AEC stands in solidarity with demands for racial justice, without which environmental and economic justice can never be achieved.
See more on the intersections of equity, race, BLM, and the environment on our resources page.
Research Highlights
Home Heating in Massachusetts: What Influences Future Costs?
March 2024
On behalf of the Home Energy Efficiency Team (HEET), Researchers Tanya Stasio and Joshua R. Castigliego, Assistant Researcher Sumera Patel, and Senior Economist Elizabeth A. Stanton prepared a white paper that estimates the average home heating costs faced by Massachusetts households using different heating technologies.
This March 2024 AEC white paper updates the home heating cost analysis conducted in AEC’s January 2021 white paper; both analyses present operating costs only, excluding the costs of purchasing or maintaining heating equipment. Updated analysis, based on the most recent data and cost projections, finds that heating with networked geothermal and ground-source heat pumps is less expensive than heating with gas-fired furnaces today and can be expected to remain so through 2050. Our findings regarding air-source heat pumps, however, point to more questions than answers: Changes in gas and electric prices over the past few years reversed our earlier findings, suggesting that notoriously uncertain forecasts of future fuel prices are of paramount importance in understanding the likely impacts of ASHP adoption on household finances.
Testimony on National Grid’s 2023 Rate Case in Massachusetts
March 2024
On behalf of the Environmental Defense Fund (EDF) and Conservation Law Foundation (CLF), Researcher Joshua R. Castigliego provided expert testimony before the Massachusetts’ Department of Public Utilities (DPU) in response to National Grid’s petition to increase its base distribution rates and approve its proposed performance-based ratemaking (PBR) plan, referred to as its Comprehensive Performance and Investment Plan (CPIP). In his testimony, Mr. Castigliego specifically focused on the Company’s Infrastructure, Safety, Reliability, and Electrification (ISRE) Mechanism and performance incentive mechanisms (PIMs, including investment-based “IPIMs” and operating-based PIMs) included in its proposed CPIP. He also addressed National Grid’s proposed electrification pricing option and low-income discount rate proposal.
Based on these assessments, Mr. Castigliego found that the Company’s proposals on these topics were insufficient and should either be rejected or strengthened by DPU to better protect ratepayers and address the affordability challenges facing the National Grid’s customers. Mr. Castigliego also offered recommendations on these topics to better align National Grid’s proposals with the Commonwealth’s climate and clean energy goals and support a more equitable distribution of benefits resulting from the Company’s investments and programs
TVA’s Kingston Fossil Plant: An Economic Assessment of Replacement Alternatives
March 2024
On behalf of the Southern Environmental Law Center, Researchers Chirag T. Lala and Joshua R. Castigliego, Senior Economist Tyler Comings, and Assistant Researcher Elisabeth Seliga prepared a report that models the costs to consumers of alternatives for the soon-to-be retired Kingston Fossil Plant—a coal-fired power plant in Harriman, Tennessee that is owned and operated by the Tennessee Valley Authority (TVA). TVA’s Alternative A plan replaces Kingston with a gas-heavy portfolio that constructs gas combined cycle (CC) and combustion turbine (CT) plants, while Alternative B focuses on replacing Kingston with a clean energy portfolio that relies on solar and battery storage resources.
Among its four modeled alternatives, AEC finds the net present value costs of Alternative B—renewable and storage replacements that are self-built or procured through power purchase agreements—to be the lower cost option. This contradicts TVA’s claim that Alternative A is the lower cost option. In addition, it is not clear why TVA selected the amounts of solar and storage capacity in Alternative B. The storage capacity is exorbitant compared to the size of the Kingston plant and the solar capacity is made additional to a large amount of capacity TVA is already scheduled to build.
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