
How The Electric System Can be Gamed
Ever get the choice you think sounds reasonable? For example, here is the new car you wanted. Only to find out it’s not new; it’s a lease, and you owe $1,500 / month in insurance.
So it is with the energy system.
Background. Utilities are monopolies in that only they can deliver power within their franchise territory.
ISO (independent system operators) act as the wholesale market. In their territory, they control which power plants are interconnected and pay for their power.
FERC (Federal Energy Regulatory Commission) they are responsible for having a national view (think for the Country). Ensuring the power markets work without unfair competition by ISO, utility, or state regulators.
The choice. Fast-track any “shovel ready” utility fossil fuel power project and grant interconnect approval within 90 days.
MISO’s proposal to alleviate real congestion, and seasonal demands (cold and heat) would authorize only utilities to receive approval for new power projects.
The decision. No from FERC.
MISO (an ISO), which oversees the electric grid across a large portion of the Midwest, is not alone in facing a clogged interconnection process that’s preventing it from swiftly adding new generation to replace coal and keep up with demand. FERC rejected the organization’s plan to address it by fast-tracking new gas plants, marking a win for clean energy advocates.
Some Reality.
The reality is that MISO has 100s of gigawatts of power projects in the queue awaiting approval. The difference is these are NOT utility-owned and are primarily fueled by solar, wind, and battery installations.
FERC saw this effort to address a real problem as an end-run around “reasonably balanced” options. The existing queue of power projects earned their spot by being economically better than alternatives, situated in needed areas, and financially capable of being built and operated without consumer impact.
Sometimes the solution is taking advantage of the problem.
Realgy Energy Services is a registered Retail Energy Marketer serving commercial customers in the states of Illinois, and Indiana. We offer Service Plans that will provide electric and natural gas at wholesale pricing direct to customers without any utility markup. Our Service Plans work with the local utility to provide seamless service and annual energy savings. Service Plans include Guaranteed SavingsTM, ManagedPriceTM, ManagedGreenTM Index, Fixed, and PriceAssuranceTM.
Realgy owns and operates 11 solar plants in Illinois and is looking to invest in additional locations.