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From YouTube: Webinar: Reliability, Risk and Energy Diversity
Description
The nation's energy mix is changing quickly. The retirement of coal power plants, growth of natural gas, rising renewable energy production and the threat of nuclear plant retirement have created an environment that may pose a risk to a reliable electric grid. The cold of last winter's polar vortex placed great strain on the grid in much of the Midwestern and Northeastern U.S., bringing some to question whether the current mix, combined with existing infrastructure and market design, will make it more difficult to keep the lights on during severe weather or other events that may challenge the grid. The webinar looks at the risks posed by the changing mix, explores how the polar vortex event severely challenged some parts of the grid and discusses a variety of solutions. Speakers include representatives from regional transmission organizations, including ISO-New England and PJM Interconnection.
A
A
A
Our
webinar
today
is
quite
time
and
I
think
deals
with
some
critical
issues,
focusing
some
extent
on
how
changes
in
energy
generation
cluding
the
retirement
of
coal
plants,
potential
retirement
of
nuclear
generation,
along
with
their
eyes,
natural
gas
and
renewable
energy,
may
affect
the
reliability
and
resilience
of
the
grid.
We
have
some
excellent
speakers
today,
but
before
we
get
I
just
want
to,
let
you
know
we
will
have
the
presentations
and
then
follow
that
with
a
question
and
answer.
A
So,
if
you
do
have
questions
at
any
time
feel
free
to
type
them
in,
on
the
right
hand,
side
in
the
question
box,
and
we
will
have
our
speakers
answer
those
we
may
can't
address
a
few
of
those
questions
after
each
presentation,
but
will
probably
wait
for
the
end
of
this,
the
webinar,
depending
on
how
many
we
get
one.
Also,
let
you
know
that
the
webinar
and
presentation
slides
will
be
recorded
and
posted
on
the
MSL
website
and
we'll
be
sending
out
a
notice
with
a
link
to
these
resources.
A
B
If
we
can
go
to
the
next
slide,
we'll
get
started
beat
some
of
you
may
be
very
familiar
with
the
electric
industry.
Some
of
you
may
be
new
to
it,
but
all
so
what
I'll
do
is
I'll
go
for
a
few
kind
of
key
concepts
and
key
jurisdictional
things
to
keep
in
mind
as
we
we
talked
to
date
here
to
help
sort
of
sort.
Some
of
these
things
out,
because
electricity
is
kind
of
it
can
be
a
thorny
area
from
a
jurisdictional
standpoint,
and
it
can
be
one
that
is,
is
pretty
complicated
pretty
fast.
B
When
you
talk
when
we
start
talking
about
some
of
the
journey,
three
really
important
concepts
to
keep
in
mind
this
about
electricity
is
that
it's
really
three
separate
entities
in
a
sense
and
how
we
regulated
in
some
ways
is
is
tied
to
this.
You
have
three
components
of
delivering
electricity
to
end
use.
B
Customer
generation,
which
is
the
production
of
electricity
transmission,
which
is
those
high
voltage
lines
that
connect
the
generation
to
local
areas
that
need
it
and
oftentimes
generation
is
distant,
and
then
you
have
distribution,
which
is
really
the
lower
voltage
lines
that
distribute
the
power.
Then
then
use
customer
actually
use,
and
you
can
think
about
this,
those
lines
that
are
within
your
towns
and
communities.
Next,
white
fur
and
states.
The
federal
government
and
states
share
aspects
of
electricity
jurisdiction.
B
So
what
I'll
do
is
go
over
just
a
few
of
the
area's
among
many
of
the
duties
that
FERC
does
and
many
of
the
duties
that
states
do
at
least
as
it
pertains
to
our
discussion
today.
The
federal
government
through
FERC
overseas
wholesale
sales
of
electricity,
in
other
words
those
are
sales
that
are
not
for
end
use
consumption,
but
between
generally
utility
companies.
B
It
oversees
the
reliability
of
the
bulk
power
system,
which
is
the
greater
larger
transmission
grid,
not
so
much
reliability
within
distribution
networks
or
within
towns,
but
the
system
itself
transmission
of
unbundled
electricity,
in
other
words,
transmission
lines
that
have
been
unbundled,
jurisdictionally
from
distribution
and
generation.
If
someone
uses
those
lines,
costs
have
to
be
allocated
and
so
costs
for
interstate
electric
transmission
are
allocated
at
the
federal
level
by
FERC
all
non-federal
hydropower
projects
or
generation
projects
are
cited
by
FERC.
B
B
In
fact,
really
almost
all
the
limited
exceptions
is
an
exception.
That's
created
in
law,
but
has
really
never
been
used,
most
permitting
of
inciting
of
transmission,
and
almost
all
generation,
citing
with
the
exception
of
non-federal
hydropower,
is
a
state
activity,
federal
one
oversight
of
transmission,
of
bundled
retail
electricity,
in
other
words,
a
vertically
integrated
utility
company
that
has
not
either
unbundled
or
given
up
control.
B
Operational
control
to
the
two
regional
grid
operator
is
a
is
a
state
retail
activity,
and
then
merger
and
acquisition,
of
course,
is
the
state
activity,
and
it
shared
that
shared
with
the
federal
government,
as
well
as
certain
other
public
policies
like
public
utility
regulatory
policy
act,
integrated
resource
planning
for
monopoly
utility
companies,
renewable
portfolio
standards
as
they're
all
state
issues.
Next
slide.
B
This
is
a
direct,
your
attention
to
a
really
key
report
for
those
of
you
that
are
interested
in
reliability,
and
it's
it's
put
out
by
a
nonprofit
corporation
called
Newark,
North
American
Electric
Reliability
corporation,
which
is
the
Electric
Reliability
organization
that
FERC
has
designated
nationwide
to
work
with
us
in
both
reliability
standards,
development,
as
well
as
auditing
and
enforcement
of
utility
companies
for
their
mandatory
reliability
standards.
They
came
out
with
report
December
of
2013.
That
is,
is
offer
some
guidance
in
terms
of
things
to
be
aware
of
over
the
next
ten
years.
B
With
regard
to
electric
reliability,
the
we'll
go
through
these
one
by
one,
their
key
findings,
resource
adequacy.
In
other
words,
what
are
the
reserve
margins
that
are
going
to
be
available
in
that
are
really
required
to
ensure
that
there's
stable,
Electric
Reliability?
They
highlighted
two
areas
of
concern.
One
is
my
so,
which
is
the
midcontinent
iso
and
I'll
show
you
a
map
of
where
that
is
in
texas
is
another.
B
Although
I
understand
the
Texas
has
subsoil
done
some
modeling,
they
think
they
have
a
little
bit
more
breathing
room,
but
there's
some
concern
about
the
the
adequacy
of
reserve
margins
over
the
next
ten
years
in
those
two
areas,
specifically
high
levels
of
variable
generation.
In
other
words,
lots
of
wind
lots
of
solar
lots
of
intermittent
type.
Resources
are
coming
on
the
grid
and
art
are
something
that
you
need
to
be
very
aware
of,
and
mindful
of
in
terms
of
operational
and
planning
challenges
that
exist.
B
One
of
the
things
I
should
have
said
before
I
started.
This
slide
is
the
one
thing
that's
really
important
to
keep
in
mind
with
reliability,
which
is
make
sets
electricity
apart
almost
from
from
anything
else
you
can
think
of
which
is
that,
in
order
to
have
reliable
electricity,
production
and
consumption
have
to
be
in
balance
almost
exactly
in
real
time
at
all
times,
which
makes
it
a
much
different
product
and
offers
lots
of
challenges.
Number
three:
fossil
fuel-fired
outages
from
those
fossil
generation
plants.
B
B
This
is
a
really
important
one
to
keep
in
mind.
In
fact,
I
were
to
put
on
a
map
that
I
think
is
kind
of
most
important
in
terms
of
understanding
electricity.
