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October 10, 2024

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W.Va. PSC Adviser Jackie Roberts Announces Retirement

Jackie Roberts, federal policy adviser for the West Virginia Public Service Commission and a pillar of PJM’s relationship with state consumer advocates and regulators, announced her retirement Oct. 8, capping a 14-year career with the state.

Roberts has worked for the PSC since January 2021, when she joined after serving as the West Virginia consumer advocate for more than a decade. Her final day with the PSC is Nov. 12.

The hallmarks of her career, Roberts told RTO Insider, include her work establishing the Consumer Advocates of the PJM States (CAPS) and breaking PJM’s internal market monitoring unit off as an independent company, Monitoring Analytics.

The creation of CAPS, and the funding that came with it, has improved consumer advocates’ participation at PJM and allowed them to take a more proactive role in the stakeholder process, she said.

Greg Poulos, executive director of CAPS, said Roberts has a gift for bringing people together and has made a positive impact on consumers through her advocacy.

“Throughout the time I’ve known Jackie, she has been a strong advocate, with an incredible wealth of knowledge, passion and strong communication skills,” Poulos said. “For me, her efforts to connect and collaborate with all parties that are interested has helped create many successful outcomes. Her efforts to encourage collaboration have made her involvement in stakeholder processes at state, regional and federal levels incredibly valuable.”

The Independent Market Monitor has also been a success, Roberts said, preventing undue RTO influence on the monitoring role.

She expressed concern, however, that the Monitor’s work could be jeopardized by contract deliberations that have been ongoing for more than a year regarding the future of the position. “It causes disruption for the Market Monitor and his staff and considerable angst on behalf of the commission,” she said.

Surveying the challenges facing the PJM region, Roberts said resource adequacy is a growing concern, as well as the cost of electricity, noting a significant increase in Base Residual Auction prices with the potential for another fourfold increase in the auction scheduled for December. (See “Price Cap Increases in 2026/2027 BRA Planning Parameters,” PJM MIC Briefs: Sept. 11, 2024.)

“Many people will simply not be able to afford electricity. I know PJM will say, ‘That’s not what we do; that’s what the states do,’” she said. But she argued that PJM plays a role in the costs for retail ratepayers.

State utility commissions are on the front lines of managing rising rates, but PJM has not given their recommendations the proper weight when making decisions about capacity market design and the generation interconnection queue, Roberts argued. She pointed to a protest the PSC filed with FERC seeking participation in PJM’s Liaison Committee. (See FERC Rejects Complaints from IMM, W.Va. PSC Arguing for Access to PJM Liaison Committee.)

“I think it takes good leadership at PJM to balance and implement the appropriate stakeholder input,” she said. “I’m concerned that PJM is just managing those stakeholders and not taking leadership to incorporate really good suggestions into their operations.”

Roberts has held positions on the National Association of State Utility Consumer Advocates, NERC’s Member Representatives Committee, the Keystone Policy Center’s Energy Board and the executive committee of Edison Electric Institute’s Critical Consumer Issues Forum. She continues to serve on the U.S. Commodity Futures Trading Commission’s Energy and Environmental Markets Advisory Committee.

Prior to her time in West Virginia, Roberts worked as an attorney at the Ohio Consumers’ Counsel and as corporate counsel for electric and natural gas utilities in New England.

PJM Senior Vice President of Governmental and Member Services Asim Haque, also former chair of the Public Utilities Commission of Ohio, said Roberts will be missed.

“Jackie has been not only an important voice in this industry, but she’s also been a friend to me going back to my Ohio days,” he said. “She will definitely be missed professionally, and I’ll miss her personally.”

West Virginia PSC Chair Charlotte Lane said Roberts “brought a lot of knowledge and insight into her position as our federal liaison. She will be missed.”

Emile Thompson chair of the District of Columbia Public Service Commission and current OPSI president, said of Roberts’ retirement: “Jackie has been an amazing colleague to work with over the past few years.  She has been a fierce advocate for the citizens of West Virginia, the W.V. PSC and OPSI.  Whenever Jackie spoke, I was sure to listen, and her institutional knowledge will certainly be missed.”

“Jackie Roberts has been an important participant in the PJM stakeholder process in a range of capacities,” said Joe Bowring, independent market monitor. “Jackie has been a strong and effective advocate for customers, for the role of state public utility commissions, for rational PJM governance, for efficient and competitive markets, and for a truly independent market monitor.”

