CAISO Board OKs Grid Services Requirements for Renewables

By Robert Mullin

CAISO’s Board of Governors last week approved proposed Tariff revisions that will require new renewable resources be capable of providing grid-stability services as a condition for interconnecting with the ISO’s system.

San Gorgonio Pass Wind Farm (Wikipedia) - renewables grid-stability services caiso — CAISO’s Tariff changes will require new and upgraded renewable resources to be capable of providing reactive power and voltage control. *Photo of San Gorgonio Pass Wind Farm source: Wikipedia*

While stakeholders largely support the amendments, some market participants contend they don’t go far enough in guaranteeing adequate compensation for what has become an increasingly important service as more intermittent resources link up with the grid.

The proposed revisions follow FERC’s June issuance of Order 827, which requires that all newly interconnecting non-synchronous generators have reactive power capability. Resources undergoing upgrades would also be subject to the new rules.

“We are pleased to now take this next step, in which clean power resources can contribute to the reliability of the grid,” CAISO CEO Steve Berberich said in a statement. “By providing reactive power, these resources are better suited to help us integrate increasing numbers of renewable resources.”

“It’s really good utility practice to require all resources in the fleet to have reactive power,” Keith Johnson, CAISO manager of infrastructure policy and contracts, told board members during an Aug. 31 meeting.

The ISO’s Tariff changes go beyond FERC’s mandate for reactive power capability by adding a provision requiring that non-synchronous resources also provide voltage regulation.

“Maintaining voltage is very important for how we operate in the West,” Johnson said, explaining the ISO’s rationale for the additional requirement. “The incremental cost of [automatic voltage regulation] equipment is very, very minimal.”

Thermal Generators Seek Raise

Although the new requirements had broad support among stakeholders, a disagreement arose over CAISO’s decision not to use this FERC filing to alter its compensation for reactive power — a move that would especially benefit thermal generators that are steadily losing market share to renewables.

Under current ISO practice, any generator that is dispatched down to provide reactive power is paid its opportunity cost for lost energy revenues. Generators want the ISO to implement a new market provision that would compensate them for the capital cost of installing reactive power equipment — effectively creating a capacity payment for providing reactive power service.

CAISO contends that generators can recover those costs through their power purchase agreements, given the West’s continued reliance on bilateral contracts for the provision of capacity. Any additional market mechanism would run the risk of creating double payments for the service, Johnson said.

“Providing reactive power is a service essential to the operation of the grid,” said Brian Theaker, director of market affairs at NRG Energy. “Today’s disappointing decision doesn’t advance that.”

Theaker said that the current compensation structure does not provide “reliable signals” for generating units that require longer-term guarantees to remain financially viable.

“We feel like there’s been an opportunity missed here,” said Carrie Bentley, a consultant representing the Western Power Trading Forum. “The ability to provide reactive power is not free,” she continued, adding that five other organized markets offer compensation for the service.

“It’s not a secret that renewable power is disrupting the [capacity] and energy market — a lot of thermal generation will not be able to remain in the market,” Bentley continued. “How do you provide a market signal strong enough to keep the thermal generation we need.”

“The ISO did talk about compensation and looked at some of the other ISOs and RTOs across the country,” Johnson responded. “When PJM or MISO was formed, there were legacy arrangements for capacity payments for reactive power. We have no such system of capacity payments — we have bilateral contracts.”

Keith Casey, CAISO vice president for market and infrastructure development, said Bentley’s concerns about the ISO’s thermal fleet were “spot on.” He pointed out that the ISO’s new flexible ramping product — which compensates generators for the ability to rapidly respond to intermittent output from renewables — is one effort to reward “needed” generators.

“We just view the reactive power capability as a fundamental requirement,” Casey said. “The capital cost for that capability should be addressed through bilateral contracts.”

September 5, 2016

State Briefs

ARKANSAS

EPA Finalizes State’s Regional Haze Plan

EPA has finalized a federal implementation plan for compliance with its Regional Haze Rule for the state, but regulators and at least one generator say they may appeal the decision.

The final rule calls for increased emissions control at three coal-fired plants and three natural gas-fired plants, in addition to a paper mill. One of the plant owners, Entergy, said compliance measures could cost it up to $2 billion and that the company is exploring its options. State environmental officials may also appeal the rule.

More: KUAR; ArkansasOnline

CALIFORNIA

Imperial Irrigation District Strikes Net Metering Agreement

Imperial Irrigation District, which generated public backlash after it cut off enrollment in its net metering program earlier this year, will allow as many as 1,300 new rooftop solar customers to sign up for the preferential rate.

The district, which provides electrical service to 150,000 customers, reached a deal with the solar industry and state lawmakers to enable any customers who applied for a solar interconnection permit and received a building permit by April 1 to enroll in the program.

IID struck the compromise in the face of possible passage of legislation that would have expanded the eligibility period to July 19.

More: The Desert Sun

Appeals Court Denies Release Of PUC-San Onofre Emails

A state appeals court last week reversed a lower court decision that would have forced the Public Utilities Commission to disclose its communications related to the agency’s settlement with Southern California Edison over the closure of the San Onofre nuclear generating station.

The appellate court sided with the PUC, which argued that the communications involved privileged information regarding a rate case. San Diego attorney Michael Aguirre had sought to release the emails to determine whether Gov. Jerry Brown was party to ex parte, private negotiations between former PUC President Michael Peevey and the utility ahead of the settlement. Peevey, a former SoCalEd executive, stepped down from the commission after the negotiations were revealed.

Though the court denied disclosure, it recommended Aguirre submit his request to the PUC under the state’s Public Records Act and, if denied, take his case directly to the appeals court. Aguirre said he will appeal to the state Supreme Court.

More: The Sacramento Bee

COLORADO

Co-op to Shutter 2 Plants Under Regional Haze Plan

The Tri-State Generation and Transmission Association said it will retire more than 500 MW of coal-fired generation in the next decade in order to comply with the state’s implementation plan for EPA’s Regional Haze Rule.

The electric cooperative said it plans to shutter the 100-MW Nucla Station in Montrose County by 2022, along with the nearby mine that feeds the plant. It also plans to close the 427-MW Unit 1 at the Yampa Project by 2025, although two other units at the site will continue to operate. It said it is more economical to close the units rather than retrofit them to comply with the regulations.

“Tri-State has worked tirelessly to preserve our ability to responsibly use coal to produce reliable and affordable power, which makes the decision to retire a coal-fired generating unit all the more difficult,” the company said. “We are not immune to the challenges that face coal-based electricity across the country.”

More: The Denver Post

MICHIGAN

Agencies Approve $89.5M In Energy Assistance

The Agency for Energy and the Department of Health and Human Services approved $89.5 million in Energy Assistance Program grants last week for 14 nonprofits and utilities.

