State Briefs

Reports: Solar Jobs Increased in 2015

The Solar Foundation, a D.C. solar power advocacy nonprofit, has released its annual Solar Jobs Census for 2015. The report details the number of people working in the solar industry in each state. Overall, the workforce experienced rapid growth over the past year, increasing by 20.2% and at 12 times the overall U.S. economy, according to the report. And the organization expects it to continue to grow.

California has the nation’s largest solar workforce by far, with 75,598 workers. The runner up is Massachusetts, with 15,095. New York, New Jersey and Texas ranked in the top 10.

The organization also projected how much the solar workforce in each state would grow in 2016. Missouri (21.4%), Minnesota (20.5%), Ohio (20.2%) and Pennsylvania (19.9%) all ranked in the top 10. The only state in the country that is projected to lose jobs in the industry is Louisiana (-2.6%).

More: The Solar Foundation

INDIANA

Fixed-Rate Charge Increase Battle Heads to IURC

Northern Indiana Public Service Co.’s requested 82% increase in its monthly fixed-rate charge has drawn flak from consumer advocates and solar energy supporters in the state. Clean energy advocates say the increase is a punitive measure on the state’s solar power sources, while NIPSCO says it simply wants ratepayers to fund their fair share of grid upkeep.

Along with NIPSCO’s requested jump from $11 to $20 per bill, the Utility Regulatory Commission is also currently considering allowing Indianapolis Power & Light Co. to raise its monthly fixed charge from $11 to $17.

“This conversation is getting underway in Indiana and the NIPSCO case is on top of the list because of the language they used and their stated intent that, ‘This is just the beginning folks, we’ll be back for more every few years,’” said Kerwin Olson, executive director of consumer group Citizen Actions Coalition. “It’s something we’d like to nip in the bud.”

More: Midwest Energy News

IOWA

IUB Ends Dakota Access Hearings Without Decision

The Utilities Board conducted hearings last week on the proposed $3.8 billion Dakota Access pipeline project, which would deliver crude oil from North Dakota to terminals in Illinois. Regulators in North Dakota, Illinois and South Dakota have already approved the 1,168-mile pipeline.

Much of the testimony during the four days of hearings focused on the use of eminent domain authority to acquire the pipeline’s rights of way. The pipeline’s operator, Energy Transfer Partners, still needs to sign up 265 landowners who have refused to grant an easement.

“I don’t know how you hold it all in your mind,” said Dick Lamb, 73, one of holdout landowners. “Iowa being the last state, it’s just an enormous decision. It comes down to three people weighing this $3 billion class project.”

More: Cedar Rapids Gazette

KANSAS

CURB Releases Email from Fired Consumer Counsel

The Citizens’ Utility Ratepayer Board released a controversial email that prompted it to fire Consumer Counsel Niki Christopher, who had bluntly advised the board to reverse a December decision to strip her office of authority over cases and prohibit her from talking with lawmakers and reporters about utility issues.

Christopher, an agency lawyer for 15 years, was fired Jan. 25 after she told the board that its actions would damage the agency’s standing and credibility with lawmakers and the media. The board released the email after The Wichita Eagle requested it under the Kansas Open Records Act.

CURB Chairwoman Ellen Janoski said she thought Christopher’s email made unsolicited demands and was “very disrespectful” to the board.

More: The Wichita Eagle

MASSACHUSETTS

Solar Incentives Fade Out, Put Solar Projects on Hold

Two incentives for solar generation have reached their limit for participants, putting the brakes on the incipient solar boom in the state.

“The industry’s on hold, basically,” said John DeVillars, of Boston solar developer BlueWave Capital. “Until there’s clarity on the next incentive program, very little activity will take place.”

Project developers have locked up the available 1,600 MW of solar renewable energy certificates, which compensate generators for electricity they produce. The state’s net metering program, which allows customer generators to sell their excess power to utilities at retail prices, has also reached its maximum number of participants.

More: The Boston Globe

MICHIGAN

DTE Requests $344M Rate Hike for Grid Improvements

DTE Electric is asking the Public Service Commission for a $344 million rate increase to pay for infrastructure upgrades.

If the hike is approved, average residential customers would see a 7.5% increase in their monthly bills. Commercial customers could expect a 0.4% decrease, and industrial consumers’ bills would be cut an average of 5.6%.

The commission in December agreed to allow DTE to raise its overall electric rates by 5.3%.

More: Crain’s Detroit Business

MONTANA

Ballot Initiative Calls for More Renewables

Organizers have begun seeking signatures for a ballot initiative requiring investor-owned utilities in the state to incrementally supply more renewable energy to reduce carbon emissions.

The initiative will appear on the November general election ballot if 24,175 people sign a petition. MTCARES, a nonprofit formed last fall to promote the ballot initiative, was given permission to begin gathering signatures after the ballot language was certified by the attorney general and secretary of state.

