Jeff Dowdell, PE, CEM

I find the approach highlighted in this article refreshing. This represents an old school concept of resource adequacy, namely, don't put all your eggs in one basket, i.e., develop a diversified resource portfolio to meet reduced carbon emission goals. This is a no nonsense, technically feasible, realistic approach to the problem. It is a shame that others adopt an all or nothing approach in support of their particular resource preference. This diversified approach should be adopted industry wide. #resourceadaquacy #renewables #generation #hydro

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Interesting article in Energy Central about several governors in the PJM footprint suggesting that PJM do more to lower costs and implying that the capacity auction was perhaps the problem. https://lnkd.in/gRWQaYtw Of course, PJM had to write a politically correct response that replied without answering. I actually think these kinds of replies are less respectful than terse ones that actually respond. Perhaps they should have been less politically correct and answered with something like this: ************************************************** Dear Governors: We agree that costs to electric consumers are a major concern as is grid reliability. Here are our suggestions: 1. Stop passing crazy policies that drive up costs and do little to reduce carbon emissions (aka "green new deal" stuff). This is the main cause of cost increases (there is a direct correlation between states with crazy policies and cost increases). 2. Help get transmission lines and reliable power plants built by directing state agencies and regulators to work with federal and local government to get things done. 3. Let people who actually know how to run the electric system run it. Very Truly Yours, PJM and everyone else in the electric utility industry

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While there has been some reasonable coverage of energy inflation of oil & gasoline in the last three years, the significant inflation of power prices has been under reported. This afternoon as you can read below, the auction for next year’s “capacity prices” for power in the PJM region (mostly the mid Atlantic and some midwest states) just jumped in the auction by 933% above this year’s. That is amazingly stunning inflation. As a customer, your power bill has three components: generation (the wholesale power generated at the power plants), transmission (the big lines running from power plants to towns), and distribution(the local lines in your town). While the latter two move up slowly as lines are built, the “generation” component is very dependent on wholesale power markets, and how many plants and what type plants are shutdown & built vs power demand. And capacity prices are a material component of generation prices. “Capacity contracts” are similar to having utility customers buying the ability to call on those power plants, and those prices will jump 933% next year for those of you in Pennsylvania, NJ, Ohio, MD, etc. I estimate for those of you there that your delievered prices might jump 25-50% next year as a result of this component of your bill jumping 933% Why has that occurred? We are shutting down more power plants than we are building in most regions of the US. Aka we are “de-electrifying”. And the ones we are shutting down usually run ~90% of the time, and the ones we are building run about 35% of the time. So its a double hit. And so we get 933% increase in capacity prices. Its important for people to understand this very material energy inflation is accelerating. And for those looking at electrification of the economy, this is a challenge. https://lnkd.in/erRKT_p3

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This article states grid operators are not effectively using inter-regional ties. At least from my experience in the northeast, the operators’ hands are generally tied by market rules. Transactions across inter-regional ties between the BAs/RCs are scheduled according to the bids submitted into the market. They are scheduled based on the LMPs in each of the respective systems relative to the submitted bids of the transactions. The operators in most cases are precluded from scheduling any energy across the inter-regional ties short of emergency assistance. Operators moving energy based on their view of economics and where power should be flowing results in them being crucified by the stakeholders for potentially manipulating the market and the prices. I’m not really sure where this conclusion came from but it does operators a disservice. #NREL #energyscheduling #operations

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No new gas-fired power plants are expected to come online in 2024 in PJM. The last time that happened was 1987 according to EIA data. The chart below shows the number of newly commissioned individual gas turbines and IC engines in the core PJM area (NJ, PA, OH, MD, DE, VA and WV) and includes behind-the-fence generation. EIA data for 2023 is not available yet but new capacity did come online according to S&P Global. Data from U.S. Energy Information Administration PJM Interconnection, #power #renewables #solar #naturalgas