It
might
be
this
one
when
you
talk
about
energy
delivery,
electricity,
delivery
in
the
u.s..
It
is
a
very
regional
question
how
energy
is
produced
and
how
its
regulated
in
different
parts
of
the
country
are
very,
very
different,
and
so
that
has
a
lot
of
implications
on
what
is
going
to
happen
in
your
specific
something
it
might
be.
B
A
huge
issue
is
not
an
issue
somewhere
else
and
vice
versa.
Basically,
there's
three
regular
three
regulatory
models
in
the
country.
One
is
what
we'll
call
a
restructured
model
predominant
in
the
Northeast
and
in
Texas,
which
is
where
you've
unbundled
generation,
transmission
and
retail,
and
you
have
generally
retail
choice.
B
You
have
a
regulated
model
which
is
still
kind
of
the
old
traditional
vertically
integrated
utility.
That
is
not
part
of
a
regional
transmission
organization
or
anything
like
that
predominated
most
of
the
west
and
the
south
east.
Then
you
have
what
I
call
a
hybrid
model,
which
is
you
still
have
state
regulation
in
terms
of
having
very
integrated
map
utility
companies?
B
A
great
deal
of
state
authority
over
what
gets
built
in
terms
of
generation
because
of
that,
but
their
state,
that
of
also
the
utilities,
have
given
up
operational
control
of
their
transmission
systems
and
they
operate
in
a
in
a
day
had
energy
market,
and
they
are
parts
of
a
regional
transmission
organization
or
Independent
System,
Operator,
RTO
or
ISO,
and
those
of
those
states
in
green
next
slide
very
quickly.
This
is
summing.
Look
at
your
reference
later.
B
So
what
are
the
implications?
Why
do
I
say
that
map
is
so
important
role
for
me,
the
reason
that
it
is
because
if
you
are
in
a
more
regulated
state,
which
would
be
probably
the
the
regulated
or
hybrid
model
as
a
state,
usually
via
your
state
commission,
you
tend
to
have
more
direct
tools
that
are
available
for
ensuring
fuel
sources,
adversity
and
security.
B
So
you
can
just
tell
your
utility
basically
because
their
monopoly
utility
with
captive
ratepayers,
if
you
feel
like
a
pipeline,
needs
to
be
contracted
with
or
if
you
feel
like
you'd
like
to
have
some
sort
of
fuel
source
diversity
in
your
in
your
portfolio
mix.
You
can
basically
directly
have
that
happen
and
then
charge
those
cost
to
ratepayers
through
their
rate
base.
B
The
downside
is
people
will
sometimes
point
out
is
that
you
do
have
captive
ratepayers
and
who
have
to
pay
for
something
that
may
not
in
retrospect,
look
like
as
great
a
deal,
but
you
do
have
much
more
flexibility
in
terms
of
of
controlling
your
energy
mix.
Restructured
and
unbundled
states
have
the
ability.
That's
happened
to
some
of
the
efficiencies
that
a
marketplace
can
bring.
B
If
you're
having
the
market
choose
your
generation,
but
they
also
by
implication
that
have
less
direct
tools
available
to
deal
with
the
ramification
of
things
like
the
dash
to
gas,
nothing
but
gas
being
built,
and
the
reason
for
that
is
remember
back.
That's
life
about
jurisdictional
separations.
If
you
are
a
restructured
state
and
you
have
put
the
burden
on
a
unbundle,
the
wholesale
generation
market,
wholesale
generation,
by
virtue
of
the
federal
Power
Act
itself,
is
a
is
a
federally
regulated
activity,
not
a
state
regulated
activity.
Next
slide,
recently
held
a
winter
operations
conference.
B
We've
been
undertaking
a
multi-year
effort
to
assess
the
increasing
interdependencies
of
electricity
and
natural
gas.
The
twenty
thirteen
and
fourteen
winner
is,
you
all
know
for
most
of
the
country.
Was
these
large
parts
of
it
was
a
pretty
harsh
one
and
revealed
some
stresses
in
this
system,
so
in
October
first,
we
held
a
conference
to
to
look
at
some
lessons
learned
over
the
last
few
years
and
most
specifically
with
the
winter
that
we
just
endured
next
life.
B
Speakers
to
follow
me
I'll,
be
talking
specifically
about
certain
regions,
so
we'll
turn
first
to
the
West
in
the
West.
The
system
generally
performed
fairly
well
this
winter,
but
admittedly,
and
have
less
stress
on
it
than
some
of
the
Eastern
and
Midwestern
states
that
have
a
very
harsh
winter.
There
were
concerns,
though,
mostly
related
to
some
technical
market
issues,
in
how
gas
volatility
was
allowed
to
be
priced
into
the
market.
B
Generally
speaking,
the
the
states
in
the
West
have
regulatory
structures
which
directly
have
an
ability
to
address
some
of
these
generation
and
diversity
security
issues
because
they
are
almost
all
fully
regulated,
States
next
slide
in
the
West.
One
of
the
big
issues
that
we
see
is
the
integration
of
variable
energy
resources,
large
amounts
of
wind
and
the
Northwest
you
have
large
amounts
of
wind
being
integrated
with
hydropower.
B
Resources
would
sometimes
doesn't
work
well
operationally
or
at
least
causes
some
concerns
in
the
southwest
lots
of
solar
lots
of
bruce
rooftop
solar
trying
to
integrate
at
the
distribution
level,
which
is
caused
all
sorts
of
implications
for
especially
state
regulators,
who
have
had
to
deal
with
some
rate
design
issues
that
have
come
up
in
been
very
controversial
in
certain
states.
And
then
you
can't
talk
about
the
west
without
california.
It's
it's
a
sort
of
proof
of
that
old
axiom
about
when
california
sneezes,
the
West
catches
a
cold.
B
B
States
have
great
latitude
to
implement
things
like
that,
to
the
degree
that
it
could
become
a
bulk
system,
reliability
issue
or
have
impacts
outside
California
on
interstate
markets.
There
can
be
FERC
jurisdictional
issues
triggered.
However,
next
slide
moving
to
the
Heartland
region,
which
Alton
group
together
is
the
midcontinent
is
oh,
my
so,
and
the
Southwest
powerful
spp
here.
Cole
retirements
are
a
major
issue.
My
so
has
indicated
that
they
anticipate
a
2016
shortfall
in
reserve
margins,
especially
in
their
north
and
central
regions,
which
is
basically
the
Upper
Midwest
which
could
impact
system
reliability.
B
If
it's
not
addressed
generally,
you
have
states
that
are
still
regulated,
so
there
are
mechanisms
to
support
the
fuel
security
and
diversity,
but
there
are
logistical
issues
that
remain
in
that
2015-16
timeframe.
When
you
will
have
a
lot
of
coal
plants,
a
lot
of
traditional
plants
trying
to
switch
over
all
at
once,
either
retrofitting
or
to
gas
and
logistically
it
will
be
very
important
for
good
planners
to
deal
with
that
time
frame
next
slide.
B
The
mid-atlantic
in
the
Midwest,
which
is
served
in
parts
of
the
Midwest
which
is
served
by
a
regional
transmission
organization,
called
pjm
I,
won't
spend
a
lot
of
time
on
this
because
I
know
Craig
is
going
to
be
talking
to
it
specifically,
but
its
a
mix
of
both
restructured
and
regulated
States.
There
are
many
coal
retirements
planned
in
this
part
of
the
country
or
gas
conversions.
It's
PGM
is
indicated.
B
This
and
this
region
has
been
focusing
a
lot
on
ways
to
ensure
that
those
demand
response
resources
actually
show
up,
because
it
will
be
a
big
deal
if
they
don't
from
reliability
standpoint
in
these
future
years
next
life
and
then
the
final
regional
touch
on
is
the
Northeast.
