Latest Z2 Credit Project Delay Renews Old Frustrations

By Tom Kleckner

OKLAHOMA CITY — Member frustrations with SPP’s Z2 crediting project bubbled to the surface again last week when staff told the Markets and Operations Policy Committee of a new delay.

“It’s an open wound that continues to fester and opens again whenever we seem to make progress,” said The Wind Coalition’s Steve Gaw.

SPP staff told the MOPC last Tuesday the project’s complexity and the challenges in processing historical data have pushed the project’s expected completion to November, when the first Z2 credits are now expected to be invoiced.

Not Pleased

That did not please members, who had been expecting an initial indication of their liabilities or credits this month.

The Z2 crediting project dates back to the last decade as a result of years of incorrect credits for transmission upgrades. The task force working on the project estimated last year creditable upgrades of $750 million but said in October it hoped to present better estimates this month. (See “Z2 Crediting Task Force Remains on Track” in SPP Markets and Operations Policy Committee Briefs.)

Some members requested notice from SPP about the size of the impact.

“We don’t know if it’s a 5-gallon bucket, a semi-trailer or an oil tanker,” said Oklahoma Gas & Electric’s Greg McAuley. “I can’t give my executive team any insight at all. We would like some transparency so we know what the size of the bucket is. If it’s a $5 issue, we don’t care. If it’s $5 million, we do.”

“Every single entity in this room gets impacted, because the longer this festers, the more FERC gets interested,” Gaw said. “The delay does not keep the amount of money from accumulating.”

Upgrades Since 2008

The project team is developing software that will properly credit and bill transmission customers for system upgrades that date back to 2008, in accordance with Tariff attachment Z2. The problem has been avoiding over-compensating project sponsors and including a way to “claw back” revenues from members who owe SPP money for other reasons.

“The project goes so far back in time many databases have changed format,” said Steve Purdy, manager of transmission service studies. “We knew there would be some of that, but those issues are taking longer to deal with than we initially anticipated.”

Purdy said staff has “modularized” the system, so that some software is functional before others. Staff has completed two modules — accounting for 48 of 58 total system components — and is testing a third.

Purdy said 17% of the components have yet to be developed, but that the transmission owner and customer collection effort is mostly complete. He told the committee that additional testing will be required to cover the more complex processes, where some manual procedures are in place.

“We will process data, stop and make manual adjustments,” Purdy said. “The system run times are estimates. We haven’t exercised the system yet, so we’re basing the estimates on what we think it will look like.”

Staff now expects the historical data processing to begin in late March and run through late August. The first reports would be generated and reviewed in August and September, with invoicing beginning Nov. 4.

“NextEra certainly doesn’t feel any better about this, given the answer you just gave,” said Aundrea Williams, director of regulatory affairs and strategies for NextEra Energy Transmission. “[This project] is past red, perhaps maroon. Why are you more confident today that I can rest assured Nov. 4 is a real date? Is there any way we can get anything going before Nov. 4?”

Additional Staff Assigned

Purdy said additional staff has been assigned to the project and some work is being conducted in parallel “to see if we can speed this up.” Staff is also considering postponing some work past the Nov. 4 go-live date and conducting “outreach sprints” with affected parties to speed up the process.

Purdy noted the project estimates are on the “long side,” given the historical data processing piece in the middle is “the squishiest part of the schedule.”

ITC Holdings’ Marguerite Wagner reiterated members’ desire for an “order of magnitude” number. Charles Locke, SPP lead regulatory analyst, responded, saying, “It’s a very long and complicated calculation even to provide an order of magnitude. We may be able to provide data on the gross payment obligations before September, but that won’t give the broad spectrum of impacts across SPP.”

“It’s very hard for me to explain in our public world,” said Xcel Energy’s Bill Grant, referring to his company’s responsibilities to shareholders and regulators. “This may be a big financial decision we’re fixing to make, or not at all. I don’t want to go back and say I made the wrong decision because I didn’t have the right information.”

Staff promised improved communications around the project. Gaw said when he participated in a Regional Tariff Working Group meeting two weeks’ prior, the November date was never mentioned.

“We will program in a number of checkpoints once we start processing data. The checkpoints will allow us to make more frequent adjustments to the schedule so we know what we have,” Purdy said.

‘Back Burner’

“It’s easy to look back and say we knew it would be hard,” MOPC Chair Noman Williams, of South Central MCN, told the Strategic Planning Committee on Thursday. Williams said the Z2 project “got put on the back burner” as SPP introduced the Integrated Marketplace and added the Integrated System.

“Getting our hands around all that data and the numbers is not an impossible task, but it will take a lot of effort to get there,” he said.

Given the project’s current status, the MOPC delayed approving a payment plan until its April meeting. The task force is currently suggesting two options, a traditional payment plan and a staggered billing approach, either of which will require a FERC filing.

Under the payment plan, SPP would offer each entity the option of being billed the entire amount at once (thus avoiding additional interest) or in equal installments, as determined by stakeholders. Under the staggered approach, stakeholders would be billed based upon time increments; years one and two would be billed in the first quarter after go-live, years three and four in the second quarter, and so on.

SPP’s regulatory and legal departments are currently identifying any Tariff provisions required by implementing the credit billing process.

January 19, 2016

Next up in Ohio PPA Battle: Dynegy Weighs in

By Ted Caddell and Suzanne Herel

Dynegy entered the Ohio PPA fray last week, floating an offer to the Public Utilities Commission of Ohio that it said would save consumers in the state $5 billion over eight years.

The company said it was making its counter offer “in response to the exorbitant and counterproductive subsidies currently under consideration” for American Electric Power and FirstEnergy. It would either provide power from its existing generation fleet in the state, or replace subsidized American Electric Power and FirstEnergy plants with new, natural gas-fired generation.

The Ohio-based companies have proposed power purchase agreements to PUCO that would provide a guaranteed return for their embattled generating stations for eight years. PUCO staff has signed on to both proposals, which have been attacked by independent power producers and others. (See Merchant Generators Lead Opposition to FirstEnergy-Ohio Settlement.)

Dynegy’s offer comes two weeks after Exelon made its own offer to PUCO, proposing a competitive bidding process to supply the 3,000 MW for which FirstEnergy is seeking guaranteed rates (the combined value of FirstEnergy’s W.H. Sammis coal plant and its Davis-Besse nuclear station).

Local Provider?

One difference in Dynegy’s offer is that it bills itself as a local provider. “The power provided by Dynegy will be generated by Ohioans, at Ohio plants, for Ohioans,” Dynegy said in its announcement. Dynegy said it has 5,400 MW of generation in Ohio and hundreds of employees in the state and would use the state’s natural gas, “providing further benefits to the state.”

