale electricity is sold in New York. Brodsky wants bidders to pay the price they bid rather than the highest bid.

“The public is being swindled by a bizarre and irrational system,” Brodsky said in a July phone interview. He described the current auction system as “anti-competitive” and “anti-free market,” and one that encourages bid manipulation.

States with similar market-rate auctions recognize defects in the program and are changing their bidding rules, Brodsky said.

Both NYISO and Albany-based Independent Power Producers of New York, the trade group that represents power generators, defend the current bidding system. They say it actually drives down the price of electricity because higher bidders take the chance of being shut out.

NYISO said that the behavior identified in its document filed with FERC involved times when one of the three operators was chosen because “it was the only available solution to a particular reliability need.”

The nonprofit focused on instances when the three generators were able to submit bids above their marginal cost “without fear that competitors would undercut their bids,” NYISO wrote in response to questions from The Business Review.

NYISO wants to develop caps when the bids involve only one supplier.

FERC will accept public comments about NYISOÂ’s proposed measures through September 25, FERC spokeswoman Barbara Connors said.

The commission will determine any action after that time.

Connors said she didnÂ’t know the names of the utilities, and wasnÂ’t sure when, or if, their identities would become public. FERC is the regulating agency for wholesale energy prices.

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Gaza’s sole electricity plant shuts down after running out of fuel

Gaza Power Plant Shutdown underscores the Gaza Strip's fuel ban, Israeli blockade, and electricity crisis, cutting megawatts, disrupting hospitals and quarantine centers, and exposing fragile energy supply, GEDCO warnings, and public health risks.

 

Key Points

An abrupt halt of Gaza's sole power plant due to a fuel ban, deepening the electricity crisis and straining hospitals.

✅ Israeli fuel ban halts Gaza's only power plant

✅ Available supply drops far below 500 MW demand

✅ Hospitals and COVID-19 quarantine centers at risk

 

The only electricity plant in the Gaza Strip shut down yesterday after running out of fuel banned from entering the besieged enclave by the Israeli occupation, Gaza Electricity Distribution Company announced.

“The power plant has shut down completely,” the company said in a brief statement, as disruptions like China power cuts reveal broader grid vulnerabilities.

Israel banned fuel imports into Gaza as part of punitive measures over the launching incendiary balloons from the Strip.

On Sunday, GEDCO warned that the industrial fuel for the electricity plant would run out, mirroring Lebanon's fuel shortage challenges, on Tuesday morning.

Since 2007, the Gaza Strip suffered under a crippling Israeli blockade that has deprived its roughly two million inhabitants of many vital commodities, including food, fuel and medicine, and regional strains such as Iraq's summer electricity needs highlight broader power insecurity.

As a result, the coastal enclave has been reeling from an electricity crisis, similar to when the National Grid warned of short supply in other contexts.

The Gaza Strip needs some 500 megawatts of electricity – of which only 180 megawatts are currently available – to meet the needs of its population, while Iran supplies about 40% of Iraq's electricity in the region.

Spokesman of the Ministry of Health in Gaza, Ashraf Al Qidra, said the lack of electricity undermines offering health services across Gaza’s hospitals.

He also warned that the lack of electricity would affect the quarantine centres used for coronavirus patients, reinforcing the need to keep electricity options open during the pandemic.

Gaza currently has three sources of electricity: Israel, which provides 120 megawatts and is advancing coal use reduction measures; Egypt, which supplies 32 megawatts; and the Strip’s sole power plant, which generates between 40 and 60 megawatts.

 

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California Legislators Prepare Vote to Crack Down on Utility Spending

California Utility Spending Bill scrutinizes how ratepayer funds are used by utilities, targeting lobbying, advertising, wildfire prevention cost pass-throughs, and CPUC oversight to curb high electricity bills and increase accountability and transparency statewide.

 

Key Points

Legislation restricting utilities from using ratepayer money for lobbying and ads, with stronger CPUC oversight.

✅ Bans ratepayer-funded lobbying and political advertising

✅ Expands prohibited utility communications and influence spending

✅ Aims to curb bills, boost transparency, and CPUC accountability

 

California's legislators are about to vote on a bill that would impose stricter regulations on how utility companies spend the money they collect from ratepayers. This legislation directly responds to the growing discontent among Californians who are already grappling with high electricity bills, as Californians ask why electricity prices are soaring amid wildfire prevention efforts.