The state’s current renewable portfolio standard, enacted in 2005, requires public utilities and competitive electricity suppliers with more than 50 customers to obtain 15% of their retail electricity sales from renewable resources. The ballot measure would bump the renewable requirement to 19% by 2018, followed by increments that would total 50% by 2030 and 80% by 2050.

More: Great Falls Tribune

NEW HAMPSHIRE

Legislators Want to Intervene in Power Line Review

Four state senators and 64 state representatives want to intervene in the Northern Pass transmission project now before the state’s Site Evaluation Committee.

Senators signing the petition said they represent residents who are concerned about the project’s overhead lines and the impact on the scenic views. The $1.6 billion, 192-mile transmission line would deliver Canadian hydropower to New England.

The lawmakers maintain that the project would primarily benefit southern New England population centers while its impact “would be borne by New Hampshire communities, unless the line is buried.”

More: New Hampshire Union Leader

NEW JERSEY

Senate Passes Bill to Resurrect Fishermen’s Offshore Project

A bill aimed to breathe new life into a proposed offshore Fishermen’s Energy wind project passed the Senate by a vote of 23-11 on Thursday. Gov. Chris Christie vetoed a similar bill last year that called for approval of the 24-MW wind project.

The new bill, which still needs to pass in the lower house, calls for the Board of Public Utilities to open a 30-day window for qualified wind projects of 20 to 25 MW, and authorizes the BPU to issue renewable wind credits to offshore wind projects.

Fishermen’s has reconfigured its project to address concerns about cost and viability. It now calls for six 4-MW turbines installed 3 miles offshore. The $220 million project has already garnered $50 million in U.S. Energy Department funding.

More: ReNews

NEW MEXICO

Commission Eyes PNM Customers’ Fuel Savings

The Public Regulation Commission voted 5-0 to open a new regulatory case to examine whether large electricity customers are receiving undue fuel savings as a result of Public Service Company of New Mexico’s investments in renewable energy.

The vote effectively separates the issue from approval of PNM’s renewable energy procurement plan for 2016. The commission had approved that plan in November, but in the vote, the commission included a recommendation by a hearing examiner to force industrial and governmental energy users to repay fuel savings generated by the utility’s renewable investments back to PNM.

The PRC will now review how PNM manages its “fuel clause” with regard to renewable energy. The fuel clause allows the utility to automatically pass on to consumers the costs and savings for purchasing fuel.

More: Albuquerque Journal

NEW YORK

New Plant Owner to Develop Land

The new owners of the Somerset coal-fired power plant outside Buffalo told local officials they want to develop 1,800 acres around the facility.

The Niagara County Industrial Development Agency board on Wednesday also granted a revised tax break to the soon-to-be-former owners of the plant, Upstate New York Power Producers, reducing the plant’s property tax bill by $500,000 next year and again in 2018. The tax breaks will transfer to the new owners, Riesling Power.

Despite the tax breaks, the power plant remains the largest property taxpayer in Niagara County, IDA Chairman Henry M. Sloma said.

More: The Buffalo News

NORTH CAROLINA

State Fines Duke Energy $6.6M for Dan River Coal Ash Spill

The Department of Environmental Quality has fined Duke Energy $6.6 million for the 2014 Dan River spill, in which 39,000 tons of ash and 27 million gallons of water flowed unchecked from a failed pipe under a 27-acre coal ash pond.

The fine comes after a $102 million settlement in May related to federal criminal charges over the incident. The February 2014 spill wasn’t stopped for six days.

Federal prosecutors said Duke ignored warnings about the faulty 48-inch stormwater pipe.

More: The Charlotte Observer

NORTH DAKOTA

PSC Approved $2B in Energy Projects in 2015

The Public Service Commission said it approved almost $2.1 billion worth of siting permits for energy-related projects last year. That number is slightly down from more than $2.7 billion in 2014, but still significantly higher than the $1 billion approved in 2013.

The projects included approximately 245 MW of gas-fired generation, two new electric transmission lines and two wind farms with about 250 MW of generating capacity.

More: North Dakota Public Service Commission

OHIO

Companies Conducting Ad War for Guaranteed Income Plans

American Electric Power, FirstEnergy and their opponents are conducting a television ad war over the utilities’ guaranteed income plans currently before the Public Utilities Commission.

FirstEnergy began its ad campaign last week, in response to a spot from the Alliance for Energy Choice, a group of independent power producers, including Dynegy, NRG Energy and Talen Energy. The alliance has enlisted former PUCO chairman Todd Snitchler to its cause.

Both utility companies have asked for eight-year power purchase agreements for their power plants, saying that they are needed to protect ratepayers from volatile natural gas prices and the reliability risks of plant retirements.

More: Columbus Business First

OKLAHOMA

Commission Reviewing OG&E Billing Change

Solar industry supporters in the state say Oklahoma Gas & Electric’s proposed demand charge for customers with rooftop solar panels would harm the nascent industry.

