NRG’s Energy Policy Pulse: November/December 2024
The energy landscape is evolving rapidly, driven by innovations, policy shifts, and growing demand for agile and more resilient systems. This installment of Energy Policy Pulse revisits some of the biggest stories and trends from 2024, while looking at the upcoming landscape for 2025.
Top Policy Stories from 2024
January 3, 2024
Reliant Announced Initial Plans Being Offered to Lubbock Residents
The Lubbock market opened January 5, 2024 – a huge win for energy choice. Reliant introduced various residential electricity plans for Lubbock Power & Light customers, including innovative options like the Flextra Credits plan offering free electricity on high-use days and Truly Free Nights with 100% Solar.
March 14, 2024
Court Scraped Last-minute FERC Rule Change in Largest Power Market
A federal appeals court ruled against the Federal Energy Regulatory Commission's (FERC) approval of grid operator PJM's rerun of a capacity auction. The court found that FERC exceeded its authority by allowing PJM to retroactively change auction rules, citing violations of the filed rate doctrine and prompting uncertainty about implementation and market impact.
March 28, 2024
A report revealed potential savings for Massachusetts customers enrolled in competitive electric supplier plans. The analysis suggests that if all customers had chosen the lowest-cost competitive supplier, they could have saved approximately $1.7 billion over two years - highlighting the benefits of retail electric choice for consumers.
April 18, 2024
New England States Applied for U.S. Government Transmission and Energy Storage Funding
New England states are seeking federal funding through the U.S. Department of Energy's Grid Innovation Program for electricity transmission and storage projects. They aim to enhance grid reliability and resilience, with two proposed projects focusing on grid interconnection upgrades and increased electricity transfer capacity.
June 6, 2024
What a Full FERC Panel Meant for the Grid
The Federal Energy Regulatory Commission (FERC) is preparing for new members following recent Senate confirmations. The additions include two Democrats and one Republican, which restores the commission to full capacity. This reshuffle comes shortly after FERC approved a significant transmission rule aimed at enhancing regional planning for a carbon-free electric grid, setting the stage for potential shifts in how energy policies are implemented.
June 12, 2024
The Maryland Public Service Commission (PSC) is poised to issue an order soon regarding the implementation of Supplier Consolidated Billing (SCB), considering its interaction with the newly enacted retail energy reform law, SB 1. Concerns were expressed over potential cost implications if SCB suppliers do not participate, with debates highlighting the complexities around utility receivables and supplier participation under the new regulatory framework.
July 12, 2024
Supreme Court’s Chevron Ruling Created Power Sector Uncertainty: Moody’s
Moody’s Ratings highlight that the U.S. Supreme Court's decision to overturn the Chevron doctrine introduces significant regulatory and legal uncertainty for power companies, potentially complicating their planning and compliance with future EPA mandates. Despite this, Moody’s expects that state-driven environmental regulations and ongoing capital investments in carbon reduction and system resilience will likely keep utility investment plans on track.
August 2, 2024
Utilities Said PSC Should End POR For All Residential Customers
The Maryland Public Service Commission (PSC) has been urged by the Office of People's Counsel (OPC) to rapidly repeal its purchase of receivables (POR) rules due to new legislation (SB 1) that prohibits residential POR for new contracts starting January 1, 2025. The Joint Utilities support a complete transition from POR to alternative payment methods at a single point in time, citing implementation challenges and costs, while supplier parties warn that abruptly ending POR could cause significant market disruptions and legal issues with existing contracts.
August 29, 2024
Texas Moved Forward with $5.38B in Loans for 10 GW of New Dispatchable Power Projects
The Public Utility Commission of Texas advanced nearly 10 GW in projects to the due diligence phase, which, if fully financed by the Texas Energy Fund, would amount to $5.38 billion in financing. Notably, NRG Energy’s 456 MW THW facility in Houston was selected for further review.
September 4, 2024
Reregulation? How Utilities and States Responded to PJM’s Record Capacity Prices
Capacity costs in PJM's 2025/26 auction surged from $2.2 billion to $14.7 billion, largely driven by power plant retirements, increased demand, and new market rules. Utilities, lawmakers, and regulators are discussing solutions, such as reentering the power generation business and accelerating new capacity development, but concerns remain about the market's structure and the impact on consumers.
October 21, 2024
NRG Energy proposed that ERCOT replace its current Emergency Response Service (ERS) with a day-ahead demand response system tailored to different customer groups, allowing retail electric providers to manage demand during scarcity events. NRG's proposal emphasizes enhancing demand response participation and aligning products with ERCOT's reliability needs.
November 8, 2024
Electricity Program In Hadley Extended Three Years
The Hadley Community Electricity Aggregation program, designed to increase renewable energy use and manage electricity costs, will be extended through December 2027 with new rates effective December 2024. The program, which has saved residents an average of $1,000 over five years, will transition from Constellation Energy to Direct Energy, offering both renewable and 100% green energy options at competitive bulk rates compared to Eversource.
November 17, 2024
Can A Virtual Power Plant Controlled By AI Thermostats Help Texas Grid?
NRG Energy, in partnership with Renew Home and Google Cloud, is launching a virtual power plant (VPP) in Texas, leveraging AI-controlled smart thermostats to conserve and redistribute energy during peak demand, potentially alleviating the state's frequent power issues. While the VPP promises grid resilience and customer savings, concerns remain about relinquishing thermostat control and the siloed nature of such systems, highlighting the evolving challenges and opportunities in modernizing energy grids.
December 12, 2024
Texas Public Utility Commission Briefs: Dec. 12, 2024
The Texas Public Utility Commission's staff has recommended against moving forward with the current design of the proposed Performance Credit Mechanism (PCM) for ERCOT, citing its minimal impact on resource adequacy. In other developments, NRG Energy’s application for a new natural gas combined cycle unit at its Cedar Bayou plant is among the projects advancing under the Texas Energy Fund’s loan program for due diligence.
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