Dynegy CEO: Exelon Bill Endangers Jobs, Plants
Legislation proposed by Exelon that would impose a customer surcharge to provide more revenue for its Illinois nuclear fleet would put jobs at risk at competing coal-fired power plants, Dynegy CEO Bob Flexon said. “It’ll have a severe economic impact on jobs downstate,” he told Crain’s Chicago Business, placing Dynegy’s plants “more at risk for shutdown.”
“What I would like the Legislature to avoid is disrupting the market by introducing a subsidy for one generator at the expense of other generators,” he said. (See Exelon-Backed Bill Proposes Surcharge to Fund Illinois Nukes.)
More: Crain’s Chicago Business
INDIANA
Small Railroad Wants to be Heard in IPL Fuel Switch
Indianapolis Power & Light wants to switch its Harding Street plant from coal to natural gas. Cleaner fuel, more modern plant, better reliability, right? Who would complain?
Well, the small railroad that last year delivered 1 million tons of coal to the plant might. The Indiana Utility Regulatory Commission has recognized Indiana Rail Road Company to be an intervenor in the case. “This conversion will have a substantial, adverse financial impact,” the company wrote. The status as intervenor will allow it to cross-examine IPL witnesses. The rail company has not said whether it will try to stop the fuel conversion.
More: The Indianapolis Star
KENTUCKY
Landfill Project Will Generate Electricity from Methane Gas
The East Kentucky Power Cooperative plans to begin construction next month on a landfill-gas power plant after receiving approval from the Kentucky Public Service Commission.
The facility at the Glasgow Regional Landfill, which will generate electricity from methane gas produced from buried trash, could be operating by September. Other landfills in the state have embarked on such projects over the past decade.
EKPC, comprised of 16 owner-member distribution cooperatives, will purchase the methane gas from the city-owned landfill, and Farmers Rural Electric Cooperative Corp. will buy the electricity produced from the facility.
More: Glasgow Daily Times
MARYLAND
Hogan to Sign Bill Opening Transmission Construction to Non-Incumbents
Gov. Larry Hogan is scheduled to sign a bill Tuesday opening transmission construction to non-incumbent transmission developers.
Senate Bill 460 authorizes persons other than “electric companies” to obtain a certificate of public convenience and necessity (CPCN) to build overhead transmission at or above 69 kV and to obtain land access through condemnation proceedings. Under current law, that authority was limited to existing electric distribution companies — companies already delivering power to retail customers. The bill allows a transmission developer with a regionally cost-allocated project to obtain a CPCN if the Public Service Commission finds the permit is in the best interest of state residents.
The bill was backed by LS Power and NextEra Energy, two competitive developers seeking to gain business as a result of the Federal Energy Regulatory Commission’s Order 1000, which eliminated incumbent transmission developers’ federal rights of first refusal (ROFR). Order 1000 does not bar state ROFR preferences, but FERC Chairman Norman Bay has suggested such laws may be unconstitutional. (See FERC Rejects Rehearing Request on SPP Order 1000 Filing.)
More: Md. Department of Legislative Services
MICHIGAN
Democrats Propose Bill to Double Renewable Standards
While Republicans in Lansing are looking to gut or abandon the state’s renewable energy standard, Democrats are seeking passage of a bill that would double the clean energy standards. The bill, “Power Michigan’s Future,” was introduced last week and now heads for Republican-controlled committees.
The legislation would double the renewable portfolio standard, to 20% by 2022, while also increasing energy efficiency standards to 2% of a utility’s annual sales by 2019.
More: Midwest Energy News
Detroit Zoo Energy Plans: 400 Tons of Animal Manure
The Detroit Zoo is raising funds for a proposed power generator that would be fueled from something it has plenty of: animal manure. It is using an online crowdsourcing site – Patronicity.com – to help it obtain $55,000 in funds to match an offer by the Michigan Economic Development Corporation.