An OG&E attorney said the utility had provided enough evidence to show a subsidy existed for distributed generation customers under current rates. The Corporation Commission is currently considering the utility’s request to implement the demand charge.

Administrative Law Judge Jacqueline Miller recommended in December the commission prospectively approve the utility’s proposal but said the rates could be subject to a refund if the commission did not ultimately approve the demand charge. She suggested the issue of potential cross-subsidization should be fully vetted under OG&E’s pending $92.5 million rate case.

More: The Oklahoman

PENNSYLVANIA

Wolf Wants to Tax Marcellus Shale Production

Gov. Tom Wolf is proposing to tax natural gas drillers 6.5% on Marcellus Shale production. He estimates the assessment would bring in $217.8 million in the upcoming fiscal year.

Detractors of the plan say it flies in the face of market reality, in which production has slumped because of record low gas prices.

The state already charges a per-well impact fee but is the only state not to impose an extraction tax on natural gas.

More: State Impact

PUC Finalizes Pa. Gas & Electric Polar Vortex Penalties

The Public Utility Commission accepted a settlement that directs Pennsylvania Gas & Electric to pay $6.8 million in customer refunds, a $25,000 civil penalty and a $100,000 contribution to a customer Hardship Fund as a result of alleged deceptive business practices after the Polar Vortex in 2014.

According to the settlement, reached with the Office of Consumer Advocate and the commission’s Bureau of Investigation and Enforcement, the supplier engaged in “slamming,” or enrolling customers in more expensive plans. Investigators also alleged that PG&E mishandled complaints, failed to provide accurate pricing information and charged prices other than those in its disclosure statements.

The OCA and the attorney general’s Bureau of Consumer Protection will determine who is due a refund. A third party will be designated to distribute the refunds.

More: Pennsylvania Public Utility Commission

SOUTH DAKOTA

Wind Farm Rejected in Davison County

Davison County commissioners, expressing concerns about neighboring property values from 446-foot-tall wind turbines, rejected a $40 million wind project proposed by Juhl Energy in Beulah Township. The project would have featured up to 11 turbines.

“Once this precedent is set, we could have these all over the county,” Commissioner Denny Kinder said. Commissioner John Claggett said he also was concerned with setting a precedent. “I think it would be presumptuous for us as a county commission to rule on something that is a new industry,” he said. The measure failed on a 4-1 vote.

Juhl Energy Vice President Corey Juhl said he didn’t think the company would try to appeal the ruling. “It seemed like they still don’t have a full grasp of the project, unfortunately,” he said. “And that’s sad, because you’re going to miss an opportunity here.”

More: The Daily Republic

Legislators Deciding Support for State’s Fossil Plants

State Rep. John Wiik is sponsoring a resolution asking EPA to reconsider its Clean Power Plan. The Republican’s resolution argues that EPA “has proposed several regulations that would enact a de facto ban on the construction of new, efficient and cost-effective coal-fired power plants, and threaten the continued operation of existing coal-fired power plants.”

Wiik’s constituency includes Otter Tail Power’s Big Stone plant. The plant’s owners spent $384 million on its new air-quality control system that was completed in December.

The state House of Representatives voted 65-3 in favor of the resolution Feb. 4. At the same time, the state’s Department of Environment and Natural Resources is building a compliance plan for EPA’s approval, while the state’s attorney general has joined several dozens of other states in challenging in federal court EPA’s authority on the new regulations.

More: The Daily Republic

VIRGINIA

SCC Approves Dominion 230-kV Tx Expansion

The State Corporation Commission approved Dominion Virginia Power’s plan to build out its system with several 230-kV lines in Fauquier and Prince William counties.

The SCC authorized Dominion to build the Vint Hill-Wheeler and Wheeler-Gainesville transmission lines, the Remington CT–Warrenton 230-kV double-circuit transmission line, the 230-kV Vint Hill switching station and the 230-kV Wheeler switching station.

The authorization comes after the SCC considered several routes. There was some issue about whether Dominion had issued public notice about one of the proposed routes, but the SCC indicated that it believes the selected route best serves the needs of the area. The order mandates that Dominion build and put into service the lines and substation by July 1, 2017.

More: Transmission Hub

February 14, 2016

Nuclear Lobby: ‘No Time to Waste’ on Market Issues

The head of the nuclear industry lobby told Wall Street analysts last week that more of the nation’s nuclear fleet will retire prematurely, hurting efforts to meet carbon emission goals, without immediate action by federal and state policymakers to improve their finances.

Marvin Fertel, CEO of the Nuclear Energy Institute, noted that eight reactors have closed or announced closings in the last three years, half of them citing market issues.

NEI says the nation’s 99 nuclear plants generate 63% of the country’s zero-carbon power. In 2015, the group says, nuclear plants had a record 91.9% capacity factor and reduced the average refueling outage to 36 days.

