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The Federal Energy Regulatory Commission (FERC) issued a proposed policy statement and action plan on March 19 for standards governing the development of a smart grid. A smart grid involves adding communication technologies and control systems to the electrical grid, increasing its reliability and its ability to accommodate advanced energy systems. The Energy Independence and Security Act of 2007 directs the National Institute of Standards and Technology to coordinate the development of smart grid standards, which FERC would then promulgate through official rulemakings. However, FERC notes that the electric industry is already moving ahead with smart grid technologies, so it is proposing to establish some general principles that the smart grid standards should follow.
Specifically, FERC proposes to make cyber security and grid reliability the top priorities for smart grids. Cyber security is already a concern with today’s grid systems, and the two-way communication ability of a smart grid could make the situation worse if the system is not secure. FERC also wants clear standards to allow systems to communicate with each other, so that grid operators can have a clear picture of how the power grid is functioning over a large area. The lack of such abilities contributed in part to the blackout that struck the United States and Canada in the summer of 2003. But FERC is also looking at the growth in clean energy, so the commission wants to be sure that smart grids will better accommodate renewable energy resources, demand response systems, energy storage systems, and electric vehicles. For electric vehicles, FERC at least wants the smart grid to allow charging during times of low power demand, but ideally the commission would like the smart grid to accommodate vehicle-to-grid technologies, which would use the nation’s electric vehicles as a vast, distributed, energy storage system. See the FERC press release.
With many utilities already moving ahead to deploy smart grid technologies, FERC is also proposing an interim rate policy for such efforts. FERC proposes to allow utilities to recover their costs for smart grid efforts, so long as the systems do not adversely affect the reliability and security of the grid. However, such systems should have the ability to be upgraded to meet future standards. FERC would also require the utilities to share information on their projects with the DOE Smart Grid Clearinghouse, which was authorized by the American Recovery and Reinvestment Act but has not yet been established. FERC will accept comments on its proposed policy statement and action plan for 45 days after their publication in the Federal Register. See the proposed policy statement and action plan (PDF)
Source EERE
Credit: REVERSEENERGY.COM
Valero Bids $477 Million Plus Working Capital
Secured Lenders Submit Credit Bids Totaling $516 Million for Remaining Assets
Sale Approval Hearing Scheduled for Tomorrow at Noon in Wilmington, Delaware
SIOUX FALLS, S.D., March 17 /PRNewswire-FirstCall/ — VeraSun Energy Corp. today announced that it has selected Valero Renewable Fuels as the successful bidder for assets contained in the “VSE Group”, in addition to ethanol production facilities in Albion, Neb., and Albert City, Iowa, following an auction in Wilmington, Del. The secured lenders submitted successful credit bids for each of the remaining facilities.
The VSE Group consists of production facilities in Aurora, S.D.; Charles City, Fort Dodge and Hartley, Iowa, and Welcome, Minn., and a development site in Reynolds, Ind.
Upon the conclusion of the auction, VeraSun selected Valero as the successful bidder to purchase the VSE Group facilities for a base purchase price of $350 million, $72 million for the US Bio Energy facility in Albert City, Iowa and $55 million for the ASA facility in Albion, Neb., plus working capital and other certain adjustments.
The secured lenders for the remaining facilities submitted successful credit bids. Dougherty Funding, LLC submitted a credit bid of $93 million for the Marion, S.D. production facility. A group of lenders led by AgStar Financial Services submitted a credit bid of $324 million for the remaining “US BioEnergy Group”, which includes ethanol production facilities in Central City and Ord, Neb.; Dyersville, Iowa; Hankinson, N.D.; Janesville, Minn., and Woodbury, Mich. A group of lenders led by West LB AG submitted a credit bid of $99 million for the remaining “ASA Group” facilities, consisting of production facilities in Bloomingburg, Ohio and Linden, Ind.
Click Here to Continue reading VeraSun Energy Selects Valero as Successful Bidder for Seven Facilities
VIENNA – OPEC tried on Sunday to nudge oil prices up by urging its members to stop overproducing, but the cartel decided not to cut current output levels which could have driven prices sharply higher.