This
region
have
some
of
the
biggest
challenges
and
the
most
pressing
challenges
that
we've
we've
seen
some
of
the
reason,
especially
as
it
relates
to
winter
operations,
specifically
because
you
have
residential
and
commercial
gas
needs
competing
with
gas
generators.
B
There's
been
a
big
shift
to
gas
in
the
Northeast
where
coal
and
nuclear
have
for
lots
of
reasons,
some
of
them
public
policy
and
political,
have
kind
of
become
persona
non
grata
in
some
ways.
Some
of
the
problems
in
New
England
related
to
geography.
It's
not
a
resource-rich
part
of
the
country
from
energy
standpoint.
It's
also
part
of
the
country
that
tends
to
be
at
the
end
of
all
the
natural
gas
pipes,
so
they
have
had.
They
have
issues
just
gas
pipe
capacity.
B
Some
problems
relate
to
specific
market
constructs
in
how
generators
get
paid
and
how
they
can
pass
along
those
costs
and
what
the
incentives
are
built
in
for
those
generators
and-
and
so
they
have
had
some
challenges,
especially
on
days
when
you
have
gas
dependent
electric
utilities.
Looking
for
a
limited
supply
amount
of
gas
coming
into
a
region
that
also
has
colder
than
average
temperatures,
and
then
some
of
the
issues
just
relate
to
public
policies
that
can
work
at
cross-purposes
of
market
constructs.
B
You
have
a
region
that
has
restructured
the
state's
directly,
don't
have
authority
to
say,
ordered
diversity
in
the
way
that
may
be
a
more
restructured
state
would
instead
they've
put
their
eggs
in
the
market
basket.
Market
signals
are
to
determine
that,
but
sometimes
that
can
cause
difficulties
in
terms
of
capital
formation
and
getting
resources
built
that
need
to
be
built
next
slide.
B
Looking
ahead,
I
have
just
a
couple
points:
I'd
seifert,
the
state's
state
regulatory
commissions
have
to
continue
engaging
directly
with
utilities
and
our
regional
grid
operators
to
ensure
that
we
have
adequate
electricity
resources
going
forward,
and
if
there
are
inadequacies
that
exist,
use
those
regulatory
tools
that
you
have
in
your
state's
individually
and
we
have
it
fer
to
correct
some
of
those
problems.
Number
two:
we
I
think
we
need
to
encourage
more
transparency
in
the
process
for
understanding
how
grid
reliability
is
going
to
work,
as
it
relates
to
impending
EPA
regulations.
B
B
Things
like
fuel
source
security
or
fuel
source
diversity,
which
are
things
that
apparently,
are
not
very
well
now
being
valued
into
the
into
the
market
and
then
the
next
slide,
especially
for
these
regions
like
parts
of
the
mid-atlantic
and
the
Northeast
that
have
restructured
these
issues
are
somewhat
an
existential
question.
I
think
for
the
future
of
these
competitive
markets,
because,
politically
speaking
in
each
of
your
state's,
if
widespread
power
outages
become
common.
So
you
have
your
liability
issues
or
you
have
electricity
price
spikes.
B
Repeatedly
it's
going
to
draw
into
question
the
entire
unbundled
restructured
construct
and
that's
something
it
will
be
very
jarring
for
some
of
these
states
that
are
going
through
it.
So
I
think
it's
an
issue
that
we
all
have
to
work
together.
On
to
make
sure
that
it
gets
addressed
next
slide,
I'll
just
put
up
that's
my
contact
information.
If
you
ever
feel
need
to
get
ahold
of
me
or
my
staff
or
ask
any
questions,
please
feel
free
to
do
so.
The
the
numbers
listed
there
and
thanks
for
the
invitation
to
be
with
you
here
today.
A
Thanks
so
much
Commissioner
Clark,
that
was
an
excellent
overview
and
quite
informative.
I
must
say
and
I
think
all
of
our
attendees
would
would
agree
with
that.
Our
next
presenter
is
is
Craig
glazier,
who
serves
as
the
vice
president
for
federal
government
policy
for
pjm
interconnection.
In
this
capacity,
mr.
glazier
coordinates
all
of
pgims
regulatory
and
legislative
policies
before
Congress
the
Federal
Energy
Regulatory
Commission's,
the
united
states
department
of
energy
and
other
federal
agencies
prior
to
coming
to
pjm.
Mr.
A
glazier
served
as
commissioner
and
chairman
of
the
Public
Utilities
Commission
in
Ohio
as
one
of
the
longest
serving
chairs
of
the
Ohio
Commission
mr.
glazier,
oversaw
Ohio's
moved
toward
deregulation
of
its
telephone,
natural
gas,
transportation
and
electric
industries,
and
just
before
I
we
move
on
to
Craig's
presentation.
I
just
wanted
to
remind
folks
that
they
are
free
to
ask
questions
and
type
them
in
the
question
box
on
the
right
hand,
side
of
their
screen
so
without
further
delay.
We
welcome
Craig
Craig
Glazer,
okay,.
C
Thank
you
thanks,
commissioner,
and
thank
NCSL
for
doing
this.
These
webinars
are
always
a
little
cough.
I
actually
used
to
do
community
theater
in
my
former
life,
and
then
we
told
you
to
connect
with
your
audience
and
it's
a
little
hard
to
connect
with
an
audience
you
can't
see,
but
I
know
you're
out
there
and
I
appreciate
it
very
much
so,
hopefully,
if
I
was
connected
and
content,
if
not
visually,
let
me
start
with
a
just
a
little
overview
about
pjm
and
greetings
from
pjm.
We
are
the
Commissioner
talking
about
regional
transmission
organizations.
C
We
are
the
one.
The
dark
blue,
serving
roughly
from
Chicago
to
North
Carolina
up
to
New
York
border,
make
that
into
a
song
one
of
these
days
and
some
figured
out
how
to
do
that,
but
a
very
large
RTO,
165,000,
megawatts
of
load,
185
thousand
megawatts
of
generation
serving
13
states
and
61
million
customers
and
really
owned.
One
of
the
population
Heartland
ends
of
the
United
States,
and
this
is
a
quick
aside.
Although
I
can't
tell
you
where
it
is,
our
control
center
is
actually
in
an
underground
bunkers
that
offer
you
history
buff.
C
It
actually
was.
We
purchased
it
from
AT&T
and
it
was
part
of
the
communications
network
of
the
Kennedy
Khrushchev
hotline.
So
anybody
ask
me
questions
about
that.
I
of
all
I
can
tell
you
the
location
a
little
bit
of
history,
and
it
makes
a
great
underground
control
center
I
just
to
go
quickly.
We
talked
about
Twitter
did
a
great
job
of
talking
about
the
industry.
This
is
an
industry,
that's
buffeted
by
lots
of
wins.
It
always
has
been
that
way
and
electricity
usage.
It's
appropriate
that
sort
of
start.
C
As
we're
talking
about
changes,
it's
always
been
uniquely
tie
to
the
state
of
the
economy.
When
the
economy
is
good.
Electricity
usage
is
up
because
industrial
consumption
is
up,
commercial
consumption
is
up,
people
are
building
more
etc.
That's
that's
one
of
the
factors.
The
weather
is
another
factor.
People
like
their
air-conditioned
in
the
summer
that,
like
their
heat
in
the
winter,
very,
very
dependent
on
weather
conditions
price.
C
I've
been
doing
this
for
many
many
more
years
than
I
care
to
say
at
this
point,
and
we
are
seeing
a
change
out
in
the
generation
fleet
that
that
normally
when
I
started
this
business
took
a
decade,
maybe
15
years,
we
are
changing
out
the
fleet
in
basically
three
to
five
years.
So
with
something
of
a
shock
to
the
system
and
I'll
talk
about
how
we're
managing
it,
we
are
seeing
plant
retirements
coming
at
us
from
lots
of
different
reasons.
One
of
them,
quite
frankly,
is
the
recession
which
hit
this
industry
yard.
