Utility industry survey identifies top concerns in 2017

The results are in from Utility Dive’s State of the Electric Utility Survey 2017
and the report is available to download. You are leaving WAPA.gov.

The top five issues utilities identified as their biggest challenges will no doubt sound familiar to WAPA customers, whether or not they participated in the survey:

  • Physical and cyber security
  • Distributed energy policy
  • Rate design reform
  • Aging grid infrastructure
  • Reliable integration of renewables and distributed energy resources (DERs)
72 percent of utility professionals said physical and cyber security is either "important" or "very important," making it the most pressing issue for the sector in 2017.

72 percent of utility professionals said physical and cyber security is either “important” or “very important,” making it the most pressing issue for the sector in 2017.

The results of the survey, disclosed in late March, found that 72 percent of respondents see physical and cyber security as either “important” or “very important” today, making it the industry’s most pressing issue in 2017. A total of 65 percent considered distributed resource policy either important or very important. Rate design reform ranked as important for 31 percent and very important for 32 percent of respondents. As for aging grid infrastructure, 34 percent of survey respondents see it as important today, while another 28 percent say it is very important. The reliable integration of renewables and DERs finished in the top five with 60 percent identifying it as an important or very important concern.

State regulatory model reform, the aging utility workforce, changing consumer preferences, compliance with state power mandates and stagnant load growth rounded out the top ten issue responses.

Two years ago, physical and cyber security ranked as sixth, behind aging infrastructure, aging workforce, current regulatory models, stagnant load growth and federal emissions standards.

More than 600 electric utility employees from the U.S. and Canada took online questionnaire, offered to Utility Dive readers in January. Investor-owned utilities represented 54 percent of the survey respondents, followed by municipal or public power utilities (32 percent) and electric cooperatives (14 percent).

Among other key takeaways in the 2017 report, the survey found that utilities are most confident in the growth of utility-scale solar, distributed energy resources, wind energy and natural gas generation over the next 10 years. They also expect coal generation to decline significantly, while nuclear generation will stagnate or retire, depending on the region. Utilities consider uncertainty over future energy policies and market conditions to be the most significant challenge associated with the changing power mix, according to the survey.

Region played a role in how utilities viewed challenges. The majority of respondents across the country identified physical and cyber security, DER policy and renewable energy and DER integration as serious issues. However, that concern was markedly stronger in the West Coast, Great Plains, Rocky Mountain and New England regions. Utility Dive noted that those regions feature states with both robust DER growth and utility reform dockets to reshape power sector business models for DER deployment.

Rate design reform and aging infrastructure were of greater concern on the West Coast, while utilities in the Southwest and South Central states were the least worried about those issues.

You can download the report for free and see how your responses stack up to those of your colleagues. Then, share your thoughts on these issues with Energy Services, let us know how you are handling them and how you would like us to help you address them.

Source: Public Power Daily, You are leaving WAPA.gov. 4/10/17

Fort Collins forges ahead on climate goals

Throughout the nation, municipalities are showing leadership in addressing climate change, and Fort Collins, Colorado, is leading the leaders. The city recently revised its climate action goals to reduce its total greenhouse gas emissions 20 percent by 2020 and 80 percent by 2030 across all sectors relative to 2005 levels.

An article in the Rocky Mountain Institute (RMI) Outlet Redirecting to a non-government site notes that the 2030 target is 20 years sooner than the “80 by ‘50” goal other leading cities have set, making it among the most ambitious of any city in the world. RMI is among the many partners the Fort Collins City Council engaged to assess the costs and benefits to the community of accelerating the city’s greenhouse gas emissions goals. The partnership includes community leaders, local businesses, citizen advisory groups, the communities’ generation and distribution utilities and research institutes.

Investment required
Led by city government and Fort Collins Utilities,Redirecting to a non-government site the partnership has discussed, analyzed and reviewed approaches to achieving the goals. The forward-looking plan lays the groundwork to stimulate hundreds of millions of dollars of new investments in efficiency and renewable resources in the years ahead. The upfront capital requirements will be high, but RMI estimates that the investments in carbon reduction will begin producing real financial benefits to the community close to 2030.

In addition to investing in infrastructure upgrades and clean central generation, the community will need to improve its building stock as well. The targets the city has identified to achieve its goals include:

  • Reduce building emissions by 40 percent through greater efficiency and distributed solar adoption
  • Reduce carbon emissions from the utility electricity system by 79 percent from 2005 levels
  • Reduce transportation carbon emissions by 57 percent from 2005 levels
  • Create a zero-waste community

Utility tackles challenge
Increasing the efficiency of the building stock poses a special challenge, as buildings are responsible for 53 percent of emissions and participation in retrofit programs is often low. The city’s municipal utility plays a central role in encouraging citizens to invest in efficiency for homes and commercial facilities. A recently approved update to the utility’s on-bill financing program allows unprecedented access and flexibility for financing efficiency. The plan gives customers the ability to allocate costs between tenant and landlord, and includes longer financing terms that match the life of the upgrades, lower interest rates and an easier approval process.

The integrated utility services model Redirecting to a non-government site Fort Collins Utilities developed with RMI’s support could, if adopted, do even more to promote building efficiency. It would allow the utility to centrally deliver energy services; such as efficiency, distributed renewables and value-added services; at scales that will achieve cost savings and high-quality service, and be paid for on customers’ electricity bills. This approach offers an innovative model for utilities seeking to grow their business by diversifying their services to customers.

Long journey to sustainability
The new goals are part of continuing process that has engaged the city and its partners for more than 15 years.

The Fort Collins City Council passed a resolution in 1999, committing the city to reducing its greenhouse gas emissions significantly by 2010. The landmark year of 2007 saw the formation of the city’s Climate Task Force and the implementation of FortZED, funded by an $11 million federal grant. The project created a zero-energy district in Fort Collins’ downtown business district and the Colorado State University Redirecting to a non-government site campus. It also launched a dialogue between the university, the utility and the city that continues today, and led directly to the city council’s vote to adopt the historic new goals.

The process has not been smooth or easy, but the city has already made significant progress. By continuing its methodical, inclusive and thoughtful approach, Fort Collins is showing how even a town of 150,000 can make big strides in fighting climate change.

Source: RMI Outlet, 3/4/15

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