“It simply defies logic to shut down carbon-free nuclear plants, each of which employs 600-plus people, and replace them with natural gas plants employing maybe 30 people and whose cost of producing electricity is nearly 60% higher,” Fertel said during the group’s annual meeting with financial analysts Thursday.

Policymakers in Ohio and Illinois are considering actions that could bolster the finances of nuclear plants, whose revenues have been pinched as low natural gas prices have reduced clearing prices in wholesale energy markets.

New York utilities would be required to procure more than 15% of their forecasted load in 2020 from nuclear plants under a proposal last month by Gov. Andrew Cuomo. (See New York Would Require Nuclear Power Mandate, Subsidy.)

PJM’s Capacity Performance rules, approved by FERC last year, could boost capacity revenues over time.

But Fertel said aid isn’t coming quickly enough. “We have no time to waste. If we do not demonstrate a greater sense of urgency about addressing the problems in the electricity markets, we will lose more nuclear plants,” he said.

— Rich Heidorn Jr.

February 14, 2016

Cuomo, NRG in Spat over Dunkirk’s Closure

By William Opalka

New York Gov. Andrew Cuomo has accused NRG Energy of reneging on an agreement to repower the shuttered Dunkirk coal-fired power plant and ordered state regulators to investigate whether consumers were “defrauded.”

In a letter to the Public Service Commission on Tuesday, Cuomo said its report should determine why the repowering was not done, the financial impact on consumers and whether NRG should be allowed to operate in the state.

“New York welcomes fair-minded and public-oriented independent power producers as important members of our economic community and our electric industry. We cannot, however, tolerate companies that take advantage of consumers to achieve ill-gotten gains,” Cuomo wrote.

nrg — Dunkirk power plant (Source: NRG Energy)

Cuomo said NRG received $110 million from National Grid ratepayers from 2012 to 2015 to keep Dunkirk operating after it announced its decision to mothball the plant. Repowering to natural gas was supposed to have been completed last September.

NRG responded on Thursday that it is “very surprised” by the letter and said Cuomo’s assertion “contradicts the facts.”

“NRG’s Dunkirk facility kept the lights on in Western New York for the past two years, based on a 2012 contract approved by the governor’s own Public Service Commission. Over that time, our Dunkirk employees delivered near flawless performance — at the price agreed to in advance by the state,” company spokesman David Gaier said in a statement.

“NRG has invested in the Dunkirk facility and the local community, and we made more than $16 million in property tax payments over the past two years. We stand by everything we’ve done to support the power grid and ratepayers in Western New York. We’ll respond more fully in the days ahead with the facts,” he continued.

Repowering of Dunkirk to natural gas was approved by the PSC after the company negotiated financial incentives with the governor. The plant ceased operations on Dec. 31 at the conclusion of a reliability support services agreement that paid it above-market rates to remain operating to ensure grid reliability.

However, the repowering agreement was challenged in federal court by another generator who claimed it illegally suppressed wholesale prices in New York. NRG put the repowering project on hold, saying the lawsuit created too much uncertainty to proceed. (See NRG Plant Closures Could Impact Reliability in NY.)

Cuomo said he wants the PSC report “as soon as practicable.”

February 14, 2016

MISO Reliability Subcommittee Briefs

MISO’s System Operation Training Working Group (SOTWG) is at risk of disbanding after a request for new leadership went unanswered. The working group has lacked a chairperson since former chair Steve Zimmerman stepped down at the end of December.

“It looks like if we’re not going to get any stakeholder volunteers for leadership, this might be an opportunity … to move this into a MISO user group,” Reliability Subcommittee Chair Tony Jankowski said during a Feb. 10 meeting. Although user groups don’t participate in policy decisions, he said the RSC would still provide a forum for stakeholders on training operations should the change be made.

“If we move to the user group, it would be temporary, for me at least, and if we get way off-track or out-of-kilter, we may have to move it back to more stakeholder-driven than a user group. It isn’t going to happen overnight, but truly this is a call-out,” Jankowski said. “There’s a lot of groups and organizations that attend these meetings. Stakeholder leadership, even at a working-group level, is a valuable thing. We’re just short of that stakeholder participation, and we need to have that.”

He added that the leadership vacancy should be reported to MISO’s Steering Committee, which could order the change. He didn’t put a timeline on it but urged participants to come forward with nominations before that happens.

The working group is charged with identifying and meeting MISO stakeholder training needs. Last year, it worked with MISO to publish an online training catalog, developed training sessions on natural gas coordination and made NERC continuing education classes available. The SOTWG said it trained 2,015 people and provided about 384 hours of continuing education in 2015.

SOTWG Vice Chair Will Behnke said participation was low during 2015 training sessions, with people signing up for courses and often failing to attend. He reminded the subcommittee that the courses are provided free of charge.

“I really strongly recommend that folks send someone out to attend these meetings,” Behnke said.

2016 Priorities

Jankowski outlined issues the RSC plans to address in 2016.

