Synapse assisted New Brunswick Power in developing avoided costs for proposed energy efficiency programs. The programs were intended to be supported with a system benefits charge and to be implemented by an independent energy efficiency utility in New Brunswick. The analysis included a review of production cost model results, avoided energy costs, avoided capacity costs, avoided transmission and distribution costs, and consideration of greenhouse gas emission reduction credits. The analysis also included an assessment of the potential rate impacts of the efficiency programs. Project completed in March 2005.

Synapse prepared testimony that addressed the proposed allowed return on equity (ROE) and rate of amortization for Central Vermont Public Service Corporation (CVPS). Synapse determined the appropriate ROE for CVPS by using the discounted cash flow (DCF) and CAPM models. The Company originally requested a 5.0 percent rate increase, although it later reduced its requested increase to 2.9 percent. In the end, the Board accepted Synapse’s ROE recommendation in full. As a result Vermont customers’ rates were reduced by approximately 1.88 percent commencing April 1, 2005. Project completed in April 2005.

Synapse contributed four chapters to EPA's guidebook of policies that states can implement to advance clean energy activities.  These chapters address:

1. integrating energy efficiency and renewables into air quality planning,
2. integrating energy efficiency and renewables into state and regional energy planning,
3. identifying and describing the financial incentive (and disincentive) mechanisms for clean energy and energy efficiency associated with state-level ratemaking structures for electric and gas utilities, and
4. the role of clean energy in integrated resource planning and portfolio management. 

The guidebook can be found on the EPA's website here: http://epa.gov/cleanenergy/stateandlocal/guidetoaction.htm.

Project completed in December 2005.

Synapse advised Public Service Commission Staff in Delaware on alternatives for procuring power to serve default customers as provided for in the State's restructuring law and assisted the PSC Staff in the conduct of a multi-party workshop process considering those alternatives.  Synapse examined issues of acquisition of generation supply and the management of a resource portfolio to provide bundled generation service to residential, commercial, and industrial customers and assisted staff in successful multi-party settlement negotiations.  Project completed in September 2005.

Synapse analyzed proposed changes to Green Mountain Power's electric rate designs.  William Steinhurst prepared testimony recommending the modification of tariffs for residential customers to improve fairness and encourage energy efficiency.  Project completed in June 2005.

With a grant from the Massachusetts Technology Collaborative, Synapse performed a feasibility study of opportunities for advanced energy efficiency and alternative energy technologies. The overall goal of the study was to develop a list of technologies that will eventually be provided through low-income efficiency programs currently offered in Massachusetts. The study first addressed a list of all renewable technologies and emerging efficiency technologies that might be applicable to single-family and multi-family homes in Massachusetts. Synapse then screened these technologies on the basis of costs, savings, cost-effectiveness and applicability to develop a priority list of potential technologies. Those technologies remaining on the priority list were reviewed further for implementation issues related to low-income housing. Project completed in June 2005.

Synapse assisted the OPC in addressing many issues regarding the implementation of the renewable portfolio standard law in Maryland. Some of the key issues included the development of the Generator Attribute Tracking System at PJM, ensuring that necessary information is provided and processed appropriately, mitigating any market power problems in the renewable energy credit market, establishing appropriate compliance requirements, and ensuring that the requirements of the RPS law are met. Project completed in August 2005.

Synapse assisted the General Staff of the Arkansas Public Service Commission to address resource planning and power procurement issues.  Synapse reviewed the filings made by each of the four investor-owned electric utilities in Arkansas for compliance.  As part of this review, Synapse evaluated each utility’s financial and production costing models, energy supply forecasting, demand analysis, load forecasting, and other pertinent data and issues.  Project completed in June 2005.

Synapse analyzed different methods to estimate emission reductions from energy efficiency measures and renewable energy generation. Building on previous work for the Commission for Environmental Cooperation, Synapse evaluated methods that rely on power system dispatch models and methods that rely on simplifying assumptions to estimate emission reductions. The project objective was to help state and local air officials determine the best method for estimating emission reductions in a given situation, given key characteristics of the local power system and the amount of resources available for this assessment. Project completed in July 2005.

Synapse assisted ELPC in the Nuclear Regulatory Commission docket on Exelon’s proposal for an Early Site Permit for the construction of a new nuclear generating unit at the Clinton site.  Synapse reviewed Exelon’s analysis of alternatives to the proposed action, the environmental impacts of the various alternatives, and the relevant sections of the Nuclear Regulatory Commission’s Draft Environmental Impact Statement.  Project completed in May 2005.

Synapse provided the Pennsylvania Office of Consumer Advocate for 2004-2005 with technical and policy analyses, reports, and staff support for numerous issues related to the PJM control area.  Synapse addressed resource adequacy, demand response programs, generation retirement, regional planning, cost allocation of new transmission and generation projects, and cost impacts of PJM proposals on retail consumers.  Synapse attended meetings on behalf of PA OCA and provided further assistance in developing specific options and positions for FERC proceedings. Project completed in June 2005.

Clean energy projects added to the electric power grid can reduce carbon dioxide emissions from the power system and qualify for carbon reduction credit under the UNFCCC's Clean Development Mechanism (CDM). Our analysis of methods for quantifying the amount of carbon reduction credit to attribute to such projects included examination of "build margin" vs. "operating margin" (and combined) approaches, as well as the impact of project size, project timing, project output variability, and other factors. Project completed in October 2005.

Synapse developed a report on the impact of PJM’s proposed Reliability Pricing Model (RPM) on Exelon nuclear facilities' capacity revenues in northern Illinois. At the request of Illinois Citizens Utility Board (CUB), Synapse analyzed the current capacity revenues earned by Exelon’s nuclear fleet in Illinois and compared those revenues to the historical six-year average prices for capacity in PJM and to the RPM “target price” as defined by a benchmark proxy peaker unit. The analysis showed that the capacity revenues for Exelon’s nuclear units in northern Illinois would increase from $100 million (2005) to over $500 million annually under RPM, on average, and that annual earnings under RPM for a single year could be as high as $1.2 billion under extreme scarcity conditions. Project completed in August 2005.

Synapse examined the subsidies and hidden costs associated with the operation of the Indian Point nuclear reactors. At the request of the Indian Point Safe Energy Coalition (IPSEC), Synapse reviewed existing literature to identify and, where possible, quantify the federal and local subsidies and environmental and health costs affecting Indian Point. Project completed in May 2005.