Wednesday, June 27, 2018
Welcome and Introductions
The rapid growth of natural gas and renewable energy, combined with new approaches to manage fluctuations in demand and production, are creating structural shifts in regional and state electricity markets. This upending market dynamic is raising questions regarding the reliability of energy sources, what this means for jobs and state economies and the risk implications to the nation’s critical energy infrastructure. This meeting explored how electricity markets function, how these changes affect states in restructured and vertically integrated markets and how states are adapting to these changes. It also discussed how new energy management technologies, [Anchor] such as energy storage and demand response, are dramatically influencing how the grid is managed.
Introduction to Electricity Markets
Electricity markets are evolving rapidly, with the federal government, states and regions taking a broad range of approaches to crafting the regulatory frameworks under which markets and utilities operate. This session explored these variations within restructured and vertically integrated states and their corresponding wholesale and retail markets, and discussed why and how they evolved differently. The speakers also discussed recent developments and trends, as well as market operations.
- Lopa Parikh, senior director, Federal Regulatory Affairs, Edison Electric Institute | Presentation
- Douglas Gotham, director, State Utility Forecasting Group, Purdue University | Presentation
Competition vs Regulation
Restructuring—implemented by many states in the 1990s as a way to introduce wholesale and retail competition, reduce regulation and lower prices in the electricity market—has continued to evolve. Although the road to wholesale and retail competition has been rocky for many states, approaches have been refined to create thriving competitive markets. How do these markets affect generation choices, prices, reliability, resiliency and satisfaction when compared to vertically integrated markets? What lessons can be learned from the state restructuring experience and where will states be heading in the future? Panelists explored these questions along with recent state trends and developments.
- William “Bill” Murray, vice preside, State and Electric Public Policy, Dominion Energy | No Presentation
- Sanem Sergici, principal, The Brattle Group | Presentation
The Future for Baseload Electricity
The rapid expansion of lower-priced natural gas and renewable resources has often come at the expense of coal, but is now putting pressure on many nuclear plants as well. The threatened loss of these traditional baseload resources has raised concern among some stakeholders, spawning a variety of state, regional and federal efforts that would provide market supports, as has occurred for other electricity resources. Presenters discussed the market outlook for these resources, potential impacts of their loss, policies to support coal and nuclear, and the impacts to markets, prices and reliability.
- Bill Berg, vice president, Wholesale Market Development, Exelon Corporation | No Presentation
- Kelly Lefler, senior policy advisor, Office of Nuclear Energy, U.S. Department of Energy | Presentation
Keynote - At the Nexus of State & Federal Jurisdiction: Coming to Terms with the Electricity Market Identity Crisis
- Tony Clark, senior advisor, Wilkinson Barker Knauer, LLP | Presentation
Natural Gas and Renewables—Drivers of Change
The rapid expansion of renewable energy sources along with low natural gas prices are forecast to continue for the foreseeable future. How will these resources affect the market and what will it mean for pricing, reliability and resilience? What will be the impact of growing generation on the distribution grid? How do state energy policies affect regional energy markets? Speakers explored these questions and more.
- Craig Glazer, vice president, Federal Government Policy, PJM | Presentation
- Michael Kessler, managing assistant general counsel, Midcontinent Independent System Operator | Presentation
Energy Management for a Modern Grid
Technology has driven major shifts in energy management over the past decade and the rate of change is likely to continue as smarter grid technologies, demand management and energy storage to expand. As the resource mix has changed, they are playing an increasing role in adapting the grid to a more diverse and variable energy mix. While these approaches and technologies often lower costs, increase efficiency and improve reliability, market design and utility regulatory policies play a significant role in their ability to compete and expand.
- Katie Guerry, vice president of regulatory affairs, EnerNOC | Presentation
- Chris Villarreal, president, Plugged In Strategies | Presentation
- Patrick Maguire, director of corporate planning & analysis, Indianapolis Power & Light Company | Presentation
State Policy and Regional Power Markets
State policies and regional markets interact in many ways. There is ongoing debate as to whether certain state efforts to promote economic development, clean energy or jobs, create imbalances and challenges for regional markets. These policies could include zero emissions credits, renewable energy standards, and efforts to protect certain types of generation, among others. Is this an issue that needs to be addressed or is the market adequately incorporating the many divergent state approaches to energy policy? Experts discussed these issues during a roundtable discussion.
- Lael Campbell, director, State Governmental and Regulatory Affairs, Exelon Corporation | No Presentation
- Dana Horton, director of RTO Policy, American Electric Power | No Presentation
- Craig Glazer, vice president, Federal Government Policy, PJM | No Presentation
- Chris Villarreal, president, Plugged In Strategies | No Presentation
Thursday, June 28, 2018
Overview and Tour
MISO, Midcontinent Independent System Operator, 720 West City Center Drive, Carmel, Ind. 46032-3826
Participants had the opportunity to meet with senior officials and see MISO operations. MISO is a not-for-profit member-based organization that ensures reliable, least-cost delivery of electricity across all or parts of 15 U.S. states and one Canadian province. In cooperation with stakeholders, MISO manages approximately 65,000 miles of high-voltage transmission and 200,000 megawatts of power-generating resources across its footprint.
Putting It All Together
What information regarding the rapidly evolving energy markets can state policymakers take back with them? What questions remain unanswered? Participants will have time to discuss key issues surrounding energy markets, state challenges, and the opportunities for policymakers.
Tour of the Indiana Statehouse (optional)
Meeting Adjourned at 3 p.m.