He said the RSC began asking stakeholders to compile a list of reliability issues in January and identified frequency response as an issue that “needs to be kept alive.”

Although MISO should be compliant with the new NERC standard taking effect April 1, Jankowski said he’d like to follow up on the issue because MISO’s renewable power growth could affect how operations and emergency protocols work. (See “MISO Ready for Frequency Response Standard,” MISO Reliability Subcommittee Briefs.)

He added that the issue needs to be examined at length before action is taken.

“We think it’s premature to spend any appreciable time on revamping how reliability works. … It’s too difficult when you don’t know what you’re chasing,” he said.

Bill SeDoris, director of MISO integration for Northern Indiana Public Service Co., asked that the RSC keep an eye on how the SPP and MISO settlement payments play out after the elimination of the hurdle rate.

Power Restoration Drill

The RSC was reminded that MISO’s 2016 spring power system restoration drill is scheduled for March 23.

— Amanda Durish Cook

February 14, 2016

ERCOT Board of Directors Briefs

AUSTIN, Texas — Making his first presentation to ERCOT’s Board of Directors as CEO, Bill Magness alluded to the unseasonably warm Texas weather as a calming influence during his first month on the job.

“This beautiful, fantastic weather [is] great for my nerves starting out as ERCOT’s CEO,” Magness said. “But it’s terrible for revenues.”

Magness said the milder-than-expected weather resulted in a $1.3 million shortfall in system administration fees for 2015, a major reason why net revenues for the year were $1.8 million below budget.

Magness also reported $2.7 million in over-budget costs for employee benefits and additional responsibilities under NERC’s new transmission-planning standard.

The increased costs were partially offset by lower interest and technology expenses.

“We had unusually high benefit costs … a number we’re really not happy about,” Magness said.

ERCOT’s 2016 operating budget will use a more “granular” load-forecasting methodology that will produce better results, Magness said. Staff recorded a -0.8% error in forecasting load last year, “and we think from an operations standpoint, [the new methodology] helps us better track our finances,” he said.

Warmest Winter Ever?

ERCOT meteorologist Chris Coleman told the board the “crazy winter” Magness lamented can be attributed to El Niño, the warming climate pattern in the tropical Pacific Ocean, and he said there’s a “greater potential for a warmer forecast” than a colder one for the remainder of the winter.

“This is the strongest [El Niño] has been at this point in the cycle ever. It will go down as one of the two strongest ever,” surpassed only by the 1997-98 El Niño, Coleman said. “This one is finishing stronger. We could be seeing our warmest winter ever.”

Austin has seen just three freezes since Nov. 1 after having recorded 28 over the previous two winters and has spent less than four hours at or below freezing this winter. Temperatures have yet to dip below 31 degrees so far, the warmest minimum temperature recorded through January in 20 years.

Looking ahead, Coleman projects a wet winter for much of Texas and an above-average number of ice events. He said the state’s northwestern portions could see a wet spring, but it will be drier elsewhere, which could lead to a return of drought conditions.

ERCOT’s next seasonal assessment of resource adequacy, early next month, will include an updated weather forecast.

ERCOT Unveils New Logo in State of Grid Report

ERCOT released its annual State of the Grid report Feb. 9, highlighting a new fluid, open-ended logo that it said reflects “the perfect flow of power on a high-demand summer day.” The report details ERCOT’s record in each of five areas: accountability, leadership, innovation, trust and expertise. It also provides updates on a number of initiatives and milestones, including successfully managing the first system peaks since 2011 and integrating the nation’s largest amount of wind capacity.

IMM Says Real-Time Prices Dropped

ERCOT’s Independent Market Monitor said real-time energy prices were down 34% in 2015, averaging $26.77/MWh compared to $40.64/MWh the year before, which began with a cold winter.

IMM Director Beth Garza said ERCOT’s implied heat rate indicated a number of inefficient units were being used to meet demand. Real-time and day-ahead heat rates peaked at 13.94 MBtu/MWh and 20.28 MBtu/MWh, respectively, in August, when ERCOT recorded its five highest daily demand peaks ever.

Special Meeting to Replace Director

The board unanimously approved staff’s recommendation for a special meeting to select an unaffiliated director before June 30. ERCOT bylaws call for five unaffiliated directors on the board, but the Texas grid operator’s Nominating Committee will not be able to meet and select a candidate to present to corporate members before June 30, when Jorge Bermudez’s second term expires. He will seek re-election for a third and final term.

The board also re-elected Craven Crowell and Judy Walsh as chairman and vice chair, respectively, and approved ERCOT’s two newest officers: Chad Seely, who replaced Magness as general counsel, and Senior Vice President and COO Cheryl Mele.

Randa Stephenson was re-confirmed as Technical Advisory Committee chair. Previous vice-chair Adrianne Brandt recently left Austin Energy for San Antonio’s CPS Energy; she will have to be re-elected to her position by TAC members before she can be confirmed by the board.

