Workshop D New to the Energy Field? Fun Way to Learn the Basics … Energy Game Show 101 Tuesday, February 19, 2019 10:45 a.m. to Noon
Biographical Information Louis M. D’Alessandris, Senior Market Policy Specialist FirstEnergy Corp. 76 S. Main St., General Office 16th Floor, Akron, OH 44308-1890 330-384-3761 ldalessandris@firstenergycorp.com Lou D’Alessandris is a Senior Market Policy Specialist for FirstEnergy Corp. His current responsibilities include regulatory research and market monitoring at PJM and FERC. Prior to joining the company in 2006, Lou held marketing positions in the marketing group at Malco Products, Inc., and worked on demand side management programs for Ohio Edison, a FirstEnergy subsidiary, and Cincinnati Gas & Electric. During his years in the energy industry, Lou has worked in various capacities on the regulated and deregulated side of the business, building an adept understanding of complex utility issues, functioning market structures and energy-related proceedings. Lou participates in the FirstEnergy Speakers Bureau, presenting topics such as Energy Efficiency and Energy Markets to various civic organizations. He earned a bachelor of arts degree from Washington and Jefferson College and a master’s of Business Administration from the University of Cincinnati.
Energy Renewable Rates & Electricity Retail Choice “Watt” Efficiency Energy Tariffs 100 100 100 100 100 100 200 200 200 200 200 200 300 300 300 300 300 300 400 400 400 400 400 400 500 500 500 500 500 500
Electricity - 100 A megawatt-hour is equal to this many kilowatt-hours.
Electricity - 100 What is 1,000? (To change a price from dollars per megawatt-hour to cents per kilowatt-hour, move the decimal one place to the left − e.g., $40/MWh = 4 cents/kWh.)
Electricity - 200 Consumption is measured/billed in kilowatt- hours while demand is measured/billed in this value.
Electricity - 200 What is a kilowatt (or megawatt)? (Think of your car’s speedometer and odometer. The odometer tracks miles driven, while the speedometer measures speed. If you drive 70mph for one hour, you have driven 70 miles. If you use 7 kilowatts for one hour, you have used 7 kilowatt-hours.)
Electricity - 300 Of distribution rates, transmission rates or generation rates, they are the ones still regulated by the state utility commission in states with retail choice.
Electricity - 300 What are distribution rates? (When states restructured, states retained jurisdiction over the distribution system while the federal government has jurisdiction over transmission and wholesale generation.)
Electricity - 400 In 2017, Ohio ranked 2 nd in the United States in consumption of electricity by industrial customers. This state ranked first.
Electricity - 400 What is Texas? (Energy policy is especially critical to Ohio due to the large amounts of industrial production in the state.)
Electricity - 500 The Reliability Pricing Model, or RPM, is used by PJM to price this component of your electricity price; it is typically 20% of your supplier’s charge.
Electricity - 500 What is capacity? (SHAMELESS PLUG ALERT: Session H at 1:45 today will provide a wonderful overview of PJM’s Reliability Pricing Model.)
Energy Efficiency- 100 Program launched by the U.S. Environmental Protection Agency and administered by the EPA and Department of Energy to alert customers to energy efficient products.
Energy Efficiency - 100 What is Energy Star? (You can find the Energy Star label on more than 75 different product categories, indicating that the product uses less energy than standard models.)
Energy Efficiency - 200 Of incandescent, CFL or LED, it is the bulb that produces the most lumens per watt (most efficient).
Energy Efficiency - 200 What is an LED?
Energy Efficiency - 300 True or False, using the clothes dryer less often or turning down the heat in the winter are examples of energy efficiency.
Energy Efficiency - 300 What is False? (Those are examples of energy conservation; Energy efficiency maintains the same amount or quality of output while using less energy. Installing a more efficient furnace and keeping the temperature unchanged from before is an example of energy efficiency.)
Energy Efficiency - 400 A theoretical unit of power representing the amount of electrical power (measured in Watts) saved through conservation or efficiency measures.
