09/01/2014

Editor's Letter

A Tale of Two States

By

 

Chris Olson, Chief Content Director

This year, Massachusetts became the first state to require utilities to modernize the electric grid. Utilities will develop and implement a 10-year plan to help users better manage and reduce their consumption, enhance grid reliability, promote new technology, and integrate more microgrids, renewable sources, demand response, and electricity storage.

Also this year, Ohio became the first state to enact a bill that freezes targets for increasing renewable sources and energy efficiency programs. For the next two years, utilities will no longer be required to help customers reduce their energy usage or to increase the percentage of power generated by wind and solar.

Supporters of the Massachusetts initiative view grid modernization as a “strategic investment” that will pay off with lower energy prices. It will also enhance Massachusetts’ economy with new jobs in the clean energy and efficiency industries.

Supporters – primarily utilities – of the Ohio initiative view renewable energy sources and energy efficiency programs as excessively expensive. They say that eliminating energy targets will pay off with lower energy prices. It will also enhance Ohio’s economy by maintaining jobs in industries that would otherwise lay off workers as a result of higher energy costs.

Who’s right? At least in the very short term, some win and some lose under each scenario. Businesses involved in efficiency and clean energy win in Massachusetts but lose in Ohio (and some have announced that they are leaving the latter to sell their expertise elsewhere). Utilities win in Ohio because they do not need to inform customers about how to buy less of their product – the strange place that utilities inhabit until some method is found to decouple their profits from the volume of product that they sell. Utilities also do not feel so great an impact from building owners who deploy renewable resources like wind turbines and solar yet remain dependent on the grid for the rest of their supply. The utilities’ fixed costs for supplying power must then be distributed over fewer kilowatt-hours, putting upward pressure on rates for all users.

But short-term issues are not what the energy industry is facing. Grid modernization, reliability, and environmental concerns are inevitably and massively changing the way power is generated, distributed and purchased. From that point of view, the Ohio initiative is a step backward.

A national policy or national business model for utilities would be a step forward.

 


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com


Visit our website today to learn about the design flexibility of a Morton building and the endless possibilities of partnering with our designBUILD team.


Wood construction is both cost and energy efficient. Check out Morton Buildings and our designBUILD team online today to discover all the benefits of post-frame construction.


When choosing a metal-clad building for your next construction project, consider Morton Buildings, Inc., and their designBUILD team, we’ll make your dream a reality.

We Can Help You Reduce Energy by 30%

Our mission is to help our customers manage their buildings' energy costs, improve reliability, and enhance performance while having a positive impact on the environment.
CLICK HERE to find out how.

Add highly responsive multi-zone comfort to any building project, in any climate. Our CITY MULTI H2i R2- and Y-Series VRF systems give you flexibility to fit the needs of any building. Enjoy 100% heating capacity at 0°F outdoor ambient, and 85% heating capacity at -13°F outdoor ambient.  For more information, log on to www.mitsubishipro.com

 
comments powered by Disqus

Related Products