Finally, the board welcomed five new segment alternates: American Electric Power’s Wade Smith (Investor-Owned Utilities), DC Energy Texas’ Seth Cochran (Independent Power Marketers), Chapparal Steel Midlothian’s Sam Harper (Industrial Consumers), Invenergy Energy Management’s Mark Soutter (Independent Generators) and CenterPoint Energy’s Kenneth Mercado, (Investor-Owned Utilities).

Consent Agenda Passes Unanimously

The board unanimously passed its consent agenda, approving eight protocol revision requests and a nodal operating guide revision (NOGRR147, Reactive Power Testing Requirements) that were previously endorsed by the TAC. (See “Protocol Revision Requests OK’d,” ERCOT: No Consensus on Operating Reserve Changes.)

— Tom Kleckner

February 14, 2016

Fitzpatrick Closure Could Leave NY Generation Short

By William Opalka

Closure of the FitzPatrick nuclear plant will leave New York at least 325 MW short of its generation requirement by 2019, according to a new assessment from NYISO.

The assessment, released Thursday, was ordered following Entergy’s announcement last year that the 882-MW plant would close at the end of its current fueling cycle, later this year or early in 2017.

“The resource deficiency equates to approximately 325 MW statewide but would likely require more than 325 MW of new or retained capacity resources to resolve, depending on forced outage rates and the location of the resources,” the assessment says.

NYISO is requesting solicitations for a “gap solution” from market participants that may include generation, transmission or demand response to address the shortfall. The RTO normally addresses reliability needs biennially but said the expected shortfall in 2019 requires action now.

About 2,600 MW of capacity is expected to leave the New York fleet by mid-2017. Besides FitzPatrick, NYISO has already lost, or is expecting to lose, the coal-fired plants Dunkirk, Cayuga and Huntley, along with the Ginna nuclear plant. (See Entergy Rebuffs Cuomo Offer; FitzPatrick Closing Unchanged.)

Currently inactive or close to deactivation are a 50-MW biomass plant in Niagara Falls and several gas peaking units in New York City. (See TransCanada may Mothball 3 NYC Gas Peakers.)

An 820-MW gas-fired plant in southern New York is expected to be in service by March 2018 and several transmission upgrades planned by mid-2020 are expected to mitigate the plant closures.

The assessment says new resources would be less effective to the state overall if they were added to Zone A in western New York. “Due to transmission system limitations between Zones A and B, capacity added in Zone A is not as effective as capacity added in other locations, unless that capacity also improves the transfer limitations,” it states.

Zone A is a relatively large area around Buffalo. Zone B is a narrow strip that runs from the Pennsylvania border to Lake Ontario and includes three nuclear power plants.

FitzPatrick Inspection

On Wednesday, meanwhile, the Nuclear Regulatory Commission released an inspection report that identified two violations of “very low safety significance” at FitzPatrick.

In November the plant took one of its backup emergency diesel generators offline while another backup generator was being serviced. In December, Entergy failed to tell NRC when a secondary containment ventilation system was inoperable.

The report, which summarized NRC’s three-month inspection ending Dec. 31, also included a third violation, self-reported by Entergy and considered of low significance. The company said it discovered it was operating during its previous fuel cycle, from October 2013 to October 2015 without the required number of safety relief valves.

February 14, 2016

PJM Operating Committee Briefs

Cold-weather testing continued into the second week of January due to the region experiencing one of the mildest Decembers on record.

The cost of the testing was cheaper than the previous year — $3.4 million compared with $4.9 million.

Two out of three eligible units declined to test, which Operating Committee Chair Mike Bryson said was a good thing because they would have been turned down anyway because of the warm weather. Some units have indicated they are going to test themselves, he said.

The success rate by unit was 97%; by megawatt, it was 98%.

The largest cause of failures, at 38%, was liquid fuel handling problems, followed by control system issues (15%).

Session will Study Transmission, Energy Scheduling Practices

An educational session will be held Feb. 24 on proposed changes to PJM’s regional transmission and energy scheduling practices.

The updates stem from the alignment of the gas-electric market timeline and generator offer flexibility proposals.

The changes add a five-minute “shotgun” start window for the hourly spot-in product — spot market imports — in which all reservations will be considered simultaneously.

“This process is going to give everybody a better shot at receiving the request they submitted,” PJM’s Chris Pacella said.

PJM Prepares for Annual Security Drill

PJM is asking members wanting to take part in the annual Grid Security Disturbance Drill to respond by March 11. The drill will be held on Nov. 9.

Transmission owners will participate in the drill from their workplaces. Generation owners will take part in a tabletop exercise at PJM.

The purpose of the drill is to assess the RTO’s ability to respond to disruptions caused by coordinated cyber and physical attacks and restore the grid to normal operations.

A kick-off meeting will be held in May. For more information, email BCP_Mailbox@pjm.com.

