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Posts During the Month

May 2015
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“Demand Response” Holds Key to $200 Million in Electric Savings


Report: “Demand Response” Holds Key to $200 Million in Electric Savings

More than $200 million — that’s the amount all Texans could have saved if a modest number of them had reduced their electric consumption for only five days in 2012 and 2013, according to a new report.
An advocacy group known as SPEER (also known as South-central Partnership for Energy Efficiency as a Resource) found in a report released this week that several expensive-to-operate power plants could have remained idle if some Texans had reduced their power demand during a few hours on certain key days. Avoiding the use of those expensive-to-operate power plants would…

Some power generators in PJM showed signs of ‘economic withholding’


PJM Interconnection energy prices were lower in the first quarter of this year than in Q1 2014, but some generators showed signs of “economic withholding” in February, the market monitor said in a newly released report.
Monitoring Analytics, PJM’s IMM, concluded in its latest State of the Market Report — posted on the Monitoring Analytics website Monday — that the market produced competitive results in Q1.
Lower fuel prices, lighter loads and improved grid operations caused energy market prices to decrease significantly in the first quarter, Monitoring Analytics said, down 45.2% compared with the same quarter of…

US Supreme Court takes case on key FERC demand response rule


The US Supreme Court said Monday it would take up whether a key rule on demand response compensation in wholesale energy markets should be upheld.
The high court granted petitions for a writ of certiorari by the Obama administration and others to review a lower court ruling on Federal Energy Regulatory Commission’s Order 745, which required that demand response resources receive locational marginal price in wholesale energy markets.
The US Court of Appeals for the District of Columbia Circuit tossed out the order last year in a 2-1 decision, finding FERC, in issuing the order, had infringed on state jurisdiction over retail matters under the Federal Power Act.
The Supreme Court said it was granting review on two questions. First, the court asked whether FERC reasonably concluded that it had the legal authority “to regulate the rules used by …

Southwest Power Pool’s new integrated marketplace saves $131 million


Southwest Power Pool’s new integrated marketplace generated $131 million in net savings for the footprint in its first 12 months of operation, a new analysis showed.
Started March 1, 2014, SPP’s Integrated Marketplace features a day-ahead market with transmission congestion rights, a reliability unit commitment process, a real-time balancing market and an operating reserve market, all operated from a central balancing authority.
During Monday’s Regional State Committee meeting, Bruce Rew, SPP vice president for operations, noted…

Targeting Indirect Spend More Effectively

Spend Matters

by Jason Busch

Targeting Indirect Spend More Effectively: “Suitening” and Addressing Stakeholder Context

There are a number of emerging strategies to tackle indirect spend more effectively. These include, as my colleague Pierre Mitchell likes to call it, “suitening” to support all source-to-settle processes for indirect. With the concept of suitening, it is important to think suite, rather than individual components, for transactional elements of the indirect solution. Integrated suites that combine requisitioning, catalog management, advanced search, contract management and …

Procurement Doesn’t Manage Indirect Spend – Suppliers and Stakeholders Do

Spend Matters

One of the toughest challenges for procurement organizations tasked with managing indirect spend is that they don’t do it – their suppliers and stakeholders do. Consider the sometimes limited visibility procurement has into demand, pricing, contracts and related areas for indirect spend, especially those that are managed and/or negotiated at a decentralized level in the business. In addition, procurement often lacks the same level of understanding of the physical and financial supply chain flow for indirect material that they do for direct. …