The zoo wants to build a biodigester that would capture methane from the manure to generate both heat and power for the zoo’s 18,000-squre-foot Ruth Roby Glancy Animal Health Complex. The zoo estimates it could save between $70,000 and $80,000 a year in energy costs. “The biodigester will turn one of our most abundant resources – manure – into energy, and represents a significant step on our green journey,” said Detroit Zoological Society CEO Ron Kagan.
More: MLive
NEBRASKA
Wind Energy Credit Bill Advances in Legislature
A bill that would create a wind energy tax credit moved forward last week with a 25-3 vote in the Senate. The bill would provide for a 1-cent tax credit per KWh of power produced. The credit would decline by a tenth of a cent every two years, and then end after 10 years. The federal wind energy tax credit, which expired last year, was 2.3 cents per KWh.
The bill’s sponsor, Sen. Jeremy Nordquist of Omaha, said the wind industry is ready to step in to replace production that will be lost from coal-fired plants being forced into retirement by federal emissions standards. The state has a high amount of potential wind energy, but ranked only 18th in the nation in production while neighbor Iowa was first.
Iowa is one of six states with state production tax credits, according to a report last year by the Iowa Department of Revenue. “We need to be in the game,” Nordquist said. “Right now, without a [state] production tax credit, we are not in that game.”
More: Omaha World-Herald
NEW JERSEY
BPU Investigating JCP&L’s Operations, May Order Audit
The Board of Public Utilities has ordered its staff to examine Jersey Central Power & Light’s operations, finances and customer service, and indicated that the initial probe could extend into a full audit. The team conducting the probe is expected to report back to the board by its next meeting in May.
JCP&L has been the target of frequent criticism for its outages. The FirstEnergy subsidiary was handed a blow earlier this year when the BPU signed off on a rate case that reduced revenue by $115 million.
While JCP&L has upgraded substations to improve reliability, regulators have said the company is still under the microscope. “Even today, there lingering concerns about operations and management of the company,” said BPU President Richard Mroz.
More: NJSpotlight
Three N.J. Utilities Issue RFPs To Increase Solar Certificates
While not ready to build their own solar facilities, three utilities in New Jersey are seeking power purchase agreements with solar generators for about 80 MW of solar capacity. Atlantic City Electric, Jersey Central Power & Light and Rockland Electric Company are looking to secure Solar Renewable Energy Certificates to satisfy state mandates.
The three-year SREC program, certified by the Board of Public Utility’s Office of Clean Energy, awards one SREC for each MWh of solar generation. ACE is looking for 23 credits, JCP&L is in the market for 52 credits and Rockland needs 4.5 credits.
More: PV Magazine
NEW MEXICO
PRC Nixes Public Service’s Plan To Shutter San Juan Unit
The Public Regulation Commission’s refusal to allow Public Service Co. of New Mexico to shut down one half of its coal-fired San Juan Generating Station to meet federal emissions standards could spell trouble for the plant’s future, according to the company.
Public Service wants to retire two of the plant’s four units, and install emissions controls on the other two. While the hearing examiner agreed to closing the units, he nixed the company’s proposal to absorb 132 MW of excess coal capacity in one of the remaining two units. The company said its plan is necessary because some of the plant’s co-owners will pull out in 2017.
“The consequences of such a decision will likely lead to a collapse of the restructuring of the San Juan ownership interests … and ultimately endanger continued operations at San Juan,” the company wrote in a filing last week. If Public Service has to find outside sources for the lost generation, rates could increase for customers, it said.
More: Albuquerque Journal
NEW YORK
Anti-Fracking Report Due Out Soon
A several-thousand-page document that will lay out the rationale for prohibiting hydraulic fracturing will be released soon, state Environmental Conservation Commissioner Joseph Martens said. The Supplemental Generic Environmental Impact Statement will end seven years of study that paves the way for Martens to issue an order preventing large-scale fracking.
In December, Martens said he would move to prohibit high-volume fracking “at this time” after state Acting Health Commissioner Howard Zucker issued a report recommending against proceeding, citing concerns about health risks and gaps in science.
To formalize a ban, the state Department of Environmental Conservation has to complete the environmental impact statement. State law mandates the document must be available for public review for at least 10 days before Martens issues a “findings statement,” the legal document that would finalize the state’s decision.
