Search
`
October 31, 2024

MISO Board to Review Entergy Lake Charles Project Following Stakeholder Pushback

By Chris O’Malley

Entergy’s request for a $187 million transmission upgrade near Lake Charles, La., will receive a “full review” by MISO’s board following stakeholder dissent over its classification as an out-of-cycle project.

At the Planning Advisory Committee meeting last week, the transmission developer and independent power producer sectors voted against MISO staff’s conclusion that the request by Entergy qualified as an out-of-cycle reliability project. The vote was 2.2 in favor of the recommendation, two against and 4.8 abstaining.

Five smaller out-of-cycle proposals by Entergy received votes of 3.2 in favor and 3.8 abstaining, with the transmission developers voting against.

The MISO board must approve all out-of-cycle requests but only conducts “full” reviews for those receiving negative votes at the PAC.

George Dawe, vice president of Duke-American Transmission Co. and the representative for the transmission developers, told the PAC that MISO had failed to follow its procedures in all of the out-of-cycle requests and that the Lake Charles project failed to meet MISO’s out-of-cycle criteria.entergy

MISO’s transmission planning rules allow out-of-cycle consideration for reliability needs identified after the deadline for inclusion in the annual Transmission Expansion Plan if the project is needed within three years and expected in service within four years. Entergy submitted the request last December, saying increased industrial demand requires the project be completed by June 2018.

Dawe argued that Lake Charles isn’t a baseline reliability project. He also said Entergy had not defined the new load it is citing as the need for the project. He said the scope of the project — including two new substations and 25 miles of 500-kV and 230-kV transmission — appears to be speculative, “beyond what is needed to reasonably serve load.”

Jeff Webb, MISO’s director of planning, repeatedly pressed Dawe to specify exactly how MISO was deviating from established procedures. He also asked that opponents state what alternatives they would suggest while still meeting the June 2018 in-service date sought by Entergy.

“I have trouble seeing how we are deviating from the process,” Webb said.

Stakeholders: Not Enough Details to Justify

“Generally,” Dawe replied, “more information has to be provided regarding this OOC project.”

Dawe said he would like to see evidence that MISO verified Entergy’s load requirements and consideration of alternatives to the project as proposed. “In our view … this project is ripe for [a] market-efficiency project” that could serve ratepayers more efficiently and cost-effectively, Dawe said.

MISO officials told the South Technical Study Task Force on Feb. 11 that they studied alternative ways to route power to the growing area but all were fraught with performance or permitting problems. (See Stakeholders Again Light up MISO over Support for Entergy Out-of-Cycle Upgrade.)

Webb said that if MISO spent another month determining whether Lake Charles qualified as an efficiency project and should be opened to competition, it’s likely that “we wouldn’t have an approved developer until a year from now.”

The question then would be whether service would be in place in time. “You’re asking us, MISO, to take a huge risk,” Webb added.

Dawe reiterated that he didn’t believe Lake Charles met the qualifications for out-of-cycle status.

Beyond Reliability Needs? 

Cynthia Crane, principal policy analyst at ITC Holdings, said the need for the upgrades has not been clearly demonstrated, raising doubts about the certainty of Entergy’s need date. Crane told the committee said she was speaking for her company and not the transmission owners sector, which voted yes for the Lake Charles OOC request. (EDITOR’S NOTE: An earlier version of this article incorrectly stated that Crane was speaking on behalf of the transmission owners sector.)

Tia Elliott, director of regulatory affairs for NRG Energy and the IPP sector’s representative, told the PAC that the sheer size of the Lake Charles project warrants further scrutiny.

The project is said to be key in bringing another 617 MW to the Lake Charles area to support a rebounding industrial base.

Crane said her company’s engineers looked at the proposed project and have some concerns that it is larger than is needed for just reliability purposes.

Another issue, she said, is declining oil prices, which portend a potential economic slowdown in the Gulf region. That raises the question of whether Entergy will need the upgrades as early as it has stated, she said.

Clouded by Customer Confidentiality

Webb, as he has in previous meetings in which the Entergy request has been discussed, said Entergy’s need for the project was consistent with previous growth projections presented by the utility and with growth trends in the region.

