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Research Highlights
Testimony on LG&E-KU’s Certificates of Public Convenience and Necessity and Site Compatibility Certificates
June 2025
Principal Economist Elizabeth A. Stanton, PhD, submitted direct testimony before the Kentucky Public Service Commission to assess the load forecasting assumptions utilized in the 2025 request for approval for Certificates of Public Convenience and Necessity (CPCN) filed by Louisville Gas and Electric Company and Kentucky Utilities Company (LG&E-KU) in Kentucky PSC Case No. 2025-00045. In her testimony, Dr. Stanton reviews the Companies’ 2025 CPCN Load Forecast and assesses the methodology, assumptions, and findings of their economic development growth forecast, particularly as they related to projected growth in data centers.
Dr. Stanton recommends that the Companies employ a short-term forecast of new data center and other large customer load based on concrete evidence that there is a high likelihood that such load will actually come online, while discounting or excluding possible large customer load that is merely speculative or has a low likelihood of materializing, and presents an alternative framework for using probability weighting to forecast future load growth from data centers.
Basin Electric's Coal Fleet: Risks to Continued Operation and Opportunities for Replacement
June 2025
On behalf of the Western Organization of Resource Councils, this AEC report evaluates the risks associated with continued operation of Basin Electric’s coal-fired plants and outlines opportunities for replacement with lower-cost clean energy resources. The continued operation of Basin Electric’s coal plants entails important risks to Basin Electric, its members and members’ ratepayers, including risks presented by:
1. Federal oversight: In 2019, Basin Electric became subject to Federal Energy Regulatory Commission (FERC) oversight, which means Basin Electric is facing greater scrutiny of whether continued operation of its coal plants is most prudent for its members and their ratepayers.
2. Competition in Southwest Power Pool (SPP): Basin Electric’s forthcoming full membership in the Southwest Power Pool (SPP) risks that Basin Electric’s coal plants will operate less often because more of its coal generation will compete in every hour of the day with every other resource in SPP’s marketplace.
3. Environmental regulations: There are cost risks for Basin Electric’s coal-fired power plants related to new emission and pollution control technologies to comply with federal environmental regulations including: the Regional Haze Rule, the coal ash waste rules, and carbon pollution standards.
AEC finds that Basin Electric can hedge against risks to its coal-fired resources by taking advantage of cost-saving opportunities to replace coal resources with cheaper wind and solar resources—resources which become even more cost-effective when coupled with federal incentives, funding, and financing streams targeted specifically at electric cooperatives to pursue them.
Assessing U.S. Electric Grid Operators' Governance: Transparency, Accessibility, Accountability
May 2025
On behalf of Slingshot (and their participation in the broader, grassroots Fix the Grid campaign in New England), this AEC report card utilized approximately 250 sources—including grid operator documents, research reports, and expert testimony—to develop and assign points across 34 metrics among three categories: 1) transparency is making information and materials publicly available; 2) accessibility is facilitating public awareness and involvement in grid operator processes; and 3) accountability is structuring governance and decision-making processes to incorporate viewpoints reflective of the diversity of the communities in each grid operator's territory.
The primary finding of the report card is that none of the seven U.S. grid operators perform particularly well in any assessment category and there is considerable room for improvement across grid operators in terms of transparency, accessibility, and accountability. The highest overall grade was a C+ earned by CAISO due to its strong performance in the accountability category. The lowest overall grade was an F earned by ISO-NE due to its receiving a failing grade in the accessibility and accountability categories. The five remaining grid operators (PJM, MISO, SPP, ERCOT and NYISO) each received an overall grade ranging from C- to D-.
AEC Areas of Expertise
All-sector energy planning
Benefit-cost analysis
Capacity expansion modeling
Dispatch modeling
Economic impact analysis (including REMI and IMPLAN)
Economics of energy resources
Electricity system planning (including integrated resource plans)
Emissions accounting
Energy and capacity markets
Energy efficiency planning
Energy policy analysis
Energy-water nexus
Environmental regulations
Equity and consumer impact analysis
Pipeline economic analysis
Renewable energy
Utility cost of capital
Utility finance analysis
Valuation of externalities
AEC Services
Analysis
We provide in-depth analysis of the economics, environmental, and equity impacts of all types of energy resources and policies. Read more →
Modeling
Clinic staff regularly analyze a number of third-party power sector model inputs and outputs used to conduct resource planning analyses, forecast electricity market prices, predict emissions output, and evaluate the need for future electric and natural gas capacity. . Read more →
Testimony
We provide expert testimony in state and federal regulatory proceedings on a variety of issues. Read more →
Public Reports
We provide public-facing reports for our clients, including economic assessments of existing energy resources and economic and emission impacts of environmental regulations. Read more →
Contact | Address: Applied Economics Clinic, 6 Liberty Sq., PMB 98162, Boston, MA, 02109 | Email: info@aeclinic.org