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Canary Media: "This coal-heavy rural coop utility is buying its first solar plants." Tri-State Generation and Transmission Association, one of the largest rural cooperative utilities in the U.S., really should change its name to Quad-State. The reason is that Tri-State generates and transmits power to 41 member cooperatives, which retail to 1 million customers in rural Colorado, New Mexico, Wyoming, and Nebraska. "The customer base spans 200,000 square miles, more land than the entirety of California, with an average density of just five customers per mile of power line." [American cooperative utilites deliver some 12% of our electricity but serve 56 percent of its landscape]. Co-op 'announced last week it will buy the forthcoming Axial Basin Solar, a 145-megawatt project in Moffat County, Colorado, and Dolores Canyon Solar, a 110-​megawatt project in Dolores County, Colorado.' The co-op also signed 3 new power purchase agreements from solar plants that will come on line by end of 2024. "Within days of that announcement, Tri-State also reported that electricity was flowing from the largest third-party solar project it has contracted for thus far, a 200-megawatt site developed by Origis Solar at the former Escalante Station coal-fired power plant in New Mexico." US 'incubated its renewables industry with tax credits, which don’t do much good for the many federal, municipal, or cooperative utilities that generate power as not-for-profit corporations, and thus owe little to the IRS.' This status changed under the 2022 IRA, which creates a “direct pay” option that lets nonprofits access the same generous clean energy tax credits as their for-profit peers — even with little to no tax burden. IRA also 'created a program at the U.S. Department of Agriculture called Empowering Rural America, which offered up $9.7 B to help rural utilities finance the transition from coal and support coal communities in the process. Tri-State 'recently hit a new record for instantaneous renewable production on May 24, when wind + solar delivered 87% of its generation for half an hr.'

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Finally, governors in PA, NJ, DE, MD and IL are uniting to combat the surge in electricity rates for consumers. While not a governor, Doc Bakey's advocacy on the issue is well-known among his followers. He suggests the following actions: - Engage in Demand Response - Lobby your legislator to eliminate PA GRT from electricity costs. House Bill 2388 - Arrange a consultation with Doc Bakey to cut in half the proposed rate hikes using his proprietary approach. Read more about this collaborative effort here: https://lnkd.in/eCc2umcD

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Finally, governors in PA are uniting to combat the surge in electricity rates for consumers. While not a governor, Doc Bakey's advocacy on the issue is well-known among his followers. He suggests the following actions: - Engage in Demand Response - Lobby your legislator to eliminate PA GRT from electricity costs. House Bill 2388 - Arrange a consultation with Doc Bakey to cut in half the proposed rate hikes using his proprietary approach. Read more about this collaborative effort here: https://lnkd.in/eCc2umcD

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Utilities and regulators have a lot of work ahead to enact new federal grid planning reforms — and to overcome political and financial interests. “Utilities are always going to want to do these local reliability projects that are in their control, but this plan is certainly trying to get us away from that.” Learn more: https://bit.ly/3yzxgIe #FERC #utilities #transmission #renewables #FERCorder1920

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Ban on #naturalgas in federal buildings which means an increase in electric use from an inefficient grid. #increasedemissions Why not install a solution that uses natural gas already supplied to the building, will reduce carbon emissions and reduce grid reliance. There are cleaner energy solutions available. #microCHP #natgas #reduceemissions #carbonreduction #energy #energysolutions

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📢 Energy Suppliers 📢 Ready for your Ofgem stress test submission? 😬 Did you hold a robust review? Compare to your last submission? Does it hold true to other RFI's? 🤞 If these questions give you anxiety, we can help! We have resource ready to review and provide clarity for you. 🔎

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NEW from Count on Coal: EPA DOUBLES DOWN ON THE GRID RELIABILITY CRISIS "While much of the coverage today has reprinted EPA talking points, stunningly little attention has been given to the existing grid reliability crisis and how remarkably out of step EPA’s regulatory blitz is with what the nation’s reliability experts and grid operators have warned we should be doing to responsibly manage the energy transition." Read more: https://lnkd.in/eYAASpMP

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The Environmental Protection Agency (EPA) has a responsibility to balance lofty ideals with realistic goals of efficiency. Without this balance, their stewardship of taxpayer dollars falls short. The education of seasoned professionals combined with real-world experience is crucial to regulating industries such as power plants. Let's hold the EPA accountable to their mission. #epa #powerplantCEMS #efficiency #taxdollars

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The EPA has finalized new rules for power plants aimed at reducing emissions and promoting clean energy investment by 2032. These regulations are expected to drive significant changes in the power sector. Read more about the implications of these rules in Utility Dive:

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PJM Capacity Auction Results - https://lnkd.in/ed94YpqC "The auction cleared a diverse mix of resources, including 48% of gas, 21% of nuclear, 18% of coal, 1% of solar, 1% of wind, 4% of hydro, 5% of demand response and 2% from other resources." Overall Results "The auction produced a price of $269.92/MW-day for much of the PJM footprint, compared to $28.92/MW-day for the 2024/2025 auction. Capacity auction prices fluctuate annually based on the need for investment in generation resources. This year's auction procured 135,684 MW for the period of June 1, 2025, through May 31, 2026. The total Fixed Resource Requirement (FRR) obligation is an additional 10,886 MW for a total of 146,570 MW. The total procured capacity in the auction and resource commitments under FRR represents an 18.5% reserve margin, compared to a 20.4% reserve margin for the 2024/2025 Delivery Year." Reuters article on the same https://lnkd.in/eXFa_G9V

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