Charles Long, director of transmission planning for Entergy Services, said the company would have had to have known about additional customer demand by September 2013 to have made the request during the normal MTEP process.

Entergy filed the Lake Charles request with MISO on Dec. 15, saying it learned of the new demand Dec. 1.

MISO said that it has not been privy to customer communications with Entergy about their expansion plans. Entergy has said that information is confidential for competitive reasons.

One stakeholder suggested that utilities that cite confidentiality claims as a reason not to be as forthcoming with MISO should be summarily denied out-of-cycle requests.

Webb said he didn’t think MISO has the authority to delve into confidentiality agreements between a utility and its industrial customers.

LaFleur Rejects Further Review of 2014 ISO-NE Capacity Auction

By William Opalka

ISO-NE
Some 24,447 MW of capacity resources cleared Feb. 2nd’s auction at $9.55/kW-month, an increase of more than one-third over the $7.025/kW-month clearing price for most resources in FCA 8 last year. Administrative pricing was used in the Southeastern Massachusetts-Rhode Island zone, with prices set at $17.73/kW-month for 353 MW of new resources and $11.08/kW-month for 6,888 MW of existing resources.

The Federal Energy Regulatory Commission once again dashed the hopes of the New England congressional delegation seeking to challenge the results of last year’s capacity auction.

FERC Chairman Cheryl LaFleur wrote to the delegation on Feb. 18, telling members that FERC completed its review of the eighth Forward Capacity Auction when it denied a rehearing request in October.

“As that case is no longer an open case, we are unable to reopen the question of the justness and reasonableness of the FCA 8 rates,” LaFleur wrote. “However, even if we could reopen that proceeding, I continue to believe that the rates resulting from FCA 8 are just and reasonable.”

The auction became effective as an “operation of law” in September when the commission — then short one member — deadlocked 2-2 over whether to reject the results due to unchecked market power. (See FERC Commissioners at Odds over ISO-NE Capacity Auction).

The auction, held in February 2014, saw prices more than double from the previous year’s auction to a total of about $3 billion.

FERC is back to its full complement of five commissioners with the addition of former Arkansas regulator Colette Honorable. The delegation wrote to the commission, asking it to use Federal Power Act section 205 or 206 authority to look at the ISO-NE rates that have resulted from the auction. Those rates take effect in the 2017/18 capacity commitment period.

“We strongly supported the commission’s decision to conduct further review of the results of FCA 8 last summer but believe FERC’s failure to make a conclusive decision in September 2014 has unfairly left the ratepayers of New England without appropriate redress,” the delegation wrote Jan. 30. The letter was signed by six senators and 13 congressmen.

FCA 9, held Feb. 2, resulted in even higher prices — an estimated $4 billion for the 2018/19 capacity commitment period. Analysts said prices are likely to fall in the future as a result of new capacity that cleared in the 2015 auction. (See ISO-NE Capacity Prices Likely to Fall in Future.)

NARUC 2015 Winter Meeting Attendees Ponder EPA Carbon Rule

EPA’s proposed Clean Power Plan was the subject of several panels at last week’s winter meetings of the National Association of Regulatory Utility Commissioners (NARUC) in Washington. Energy Secretary Ernest Moniz and EPA Administrator Gina McCarthy also talked about the plan in remarks to hundreds of attendees during NARUC’s general session Tuesday.

[metaslider id=”102293″]

Federal Briefs

PilgrimSourceNRCThe Nuclear Regulatory Commission said it was pleased with the way Entergy employees handled a shutdown of Pilgrim Nuclear Power Station during a blizzard in January, but it is continuing a review of the incident.

“We hope there are lessons learned that get incorporated for all future significant storms, because this has been twice in recent years where severe winter weather has resulted in a loss of offsite power and the plant having to shut down,” NRC spokesman Neil Sheehan said.

Equipment issues caused the plant to remain shut down for 12 days following January’s blizzard. The NRC plans to release a final report of its review 45 days after it completes an inspection.

More: CapeCod.com

Chairman Says NRC Will Complete Yucca Review

Stephen Burns
Stephen Burns

The Nuclear Regulatory Commission will take over the environmental review of the proposed Yucca Mountain nuclear waste repository because the Department of Energy won’t, according to Chairman Stephen Burns.