C
We
in
pjm
are
essentially
predicting
flat
low
growth,
basically
very
little
growth
in
demand
for
electricity,
not
a
good
sign
for
the
economy,
and
this
recession
has
really
hit
the
industry.
Are
we're
seeing
coal
plant
retirements
as
a
result
of
EPA
regulations,
as
well
as
low
natural
gas
prices
that
put
the
squeeze
on
these
coal
plants?
Nuclear
plan
by
ability
has
recently
come
to
the
fore.
C
We've
got
a
18
fleet
of
nuclear
plants,
they're
going
to
require
certain
upgrades
and
we've
got
a
lot
of
low
gas
prices
squeezing
out
the
nuclear
plants
as
well
as
wind
generation.
Interestingly
enough
at
three
in
the
morning
we
find
wind
generators,
a
nuclear
plant
sort
of
fighting
with
each
other
and
price
is
going
negative
and
finally,
one
particularly
relevant
I'll
come
back
to
is
future.
We
depend
a
lot
of
the
commissioner
said
on
customer
driven
response,
demand
response,
energy
efficiency.
C
As
the
commissioner
said,
that's
going
to
be
stress
tested
more
than
ever,
because
we
are
depending
on
it
whether
we
like
it
or
not,
as
a
greater
and
greater
part
of
the
resource
portfolio.
Customers
are
going
to
be
asked
to
do
more
and
not
just
be
passive
users
of
electricity.
They
get
paid
for
doing
that,
but
they're
going
to
be
stress,
tested
a
lot
more
than
they
have
in
the
in
the
past.
C
Where
does
that
leave
us
a
couple
of
points
and
number
one
point
I
want
to
stress,
particularly
in
the
pjm
region.
We
will
have
adequate
reserves
to
meet
the
future
expected
need.
That
is
our
job.
We
are
not
going
to
let
the
lights
go
out
and
we've
got
a
variety
of
mechanisms
in
the
short
term,
to
keep
the
lights
on
to
procure
enough
resources,
but
do
enough.
C
So
we
have-
and
we
have
in
fact
procured
those
resources,
at
least
on
a
three-year
rolling
basis,
but
things
are
going
to
get
a
lot
I
see,
ur
are
for
one
there.
Actually
people
say:
there's
not
enough
diversity,
we're
actually
we're
going
to
in
our
region
we're
going
to
be
more
diverse
up
until
this
point
we've
been
very
heavily
dependent
on
coal,
we're
going
to
have
a
much
greater
mix
of
gas-fired
generation,
demand,
response,
renewables,
etc.
C
That's
good
and
bad,
and
we
can
talk
about
that,
but
one
of
them
not
so
good
things
is
about.
That
means
a
lot
of
price
volatility.
Natural
gas
is
extremely
volatile
price.
We
saw
that
this
winter,
as
you
have
more
and
more
the
fleet
dependent
on
that
customers
see
that
eventually,
in
their
bills
and
frankly,
the
traditional
cushion
that
we
had
when
we
had
lots
of
big
old
coal-fired
generation
with
large
big
coal
piles,
which
is
when
I
started.
This
business
is
really
changing.
C
Much
of
that,
traditional
cushion
that
we
had
has
really
gone,
and
you
can
see
it
in
the
next
slide.
We
still
have
a
healthy
mix
of
cold
calls
not
going
away
in
our
region,
but
what's
interesting
is
you
can
see,
look
at
2007,
vs
2016
and
you
see
in
a
almost
an
exact
swap
of
a
reduction
of
coal
and
an
increase
in
natural
gas
as
a
result,
and
unfortunately,
it's
not
evenly
spread.
As
you
can
see,
we've
got
a
lot
of
the
red
reflex.
C
Cole
retirement
Cole
traditionally
has
been
in
westridge
along
the
Ohio
River
Valley,
and
that
region
is
seeing
a
lot
of
reductions
in
coal,
but
we've
now
got
a
lot
of
new
resources,
including
wind
on
the
Allegheny
mountain
ridges
of
gas
plans,
closer
to
customers,
etc.
So
really
a
a
mixed
bag
of
a
certainly
a
more
challenging
one.
C
Let
me
go
quickly
to
the
january
2014,
because
I
think
it
was
sort
of
a
real
indicator.
Twitter
Clark
from
North
Dakota
says
you
know
the
typical
winter
day
is
North
Dakota,
but
and
in
our
region
this
was
not
a
difficult
day.
We
had
below
zero
temperatures
in
Columbus
Philadelphia,
Chicago
Richmond,
and
this
was
sort
of
a
lot
of
sort
of
indicators
from
this
a
little
bit
of
a
canary
in
the
coal
mine
for
one
the
system
performed
perform.
C
Well,
we
didn't,
we
didn't
cut
anybody's
power,
but
we
saw
very
very
high
natural
gas
prices
and
I
talked
about
the
increased
amount
of
natural
gas
generation
we've
got.
This
is
relevant
to
you
all
as
legislators
and
legislative
staff,
because
it's
starting
to
hit
customer
bills
in
the
month
of
march.
In
the
month
of
April,
this
is
hitting
customer
bills.
Very
large
gas
prices
they
kept
the
lights
on
we
need
is
a
natural
gas,
but
it's
certainly
you
will
start
getting
letters
about
it
from
consumers.
C
If
you
have
in
constituents
of
you
haven't
we
also
a
more
troubling
feature
as
we
sort
of
poor
generator
performance
units
just
didn't
start
when
we
called
upon
them,
and
we
had
to
be
honest,
a
real
degradation
loss
of
performance
and
what
we've
had
in
the
past.
Some
of
this
may
be
because
of
the
requirements
of
generation
generation
going
away.
People
are
maintaining
their
units
that
we
had
a
CEO
just
recently
talked
about.
C
He
was
harvesting
those
units,
that's
what
he's
doing
at
this
point,
because
they
going
away
and
when
we
called
upon
a
number
of
units
they
didn't
start,
but
we
also
that
wasn't
limited
to
coal.
We
also
saw
you
know
nuclear
units
and
others
that
didn't
start
when
we
needed
them
and
that's
certainly
something
we're
digging
into
as
this
work
and
frankly,
we
also
saw
because
we're
becoming
more
dependent
on
natural
gas,
do
some
very
unpredictable
and
almost
opaque
aspects
of
the
natural
gas
market.
C
C
That
being
said
long
ago,
I
learned
don't
just
pose
a
problem
but
pose
the
solution.
I'm
not
saying
we
have
it
all
figured
out,
but
we
certainly
have
some
solutions
and
we're
looking
at
others
for
one.
The
good
news
is.
We
have
a
forward
capacity
market
that
has
worked
very
well:
we've
attracted
over
20,000
megawatts
of
new
generation,
that's
new
many
cases,
environmentally
compliant
clean
generation.
It.
B
C
C
C
Ok,
state
energy
policies,
governor's
legislators,
they
Commission's
FERC
environmental
agencies,
power
authorities-
what's
interesting
about
this
business-
is
that
it
is
so
the
authority
over
the
the
decision-making
is
so
diversified
among
different
regulatory
entities
among
different
types
of
constructs
that
it
gets
very
difficult,
sometimes
to
decide
who
actually
has
their
hands
on
the
throttle.
If
anyone
in
many
cases
there's
a
lot
of
diversity
of
authority,
that's
good
in
some
cases,
but
that
really
is
troublesome.
Is
you
try
to
move
forward
in
a
in
a
in
a
focused
direction?
C
So
let
me
close
by
saying
what
can
States
do
again?
I,
don't
want
to
dispose
problems
and
not
solution.
A
few
that
came
to
mind
they'll
be
more.
We
can
certainly
talk
about
a
lot
of
legislate.
