Ratepayer Risk

IEEFA Research

IEEFA U.S.: Municipal ratepayers face mounting costs from expensive American Municipal Power projects

Gap between costs from Prairie State, Combined Hydro Project and market prices continues to grow

September 9, 2021 (IEEFA)—Newly available data shows American Municipal Power’s (AMP) Prairie State and Combined Hydro Project have caused costs to continue climbing for municipal ratepayers, according to an analysis by the Institute for Energy Economics and Financial Analysis (IEEFA).  Data covering January 2020 through July 2021 showed that Cleveland Public Power (CPP) and its […]

IEEFA Australia: Government cannot lower electricity bills by subsidising old and high cost power plants

IEEFA Australia: Government cannot lower electricity bills by subsidising old and high cost power plants

Refocusing attention on transmission and distribution of electricity will bring better results

27 August 2021 (IEEFA Australia): The Federal government can better achieve its ambition to lower electricity prices if it focuses on the transmission and distribution side of the energy market rather than the generation side, as its latest plan for keeping old coal plants open will in fact increase consumers’ electricity bills, not lower them, […]

IEEFA U.S.: FERC neglects energy needs in pipeline decisions

IEEFA urges reevaluation of federal guidelines for new construction

May 25, 2021 (IEEFA) — The Institute for Energy Economics and Financial Analysis is urging the Federal Energy Regulatory Commission (FERC) to reevaluate its pipeline certification guidelines. In their current form, commission guidelines allow it to rely solely on the existence of applicants’ business contracts to certify the necessity of constructing new interstate gas pipelines, […]

IEEFA U.S.: Testimony shines light on additional problems with Puerto Rico LUMA deal

Grid privatization contract suffers host of issues likely to result in higher prices for islanders

April 6, 2021 (IEEFA) ⎼ New research has revealed major problems in the procurement process that resulted in the selection of LUMA Energy to operate Puerto Rico’s electrical grid, according to testimony given today to a Puerto Rico House of Representatives committee. Tom Sanzillo, director of financial analysis at the Institute for Energy Economics and […]

IEEFA EE. UU.: Testimonio arroja luz sobre problemas adicionales con acuerdo de LUMA de Puerto Rico

El contrato de privatización de la red sufre una serie de problemas que probablemente resultarán en precios más altos para los isleños

6 de abril de 2021 (IEEFA) — Una nueva investigación ha revelado problemas importantes en el proceso de contratación pública que resultó en la selección de LUMA Energy para operar la red eléctrica de Puerto Rico, según testimonios entregados hoy a una comisión de la Cámara de Representantes de Puerto Rico. Tom Sanzillo, director de […]

April 6, 2021 Read More →
IEEFA Australia: Port of Newcastle’s roadblock on the path away from thermal coal

IEEFA Australia: Port of Newcastle’s roadblock on the path away from thermal coal

Planned fossil fuel exit by the world’s largest coal port is paralysed by lending constraints and a secret NSW government deal

The Port of Newcastle’s planned exit from fossil fuels suffered further setback last month after ANZ withdrew financing from the terminal, presently the world’s largest port for exporting thermal coal. ANZ had previously been a major lender to the port, however divested its position during the latest round of refinancing of approximately A$900 million in […]

March 18, 2021 Read More →
IEEFA U.S.: Financial rationale for Mountain Valley Pipeline has evaporated in changing market

IEEFA U.S.: Financial rationale for Mountain Valley Pipeline has evaporated in changing market

Falling demand, legal and regulatory challenges spell financial peril for pipeline project

March 8, 2021 (IEEFA) — A 303-mile pipeline that would move natural gas from the Appalachian Basin to markets in the eastern and southern U.S. is in financial jeopardy because of reduced demand projections and legal challenges, according to a report released today by the Institute for Energy Economics and Financial Analysis (IEEFA). The Mountain […]

IEEFA U.S.: FERC gives blank check approval to pipeline builders, while investors and consumers pick up costs

IEEFA U.S.: FERC gives blank check approval to pipeline builders, while investors and consumers pick up costs

Commission’s 21-year-old pipeline policy puts contracts ahead of utility customers

December 17, 2020 (IEEFA) — The federal agency responsible for approving interstate gas pipeline projects is basing its decisions on contracts rather than on today’s consumer energy needs or the public interest, according to a report released today by the Institute for Energy Economics and Financial Analysis. The report—FERC’s Failure to Analyze Energy Market Forces—details […]

IEEFA U.S.: Virginia coal plant’s future isn’t bright: preparation for  transition should commence now

IEEFA U.S.: Virginia coal plant’s future isn’t bright: preparation for transition should commence now

Virginia City Hybrid Energy Center (VCHEC), one of the newest in U.S., risks closure due to market forces

December 16, 2020 (IEEFA)—Retiring the Virginia City Hybrid Energy Center (VCHEC) will bring unnecessarily abrupt economic hardship to Wise County if state and local officials do not begin to plan now for a transition, concludes a report published today by the Institute for Energy Economic and Financial Analysis. The 8-year-old coal-fired power plant, owned by […]

IEEFA U.S.: Colorado electric wholesaler is alienating cost-conscious co-ops with its fossil commitments

IEEFA U.S.: Colorado electric wholesaler is alienating cost-conscious co-ops with its fossil commitments

Tri-State currently plans using coal through 2050 and expanding into gas; projected rate increases of 55% by 2050

