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
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

May
15
2018

Wolverines Set Shining Solar Example

Last summer, PACE released a report reviewing state solar net metering policies and discussing ideologies that influence some states to over-compensate private solar generators at the expense of every other consumer on the grid. We’ve enjoyed presenting on this topic and appreciate the many positive comments about our report’s readability and usefulness. Combine the strong response to PACE’s report with the uptick in state legislative and regulatory attention to net metering in 2018, and the result is that PACE will update our report later this year.

However, a few recent state developments merit attention before the fall.

First up is

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