Legislators
have
passed
renewable
portfolio
standards,
I,
don't
know
in
some
years,
I've
been
away
from
it,
but
how
much
of
that
has
really
involved
a
real
reliability
analysis
of,
what's
achievable
and
I,
sometimes
wonder
worried
that
we
do
sort
of
planning
by
bumper
sticker
I
mean
I've,
seen
renewable
portfolio
standards.
A
C
Thought
and
consultation
of
candy
gets
there
what's
the
price
of
getting
there
and
what's
the
reliability
situation
of
getting
there.
So
as
you
examine
these,
as
legislators
really
get
your
utility
get
your
regional
transmission
organization
get
the
FERC
involved
to
really
look
at.
Is
this
achievable?
C
Second
thing
states
can
do.
I
talked
a
lot
about
demand
response.
What
that
means
is
an
army
of
sales,
people
that
are
out
there
siding
customers
up
to
curtail
your
load
when
called
upon
an
emergency
conditions
by
the
RC
o.
Ok,
it's
a
new
niche
business.
It's
a
great
business!
We've
got
bless
them.
They
really
have
helped
us,
but
relatively
relative
to
States
is
the
truth
in
advertising
issue.
I,
don't
know,
I,
don't
have
a
force
to
go
out
there
and
see
what
people
were
saying
when
they're
signing
these
customers
up.
Are
they.
A
C
Them
don't
worry,
you'll
never
have
to
curtail
your
electric
usage.
I
just
mentioned
how
we're
going
to
see
more
calls
on
demand
response
in
the
future,
but
I
worry
sometimes
when
the
industrial,
instead
of
when
we
called
upon
them
the
cartel
uses.
Their
next
call
is
the
US
state
legislature
saying
we
ain't
doing
it.
We're
going
to
put
out
customer
we're
going
to
put
our
jobs,
we're
going
to
hurt
the
economy
and
we're
not
doing
it,
but
again
they
signed
up
voluntarily
to
do
it.
C
We
paid
them
and
we're,
depending
on
it,
so
making
sure
that
truth
and
advertising
is
out.
There
is
rightly
uniquely
a
state
role,
but
one
that's
important,
supporting
a
strong
delivery
system.
None
of
this
works
without
a
strong
set
of
wires
to
move
power
around
and
that
is
uniquely
or
not
uniquely,
but
very
much
a
state
function
and
state
legislative
and
regulatory
function
and
finally,
hey.
It's
really
important
that
you
work
with
your
neighboring
states
on
these
issues.
I
just
came
from
a
session
on
greenhouse
gas
regulation.
C
Electrons,
don't
don't
respect
state
boundaries,
they
really
don't
care,
they
move
around
and
it
is
very
hard
to
try
with
every
state
at
this
point
is
importing
and
exporting
power
is
moving
very,
very
quickly.
You
don't
control
it's
totally
within
your
say,
to
really
get
with
your
neighbors
more
than
ever.
Given
everything
that's
coming,
so
let
me
close
there.
We
certainly
welcome
visitors,
I'm
here
in
DC
and
we're
happy
to
answer
any
questions
you
have
as
well.
Thank
you
very
much.
A
Thanks
correct
for
that
excellent
presentation,
I
think
that's
really
provided
a
good
overview
of
what
some
of
the
reasons
are
facing
and
some
of
these
introduction
to
some
of
these
critical
issues.
I
want
to
add
that
at
any
time
again
we
enter
your
question
on
the
right
hand,
side
in
the
question
box
and
we'll
be
happy
to
have
our
presenters
and
answer
those
questions
after
this
next
presentation.
A
So
our
next
presenter
is
Jeff
turcotte,
he's
the
federal
external
affairs
representative
for
iso
new
england
and
brings
an
extensive
knowledge
of
capitol
hill
in
legislative
process
to
ISO
New
England,
where
he's
responsible
for
designing
and
coordinating
the
iso's
interactions
with
Congress
and
various
federal
agencies
prior
to
joining
iso.
New
england
in
2010
turcotte
serve
as
the
director
of
federal
affairs
in
Washington
DC
office
of
the
New
England
Council
New,
England's
largest
nonprofit
business
alliance.
A
D
Thank
you
I
appreciate
the
invitation
we
would
deal
today
and
thank
you,
everybody
out
there
for
joining
us.
How
if
we
go
to
the
first
slide,
just
a
little
bit
of
background
on
New
England
for
those
that
may
not
be
familiar
with
our
system.
We
are
roughly
a
30
32,
34
thousand
megawatt
system
by
capacity
about
six
and
a
half
million
households
about
14
million
residents.
We
are
a
summer
peaking
system,
so,
as
you
can
see,
our
all
time
p
equals
a
little
over
twenty
eight
thousand
megawatts
back
in
2006,
an
interesting
note
about
this.
D
Last
winter
we
actually
did
not
set
an
all-time
peak
for
electricity
demand
from
December
through
februari.
We
actually
passed
the
decade
mark
from
when
we
set
that
all
temperature
peaked
at
in
2004,
and
we
even
didn't
set
our
winter
peek
for
this
previous
winter
for
december
january,
during
the
polar
vortex
or
the
cold
snaps
in
February,
we
actually
set
it
back
the
third
week
in
december,
when
a
lot
of
good
new
limit
folks
were
snowed
in
and
awaiting
christmas.
So
just
a
quick
snapshot.
We
go
to
the
next
slide.
D
The
first,
and
maybe
the
most
important,
is
a
significant
increase
in
natural
gas-fired
generation
and
obviously
growing
dependency
on
natural
gas
or
that
power
generation.
But,
as
we've
grown,
that
dependency
of
New
England's
dependency
on
natural
gas
has
increased,
we
have
not
seen
a
corresponding
increase
in
gas
pipeline
infrastructure
in
New
England.
It's,
whether
some
significant
pipeline
constraints
in
our
region
and
I'll
talk
about
that
a
little
bit
more
in
a
moment.
C
D
Things
of
that
nature
Craig
also
mentioned
that
as
we're
seeing
the
shift
in
electricity
production,
wien
lumen
are
certainly
seeing
a
noticeable
decline
in
performance
of
many
of
these
power
system
resources.
That's
leading
to
even
greater
reliability
challenges
for
us,
so
we
go
to
the
next
slide,
want
to
just
put
a
few
numbers
behind
to
quantify
a
little
bit
the
shift
in
production
that
we're
seeing
in
New
England,
and
this
is
a
chart
of
electrical
energy
production.
So
this
is
not
a
capacity
chart.
D
This
is
actually
the
sources
of
fuel
that
are
generating
electricity
for
us,
a
new
england,
and
if
you
just
look
at
the
dark
blue
bars
it's
the
year
2000
and
when
I
look
at
this
chart,
I
see
a
relatively
balanced
generation
fleet
in
the
region.
Their
little
over
thirty
percent
nuclear,
your
oil
and
coal
fleet
is
about
forty
percent.
Natural
gas
is
a
little
less
than
assist
a
sixth
you
have
some
hydro
and
other
renewables
worked
in
there
fast
forward
to
last
year.
D
What
you
said
nuclear
is
still
about
a
third
of
our
generation,
but
when
we
look
at
that
oil
and
coal
piece,
it's
gone
from
about
forty
percent
combined
to
less
than
seven
percent
combined
and
that
oil
piece
there
is
actually
less
than
one
half
of
one
percent.
During
that
period
of
our
dependency,
natural
gas
become
fifteen
percent
power
generation
well
tripled
at
and
in
fact,
if
you
looked
at
the
year,
2012
instead
of
2013
over
half
of
our
generation,
fifty-two
percent
came
from
natural
gas-fired
resources.
D
So
we
are
really
seeing
that
you
have
and
continue
to
see,
a
significant
shift
and
where
we
are
getting
our
electricity,
so
we
could
go
to
the
next
slide.
What
does
this
meant
for
reliability,
specifically
in
New
England?
First,
it's
made
us
much
more
dependent
on
the
just-in-time
fuel
supply
that
natural
gas
resources
use.