Dynegy CEO Robert Flexon, who has threatened to sue if PUCO accepts either the AEP or FirstEnergy proposals, said his company has the winning answer.

“If the PUCO and other elected officials in the state are interested in protecting consumers’ and businesses’ long-term interests while ensuring long-term reliability and price stability, then in lieu of accepting FirstEnergy’s and AEP’s proposals for long-term power purchase agreements, the PUCO should adopt one of the alternate, superior proposals Dynegy is putting forth,” he said. “The PUCO could also institute a request for proposal process containing the same arrangements in the AEP and FirstEnergy PPA proposals. Exelon’s recent proposal is also thoughtful, and Dynegy agrees with Exelon that this process should be competitive.”

Flexon will join CEOs from Calpine, NRG Energy and Talen Energy, as well as officials from Advanced Power and the PJM Power Providers Group (P3), in Columbus on Wednesday to lobby against the deals. The officials will hold a press conference at the state capitol at 2:15 p.m.

FirstEnergy: Dynegy ‘Misses the Point’

FirstEnergy spokesman Doug Colafella said Dynegy’s offer is off the mark.

“Dynegy’s proposal offers few specifics and provides no assurances that its power plants in the region will continue operating over the long term,” he said Friday. “Dynegy is a power marketer from Houston with an established track record of entering and exiting competitive markets. While its brand of investors may be willing to tolerate its ‘boom and bust’ approach to energy markets, this approach fails to deliver on two key policy goals in Ohio — energy stability and economic stability.”

“In addition,” he said, “Dynegy’s offer to fill the void with gas-fired plants if Sammis and Davis-Besse were forced to close completely misses the point about having a diverse set of fuels available to produce electricity in Ohio, an important ingredient for ensuring price stability for customers.”

AEP: Dynegy Wants Higher Prices

AEP Ohio spokeswoman Terri Flora also took a shot at Dynegy’s new generation option.

“If Dynegy could build new generation in Ohio under current market conditions, they would,” she wrote. “But, they haven’t built new generation in Ohio and they can’t afford to build it under current conditions. They need energy costs to rise dramatically for their business model to work so they want to force existing power plants to close.”

FirstEnergy Hearings Continue

The sparring proposals and letters came as PUCO continued hearings last week on the FirstEnergy proposal. The hearings are expected to run through the end of this week. Final arguments are likely in February and a commission vote possible by March, the Cleveland Plain Dealer reported.

On Thursday, lawyers for the Sierra Club questioned PUCO’s director of rates and regulatory affairs about FirstEnergy’s projection that natural gas prices will rise above $4/Mcf — a key assumption in the company’s contention that its proposal will save consumers money.

Prices for January are below $2.40/Mcf and New York Mercantile Exchange futures are below $4 through 2024.

FirstEnergy Answers PJM Member Criticism

FirstEnergy also responded to criticism of its proposal from P3 and the Electric Power Supply Association in a letter to the PJM board. (See Exelon Calls FirstEnergy PPA ‘Grossly Lopsided,’ Says it can Offer a Better Deal.)

Amid an industry in transition, “a number of states are considering retail rate policy reforms that support long-term resource planning, generator diversity and economic stability,” wrote Steven Strah, president of FirstEnergy Utilities. “While some participants may disagree with our proposal, it is legal from a state and federal perspective, and consistent with traditional state and federal regulatory rules.”

Strah also criticized PJM’s request that PUCO require FirstEnergy and AEP’s Ohio generators to offer their output into the RTO’s markets at no lower than their actual cost, with no consideration of offsetting revenue provided by Ohio retail customers. (See PJM Seeks Changes to AEP, FirstEnergy PPAs.)

Strah said such a mandate would violate federal appellate court rulings that prohibit state regulators from “dictat[ing] generator offer behavior in PJM’s FERC-jurisdictional wholesale markets.”

Meanwhile, the independent generators received support from Advanced Power Asset Management, which is developing two combined cycle projects in Ohio.

In its letter to the PJM board, it called the FirstEnergy and AEP deals “a special subsidy to incumbent Ohio- and Indiana-based PJM generators [that] will circumvent the PJM capacity and energy markets,” lowering prices for other market participants and creating a disincentive to new investment.

Advanced Power is developing Carroll County Energy, a 700-MW natural gas-fired combined cycle generator expected to go online in the second half of 2017. The $899 million project is fully funded, “predicated on the PJM market mechanism, which is the largest and most liquid competitive capacity and energy market in the U.S.”

Also being developed — but not yet funded — is the 1,100-MW South Field Energy combined cycle project in Wellsville, Ohio.

January 19, 2016

DFAX: ‘Poison Pill’ or ‘Best Method’ of Cost Allocation?

By Suzanne Herel

WASHINGTON — Stakeholders from Maryland, Delaware and New York urged FERC last week to allocate the costs of the Artificial Island and Bergen-Linden Corridor transmission projects more broadly across PJM, while utilities in New Jersey and Pennsylvania called for continued use of the solution-based distribution factor (DFAX) method.

The two sides squared off at a Jan. 12 technical conference ordered by the commission, which said the use of the DFAX method for such projects might be unjust and unreasonable (EL15-95). (See FERC Questions Fairness of Artificial Island Cost Allocation.)

Two Questions

The forum focused on two questions: Is there a definable category of projects for which the DFAX cost allocation method might not be appropriate, and could a fair approach be developed prospectively for those occasions?

PJM Vice President of Planning Steve Herling told the commission staff that the RTO could devise an alternative to DFAX for certain fixes, but the scheme would be tricky to develop and wouldn’t be used very often.

PJM presented a matrix of project categories, showing that they could be defined as thermal violations, voltage/reactive, stability, short circuit, storm hardening, end of life/aging infrastructure or real-time operation concerns.

Since 2000, when PJM inaugurated its Regional Transmission Expansion Plan, there has been only one project each for the stability, short circuit and storm hardening categories. Artificial Island is the stability project; the Bergen-Linden Corridor is the short circuit project.

Regarding stability projects, Herling said, “I honestly don’t think we’re going to see many of those going forward. We might see one more next year and not another in 20 years.”

Solution-based DFAX works well for most of the project categories, Herling said, because in most cases those who caused the problem are the same ones who will benefit from it being repaired. The flow of electricity that the projects are designed to enhance can be measured. But flow is not the driver of stability or short circuit fixes.

“With stability and short circuit, that’s a trickier proposition,” Herling said.

Thirty years from now, for example, the stability benefits of the Artificial Island project probably won’t exist because one or more of the Hope Creek and Salem nuclear reactors might be retired.

“The point is that the initial benefit of solving the problem fades over time. So is there a way to calculate the benefits of solving the problem? There very well may be,” he said.