The NRC has found that the project could be built and operated safely, but construction can’t begin until the environmental review is complete. Burns said the agency has funds available to cover the costs of preparing a supplemental environmental impact statement.

More: E&E Publishing

Opponents Gathering for FERC Hearings on PennEast Pipeline

PennEastThe Federal Energy Regulatory Commission is holding two public hearings this week in New Jersey on the proposed $1.2 billion PennEast natural gas line. The 114-mile pipeline would run from Northeastern Pennsylvania across the Delaware River to New Jersey and would deliver gas from the Marcellus Shale region to East Coast markets.

Opposition has grown since the pipeline was announced in October. “There is a concern that one new pipeline can become a pipeline corridor,” said Paul Pogorzelski, Hopewell Township Administrator. The township has filed letters of opposition with FERC.

One hearing is scheduled for Wednesday in Ewing, N.J., and another Thursday in Hunterdon County.

More: NJ.com

FERC OKs Environmental Study for Puerto Rico LNG Terminal

PuertoRicoSourceAguirreThe Federal Energy Regulatory Commission approved the final Environmental Impact Statement for the proposed Aguirre Offshore GasPort Project in Puerto Rico. The floating plant would convert liquefied natural gas that arrives by ships into usable gas for Puerto Rican customers.

FERC concluded that the project would result in minimal environmental impact, mostly during construction, and that the completed LNG terminal would help improve the environment through decreased barge traffic in the area.

The environmental review took three years. Excelerate Energy is developing the project in cooperation with the Puerto Rico Electric Power Authority.

More: Green Tech Media

IG Report: DOE Conferences Spent $21M on Golf, Dinner Cruises

A Department of Energy inspector general’s report shows that the department spent $21 million over 16 months on social events at conferences. The report shows that the expenses were racked up during 300 conferences between April 2013 and September 2014.

“We found that attendance at some conferences included associated social events,” according to the report. “For example, [Energy Department documents] showed department-sponsored conferences that included a casino night, Super Bowl party, golf tournament, banquet on a dinner cruise boat, dinner at the NASCAR Hall of Fame and a tour and dinner at an aquarium.”

More: Washington Times

BOEM to Hold Meeting in NJ Before Offshore Drilling Starts

Three New Jersey lawmakers obtained a promise from the U.S. Bureau of Ocean Energy Management to hold a public meeting before the Obama administration opens up parts of the Atlantic Ocean to oil and gas drilling.

Though the areas that the agency has proposed for oil exploration are located hundreds of miles south of New Jersey, Sens. Robert Menendez and Cory Booker and Rep. Frank Pallone sent a letter to the White House expressing their concerns with potential spills on New Jersey’s shore. They asked for a public comment session to be held before any final permits were granted.

BOEM last week promised to hold a public meeting. Booker called it an “important first step in helping the Obama administration understand the severity of the environmental and economic risks to New Jersey if oil and gas drilling in the Atlantic Ocean’s fragile ecosystem is permitted.”

More: Press of Atlantic City

Compiled by Ted Caddell

FERC Upends MISO’s SSR Cost Allocation Practice

By Chris O’Malley

ssr
The 40-MW coal-fired White Pine power plant is one of three power plants whose SSR agreement costs MISO must reallocate. (Source: Traxys)

The Federal Energy Regulatory Commission denied MISO’s request for a rehearing of the commission’s July order that said the RTO could no longer allocate broadly within the American Transmission Co. pricing zone the costs of keeping open three power plants in Michigan’s Upper Peninsula.

MISO must now file a new study method to identify entities that benefit directly from the three plants operating under system support resource agreements (SSRs) and allocate costs of the agreements directly to them, the commission ordered on Feb. 19 (EL14-34-001).

The SSR plants at issue are Presque Isle, White Pine and Escanaba.

A few days before FERC’s order, however, Presque Isle owner We Energies asked MISO to seek the termination of SSR payments. We Energies acted after iron ore mining company Cliffs Natural Resources committed to remaining a customer of the aging 400-MW coal-fired plant near Marquette.

Wisconsin PSC Complaint

FERC’s order is a win for the Wisconsin Public Service Commission, which filed a complaint last year alleging that MISO improperly allocated SSR costs on a pro rata basis to all load-serving entities in the ATC footprint.