Rhea
newington
do
not
have
a
substantial
amount.
We
actually
have
very
little
storage
in
the
wing
of
fur
natural
gas,
so
you're
very
dependent
on
having
resources
that
can
get
gas
and
use
it
immediately.
D
At
the
same
time,
the
coal
and
oil
fleet
and
a
specific
nuclear
unit
that
I'll
talk
about
later
that
for
years
have
manageable
on-site
inventories
and
base
load
power.
Plants
for
us
are
being
displaced
by
more
efficient
resources.
Encouraged
in
many
cases
are
the
same
natural
gas
plants
that
are
reliant
on
in
just
in
time
fuel
supply.
We
are
seeing
a
reasonable
growth
in
intermittent
resources.
We
expect
about
eighteen
hundred
megawatts
of
solar
photovoltaic
on
the
system
over
the
next
decade.
D
This
wind
number
for
our
friends
in
PGM
or
Texas,
or
the
midcontinent
ISO-
may
not
seem
all
that
impressive.
But
when
we
look
at
2000
megawatts
of
wind
proposed
in
New
England
right
now
to
put
that
in
perspective,
we
only
have
about
750
megawatts
of
capacity
nameplate
capacity
in
New
England
at
the
moment.
So
when
should
look
at
750
megawatts
in
and
understanding
that
we've
got
2,000
megawatts
enter
and
your
connection
to
you,
it
certainly
doesn't
make
a
big
difference.
Oh
so,
why
don't
we
actually
go
to
the
next
slide?
D
D
Typically,
our
oil
fired
power
plants
more
costly
to
operate
and
you're
less
efficient,
so
they're
not
running
as
frequently
in
our
markets
again
in
2012
and
2013
they're,
producing
roughly
about
one
half
of
one
percent
of
our
electricity.
However,
high
price
of
natural
gas,
this
winter
caused
us
to
run
those
oil
fired
power
plants,
a
substantial
amount
and
we
did
it
in
economic
merit,
meaning
they
were.
They
were
economically
the
least
cost
resource
for
us
to
run
at
that
time.
D
What
else
did
we
see
this
winter?
We
learned
that
we
are
actually
even
more
pipeline
constraining.
We
previously
understood
the
pipes
coming
from
the
south
and
the
West
during
Marcellus
Shale
directly
to
the
region.
We
understood
the
constraints
on
those
pipes
and
realize
that
actually,
almost
all
the
pipes-
communes,
New
England-
are
constrained
at
this
point.
So
if
we
can
go
to
the
next
slide,
please
what
does
this
mean
to
priceless
priceless
essentially
become
our
symptomatic
of
what
we're
seeing
on
the
pipeline
and
some
of
those
constraints.
D
As
you
can
see,
the
value
of
the
energy
market
in
New
England
went
from
5.2
billion
to
eight
billion
dollars
in
just
a
year
now
to
continue
with
this
trend,
if
you
think
about
just
the
months
of
December
2013
in
January
and
february2014,
the
value
of
our
energy
markets,
just
in
those
three
months
alone,
with
5.5
billion
dollars.
So
within
shouting
distance
pull
these
off
for
the
entire
calendar
year
of
2012.
D
So,
looking
at
some
of
the
address
generation
that
we
have
in
the
New
England
region,
we
have,
as
I
mentioned,
made
it
through
these
past
two
winters
by
really
relying
heavily
on
non
natural
gas-fired
power
plants.
But
that's
a
landscape
that
is
changing
rapidly.
Craig
talked
a
little
bit
about
pjm.
We
are
seeing
something
similar
in
New
England
as
well
by
the
upcoming
winter,
so
that
we
think
will
begin
December.
First
of
2014,
we
will
have
seen
the
retirement
of
a
nuclear
plant
in
Vermont.
D
That's
the
Vermont
Yankee
station
before
pull
it
down,
as
well
as
colon
oil-fired
plants
in
the
Greater
Boston
area,
totaling
about
1,200
megawatts
worth
of
generation,
which
will
mean
fewer
non
natural
gas
resources
available
for
our
operators
by
2017.
The
grade-point
station,
which
is
the
third
bullet
down,
will
be
retired.
That's
another
resource
than
the
supposing
called
the
Greater
Boston
rhode
island
area
for
us
in
New
England.
D
So
our
dependence
on
natural
gas
is
only
going
to
increase
because
when
we
look
at
the
art
in
our
connection
cute,
if
we
could
go
to
the
next
slide,
what
we're
looking
at
here
is
sort
of
a
visual
representation
of
our
interconnection
q.
It's
essentially
a
list
of
projects
listed
generation
projects
that
have
shown
interest
in
being
built
and
interconnecting
into
the
system
in
our
role
as
the
reliability
entity
for
New
England.
We
study
these
projects
to
be
sure
that
their
interconnection
into
the
grid
will
not
have
any
adverse
reliability
impacts.
D
So
we
take
a
snapshot
of
what
our
inner
connection
q
looks
like.
We
see
that
over
half
fifty
five
percent
of
the
megawatts
in
that
queue
are
for
natural
gas-fired
resources,
the
bulk
of
the
rest
of
it
or
wind
resources.
I
mentioned
we're
about
750,
megawatts
capacity,
wind
right
now,
looking
to
grow,
not
only
the
natural
gas,
but
the
wind
portion
as
well.
We
can
go
to
the
next
slide.
Please.
D
This
is
just
like
this,
it
sort
of
shows.
I
think
it
was
Commissioner
Clark
that
mentioned
that
New
England
is
not
necessarily
a
resource.
Rich
region
we'd
like
this
map
link,
as
it
shows
that
there's
a
lot
of
natural
gas
out
there
Craig's
backyard
through
the
mid-atlantic
and
down
into
the
south.
We
don't
share
a
lot
of
that
Emil
inland
we
are.
We
are
very
reliant
on
transportation
of
one
form
or
another,
and
certainly
when
we
talk
about
natural
gas,
that's
that's
a
question
of
pipeline.
We
could
go
to
the
next
chart
please.
D
D
Why
is
that
important
for
new
inning
that
we
build
that
transmission,
because
most
of
our
best
wind
resources
are
either
offshore
or
they're
in
the
northern
tier
across
one
in
Vermont,
Northern,
Hampshire,
northern
Maine
and
our
major
load
center,
where
we
see
our
highest
demand,
of
course,
our
Boston
through
a
worcester,
providence,
hartford
and
then
down
into
southwest
connecticut.
So
in
order
to
start
to
integrate
higher
levels,
renewables
word
of
need
to
build
the
wires
to
bring
that
power
to
market,
so
it
for
those
that
haven't
seen
it.
D
I
would
recommend
looking
at
the
governor
proposal,
as
I
mention
it,
I
think
it's
a
creative
solution
to
address
some
of
these
challenges
that
we
see
in
the
roman
region.
We're
certainly
appreciative
of
those
efforts
and
forward
to
continuing
to
support
them
as
they
work
through
the
sake
of
the
process.
D
If
I
could
go
to
the
last
slide,
as
I
mentioned,
we
in
doing
in
our
in
a
bit
of
a
precarious
position
with
this
rolling
reliability
problem
due
to
the
gas
pipeline
constraints
are
growing
demand
for
natural
gas,
growing
resource
performance
issues,
retirement,
so
the
non
gas-fired
generation
and
grow,
and
ever-growing
need
to
balance
an
increasing
amount
of
intermittent
renewable
energy
on
our
system.
So
with
that
I'm
happy
to
take
any
questions
and
turn
it
back
over
to
Glenn
and
again,
thank
you
all
for
the
invitation
to
be
with
you
today.
A
Thank
you
very
much
Jeff
an
excellent
presentation.
I
want
to
thank
all
of
our
speakers
for
their
great
contributions.
Today
we
do
have
a
number
of
questions
that
I'll
be
asking.