“The big benefit of going to DFAX is that you don’t have to divvy up all the problems and all the beneficiaries. You have one solution. Then you look at who’s using the fix. And that can be looked at year by year,” he said.

Status Quo

Testifying at the conference in favor of keeping the status quo for all projects were Frank Richardson of PPL and Takis Laios of Transource Energy, representing the PJM Transmission Owners, and Esam Khadr of Public Service Electric and Gas.

New Jersey’s Board of Public Utilities and Division of Rate Counsel also submitted comments recommending that the commission not distinguish among projects for cost allocation. “All projects to ensure the reliability of the bulk transmission system are related to flow,” the filing said.

It also noted that if the cost of the Artificial Island project is figured differently, it would allocate more costs to New Jersey ratepayers.

DFAX Unfair

Advocates for customers on the Delmarva Peninsula protested the DFAX methodology, which charged them the bulk of the Artificial Island fix.

Arguing that the DFAX method is inappropriate to be applied to projects unrelated to flow were Mayer Sasson of Consolidated Edison; Amy Fisher of Linden VFT; attorney Robert Weishaar, of McNees Wallace & Nurick, and John Farber of the Delaware Public Service Commission, representing Delaware and Maryland commissions and agencies; Jeff Wood of Hudson and Neptune Transmission; and Mark Ringhausen of Old Dominion Electric Cooperative.

Also objecting to the DFAX method in filed comments were the New York Power Authority and the Easton Utilities Commission.

“For non-overload projects, there is no rational relationship between flows and intended benefits,” Sasson said. “This makes the use of distribution factors as part of the DFAX analysis a ‘poison pill.’”

Short circuits, for example, are system disturbances, not the result of customer demand, he said, and the intended beneficiary is the transmission zone where the problem exists. The typical solution is to upgrade the breaker, not build a transmission line.

“The Bergen-Linden Corridor Project is intended to fix short circuits in PSE&G’s service territory. And as PJM recently informed its stakeholders, it remains necessary with or without the flow from Con Edison’s transmission contracts. Clearly, PSE&G is its intended beneficiary,” he said.

Laios, of the PJM TOs, argued that all projects involve flow.

“Why are circuit breakers there? They’re at a facility to carry flows. You could figure out who tripped it, but you’re back to a one-time violation calculation.”

He was referring to the violation-based DFAX method, a predecessor to the solution-based model, which went into effect in 2013.

Sasson said Con Ed is not proposing the violations-based method. “Our position is that, for non-overload projects, no DFAX analysis can apply because there is no rational or technical relationship between flows and intended beneficiaries.”

Ringhausen agreed. Representing 20% of the load in the Delmarva zone, ODEC stands to pick up a significant portion of the Artificial Island project cost. The primary component of the project is a 230-kV line that is not required to resolve any thermal or voltage reliability issues caused by load growth in the Delmarva zone, he said.

“The results of solution-based DFAX, then, do not signify any significant benefit to the Delmarva zone from the new line that could justify the proposed cost allocation.”

Allocation Based on Economic Benefits

“For a generator stability problem like Artificial Island, one potential alternative would be to allocate costs based on the relative proportion of economic benefits that result from a stability upgrade since a primary benefit of such a project is to increase the availability of a generator’s output to provide capacity and energy to the PJM region,” Ringhausen said.

PSE&G’s Khadr, however, pointed out that the project gives the Delmarva area, which has been subject to transmission constraint, another high capacity line. He also noted that about 30% of the zone’s generation is more than 40 years old and at high risk of retirement.

Laios cautioned creating “carve-outs” for certain projects.

“You’re inviting another driver where someone doesn’t like the cost allocation to argue they should be included in that carve-out,” he said. “Once you start a carve-out, where do you stop?”

PPL’s Richardson said that any attempt to categorize some reliability projects differently would be “fraught with problems.”

“Some results may look strange,” he conceded of the DFAX methodology. But, he said, “It is not arbitrary. It is defensible, and it is the best method that we have.”

Weishaar, counsel to the Delaware Public Service Commission, suggested that a cost allocation method based on economic benefits would be the best option to address stability issues.

“The process would be objective and neutral,” he said. “A narrow exception to the DFAX rule need not swallow the rule. It may be appropriate for the overwhelming number of projects.”

Ringhausen also backed an economic-based allocation.

“We would have PJM run their market efficiency models and allocate the cost based on that,” he said. “Solution-based DFAX is better for most, but for certain projects, it is not matching cost and beneficiaries appropriately.”

Laios objected to the idea of an economic solution.

“Why would you use economics for reliability projects?” he said. “If you did, wouldn’t you feel compelled to do it for all the projects? It’s still a one-time calculation. It’s not updateable each year.”

FERC staff said they would regroup to see if they had any more questions for the participants. Meanwhile, FERC on Thursday granted a rehearing for further consideration of PJM’s Tariff changes involving the cost allocations.

January 19, 2016

Reduced Reserve Margin Could Cut SPP Capacity Costs

By Tom Kleckner

OKLAHOMA CITY — Reducing SPP’s current 13.6% reserve margin to 12% could cut required capacity by about 1,000 MW, saving $86 million annually and $1.3 billion over 40 years, a task force told the Markets and Operations Policy Committee.

The Capacity Margin Task Force has been evaluating resource adequacy since SPP became a central balancing authority with the Integrated Marketplace’s implementation in 2014. The RTO’s capacity margin has been unchanged since 1998 despite an expanding footprint, operational changes and significant transmission expansion.

Task Force Chairman Tom Hestermann, manager of transmission policy for Sunflower Electric Power, said the group believes the reserve margin can be reduced without affecting reliability. He said stakeholders have been supportive of reserve margins as low as 12.5% but less so when the margin drops to 12% or less.

“The more reserves you require, the more it will cost,” he told members during a four-hour educational forum preceding the MOPC meeting. “We want a good balance between reserve margins and system reliability. If 12% is where we want to be, we have a good story to tell. We believe we can do this successfully.”

The savings would come from reduced generation investment made possible by transmission upgrades. Hestermann said lower margins could align with generation retirements due to the Clean Power Plan.

Hestermann noted resource adequacy is generally expressed in terms of capacity margin or reserve margin for planning purposes. Both are measured using the same numerator: the difference between available resources and net internal demand. SPP uses capacity margin, in which resources serve as the denominator. Reserve margin, used by NERC and other regions, uses net internal demand as the denominator.

Hestermann said the task force will recommend switching to reserve margin, where a 13.6% margin is equivalent to a 12% capacity margin.

“NERC doesn’t have a standard for planning reserves,” Hestermann said. “SPP enforces this requirement through the membership agreement.”