Nov. 17, 2020 (IEEFA) — One of the biggest power suppliers to rural electric co-ops in the U.S. is putting its business model at risk as members clamor for better access to renewable energy, more affordable rates, and more say in how they buy or produce power, concludes a report released today by the Institute […]

and November 17, 2020 Read More →

More News and Commentary

IEEFA U.S.: Another big pipeline project bites the dust—and FERC should take notice

PennEast Pipeline cancellation boosts case for change in commission policy

Yet another unnecessary pipeline—the PennEast project—has been cancelled after the Federal Energy Regulatory Commission (FERC) issued a permit for it. The incident provides compelling new evidence for FERC to adopt strong protocols to ensure a proper analysis of the need for a proposed pipeline project. FERC could have prevented wasted expenses, legal fees and effort […]

September 29, 2021 Read More →
IEEFA Europe: Overcapacity and investment fever push costs to Spanish consumers, yet Enagás profits
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IEEFA Europe: Overcapacity and investment fever push costs to Spanish consumers, yet Enagás profits

Spain’s gas regulations benefit Enagás and burden consumers

September 15, 2021 (IEEFA) – Empresa Nacional de Gas (Enagás) has benefited from a “security and diversity of supply” strategy as an excuse to build or expand liquefied natural gas regasification terminals, natural gas pipelines and gas storage facilities. The resulting overcapacity has meant low utilization rates for gas infrastructure assets in Spain, as well […]

IEEFA Europa: El exceso de capacidad y una fiebre por invertir suben las facturas de los consumidores españoles, pero Enagás se lucra
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IEEFA Europa: El exceso de capacidad y una fiebre por invertir suben las facturas de los consumidores españoles, pero Enagás se lucra

La regulación del gas en España beneficia a Enagás y perjudica a los consumidores

15 de septiembre de 2021 (IEEFA) – La Empresa Nacional de Gas (Enagás) se ha beneficiado de una estrategia de «seguridad y diversidad del suministro» como excusa para construir o ampliar plantas de regasificación de gas natural licuado, gasoductos de gas natural e instalaciones de almacenamiento de gas. Según un informe del Instituto de Economía […]

and

IEEFA U.S.: Municipal ratepayers face mounting costs from expensive American Municipal Power projects

Gap between costs from Prairie State, Combined Hydro Project and market prices continues to grow

September 9, 2021 (IEEFA)—Newly available data shows American Municipal Power’s (AMP) Prairie State and Combined Hydro Project have caused costs to continue climbing for municipal ratepayers, according to an analysis by the Institute for Energy Economics and Financial Analysis (IEEFA).  Data covering January 2020 through July 2021 showed that Cleveland Public Power (CPP) and its […]

IEEFA Australia: Government cannot lower electricity bills by subsidising old and high cost power plants
and

IEEFA Australia: Government cannot lower electricity bills by subsidising old and high cost power plants

Refocusing attention on transmission and distribution of electricity will bring better results

27 August 2021 (IEEFA Australia): The Federal government can better achieve its ambition to lower electricity prices if it focuses on the transmission and distribution side of the energy market rather than the generation side, as its latest plan for keeping old coal plants open will in fact increase consumers’ electricity bills, not lower them, […]

Ohio lawmakers seek to remedy scandal-tainted efficiency measures

Associated Press: Ohio power companies could once again offer energy efficiency programs such as smart thermostats or appliance rebates, the cost of which would be covered by customers under new legislation aimed at restarting such programs after a now-tainted energy bill killed them off. The nuclear plant bailout law approved in 2019 paved the way […]

August 17, 2021 Read More →
IEEFA Australia: Kurri Kurri gas-fired plant is AU$1 billion dollar white elephant

IEEFA Australia: Kurri Kurri gas-fired plant is AU$1 billion dollar white elephant

The Government can easily do better

In retrospect, the government-owned 667 megawatt (MW) Colongra gas-fired power plant on the Central Coast of New South Wales was an engineering marvel and a financial disaster. The AU$500 million capital cost included $104m for a spur line to the Sydney–Newcastle gas pipeline. The cost of the facility itself was $0.60m/MW. While capital costs a […]

IEEFA: In the Philippines, coal’s demise makes way for a renewable energy boom

IEEFA: In the Philippines, coal’s demise makes way for a renewable energy boom

Imported gas lock-in could undermine the economic benefits of a clean energy transition

The Philippines’ energy sector is on the brink of rapid change, with fossil fuels struggling to maintain relevance and a renewable energy industry poised for takeoff. Much of the country’s progress on clean energy and climate goals is due to the exceptional work of local activists applying pressure on policymakers to accelerate the clean energy […]

July 30, 2021 Read More →

Texas renewable growth at risk because of transmission constraints

Houston Chronicle: In 2005, the Texas Legislature approved the development of a network of electric transmission lines to send wind and solar power from West Texas to population centers in other parts of the state. The landmark project transformed the renewable energy industry and the slice of West Texas that Rep. Drew Darby calls home. […]

June 8, 2021 Read More →

Gas industry ‘kicking the can down the road’ with green hydrogen

S&P Global Market Intelligence ($): Several current and former policymakers expressed skepticism that hydrogen and renewable natural gas are mature enough to play a major role in their states’ transition from natural gas. “I know that there’s a lot of talk about fuels of the future like RNG and hydrogen,” former New York State Public […]

June 2, 2021 Read More →