The
first
one
I
think
is
really
directed
towards
towards
Craig,
says
that
the
PGM
slides
on
generation,
so
that
nuclear
generation
does
not
change
by
2016.
But
what,
if
x1,
is
forced
to
close
multiple
plants
before
then
and
some?
They
know
that
they've
heard
as
many
as
5
clamps
and
pgma,
potentially
close.
C
This
is
great
Glaser.
Let
me
answer
it
this
way.
First
of
all,
I'm
not
sure
they
would
close
all
five
plants
at
once.
But
let's,
let's
posit
a
worst-case
scenario:
these
plants
are
what
we
call
capacity
resources,
meaning
they
have
committed
to
be
JM
and
then,
frankly,
the
monkey
is
on
exelon
back
at
that
point
if
it
closes
those
resources
to
get
substitute
capacity
of
stew
generation.
C
Now,
for
that
reason
alone,
they
probably
wouldn't
shudder
all
five
plants
at
once,
because
that
would
be
a
huge
challenge,
but
it's
not
as
if
we
don't
have
we
haven't.
We
don't
have
rules
to
address
that
situation
and
require
somebody
close
in
a
plant
that
they
come
up
with
substitute
resources
if
they're
a
capacity
resource.
A
Great,
thank
you.
This
is
more
I,
guess
a
general
question
which
could
be
addressed
by
all
all
three
of
you
really.
As
commissioner
Clark
brought
up,
the
FERC
has
more
of
jurisdiction
with
regards
to
the
deregulated
markets,
and
also
mentioned
the
diversity
and
security
is
not
potentially
being
addressed
in
those
markets.
What
is
seen
as
kind
of
a
solution
to
promote
diversity
in
deregulated
states,
either
potentially
by
policy
makers?
What
what
they
might
be
able
to
do
or
what?
In
addition
to,
maybe
at
the
federal
level,
diversity
and
security
value,
sure.
B
All
this
is
tony
clark
I'll
take
a
first
crack
at
it.
The
the
challenge
in
restructured
regions
and
states
is
this:
let's
say
that
you
have
a
challenge,
for
example
like
committing
the
new
england
states
have
where
there's
a
need
for
pipeline
capacity
to
be
built
in
a
in
a
still
regulated
state.
The
way
that
that
would
get
built
is
a
utility
commission
working
with
its
utilities.
Regulated
utilities
would
have
a
rape
case
or
would
have
a
great
resource
planning
case,
and
they
would
say:
okay
utility.
B
We
see
the
need
for
this
type
of
gas
plant
and
the
need
for
new
pipelines
to
be
built,
you're
authorized
to
build
them,
and
we
will
build
into
your
base
rates
the
cost
of
contracting
with
a
pipeline
which
pipelines
might
require
15
20
year
contracts
to
build
the
additional
capacity
and
that
will
get
built
into
rates
and
so
there's
a
capital
financing
mechanism.
The
challenge
in
in
restructured
regions
is
that
you
have
merchant
generators
who
are
competing
against
each
other.
B
Gas
is
the
low-cost
fuels,
so
they're
all
looking
to
turn
towards
it,
but
there's
not
a
there.
They're
looking
out
over
the
next
few
years,
not
really
interested
in
signing
a
15-year
or
20-year
contract,
because
the
markets
are
very
uncertain
and
they
may
not
be
able
to
recover
that
remember.
They
don't
have
captive
ratepayers
that
they
can
pass
along
those
costs
too,
and
so
there's
kind
of
a
catch-22:
that's
that's
been
created.
B
There
may
be
some
things
that
FERC
can
do
we're
in
the
initial
stages
of
trying
to
think
about
if
there
are
ways
to
price
in
fuel
security,
in
other
words
the
security
of
having
longer
term
contracts
into
the
marketplace,
so
so
security
and
performance
is
valued.
Iso
New
England
actually
has
a
filing
before
us
right
now
to
deal
with
with
some
of
those
issues.
B
In
addition,
there
are
things
that
states
can
think
about,
even
in
a
in
a
restructured
environment,
which
is
that
you
still
have
authority
over
retail
load
serving
entities.
One
of
the
the
things
that
has
been
brought
up
as
a
potential
way
to
Pat
Forde
in
some
of
these
regions
is
to
have
more
required
long
term
contracts.
You
require
your
local
utilities
to
have
longer
term
contracts.
C
Just
make
one
comment:
in
addition
to
that,
I
agree
with
signatures.
It's
definitely,
you
know
more
complexes,
more
things
you
need
to
think
about
in
a
restructuring
environment,
but
states
in
a
restructured
states
are
not
helpless.
We
have
lots
of
renewable
portfolio
standards
and
our
energy
markets
are
voluntary.
So
you
have
a
state
legislature
telling
the
load
serving
entities
by
this
amount
of
renewable
resources,
and
then
the
markets
that
we
run
is
really
voluntary.
C
They
can
do
it,
they
can
enter
into
bilateral
agreements
etc,
and
they
do
that
so
that
so
the
state
legislators
still
have
you
know
a
hand
on
the
throttle,
not
the
only
him,
but
they
do
have
a
hand
on
the
throttle
to
drive
those
decision
making,
even
in
a
restructure
stage
now
nobody
has
decided
that
they
want
to
have
a
portfolio
standard
that
says,
buy
coal,
but
they
could.
Nobody
has
a
portfolio
synthesis
by
nuclear,
but
they
could
so
I
just
wanted
to.
C
There
are
still
some
tools
here,
I,
don't
think
say
what
the
state
legislators
have
been
I'm,
not
saying
the
commissioner
says
it
violently.
David
totally
benched
in
this
process
and
the
energy
market
is
voluntary,
their
capacities.
What
was
different,
but
that's
another
old
lair,
but
we've
got
a
lot
of
people
within
our
markets,
responding
to
state
legislative
RPS
requirements
and
we
honor
those
facilitator.
A
A
C
Me
it's
a
great
question
and
it
is
certainly
something
I'm
not
going
to
be
Cavalier
and
say
it
isn't
something
that
we
don't
spend
a
great
great
deal
of
time.
Thinking
now,
but
just
so
people
are
aware
a
couple
of
components
of
that
for
one.
This
is
a
factual
matter.
Demand
response
has
actually
been
very,
very
responsive,
it's
expensive,
but
they
the
customer
performance
so
far.
This
is
where
I
worry
about
fatigue.
C
If
we
go
to
the
well
too
many
times,
but
right
now,
both
in
the
winter
I
was
very
helpful
and
in
the
summertime
and
it's
frankly
the
customers
get
paid
very
generously
for
that.
So
it's
been
I,
don't
want
to
say
it's
not
a
reliable
resource.
Just
like
I
have
generators
that
fail
to
start
aren't
always
there
demand
response
has
actually
had
a
pretty
good
performance
rate
so
far,
but
we
don't
just
rest
on
that
with
a
wish
and
a
prayer
for
one
we
procure
more
than
we
need.
We
don't
just
for
sure.
C
What
we
need
is
the
forecast
is
load.
We
procure
above
that
one
hundred
sixteen
percent
one
hundred
seventeen
percent
of
the
forecasted
peak
demand
for
just
those
kinds
of
situations,
and
we
build
that
level
of
saturation
or
fatigue.
If
you
will
into
our
forecast
and
then
frankly,
there's
penalties
for
demand
response.
If
they
don't,
we
call
an
emergency,
we
call
on
them.
The
pant
penalties
are
pretty
substantial.
Does
that
get
you
all
the
way
there
at
a
sense
of
dental
to
somebody?
No,
but
it
is
a
financially
losing
proposition.
C
D
Is
jamar
could
have
just
multiple
head?
No
I
just
want
to
follow.
We,
as
Craig
mentioned.
We
also
have
seen
fairly
robust
growth
in
demand
response
hospital
not
to
the
extent
of
pjm,
but
it's
been
a
very
valuable
tool,
a
very
valuable
resource
for
us
in
New
England.