The task force ran “limbo studies” — “How low can you go?” Hestermann explained — that simulated four reserve margin levels for each of three years: 2016, 2017 and 2020. The analysis found SPP could maintain required loss-of-load expectations in every case except 2017, and then only when the reserve margin was set at 7.53%. (The study assumed additional transmission infrastructure.)

“The current criteria requires an assessment every two years to ensure 12% is adequate,” Hestermann said. “What we haven’t done before is see whether we can go lower than that and still maintain a reasonable level of reliability.”

The task force has completed a white paper defining load-responsible entities, which was approved by MOPC and the board last July and is currently being discussed within various task forces. Tariff revisions or changes to previously approved policy will be brought back to the MOPC for approval.

The group will present its reserve margin requirements and a deliverability study for MOPC approval in April. It also will present a planning reserve assurance policy, an enforcement mechanism using payments, not penalties, from LREs short on capacity to those who are long.

The task force also is still working on a distributed energy resource policy.

January 19, 2016

DOE Announces $220M for Grid Modernization

By Michael Brooks

RTOs and ISOs will take part in 15 research and development projects awarded almost $38 million in funding by the Energy Department last week.

U.S. Energy Secretary Ernest Moniz last week announced $220 million in funding as part of the Energy Department’s Grid Modernization Initiative, an effort by the Obama administration to integrate new technology into the country’s energy infrastructure.

The department awarded the funds over three years, subject to congressional appropriations, to its national laboratories. The labs will partner with grid operators, energy companies, universities and local government agencies on 88 projects, ranging from advanced storage systems to improving transformer resiliency, to accommodate increased transmission from renewable sources.

“Modernizing the U.S. electrical grid is essential to reducing carbon emissions, creating safeguards against attacks on our infrastructure and keeping the lights on,” Moniz said. “This public-private partnership … will help us further strengthen our ongoing efforts to improve our electrical infrastructure so that it is prepared to respond to the nation’s energy needs for decades to come.”

The projects are based in part on recommendations from last year’s Quadrennial Energy Review. (See Federal Energy Review Calls for Billions of Dollars in Spending on Infrastructure.)

“A modernized grid will enable two-way communication and data flows, allowing operators to better understand the grid’s immediate operating status,” said Franklin Orr, DOE undersecretary for science and energy. “By having this information, operators can run the grid closer to its full potential and capabilities, resulting in greater efficiencies and reliability.”

PJM in 8 Projects

PJM will take part in eight projects, followed by ERCOT with six, MISO with five and ISO-NE, NYISO and SPP with three each, according to the department. CAISO is participating in one project.

Grid-Modernization-Projects-Involving-RTOs-ISOs-(US-Dept-of-Energy)-web-slider — Click for detailed description of projects.

The eight projects in which PJM is participating were awarded about $25 million. One involves enhanced grid modeling; the others address transmission reliability, said Emanuel Bernabeu, manager of applied solutions.

Bernabeu called the modeling project “critical.”

“Our load changes rapidly. The composition is changing, and the way the customer behaves is also changing,” he said. “Our model needs to be able to capture that. Otherwise, when I run a [model], it may not match reality.”

The project, which will cost $2.7 million, will be developed at Argonne National Laboratory in partnership with Iowa State University, ERCOT, Commonwealth Edison and Alliant Energy, among others.

The other projects span a wide range of grid reliability. One aims to improve situational awareness in the control room. Another project, a $3 million effort across eight of the labs, aims to enhance the modeling of extreme events, including cold weather, hurricanes and geomagnetic disturbances. “Extreme weather is becoming more prevalent now,” Bernabeu said.

SPP, MISO Team on Seams Project

SPP and MISO will be the key players in an effort to evaluate the HVDC and AC transmission seams between the U.S. interconnections, according to SPP. The $1.2 million Midwest Interconnection Seams Study “will explore timely questions about aging infrastructure and enhance existing regional and interregional planning processes,” said Lanny Nickell, SPP vice president of engineering.

“It’s a long overdue study. SPP has been recommending such a study to investigate the interconnections between the eastern and western grids,” said Jay Caspary, director of research, development and special studies for SPP. The project will also involve the Energy Department’s Western Area Power Administration, the Solar Energy Industries Association, Minnesota Power and Xcel Energy. “No individual regional planner can do this on their own,” Caspary said.

“This important work will play a key role as MISO continues to ensure reliability now and in the future,” said Jennifer Curran, MISO vice president of system planning and seams coordination.

Some RTOs’ Roles Unclear

It is unclear to what degree each RTO and ISO will play in the projects.

ISO-NE said it is only acting as an adviser to the labs for certain projects. NYISO said that, though it is listed on the department’s website, it declined to partner with it on WindView, a $1.8 million visualization program that would display wind forecast information along with system power flows in order to better monitor how wind power affects the grid as the resource becomes more prevalent throughout the U.S.

Companies Involved

Also among those participating in the projects are:

Utilities (including Southern Co., Dominion Resources, Tennessee Valley Authority, Duke Energy, National Grid, Louisville Gas and Electric);
Equipment suppliers (Alstom Grid, GE-Alstom, United Technologies);
Research organizations and universities (Electric Power Research Institute, George Washington University, UNC-Charlotte, Clemson University, University of Vermont, Regulatory Assistance Project, New York State Energy Research and Development Authority);
Trade associations (American Public Power Association, National Rural Electric Cooperative Association).

Suzanne Herel, Tom Kleckner, Amanda Durish Cook and William Opalka contributed to this report.

January 19, 2016

Company Briefs

Thomas Klink has been named CFO of Pioneer Power Solutions, a Fort Lee, N.J., manufacturer of electric transmission, distribution and generation equipment. He takes the place of Andrew Minkow, who left to pursue other opportunities.

Klink was formerly president of Jefferson Electric, a Pioneer Power subsidiary in Franklin, Wis., that builds transformers.

“I plan to focus on our bank relationships, stringent financial controls throughout our organization and facilitating profitable growth by maintaining tight expense management processes already in place,” Klink said.

More: Pioneer Power Solutions

Dominion Virginia Earmarks $9.5 Billion in Improvements

Dominion Virginia Power says it will spend $9.5 billion in capital improvements through 2020, including $700 million in solar facilities. The company said it will spend $2.4 billion on its distribution system, $3.6 billion on transmission lines and substations and $3.5 billion on new generation.

That does not count what its parent company will spend on its share of the Atlantic Coast Pipeline, a $5 billion project it is working on with several other companies.

More: Reuters

Exelon Completes Uprate at Peach Bottom Plant

Exelon Nuclear announced it has completed its multiyear uprate of Peach Bottom Atomic Power Station Unit 3, which boosts the capacity of the Pennsylvania reactor to 1,355 MW from 1,180 MW.

