Bringing Equity into Energy Reliability Decisions

Client: Environmental Defense Fund

Authors: Bryndis Woods, PhD, Sachin Peddada, Sagal Alisalad, Jordan Burt, Elisabeth Seliga, Tanya Stasio, PhD, Eliandro Tavares, Grace Wu, Elizabeth A. Stanton, PhD

AEC staff prepared a report on behalf of the Environmental Defense Fund that analyzes the connection between issues of energy system reliability and equity. This data-driven report utilizes case studies of advocates’ for more equitable energy systems real-world experiences to assess how decision-makers should account for equity when making decisions regarding system reliability. The report concludes with recommendations for future decision-making in energy system reliability, including strengthening consumer and community representation. A common theme across the real-world experiences of the advocates discussed in this report is the ways in which community engagement efforts in energy system decision-making often fall short of creating real change in energy sector decisions, and environmental justice and other under-resourced and underserved communities are often left out and left behind in decisions that directly disproportionately harm the health and wealth of their communities.

Link to Full Report

Link to Press Release

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Conditional Benefits of Sustainable Community Microgrids

Client: GreenRoots

Authors:
Joshua R. Castigliego, Tanya Stasio, and Eliandro Tavares

May 2021

On behalf of GreenRoots, Researcher Joshua Castigliego, Research Assistant Tanya Stasio, and Assistant Researcher Eliandro Tavares prepared a policy brief on the impacts of community microgrids on vulnerable populations. AEC staff defined “sustainable community microgrids” as independently controlled energy systems that, depending on their design, have the potential to enhance grid resilience, lower electric bills, improve public health, and strengthen local communities while prioritizing equitable outcomes.

Link to Policy Brief

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Risks Outweigh Rewards for Investors Considering PJM Natural Gas Projects

Client: Energy Foundation

Authors: Bryndis Woods, PhD, Liz Stanton, PhD, Eliandro Tavares, Sagal Alisalad, Myisha Majumder; and Dennis Wamsted from the Institute for Energy Economics and Financial Analysis (IEEFA)

October 2020

On behalf of the Energy Foundation, the Applied Economics Clinic and the Institute for Energy Economics and Financial Analysis (IEEFA) prepared a report that assesses the substantial risks to financial entities investing in natural gas-fired power plant development in the Pennsylvania-New Jersey-Maryland (PJM) region—the largest independent power system operator (ISO) in the United States. 

AEC and IEEFA identify six overarching threats that pose growing risks for investors in new PJM gas-fired power plants: increasing price competitiveness of clean solar, wind, demand response and battery storage alternatives; significant existing over-capacity, flat demand growth and market turmoil; high-impact, unpredictable global events such as COVID-19 that radically reshape markets and expectations of future demand; uncertainty over the future direction of gas prices, particularly given the substantial increase in U.S. liquefied natural gas (LNG) exports; actions by state governments within the PJM market to limit future fossil fuel generation and/or even withdraw from the market entirely; and public opposition that can delay project development and raise overall costs.

Link to Report

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Testimony on Washington Gas Light Company's 2020 Rate Case

Source: The Connection Newspapers

Client: Office of the People’s Counsel for the District of Columbia

Authors: Liz Stanton, PhD

August 2020

On behalf of the Office of the People’s Counsel for the District of Columbia, Clinic Director and Senior Economist Liz Stanton, PhD provided Applied Economics Clinic expert testimony to Formal Case No. 1162 before the Public Service Commission of the District of Columbia. In her testimony, Dr. Stanton discussed Washington Gas Light Company's Application and rate proposals in the context of the CleanEnergy DC Omnibus Amendment Act of 2018 and other relevant climate and clean energy goals. Dr. Stanton's analysis found that Washington Gas failed to meaningfully address or support the District's climate-related goals, including emission reductions, in an equitable and cost-effective manner.

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Testimony on Pennsylvania’s Duquesne Light Default Service Plan

Windmill farm in Bradford County, PA. Photo Credit: Don Biresch

Client: MAREC Action

Author: Liz Stanton, PhD

July 2020

On behalf of the MAREC Action, Clinic Director and Senior Economist Liz Stanton, PhD provided Applied Economics Clinic expert testimony to Docket 20-3019522 before the Pennsylvania Public Utility Commission. In her testimony, Dr. Stanton discussed the benefits of long-term contracts for renewables in the context of Duquesne Light’s Default Service Plan proposal. Dr. Stanton recommended that the Commission require Duquesne to issue a bundled renewables Request for Proposal, or require Duquesne to initiate a pilot program amounting to 10 percent or more of its total obligation. Lastly, Dr. Stanton recommended that, for optimal results for ratepayers, the Commission should direct Duquesne to collaborate with stakeholders to design a prudent mixture of resources to yield the benefits of long-term contracts for renewables. In response to several rebuttal testimonies, Dr. Stanton provided a surrebuttal testimony also on behalf of MAREC Action to provide additional information and updates relating to long-term renewable contracts.

