FERC 2020 staff report on advanced metering and demand response

Advanced meters for electric service are now the most prevalent type of metering deployed throughout the United States, according to a recent federal report, and 2018 was the first year when estimated nationwide advanced meter penetration rates were greater than or equal to 50% of each of the residential, commercial, and industrial customer classes.

Since the enactment of the federal Energy Policy Act of 2005, each year the Federal Energy Regulatory Commission's staff has published a report as required by Section 1252(e)(3) of that act, addressing the following:

• saturation and penetration rate of advanced meters and communications technologies, devices and systems;
• existing demand response programs and time-based rate programs;
• the annual resource contribution of demand resources;
• the potential for demand response as a quantifiable, reliable resource for regional planning purposes;
• steps taken to ensure that, in regional transmission planning and operations, demand resources are provided equitable treatment as a quantifiable, reliable resource relative to the resource obligations of any load-serving entity, transmission provider, or transmitting party; and
• regulatory barriers to improved customer participation in demand response, peak reduction and critical period pricing programs.

The Commission staff's 2020 Assessment of Demand Response and Advanced Metering presents information based on the latest publicly available data -- 2018 for retail data and 2019 for wholesale data -- as well as "findings of Commission staff using non-public data to evaluate demand response performance in California during summer 2020 events."

The U.S. Energy Information Administration defines advanced metering infrastructure (AMI) meters or “advanced meters” as “[m]eters that measure and record usage data[,] at a minimum, in hourly intervals and provide usage data at least daily to energy companies and may also provide data to consumers. Data are used for billing and other purposes. Advanced meters include basic hourly interval meters and extend to real-time meters with built-in two-way communication capable of recording and transmitting instantaneous data.”

2018 represents the first year when the Commission staff report found 50% or greater advanced meter penetration for each of residential, commercial, and industrial customer classes. According to staff's most recent prior report, "In 2017, the estimated advanced meter penetration rates for residential and commercial customer classes were greater than or equal to 50 percent for the first time, while the penetration rate for the industrial customer class increased to 44.5 percent." 

By contrast, now, "While the advanced meter penetration rate varies by customer class, in 2018 the estimated nationwide advanced meter penetration rates for each of the residential, commercial, and industrial customer classes were greater than or equal to 50% for the first time." According to the report, "In 2018, according to EIA data, there were 86.8 million advanced meters installed and operational out of the 154.1 million meters installed and operational nationwide, representing a 56.4% penetration rate and a total increase of 7.9 million advanced meters from 2017 to 2018". The report highlights EIA data showing growth over time, from 6.7 million advanced meters in operation in 2007.

Department of Energy Prohibition Order for Bulk-Power System Security

The U.S. Department of Energy has issued a Prohibition Order prohibiting the acquisition, importation, transfer, or installation of certain bulk-power system electric equipment that directly serves Critical Defense Facilities. The order follows an Executive Order signed by President Trump earlier this year, authorizing the Department to take steps to secure the nation's bulk-power system.

On May 1, 2020, President Trump signed Executive Order 13920, "Securing the United States Bulk-Power System". As described in a press release, that Executive Order "prohibits Federal agencies and U.S. persons from acquiring, transferring, or installing BPS equipment in which any foreign country or foreign national has any interest and the transaction poses an unacceptable risk to national security or the security and safety of American citizens."

On December 17, U.S. Secretary of Energy Dan Brouillette signed a Prohibition Order implementing EO 13920. As described by the Department, "The order applies to a limited number of utilities and specific BPS electric equipment from the People’s Republic of China that poses an undue risk to the BPS, the security or resilience of critical infrastructure, the economy, national security, or safety and security of Americans."

The Department further described its “Prohibition Order Securing Critical Defense Facilities” generally as prohibiting covered utilities that supply Critical Defense Facilities ("CDFs") at a service voltage of 69kV or above from acquiring, importing, transferring, or installing certain BPS electric equipment manufactured or supplied by persons owned by, controlled by, or subject to the jurisdiction or direction of the People’s Republic of China. 

According to the Prohibition Order, "certain BPS electric equipment or programmable components subject to China’s ownership, control, or influence, constitute undue risk to the security of the BPS and to U.S. national security." The order applies from the point of electrical interconnection with the CDF up to and including the next “upstream” transmission substation. 

According to the order, utilities subject to its requirements will be notified no later than 5 days from the order's issuance.

US energy-related CO2 emissions declined in 2019, nearly all due to the electric sector

U.S. energy-related carbon dioxide emissions declined by 3% in 2019 relative to the prior year, almost entirely due to the changing mix of fuels used to generate electricity. Transportation now exceeds electric power as the energy-related sector contributing the most CO2 emissions, according to recently released federal data.

 

The U.S. Energy Information Administration tracks estimated domestic energy-related CO2 emissions, by multiplying energy consumption, measured in British thermal units, by a "carbon factor" representing the average carbon intensity of each source. According to EIA, total energy-related CO2 emissions in 2019 decreased by about 150 million metric tons (MMmt) relative to their 2018 level. This roughly reverses the 3% year-over-year increase experienced in 2018.

Through the twentieth century, the electric power sector was responsible for the largest share of domestic carbon emissions. U.S. total energy-related CO2 emissions peaked in 2007, and have since declined by about 15%.

U.S. total CO2 emissions from the electric power sector also peaked in 2007, but have since declined even more than than other energy-related sectors. According to EIA data, U.S. electric power sector emissions have fallen 33% below their 2007 peak "because less electricity has been generated from coal and more electricity has been generated from natural gas (which emits less CO2 when combusted) and non-carbon sources." 

This trend toward decarbonization of the electric power sector continued in 2019, leading EIA to attribute nearly all (96%) of the 2019 year-over-year decline to changes in the fuels and resources used to generate electricity. In particular, non-carbon-emitting generation such as nuclear and renewable sources generated a record 38% of total U.S. electric generation in 2019.  As a result of these changes and energy efficiency gains, EIA calculates the total carbon intensity of domestic electricity has fallen from 619 metric tons per megawatthour (mt/MWh) in 2005 to 408 mt/MWh in 2019.

Transportation has long been a significant contributor of CO2 emissions. While U.S. transportation-related CO2 emissions declined slightly in 2019, the transportation sector now emits more CO2 than any other energy-related sector tracked in EIA's carbon reporting. In some states, such as Maine, the transportation sector is responsible for more than half of all tracked carbon emissions.