The company replaced high-pressure turbines, feed pump turbines, condensate pumps and motors and steam dryers. Its low-pressure turbines had already been upgraded. Peach Bottom Site Vice President Mike Massaro said that as part of the uprate “almost every major component in the plant has been upgraded or replaced, which makes Peach Bottom an even safer and more efficient facility.”

Peach Bottom is on the banks of the Susquehanna River near Delta, Pa., upstream from Exelon Generation’s Conowingo Hydroelectric Power Station.

More: Exelon

Battery Maker Files to Join PJM

Battery maker Axion Power International has filed an interconnection application with PJM for a site in Sharon, Pa., where it seeks to develop a 12.5-MW energy storage system.

The project will be located in a former steel fabrication facility about 60 miles north of Pittsburgh.

Axion plans to use the system to participate in PJM’s frequency regulation market. Start-up is expected in mid-2017, pending regulatory approval.

More: Axion Power International

Akins was ‘Skeptical’ About Sierra Club Partnership

News that American Electric Power forged a settlement with the Sierra Club while lobbying for its proposed power purchase agreement in Ohio struck many as an unlikely alliance, including Nick Atkins, AEP’s chief executive.

“I have to admit, initially I was skeptical of ultimately what the value would be,” he told Columbus Business First. “But in retrospect the fact that it’s much of a national story that AEP, a major coal-fired utility, could come together with Sierra Club on a common solution — I don’t know of anybody that’s done that in this position.”

The Sierra Club signed on to the proposed agreement, which would allow AEP to gain guaranteed income for some of its generating facilities for eight years, after the company committed to developing 900 MW of renewable energy in Ohio. The settlement still must be approved by the Public Utilities Commission of Ohio.

More: Columbus Business First

Exelon Generation’s Muddy Run Gets OK for Another 40 Years

FERC has given Exelon Generation’s Muddy Run Pumped Storage Facility on the banks of the Susquehanna River a 40-year license extension after the company promised a number of improvements to the site for recreation and to permit passage for American shad and American eels.

The company has committed to implement a shoreline management plan to control erosion and to manage debris. It also said it will implement improvements to allow eels to be trapped and transported upriver, to make conservation efforts for bald eagles, ospreys and bog turtles and to remove some small dams along its property.

More: Lancaster Online

Westar Adds 200 MW of Additional Wind Energy

Westar Energy has reached an agreement with an affiliate of NextEra Energy Resources to purchase another 200 MW of Kansas wind energy.

The utility will purchase power produced from the Kingman Wind Energy Center west of Wichita when the facility goes into service in early 2017. As part of the transaction, Westar will be given the option to purchase one-half of the facility before “substantial completion.” The wind farm is expected to bring more than $400 million in investments and payments to the area.

With this addition, Westar’s wind generation will surpass 1,700 MW.

More: Westar Energy

Arkansas Cooperatives File for SPP Membership Change

The Arkansas Electric Cooperative Corp. has filed with the state’s Public Service Commission to change its SPP membership status from a non-transmission-owning member to transmission-owning member.

AECC said in its Jan. 13 filing that it seeks the commission’s approval “to transfer control of current and future eligible transmission facilities to SPP as a means to modify its current non-transmission owning membership to transmission owning membership.” AECC said it will continue to “own, operate and be responsible for maintaining any transmission facilities under SPP’s control,” but that SPP will direct the day-to-day operation of the transmission facilities.

The Little Rock alliance of cooperatives requested a final order by June 1 and anticipates $1.3 million in revenue from use of its eligible facilities.

More: Docket 16-002-U

Tree Clearing, Squirrel Guards Help Prevent PPL Outages

PPL Electric Utilities says its grid improvement projects prevented power outages for 410,000 customers last year.

It credited tree clearing, its smart grid system and the installation of more animal guards to keep squirrels from damaging lines.

Customers are experiencing 30% fewer outages than in 2007, the company said.

More: PPL

Apex Seeks to Build Tenn.’s Largest Wind Farm

Apex Clean Energy is expecting to develop Tennessee’s largest wind farm, to be located in Cumberland County.

The $100 million project will involve erecting 20 to 23 wind turbines that will produce 71 MW annually. It’s scheduled to be in operation by the end of next year.

Apex, of Charlottesville, Va., also operates the Volunteer Wind farm in Gibson County.

More: Crossville Chronicle

FirstEnergy’s Perry Nuclear Gets New Site Vice President

David B. Hamilton has been named site vice president at FirstEnergy’s Perry Nuclear Power Plant in Perry, Ohio, replacing Ernie Harkness, who is retiring. Frank Payne will move into Hamilton’s previous position of general plant manager.

Hamilton has more than 23 years of experience in nuclear operations, coming to FirstEnergy Nuclear in 2012 from Entergy’s Waterford Plant in Louisiana. Before that he was at Entergy’s Palisades nuclear station in Michigan. He also held positions at various Exelon Nuclear stations.

Payne came to FirstEnergy from Duke Energy, where he held a number of positions at the Brunswick Nuclear Power Plant in Southport, N.C.

More: FirstEnergy

Duke’s Asheville Plant Hearing Will Go Ahead as Planned

North Carolina regulators turned down a request to delay a hearing for Duke Energy’s plan to replace a coal-fired plant near Asheville with two 280-MW natural gas-fired plants. Duke’s plan, which it proposed in response to opposition to an alternative to build a two-state transmission line, was fast-tracked by the state legislature last year.

Opponents to the plan, including environmental group NC WARN, had sought to delay the hearing on the plant in order to have an evidentiary hearing on the overall plan. The commission ruled Friday that to delay its January hearing would “frustrate and contravene the specific intent” of the legislature. NC WARN has said the new plants are not needed.

More: Charlotte Observer

Duke, Piedmont Gas File for NCUC Approval

Duke Energy and Piedmont Natural Gas on Friday formally sought approval from the North Carolina Utilities Commission for Duke’s acquisition of the gas company. The companies also filed with the Tennessee Regulatory Authority for approval of change of control of the gas company.

Duke asked the commission for accelerated approval of its plan to raise $4.5 billion to finance the $4.9 billion acquisition. As part of the deal announced late last year, Duke will assume $2 billion in Piedmont debt. If approved, Duke will become the largest investor-owned utility in the U.S.

More: Duke; Charlotte Business Journal

January 19, 2016

MISO Reliability Subcommittee Briefs

MISO Consulting Advisor Terry Bilke said MISO is ready for NERC’s new frequency response reliability standard.

“We’re good right now, and we don’t see anything on the horizon that would decline our performance,” Bilke told the Reliability Subcommittee on Wednesday.