The complex, challenging work found in the electric sector, as well as the opportunity to work with a diverse range of stakeholders, has kept her interested for nearly 20 years. Roberts said she hasn’t decided what her future in the electric sector may look like, but she plans to spend much more time riding her horse.

“It has been a great privilege to work on PJM issues for the last almost 20 years. I’ve learned a lot. I appreciate the professional relationships I have developed through that process, and I appreciate what could be robust differences of opinion. What’s important is we move forward with what’s in the best interest of retail and wholesale customers.”

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IRP Settlement Accelerates Xcel’s Clean Energy Transition

Xcel Energy has reached a settlement with clean energy nonprofits that further swings the utility’s integrated resource planning toward zero-carbon resources.  

The utility and Clean Grid Alliance, Fresh Energy and Minnesota Center for Environmental Advocacy announced a settlement agreement in early October that will nudge Xcel Energy’s Upper Midwest Energy Plan to zero carbon emissions sooner. Other parties to the settlement include the Minnesota Department of Commerce, labor unions and generation developers.  

The agreement affects both Xcel’s integrated resource plan (24-67) and its Firm Dispatchable Resource Acquisition (23-212) dockets before the Minnesota Public Utilities Commission. Now Xcel’s Firm Dispatchable Resource Acquisition is open not just to gas, but also to renewables and storage. Xcel also has pledged to better use existing gas plants to avoid the need for multiple gas peaking plants in its IRP.  

In the firm dispatchable docket, Xcel has agreed to build more than 300 MW of new storage across two standalone projects, build an additional 230 MW in the form of a wind-and-storage hybrid project and a 170-MW solar-and-storage project. Xcel also will extend two power purchase agreements with existing gas plants and build just one 374-MW peaker gas plant in Lyon County that also will be hydrogen-capable. The settlement negates the need for a second natural gas plant Xcel had proposed for Fargo, N.D.  

In addition to the resource acquisition docket, the settlement dictates even more wind, solar and storage through 2030 via the IRP, including: 600 MW of standalone storage; 400 MW of new solar connecting to the grid at the A.S. King plant site in Oak Park Heights, Minn.; and 3.2 GW of wind additions, most of which will use the Minnesota Energy Connection transmission line.  

Xcel also agreed to plan for longer lifespans of its nuclear plants. It will use a 2050 retirement date for the Monticello Nuclear Generating Plant and 2053 and 2054, respectively, for Prairie Island Generating Plant Units 1 and 2.  

An earlier version of Xcel’s IRP assumed a little more than 2.2 GW of new gas peaker capacity by 2030, spread across six or more new plants. The settlement terminates all but the Lyon County plans. Xcel also agreed to explore thermal battery options with Rondo Energy and file a pilot proposal with the Minnesota PUC by the end of 2025.  

As part of the settlement, another filing with state regulators will come due in late 2025. Xcel agreed to devise a new model for planned and scaled distributed solar and storage capacity procurement and file it at the commission by Oct. 3, 2025. 

Finally, Xcel and parties agreed the utility would try to bolster rates of participation in its energy efficiency programs for its low-income customers, track data and report on results in its next IRP.  

Xcel said the agreement will allow it to reliably ensure an up to 88% carbon emissions reduction by 2030 from a 2005 baseline. The company also said the new plan unlocks tax credit savings from the Inflation Reduction Act for renewables and energy storage.  

Xcel said it expects a final decision on the settlement from the Minnesota PUC in early 2025.  

Leadership at the clean energy nonprofits had good things to say about the shift in resource planning.  

“This joint effort marks major progress in Xcel’s and Minnesota’s energy transition,” Fresh Energy Executive Lead of Policy Allen Gleckner said in a press release. “All the parties involved are working [toward] the same goal: reliably decarbonizing our state’s electricity.” 

“In addition to the 3.6 gigawatts of new clean energy projects in the short term, we are very excited to see significant battery storage projects be selected. Storage is a real game-changer,” added Peder Mewis, Clean Grid Alliance’s regional policy director. “Among other things, it will help during extreme weather conditions and is critical for maintaining reliability and meeting Minnesota’s clean energy standard.” 

Minnesota Center for Environmental Advocacy Climate Program Director Amelia Vohs called the settlement a “great outcome for the climate.”  