The grants are meant to help low-income residents pay electric bills. Among the organizations and municipalities that received multi-million dollar grants, DTE Energy received $17 million and Consumers Energy received $13.2 million. The Salvation Army also received $13.7 million, while TrueNorth Community Services received $15 million.

More: WSYM

NEW MEXICO

Regulators Promise Decision On PNM Rate Case by Sept. 28

The Public Regulation Commission said it will issue a decision within a month on Public Service Company of New Mexico’s rate-increase request. The PRC’s announcement came after most parties in the case objected to reopening hearings.

PNM proposed a 15.8% rate hike earlier this year to cover its investments in power and energy-efficiency measures. In early August, a PRC hearing examiner recommended a 6% increase, saying PNM hadn’t justified the higher rate.

PRC acting general counsel Michael Smith said that as a result of the nearly “uniform” opposition to holding more hearings, “We are going to make a decision based on the recommended decision that was issued by Carolyn Glick,” the hearing examiner.

More: Santa Fe New Mexican

Regulator Approves ROW for Southline Transmission Project

Land Commissioner Aubrey Dunn last week gave right-of-way approval to the Southline Transmission Project, a proposed 345-kV double-circuit line that would cross into Arizona. Developers must still submit detailed plans about the exact location of structures and roads associated with the line, along with cultural and biological surveys.

Sponsored by Hunt Power subsidiary Southline Transmission, the line will provide up to 1,000 MW of transmission capacity in both directions and connect with as many as 14 existing substation locations.

More: Albuquerque Journal

OKLAHOMA

OCC Orders Fracking Wells Shut down After Earthquake

A magnitude-5.6 earthquake last week spurred state regulators to order 37 fracking waste disposal wells to shut down over a 725-square-mile area.

The order came from the Corporation Commission’s Oil and Gas Division. Gov. Mary Fallin said the commission is coordinating with well operators around the town of Pawnee and that several buildings in the Pawnee Nation had been rendered uninhabitable by the quake. She also said EPA is assessing the region.

The wells will close within 10 days of the order, according to a schedule the commission says is necessary because scientists have warned that a sudden shutdown could provoke another earthquake. A commission spokesperson said the wells were ordered closed because of the link found by the U.S. Geological Survey between wastewater disposal and the increased number of earthquakes in the region, particularly in the state.

More: CNNMoney; Bloomberg News; The Associated Press

Wind Opponent Seeks to End Tax Credits Next Year

WindWaste, an organization opposed to wind power incentives, estimates that future wind developments could force the state to shell out more than $500 million annually in zero-emissions tax credits by 2019.

The subsidy is set to sunset on Jan. 1, 2021, but WindWaste wants lawmakers to end the credit by July 1, 2017. The next legislative session begins in February.

Representatives of the wind industry say WindWaste’s estimates of $5.2 billion in payouts by 2030 is wildly inflated. It argued that the group based its predictions on the amount of generation in SPP’s interconnection queue, which only has a buildout rate of about 15%, it says.

More: The Oklahoman

SOUTH DAKOTA

Developers of Wind Project Withdraw Request for Permit

Developers of the Prevailing Winds project asked state regulators last week to withdraw their application for a permit. The retreat came one week after a raucous, four-hour community meeting near Pierre.

Public Utilities Commission Chair Chris Nelson said the request was “unexpected.” The request came shortly before the commission’s Aug. 30 meeting and could be considered at its Sept. 13 meeting.

Prevailing Winds would produce about 200 MW of electricity. By asking to have its application dismissed without prejudice, developers could again apply for a permit at a later date.

More: Rapid City Journal

TEXAS

Austin City Council Approves Rate Cut

The Austin City Council last week unanimously approved Austin Energy’s request to redo its residential electric rates, but not before the city-owned utility first dropped a controversial proposal for an increase. Under the revised rate structure, the municipal utility’s 400,000 residential customers would see bills cut by about $62/year.

The council also signed off on $42.5 million in annual cuts that Austin Energy and its major customers agreed to earlier this month. Most of those cuts will go toward reducing electric bills for industrial and commercial customers. Major customers, such as data centers and large hospitals, will see their electric rates cut 24%.

The utility’s original proposal came under attack because of Austin Energy’s tiered residential price structure: Customers pay the base rate for their first 500 kWh of electricity and higher rates for subsequent blocks of 500 kWh.

More: Austin American-Statesman

VIRGINIA

SCC Examiner Affirms Right To Third-Party Solar Financing

A State Corporation Commission hearing examiner rejected an argument by Appalachian Power that third-party solar financing was illegal, paving the way for homeowners to sign up for the popular method of paying for residential solar-system installations.

“Today’s decision is an important win for solar rights in Virginia, which has continued to lag behind neighboring states on solar because of outdated policies and utility opposition like we saw from Appalachian Power in this case,” said Will Cleveland, staff attorney at the Southern Environmental Law Center. “The ruling confirms that Virginians have the right to use common sense financial tools to choose solar power without utilities acting as the middle men.”

The utility argued that third-party financing, in which homeowners paid for solar systems through monthly contracts, was legal only under a Dominion Power pilot project. The ruling now goes before the full commission for public comments and final briefs.

More: The Energy Fix

WISCONSIN

Regulators Approve Enbridge Pipeline Replacement

The Department of Natural Resources has granted a waterway and wetlands permit for Enbridge Energy to replace a section of old oil pipeline.

Ben Callan, a DNR water management specialist, said the permit is for replacing a 14-mile stretch of Line 3, a 1960s-era pipeline. The pipeline had been operating at a diminished capacity after Enbridge recently found issues during integrity tests. The new section will have a 36-inch diameter and be able to carry up to 760,000 barrels per day.

Callan said that the permit requires the hiring of an independent consultant to oversee compliance. Enbridge spokeswoman Shannon Gustafson said the company has not set a timeline for construction.

More: Wisconsin Public Radio

September 5, 2016

ERCOT Expects Adequate Generation for Fall, Winter

By Tom Kleckner

ERCOT’s latest resource adequacy assessments indicate it has 25,000 to 30,000 MW of spare generating capacity for the fall and winter.

ERCOT Control Room (ERCOT) - fall winter ercot generating capacity — ERCOT’s control rom *Source: ERCOT*

The Texas grid operator’s final Seasonal Assessment of Resource Adequacy (SARA) for October and November includes more than 82,000 MW of capacity, more than enough to meet a projected peak demand of about 54,400 MW.

The preliminary winter SARA report is similarly rosy, with more than 81,000 MW of capacity available to meet a forecasted record peak demand just under 59,000 MW. The winter demand record of 57,265 MW was set during February 2011’s record cold.