The RTO reported that 18 governor scorecards were completed and returned by utilities as of early January, and scorecards covering Sept. 1, 2015, to Dec. 31, 2015, were sent out to local balancing authorities in preparation for the rule’s April 1 effective date (BAL-003-1).

The rule requires balancing authorities to meet an annual frequency response measure (FRM) “equal to or more negative” than its frequency response obligation. The FRM is the median of frequency response performances for 20 to 35 frequency events chosen throughout the year by NERC’s Frequency Working Group.

The frequency response obligation under MISO’s field trial is ‐211 MW/0.1 Hz. MISO’s median performance from September to November was estimated at -362 MW/0.1 Hz. Those 2015 results will be submitted to NERC by March 7.

MISO said it plans to continue to “work with local balancing authorities and generators to boost governor response where appropriate.”

Bilke said if MISO was found noncompliant by NERC, MISO would have to search generator by generator until it located the source of the noncompliance. “NERC has wide latitude in what penalties they can assess,” he said in response to questions on what consequences would result from non-compliance. “We can’t predict what would happen. It would depend on how bad, how non-compliant, how receptive the parties are to making it right.”

Bilke said the fines could be as much as $1 million per day, but he said there are several options MISO can make use of before it comes to penalties. “There are ways to adjust if we see problems on the horizon.”

“I’d like frequency response to be a formal issue of the Reliability Committee. For the future, especially in light of folks concerned over the Clean Power Plan, I think this should be a formal issue,” Reliability Subcommittee Chair Tony Jankowski said.

Preparation for the rule’s deadline continues with MISO’s next governor collaboration call taking place Jan. 22.

MISO: November and December ‘Uneventful’

Senior Real Time Operations Engineer Steve Swan reviewed what he called “two relatively uneventful months” in the November and December operations updates. Swan said there weren’t any areas of concern. November’s load averaged 68.9 GW, about even with October’s load, and 6.6 GW lower than November 2014. During December, load peaked at 87.1 GW on Dec. 17, down from December 2014’s peak of 93.1 GW.

In both November and December, real-time unit commitment performance was rated “excellent” on a daily basis. Real-time unit commitment performance at peak hours was also consistently rated excellent, with the lone exception of Nov. 23, when it was given a “good” rating. December, however, achieved near-perfect ratings every day of the month.

“This is the report through December you hope to expect,” Swan said.

Neither November nor December had any capacity shortages or any periods of load so light that generators had to operate at emergency minimum levels. During the two months, there also weren’t any reliability issues. Swan said generator maintenance was on the rise in October and planned generator outages remained high during November before tapering off in December as maintenance season drew to a close.

MISO said during December, day-ahead and real-time LMPs were at their lowest levels since January 2009, when the ancillary services market was launched. The RTO credited the dip to reduced congestion.

— Amanda Durish Cook

January 19, 2016

ERCOT Energy Use up 2.2% in 2015; Wind Surpasses Nuclear

ERCOT reported a 2.2% increase in energy usage within its region of Texas in 2015, fueled by a record-breaking summer that brought a new peak demand record approaching 70,000 MW.

The Texas grid operator released a report Jan. 15 that indicated the system consumed 347,522,945 MWh of electricity last year, nearly 7.5 million MWh more than in 2014.

According to ERCOT’s 2015 Demand and Energy Report, wind accounted for 11.7% of the grid’s energy consumption, surpassing nuclear (11.3%) as a generating source for the first time. In 2010, the nuclear and wind numbers stood at 13.1% and 7.8%, respectively.

Natural gas remains the primary fuel at 48.3% — a 17.5% increase over its 2014 share — with coal supplying 28.1%.

ERCOT’s system set a series of peak demand records in August during the region’s hottest summer since 2011. By summer’s end, the system had topped 67,000 MW of demand for the first time in four years, eventually setting a new peak demand of 69,877 MW and recording its five highest peak demands:

10: 69,877 MW
11: 69,775 MW
6: 68,979 MW
7: 68,731 MW
5: 68,683 MW

ERCOT also set new records for monthly energy use (36,975,136 MWh in July), July peak demand (67,650 MW) and weekend peak demand (66,587 MW on Aug. 8).

ERCOT manages about 90% of Texas’ electric load, representing 24 million customers. It estimates 1 MW serves about 200 homes during summer peak demand and about 500 homes during milder weather conditions.

— Tom Kleckner

January 19, 2016

State Briefs

State Auditor Doubts Energy Efficiency Initiative

State Auditor Tom Wagner says an energy efficiency project involving state buildings in the capital would cost taxpayers $8 million over 20 years but yield energy savings of only $2.7 million. “The possibility of the state breaking even on this agreement is looking bleak,” he said.

The project to upgrade the Legislative Mall buildings in Dover is part of a broader $67.4 million conservation effort undertaken by the Sustainable Energy Utility, a quasi-public agency established in 2007 to reduce energy consumption.

Tony DePrima, the SEU’s executive director, said the auditor’s report was unfounded. “These are fairly complex energy efficiency projects,” he said. “I don’t think they understand the protocols or standards being used, especially since they didn’t consult with any experts in the field of energy engineering.”

More: The News Journal

INDIANA

Activists Concerned Utilities Connecting Wind Tx Line to Coal Plants

Environmentalists are concerned that two proposed transmission lines that Northern Indiana Public Service Co. is touting to deliver wind power will actually be used to transmit excess electricity from coal-fired plants.

Kerwin Olson, executive director of Indianapolis’ Citizens Action Coalition, said the lines could connect to several coal-fired generators belonging to Duke Energy and American Electric Power. Duke Energy and AEP jointly own Pioneer Energy, which is a partner with NIPSCO on the 65-mile project.

“We have utility companies who are continuing to invest billions of dollars in aging coal plants that really should be retired and replaced with clean energy, so Indiana isn’t doing so well,” Olson said. “We seem to be doing everything in our power to maintain our addiction to coal.”

More: Public News Service

IOWA

Rock Island Clean Line Process Request Turned Down Again

State regulators again turned down Clean Line Energy Partners’ request to consider the necessity of its transmission line proposal without requiring it to first acquire the rights of way for the power line. Clean Line said it may not proceed with the Rock Island Clean Line project if the Utilities Board continues to require full right-of-way approval before the project’s route or need are determined.

The IUB on Monday rejected Clean Line’s third request to separate the proceedings, saying both state law and board regulations call for a single proceeding to determine all those issues.

More: Midwest Energy News

MICHIGAN

Lawmaker to Concentrate on Energy Laws in 2016

Senate Majority Leader Arlan Meekhof, in his first year leading the Republican-dominated chamber, said that making the state’s electricity markets more competitive is a priority in 2016.

