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Place your bets! Place your bets!
Well, the media is certainly poised to see what will happen after the elections this November. Many are focusing on whether one, or both, Houses of Congress will change hands and what the national implications will be. As for me, I’m more interested in what is happening in Nevada regarding Question 3 and the possibility of retail choice for electricity in the Silver State.
The Loss of Independence
I’ve not written for a couple of months. July and August are supposed to be calm, quiet months. But I was busy putting together and running my first DC Roundtable for WPTF. Then I had to take my son to college and subsequently mope around the house for a couple of weeks missing him. Next, my Mom seemed on the verge on passing and then recovered after a vigil in the hospital. There was planning and running the WPTF Summer Meeting in Tahoe while, at the same time, arranging for my son’s evacuation from his college in North Carolina in advance of Hurricane Florence. But then I found myself brooding and decided to write about it.
The PEAK Announcement
The west-wide reliability coordinator, PEAK, announced that it would begin the process of winding down its business in view of demands from some of its key members. Why, some have asked, has this come about? In some ways, it is hard to grasp as PEAK represented the first time the West had had an independent reliability coordinator with tools that gave it unparalleled visibility into the entire regional grid.
Have No Fear
This past Tuesday was Primary Elections Day in my state. The headlining race was for governor, but since my party’s nominee was running unopposed – and I like him very much – the incentives for showing up for one to vote were “just because…” Just because one is a good citizen and cares about the process. I have a son who is 18 and about to go to college. We passed the polling place and I told him I had to go home, shower, put on better clothes, and go vote.
Road Trips, Chased by the Feds & Blog Reactions
I’m sitting in the United Club at LAX, waiting for my Red-eye flight back to Baltimore. My son’s high school graduation is tomorrow. It’s only Wednesday evening but it feels like a full week already. Gary Ackerman and I went on a Road Trip of epic proportions on which we met six members in one day in the LA area. Next day, three members in Orange County and San Diego, and on the next two members in the San Diego area before I dropped Gary at the Cross Border Express Airport on the border with Mexico. I then drove back to LA and am writing this blog while listening to the toddler next to me report on the comings and goings of the planes out the window.
The Attraction – and Danger – of Market Intervention
This is my second effort to write a blog on this particularly sticky subject… the very real problems when policy makers intervene in markets. The reasons such a discussion is difficult in the context of the California electricity markets are emotional. First is the continuing psychic damage that was done in 2000-01. The second is that we want to electricity to be competitive but there is something about it that makes us want to “fix” it all the time. But the most damaging of all is a popular narrative that firmly states that the 2000-01 crisis was all about manipulation. That narrative is damaging because it leads to the entrenched belief that regulatory intervention is necessary to protect from the manipulation, and by extension a painful crisis, from happening again.
Charlie Brown or Henry V? Market Development in the West
Before I start in on the latest frustration along the path to market formation in the wider West, let me pause and explain recent developments to my friends in the Western Interconnection. Most of the trade press and the attention of FERC and the rest of Washington barely noticed the surprise of Xcel’s pulling out of Mountain West. Rather, the folks in the East are consumed by the cries of anguish emanating out of First Energy, Murray Coal and whether the DoE and DoD might invoke a Cold War legal mechanism to save coal and nuclear units in the East. This is the regulatory version of “East Coast bias” that many Pac-12 fans have asserted ESPN and other sports outlets have for things that don’t happen in a convenient time zone.
The Line Between State & Federal Authority: Electricity
Our nation has struggled to define the proper boundary between state authority and that of the federal government since the first vote on independence. In this video, you can see the debate in the first Presidential Cabinet between Thomas Jefferson and Alexander Hamilton — two talented Founding Fathers — having completely different views. It’s been a struggle ever since, encompassing a Civil War, several Constitutional stand-offs, and indeed it has been the backdrop of almost every US Presidential election.
Is that a Paper Moon?
In this scene from the movie “Paper Moon”, money changing occurs so rapidly that the cashier finds herself unsure what has transpired. The same can happen with transmission in the fast-moving energy market if you’re not careful. WPTF’s excellent chair of our WECC Committee – Caitlin Liotiris addressed a meeting of participants in the Energy Imbalance Market (EIM) about transmission availability in the EIM market. The points she made with regard to the current EIM here (EIM TX) may be even more of an issue as we approach the possibility of a “day ahead” product associated with the EIM.
Do the Right Thing
I haven’t written for a couple of weeks. Gary has been on a hot streak with the Burrito and there has been a great deal for the “incoming” Executive Director to process. But most of all, I’ve been watching what is happening in California, at FERC and the chess match for market development in the West between CAISO, the Mountain West and PEAK/PJM . Dang, this is happening faster than delivering pizza on a Friday night in Brooklyn.