Link to Testimony

Link to Surrebuttal Testimony

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Comments on AltaGas Climate Business Plan

Client: DC Office of the People’s Counsel 

Author: Liz Stanton, PhD

July 2020

On behalf of the DC Office of the People’s Counsel, Clinic Director and Senior Economist Liz Stanton, PhD prepared an affidavit, which reviews the policy and economic aspects of AltaGas’ Climate Business Plan and the Renewable Natural Gas Study prepared by ICF Resources. Dr. Stanton concluded that while AltaGas’ analysis does not provide sufficient information regarding assumptions, data, and methods for a comprehensive review, certain AltaGas and ICF assumptions and conclusions are inconsistent with other recent analyses. Dr. Stanton recommended that the Commission continue to gather more information.

Link to Affidavit

Link to OPC’s Comments

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Planning for the Future: Massachusetts Cleans Up Its Heating

Client: Gas Leak Allies

Author: Joshua R. Castigliego and Liz Stanton, PhD

June 2020 (Updated Sept. 2020)

On behalf of the Gas Leak Allies, Researcher Joshua Castigliego and Clinic Director and Senior Economist Liz Stanton, PhD prepared a policy brief that compares the costs of status quo gas system repair in Massachusetts to the costs of repair under the FUTURE Act. The “FUTURE Act” (An Act For a Utility Transition to Using Renewable Energy, H.2849, S.1940) was introduced in the Massachusetts Legislature in early 2019. The Act aims not only to address existing safety challenges, but also to create a path forward for gas distribution companies to move away from the fossil fuel delivery business and be a part of the clean energy transition. Our assessment finds that Massachusetts’ FUTURE Act (if passed) could save consumers $10.7 billion while transitioning the Commonwealth to a zero-carbon, renewable thermal future.

Link to Policy Brief (Updated 9/22/2020)

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Running Behind: New York State's Renewable Transformation

Client: Earthjustice

Authors: Bryndis Woods, Sagal Alisalad and Liz Stanton, PhD

March 2020

On behalf of Earthjustice, Researcher Bryndis Woods, Assistant Researcher Sagal Alisalad and Senior Economist Liz Stanton, PhD prepared a report that reviews New York State’s past progress on its new climate law as it applies to the electric sector. We find that the state has its work cut out for it in meeting its ambitious targets regarding: renewable energy development, energy efficiency, and greenhouse gas emissions reductions. Given historical trends in these areas, New York will need to dramatically scale up its efforts, beginning immediately, to reach its goals. Importantly, we also find that solar, wind and solar plus storage technologies are feasible and immediately available, and that currently planned gas capacity is at odds with the state’s renewable energy and emission reduction goals and will, therefore, impose unnecessary costs on New York consumers.

Link to Report

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Benefits of Net Zero Buildings: Comfort, Safety, Value, Climate

Client: Massachusetts Climate Action Network (MCAN)

Authors: Bryndis Woods and Eliandro Tavares

January 2020

On behalf of the Massachusetts Climate Action Network (MCAN), AEC has prepared a policy brief that presents a summary of the benefits of Net Zero buildings, such as enhanced health and comfort, home durability and safety, better value, and positive climate effects. A Net Zero building produces at least as much renewable energy in a year as it consumes, and the technology is currently ready for implementation.

Link to Policy Brief

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Home Heat Pumps in Massachusetts

Client: Green Energy Consumers Alliance (GECA)

Authors: Ricardo Lopez, PhD, Tyler Comings, Liz Stanton, PhD, and Eliandro Tavares

November 2018 - May 2019

Senior Researchers Ricardo Lopez, PhD and Tyler Comings, Clinic Director and Senior Economist Liz Stanton, PhD and Assistant Researcher Eliandro Tavares prepared a report that assessed the cost to replace residential heating and cooling systems with: 1) a gas furnace and electric central air conditioning (AC), or 2) an electric heat pump that provides both heating and cooling. The report finds that the cost-effectiveness of heat pumps depends on home-specific differences—with current Massachusetts rebates, owners of aging oil heating systems save $158 per year by choosing to replace with a heat pump instead of a gas furnace and central AC. For owners of gas heating systems, however, rebates for heat pumps are smaller than rebates for new gas furnaces, raising the relative cost of choosing heat pumps from $36 per year with no rebates to $73 per year with rebates. Even without rebates, the lifetime costs of heat pumps are only marginally more expensive than a gas furnace and central AC (see Figure above).