Meekhof said lawmakers are considering whether to allow competitive bidding for new electric generation to reduce reliance on the state’s two dominant electric utilities, DTE Energy and Consumers Energy. He said the process could encourage independent power producers to propose alternatives to replace retiring coal generators.

“Some of the discussion around it is it can’t just be the big two,” he said. “There may be other people who have smaller generating things that might be able to add on at a relatively inexpensive cost and then generate more energy and incrementally bring up the amount of energy we need as the demand is there — as opposed to building [a] 500-, 600-, 700-MW plant one time.”

More: The Associated Press

Consumers Extends Biomass Plant’s Power Purchase Agreement

Consumers Energy has extended a power purchase agreement with Hillman Power’s 20-MW wood-burning plant for another 17 months.

The agreement’s termination now coincides with the Public Service Commission’s timeframe to review federal laws that oversee contracts between regulated utilities and smaller, renewable electricity generators.

The power plant, which is owned by Fortistar, said the contract extension saved about 100 direct and indirect jobs. The power plant employs about 20 people and spends about $3.5 million a year to buy local wood.

More: WBKB 11

MINNESOTA

Scandia to Build 5-MW Community Solar Garden

The city of Scandia, population 3,936, is embracing a $12.5 million community solar garden that private investors are building on a former 59-acre gravel pit. Scandia Mayor Randall Simonson said he wants the facility to be a showcase for other communities.

“It shows people as soon as they cross the border into Scandia, ‘Hey, look at what they’ve got here,’” Simonson said.

SolarStone Partners is slated to begin construction of the 5-MW project this spring. Subscribers will receive credits to lower their Xcel Energy bills.

More: Pioneer Press

Judge Advances Great Northern Line Route

An administrative law judge has sanctioned most of the route on Minnesota Power’s proposed 220-mile Great Northern Transmission Line, which would import power from Manitoba Hydro.

Judge Ann O’Reilly concluded that the 500-kV line’s route largely satisfied permit criteria, except for a segment in Itasca County.

The Public Utilities Commission is expected to vote on the project in March. The U.S. Department of Energy would then decide whether to grant Minnesota Power a permit to build the line. Minnesota Power says the line will cost up to $710 million.

More: Grand Forks Herald

MONTANA

Regulatory Panel Averts Shutdown of Coal Mine

A deal to keep an underground coal mine running includes a confidential secret side agreement between the owner and an environmental group that had argued state officials failed to properly examine the long-term groundwater impacts of expanding the mine.

The Board of Environmental Review on Jan. 12 approved the agreement between Signal Peak Energy, the Montana Environmental Information Center and the state Department of Environmental Quality. The deal gives the DEQ six months to revise its environmental analysis to correct problems the board found when the agency previously approved the expansion of Bull Mountain Mine.

The agreement includes a paragraph that says the Montana Environmental Information Center and Signal Peak reached a separate, confidential agreement that includes other “material terms.” Neither the mine owner nor the environmental group said they could discuss the terms of their truce.

More: The Associated Press

NEW HAMPSHIRE

Site Evaluation Committee Hearings on Northern Pass Begin

The Site Evaluation Committee held its first county hearing on the controversial Northern Pass transmission line project. The session was held in Franklin, whose mayor has enthusiastically embraced the $1.6 billion project that would deliver Canadian hydropower to New England.

A crowd of 250 people heard project representatives say Northern Pass is the best alternative to bring energy into New England. They said a substation in Franklin would pay about $7 million annually in property taxes. The money would be used to improve city services, Mayor Ken Merrifield said.

Several in the audience wore orange “Trees Not Towers” shirts in opposition to the project and applauded questioners who said the visual impact of the project could not be justified.

More: New Hampshire Union Leader

NEW YORK

Hydro Plant Proposed on Canal near Albany

A new 10-MW hydroelectric power plant is being proposed for Lock C1 on the Champlain Canal in Waterford, north of Albany.

Albany Engineering has filed for a preliminary permit with FERC for the new facility, which could also be reduced in size to produce 4 MW.

The firm has designed or rebuilt many of the hydro power plants upstate, but it did not disclose the identity of its latest client.

More: Times Union

Plan Could Offset Tax Revenue Loss

Gov. Andrew Cuomo has proposed creating a $19 million fund to help local communities cope with the loss of property taxes after the closure of the coal-fired Huntley power plant. Cuomo has pledged the closure all coal generation in the state by 2020.

The Town of Tonawanda and Ken-Ton School District will lose $5 million in annual revenue after the plant closes in March. “Based on what I’ve heard and what I’ve read, it looks like we’re going to be eligible for that pot of money and we’re going to be aggressively seeking it,” Town Supervisor Joseph H. Emminger said.

The Just Transition Coalition, composed of the Clean Air Coalition, labor unions and teachers associations, has been lobbying to secure money to make up the expected loss of revenue for the town on the Niagara River, north of Buffalo.

More: Buffalo News

NORTH DAKOTA

Commissioner Withdraws from Dakota Access Pipeline Process

One of three members of the Public Service Commission has recused himself from voting on a proposed pipeline that would transport crude oil from the state’s Bakken Formation to out-of-state markets.

Commissioner Randy Christmann said that the Dakota Access Pipeline’s revised proposed route would cut across the property of his mother-in-law, who is currently negotiating an easement. The remaining two members of the commission are expected to vote on the matter Jan. 20.

The 1,134-mile pipeline would deliver 450,000 barrels of crude oil per day from the state to Patoka, Ill. Dakota Access has negotiated voluntary easements for 95% of its state route.

More: Forum News Service

OHIO

Duke Customers Entitled to Payout Under Class Action Suit

About a million customers of Duke Energy in the state have until April 13 to file a claim to be included in an $81 million class-action settlement, which resolved claims that the utility illegally paid rebates to large commercial and industrial customers at the expense of smaller customers.

Plaintiffs in the federal case alleged that Duke paid rebates from 2005 to 2008 to large customers including General Electric, Procter & Gamble and AK Steel in violation of antitrust laws. Duke, while denying wrongdoing, agreed to settle the suit.

Under the settlement, residential customers could receive from $40 to $400 each, while commercial customers could be entitled to as much as $6,000. About $8 million of the settlement will be set aside to improve energy efficiency programs. A federal judge in Columbus is expected to give final approval in April.

More: The Cincinnati Enquirer

OKLAHOMA

Regulators Order Wastewater Injection Reduction in Wake of Earthquakes

The Corporation Commission has ordered the operators of 27 wastewater disposal wells to reduce wastewater injections after a swarm of earthquakes unsettled residents northwest of Oklahoma City.

The order comes about a week after a series of earthquakes jarred the Fairview region. None of the recent temblors caused damage or injuries, but commission members are listening to experts who have drawn a connection between wastewater injections and the increase in the seismic activity.