Consumer rights groups have been vehemently critical of how utilities have been allocating customer funds, amid growing calls for regulatory action from state officials. They allege that a substantial portion of this money is being funnelled into lobbying efforts and advertising campaigns that yield no direct benefits for the customers themselves.

The proposed bill would significantly broaden the definition of what constitutes prohibited advertising and political influence activities on the part of utility companies, separate from income-based fixed electricity charges proposals that affect rate design. This would effectively restrict the ways in which utilities can utilize customer funds for such purposes.

While consumer advocacy groups have favored the legislation, it has drawn opposition from utility companies and some labor unions, as lawmakers weigh overturning income-based utility charges in parallel debates. Opponents contend that it would hinder utilities' ability to communicate effectively with their customers and advocate for their interests. Additionally, they express concerns that the bill could result in job losses within the utility sector.

The vote on the bill is expected to take place on Monday. The outcome of the vote is uncertain, but it is sure to be a closely watched development for Californians struggling with the burden of high electricity bills, with many wondering about major changes to their electric bills in the near term.

 

California's Electricity Rates: A Burden for Residents

A recent report by the California Public Utilities Commission (CPUC) revealed that the average Californian household spends a significantly higher amount on electricity compared to the national average. This disparity in electricity rates can be attributed to a number of factors, including the financial costs associated with wildfire prevention measures, investments in renewable energy infrastructure, and maintenance of aging electrical grids, even as the state considers revamping electricity rates to clean the grid.

 

Examples of Utility Company Spending that Raise Concerns

Consumer rights groups have specifically highlighted instances where utility companies have used customer money to fund lavish executive compensation packages, sponsor professional sports teams, and finance political campaigns. They argue that these expenditures do not provide any tangible benefits to ratepayers and should not be funded through customer bills.

 

The Need for Accountability and Prioritization

Proponents of the bill believe that the legislation is necessary to ensure that utility companies are held accountable for how they spend customer funds. They believe that the stricter regulations would compel utilities to prioritize investments that directly improve the quality and reliability of electricity services for Californians, alongside discussions of income-based flat-fee utility bills that could reshape rate structures.

The impending vote on the bill underscores the ongoing tension between the need for reliable electricity services and the desire to keep utility rates affordable for Californians. The outcome of the vote is likely to have a significant impact on how utility companies operate in the state and how much Californians pay for their electricity.

 

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Cost, safety drive line-burying decisions at Tucson Electric Power

TEP Undergrounding Policy prioritizes selective underground power lines to manage wildfire risk, engineering costs, and ratepayer impacts, balancing transmission and distribution reliability with right-of-way, safety, and vegetation management per Arizona regulators.

 

Key Points

A selective TEP approach to bury lines where safety, engineering, and cost justify undergrounding.

✅ Selective undergrounding for feeders near substations

✅ Balances wildfire mitigation, reliability, and ratepayer costs

✅ Follows ACC rules, BLM and USFS vegetation management

 

Though wildfires in California caused by power lines have prompted calls for more underground lines, Tucson Electric Power Co. plans to keep to its policy of burying lines selectively for safety.

Like many other utilities, TEP typically doesn’t install its long-range, high-voltage transmission lines, such as the TransWest Express project, and distribution equipment underground because of higher costs that would be passed on to ratepayers, TEP spokesman Joe Barrios said.

But the company will sometimes bury lower-voltage lines and equipment where it is cost-effective or needed for safety as utilities adapt to climate change across North America, or if customers or developers are willing to pay the higher installation costs

Underground installations generally include additional engineering expenses, right-of-way acquisition for projects like the New England Clean Power Link in other regions, and added labor and materials, Barrios said.

“This practice avoids passing along unnecessary costs to customers through their rates, so that all customers are not asked to subsidize a discretionary expenditure that primarily benefits residents or property owners in one small area of our service territory,” he said, adding that the Arizona Corporation Commission has supported the company’s policy.

Even so, TEP will place equipment underground in some circumstances if engineering or safety concerns, including electrical safety tips that utilities promote during storm season, justify the additional cost of underground installation, Barrios said.

In fact, lower-voltage “feeder” lines emerging from distribution substations are typically installed underground until the lines reach a point where they can be safely brought above ground, he added.