Explaining the decision, OPEC Secretary-General Abdalla el-Badri spoke of his organization’s concern over “ugly” global economic times that overrode the desire to achieve a quick fix by setting a lower overall output for the 12-nation producer’s club.
“We see people who are out of work, we see people in tents in the most rich countries,” he told reporters. While OPEC’s goal remains higher prices for its product, “the time is not right” for more radical measures, he said.
The decision was sure to be welcomed by the U.S. and other major oil consuming countries, because setting lower output limits would could have jolted the already anemic world economy through a sudden price increase.
It also reflected realization with the Organization of the Petroleum Exporting Countries that any action more drastic than calling for quota compliance at a time of global economic crisis could ultimately backfire in real terms, by further depressing demand and driving down prices.
The OPEC decision came as the world took a breather from the usual relentless slew of bad news since the financial crisis became most acute last October. The Dow Jones industrial average is up around 10 percent this week, and most Asian and European markets also rose. However, governments and investors are wary of calling it the start of a turnaround.
“They have recognized the fact that they ought to be cutting,” said trader and analyst Stephen Schork of Villanova, Pennsylvania. “But they have taken into consideration that this could potentially set prices on fire, which would have retarded the nascent economic recovery that we have seen.”
Click Here to Continue reading OPEC won’t cut production to raise prices
 SANTIAGO – Time is running out to save the world from the ravages of climate change and prevent economic meltdown and a flood of environmental refugees, Britain’s Prince Charles has warned on a visit to Chile.
The Prince of Wales, and his wife, Camilla Parker Bowles, are in Chile at the start of a Latin American tour to promote energy efficiency and measures to combat climate change.
Click Here to Continue reading Britain’s Prince Charles sees time running out to save planet
In many organizations the management of utility costs is not a top priority. Utility invoices are typically processed by accounts payable departments without any meaningful review or verification. Most management attention is devoted to the cost of labor and materials. Considering that energy and telecommunications costs can make up as much as 25 percent of an organization’s overall operating budget – utility cost reductions, even the most modest ones, can significantly improve profitability.
To relieve businesses of the burden (i.e., time, expense and distraction) of developing and maintaining the resources and expertise to internally verify, validate and analyze utility expenditures, we developed the REC Cost Control Program. This program is designed to identify and pursue potential refund and cost savings opportunities – reducing your utility costs and improving your profits.
The REC Cost Control Program is both easy to implement and scalable. It can function as a total outsource solution or as a complement to existing utility cost management programs.
 As part of this service, you will be assigned a specific account manager who will act as your primary contact within Reverse Energy and will coordinate the following activities:
Data Collection: compile your past and current utility invoices and construct a comprehensive database of key utility data – i.e., usage, demand, price, taxes, etc.
Recovery Audit: review your utility invoices for administrative, computational and other potential errors and overcharges.
Rate Optimization: analyze your annual utility usage and demand profiles against available rate options to identify more cost effective alternatives.
Procurement: in competitive markets, prepare documentation necessary to solicit offers from suppliers, evaluate responses and negotiate contractual terms and conditions.
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 Commodity prices, including oil, have started to bottom out and are likely to rise in the second quarter, supported by signs China’s economic stimulus plan has taken effect, investment bank Barclays Capital forecast today.
The bank predicts the price of a barrel of oil will rise to $50 in the second quarter and to $76 by the fourth, Justin Hyde, director overseeing commodities sales in Asia, said in Hong Kong. He recommends investing in commodity markets at current prices.
“We have seen most of the aggressive contraction in these markets,” said Hyde. “We are starting to form a bottom and are in the late stages of a recession.”
Click Here to Continue reading Commodity Prices Bottoming Out, Recovery Due, Barclays Says
Learn how to save up to 40% on you electricity and gas bills. For a free analysis please e-mail Marc Lieberman mlieberman@reverseenergy.com or call 917-279-9331.
Note:Commercial and Industrial accounts welcome
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