ERCOT, which operates 90% of the Texas grid, said four gas-fired combustion turbine units and three wind projects have begun operating since its preliminary fall SARA, adding nearly 900 MW of capacity. Three of the gas units are switchable resources and can connect to either ERCOT’s or SPP’s grids. The fall forecast assumes 13,700 to 19,000 MW of planned and unplanned outages.

Another 1,200 MW of new winter-rated capacity is expected to be in service for the winter season (December-February). The final winter SARA report will be released in November.

— Tom Kleckner

September 5, 2016

Monitor OKs PJM Auction; Says Problems Remain Despite CP

By Rich Heidorn Jr.

PJM’s Independent Market Monitor last week gave his blessing to the RTO’s Base Residual Auction for delivery year 2019/20 but called for additional rule changes to build on the tougher standards of Capacity Performance.

The Monitor’s report on the May auction concluded that the results “were competitive, with the caveat that although the Capacity Performance design addressed the most significant issues with the capacity market design, the Capacity Performance design was not fully implemented in the 2019/2020 BRA and there continue to be issues with the capacity market design which have significant consequences for market outcomes.”

PJM will require all capacity to meet CP standards starting with the 2020/21 delivery year.

pjm market monitor capacity auction capacity performance — Bowring © *RTO Insider*

The Monitor called for additional changes concerning the treatment of pseudo-tied generation, demand response and energy efficiency; the calculation of net revenues; and the application of the minimum offer price rule (MOPR).

The Monitor also acknowledged that its call for using the lower of the cost- or price‐based offer in the calculation of net revenues was rejected by FERC in June (EL14-94-001, ER16-1291). (See “FERC Won’t Revisit Cost-Based Energy Offer Cap Ruling,” PJM News Briefs from FERC Open Meeting.)

But he said the FERC-approved approach used in the May auction, which always uses the cost‐based offer, “resulted in an increase of [$43.4 million], or 0.6%, in the cost of capacity in the 2019/20 BRA.”

In addition, the Monitor recommended:

All costs incurred as a result of a pseudo-tied generator be borne by the unit and included in its capacity market offers.
The “electrical proximity” of pseudo-tied resources be “explicitly accounted for” when defining how external resources should be treated during performance assessment hours.
Enforcing “a consistent definition” of capacity resource as a physical resource at the time of the auctions — with a commitment to be physical in the delivery year and moving all DR to the demand side of the market. The Monitor referenced its 2013 report on replacement capacity, in which it warned that “speculative” DR can suppress prices in the BRA and displace physical generation: “Under the current application of the rules, DR providers may not have identified customers, may not have clear plans for implementing DR measures and may not receive commitments from new customers until relatively close to the delivery year and well after the RPM BRA is run for that delivery year. This is not consistent with the rules.”
Ensuring the net revenue calculation used to establish the net cost of new entry “reflect the actual flexibility of units in responding to price signals rather than using assumed fixed operating blocks that are not a result of actual unit limitations.” Reflecting actual flexibility will result in higher net revenues, which affect the demand curve and market outcomes, the Monitor said.
Eliminating the rule requiring that small proposed increases in the capability of a generator be treated as planned for purposes of mitigation and exempted from offer capping.
Changing the MOPR review to require all projects use the same modeling assumptions. “That is the only way to ensure that projects compete on the basis of actual costs rather than on the basis of modeling assumptions,” the Monitor said.
Extending the MOPR to existing units in addition to new units.
Re-evaluating the market mitigation exemption granted DR and energy efficiency resources in 2009. “In 2009, there was one product defined for capacity, and there were no resource constraints defined,” the Monitor said. “Particularly in [locational deliverability areas] with few suppliers, there is now the potential for DR and EE providers to exercise market power and affect the clearing price.”
Changing the RPM solution methodology to explicitly incorporate the cost of make-whole payments in the objective function.
Removing energy efficiency resources from the supply side of the capacity market to reflect the change in PJM’s load forecasts. (See Changes to PJM Load Forecast Cuts Benchmark Peaks.) “If EE is not included on the supply side, there is no reason to have an add-back mechanism,” the Monitor said. “If EE remains on the supply side, the implementation of the EE add-back mechanism should be modified to ensure that market clearing prices are not affected.”

September 5, 2016

FERC Rejects Capacity Release Exemption for NE Gas Generators

By William Opalka

FERC on Wednesday rejected Algonquin Gas Transmission’s request to exempt gas-fired generators from competitive bidding under capacity release rules, another blow to those seeking to increase New England’s gas infrastructure (RP16-618).

Maine PUC, pipeline contracts, ferc, natural gas, Algonquin Gas Transmission, capacity release exemption — *Photo credit: Steve Oehlenschlager*

The proposal to amend Algonquin’s tariff was an offshoot of the company’s proposed Access Northeast pipeline. Electric distribution companies Eversource Energy and National Grid — which are partnering with Algonquin on the pipeline — sought the exemption to ensure the capacity they purchased would be used to fuel gas-fired generators.

The EDCs hoped to release capacity to gas generators as prearranged “replacement” shippers. FERC rules allow such preferences as long as the replacement shipper matches the highest bid submitted by any other bidder. The proposal would have limited that bidding to gas-fired generators, excluding those who might value the fuel more for winter heating.

FERC held a technical conference on the matter in the spring. (See Utilities Seek OK for Gas Releases to Generators at Technical Conference.)

The proposal was opposed by numerous merchant generators, including NextEra Energy, Exelon and Calpine, which said they had found cheaper alternatives to ensure fuel supplies under ISO-NE’s Pay-for-Performance capacity incentives, including installation of dual-fuel capacity and contracts with natural gas marketers and LNG suppliers.

“Merchant generators are not asking you for this capacity, and you need to ask yourself why,” Calpine told FERC. The company estimated firm capacity would cost it $25 million annually, or half a billion dollars over a 20-year commitment. It said it could guarantee the same level of service by investing $50 million in a fuel oil tank.

Other opponents argued that the proposal was premature because no state had approved a state-regulated electric reliability program.

“Neither Eversource nor National Grid provided a persuasive explanation for why the ability to release capacity to a prearranged replacement shipper under our existing regulations is not sufficient to meet their needs,” FERC ruled. “Moreover, neither party sufficiently explained why a generator that needed the capacity to obtain the natural gas supplies necessary to generate electricity during a period when Algonquin’s capacity is constrained would not match a higher bid.”

However, the commission said its ruling was “without prejudice to Algonquin developing other more targeted, justified proposals for consideration.”

The commission also granted Algonquin’s request to exempt from bidding an EDC’s capacity release to third parties managing capacity on an EDC’s behalf.

“By permitting capacity holders to use third-party experts to manage their natural gas supply arrangements and their pipeline capacity, [asset management arrangements] provide for lower gas supply costs and more efficient use of the pipeline grid,” the commission said. A compliance filing on this proposal is due in 30 days.