While in California PG&E has shut off power during windy weather to avoid wildfires in forested areas traversed by its power lines after events like the Drum Fire last June, TEP doesn’t face the same kind of wildfire risk, Barrios said.

Most of TEP’s 5,000 miles of transmission and distribution lines aren’t located in heavily forested areas that would raise fire concerns, though large urban systems have seen outages after station fires in Los Angeles, he said.

However, TEP has an active program of monitoring transmission lines and trimming vegetation to maintain a fire-safety buffer zone and address risks from vandalism such as copper theft where applicable, in compliance with federal regulations and in cooperation with the U.S. Bureau of Land Management and the U.S. Forest Service.

 

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Spain plans switch to 100% renewable electricity by 2050

Spain 2050 Renewable Energy Plan drives decarbonisation with wind and solar, energy efficiency, fossil fuel bans, and Paris Agreement targets, enabling net-zero power, emissions cuts, and just transition measures for workers and coal regions.

 

Key Points

A roadmap to 100 percent renewable power by 2050, deep emissions cuts, and a just transition aligned with Paris goals.

✅ Adds 3,000 MW of wind and solar each year through 2030

✅ Bans new fossil fuel drilling, hydrocarbon extraction, and fracking

✅ Targets 35% energy efficiency gains and 35% green power by 2030

 

Spain has launched an ambitious plan to switch its electricity system entirely to renewable sources, similar to California's 100% clean electricity mandate, by 2050 and completely decarbonise its economy soon after.

By mid-century, as EU electricity demand projections suggest increases, greenhouse gas emissions would be slashed by 90% from 1990 levels under Spain’s draft climate change and energy transition law.

To do this, the country’s social democratic government is committing to installing at least 3,000MW of wind and solar power capacity every year in the next 10 years ahead.

New licences for fossil fuel drills, hydrocarbon exploitation and fracking wells, will be banned, and a fifth of the state budget will be reserved for measures that can mitigate climate change. This money will ratchet upwards from 2025.

Christiana Figueres, a former executive secretary of the UN’s framework convention on climate change (UNFCCC), hailed the draft Spanish law as “an excellent example of the Paris agreement”. She added: “It sets a long-term goal, provides incentives on scaling up emissions technologies and cares about a good transition for the workforce.”

Under the plan, “just transition” contracts will be drawn up, similar to the £220m package announced in October, that will shut most Spanish coalmines in return for a suite of early retirement schemes, re-skilling in clean energy jobs, and environmental restoration. These deals will be partly financed by auction returns from the sale of emissions rights.

The government has already scrapped a controversial “sun tax” that halted Spain’s booming renewables sector earlier this decade, even as IEA analysis finds solar the cheapest electricity worldwide, and the new law will also mandate a 35% electricity share for green energy by 2030.

James Watson, chief executive of the SolarPower Europe trade association, said the law was “a wake-up call to the rest of the world” amid debate on the global energy transition today.

Energy efficiency will also be improved by 35% within 11 years, and government and public sector authorities will be able to lease only buildings that have almost zero energy consumption.

Laurence Tubiana, chief executive of the European Climate Foundation, and former French climate envoy who helped draft the Paris accord, described the agreement as groundbreaking and inspirational. “By planning on going carbon neutral, Spain shows that the battle against climate change is deadly serious, that they are ready to step up and plan to reap the rewards of decarbonisation,” she said.

However, the government’s hold on power is fragile. With just a quarter of parliamentary seats it will depend on the more leftwing Podemos and liberal Ciudadanos parties to pass the climate plan.

No dates were included in the legislation for phaseouts of coal or nuclear energy, and, echoing UK net zero policy shifts, a ban on new cars with petrol or diesel engines was delayed until 2040.

 

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New Jersey, New York suspending utility shut-offs amid coronavirus pandemic

NY & NJ Utility Shutoff Moratorium suspends power, heat, and water disconnections amid COVID-19, as PSEG, Con Edison, Avangrid, and American Water pledge relief, supporting vulnerable customers with payment plans and health protections.

 

Key Points

A temporary pause on power, heat, and water shutoffs during COVID-19, as major utilities act to protect affected customers.

✅ Applies to power, gas, and water; restores prior shutoffs.

✅ Voluntary utility action; no PSC order required in NY.