We
most
of
the
time
dispatch
are
a
real
time
demand
response
when
we
enter
into
a
capacity
deficiency.
A
C
B
Sure
I
can-
and
this
is
really
a
probably
discussion-
that
separate
from
the
the
regional
transmission
organization
and
the
different
regional
markets,
because
they
directly
wouldn't
have
a
lot
to
do
with
it.
It's
as
much
as
anything
really
in
a
regulation
of
exploration
and
production
of
natural
gas
issue
for
does
get
implicated
somewhat
in
that
in
that
FERC
is
responsible
for
the
economic
regulation
and
as
well
as
the
environmental,
permitting
and
siting
of
interstate
natural
gas
pipeline.
B
So
if
part
of
the
solution
to
that
problem
is
getting
more
gathering
facilities
built,
some
of
it
is
getting
more
interstate
natural
gas
pipelines
built
so
that
those
the
product
can
be
delivered
to
market
and
not
flare
it
off
the
specific
to
the
Bakken,
which
has
probably
been
used
as
much
as
anything
as
an
example.
The
concern
for
flaring
of
natural
gas
that
the
reason,
if
that
happens,
is
almost
all
of
the
economic
value
of
the
product
that
is
being
sought
after
is
actually
captured.
B
The
the
issue
in
some
of
these
basins
is
it
is
a
liquids
first
place,
so
the
value
is
all
in
the
oil.
That's
that's
brought
up
in
the
gases
just
kind
of
associated
gas
that
comes
along
with
it,
which
is
much
different
than
regions
like
the
Marcellus,
where
they're
actually
going
for
the
gas
itself,
so
the
gas
comes
one
with
it.
You
have
fields
that
are
very
immature
another
brand
new,
a
lot
of
well
is
being
drilled
and,
and
so
the
need
is
really
to
get
the
infrastructure
caught
up.
B
So
you
have
gas,
get
gas
gathering
lines
and
processing
plants
and
interstate
pipelines
to
take
that
away
and
be
able
to
provide
the
the
product
to
market.
Fortunately,
that
that's
happening
it's
something
I
think
everyone
would
like
to
see
happen
faster,
but
without
be
laboring.
The
point
too
much
in
these
states
that
have
had
these
issues,
for
example,
in
North
Dakota,
there's
now
a
a
fairly
aggressive
timeline
that
the
state
commission
that
oversees
the
the
exploration
production
of
gas
has
to
be
able
to
bring
down
rather
rapidly
the
amount
of
gas.
B
That's
that's
flared
and
the
reason
that
it's
flared
I
should
make
one
quick
distinction.
There
was
talk
about
methane.
Many,
a
very
little
methane
is,
is
set
up,
and
the
reason
for
that
is
that
environmentally
it's
much
better
to
flare
it.
In
other
words,
why
Pat
torch
and
burn
off
the
natural
gas
as
opposed
to
simply
Bennett,
because
methane
I
think
by
a
factor
of
something
like
25
times
as
a
more
potent
greenhouse
gas?
You
don't,
if
you
don't
ignite
it
and
combust,
it.
A
Great,
thank
you
so
one
one
more
question:
we
have
time
for
here
and
I'm.
Sorry,
we
didn't
get
to
all
the
questions
from
our
attendees,
but
we
may
be
able
to
answer
those
after
after
the
webinar
as
well.
The
question
goes
to
distributed
generation
in
micro
grids
and
how
that
may
affect
the
future
of
demand
growth.
There's.
B
This
is
tony
and
I'll.
Take
a
quick
stab
at
it.
I
mean
microgrids
have
pulled
a
great
deal
of
potential,
the
whole
host
of
reasons,
one
from
reliability,
standpoint
to
potentially
from
cost
that
the
question
is
always
one
of
technology
and
cost.
So
you
can
do
you
can
do
a
lot
right
now
with
the
potential
for
micro
grids,
the
question
it
always
comes
up
and
any
sort
of
energy
policy
or
electricity
planning
is
as
compared
to
what
so
you're
always
comparing
costs
to
what
the
alternative
is.
B
There
hasn't
been
a
tipping
point
yet
in
terms
of
micro
grids
and
so
that
that
hasn't
happened,
but
there's
potential
for
technology
to
come
along
and
be
very
disruptive
in
the
utility
industry.
With
regard
to
things
like
rooftop,
solar
and
declining
costs
in
distributed
generation.
That
has
been
something
that
has
been
seem
very
heavily
in
certain
states,
especially
the
southwest
Arizona,
has
had
a
number
of
proceedings
with
regard
to
this
California
as
well.
B
The
challenge
for
states
and
for
state
regulators
is,
you
may
still
have
customers
that,
while
they
get
a
portion
of
their
energy
from
say
a
solar
panel,
they
may
still
be
leaning
on
the
grid,
quite
heavily
the
local
distribution
grids,
as
well
as
the
greater
regional
grid,
because
they
can't
provide
their
power.
All
the
title,
to
the
degree
that
they're
leaning
on
that
there
can
be
some
cross
subsidies
that
happen
where
those
people
who
don't
have
the
say,
solar
power
distributed
generation,
are
subsidizing.
D
And
this
is
jeff
without
trying
to
repeat
will
constrict
Clark
said
a
New
England.
We
are
serving
the
beginning
stages
of
looking
at
distributed
generation
and
trying
to
try
to
forecast
or
trying
to
understand
is
a
lot
of
a
lot
of
the
DG
in
New
England
business
may
imagine.
We
don't
have
a
lot
of
commercial
scale
of
solar
farms
and
it
was
shocking
from
any
of
you
both.
What
we
do
have
is
a
number
of
states,
including
Massachusetts,
that
are
pushing
this
smaller
again.
D
This
backyard
and
rooftop
solar
that
we,
the
broader
bulk
electric
system,
may
not
have
a
lot
of
insight
into.
So
what
we
are
trying
to
do
is
sit
down
with
state
commissions
with
utilities,
especially
to
get
a
handle
on
what's
out
there.
What
do
they
expect
will
be
coming,
I.
Think
one
of
my
slides
I
mentioned
we're
looking
at
a
fairly
substantial
forecast
for
pv
massachusetts
and
in
southern
New
England.
A
All
right
well,
well,
thanks!
So
much
with
that.
I
wanted
to
again
just
thank
thank
our
speakers.
Commissioner
Clark,
Craig,
Glazer
and
Jeff
turcotte
for
sharing
their
knowledge.
I,
think
that
was
an
excellent,
excellent
webinar
and
we
just
for
all
the
attendees.
We
want
to
thank
you
as
well,
but
wanted
to
notify
you
that
we
will
be
posting
this
these
presentations,
as
well
as
the
recording
within
a
week
or
so,
and
we'll
be
sending
out
a
notice
to
you
that
it
is
posted.
A
We
also
want
to
let
you
know
that
we
do
plan
on
having
a
couple
more
webinars
in
our
energy
series
on
may.
First,
we'll
have
a
webinar
called
the
question
of
the
equity
net
metering
and
costs
costs
and
benefits
associated
with
rooftop
solar,
which
kind
of
gets
to
some
of
these
equity
issues
that
were
mentioned
by
Commissioner,
Clark
and
and
we'll
dive
a
little
deeper
into
those.
A
What
are
you
Tori
in
somewhat
political
discussions
as
well
on
may
29th,
we'll
also
have
a
discussion
with
lbnl
and
rel
called
the
rise
of
renewables,
integration,
challenges
and
opportunities
which
will
discuss
some
of
the
research
they've
done
on
renewable
energy,
integration
related
to
costs
and
some
of
the
benefits
as
well.
So
we'll
also
be
sending
out
that
information
to
you
and
thanks
again
for
joining
us
and
we
look
forward
to
having
you
participate
in
our
next
webinar.