Access Northeast suffered a setback in August when the Massachusetts Supreme Judicial Court overruled state regulators’ order to allow construction costs be assessed to electricity ratepayers. Soon after the ruling, the EDCs withdrew their proposed contracts that were pending before the Massachusetts Department of Public Utilities. (See Eversource, National Grid Withdraw Requests to Bill for Pipeline.)

Access Northeast Complaint Dismissed

In a related case, FERC dismissed a complaint filed by electric generators seeking to block EDC contracts with pipeline owners as premature (EL16-93).

Public Service Enterprise Group and NextEra said the contracts would render the power markets discriminatory and suppress power prices. (See Generation Owners Seek to Block EDC-Pipeline Deals.)

“The circumstances giving rise to the complaint are in a state of flux and the commission does not have before it the concrete facts necessary to determine whether the tariff will be unjust and unreasonable. Several critical project elements of the individual states’ electric reliability programs are undetermined at this time,” FERC wrote.

The commission cited the Massachusetts court ruling, its concurrent order on capacity releases and its pending ruling on Access Northeast, which is expected in the fourth quarter.

September 5, 2016

EIM Governing Body Convenes First Meeting, Selects Leadership

By Robert Mullin

The newly established Western Energy Imbalance Market (EIM) governing body kicked off its first meeting last week by electing its leadership.

CAISO’s Board of Governors appointed the five-member body in June, selecting one each from five industry sectors: EIM entities, ISO-participating transmission owners, power suppliers and marketers, publicly owned utilities and state regulators. (See CAISO Board Appoints Western Energy Imbalance Market Governing Body.)

Kristine Schmidt, president of Dallas-based Swan Consulting, was selected to serve as the body’s chair. A former vice president at ITC Holdings and director at Xcel Energy, Schmidt has more than 30 years’ experience in the energy sector. She also worked as an adviser to former FERC Commissioner Nora Brownell.

Howe and Schmidt - Energy imbalance market (eim) leader meeting — The EIM Governing Body selected Kristine Schmidt and Doug Howe as its chair and vice-chair, respectively.

Doug Howe, an independent consultant and Ph.D. in mathematics, was chosen as vice chair. Howe has authored or co-authored more than 30 papers and presentations covering industry topics such as energy efficiency in the European Union and utility regulation in the U.K. He previously held an executive position with GPU Inc., which was acquired by FirstEnergy in 2001.

Carl Linvill, a member of the governing body, praised Schmidt for her “equanimity” and also expressed support for the wider Western regional representation that Howe — a New Mexico resident and former state regulator — will provide.

“We still have a lot to figure out and learn,” Linvill said. “Figuring out how to establish a regional presence really is emboldened and enabled by these two positions.”

“On behalf of the ISO, we want to give you our immense thanks for being willing to serve on this body,” CAISO CEO Steve Berberich said. “We consider the EIM as a critical attribute and will continue to support it for as long as necessary.”

A decade ago, Schmidt noted, nobody in the industry would’ve believed the region would have an EIM.

“We’re now seeing a regional market take shape in the West,” Schmidt said. “We’re hitting the ground running.”

Stakeholder Coordination

The governing body’s inaugural meeting included a set of briefings by EIM stakeholders and ISO staff to acquaint members with key structures affecting the market.

“There’s a lot of interest in what you’ll be doing,” said Tony Braun, an industry consultant who chairs the Regional Issues Forum, a loosely structured stakeholder group created by CAISO to foster broad regional discussion about EIM-related issues.

While the forum’s role “has not been concretely laid out,” the group’s first two meetings have been well attended, indicating a high level of interest in the EIM’s activities, Braun said.

The two most significant issues for forum participants: the bidding of external resources at the EIM’s interties and the impact of California’s greenhouse gas regulations on the market. (See related story, CAISO Kicks off Effort to Track GHGs Under Regionalization.)

Braun proposed that future meetings of the forum be coordinated with those of the EIM’s governing body and its state regulators’ group to improve collaboration and reduce participants’ travel for meetings.

“We’d love to hear how we can shape our processes to help you do your jobs,” Braun said.

Governing body members expressed appreciation for the work of the forum.

“The stakeholder-driven nature of the [forum] is probably something that is both difficult and necessary,” said governing body member Valerie Fong. “I found that the way [the meetings are] being run is very open.”

Schmidt called the meetings “extremely helpful.”

“We’re trying to do everything we can do to mitigate some of the travel issues,” she added.

Regulatory Collaboration

Ann Rendahl, chair of the EIM’s body of state regulators, sketched out the role of her group for the new governing body.

“Our purpose is to ensure that state regulators that aren’t involved in this market understand what is going on in EIM,” said Rendahl, a member of the Washington Utilities and Transportation Commission.

The group provides a forum for regulators to learn about EIM and CAISO developments that might be relevant to their jurisdictional responsibilities. While it can take a common position in CAISO and EIM stakeholder processes, individual regulatory commissions are not restricted from taking any position before FERC or the ISO board on EIM-related matters.

The regulators’ group is also charged with monitoring EIM governing body action items and selecting a voting member for the body’s nominating committee.

Rendahl emphasized the need for her group to closely coordinate its activities with that of the governing body. “We want to not just monitor, but work with the governing body,” she said.

ISO Process Basics

Governing body members received a briefing about CAISO’s stakeholder process from Brad Cooper, ISO manager of market design and regulatory policy.

Cooper explained the stakeholder process the ISO uses each fall to develop a “roadmap” of planned policy developments, including EIM initiatives. The ISO last year drew from a catalog of 49 potential initiatives, selecting only 10 because of staff constraints.

“We can’t develop everything in the catalog,” Cooper said.

A final roadmap is presented to the CAISO board — and, in the future, the EIM governing body — at the beginning of each year. The ISO informs stakeholders of any changes to the roadmap through its Market Performance and Planning Forum.

“The roadmap isn’t set in stone,” Cooper said. “For instance, we had the Aliso Canyon issue come up” earlier this year, forcing a modification of the roadmap. (See CAISO Seeks Rapid Response to SoCal Gas Restrictions.)

When developing the roadmap, ISO staff divide initiatives into four categories, including initiatives already in progress, policy changes mandated by FERC, non-discretionary efforts related to reliability or market efficiency, and discretionary initiatives.

For the last category, ISO staff and stakeholders together prioritize potential initiatives according to benefits and feasibility.

“If something could provide great benefits and is relatively trivial to do, that would get priority,” Cooper said.

Cooper acknowledged that CAISO’s policy process is driven more by staff than by stakeholders — and said the ISO prefers it that way.

“We realize that we made a commitment to look at other [stakeholder] processes [to implement under] regionalization, but we think our stakeholder process really allows us to quickly evolve policies,” Cooper said, adding that he didn’t think a project such as the EIM could’ve been developed under a stakeholder-led model.