“This plan invests in innovation that maximizes value for customers, creates jobs and supports the communities we serve,” said Ryan Long, president of Xcel Energy in Minnesota, South Dakota and North Dakota. “We’re making great progress toward our vision for reliable, affordable, 100% carbon-free electricity, and we appreciate the support of our stakeholders on an agreement that allows us to keep building the clean energy economy of the future.” 

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Dynegy Unsuccessful in Rehearing Requests of 2015 MISO Capacity Auction Manipulation Case

Nearly a decade on, the saga over Dynegy’s manipulation of MISO’s capacity market continues, with FERC denying the company’s asks for procedural changes that might have softened repercussions in the case.  

FERC dismissed all four of Dynegy’s rehearing requests related to evidence, intent, a report on remand, and the bounds of FERC’s jurisdiction in an Oct. 4 order (EL15-70).  

The latest order is part of FERC’s yearslong inquiry into Dynegy’s apparent manipulation of clearing prices in MISO’s 2015/16 capacity auction. This year, the commission directed hearing and settlement procedures. (See FERC Sets Dynegy’s MISO Market Manipulation Case for Hearing.) 

Approximately eight years after the auction, commission staff unwound FERC’s original conclusion that Dynegy — now owned by Vistra — conducted itself appropriately in the auction. That’s due to a D.C. Circuit Court of Appeals 2022 ruling that FERC hadn’t sufficiently supported its decision to accept the $150/MW-day Southern Illinois capacity price produced in the 2015/16 auction. (See FERC Staff Finds Dynegy Manipulated 2015 MISO Capacity Auction.)  

This time, FERC rejected Dynegy’s fresh argument that it didn’t know it was manipulating MISO’s capacity market by refusing to sell capacity at a loss ahead of the auction. The commission said Dynegy should have been aware the actions it took to make sure one of its resources set the clearing price for Southern Illinois to raise profits amounted to manipulation.  

FERC also said Dynegy’s argument ignores intent.  

“Dynegy’s argument that its pre-auction sales strategy was ‘driven by a desire to stop losing money’ misses the point because it ignores the broader question of whether that sales strategy was part of an intentional or reckless effort to set the Zone 4 clearing price in the auction,” FERC said.  

Dynegy argued it “could not have known that [FERC’s] market manipulation rules would compel Dynegy to operate a charity — mandating that Dynegy donate its capacity to the market at prices that would not cover its going-forward costs.” 

FERC declined to take up Dynegy’s claim that its alleged manipulation scheme might involve non-jurisdictional retail transactions in South Carolina rather than the MISO portion of Kentucky. The commission said it is best to “defer any legal determination as to jurisdiction until after the hearing because certain disputed issues of material fact are likely to bear upon the jurisdictional question.”  

Dynegy also proved unsuccessful in persuading FERC to strike from the record its heavily redacted report from June 2022 that concluded that manipulation occurred.  

FERC said the report is necessary to the case because the D.C. Circuit Court of Appeals ordered FERC to establish a public record in the case, which was lacking after the nonpublic investigation and a poorly explained decision in 2019 to accept the Zone 4 capacity price.  

“[P]arties and participants are free to rely on the remand report in making their cases, and at that point, Dynegy is free to challenge the parties’ or participants’ use of the remand report. … In this way, information would be appropriately considered by the presiding judge in an evidentiary hearing encompassing allegations of market manipulation,” FERC said.  

Finally, FERC rejected Dynegy’s claim that FERC didn’t share exculpatory evidence with the company during the nonpublic investigation.  

Dynegy contended that it could have used nonpublic, video footage of testimony to help prove its innocence.  

FERC countered that the investigation was closed without a show-cause order or sanctions and pointed out that it’s under no obligation to share exculpatory evidence in a Section 206 proceeding. Further, the commission said its staff combed through materials and didn’t find anything that could be deemed exculpatory.  

At any rate, FERC said the footage Dynegy singled out is now part of the nonpublic record in the case and can be addressed during hearing proceedings.  

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Company Briefs

Constellation Seeks Taxpayer Backing to Restart Three Mile Island

Constellation Energy, the owner of the shuttered Three Mile Island nuclear plant, is pursuing a $1.6 billion federal loan guarantee to help finance its plan to restart the facility and sell the electricity to Microsoft. 