Energy Efficiency - 400 What is a negawatt?
Energy Efficiency - 500 Edgar Winter fans probably like this term, used for a customer that would have installed an energy efficiency measure without any program incentives, but receives a financial incentive anyway.
Energy Efficiency - 500 What is a free rider?
Renewable Energy - 100 Ohio ranks 26 th among states in installed wind megawatts; this state ranks first.
Renewable Energy - 100 What is Texas? (Texas has 1.3 million megawatts of wind potential; the U.S. currently has 1.1 million megawatts of installed generation capacity.)
Renewable Energy - 200 Of 1, 6, 12 or 24, the number of hours needed to meet the world’s energy demands for a whole year if all the sunlight on Earth was captured.
Renewable Energy - 200 What is 1 hour?
Renewable Energy - 300 Ohio ranks 27 th in installed solar capacity; this state ranks first.
Renewable Energy - 300 What is California?
Renewable Energy - 400 In PJM, wind output peaks in winter and is lowest during this season.
Renewable Energy - 400 What is summer? (PJM load peaks in summer when wind output is at its lowest; wind output peaks during PJM’s winter peak.)
Renewable Energy - 500 Yuma, Arizona averages 242 sunny days per year (defined as less than 30% cloud cover during daylight hours). How may sunny days does Columbus have each year? (answer +/- 10 days)
Renewable Energy - 500 What is 72?
Rates & Tariffs - 100 These type of rates vary by winter or summer.
Rates & Tariffs - 100 What are seasonal rates? (Many utility default supply rates vary by summer to winter. Some Ohio utilities have “summer” periods that are three months long and others have summer lasting four months long.)
Rates & Tariffs - 200 True or False: Ohio utilities may set rates without utility commission approval.
Rates & Tariffs - 200 What is false? (All utility rates – or the formulas that set the rates – are approved by the PUCO. On the bottom of each tariff sheet is a listing of what PUCO case the tariff was filed in or what order it was filed in response to.)
Rates & Tariffs – 300 It is a ratemaking method of removing the distribution- related through-put incentive; it’s also the act of separating train cars.
Rates & Tariffs - 300 What is decoupling (Utility rates are set based on expected customer use – if the weather is more extreme than typical, customers will consume more electricity and the utility will earn more money than expected. If the weather is milder than typical, customers consume less and the utility earns less than expected. Decoupling ensures that the utility earns what is expected – no more, no less.)
Rates & Tariffs - 400 Utilities use these to update prices charged on a monthly or quarterly basis, eliminating the need to wait for a full rate case to recover costs.
Rates & Tariffs - 400 What is a Rider? (Rather than going through a full rate case, utilities establish riders that will update automatically.)
Rates & Tariffs - 500 The flat $/month charge on your bill that represents a portion of the cost of connecting you to the system.
Rates & Tariffs - 500 What is a service charge (or customer charge)? (In reality, your customer charge should be much higher than it is, however costs have historically been moved to volumetric fees, or kWh use.)
Retail Choice - 100 It’s the price you would pay if you did not shop with a supplier and stayed with the utility default service.
Retail Choice - 100 Who is the Price to Compare (PTC)? (The PTC is what you would pay if you did not shop – the PTC can change from month-to-month or quarter-to- quarter, so you need to understand how the price is set and what changes may be coming.)
Retail Choice - 200 It doesn’t take a clairvoyant to know that these are utility rate cases for the supply and pricing of electric generation service.
Retail Choice - 200 What is an Electric Security Plan (ESP)? (Each utility files an electric security plan – typically every two or three years or longer – that establishes how generation will be procured.)
Retail Choice - 300 True or False; when you shop you pay your retail supplier for all of your transmission charges.
Retail Choice - 300 What is False? (Typically you pay for your retail supplier for market-based transmission charges, and your electric distribution utility for non-market based transmission charges.)
Retail Choice - 400 Shopping customers may be able to control these costs by managing their Peak Load Contribution.
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