— Suzanne Herel

February 14, 2016

Federal Briefs

The Mixed Oxide Fuel Fabrication Facility to turn weapons-grade plutonium into commercial reactor fuel is on the chopping block as the Obama administration has proposed switching to an alternative disposal method. South Carolina officials say they will sue the federal government for missing deadlines and to force it to pay contractual penalties of $1 million a day for failing to complete the project.

The U.S. Energy Department has already spent $4.5 billion on the half-built plant at the Savannah River Site near Aiken, S.C., designed to dispose 34 tons of plutonium as part of international weapons agreements. The MOX project is now estimated to cost between $9.4 billion and $21 billion, and may not begin operations until 2040.

A new department budget calls for spending $285 million to blend the plutonium with other materials and then dispose of it underground in New Mexico.

More: Aiken Standard; The New York Times

DOE Announces $18 Million in Grants for Solar-Battery Storage

The Energy Department is devoting $18 million to help develop ways to integrate solar generation and battery storage in order to overcome the challenge of matching the intermittent production of solar power to market demands.

The grants will go to Austin Energy, Carnegie Mellon University, Commonwealth Edison, the Electric Power Research Institute, Hawaiian Electric and the Boston-based Fraunhofer Center for Sustainable Energy Systems.

The money will go toward developing new integrated photovoltaic energy generation and storage projects using Internet-capable inverters that will join solar arrays, smart buildings and appliances, and utility communication and control systems.

More: Transmission and Distribution World

Solar Companies Form First National Trade Association

Seven energy companies have joined to create a national trade association to promote community solar projects, which are financed by subscribers who receive solar energy credits on their bills.

“Community solar is the necessary next step to bringing solar to the majority of Americans for whom solar is not yet an option,” said Jeff Cramer, the executive director of the new group, the Coalition for Community Solar Access.

The coalition’s founding leadership includes Clean Energy Collective, Community Energy, Ecoplexus, Ethical Electric, First Solar, NRG Energy and Recurrent Energy.

More: CCSA

Despite NRC OK, No Plans to Build South Texas Nukes

The Nuclear Regulatory Commission approved licenses to build two new reactors at the South Texas Project nuclear plant southwest of Houston, but NRG Energy and its partners have no plans to build them because of competition from cheaper power suppliers.

The partnership is continuing to look for new U.S. investors to eventually move the stalled project forward, said NRG spokesman David Knox. The company said five years ago it wasn’t investing any more money in the expansion, which then had an estimated cost of about $14 billion.

The existing South Texas Project’s two reactors are owned jointly by NRG, Austin Energy and San Antonio’s CPS Energy. NRG has sought additional partners in the expansion since CPS Energy, once a 50% partner, reduced its stake to 7.6%.

More: Fuelfix Blog

Fort Hood Looks to Renewables to Cut Costs

The U.S. Army has signed a 30-year contract with Apex Clean Energy to provide 65 MW of solar and wind energy at Fort Hood in Texas. The Army will pay Apex as much as $497.4 million over the life of the deal, about $168 million less than what it would pay for power from the traditional electricity grid, according to the Defense Logistics Agency.

Officials broke ground in January at the Army installation 75 miles north of Austin on a 132-acre solar farm that includes 63,000 panels. The solar project is paired with an investment in a Panhandle wind farm.

The military, the single largest consumer of energy in the U.S., is dedicating at least $7 billion to renewable energy projects, part of the Obama administration’s efforts to emphasize alternative sources of energy.

More: Austin American-Statesman; Bloomberg

FERC Infrastructure Report Shows Solar 2015 Project Leader

A report from FERC’s Office of Energy Projects shows that solar generation led the way for new generation in the U.S. in 2015, followed by wind and then natural gas, on the basis of number of projects. Solar accounted for 248 projects but ranked third behind wind and natural gas in terms of capacity.

Wind came in second with 69 projects, but the combined installed capacity of nearly 8,000 MW led the pack. Natural gas came in third in both number of projects (50) and capacity (6,000 MW).

Combined, solar, wind and natural gas accounted for nearly 97% of all new capacity installed in the U.S. in 2015.

More: JDSupra

Solar and Wind to Account for 6% of Generation in 2016

Utility-scale wind and solar will account for 6% of electric generation in the U.S. in the coming year, according to a report from the Energy Information Administration. Although solar’s share is less than 1%, it represents a 28% increase over 2015.

EIA did not count distributed solar, the most common type among residential and small business customers. If small-scale rooftop systems were included, solar would supply about 1.2% of 2016 generation.

Wind and hydro will come in at 5.2% and 6% respectively, according to EIA. When biomass and geothermal power are included, renewable energy overall is expected to account for 14.5% of power generation in 2016.

More: pv magazine

FERC Wants More Info from PennEast Pipeline

FERC last week ordered PennEast Pipeline to provide more information on its proposed 110-mile natural gas pipeline that would run from Pennsylvania under the Delaware River and into New Jersey, saying it wants to know more about how the pipeline would affect several nature preserves.