The Oklahoma Geological Survey has said it is “very likely” the quakes are being triggered by the injection of wastewater produced from oil and gas wells, which has increased dramatically in volume because of the growth of shale drilling.

More: The Associated Press

Asst. AG Criticizes PSO’s Smart Meter Opt-Out Plan

The attorney general’s office has taken issue with a plan by Public Service Company of Oklahoma to charge customers who decline to allow a smart meter to be installed.

Assistant Attorney General Dara Derryberry criticized an administrative law judge’s report favoring the opt-out charges. PSO wants to charge a one-time fee of $183 and a monthly charge of $28 to customers who opt out of its smart meter program. The utility says that it will need to manually read the meters of customers who decline the wireless devices.

Derryberry said the proposed fees were excessive when compared to opt-out fees in 11 other states and in a recent proposal by Oklahoma Gas and Electric. Derryberry said the Corporation Commission should defer a decision on opt-out fees until PSO finishes installing the devices in September.

More: The Oklahoman

PENNSYLVANIA

PUC Plans Hearing to Study Alternative Ratemaking Methods

The Public Utility Commission will hold a hearing March 3 focused on alternative ratemaking methods for the state’s natural gas and electric utilities.

The hearing is part of the commission’s effort to promote energy efficiency and conservation programs.

Forum topics will include revenue decoupling and whether such rate mechanisms are fair to consumers.

More: Natural Gas Intel

RHODE ISLAND

Plant’s Climate Impacts Review to Come

State regulators have rebuffed an attempt by the Conservation Law Foundation to stall Invenergy’s application for its 1,000-MW Clear River Energy Center because of the proposed gas-fired power plant’s climate impacts.

CLF had argued the application was incomplete because it failed to fully outline the projected climate effects of the plant under the Resilient Rhode Island Act, a 2014 law that calls for a reduction in greenhouse gas emissions. The Energy Facility Siting Board agreed on the importance of the act, but it ruled that more information on emissions could be submitted later.

Invenergy estimates the new plant would reduce emissions across New England by about 1% because the power plant would displace older fossil fuel-fired power generators.

More: Providence Journal

SOUTH DAKOTA

Environmental Agency Plans CPP Extension Request with EPA

The Department of Environment and Natural Resources is taking a two-pronged approach as it prepares to respond to EPA’s Clean Power Plan, which seeks to reduce carbon emissions from power plants.

The DENR is participating in a lawsuit with 24 states opposing the CPP. At the same time, it plans to develop a state compliance proposal, should the lawsuit fail. The department will seek public input in the coming months, request a two-year extension from EPA by the Sept. 6 deadline and then finalize a state CPP for submittal to EPA by Sept. 6, 2018.

More: Butte County Post

TEXAS

PUC Urged to Reject Oncor Sale on Ratepayer Concerns

The chief executive of Oncor told state regulators last week that the plan to sell the company out of bankruptcy to Dallas billionaire Ray L. Hunt is not in the public interest.

Oncor CEO Bob Shapard’s testimony adds to a chorus of concerns raised by consumer advocates who asked the Public Utility Commission to reject the sale, arguing it will enrich Hunt and his group of private investors at the expense of ratepayers.

The sale of Oncor, the transmission arm of Energy Future Holdings, is the linchpin in the parent company’s plan to emerge from bankruptcy proceedings and reduce $42 billion in debt. The sale to Hunt Consolidated needs the blessing of utility commissioners, who are not expected to decide before March.

More: The Dallas Morning News

VIRGINIA

State Board Approves Dominion Coal Ash Drainage Plan

The state Water Control Board has approved a plan allowing Dominion Virginia Power to start draining its coal ash ponds into the James and Potomac rivers, overriding vocal opposition from citizen and environmental groups.

Dominion, in its application, said its plans to drain the coal ash ponds at the Bremo Power Station on the James River and the Possum Point Power Station on the Potomac River met all state and federal laws, including a rule last year setting new discharge limits on power plants. “This approach complies with all current federal and state regulations, including the newly promulgated EPA rule,” said Cathy Taylor, Dominion’s director of electric environmental services.

The James River Association and the Southern Environmental Law Center had filed opposition to the plans. The water board’s final hearing was attended by more than 100 opponents.

More: Capital News Service

WISCONSIN

Assembly Passes Measure to End Nuclear Moratorium

The State Assembly last week voted to lift a moratorium on developing nuclear generation, sending the bill to the State Senate for consideration. The Republican-backed bill would lift a state law blocking new nuclear generation without the formation of a national repository for nuclear waste.

The measure also does away with a requirement that any new nuclear plant would not burden ratepayers. Democrats in the Republican-controlled Assembly voted against the measure.

The state is home to a single nuclear generating station, Point Beach, owned and operated by NextEra Energy Resources. The Kewaunee Power Station, another nuclear station in the state, was retired by Dominion Resources in 2013.

More: The Associated Press

January 19, 2016

OMS IDs Capacity, DR, Cost Allocation as Key 2016 Issues

By Amanda Durish Cook

The Organization of MISO States board approved its 2016 Strategic Initiative on Thursday, calling for the RTO to focus on issues including resource adequacy, capacity, demand response and cost allocations under the settlement of the SPP transmission dispute.

“There were several different focus areas,” said OMS President Sally Talberg, of the Michigan Public Service Commission.

At the request of Minnesota Public Utilities Commissioner Nancy Lange, the strategy document was amended to include mention of MISO’s stakeholder redesign.

The board also discussed MISO’s queue reform. (See MISO Unveils Queue Reform Transition as Wind Advocates Seek Delay.) Lange said MISO contacted Minnesota officials to solicit feedback on the changes. Minnesota has “bumped up against queue restraints in the past,” Lange said, adding that the reform will be a welcome change.

Comments on MISO’s queue reform filing are due to FERC on Jan. 28. OMS Executive Director Tanya Paslawski said the group is determining if and what’s appropriate to file.

Members also discussed FERC’s Dec. 31 ruling ordering MISO to change the way it conducts capacity auctions. (See FERC Orders MISO to Change Auction Rules.) Several regulators said they’d like to see changes to the auction rules.

“We don’t have the jurisdictional authority to say, ‘MISO you must do this.’ That’s up to FERC, but at the end of the day, MISO knows that as a state, we’re very discontented right now,” Illinois Commerce Commissioner Sherina Maye Edwards said. “We can address these Zone 4 issues without negatively impacting other states.”

Talberg said Michigan is also following the capacity auction issue closely. “We’re a kind of a fish-out-of-water state in that we are a hybrid state,” she said. Michigan caps retail choice at 10% of each utility’s retail sales.