The PSC argued that 92% of the projected $52.2 million in annual fixed costs under the original Presque Isle SSR agreement would be allocated to load-serving entities in Wisconsin even though they would receive only 42% of the benefits from the plant’s continued operation.

FERC’s Feb. 19 order also rejected MISO’s request to revise cost allocation of the three SSR plants to reflect new, local balancing authorities established recently in the ATC pricing zone.

Michigan Complaints Moot

In a related order, FERC also dismissed as moot complaints that objected to the LBA and its cost allocation implications for the three SSR plants (ER14-103).

The Michigan Public Service Commission had alleged that Wisconsin Electric manipulated SSR cost allocation by splitting its LBA in half, with one portion encompassing Michigan’s Upper Peninsula, to increase Michigan’s allocation of SSR costs tenfold.

Michigan residential and commercial electric customers, along with numerous government agencies, flooded FERC with complaints about the effects the SSR allocation would have in the Upper Peninsula.

But FERC said the Michigan complaint was moot, as “we direct MISO to devise a new approach that will identify benefitting LSEs without relying on LBA boundaries.”

FERC said it would address refund requirements in a future order involving MISO’s new study methodology.

Exelon Sweetens the Deal for DC in Pepco Takeover

By Ted Caddell

In a bid to win D.C.’s approval of its takeover of Pepco Holdings Inc., Exelon last week more than doubled the amount of customer credits it is offering to $33.75 million from $14 million.

The offer to increase the “Customer Investment Fund” came on the heels of its success in New Jersey, where Exelon received full approval from the Board of Public Utilities, and Delaware, where it reached a settlement with the staff of the Public Service Commission and other parties.

Those advances didn’t come cheap, though. The company originally offered $29 million in customer credits and other incentives to New Jersey customers but later upped that to $62 million. Their offer to Delaware started out at $17 million in direct customer credits, but the latest settlement offer — still to be acted on by the PSC — is $49 million in credits along with other incentives.

Not Convinced

Despite its improved offer, Exelon hasn’t won the support of D.C.’s customer advocate.

“The ‘pot sweetener’ is a factor that needs to be evaluated along with other factors in the case to determine if the proposal meets the public interest standard,” People’s Counsel Sandra Mattavous-Frye told RTO Insider. “By no means does this new proposal to increase the CIF end the matter.”

The company also enhanced its commitment to increasing reliability, vowing to meet or exceed the D.C. PSC’s existing standards “without increasing Pepco’s forecasted reliability spending.” If Pepco does not achieve the reliability performance target, it would be subject to penalties of up to $5.6 million annually, the company said.

Mattavous-Frye said that Exelon had failed to address reliability concerns earlier.

“Reliability has been a focus for [the Office of the People’s Counsel] for the past 10 to 12 years,” she said Friday. Exelon’s “new reliability commitment is vastly different than their position from the beginning of the case that they could not meet the reliability standard,” she said. “Therefore, OPC is carefully evaluating the details that support this new commitment to ensure it is viable.”

Exelon CEO Chris Crane said the latest offer shows that the company is paying attention to the needs of the District. “We’ve listened to the feedback of stakeholders in the District of Columbia and have substantially enhanced our proposed package,” he said in a statement.

Delay Likely

The negotiations with state regulators are taking a toll on Exelon’s timetable for approval.

Initially, Exelon said that it anticipated closing the acquisition in the second quarter. Exelon spokesman Paul Adams said last week that it now appears the deal may not be consummated until the third quarter.

The D.C. PSC is scheduled to hold evidentiary hearings from March 30 through April 8, which would mean a decision in late July or early August, Mattavous-Frye said. She said talks between parties continue but, “at this point, it is not clear if a settlement will be reached in this case.”

Maryland Remains

In addition to D.C., Exelon still must win support from regulators in Maryland.

Adams said the company is prepared to up its offer to there too.

“During the hearings before the commission in Maryland, Exelon CEO Chris Crane made clear that Exelon would accept, as a final resolution of the matter in Maryland, a settlement on terms equivalent to the settlement in New Jersey” prorated for the number of customers, Adams said.