FERC is preparing its environmental impact statement for the pipeline proposal and wants to know how PennEast would protect wildlife and how it would mitigate any effect on wetlands.

Pipeline opponents saw FERC’s demand as a win and called on the federal agency to suspend its review of the project. “FERC’s letter demonstrates once again that the information that PennEast has submitted to date is incomplete and inaccurate,” said Michael Pisarro of the Stony Brook-Millstone Watershed Association.

More: Mercer Me

February 14, 2016

PJM Market Implementation Committee Briefs

VALLEY FORGE, Pa. — Stu Bresler, senior vice president for market operations, told the Market Implementation Committee Wednesday that discussions with market participants and among staff have highlighted the need for manual changes to clarify rules regarding capacity bilateral transactions.

“Neither the Tariff nor the manual provides clarity about those transactions,” said Bresler, delineating them as unit-specific, auction-specific and locational unforced capacity.

He explained that in such transactions, the performance obligation remains with the seller, while the title to the megawatts for the capacity is transferred to the buyer. If the resource earns bonus credits, they go to the buyer.

At issue is the physical nature of the transactions, Bresler said.

“A court could say it’s not a physical transfer of megawatts, it’s just an assignment of receivables,” he said. “The more the physicality of a transaction is questionable, the more likely in a bankruptcy proceeding that the credit associated with that would be yanked away from the buyer and included in the bankruptcy estate.”

A second issue involves the fact that a buyer indemnifies PJM against a seller’s non-performance. “What happens if the seller in the transaction replaces the resource that was the subject of the transaction in the first place?” Bresler said. “What should the replacement rules be?”

Bresler suggested that the issue be expedited.

After Months of Debate, Data Confidentiality Rule Changes Endorsed

With 16 opposing votes, members endorsed changes to data confidentiality rules that have been the subject of debate since June. (See “Market Data Confidentiality Rule Change Gets First Reading,” PJM Market Implementation Briefs.)

Current rules prohibit PJM from talking about certain information even after it’s been disclosed publicly. At the heart of the deliberation has been how to provide PJM the ability to discuss situations such as generator outages while at the same time not disclosing commercially sensitive information.

The proposal allows PJM to release and discuss:

Information on individual generation outages involving an unusual operating condition on the transmission system such as a severe weather event;
The amount of demand response in an area no smaller than three ZIP codes (specific offers or suppliers would remain confidential);
The total amount of capacity offered and cleared, aggregated by transmission zone;
Uplift payments in an area no smaller than a transmission zone, and for no shorter a time period than one operating day;
Aggregated statistics related to the results of the three pivotal supplier test; and
Data made public by a PJM member or a state or federal regulator.

One minor change was made since the first reading. A sentence was added to specify the circumstances in which DR information would be released. The revised language allows such disclosures for incidents including, but not limited to, a severe event on the transmission system, a severe weather event, the formation of a closed-loop interface or the need for a transmission system upgrade.

Operating Parameters to be Subject of Special Session

An educational session will be held Feb. 24 to explain updated operating parameter definitions.

A number of operating parameters whose definitions appear only in the eMKT/Markets Gateway Users Guide have led to confusion among members about what values should be entered.

PJM also wants to clarify several terms in Manual 15.

A new “soak time” parameter has been proposed that would define the minimum length of time a unit must run to reach its economic minimum.

— Suzanne Herel

February 14, 2016

PJM Asks FERC to Reconsider CP Parameter Rules

By Suzanne Herel

PJM and its Independent Market Monitor asked FERC Thursday to revise Capacity Performance rules to address concerns that generators might ignore dispatch instructions to avoid penalties.

FERC’s June 2015 order approving PJM’s tougher capacity requirements directed the RTO to eliminate language that would allow generator parameter limitations to be used as an excuse for nonperformance (ER15-623, EL15-29). The order argued that if resources were held only to parameter limits based on their physical characteristics, those that were less flexible would be able to avoid nonperformance charges more readily than more flexible units. (See What is Changing in PJM’s Proposal?)

However, PJM said in a Dec. 22 informational filing that eliminating any consideration of parameter limits from penalty calculations might lead some generators to self-schedule at maximum output in anticipation of a performance assessment hour, ignoring economic dispatch.

In a joint statement last week, PJM and the Monitor asked the commission to allow consideration of parameter limits but incorporate the Monitor’s recommendation that the limits be based on original equipment manufacturer (OEM) specifications rather than on historical performance data. This, they said, would ensure that resources not escape penalties “as a result of economic decisions about maintenance and investment.”

Under the proposal, resources would not face nonperformance charges if their operating parameters complied with the OEM limits and they followed dispatch orders. Resources that offered parameters less flexible than the OEM specifications would be ineligible for uplift and could be vulnerable to penalties.

They also asked FERC to approve the Monitor’s proposal that parameter limits be defined for ramp rate and boiler temperature retention times.