Caithness Long Island Says 2nd Plant Could Save $192 Million a Year
Caithness Long Island Energy, which already operates a 350-MW plant in the center of Long Island, released a study that says construction of a second plant could lower regional energy costs up to $192 million a year.
The company said its proposed 750-MW Caithness II plant in Yaphank would also decrease the island’s dependence on power imports and on older plants. The company released the report after PSEG Long Island, operator of the local distribution company, announced that no new sources of power were necessary until 2024.
Caithness President Ross Ain called PSEG’s analysis “one-dimensional” and said it didn’t take into account other savings from both the proposed plant and from Caithness I. PSEG Long Island’s parent company also produces power that would be in competition with the Caithness project.
More: Newsday
NORTH CAROLINA
Most Wells Near Duke Ash Ponds Show Contamination
State environmental regulators issued health warnings after some tests of private water wells near Duke Energy’s coal ash ponds showed contamination. The Department of Environment and Natural Resources said that 87 of 117 test results mailed recently to property owners cited contamination that exceeded state water safety standards.
The state indicated that the water would pass federal standards for municipal water supplies. Nevertheless, the state included warnings not to use the water for drinking or cooking.
While the tests have not yet shown a direct link between the coal ash ponds and the contaminants, many of the contaminants were those often found in coal ash, such as toxic heavy metals. Duke said it believes the high levels of contaminants are naturally occurring. “Based on the test results we’re reviewed thus far, we have no indication that Duke Energy plant operations have influenced neighbors’ well water,” the company said.
More: The Charlotte Observer
Officials Approve Offshore Seismic Surveys With Some Caveats
The state Division of Coastal Management gave the go-ahead for seismic surveys off the North Carolina coast by two oil and gas exploration companies.
Although Spectrum Geo Inc. and GX Technology now have state permits, they still need approval from the Bureau of Ocean Energy Management and the National Marine Fisheries Service. The state division also set other conditions, such as conducting the surveys at times that don’t conflict with recreational fishing tournaments, avoiding certain protected habitats, and following federal mitigation methods to reduce or eliminate impacts to marine life.
More: Carteret County News-Times
Attempt to Scale Back RPS Foiled by House Vote
A House committee voted against an attempt to roll back renewable portfolio standards. House Bill 681 would have allowed utilities to freeze the amount of renewable energy they procure at 6% for the next three years. The current Renewable Energy and Energy Efficiency Portfolio Standard requires utilities to obtain 12.5% of their energy from renewable sources by 2021. The bill was defeated in committee 15-14.
More: WRAL
Duke Energy Moves Ahead With N.C. Solar Construction
Duke Energy is on track to complete three more utility-scale solar projects by the end of the year as part of a $500 million investment in North Carolina solar: the 65-MW Warsaw facility in Duplin County; 40-MW Elm City plant in Wilson County; and the 23-MW Fayetteville Solar Facility in Bladen County.
Duke is also building a 13-MW solar plant at Marine Corps Base Camp Lejeune. The company said last week that it will employ more than 900 workers on the plants at the peak of construction.
More: The Charlotte Observer, Duke Energy
PENNSYLVANIA
PUC Gives Initial Approval To New AEPS Regulations
The Public Utility Commission voted unanimously to revise the state’s Alternative Energy Portfolio Standards with new rules for net metering customers. The rules would allow “customer-generators” to produce up to 200% of their annual power needs, receiving retail prices for any excess they sell to the grid. The rules also would reduce PUC deadlines for approving net metering applicants.
Final approval is pending a comments session. The AEPS requires distribution companies and generation suppliers to source 18% of electricity from alternative sources by 2021.
More: The Philadelphia Inquirer, PUC
FirstEnergy’s Bruce Mansfield Plant Tagged with Notice of Violation
The Department of Environmental Protection issued a notice of violation to FirstEnergy Corp. for emissions at its Bruce Mansfield coal-fired plant in Shippingport. The DEP said that the plant’s Unit 2 stack exceeded emissions limits earlier this month. The NOV did not identify the emissions.