“The ISO really tries to take a balanced view of our proposed policy,” Cooper said, contending that the ISO’s process does not factor in specific stakeholder interests, avoids “contentious voting structures,” and prevents bias or brokered policy decisions — allowing the ISO to focus on grid reliability.

Still, Cooper emphasized that “stakeholders are involved every step of the way,” including through “working group” meetings that focus on specific initiatives.

“We have a lot of open interaction that may not be possible with more formal stakeholder processes,” Cooper said. “This allows us to really interact with our stakeholders and get their input.”

September 5, 2016January 3, 2024

Company Briefs

The owner of the 40-MW White Pine coal-fired power plant in Michigan’s Upper Peninsula blasted MISO after receiving a 90-day notice that the grid operator will terminate its $7.3 million annual system support resource agreement with the 60-year-old plant on Nov. 26.

White Pine Electric Power, a subsidiary of Traxys North America, said the decision jeopardizes reliability until 2020, when 170 MW of new natural gas-fired plants will come online. “This is a short-sighted decision by MISO that they claim is about utility rates,” said White Pine board Chairman Brent Zettl.

The utility claims that the study MISO used to make its decision did not properly evaluate emergency scenarios, arguing that the plant provides a failsafe against unplanned outages.

More: White Pine Electric Power

Duke Adds Former Nuke Exec to Board

William E. Webster Jr., former executive vice president for industry strategy at the Institute of Nuclear Power Operations, joined Duke Energy’s board of directors eﬀective Sept. 1.

Webster retired from INPO on June 30, ending a career there that began in 1982. While at INPO, he also served in “on‑loan” leadership positions with FPL Group and Arizona Public Service’s Palo Verde Nuclear Generating Station.

He received his senior reactor operator certiﬁcation at Duke’s Brunswick nuclear plant and has a bachelor’s degree in civil engineering from Villanova University.

More: Duke Energy

Xcel Adds Another Wind Farm to Portfolio

The 200-MW Odell Wind Farm began generating power in southwestern Minnesota last week under a 20-year power purchase agreement with Xcel Energy, its fourth wind facility in the Upper Midwest.

Owned and operated by Canadian company Algonquin Power & Utilities, Odell consists of more than 100 turbines erected in four counties.

Xcel gets 14% of its power from wind sources in the Upper Midwest and predicts the share will rise to 22% in 2020. Xcel’s ultimate goal is 42% from wind.

More: Star Tribune; La Crosse Tribune

Former NYPA CEO Joins NYISO Board

NYISO has named former energy executive Roger B. Kelley to its Board of Directors, effective this month. He replaces Vikki L. Pryor, whose term expired in April.

Kelley has more than 40 years of experience in the electric generation and transmission business. He previously served as CEO of Peregrine Midstream Partners in Houston. He was also CEO of Midland Cogeneration Venture in Midland, Mich.; CEO of Fortistar Renewables, based in White Plains, N.Y.; and CEO of the New York Power Authority.

“Roger has extensive experience in the energy industry, including as president and CEO of the New York Power Authority,” said Michael Bemis, NYISO’s board chair. “We appreciate his willingness to serve as a director. I’m confident we will benefit from his judgment and counsel.”

More: NYISO

Tesla-SolarCity Filing Reveals Cash-Strapped Companies

Prior to agreeing to a merger with Tesla, SolarCity considered selling its Buffalo solar panel manufacturing plant, which is scheduled for completion next June with $750 million in state assistance, according to a filing with the U.S. Securities and Exchange Commission.

SolarCity eventually decided a sale of the plant, a centerpiece of Gov. Andrew Cuomo’s Buffalo Billion economic development program, would not provide an adequate return for company shareholders. But the filing reveals how strapped for cash SolarCity is, even as it considered being acquired for $2.4 billion. The company’s operations rely heavily on a business model that allows customers to install rooftop solar with no upfront costs, forcing it to constantly raise money from investors.

The filing also reveals at least three other firms declined to acquire SolarCity before it accepted the offer from Tesla, which is facing a cash crunch itself. The company will have to pay $422 million to bond holders in the third quarter. Tesla’s debt-to-equity ratio was 145.5% as of June 30; SolarCity’s was 375.6%.

More: The Buffalo News; The Wall Street Journal

Developer Wants to Double Up Indiana Plant

Development Partners, which is building a $500 million, 700-MW natural gas plant in northern Indiana, has asked MISO to allow it to double the size and the cost of the plant.

The White Plains, N.Y., company wants permission to add two more turbines to the St. Joseph Energy Center near the Michigan border. The first phase of the project is scheduled to be completed in 2018.

After Development Partners gets interconnection approval from MISO, which it hopes to earn by the end of the year, the developer would work with local officials to approve a site plan.

More: South Bend Tribune

Enbridge Puts Minnesota Pipeline Project on Hold

Enbridge Energy Partners, which recently invested $1.5 billion into a rival oil-pipeline project, has put its proposed Sandpiper Pipeline in Minnesota on hold, saying current demand for crude oil no longer supports the need for the project.

Sandpiper, which was initiated three years ago, aimed to carry up to 225,000 barrels of oil from North Dakota through Minnesota and then on to Superior, Wis. The proposal faced heated opposition from Native American tribes and environmental groups who objected to the proposed path, which would have crossed numerous lakes and rivers.

Enbridge stopped short of saying the project was dead, but it did say the five-year projection of production in North Dakota’s Bakken region doesn’t forecast the need for more pipeline capacity. The decision comes just after its recent $1.5 billion investment in the Bakken pipeline system, which includes the Dakota Access project.

More: MPR News

Oregon Coal Plant to Run Full Biomass Test

Portland General Electric is exploring the possibility of converting its coal-fired Boardman power plant in eastern Oregon to biomass.

The utility plans to run the 550-MW facility on woody biomass for one full day this year as an experiment, following a successful test last year using a 10-to-1 mixture of coal and biomass. The process will entail pulverizing wood debris into the substance before feeding it into the plant’s boiler.

Boardman is slated for closure in 2020, but the use of biomass could extend the life of the plant. Success of the project will hinge on plant conversion costs and securing a steady supply of fuel.

More: East Oregonian

Southern Co., Kinder Morgan Close Deal on Pipeline System

Southern Co. has acquired 50% of Kinder Morgan’s Southern Natural Gas pipeline system, the companies announced. The 7,000-mile system runs from wells in Texas, Louisiana, Mississippi and Alabama to markets in the southeast. Terms of the acquisition were not announced. Kinder Morgan will continue to operate the pipeline system.

