CAPACITY MARKET

The GT Power Hour: Episode 29 (The Politics of Energy Generation, w. FERC Cmmsr. Mark Christie)

Jan 17, 2022 |

In which we receive several history lessons from FERC Commissioner Mark Christie on what has caused capacity markets to (so far) fail to live up to their full promise and threatens to tear regional markets apart, as well as what choices states have. From there, we consider the impact to the industry of the shale-gas revolution, get to the bottom of the tension regarding the minimum offer-price rule (MOPR), make a plea for Robert Caro to finish his LBJ biography series and the Steelers to draft Heisman-finalist Pitt quarterback Kenny Pickett to replace Roethlisberger, reminisce about the heroes of the golden age of Pittsburgh Pirates baseball and the antiheroes of the current Golden Age of Television, pay tribute to former Virginia SCC Judge Preston Shannon, discuss new year’s resolutions and Glen’s apparent love of coffee, plus much more.

Episode 23 (Line in the Sand: A Garden State-ment)

Jul 30, 2021 |

In which we submit New Jersey Board of Public Utilities President Joe Fiordaliso to our line of questioning on resource adequacy, capacity markets, offshore wind, PJM, NIMBYism, state relations with PJM and FERC, New Jersey’s Energy Master Plan and its aggressive goals and the state of thermal generation in the Garden State.
Later, we force the president to engage in a little political Catch-22 and pick favorites between beloved New Jersey icons. After that, he doles out some advice to another president whose tenure his own has far exceeded and finally urges everyone to follow his state’s bold lead in addressing climate change.

Episode 22 (Morgan You Bargained For)

Jul 7, 2021 |

In which we sit down with Curt Morgan, the president and CEO of Vistra Corp., to discuss his investment philosophy in the power-generation business, the current investment status of generation technologies, how financial markets are disciplining the industry and leading the ESG revolution, the “terminal value” issue with gas-fired generation and why you never want to be the first owner of such a facility, gas pipelines’ dirty little secret, the reality of climate change, putting the power-industry transition into historical perspective, how PJM’s markets have performed, why power markets need to ditch some terminology as they add emissions to their list of must-haves, why carbon pricing and PJM’s MOPR are DOA and ERCOT turning gun-shy.

Episode 21 (Bowring 2: The Monitor Is Always Watching)

May 10, 2021 |

In which we welcome PJM Independent Market Monitor Joe Bowring into the illustrious GT Power Hour Two-Timers Club to continue discussion of the compelling comments fellow club-member FERC Chairman Glick made on the previous episode, and the Monitor – as he is wont to do – happily (and ably) complies. Brace for a deep dive on the minimum offer-price rule (MOPR) in the capacity market, why FERC wants it pared back, how PJM appears likely to respond, the interaction of capacity and energy markets and what can be done to transfer generators’ reliance on capacity-market payments to actual performance in energy and ancillary-services markets. Let’s just say the Monitor and the Chairman don’t see eye to eye on several things.
It’s a pretty meaty talk that doesn’t stray far from the issues at hand, but there is some ranting and commiseration on the misery of driving the I-76 Schuylkill Expressway. Better buckle up!

Episode 20 (Glick 2: A Change Is Gonna Come… No Really, Like Now)

Apr 13, 2021 |

In which we take a second crack at recently appointed FERC Chairman Rich Glick as he settles into his new role, and he is very clear in setting his agenda: changes are coming – and some are already here. Less than three months into his leadership, Glick’s FERC has already announced more than a dozen major changes and initiatives, some of which touch on hot-button issues – like system reliability and resource adequacy in relation to climate change – and others that focus squarely on them, such as creating a new senior-level commission position to address environmental justice and opening an Office of Public Participation.

From PJM’s minimum offer-price rule (MOPR) to the standards for evaluating proposals for natural-gas pipelines to how power generators are compensated and whether capacity markets are essential, the chairman goes on to lay out his vision and plans going forward, as well as expected timelines. We also discuss his beloved New York Mets, his abysmal record in picking this year’s March Madness winners and his expectations on energy-related legislation coming out of Congress this session. Shorter than many of our episodes, let’s just call this one “highly concentrated” and well worth the time!

Episode 19 (What Really Happened in Texas?)

Mar 22, 2021 |

In which we dig into the causes of the Texas power outages in February 2021 and their potential consequences by sitting down with perhaps the one person in the world best equipped to discuss the situation: Pat Wood, who’s served as the top utility regulator both at FERC and the one state FERC doesn’t oversee, Texas. If you’re wondering what the likelihood is that Texas gets a capacity market, FERC oversight, a change in the pace of its power-generation transition or additional direct-current (DC) ties to neighboring grids, Pat’s got an answer.
But it’s also the one-year anniversary of the global pandemic, St. Patrick’s Day, Oscar’s nominees were announced – and don’t forget the return of March Madness! All receive their due attention, not to mention discussion of final requests, Cuban cigars, the famous Gruene Hall, BBQ, Mother Nature and the heartiness of azaleas.
There’s so much here, that (for the first time ever) we couldn’t keep it all to a single hour… Apparently everything is bigger in Texas – even podcasts!
PROGRAM NOTE:
The Business Insider podcast discussed during the episode can be found here: https://www.businessinsider.com/brought-to-you-by-podcast-btyb-enron-mail.

Episode 18 (Capacity-Market Deep Dive)

Feb 19, 2021 |

In which Glen and Rory dig deep to break down PJM’s capacity construct: where it’s been, where it’s going, how it compares to other regional grids and the major forces at play in shaping its future.
But that’s not all! (It never is.) TB12 and the Calvin and Hobbes comic strip make appearances in the conversation as Glen coins the phrase “that warm barn of regulation” and presages the devastating blackouts in Texas that would occur just hours after recording the episode. What should become of the MOPR? Are PJM and its member states still invested in competitive markets? What’s the deal with monopsony market-power? Can state statutes play nice with market forces? How does the new-look FERC impact all of this? Does New Jersey’s new market-design idea have legs? No questions barred and all things considered, it’s a discussion about electricity supply and system reliability that you don’t want to miss!

Episode 17 (The Right Manu for the Job)

Jan 20, 2021 |

In which we probe deep into the mind of Manu Asthana one year into his tenure as PJM’s president and CEO, and he proves to be up to the task – both in the interview and the job. Ranging from the MOPR, the ORDC, the NJBPU’s state-agreement approach on analyzing offshore wind and a word salad of other industry jargon to the pandemic and social-justice movements, we explore our guest’s perspectives on a wide variety of topics – and consistently return to themes of unity and equality that might be exactly the kind of leadership PJM needs right now.

Episode 13 (One Hill of an Interview!)

Sep 14, 2020 |

In which we sit down with Calpine President/CEO Thad Hill for our first “executive interview” and end up picking his brain about everything from insights from leading the company back to private ownership in 2018 to how Vice President Biden can earn cred for his campaign’s environmental platform to whether the Ivy League or the SEC has the most insufferable fans. Oh yeah, there’s also carbon pricing, capacity markets, what’s gone wrong (and right) in California, which Pulitzer Prize-winning novel is currently on his nightstand and our requisite (but brief) ruminations on sports. It’s worth a listen during your one-hour workout.

Episode 6 (The Stanek Inquisition)

May 18, 2020 |

In which we interrogate (in a nice, friendly way) Maryland Public Service Commission Chairman Jason Stanek about COVID-19, the MOPR, NIMBYs, offshore wind and nuclear bailouts, and he divulges… his love of landscaping.