7 min read

July 2020 - Quarterly Market Letter

By Jon Moore on July 13, 2020

On behalf of the team at 5, I am pleased to forward our market letter for the second quarter of 2020. This letter updates our analysis of COVID-19 and its impact on energy demand. It also discusses the pandemic’s impact on state renewable goals, and how FERC’s position on several important energy policy decisions could shift depending on which party wins the 2020 presidential election.

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6 min read

May 2020 - Quarterly Market Letter

By Jon Moore on May 28, 2020

On behalf of the team at 5, I am pleased to forward our first market letter for 2020. Since the spread of COVID-19, our primary concerns have been the safety of our team and supporting our clients. I want to give special thanks to our technology team and its leader, Matt Shaw. Matt planned and executed our multi-year effort to develop an industry leading technology solution, Level5. While we did not build this system with a pandemic in mind, it has allowed us to support clients without interruption during these difficult months. Not surprisingly, this market letter is focused on COVID-19 and its broad and evolving impact on the energy market.

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January 2020 - Quarterly Market Letter

By Jon Moore on January 23, 2020

On behalf of the team at 5, I am pleased to forward our market letter for the fourth quarter of 2019. Today energy deregulation is a tale of two markets. The Mid-Atlantic states (PJM), New England (NEISO) and New York (NYISO) are caught in a struggle between state regulators who seek to subsidize carbon-free generation and opponents who argue (for economic, policy, or political reasons) that these subsidies threaten the viability of a competitive market. The debate reached a crescendo last quarter when the Federal Energy Regulatory Commission (FERC) issued an order that effectively undercuts current state subsidies of carbon-free power generators.

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1 min read

Factoid: Cutting Cattle Greenhouse Gas

By Luthin Associates on January 15, 2020

Could eating seaweed save the climate?

Cows are a significant source of methane, which is a powerful greenhouse gas, primarily from belching as they digest grass and feed (with more coming out the cow’s back end). But recent research found that mixing in a tiny amount (0.5%) of a type of seaweed into their food greatly cuts methane output, with no negative impact on milk production.

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3 min read

Be Vewy Vewy Quiet. I'm Hunting Carbon

By Luthin Associates on January 15, 2020

The biggest issue confronting the energy industry in New York today is decarbonization. That is, how to reliably meet the energy needs of the state’s residents and businesses while drastically reducing and eventually eliminating altogether greenhouse gas emissions - and do it without breaking the bank. The challenge is especially – well, challenging – for the electricity sector. Under the Climate Leadership and Community Protection Act or CLCPA, enacted into law this summer, all the electricity needs of New York are to be met by carbon-free resources no later than 2040.

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3 min read

Time to Look Again At Your Lighting

By Luthin Associates on January 15, 2020

Elmer Fudd may never find that wascally wabbit by looking down a rabbit hole, but building owners and managers can find a chunk of energy and cost savings just by looking up at their ceilings.

T8 and T5 fluorescent lamps powered by electronic ballasts, the high-efficiency standards of the ’80s and ’90s, may now be easily replaced by light-emitting diode (LED) systems that cut wattage and carbon emissions by half or more while providing the same amount of light. In Con Ed territory, LEDs may pay for themselves in 2-4 years. That’s an ROI of 25%-50%, better than most cost-cutting options available to buildings. Toss in the near elimination of re-lamping (due to 15-20-year LED lifetimes), and no more lamp recycling (LEDs contain no mercury), and even Yosemite Sam will feel like he’s struck gold.

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7 min read

October 2019 - Quarterly Market Letter

By Jon Moore on October 7, 2019

On behalf of the team at 5, I am pleased to forward our market letter for the third quarter of 2019. This letter discusses: (i) electricity price spikes in Texas, (ii) new limits on natural gas usage in New York, and (iii) California’s continued struggle with the linkage between power lines and wildfires.

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7 min read

July 2019 - Quarterly Market Letter

By Jon Moore on July 8, 2019

On behalf of the team at 5, I am pleased to forward our market letter for the second quarter of 2019. The beach is a great place to find some wind and not just to fly a kite. In fact, many Northeastern states are counting on offshore wind to meet their renewable generation goals. This letter reviews recent offshore wind developments and explores how realistic these projects are in light of: (i) the relatively high cost of offshore wind, and (ii) the permitting required to construct these projects and the related transmission infrastructure.

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3 min read

Will Power Storage Incentives Be the Key to Expanding Renewables?

By Luthin Associates on June 27, 2019

As battery power storage pricing drops, new installation goals and incentive programs are emerging. New York State is pushing for 1.5 gigawatts (GW = 1000 MW) of storage capacity by 2025, and 3 GW by 2030. Utility level and behind-the-meter (BTM) projects promoted through equipment rebates and power price adjustments under the Value of Distributed Energy Resources (VDER) process. The Federal Energy Regulatory Commission’s (FERC’s) Order 841 offers access to wholesale power markets by mandating Independent System Operators (ISOs) create rules for entry and valuing of power storage capacity.

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3 min read

Will New York City's Climate Mobilization Act Save the Big Apple?

By Luthin Associates on June 27, 2019

Cities and states are moving ahead to fill the void left by federal inaction on global warming. On April 18, 2019, New York City’s government approved a Climate Mobilization Act designed to deepen and accelerate that effort. While hailed by many as a strong thrust toward reducing the City’s overall carbon footprint, some have expressed concern regarding its potential costs and ability to meet goals.

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