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Representative Work Products
A more-comprehensive catalog of Resource Insight’s work can been found in the professional vitae of the firm’s senior staff members. You may also view this list of links to representative work products in bibliographic form. |
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Despite dramatic changes in the energy-utility sector, regulators continue to review and control a wide range of utility activities, in an increasingly complex environment. Resource Insight brings to this arena considerable experience in cost-allocation and rate design, in the determination of the prudence of major investment decisions, and in crafting effective regulatory strategies.
Mergers and Performance Standards
In this testimony before the Washington Utilities and Transportation Commission (1999), Resource Insight President Paul Chernick examines the merger of Scottish Power and Pacificorp, reviewing proposed performance standards and discussing valuation of performance. The discussion primarily emphasizes network-performance standards, which deal with system-reliability issues. The testimony also reviews proposed low-income assistance. You may view a bibliographic listing for this testimony or view the testimony.
Performance-Based Regulation
Resource Insight co-authored this study of performance-based regulation for NARUC in 1997. The study considers recent examples, possible objectives, and implications of restructuring for performance-based regulation. You may view a bibliographic listing for this study or view the PBR report.
In this testimony before the Connecticut DPUC in 2000, Resource Insight’s president, Paul Chernick, discusses the problems with a proposed mechanism for sharing excess earnings and gas-cost reductions between gas-utility ratepayers and shareholders. You may view a bibliographic listing for this testimony or view the testimony.
Regulation also continues to play a central role in many other questions, including some arising in the course of industry restructuring.
Quantifying Imprudence
In this testimony before the Vermont Public Service Board in 2001, Resource Insight President Paul Chernick details how to value the losses from past imprudence of the Central Vermont Public Service Company. You may view a bibliographic listing for this testimony or download the testimony from the Vermont Department of Public Service.
Avoided Costs
This detailed calculation of avoided electric and gas supply costs (1999) formed the basis for an agreement among parties to Massachusetts’s restructuring docket. Today this work is used to design and screen demand-side-management programs in all six New England states. The methods and assumptions for these calculations are set forth in detail. A 2007 revision provides new results based on recent changes in regional markets and energy prices. You may view a bibliographic listing for the original 1999 report or for the 2007 revision, incorporating recent market trends and experience. You may view the original report or the 2007 revision.
Integrated Resource Planning
Although there is no fundamental conflict between least-cost planning and industry restructuring, utility least-cost planning has lost steam in many jurisdictions. In 2003 Resource Insight prepared an integrated resource plan to help the City of New York use its influence and its purchasing and land-use-planning powers to secure electrical-energy resources for residents and businesses. The firm identified energy needs, resources (including distributed resources), and costs, and compared alternatives. You may view a bibliographic listing for the 2003 study or view the study. (This work also informed the 2004 report of the City’s Energy Policy Task Force.)
See also Resource Insight’s 2006 work in integrated resource management, below, commissioned in response to market failure in Ohio.
Distributed Utility Planning
Resource Insight provided this concise description of how to incorporate demand-side management into T&D planning for the Vermont Department of Public Service. The guidelines are part of the Department’s comprehensive energy-efficiency plan (1997), which subsequently led to the establishment of the nation’s first stand-alone energy-efficiency utility. (Resource Insight also wrote Part 4 and Appendix 4 of the plan.) You may view a bibliographic listing for the guidelines or download the guidelines from the Department. You may also download the entire report.
The transition to competition also raises policy and analytical questions that are partly or completely new.
Stranded Costs
In its 1996 study of Massachusetts stranded costs for that state’s Attorney General, Resource Insight articulated the now widely accepted principle that stranded costs should be calculated net of any gains that utilities realize from restructuring. The report also estimates the market value of power plants, based on the present value of future profits. Resource Insight has since used this methodology in many other jurisdictions. You may view a bibliographic listing for this study or view the report.
A subsequent paper published by the International Association for Energy Economics in 1996 discusses the broader applicability of Resource Insight’s study of Massachusetts’s stranded costs to other jurisdictions and to restructuring in general. You may view a bibliographic listing for this paper or view the paper.
Restructuring Principles and Policy
Resource Insight led this investigation into electric-industry restructuring in Maryland for the Maryland Office of People’s Counsel (1997). Its findings on market structure, industry structure, public benefits, stranded costs, rate unbundling, and tax issues are generally applicable to other U.S. jurisdictions. The report discusses market power, universal service, demand-side management, environmental quality, stranded costs, and other issues. The Office of People’s Counsel filed this report in proceedings before the Maryland Public Service Commission. You may view a bibliographic listing for this report or view the report.
Divestiture of Generation
In this testimony before the Connecticut Department of Public Utility Control (2000), Resource Insight’s president, Paul Chernick, reviews a proposal to sell Millstone nuclear unit 2 and a majority share of Millstone 3, which is jointly owned. His testimony discusses the market for nuclear assets and such issues as the optimal structure of auctions, the value of minority-owner rights (such as rights of first refusal), and the timing of divestiture. You may view a bibliographic listing for this testimony or view the report.
The promise of mature markets as a result of industry restructuring is matched by new problems, remedies, and opportunities.
Market Power in Gas Markets
In this testimony before the New Jersey Board of Public Utilities (2001), Resource Insight President Paul Chernick discusses dangers posed by market power in wholesale gas markets. The efficiency of these markets has implications for both gas and electricity supply. Resource Insight found parallels between proposed gas restructuring in New Jersey and electric-industry restructuring in California. You may view a bibliographic listing for this testimony or view the testimony.
This 1996 paper finds that least-cost resource planning is compatible with electricity markets that have been restructured to allow for competition among generators. The authors describe the resource-planning process in a competitive environment, with special attention to the aspects most important to the design and implementation of energy-efficiency programs. The paper was subsequently published by the American Council for an Energy-Efficient Economy. You may view a bibliographic listing for this paper or view the report.
Market Failure
This position paper, submitted to the U.S. FTC on behalf of the Maryland Office of People’s Counsel in 2001, explains why defects in wholesale electricity markets make functioning retail markets impossible. You may view a bibliographic listing for this paper or view the paper.
The failure of industry restructuring to create robust competitive power markets in Ohio has led policy makers there to consider long-range power-supply plans. Resource Insight’s 2006 work for the Office of the Ohio Consumers’ Counsel. explores a framework for integrated resource planning as part of this process, comprehensively incorporating and comparing the costs of all energy resources, including energy efficiency. You may view a bibliographic listing for this study or view the study.
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