Southern CEO Thomas A. Fanning hinted at other deals possibly in the works. “With our new ownership stake in Southern Natural Gas, we look forward to working with Kinder Morgan to explore future opportunities to deliver natural gas to customers,” he said.

More: Southern Co. and Kinder Morgan

Talen Notifies NRC it is Canceling Nuclear Plant

Talen Energy withdrew its request for an operating license from the Nuclear Regulatory Commission for the proposed Bell Bend nuclear station in Berwick, Pa., saying that the reactor design company’s decision to suspend its certification process left it no choice.

The Allentown, Pa., company said that it had posted a $122 million loss associated with the project when it released its second-quarter results and that it would stop attempts to get a license for the plant. The reactor design company, Areva, asked NRC in 2015 to stop its design certification process. A Talen spokesman said seeking another design company wasn’t feasible.

Talen said the decision was not related to is pending merger with Riverstone Holdings.

More: The Morning Call

GE Joins MIT Energy Initiative

General Electric is joining an energy research program at the Massachusetts Institute of Technology that aims to cut carbon emissions.

GE is contributing $7.5 million to the MIT Energy Initiative for research, particularly in solar power, energy storage, advanced power grids and carbon sequestration, company officials said.

“This partnership really is about advancing the state of the art in low-carbon technologies,” said Steve Bolze, chief executive of the $29 billion GE Power division.

More: The Boston Globe

EnerNOC Wins BQDM Contract from Con Ed

EnerNOC has been awarded a multi-million-dollar contract by Consolidated Edison for the Brooklyn-Queens Demand Management program, part of New York’s Reforming the Energy Vision initiative. The program’s aim is to reduce demand in certain areas of New York City, delaying or eliminating the need for a $1.2 billion substation.

The BQDM project has been described as the largest modern “non-wires” alternative program in the U.S. relying on the use of energy efficiency and demand-side management in lieu of traditional generation and distribution infrastructure.

More: EnerNOC

Duke, Solar Devs Reach Interconnection Agreement

Duke Energy and 33 solar developers reached an agreement that will allow many solar generation projects to go forward and interconnect with the utility’s grid.

Earlier this summer, Duke announced that so many solar projects are seeking interconnection with their grid that it might cause problems and was going to require each new project to undergo a technical review. The new agreement allows the projects to connect while preserving Duke’s right to disconnect if problems arise. There are 3,300 MW of solar projects in various stages of planning and construction in North Carolina.

“In some areas of our system, we’re reaching a saturation point with solar, and in some places it is ill-placed,” a Duke spokesman said. The intermittent nature of the generation could cause problems with some of the lower-voltage circuits, the company says.

More: The Charlotte Observer

August 29, 2016

State Briefs

Riverside County Looks to Create Power Supplier

Riverside County officials are advancing a plan to create an alternative retail electricity supplier that would supplant Southern California Edison in unincorporated areas of the county. The officials say that the community choice aggregator, which would purchase power directly from producers, would allow county residents to lower their costs and increase reliance on renewables.

The county plans to engage a third-party consultant to develop and run the program, which would require approval from the state’s Public Utilities Commission. Residents and businesses will be automatically enrolled in the program but could opt out and continue using SCE if they choose. Incorporated communities would have the option to join up after the program is implemented.

Community choice aggregators are authorized under a 2002 state law. Though only four have been formed, renewable advocates are promoting them as a mechanism to allow communities to have more control over the source of their electrical power.

More: The Desert Sun

INDIANA

Regulators Approve 2% Hike to Help Duke Plant

Regulators have approved a 2% rate hike for Duke Energy customers to help the company pay for its beleaguered Edwardsport coal-gasification plant.

Under a settlement, Duke will pay $87.5 million of deferred operating costs dating from when the plant went into service in 2013. The plant’s price tag has climbed to $3.5 billion from its original estimate of $1.9 billion.

The settlement was supported by the state Office of Utility Consumer Counselor, along with industrial customers, environmentalists and consumer advocates. It would result in an additional $1.83/month for the typical residential customer. The company has absorbed about $900 million in construction overruns on the plant.

More: The Associated Press

IOWA

IUB Denies Permanent Stay to Dakota Access Construction

The Utilities Board unanimously denied landowners’ request for a permanent stay of construction of the Dakota Access pipeline pending a court ruling on whether eminent domain can be used to access their properties.

The board heard about 45 minutes of testimony before deliberating in closed session. When it returned to open session, Chair Geri Huser said the board found that the potential harm of a permanent stay outweighed the potential benefits, as it found little chance of success in the petitioners’ complaint before the Polk County District Court.

The landowners had requested an emergency session of the board to hear their request. But Huser said “any apparent emergency that may exist was created by the petitioners’ own actions and their own decisions.” The board did extend a temporary stay currently in place until 9 a.m. Monday to give the landowners time to file an appeal in court. Commissioner Nick Wagner voted against the extension.

More: Radio Iowa

MARYLAND

PSC Holding Hearings on PEPCO Rate Hike

The Public Service Commission has scheduled two public hearings to discuss PEPCO’s request to increase its electric distribution rate by $104 million for 560,000 customers in Prince George’s and Montgomery counties. A typical residential customer would pay $13 more a month under the proposed rate. (Case No. 9418)

Hearings will be Sept. 6 at the Montgomery County Executive Building in Rockville, Md., and Sept. 8 at Prince George’s Community College in Largo, Md.

More: Maryland Public Service Commission

NRG Settles Wastewater Pollution Suit with State

NRG Energy will pay $1 million to settle a lawsuit alleging two coal-fired plants illegally released high levels of nitrogen in wastewater.

The state filed suit in 2013 alleging NRG’s Chalk Point and Dickerson stations discharged illegal amounts of nitrogen and phosphorus into the Potomac and Patuxent rivers. The chemicals have been blamed for feeding algae that suck oxygen out of the Chesapeake Bay, creating dead zones for fish, crabs and vegetation.

In some years, the state said, the Chalk Point plant released 20 times as much nitrogen as its permit allowed. NRG will also pay $1 million to fund environmental restoration projects and invest $10 million to upgrade the wastewater systems at the two plants.

More: The Washington Post

MICHIGAN

State Energy Committee Hears Reliability Concerns

Public Service Commission Chair Sally Talberg told the Senate Energy Committee last week that the state would go “dark” in 10 years if policymakers did not address an impending electricity shortage.

The committee discussed the PSC’s recent five-year outlook, which predicts reliability challenges during peak demand in the Lower Peninsula, although it forecasts the state will meet minimum reliability standards through imports for the foreseeable future.

State Sen. Mike Shirkey (R) downplayed the report, telling reporters it could be “ripe with people cherry picking pieces of information and then reframing them to advance their narrative.”

