What is Alternative Energy?

Wind Power-Alternative Energy Alternative Energy (AE) is synonymous with the term renewable energy. Recent interest in AE resources has been brought about by a desire for: Independence from traditional power sources  (e.g. coal, oil, natural gas, and nuclear), Decreased environmentally dangerous emissions, and Less price volatility as compared to the cost of fossil fuels (particularly...

Electricity Decoupling in the UK

The regulation of the UK electricity distribution industry operates under a system of ex-ante price controls that are, by definition, based on forecasts of expected costs and required revenue. The gas and electricity networks are regulated under an RPI-X framework. This is an incentive-based regulatory framework. Revenue allowances are fixed in advance for a fixed period (typically five years)....

Natural Gas and Electricity Decoupling in the U.S.

As of late 2009, numerous U.S. states have experimented with and fully implemented decoupling. Generally speaking, the natural gas industry is more advanced than the electricity industry, consistent with its longer history of deregulation. The following discussion highlights some of the differences and similarities across these industries and among the variety of regulatory environments with...

Utility Decoupling Approaches and Terminology

There are three generalized approaches to rate decoupling that have been followed by a number of U.S. states, commonly categorized as: Full Decoupling, Partial Decoupling, and Limited Decoupling. Regulatory frameworks in the United Kingdom (UK) are also based on a decoupling strategy. Decoupling is playing an increasing role in utility rate making to promote wider energy efficiency and...

Decoupling: The Key to Incenting Electric Utilities to Promote Energy Efficiency

What is Utility Decoupling? Decoupling allows a utility to separate its regulated revenue from changes in energy sales. Thus, it addresses a potential disincentive to promote energy efficiency. In so doing, decoupling eliminates a critical barrier to increased utility-sponsored investment in cost-effective energy efficiency measures and other clean energy resources by, in effect, mitigating the...

What is the Peak Oil Theory?

What is the Peak Oil Theory? During the 1950′s, and ’1960s, noted geologist M. King Hubbert became world-renowned based on his prediction that the fossil fuel era would end in the relatively near future. He noted that the production of typical oil reservoirs tend to follow a bell-shaped curve, reaching a peak and then declining irreversibly. He predicted in 1956 that U.S. based oil...

The Source of Oil – Is it Biotic or Abiotic?

Drilling for Oil The origin of oil has been the subject of an extended debate since its founding in the mid-19th century. Some professionals believe that oil is primordial – that it dates back to Earth’s origin – and thus was made through an inorganic process. This thesis is characterized as the abiotic (also called abiogenic or inorganic) theory. Others argue that oil was produced...

An Introduction to Solar Power Generation

Solar Power Generation   There are three main types of solar power energy: Photovoltaic Solar Power Concentrating Solar Power Solar Thermal Energy   Photovoltaic Solar Power Technology Photovoltaic solar power results from electricity generated by solar cells by converting sunlight directly into electricity.  The basic solar principles (i.e. that certain materials can produce small...

The Rising and Critical Role of Electricity

Energy is the Foundation of Modern U.S. Life GDP Growth and Energy Usage Each electric utility’s transmission and distribution system is fundamentally an energy delivery network. A first principle is that total energy usage (broadly defined) and GDP growth have always been and always will be highly correlated. Simply stated, economic growth in the U.S. (and in every developed economy)...