Post on 30-May-2018
transcript
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Critical Policy Issues forOn-Site Generators
An End-Users Viewpoint
Al Musur
Chairman, Industrial Energy Consumers of America
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Energy This Countrys
Biggest Policy Problem
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Energy This Countrys
Biggest Policy Problem
Because energy is where
economy, geology and ecologycollide.
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Policy Areas
Natural Gas
Power Generation
Clear Skies
Electricity
Electrical Transmission
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Natural Gas Policy
Natural Gas is the Fuel of Choice
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad That Causes Price Increases
No CHP Projects with 5 electricity being displaced by
$5 Natural Gas
70% of Known Reserves on Unavailable Federal Lands
Prohibitions on Lateral Drilling
Coal Bed Fractionation
2800 Drilling Applications Back-logged at DOI
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad
Lack of Oversight of Natural Gas Markets
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad
Lack of Oversight of Natural Gas Markets Commodity Futures Trading Commission (CFTC)
Lost Oversight of Natural Gas & Electricity Trading
No Standard for Determining Undue Market Influence
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad
Lack of Oversight of Natural Gas Markets
Approval of Oil/Gas Mega-Mergers
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad
Lack of Oversight of Natural Gas Markets
Approval of Oil/Gas Mega-Mergers Eg. BP Amoco
Loss of Investment Capital
Midsize Companies Purchasing Assets v. Exploring
Small Exploration Companies Quitting the Business
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad
Lack of Oversight of Natural Gas Markets
Approval of Oil/Gas Mega-Mergers
Lack of Federal Regulatory Authority
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad
Lack of Oversight of Natural Gas Markets
Approval of Oil/Gas Mega-Mergers
Lack of Federal Regulatory Authority Reporting Injections
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad
Lack of Oversight of Natural Gas Markets
Approval of Oil/Gas Mega-Mergers
Lack of Federal Regulatory Authority Reporting InjectionsFull Storage = 3.2 TCF
Inadequate Storage = 2.8 TCF
Delta 0.4 TCF < 2% of Annual Demand
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Natural Gas Policy
Natural Gas is the Fuel of Choice
Exploration for Natural Gas is Bad
Lack of Oversight of Natural Gas Markets
Approval of Oil/Gas Mega-Mergers
Lack of Federal Regulatory Authority Reporting Injections Reporting Transactions for Price Formation
Ordering Construction
Storage
Pipelines
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Power Generation
Crime to Burn Natural Gas in Non-CHP
Power Generation
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Power Generation
Crime to Burn Natural Gas in Non-CHP
Power GenerationNatural Gas is the only fuel available to most industry and
is also a feedstock
Natural Gas is growing as the fuel of choice for residential
use
For this there is no substitute
Utility generators can burn everything from garbage to
nuclear fuel
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Power Generation
Crime to Burn Natural Gas in Non-CHP
Power Generation
Burn Coal
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Power Generation
Crime to Burn Natural Gas in Non-CHP
Power Generation
Burn Coal Illinois alone has more coal that Saudi Arabia and Kuwait
combined have oil
Developed technologies can burn coal cleanly
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Power Generation
Crime to Burn Natural Gas in Non-CHP
Power Generation
Burn Coal
Burn Nuclear Fuels
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Power Generation
Crime to Burn Natural Gas in Non-CHP
Power Generation
Burn Coal
Burn Nuclear Fuels
Spend Federal Funds on Developing and
Commercializing Technologies rather than
picking winners and losers in energy
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Power Generation
Crime to Burn Natural Gas in Non-CHP
Power Generation
Burn Coal
Burn Nuclear Fuels
Spend Federal Funds on Developing and
Commercializing Technologies rather than
picking winners and losers in energyNo Renewable Portfolio Standard
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Clear Skies
New Source Review Reform
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Clear Skies
New Source Review Reform Trade new CO
2, NO
x, Hg standards for NSR changes
Utilities trying to include CHP in Clear Skies NSRReform
CHP projects should be exempt or there should be an
output efficiency standard for inclusion
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Clear Skies
New Source Review Reform
Greenhouse Gas Issues
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Clear Skies
New Source Review Reform
Greenhouse Gas Issues Energy Policy focused on GHG intensity
Clear Skies called for the DOE to revamp the 1605(b)
Greenhouse Gas Registry to reward absolute reductions of
Greenhouse Gasses
First step to the establishment of a Greenhouse GasEmission Trading Program in the U.S.
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Clear Skies
New Source Review Reform
Greenhouse Gas Issues
Greenhouse Gas Emission Credits for CHP
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Clear Skies
New Source Review Reform
Greenhouse Gas Issues
Greenhouse Gas Emission Credits for CHP Industrial installs a CHP facility for steam and electric
generation
Gross Greenhouse Gas emissions for site go up
Net Greenhouse Gas emissions go down netting out the
reduction at the utility stack for displaced generation
Utilities are claiming that the emission reduction at their
stack is their reduction regardless how achieved
Utility view is generally accepted among White Housestaff
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Electricity
PURPA Repeal
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Electricity
PURPA Repeal
PUHCA Repeal
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Electricity
PURPA Repeal
PUHCA Repeal
FERC authority to enforce NERC operating
rules
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Electricity
PURPA Repeal
PUHCA Repeal
FERC authority to enforce NERC operating
rules
Net Metering Issues
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Electricity
PURPA Repeal
PUHCA Repeal
FERC authority to enforce NERC operating
rules
Net Metering Issues California ISO OATT
Illinois MISO may yield different result due to regional
differences
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Electrical Transmission
FERC Authority
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Electrical Transmission
FERC Authority Utilities have learned at the State level: if one doesnt like
what a commission decides, have the Legislature fix it.
Push on the part of Utilities to limit FERCs authority:
Operating rules
RTO formation
Siting Authority
Utilities stirring up State Commissions & Governorsto push States rights issues
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Electrical Transmission
FERC Authority
Regional Transmission Organization (RTO)
/ Standard Market Design Issues
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Electrical Transmission
FERC Authority
Regional Transmission Organization (RTO)
/ Standard Market Design Issues
Standardized CHP Interconnection Issues
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Electrical Transmission
FERC Authority
Regional Transmission Organization (RTO)
/ Standard Market Design Issues
Standardized CHP Interconnection Issues
Federal Authority for Transmission Design
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Electrical Transmission
FERC Authority
Regional Transmission Organization (RTO)
/ Standard Market Design Issues
Standardized CHP Interconnection Issues
Federal Authority for Transmission DesignNo current authority to order transmission interconnection
construction
No centralized siting authority
Suggestion socialize the cost of upgrading the
transmission system
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Electrical Transmission
FERC Authority
Regional Transmission Organization (RTO)
/ Standard Market Design Issues
Standardized CHP Interconnection Issues
Federal Authority for Transmission Design
Distributed Generation v Transmission
Upgrade Issues
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Electrical Transmission
FERC Authority
Regional Transmission Organization (RTO)
/ Standard Market Design Issues
Standardized CHP Interconnection Issues
Federal Authority for Transmission Design
Distributed Generation v Transmission
Upgrade Issues USCHPA proposal for distributed generation instead of
transmission upgrade
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Electrical Transmission
FERC Authority
Regional Transmission Organization (RTO)
/ Standard Market Design Issues
Standardized CHP Interconnection Issues
Federal Authority for Transmission Design
Distributed Generation v Transmission
Upgrade Issues
August 14, 2003 Issues
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What Can I Do?
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What Can I Do?
Become conversant with all of the issues
Resist the urge to pursue only your narrow
interests
Join with other consumer groups to achieve
enough mass to be effective