New paper corrects two widely held perceptions in regulatory community
AMERICA’S POWER PLAN: This paper corrects two widely held notions in the regulatory community: that the utility’s rate of return is the sole value driver for utility shareholders and that rates of return are set at the cost of equity. Neither of these perceptions is correct. Instead, the financial “value engine”—the difference between a utility’s return on investment and its cost of capital—drives shareholder returns. The authors argue that regulators should use this value engine to align utilities’ financial motivations with delivering value to customers and society. They can offer utilities opportunities to earn increased revenues when they provide value-based products and services. June 2015 Continue reading
WGG’s Synapse EIM Report
WGG commissioned a report by Synapse Energy Economic, Inc. to estimate the benefits of the newly formed regional Energy Imbalance Market. The report was commissioned to illuminate all benefits – financial savings as well as reliability improvements – resulting from utilities participating in this market platform. The report will be used to encourage utilities and regulators to join the EIM as soon as possible to capture customers savings, reduce the cost of renewable energy integration and improve reliability. Continue reading
Western Grid Group releases transition plan to clean energy
The Clean Energy Vision Project charts a sustained, orderly transition from coal and gas to more jobs, better health and true energy security. These four documents outline what policies and investments are needed as well as the how a modernized grid will operate. Continue reading
Western Governors’ Association Report – Integration Challenges
“Meeting Renewable Energy Targets in the West At Least Cost: The Integration Challenge.”
The Western Governors’ Association commissioned this report to explore ways to reduce costs to the region’s electricity consumers for integrating wind and solar, identify barriers to adopting these measures and recommend possible state actions.
Prepared by Regulatory Assistance Project for Western Governors’ Association. Continue reading