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In-depth Analysis NO.10 2020 / 12
regulatory agencies through industry associations. Impact of electricity regulation and energy
The Edison Electric Institute (EEI), for example, has policy
done a great deal of work with electric utilities in Reimbursement of pandemic-related costs
response to the pandemic, including, among other The decline in electricity demand due to the
things: pandemic was the main reason for the impact on
(1) Industry coordination and liaison: Convene utility revenues. To mitigate this impact, 22 states,
leaders of member organizations to discuss strategies including California, New York, New Jersey, Maryland,
in response to the pandemic and develop industry and Illinois (most of which were severely affected
action guidelines. Convene webinars and invite by the pandemic), have implemented rate measures
a wide range of U.S. domestic and international that charge rates that decouple total electricity costs
power counterparts to exchange and introduce the from electricity consumption, which has largely
means and characteristics of COVID-19 prevention mitigated the revenue impact of the pandemic on the
in their respective countries and regions, and share electricity industry as a whole.
information and lessons learned. State government policies that allow for deferred
(2) Communication with government departments: bill payments due to the effects of the pandemic and
Keep close communication with the government service shutoffs on delinquent accounts adopted by
through the Electricity Subsector Coordinating electric power companies have led to an increase
Council (ESCC) under the federal government. Apply in bad debt and have negatively impacted utility
to government finance and financial institutions revenues. Currently, regulators in at least 35 states
to increase liquidity in the secondary commercial have allowed utility companies to make up for these
paper market, on which member companies losses.
rely extensively for their operations. Apply to the Encourage renewable energy development
Securities and Exchange Commission for delayed Job creation is a top priority for the federal
filing of compliance documents. Work with the government, state governments, and local 27
National Security Council to reflect the electric governments. Sustained economic growth can be
industry's social responsibility in return-to-work supported through job creation in renewable energy.
arrangements. According to the International Renewable Energy
(3) Solving operational problems: Introduce the Agency (IRENA), renewable energy provides more
concept of essential workers and prioritize the than 350,000 jobs in the United States. The impact
provision of personal protective equipment for of the pandemic on the job market has increased the
essential workers. Obtain exemptions and extensions focus on the supporting role of renewable energy for
of Federal Motor Carrier Safety Administration on employment.
vehicle operating restrictions during the pandemic. (Source: SGCC)
Continuously respond to the various issues caused
by the pandemic to member companies' health and
safety programs. Investigate member companies'
issues related to bad debts and delinquent accounts,
etc.
(4) Industry pandemic prevention publicity:
Establish an industry pandemic prevention response
center to support the customer and community
side by providing multiple resources. Educate
state regulators and consumer advocates about
the electric industry's preparedness and response
to pandemic prevention and the impact of these
efforts on the energy industry and customers by
working with the National Association of Regulatory
Utility Commissioners (NARUC) and National
Association of State Utility Consumer Advocates
(NASUCA).
Global Energy Interconnection Information