“The settlement in Delaware is equivalent to the New Jersey settlement, and both are equivalent to what we have offered in D.C.,” Adams said. He did not say when a new offer to Maryland would be presented.

Exelon’s initial offer of customer credits for Maryland was $40 million. The state’s PSC staff has recommended $167 million in credits.

The state’s Office of People’s Counsel has urged the PSC to turn down the deal as it stands, calling the benefits Exelon is offering “either non-existent or woefully deficient.”

FERC to OK 3rd Party Sales of Frequency Response

frequency responseGenerators would be permitted to sell frequency response services at market-based rates under a rule proposed by the Federal Energy Regulatory Commission last week.

FERC’s notice of proposed rulemaking (RM15-2) was issued in response to a reliability standard the commission approved in January 2014 requiring balancing authorities to maintain minimum frequency-response obligations (BAL-003-1). (See FERC OKs Rules on Geomagnetic Disturbances, Frequency Response.)

“While most balancing authorities should be able to meet the new reliability standard using their own resources, some may nevertheless be interested in purchasing primary frequency response service from others if doing so would be economically beneficial,” the commission wrote, concluding “there could be interest in the near future in voluntary purchases of a primary frequency response product.”

FERC would allow entities with market-based rate authority for energy and capacity to also sell frequency response at market-based rates.

The NOPR applies to generators providing primary frequency response — the ability to automatically change their output within seconds when the grid’s frequency strays above or below 60 Hz.

It is distinguished from regulation — also known as secondary frequency response — which involves manual or automated dispatch from a centralized control system.

The requirements of the reliability standard will be phased in over a year beginning April 1. The commission expects to finalize the rule after a 60-day comment period.

PSEG Q4 Profits More than Double over 2013

By Ted Caddell

Public Service Enterprise Group reported fourth-quarter net income of $476 million ($0.94/share), more than double the $200 million ($0.39/share) for the same quarter in 2013. The company posted net income of $1.518 billion ($2.99/share) for 2014, compared to $1.243 billion ($2.45/share) a year earlier.

CEO Ralph Izzo attributed the increased earnings to its investments in its regulated business, Public Service Electric & Gas. “As a result of an extended capital program, earnings from our regulated company grew to represent 52% of our consolidated operating earnings, as PSE&G’s investment in transmission has grown to represent 39% of its $11.4 billon rate base.”

Izzo highlighted several aspects of the investment in the regulated business, much of it in response to the pounding New Jersey, and PSE&G in particular, took during Hurricane Sandy. “We received approval to invest $1.2 billion in Energy Strong, a program that will improve the resiliency of our electric and gas distribution systems,” he said during a conference call.

The company is updating and replacing about 250 miles of its natural gas lines, as well as making upgrades to its electric transmission network. “We completed construction of two, 230-kV transmission lines during the year, as well as the New Jersey portion of the 500-kV Susquehanna-Roseland line,” he said.

Izzo acknowledged that PSEG Power’s bid to build a new 475-MW combined-cycle plant in Connecticut didn’t clear ISO-NE’s recent capacity auction, but he said “we haven’t abandoned this work and we’ll invest when the markets support its development.” (See Exelon, LS Power Join CPV in Adding New England Capacity.)

Company Briefs

MankatoSourceCalpineCalpine is building a 345-MW, gas-fired combined-cycle unit at the site of its 375-MW Mankato plant in Minnesota to meet the rising demand of Xcel Energy’s Northern States Power-Minnesota utility.

The Minnesota Public Utilities Commission approved a 20-year power purchase agreement between Calpine and Northern States Power. The new unit is expected to start operations by mid-2018.

More: Energy Central

Navigant Predicts Smart Grid Market to Reach $29 Billion by 2023

A Navigant Research report said the market for smart grid technology will expand to $29 billion a year by 2020.

“The smart grid continues to mature, and communications technologies are also evolving in response,” said Navigant Senior Research Analyst Richelle Elberg. “Whereas five years ago vendors and utilities were consumed with simply enabling grid communications, today they are focused on technology that is anticipated to enable a truly integrated system that links existing legacy technology with new technology from a variety of vendors.”

The report also predicted that as smart grid technology is implemented, security needs will rise as well.