More: The Detroit News

MONTANA

Residents Asked to Conserve Water to Help Colstrip Plant

Colstrip residents were asked to limit their water use so the nearby power plant can continue to safely operate. The notice came at the request of Talen Energy, which operates the 2,100-MW plant.

Colstrip Mayor John Williams asked the city’s 2,300 residents to minimize their use of water for sprinkling and irrigation through the end of August. Williams said low water levels and high temperatures have caused problems with Talen’s water intake system on the Yellowstone River.

More: Billings Gazette

NEBRASKA

Lincoln Electric Plans to Show Off New Solar Farm in September

Lincoln Electric System will dedicate the state’s first commercial solar energy park next month and commemorate the event with tours for customers who helped finance the project.

The utility’s SunShares program allows about 1,200 enrolled customers to pay extra on their monthly bills to support solar energy.

The 5-MW, $8.9 million community solar project is owned by developer Enerparc. LES has a 20-year contract to buy power from the company. Construction began in March, and it went online in late June, producing enough electricity to power about 900 homes.

More: Lincoln Journal Star

NEW JERSEY

Rate Counsel Against JCP&L Tx Spin-off Plan

The Division of Rate Counsel said it will argue against FirstEnergy’s plan to spin off Jersey Central Power & Light’s transmission facilities into a new company to be called Mid-Atlantic Interstate Transmission. The assets include about 2,500 miles of transmission lines and towers.

“We believe that ratepayers are getting the short end of the stick because MAIT is getting these at a very, very favorable price,” said Stefanie Brand, the division’s director.

More: Asbury Park Press

NEW MEXICO

Regulators Reopen PNM Rate Case, Face Criticism

The Public Regulation Commission is being criticized for its decision last week to reopen hearings for Public Service Company of New Mexico (PNM)’s proposed rate increase. Commissioners said that the case could be extended through December if the utility decides to submit more evidence showing that its energy investments are prudent.

Reopening the proceedings, which began in April, would undermine a determination earlier this month by hearing officer Carolyn Glick, who recommended a 6% increase rather than the 15.8% increase PNM is seeking to cover some $123.5 million in costs. The company has threatened to go to court if the lower increase is approved.

Intervenors said Aug. 25 that the PRC’s decision gives the company too much leeway. If the case is reopened, it would be PNM’s third opportunity this year to provide proof that its investments are fair for ratepayers.

More: The Santa Fe New Mexican

NEW YORK

Entergy Would Get Termination Fee if FitzPatrick Sale Fizzles

The New York Power Authority will pay Entergy a $35 million termination fee if the sale of the FitzPatrick nuclear plant to Exelon falls through.

According to spokesman Steven Gosset, NYPA established a $35 million letter of credit that will pay Entergy if the PSC does not approve the sale to Exelon by Nov. 18. Entergy also would get the money if the New York State Energy Research and Development Authority fails to sign a contract by Nov. 18 that guarantees nuclear subsidies for FitzPatrick.

Both of those scenarios, and others that would trigger the fee, are unlikely, said Gosset, who declined to provide a copy of the letter. Entergy also declined to comment on the agreement.

More: syracuse.com

NORTH DAKOTA

University, Energy Companies Partner in Carbon-Capture Efforts

A diverse group of energy businesses are partnering with the University of North Dakota to develop carbon capture and sequestration technology.

ALLETE Clean Energy, Minnkota Power Cooperative and BNI Energy signed a memorandum of understanding with the university’s Energy and Environmental Research Center to submit a bid to the U.S. Department of Energy for a proposal they call Project Tundra, which aims to devise a way to reduce carbon dioxide emissions from existing coal-fired plants.

U.S. Sen. John Hoeven (R) said he had worked to secure $30 million to assist in the development of commercially viable and retrofittable CCS technology. The bill has passed in the Senate and now awaits House approval, Hoeven said.

More: Forum News Service

OHIO

AEP Asks PUCO for Distribution Hike to Counter Residential Solar

aep American Electric Power has asked the Public Utilities Commission for permission to increase the fixed monthly distribution charges for all of its customers to make up for the number of residential customers who are installing rooftop solar and energy efficient technology.

AEP Ohio says it has seen the number of solar net metering customers rise from 286 in 2011 to 983. AEP is asking to increase the average customer charge from $8.40 to $18.40.

“This increase in net metering customers is currently resulting in a shift of the recovery of fixed costs from net metering customers to non-net metering customers,” company spokeswoman Terri Flora said. The hike wouldn’t result in any more revenue for the company, Flora said, but opponents say the increase would discourage installing solar distributed resources.

More: Midwest Energy News

OKLAHOMA

Regulators Hear Arguments On PSO’s $130M Rate Case

The Corporation Commission last week heard arguments in the long delayed matter over Public Service Company of Oklahoma (PSO)’s requested $130 million electric rate increase. Consumer advocates argue that existing rates should be cut by up to $7 million, and an administrative law judge recommended a nominal rate increase of $676,000.

PSO filed the rate case in July 2015, and the company implemented an interim $75 million rate increase in January after it did not receive a final decision within the required six-month time period. The interim rate increase is subject to refund if the commission finds the utility wasn’t entitled to the extra revenue.

The company said the rate increase was needed to recover $453 million in system investments from February 2014 to July 2015. The utility also spent another $215 million this year on plant upgrades to meet federal environmental regulations.

More: The Oklahoman

SOUTH DAKOTA

PUC Gathering Input on Proposed 201-MW Wind Farm

About 300 people attended a public meeting held by the Public Utilities Commission to gather comments on a proposed wind farm north of Avon.

The 201-MW wind farm, proposed by developer Prevailing Winds, would have 100 turbines generating up to 860 GWh annually. Company representatives gave a presentation about the project and argued for the need for more wind power.

The project has generated opposition from some neighboring landowners. Some see the turbines as “eyesores,” while the others said they were concerned about potential health effects.

More: Yankton Daily Press & Dakotan

TEXAS

Lawmakers Urged to End Coal Company Self-Bonding

Environmental advocates at a Sunset Advisory Commission hearing on the Railroad Commission urged state lawmakers to require coal companies to set aside resources to cover the cost of cleaning up mines. Coal companies are currently allowed to self-bond, a process that could leave residents on the hook for more than $250 million in environmental cleanup costs if the companies renege on their obligations.

The state currently allows four coal mining companies to self-insure the cost of cleaning up seven strip mine operations. With the coal industry’s financial challenges, experts say taxpayers are at risk.

The Sunset Commission, which assesses the continued need for state agencies, held the hearing to get feedback on a scathing report published in April by its staff advisory committee on the inefficiencies and inadequacies of the Railroad Commission, which, despite its name, regulates energy extraction industries in the state.

More: The Texas Observer

WEST VIRGINIA

FirstEnergy Asking for $6.9 Million Surcharge

FirstEnergy asked state regulators to approve a $6.9 million rate surcharge for MonPower and Potomac Edison customers to pay for upgrades at two coal-fired plants.

