Testing and Application in Mission Critical Settings and Transmission, Siting, and Metrics Models Research

The Distributed Generation: Testing and Application in Mission Critical Settings and Transmission, Siting, and Metrics Models Research grant has been in place for several years and has accomplished all the objectives and deliverables that were originally set forth in the proposal. The National Association of State Energy Officials (NASEO), the City of Portland, OR, Bureau of Environmental Services and the Regulatory Assistance Project (RAP) have been able to successfully monitor and evaluate DG applications in a wastewater treatment plant environment, develop a metrics model for new voluntary DG guidelines that could be used as a prototype, and through outreach and education venues provide the results of these projects to state, professional, and national organizations and their members addressing similar issues. This project had three specific tasks associated with it: (1) Field Research and Testing; (2) Metrics/Verification Model for DG Guidelines; and (3) Northeastern Transmission/Siting Data Research. Each task had its own set of challenges and lessons learned but overall there were many successes that will serve as learning opportunities in these technology areas. Continuing to share the outcomes of this project with a wider audience will be beneficial for all those involved in distributed generation and combined heat and power projects

Decarbonizing the boardroom? Aligning electric utility executive compensation with climate change incentives

Despite the drastic reversal of decarbonization effort by the Trump administration, the majority of U.S. states continue policies aimed at reducing greenhouse gas (GHG) emissions and increasing renewable energy technology (RET) deployment. Although electrical power utilities are required and/or encouraged to comply with these policies, their executives lack direct incentives to do so. In this study, a novel incentive mechanism is evaluated for aligning utility executive compensation with such policies. First, an overview is provided on chief executive officer (CEO) pay and the GHG emissions of utilities. The relationship between GHG emissions, renewable energy diversification, and CEO pay is examined using the case study of three of the largest electric utilities in Michigan. The results show that the regulated utility market is not consistently rewarding CEOs with higher compensation for decreasing GHG emissions and that both an approach incentivizing RETs adoption and an approach encouraging GHG emissions have deficiencies. A combined approach is then analyzed that results in a compensation equation allowing for utility executives to receive incentive pay for reducing overall emissions and increasing renewable generation. The results indicate that by careful calibration of the proposed incentive equations the harmful effects of emissions can be prevented through CEO incentive pay