More: Transmission & Distribution World

Oops: PECO Customer Overpays Bill by $33K, Awaits Refund

PECOSourceExelonA PECO Energy customer is waiting — somewhat impatiently — for a refund after his wife accidentally overpaid the couple’s electric bill by more than $33,000.

Steve Onufrey, 71, of suburban Philadelphia, said his wife misplaced a decimal point when paying their $339.38 bill online, and paid the utility company $33,938 instead. Luckily, he had that much in the account because of a real estate transaction. He said it took him about a week to convince the company to issue a refund.

PECO Spokesman Ben Armstrong said the company is sending a paper check in the mail, as part of standard refund practice to prevent fraud.

More: NBC 10

NextEra Building 120-MW Wind Farm on Maui

nextera energy logoNextEra Energy, which is completing its $4.3 billion purchase of Hawaiian Electric, is planning to build a 120-MW wind farm on state land on Maui.

The planned facility will be on about 500 acres on the southern slopes of Haleakala, and be built, owned and operated by NextEra Energy Resources.

The NextEra project is the latest wind-generation facility to sprout in Hawaii. Boston-based First Wind operates four wind farms on Maui and Oahu with a capacity of about 120 MW, and Sempra U.S. Gas & Power owns a 21-MW wind facility on Maui. Champlin Hawaii Holdings is in the planning stages of a 24-MW wind farm on Oahu.

More: Pacific Business News

Dynegy Lobbying Against AEP’s Guaranteed Income Plan

Flexon
Flexon

Dynegy CEO Bob Flexon spent an hour with Ohio Gov. John Kasich recently to argue against a competitor’s plan to seek guaranteed income for some of its coal-fired plants.

Flexon told Columbus Business First that a proposal by rival AEP to seek long-term power purchase agreements for plants it says cannot compete would stifle incentives to build more efficient merchant generation plants in the region, at the expense of system reliability.

“When you want to create subsidies for a plant, you go into the huddle and pull out a playbook and have three plays: the reliability play, the jobs play and the local community play,” Flexon said. Merchant generator Dynegy is near closing on a $2.8 billion deal to buy 11 Duke Energy plants in the region, including nine in Ohio.

More: Columbus Business First

Dayton Power and Light Names Tom Raga as New CEO

Tom Raga, who has headed up Dayton Power and Light’s communications and government relations departments since 2010, was named the company’s new president and CEO. He replaces Derek Porter, who held the position since 2013.

“Tom brings the business experience and proven leadership skills with a clear strategic vision to the role of president and CEO,” said Ken Zagzebski, president of AES’ U.S. strategic business unit, in a statement. AES is the parent company of DPL.

More: Dayton Daily News

PSEG Names Braun New Chief Nuclear Officer

psegRobert C. Braun, PSEG Nuclear’s chief operating officer, has been named chief nuclear officer, replacing Thomas P. Joyce, who is retiring in March after 40 years in the industry.

Braun has been chief operating officer for 10 years and has 30 years of experience in nuclear operations. PSEG Nuclear operates the nuclear complex on Artificial Island in New Jersey.

More: NJ.com

NRG Can Be Sued over Coal Ash, Ill. Pollution Board Rules

The Illinois Pollution Control Board has ruled that environmental organizations can pursue a lawsuit against NRG Energy that alleges the Princeton, N.J., company has done nothing to keep harmful chemicals from coal ash dumps at four power plants it bought last year from Midwest Generation.

“The decision by the Illinois Pollution Control Board to allow an expanded lawsuit and investigation into NRG’s coal ash disposal methods brings us one step closer to making sure local communities and bodies of water around these plants are adequately protected,” said Holly Bender of the Sierra Club Beyond Coal Campaign.

Environmentalists allege that ash dumps at the Waukegan, Joliet, Romeoville and Pekin plants are leaking into the ground and into water supplies.

More: Progress Illinois

Darn that Reply-All Button: Ameren Shares Negotiating Position Before Hearings

Ameren Missouri has filed for a $264 million rate increase with the Missouri Public Service Commission, but it inadvertently disclosed that it would be willing accept about $100 million less.

Ameren told its investors in a Securities and Exchange Commission filing that it had accidentally shared its proposed settlement position with all of the parties in a series of electronic document transfers meant to go only to the PSC staff. Ameren said it had “inadvertently” disclosed the proposed settlement to all the parties but made no further comment.