✅ Initial moratorium runs through April; payment plans available.

 

New Jersey and New York utilities will keep the power, heat and water on for all customers in response to the coronavirus emergency, both states announced Friday.

Major utilities have agreed to suspend utility shut-offs, a particular concern for people who may be out of work and cannot afford to pay their bills.

“No utility can turn off service … if a person cannot pay their bill as a result of responding to this virus situation,” said New York Gov. Andrew Cuomo during a press conference Friday.

Utilities in New York have voluntarily agreed to this measure, according to the governor’s office, reflecting a broader state moratorium on disconnections during emergencies. No order from the Public Service Commission is expected.

With growing concerns about the economic impacts of a virtual shutdown of businesses and large events to curtail the spread of the novel coronavirus, advocates are increasingly pushing financial relief for families amid pandemic energy insecurity pressures. There’s a campaign in New York to suspend evictions and foreclosures, with growing political support. A similar call has gone out in New Jersey.

As the weather warms, shut-offs of electric and gas service due to nonpayment tend to pick up. If people are quarantined or out of work due to a widespread economic slowdown, some advocates say they shouldn’t have to worry about having the lights or heat turned off, especially as examples of unpaid utility bills straining cities have emerged elsewhere.

“We recognize that customers may experience financial difficulty as a result of the outbreak, whether they or a family member fall ill, are required to quarantine, or because their income is otherwise affected,” said Michael Jennings, a spokesperson for Public Service Enterprise Group — the parent company of Public Service Electric and Gas Company, New Jersey’s largest utility — in a statement.

The company’s policy will be in place at least through the end of April, as will Atlantic City Electric’s, and other utilities such as PG&E's pandemic response included a similar moratorium during the outbreak.

“Curtailing shut-offs is good public policy to make sure New Jersey residents aren’t left in the lurch as they’re dealing with coronavirus,” said Eric Miller, director of the Natural Resources Defense Council’s New Jersey energy policy program. “Not having a safe place to be because you don't have electricity, gas or water doesn’t do anything to help address the coronavirus.”

Water service has also drawn attention. Major cities, including Atlanta and Detroit, have suspended shut-offs to ensure residents have water to wash their hands, while Texas utilities waived fees to support customers as well. Seattle suspended water and electric shutoffs.

American Water, which operates in 16 states and has 650,000 customers in New Jersey and 350,000 in New York, has halted any shutoffs amid the coronavirus pandemic and will also restore service, and similarly Hydro One reconnected customers in Canada to maintain access. New York City does not shut off service for nonpayment, but does issue liens against people’s property.

“Everyone, regardless as to what industry, has to have a heightened responsibility that’s encompassed in compassion and take everything into consideration,” New Jersey state Sen. Teresa Ruiz (D-Essex) told POLITICO. “Now is not the time to be worrying about late payments or bills. We need to get past this, hopefully, to see what we’re facing and then deal with other things.”

PSEG Long Island, a subsidiary of PSEG that handles day-to-day operations for the Long Island Power Authority, was the first New York utility to announce it is also suspending shutoffs before the governor’s announcement. The moratorium will remain in place through the end of April.

Rich Berkley, with the Public Utility Law Project, which advocates for low-income customers in New York, said he’s been in touch with state officials to make sure the issue of utility bills is considered during the pandemic. New York already has requirements for utilities to offer deferred payment agreements before shutting off service, he noted.

“The state has to act to protect the most vulnerable households first,” he said. “To the extent that the state is declaring areas of emergency, this should be part of the remedies the state deploys.”

But he noted that not everyone will have trouble paying their utility bills if they’re under quarantine.

“Given the background of a collapsing stock and equity market, all of which matters to the utilities, and shifts in electricity demand during COVID-19, we have to be careful about blanket moratoriums [on shutoffs] in New York,” Berkley said.

Con Edison, the largest utility in the state serving most of New York City, had already informed the Department of Public Service it will suspend all shut-offs in the one-mile radius New Rochelle containment area, spokesperson Michael Clendenin said on Thursday. The moratorium on shutoffs now includes its entire New York City and Westchester County territory.

Avangrid, which owns New York State Electric & Gas and Rochester Gas & Electric, serving broad swathes of upstate New York, will suspend shut-offs due to unpaid bills for 30 days, spokesperson Michael Jamison said.

