Jul
25
2018

A Record-Setting Summer in Texas

Many eyes are on Texas this summer. Some are watching the Houston Astros to see if a repeat of the 2017 season is possible; currently they are leading the American League West by 6 games and occupy the number 2 spot in USA Today’s Power Rankings. I cannot report similar good news for the Atlanta Braves, although hope springs eternal.

However, those lucky enough to have a professional or avocational (yes, that is a word) connection to the energy industry are collecting a different set of stats by following the state’s roller coaster of summer peak temperatures and power prices.

Jul
17
2018

Pipeline Security - We're All in this Together

Today’s PACE Blog is an abridged version of a PACE column published yesterday by Morning Consult.

When it comes to ensuring a resilient energy grid capable of serving American customers no matter what comes our way, there are few things more vital than safeguarding the security of our energy and electricity delivery systems.

Despite cybersecurity being front and center across the energy and electricity value chain for years, the Department of Energy (DOE) recently asserted that pipeline operators in the U.S. are not adequately prepared for cyber-attacks and that natural gas pipelines specifically are “increasingly vulnerable to cyber- and physical

Jul
11
2018

Hedging 101, Part 2

This week, we continue our conversation with hedging expert Andy Whitesitt. Over two decades, and as a senior executive with ACES, he’s helped dozens of utilities smooth cost curves and mitigate risk. Hedging helps consumers across the country every day.

What’s the difference between financial hedging and physical hedging?

Financial hedging is locking in only the price risk by utilizing either a futures contract or a swap. After locking in the price, the utility still must go out and procure the natural gas needed to run the generation unit.

Physical hedging is a purchase of physical gas to be

Jul
04
2018

Freedom from Worry

Recently, Energy Fairness asked Andy Whitesitt, Vice President of Business Development & Customer Service at ACES, to talk with us about hedging basics.

We hope the following Q & A interview will help you understand how utility hedging programs work to remove some worry about future costs. Next week, we’ll follow up with some additional insights about this common business practice many utilities routinely deploy to protect consumers.

Can you provide a 101 explanation of hedging?

Hedging is simply locking in the price of a commodity in order to reduce the risks of potential impacts. When electric utilities use

Jun
27
2018

Energy Debates Help Summer Heat Up

Energy Fairness is on the road again, enjoying 110 degree highs in Phoenix. Back in D.C., energy debates are heating up the Beltway atmosphere, but we also found some bright spots to share.

The Senate is working on appropriations bills, but partisan divides mean that many “riders” aimed at rolling back rules and programs set in motion by the Obama Administration aren’t viable this year. For example, language that would halt the unpopular and sweeping “Waters of the U.S.” rule won’t be included.

With Energy Fairness now formally a part of the National Energy & Utility Affordability Coalition (NEUAC)

Jun
14
2018

Hedging Happens Every Day

Everyone needs to manage risk. We do it in our daily lives both personally and professionally. Utilities are no different. PACE has spent the last few weeks highlighting natural gas hedging after the Missouri legislature passed a resolution supporting the continued use of this essential, though often misunderstood practice.

Today’s infographic explains the top five benefits of natural gas hedging, from protecting consumers to supporting national security. We hope you will find this graphic useful as you think about all the ways you manage risk every day. #HowDoYouHedge?

Jun
05
2018

Hedging Happens Every Day

Following up from our column last week in Morning Consult, we wanted to create a simple way to explain natural gas hedging. As our infographic shows, gas hedging is no different than common, everyday steps families and individuals take to protect themselves from risk, whether that’s having a home insurance policy or bringing an umbrella with you in case of rain. Simply put, natural gas hedging helps utilities plan against risk and provide a stable and affordable supply of energy for consumers.

Please feel free to share our infographic on your Facebook, Twitter, or Instagram account, or forward to your

May
30
2018

Natural Gas Hedging - Smart Tool for Diverse Energy Portfolio

PACE thanks Morning Consult for publishing this op-ed as original content. https://morningconsult.com/opinions/hedging-smart-tool-diverse-energy-portfolio/.

As the U.S. energy portfolio continues to diversify, the tools and tactics electric utilities use to protect consumers and stabilize costs must keep up with the times to accommodate the growth of natural gas, renewable resources, storage and other innovations.

One of the most critical tools is hedging, a fact frequently discussed and underscored by state lawmakers. As an example, Missouri recently passed Senate Concurrent Resolution 43 that reaffirms the state’s policy of allowing electric utilities to hedge natural gas contracts and supports

May
03
2018

Georgia: Doing its Part for Nuclear, Solar & National Security - While Keeping Rates Low

This week, PACE is pleased to feature a guest blog by Dr. David Gattie, a faculty member at the University of Georgia with deep expertise in energy policy, and co-author of our 2017 paper on net metering.

The U.S. Energy Information Administration recently released new data for 2017, so I compiled a few statistics for some of the top GDPs in the U.S. In particular, average residential rates since 1990 (Figure 1) and the energy portfolios for those states (Figure 2). Since my home state is Georgia and we’re working toward the completion of the only nuclear reactors under

Mar
16
2018

Springing Forward on Fuel Diversity

With spring come spending bills, and this year Congress has the chance to support energy diversity across the board. In the FY18 omnibus, and a series (hope springs eternal) of appropriation bills for FY 2019. There are also talks of a fix-it tax package. In short, there are many opportunities for lawmakers to support a robust, diverse fuel mix now and in the future.

Rep. Larry Bucshon, M.D. (R-IN) has introduced legislation, the “Electricity Reliability and Fuel Security Act” that seeks to establish a 30 percent tax credit, for only a five-year period, for the fixed operation and maintenance expenses