More: St. Louis Post-Dispatch

PPL Transferring Nuke Engineering Staff to Susquehanna Station Amidst Acquisition Rumors

PPL is transferring 88 engineer and technical support staff members associated with its nuclear operations from its Allentown, Pa., headquarters to its Susquehanna nuclear generating station in Berwick, Pa.

The announcement came amid market speculation that PPL might be looking to sell more generation assets. It is currently spinning off most of its power generation assets, along with those owned by Riverstone Holdings, into a new company called Talen Energy.

A company spokesman said engineering and support for the plants under the Talen name will remain in Allentown. The Morning Call reported that rumors are circulating that Talen may already be looking to buy more generation assets, but the company declined to comment on the rumors. The Talen spinoff has yet to achieve approval from the Federal Energy Regulatory Commission.

More: The Morning Call

Exelon Expects Illinois Legislation Benefiting Nukes to be Introduced

Exelon-LogoExelon, which has been lobbying hard for legislation to favor its six nuclear reactors in Illinois, said it expects a bill to be introduced in the Illinois General Assembly as soon as March. William Von Hoene Jr., the company’s chief strategy officer, said during an earnings conference call that it expects bi-partisan support for the measure.

Details of the bill haven’t been released, but Exelon has long complained that its nuclear fleet doesn’t get credit for being a carbon-free generation source, making it hard to compete against subsidized renewable energy. It has warned that without some sort of relief, it may have to shut down some or all of its nuclear sites in the state.

More: Midwest Energy News

Compiled by Ted Caddell

New NERC Enforcement Methods Allow Self-Logging Minor Risk Issues

By Michael Brooks

The Federal Energy Regulatory Commission last week approved a new risk-based approach to reliability compliance monitoring and enforcement, saying it will allow regulators to focus resources on the most serious issues (RR15-2).

The Reliability Assurance Initiative (RAI), a collaboration among NERC, the Regional Entities, and industry, is intended to streamline what reliability violations come under enforcement of the North American Electric Reliability Corp., with “minimal”-level risk issues subject to less oversight.

The new approach allows qualified facilities to self-log minor issues that they have identified and solved, instead of reporting them immediately to NERC. These logs will be periodically reviewed by NERC’s Regional Entities, FERC said.

The initiative also includes a compliance monitoring program, which provides definitions of risk levels and violations, among other guidelines.

“A risk-based approach is necessary for a proper allocation of resources and to encourage registered entities to enhance internal controls, including those focused on the self-identification of noncompliance,” NERC said in describing the new approach.

The minimal risk issues will not be subject to NERC penalties. Instead they will be treated as “compliance exceptions.” While RAI received broad support, some stakeholders disagreed with NERC’s decision not to make these exceptions public. NERC had proposed to submit them monthly to FERC for review.

“Greater transparency, particularly in the first two transitional years as [NERC] gains experience with implementation of RAI, is essential to educating [the] industry to avoid and mitigate noncompliance with reliability standards and to maintain the credibility of NERC’s compliance and enforcement regime,” a group of stakeholders, including the American Public Power Association and the National Rural Electric Cooperative Association, said in a joint filing.

FERC agreed, requiring NERC to post exceptions similar to how it files Find, Fix and Track reports.

“We find arguments that publicly posting compliance exceptions is unnecessary or will discourage entities from taking advantage of the efficiencies of RAI unpersuasive,” FERC said, alluding to comments by the Edison Electric Institute and the Electric Power Supply Association. “Public disclosure of compliance exceptions would appear to require only minimal additional resources since information will be compiled monthly in a spreadsheet and provided to the commission.”

FERC directed NERC to submit a compliance filing within 90 days of the order outlining revisions to its rules and procedures incorporating RAI.

New Reliability Standard

In a separate order, FERC also approved a new NERC reliability standard, MOD-031-1, which allows planning authorities and coordinators to collect demand data to support reliability assessments (RM14-12). Transmission planners, balancing authorities and load-serving entities are required to provide data such as total internal demand, net energy for load and demand-side management.

FERC said the standard will improve consistency and efficiency as well as help identify where grid improvements are needed.