E3 was retained to be a key advisor to Blackstone as part of their diligence and investment process for Blackstone’s acquisition of a 19.9% non-controlling equity interest in NIPSCO (Northern Indiana Public Service Company) for $2.15 Billion, with additional equity commitment of $250 million to fund ongoing capital requirements. E3 applied a custom bespoke approach to NIPSCO’s unique operations and jurisdiction to advise Blackstone during the investment process.

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E3 supported NYSERDA in developing a new methodology for calculating greenhouse gas emission factors for New York’s electricity grid. Greenhouse gas emission factors measure the emissions intensity of grid power (the amount of emissions produced per unit of energy generated, such as in metric tons per megawatt-hour). E3 calculated future marginal grid emission factors for carbon dioxide (CO₂), methane (CH₄), and nitrous oxide (N₂O) for New York State for 2023 through 2040, on a month-hour and annual basis. E3 worked together with NYSERDA to write a white paper describing the methodology, results, and recommended applications of the new emission factors, as well as an accompanying database of emission factors for use by stakeholders.

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Working with the New York Department of Public Service (DPS) and the New York State Energy Research and Development Authority (NYSERDA), E3 supported the development of a new roadmap for New York to achieve the installation of at least 10 Gigawatts of distributed solar by 2030. The roadmap lays out a path that will expand renewable energy in New York, generating enough clean energy to power 700,000 additional homes, while also prioritizing an equitable expansion of New York’s distributed solar infrastructure. E3 contributed to the distributed solar framework by providing analysis that informed the plan’s policy recommendations. E3 developed a supply curve model for distributed solar projects in New York and used this model to evaluate program costs for different incentive program options. The analysis was used to inform the roadmap’s ultimate recommendation to extend the current NY-Sun Megawatt Block incentive program to help achieve the 10 GW target.

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On behalf of the Public Generating Pool (PGP), a group of hydro-owning public power entities in Washington and Oregon, E3 completed a study exploring the effectiveness of a range of policy mechanisms to decarbonize the electric sector. This study used RESOLVE, E3’s optimal capacity expansion model, to develop optimized generation portfolios for the region through 2050 that capture […]

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Publications

• Pacific Northwest Low Carbon Scenario Analysis – Technical Report
• Pacific Northwest Low Carbon Scenario Analysis
• Public Generating Pool_2018 Pacific NW Scenarios and Sensitivities_Final Report
• Climate Solutions_2018 Pacific NW Scenarios and Sensitivities_Final Report
• National Grid_2018 Pacific NW Scenarios and Sensitivities_Final Report

E3, working with the New York State Energy Research and Development Authority (NYSERDA),  developed an innovative retail electric rate design to encourage beneficial customer investment in distributed energy resources (DERs), a leading goal of the New York Public Service Commission’s Reforming the Energy Vision initiative. Our conceptual full-value tariff (FVT) has three components: a customer charge, a size-based network subscription charge, and a time-varying kWh price. The network subscription charge may vary by location to reflect local transmission and distribution costs. We modeled customer response to the FVT to assess its impact on the value proposition of DER technologies, such as energy storage, smart thermostats, and smart vehicle charging. The analysis showed that the FVT can yield savings from measures that are not encouraged under existing rates, while still compensating solar PV and energy-efficiency measures in high-value locations. The FVT conceptual framework underpins the Smart Home Rate demonstrations that New York’s investor-owned utilities filed with the commission in February 2017.

Publications

• Full Value Tariff Design and Retail Rate Choices

E3 has supported electric rate design in Hawai‘i since 2005. Currently, E3 is assisting Hawaiian Electric Company (HECO) on next-generation retail pricing strategy and rate designs that align with the state’s goal of meeting its 100 percent renewable portfolio standard (RPS) requirements in a way that encourages cost-effective deployment of customer-owned distributed energy resources. HECO first retained E3 to recommend a strategy for developing rates that would encourage conservation to mitigate the impact of high electricity supply costs on its customers. We recommended a three-tier inclining block structure, which is still in place, to minimize increases on small customers and provide conservation incentives to large customers. We also helped get the rate approved, preparing direct testimony and presenting to the utility’s board of directors.

Macquarie Capital turned to E3 for analysis and strategic advice on a potential investment in a 50 MW distributed storage project developed by Advanced Microgrid Solutions (AMS) in the Los Angeles Basin. We performed simulations to verify AMS’s internal modeling of the benefits, costs, and value proposition of behind-the-meter, customer-sited storage assets. To understand potential revenue streams over a 20-year period, E3 analyzed the storage project and the underlying business model, forecasting wholesale and retail electric markets. Our financial analysis for the investors and potential lenders was a key element of the due diligence leading to Macquarie’s $200 million financing arrangement with AMS to take ownership of the project.