The taxpayer-backed loan could give Microsoft and Constellation a major boost in their unprecedented bid to steer all the power from a U.S. nuclear plant to a single company. A loan guarantee would allow Constellation to shift much of the risk of reopening Three Mile Island to taxpayers. The federal government, in this case, would pledge to cover up to $1.6 billion if there is a default. 

Constellation plans to restart Three Mile Island by 2028. 

More: The Washington Post 

Dominion Energy Announces Sale of Public Service Co. of North Carolina

Dominion Energy last week announced closure of the sale of its natural gas utility, Public Service Company of North Carolina, to Enbridge for $3.2 billion. 

This is the last of three separate transactions as part of an agreement Dominion and Enbridge announced on Sept. 5, 2023, whereby Dominion would sell its Ohio-, Utah- and North Carolina-based gas utilities for about $14 billion. 

Public Service Company of North Carolina serves about 600,000 customers. 

More: Dominion Energy 

Virginia Natural Gas Taps New CEO

Virginia Natural Gas last week announced Shannon O. Pierce will be the company’s new CEO. 

Pierce will succeed Robert Duvall after he retires in April. 

Pierce started out as a lawyer for McGuireWoods in Richmond and joined Southern Gas, Virginia Natural Gas’ parent company, in 2004. 

More: Virginia Business 

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Federal Briefs

SCOTUS Declines to Block Methane, Mercury Regulations

The U.S. Supreme Court last week left in place two Biden administration environmental regulations aimed at reducing industry emissions of methane and mercury. 

The high court denied petitions brought by Republican states and energy industry groups seeking a stay of the Mercury and Air Toxics Standard while the D.C. Circuit Court of Appeals weighs the merits of legal challenges to the rule. The states challenging the rule called the new standards “impossible to meet” and said they amounted to an “attack” on the industry. The court is still considering challenges to a third EPA rule aimed at curbing planet-warming pollution from coal-fired plants. 

The rules will have a direct effect on the Colstrip coal plant in Montana. NorthWestern Energy, one of Colstrip’s six co-owners, previously indicated the rules could make the plant’s operation “uneconomic” due to needed upgrades. 

More: The Associated Press, Montana Free Press 

Siemens to Pay $104M in DOJ Trade Secret Probe

Siemens Energy AG has agreed to pay $104 million to resolve a criminal investigation into misappropriating confidential information from competitors to win a bidding process. 

The Justice Department accused Siemens of “illicitly obtaining” confidential information from competitors General Electric and Mitsubishi Heavy Industries “to obtain an unfair competitive advantage” in a bidding process involving a gas turbine plant project. Siemens, which didn’t receive credit for voluntarily reporting, pleaded guilty, according to a federal court filing. 

Siemens is scheduled to be sentenced on Dec. 5. The company also agreed to three years of organizational probation. 

More: BNN Bloomberg 

NRC: Palisades Nuclear Plant Corrosion Exceeds Estimates

The Nuclear Regulatory Commission last week said Holtec, the company that wants to reopen the Palisades nuclear reactor in Michigan, found corrosion cracking in steam generators “far exceeded” estimates. 

A summary of an early September call between the NRC and Holtec said indications of stress corrosion cracking in tubes in both of Palisades’ steam generators “far exceeded estimates based on previous operating history.” It found 1,163 steam generator tubes had indications of the stress cracking. 

Holtec spokesperson Patrick O’Brien said the return of Palisades is still on schedule and the company wants to fix, and not replace, the steam generators. 

More: Reuters 

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State Briefs

ALABAMA 

Alabama Power, EPA Settle Over Coal Ash Pond

Alabama Power last week said it reached a settlement with the EPA over concerns about millions of pounds of coal ash dumped in unlined ditches near Mobile. 

The settlement requires the utility to increase monitoring of its coal ash ponds by adding groundwater monitoring wells and updating its emergency action plan to account for severe weather. 

Plant Barry is 597 acres and holds almost 22 million cubic yards of coal ash. The company further stated that testing has shown no impact on the Mobile River. 

More: Alabama.com 

Solar Fee Lawsuit Moves Forward in Federal Court

U.S. District Judge Myron Thompson last week denied a motion to dismiss a case that challenges the fees levied on people who install solar panels on their homes and will allow the case to move forward. 

The plaintiffs in the case argued the Public Service Commission violated federal energy laws by allowing Alabama Power to charge fees to people who use solar panels. Alabama Power and the PSC had asked for the case to be dismissed, arguing the court did not have jurisdiction and the plaintiffs did not make a claim for which relief can be granted. 