The requests were made possible by a coal-industry supported bill approved five months ago, which allowed utilities to pass through costs for upgrading their coal-fired plants without having to go through a formal rate proceeding. At the time the bill was introduced, FirstEnergy said it didn’t have any plans to use the provision.

The total cost of the upgrades at the Harrison and Fort Martin plants will be more than $76 million, according to company filings. The surcharges, if approved, will increase a typical residential customer’s rates about $6.60 per year.

More: Charleston Gazette-Mail

August 29, 2016

SPP Briefs

SPP’s Market Monitoring Unit filed its 2015 State of the Market report with FERC on Friday, saying the Integrated Marketplace’s second year of operation showed “significant maturing,” illustrated by high participation, “lower levels of make-whole payments and mitigation compared to other markets, and a modest level of scarcity pricing.”

The MMU’s report noted the market was affected by low natural gas prices, increasing wind generation and an expanding footprint. The RTO’s territory grew about 10% in both generation and load with the October addition of the Integrated System, which covers the Dakotas and parts of several other Upper Midwestern states.

According to the report, average monthly natural gas prices were “generally flat” at about $2.50/MMBtu through September, declining to below $2/MMBtu in December. The energy market’s average all-in price was $23.48/MWh.

The MMU said the amount of wind energy continues to increase and represented almost 20% of total SPP generation in November and December. Although congestion declined systemwide, it increased in areas with wind generation.

Coal generation, on the other hand, has declined from a historical average of 60 to 65% to an average of 55% in 2015. In November, coal represented only 45% of SPP’s total generation, according to the report.

SPP ended the year with 12,398 MW of installed wind capacity, a 44% increase from the 8,606 MW in 2014. The MMU said actual generation resulting from new capacity does not show up in the market for several months after registration, and the full impact of the nearly 4,000 MW in new wind capacity will not be felt until 2016.

“Initial results from 2016 indicate that at times generation is approaching 50% of total load,” the MMU said, a “substantial increase” from the 34% average in 2015. SPP’s current wind penetration record is 48.32%, set April 5.

The MMU said the market saw a 156-MW increase in installed generation capacity to 67,251 MW. Along with a slightly lower system peak load compared to 2014, that resulted in a small increase in the market resource margin, from 48% in 2014 to 49%.

“Given the large resource margin and the frequency with which the LMP represents inexpensive generation,” the report said, “prices generally did not rise to levels high enough to support investment in new generating capacity.”

The MMU presented a draft version of the report during the July Board of Directors meeting. (See “MMU Shares Draft State of the Market Report,” SPP Board of Directors and Members Committee Briefs.)

Fitch Affirms SPP’s Long-Term Debt at A, Gives Stable Rating

Fitch Ratings on Friday affirmed SPP’s long-term issuer default rating (IDR) at “A” and gave the RTO a “stable” rating outlook. Fitch also affirmed SPP’s short-term IDR at “F1” and noted the actions affected approximately $268 million in debt.

The agency cited as positives the $66 million in debt maturities being repaid with available cash through 2018 and the $71 million in capital expenditures through 2018, a 19% decrease compared to the prior three years.

Fitch also noted SPP’s projection that the addition of the Integrated System will produce $334.1 million in savings over 10 years.

It said the RTO’s voluntary membership “is a modest credit concern” but that the departure risk “is mitigated by the requirement that the exiting member pay a fee equal to its share of SPP’s outstanding debt and other committed expenses as an ‘exit charge.’”

SPP RE Sets Week of Meetings in Oklahoma City

The SPP Regional Entity has room for either in-person or webinar attendance for its fall workshop Sept. 20-21 in Oklahoma City. The workshop is sandwiched between a Regional Compliance Working Group meeting Sept. 19 and an RTO compliance forum Sept. 21-22. All meetings will be held at the Skirvin Hilton Hotel.

– Tom Kleckner

August 29, 2016

Company Briefs

DTE Energy says a glitch in its computers caused customers to be charged multiple times in late August.

One ratepayer said she was charged eight extra times for the same $135 bill, and $1,215 was automatically withdrawn from her account.

DTE said customers who made payments on Friday, Aug. 19, or Monday, Aug. 22, could be affected.

More: WDIV

Dominion Virginia Power Proposing $53M Tx Project

Dominion Virginia Power has applied with the Virginia State Corporation Commission to replace the existing 500-kV Carson-Rogers Road Line in Greensville County. The project, if approved, would cost about $52.9 million and be completed in December 2018.

The company says the project will ensure it meets mandatory NERC and PJM reliability standards. The existing line went into service in 1972 and is nearing the end of its service life.

More: Electric Light & Power

Westar, Great Plains Shareholders To Vote on Merger in September

Great Plains Energy and Westar Energy shareholders will vote on Great Plains’ proposed $12.2 billion acquisition of Westar in separate but concurrent special shareholder meetings Sept. 26. The deal would pay Westar shareholders $51/share plus $9/share in Great Plains stock.

Westar will hold its meeting at the Kansas Expocentre in Topeka, while Great Plains will host shareholders at its Kansas City office. Shareholders as of the close of business on Aug. 22 are entitled to vote. The companies expect most individual shareholders to mail their votes.

The two companies filed a proxy statement Aug. 25 detailing the transaction, which must be approved by stockholders and multiple regulatory agencies. They expect the deal to close next spring.

More: The Topeka Capital-Journal

PSO Names 40-Year Veteran As VP of Generation Group

pso Public Service Company of Oklahoma last week named Tommy Slater as vice president of the company’s generating assets. Slater, currently a plant manager at sister company Southwestern Electric Power Co.’s Welsh Plant in Texas, replaces Gary Knight, who is retiring after 35 years with PSO.

Prior to his 2010 appointment as manager at Welsh, Slater worked as a start-up engineer, plant shift supervisor and manager for SWEPCO’s regional engineering organization.

Slater has a bachelor’s degree in mechanical engineering from the University of Texas at Arlington and is a registered professional engineer in Texas.

More: Public Service Company of Oklahoma

Judge OKs 1st Phase of EFH Bankruptcy Plan

A Delaware bankruptcy judge approved the Chapter 11 plan of Luminant and TXU Energy, the two main operating businesses of Energy Future Holdings.

“I believe at the end of the day, this is the best possible deal,” Judge Christopher Sontchi said Friday. The plan will launch a new company containing Luminant and TXU Energy. It will be taken over by senior lenders, including affiliates of Apollo Global Management, Brookfield Asset Management and Oaktree Capital Management.

Phase two of EFH’s bankruptcy, valued at $42 billion, involves the sale of the company’s 80% stake in Oncor to NextEra Energy.

More: The Wall Street Journal