 

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Cheap material converts heat to electricity

Polycrystalline Tin Selenide Thermoelectrics enable waste heat recovery with ZT 3.1, matching single crystals while cutting costs, powering greener car engines, industrial furnaces, and thermoelectric generators via p-type and emerging n-type designs.

 

Key Points

Low-cost tin selenide devices that turn waste heat into power, achieving ZT 3.1 and enabling p-type and n-type modules.

✅ Oxygen removal prevents heat-leaking tin oxide grain skins.

✅ Polycrystalline ingots match single-crystal ZT 3.1 at lower cost.

✅ N-type tin selenide in development to pair with p-type.

 

So-called thermoelectric generators turn waste heat into electricity without producing greenhouse gas emissions, providing what seems like a free lunch. But despite helping power the Mars rovers, the high cost of these devices has prevented their widespread use. Now, researchers have found a way to make cheap thermoelectrics that work just as well as the pricey kind. The work could pave the way for a new generation of greener car engines, industrial furnaces, and other energy-generating devices.

“This looks like a very smart way to realize high performance,” says Li-Dong Zhao, a materials scientist at Beihang University who was not involved with the work. He notes there are still a few more steps to take before these materials can become high-performing thermoelectric generators. However, he says, “I think this will be used in the not too far future.”

Thermoelectrics are semiconductor devices placed on a hot surface, like a gas-powered car engine or on heat-generating electronics using thin-film converters to capture waste heat. That gives them a hot side and a cool side, away from the hot surface. They work by using the heat to push electrical charges from one to the other, a process of turning thermal energy into electricity that depends on the temperature gradient. If a device allows the hot side to warm up the cool side, the electricity stops flowing. A device’s success at preventing this, as well as its ability to conduct electrons, feeds into a score known as the figure of merit, or ZT.

 Over the past 2 decades, researchers have produced thermoelectric materials with increasing ZTs, while related advances such as nighttime solar cells have broadened thermal-to-electric concepts. The record came in 2014 when Mercouri Kanatzidis, a materials scientist at Northwestern University, and his colleagues came up with a single crystal of tin selenide with a ZT of 3.1. Yet the material was difficult to make and too fragile to work with. “For practical applications, it’s a non-starter,” Kanatzidis says.

So, his team decided to make its thermoelectrics from readily available tin and selenium powders, an approach that, once processed, makes grains of polycrystalline tin selenide instead of the single crystals. The polycrystalline grains are cheap and can be heated and compressed into ingots that are 3 to 5 centimeters long, which can be made into devices. The polycrystalline ingots are also more robust, and Kanatzidis expected the boundaries between the individual grains to slow the passage of heat. But when his team tested the polycrystalline materials, the thermal conductivity shot up, dropping their ZT scores as low as 1.2.

In 2016, the Northwestern team discovered the source of the problem: an ultrathin skin of tin oxide was forming around individual grains of polycrystalline tin selenide before they were pressed into ingots. And that skin acted as an express lane for the heat to travel from grain to grain through the material. So, in their current study, Kanatzidis and his colleagues came up with a way to use heat to drive any oxygen away from the powdery precursors, leaving pristine polycrystalline tin selenide, whereas other devices can generate electricity from thin air using ambient moisture.

The result, which they report today in Nature Materials, was not only a thermal conductivity below that of single-crystal tin selenide but also a ZT of 3.1, a development that echoes nighttime renewable devices showing electricity from cold conditions. “This opens the door for new devices to be built from polycrystalline tin selenide pellets and their applications to be explored,” Kanatzidis says.

Getting through that door will still take some time. The polycrystalline tin selenide the team makes is spiked with sodium atoms, creating what is known as a “p-type” material that conducts positive charges. To make working devices, researchers also need an “n-type” version to conduct negative charges.

Zhao’s team recently reported making an n-type single-crystal tin selenide by spiking it with bromine atoms. And Kanatzidis says his team is now working on making an n-type polycrystalline version. Once n-type and p-type tin selenide devices are paired, researchers should have a clear path to making a new generation of ultra-efficient thermoelectric generators. Those could be installed everywhere from automobile exhaust pipes to water heaters and industrial furnaces to scavenge energy from some of the 65% of fossil fuel energy that winds up as waste heat. 

 

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