Staff Report to the Secretary on Electricity Markets and Reliability

"On April 14, 2017, Energy Secretary Rick Perry issued a memorandum requesting a study to examine electricity markets and reliability. With this document, Department of Energy (DOE) staff are delivering a study that seeks not only to evaluate the present status of the electricity system, but more importantly to exercise foresight to help ensure a system that is reliable, resilient, and affordable long into the future. Therefore, while carefully acknowledging history, this study focuses on the present trajectory of trends that are of particular concern in meeting those long-term goals.

Specifically, the April 14 memo directed a study that explores the following three issues:
 The evolution of wholesale electricity markets, including the extent to which Federal policy interventions and the changing nature of the electricity fuel mix are challenging the original policy assumptions that shaped the creation of those markets;
 Whether wholesale energy and capacity markets are adequately compensating attributes such as on-site fuel supply and other factors that strengthen grid resilience and, if not, the extent to which this could affect grid reliability and resilience in the future; and
 The extent to which continued regulatory burdens, as well as mandates and tax and subsidy policies, are responsible for forcing the premature retirement of baseload power plants..."
Electricity markets

Sector Resilience Report: Electric Power Delivery

"The Department of Homeland Security Office of Cyber and Infrastructure Analysis (DHS/OCIA)

Homeland Infrastructure Threat and Risk Analysis Center (HITRAC) produces Sector Resilience Reports to improve partner understanding of the interdependencies  and resilience of certain sectors. Specifically, this report provides a brief overview of the electric power system, and analysis of key electric power system dependencies and interdependencies. Additionally, this product includes an assessment of, and best practices for, improving community, system, and facility resilience..."

Electric Power 

The mix of fuels used for electricity generation in the United States is changing

"The mix of fuels used to generate the electricity in homes, factories, and businesses across the United States has changed in the past few years as coal, still the largest single fuel used for electricity, has lost some of its share of the generation market to natural gas and non-hydroelectric renewables..."
Fuels for electricity

Weather-Related Power Outages and Electric System Resiliency

"High winds, especially when combined with precipitation from seasonal storms, can cause damage to electricity utility systems, resulting in service interruptions to large numbers of electricity customers. While most such power outages are caused by damage from trees and tree limbs falling on local electricity distribution lines and poles, major power outages tend to be caused by damage to electricity transmission lines which carry bulk power long distances. Depending on the severity of the storm and resulting impairment, power outages can last a few
hours or extend to periods of several days, and have real economic effects. Power outages can impact businesses (primarily through lost orders and damage to perishable goods and inventories), and manufacturers (mainly through downtime and lost production, or equipment damage). Data from various studies lead to cost estimates from storm-related outages to the U.S. economy at between $20 billion and $55 billion annually..."

State Nuclear Profiles 2009

A profile on electric energy produced by nuclear energy facilities by states.

State Renewable Electricity Profiles, 2010

"The State Renewable Electricity Profiles 2010 present a summary of current and recent historical data for the renewable electric power industry. Presented are net summer capacity and net generation data for each type of renewable generator, as well as fossil-fired and nuclear power plant types, for the period 2006 through 2010..."

Recent Studies Show EPA Air Rules Do Not Threaten Electric Reliabilit

"In November 2011, the North American Electric Reliability Corporation (NERC) and M.J. Bradley and
Associates each released updated studies evaluating the effects of existing and upcoming EPA
regulations to control pollution from power plants. These assessments are still based in large part on proposed, rather than final rules. Nevertheless, they provide substantial assurance that the nation can achieve significant air quality improvements from cleaning up old polluting power plants without threatening the reliability of electricity supplies.."

Electric Power Annual: 2010

"Presents 12 years (1999-2010) of National-level data on electricity generating capacity, electricity generation and useful thermal output, fuel receipts, consumption, and emissions..."

THE EFFECTS OF RENEWABLE OR CLEAN ELECTRICITY STANDARDS
"Federal lawmakers have recently considered several policies to alter the mix of fuels used to generate electricity in the United States. Those policies, referred to as renewable or "clean" electricity standards, would lead to greater reliance on energy sources that produce few or no emissions of carbon dioxide (CO2), the most prevalent greenhouse gas contributing to climate change. This study examines how federal standards would change the mix of fuels used to generate electricity, the amount of CO2 emissions, and the retail price of electricity in different parts of the United States. In particular, the study explores how some proposed features of such standards (such as preferences, exemptions, and alternative compliance rules) would affect those outcomes. The study also highlights key elements in designing a renewable or clean electricity standard that would help minimize its costs to U.S. households and businesses..."

EPA Updates Database on Health and Environmental Impacts of Electricity Generation/ User friendly web tool allows Americans to search for power providers by zip code
"The U.S. Environmental Protection Agency updated its database that helps Americans understand the health and environmental impacts of electricity generation. EPA’s Emissions and Generation Integrated Resource Database (eGRID) and Power Profiler now include data from 2007, an update from 2005.

eGRID is a comprehensive database of emissions from almost all electric power generated in the United States. The data are widely used to show the impacts of electricity generation as well as the benefits from reduced electricity demand. eGRID contains emissions information for nitrogen oxides (NOx) and sulfur dioxide (SO2) which contribute to unhealthy air quality and acid rain in many parts of the country. eGRID also contains emissions information for carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O), which are greenhouse gases that contribute to climate change..."
View eGRID database

FTC Comment to FERC: Consider Ways Alternative Energy Sources Could be Used More Efficiently in Nation's Power Generation System
"The Federal Trade Commission has submitted comments to the Federal Energy Regulatory Commission on how alternative sources of energy – such as wind farms, solar cells, and solar thermal installations – can best be integrated into the nation’s electric power grid. The FTC recommends that FERC study ways to make electricity markets better reflect the costs, constraints, and realities of these energy sources to encourage efficient cost-reducing choices in the marketplace.

According to the FTC comment, certain alternative energy sources are different from traditional power sources, such as fossil-fuel and nuclear generators, because they do not produce power constantly. The amount of energy produced by solar cells, for example, depends on the amount of sunlight they receive, while wind power may vary depending on whether the wind is blowing. Because of these differences, FERC is exploring whether and how to modify electric markets and operating procedures to allow these variable sources to compete to supply power at the lowest possible cost.

The FTC’s comment, which can be found on the agency’s Web site and as a link to this press release, highlights three issues:

Potential discrimination against variable energy sources and in favor of other types of power generators; Existing rules and regulations that could hamper the integration of variable energy sources into the power system; and How the increasing use of variable sources could affect the costs to maintain the reliability of the electric system..."