Link to Report (Updated July 2019)

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Social Equity Analysis of Carbon Free Boston

Client: Green Ribbon Commission

Authors: Bryndis Woods, Liz Stanton, PhD, and Applied Economics Clinic Staff

December 2018 - May 2019

In May 2019, Applied Economics Clinic worked together with All Aces and the Institute for Sustainable Energy (ISE) at Boston University to produce Carbon Free Boston: Social Equity Report 2019 on behalf of the Boston Green Ribbon Commission (GRC). The report details how actions taken toward carbon neutrality, which will fundamentally transform the city’s buildings, transportation, waste and energy systems, will also affect socially vulnerable populations and provides a roadmap to equitably engage the City’s communities in climate action. The report finds that the path to carbon neutrality presents a unique opportunity to address historic inequities while creating a cleaner, healthier and more prosperous City for all those who live and work in Boston. Three themes defined the framework for the social equity analysis: 1) careful planning to avoid unintended consequences, 2) intentional design with a clear focus on equity outcomes, and 3) inclusive practices from start to finish in all decision making.

For more information, see Carbon Free Boston on The City of Boston’s website.

Link to Social Equity Report

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Massachusetts Clean Energy Bill Provisions Boost Jobs and Strengthen the State's Economy

Client: Barr Foundation

Liz Stanton, PhD, and Tyler Comings

June 2018

On behalf of the Barr Foundation, Clinic Director and Senior Economist Liz Stanton, PhD, and Senior Researcher Tyler Comings prepared an Applied Economics Clinic policy brief discussing the pending 2018 ‘Act to Promote a Clean Energy Future’, which includes a range of provisions to address climate change while strengthening the state’s innovation economy. The act includes accelerating renewable energy targets, creating aggressive offshore wind and battery storage goals, and removing limits on rooftop solar. Dr. Stanton and Mr. Comings' study of the economic impacts of these policies found benefits for Massachusetts including new jobs, a stronger economy, more renewable resources, and lower greenhouse gas emissions. At the same time, these policies would have little or no effect on consumers’ electric bills through 2030.

Link to Findings Policy Brief

Link to Project Page

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An Analysis of the Massachusetts 2018 'Act to Promote a Clean Energy Future' Report

Client: Barr Foundation

Liz Stanton, PhD, Tyler Comings, Rachel Wilson, Sagal Alisalad, Emrat Nur Marzan, Nina Schlegel, Bryndis Woods, Jason Gifford, Edward Snook, and Po-Yu Yuen

June 2018

On behalf of the Barr Foundation, Clinic Director and Senior Economist Liz Stanton, PhD, along with members of the Applied Economics Clinic (AEC) staff and members of Sustainable Energy Advantage's staff, prepared an AEC report analyzing the Massachusetts 2018 “Act to Promote a Clean Energy Future”. The act includes a range of provisions to address climate change while strengthening the state’s innovation economy, including accelerating renewable energy targets, creating aggressive offshore wind and battery storage goals, and removing limits on rooftop solar. AEC and Sustainable Energy Advantage's study of the economic impacts of these policies found benefits for Massachusetts: new jobs, a stronger economy, more renewable resources, and lower greenhouse gas emissions. At the same time, these policies would have little or no effect on consumers’ electric bills through 2030.

Link to Report

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Energy Snapshots for Governor's Accord States

Clients: The Governor's Accord for a New Energy Future

Authors: Liz Stanton, PhD, and Bryndis Woods

May 2018

On behalf of The Governor’s Accord for a New Energy Future, Clinic Director and Senior Economist Liz Stanton, PhD and Researcher Bryndis Woods conducted a pilot analysis of energy resources and energy markets for some of the Governors’ Accord for a New Energy Future's 17 member states. The pilot analysis provided information on each state’s energy market, including its defining characteristics, future potential for growth, key economic trends, and clean energy and energy efficiency policy coverage.

Benefits of Long-Term Renewable Contracts for Pennsylvania

Client: Mid-Atlantic Renewable Energy Coalition (MAREC)

Authors: Liz Stanton, PhD, Anna Sommer, Tyler Comings, and Rachel Wilson

December 2017

Pennsylvania’s 2004 Alternative Energy Portfolio Standards (AEPS) Act requires the Commonwealth’s electric distribution companies and electric generation suppliers to purchase Tier I alternative energy credits (AEC) equal to 6 percent of their retail sales by 2017, rising to 8 percent in 2021. Clinic Director and Senior Economist Liz Stanton, PhD, Anna Sommer of Sommer Energy, LLC, Tyler Comings and Rachel Wilson examined the potential benefits of longer term contracting (10 years and 20 years) for the renewables needed to meet one-half of AEPS as compared to the current practice of purchasing renewable generation and associated AECs at procurement auctions every six months. The conclude that, over a ten-year period from 2018 to 2028, 20-year renewable power purchase agreements (PPAs) for one-half of Pennsylvania’s incremental AEPS requirement would save ratepayers $134 to $331 million. AEC updated price inputs to this analysis in July 2019 and found that renewable PPA costs would continue to compare favorably to auction prices.

Link to Policy Brief

Link to Report

Link to July 2019 Memo

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