July
2017
Hello
- Please enjoy this edition
of the Prospect Resources
newsletter
Did
You Know - How is the
Electric Grid
Organized?
The
Unites States does not have
a single unified electric
grid. Rather there are a
series of RTOs (Regional
Transmission Organizations)
and ISOs (Independent System
Operators) that control and
manage the different
portions of the grid. They
are responsible for the
transportation and flow of
electricity over large
regional areas across the
country. These RTOs and ISOs
have different operating
practices, and rates and
tariff structures. The seven
primary organizations
are:
•
ISO New England
•
NYISO - New York Independent
System Operator
•
PJM Interconnection
(Pennsylvania, New Jersey,
Maryland, and extends to
Illinois)
•
MISO - Midcontinent
Independent System Operator
•
SPP - Southwest Power Pool
•
ERCOT - Electric Reliability
Council of Texas
•
CAISO - California
Independent System Operator
RTOs
and ISOs are formed at the
direction or the
recommendation of the
Federal Energy Regulatory
Commission (FERC). A primary
reason for the establishment
of these regional bodies was
to open up electricity
markets to deregulation,
allowing retail choice for
consumers. Until the RTOs
were
established, single
local entities owned and
controlled the entire
generation, transmission,
and distribution of power.
Consumers had little to no
choice as to the source of
the electricity that they
were buying.
There are regions of the
United States where RTOs and
ISOs do not exist. Much of the
west and the majority of the
Southeastern states do not
participate in wholesale
markets. The utilities in
these regions interact with
each other through bilateral
contracts and purchasing
agreements in order to comply
with FERC requirements.
Chicago
Taking the Lead in Green
Office Buildings
In the
most recent annual study
published by CBRE Group Inc.
and Maastricht University, a
Dutch institution. 66% of the
square footage of
Chicago's office buildings are
now LEED certified. Chicago,
ranking first in the United
States by percentage,
is followed by San
Francisco, Atlanta, Houston,
and Minneapolis / St. Paul.
Chicago
has incentivized office
buildings to make energy
sustainability the norm rather
than the exception.
Furthermore, Mayor Emanuel has
pledged to have all city-owned
buildings committed to 100%
renewable energy sources by
2025.
For more details about this
story, click here
Deregulated
Markets Benefit Consumers
Yet
another comprehensive study
has shown that consumers who
are offered a choice in retail
electricity marketsfare far
better than those who are
subject to utility monopolies.
The White Paper (linked below)
was sponsored by the Retail
Energy Supply Association and
authored by Philip R.
O'Connor, Ph.D., former
chairman of the Illinois
Commerce Commission.
Dr. O'Connor shows that in the
states with deregulated and
competitive energy markets,
prices have trended downward.
All the while, states with
monopoly utility regulation
have seen an 'inexorable' rise
in prices.
Additional states have
recently begun to more
vigorously debate the merits
of deregulated markets as a
result of this downward trend
in pricing.
For
more details about this study,
click here.
The RESA website can be found here.
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