Workers at the plant found a leak in a duct and repaired it, a plant spokeswoman said. A DEP spokesman said union employees at the plant brought the issue to the attention of state regulators, and that “served as a way to gets us out there.”
More: Pittsburgh Post-Gazette
VIRGINIA
Dominion to Close All Ash Ponds in Virginia
Dominion Virginia Power said it will be closing all ash ponds at its Virginia power plants. The announcement came following the finalization of coal-ash disposal rules by the Environmental Protection Agency.
Virginia is the northern neighbor of North Carolina, which has been the scene of coal-ash legal action and legislation following a massive spill of toxic coal ash from a retired Duke Energy plant on the border of the two states. Dominion said it would close coal ponds at its Chesterfield Power Station near Richmond, the Bremo Power Station in Fluvanna County, the Chesapeake Energy Center in Chesapeake and the Possum Point Power Station in Prince William County.
The company said the ponds would be drained and sealed with a liner that would covered with a 2-foot layer of earth.
More: The Roanoke Times
McAuliffe Signs Clean Energy Bills on Earth Day
Gov. Terry McAuliffe signed several bills aimed at encouraging clean energy production, energy efficiency and jobs production:
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- HB 2267/ SB 1099: A bill creating the Virginia Solar Development Authority, which aims to spur construction of solar facilities;
- HB 1950/ SB1395: Doubles allowable generation capacity of a solar net energy metering facility;
- HB 2237: Authorizes utility cost recovery for construction or purchase of a solar facility with capacity over 1MW and establishes that 500MW of solar generation are in the public interest;
- SB 1331: Clarifies how costs are evaluated by the State Corporation Commission to increase approval of natural gas energy efficiency programs;
- HB 1446 /SB 801: Expands the Property Assessed Clean Energy (PACE) program, which creates loan programs for localities to finance energy efficiency projects on commercial buildings using private capital; and
- HB 1843/ SB 1037: Extends $500 per job Green Jobs Tax Credit for three years to July 1, 2018
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Some environmentalists applauded the move, but said more action is needed. “The fact that we’re celebrating Earth Day by witnessing several pieces of clean energy legislation get signed into law is proof of the growing movement in Virginia demanding solutions to climate change,” said Dawone Robinson of the Chesapeake Climate Action Network.
“Virginia currently has only 11 MW of solar installed, and that figure is embarrassingly low, especially compared to our neighbors. Virginia has as much or more solar potential than Maryland and North Carolina, yet those states have more than 200 MW and 950 MW of solar currently installed respectively thanks to much stronger state policies.”
More: Gov. McAuliffe, Chesapeake Climate Action Network
WISCONSIN
Contested Transmission Line Gains PSC Approval
The Public Service Commission last week approved the Badger-Coulee transmission project, and now land agents are fanning out to acquire the easements upon which it will be built. The 345-kV, $580 million line is a joint venture of Xcel Energy and American Transmission Co.
With the PSC’s approval, the companies received permission to pass the cost of the line on to consumers across the Midwest. The line is part of a larger project, the CapX2020, which will run across Minnesota and Wisconsin.
Construction work on that line is already underway. ATC and Xcel say the lines will provide a way to deliver cheaper wind-generated power to consumers.
More: Lacrosse Tribune
Alliant to Build $750 Million Gas-fired Plant in Wisconsin
Alliant Energy Corp. is seeking authority to build a $750 million combined cycle gas plant in Wisconsin, its first application for new generation since regulators rejected its 2008 proposal to build a coal-fired plant. The company is also proposing to build a new 2-MW, $9 million solar facility next to the gas plant.
The solar facility, if approved and constructed, would be the second largest in the state. The proposed gas-fired plant would be rated at about 700 MW. The proposal for the new complex coincides with Alliant’s plans to retire a coal-fired facility in Cassville, Wis. and coal boilers in Sheboygan to comply with an environmental settlement reached with federal regulators several years ago.
More: Journal Sentinel