Thompson ruled against the defendants, arguing the court does have standing to adjudicate claims made under the Public Utility Regulatory Policies Act. 

More: Alabama.com 

CALIFORNIA 

Imperial County Approves Solar Project

The Imperial County Board of Supervisors last week approved the VEGA SES 6 Solar and Battery Storage Project. 

The project, which spans around 320 acres, will deliver 80 MW of solar energy paired with 160 MW of battery storage. 

More: Calexico Chronicle 

COLORADO 

PUC: Need More Time to Consider Xcel Energy’s Wildfire Plan

The Public Utilities Commission last week pushed back a deadline to approve Xcel Energy’s $1.9 billion wildfire mitigation plan, saying the proposal could create new risks if it is not thoroughly reviewed. 

The plan lays out how Xcel will notify customers when it preemptively shuts off power to reduce wildfire risks. The commission now has until August 2025 to rule on the proposal.  

Xcel Energy is currently facing at least 300 lawsuits for its alleged role in sparking the Marshall fire and additional lawsuits that blame its equipment for sparking Texas’ largest wildfire. 

More: CPR News 

ILLINOIS 

Madigan Judge Refuses to Toss Counts After Supreme Court Ruling Limited Bribery Law

U.S. District Judge John Blakey last week declined to dismiss several criminal counts against former House Speaker Michael Madigan in the wake of a Supreme Court decision that limited bribery laws. 

The Supreme Court found in June that a bribery law key to Madigan’s prosecution does not also criminalize after-the-fact rewards known as “gratuities.” Madigan’s defense attorneys argued weeks later that prosecutors had failed to allege a “quid pro quo” that would be required to prove bribery under the high court’s standard. 

Prosecutors plan to pursue a so-called “stream of benefits” theory, explained in an appellate court ruling from the prosecution of ex-Gov. George Ryan. In it, the court wrote the corruption there “was more like a meal plan in which you don’t pay for each item on the menu. Rather, there is a cost that you pay, an ongoing cost, and you get your meals.” Blakey ruled the approach theoretically satisfies the requirement prosecutors have to prove a “quid pro quo.” 

More: Chicago Sun-Times 

MARYLAND 

Lawsuit Seeks to Derail New Consumer Protection Law

The Retail Energy Advancement League and Green Mountain Energy last week filed suit in U.S. District Court in Baltimore, saying the state’s new guardrails on energy companies that compete with utilities violate the firms’ First Amendment rights and act as an impediment to the state’s clean energy mandates. 

The 37-page suit asserts that the law’s constraints on energy companies’ ability to market themselves is a violation of their First Amendment rights — and impedes their ability to tout the clean energy they may be purchasing. The suit names the state attorney general’s office and the Public Service Commission, which will implement parts of the new law on the electricity marketplace, as defendants. 

Maryland laws require the state to create a 100% clean energy standard by 2035, while reaching zero carbon emissions by 2045. 

More: Maryland Matters 

NEW JERSEY

BOEM Approves OSW Farm

The Bureau of Ocean Energy Management last week gave its approval for an offshore wind farm that would be built between Atlantic City and Long Beach Island. 

BOEM approved Atlantic Shores’ plan to construct and operate the facility, which would generate 2,800 MW from 197 turbines. 

The project still requires a review by the U.S. Army Corps of Engineers and several state permits. 

More: The Associated Press 

NORTH CAROLINA

Biden Approves More Federal Aid After Hurricane Helene

President Joe Biden last week announced additional aid for the state as it recovers from Hurricane Helene. 

Biden said he accepted Gov. Roy Cooper’s request for a 100% federal cost share for debris removal and emergency protective measures for six months. The funding will cover work addressing the impacts from debris flow, flooding and removing fallen trees. 

Biden also directed the Department of Defense to deploy 1,000 soldiers to assist North Carolina’s National Guard. 

More: NC Newsline 

WEST VIRGINIA

PSC Staff Slams Appalachian Power Outage Performance

Public Service Commission staff last week said Appalachian Power and Wheeling Power’s reliability was “unreasonable” and urged the PSC to deny their request for more lenient targets in metrics measuring the duration and frequency of outages. 

Staff noted the American Electric Power subsidiaries have routinely failed to meet minimum reliability targets, and their performance negatively impacts reliability compared to other states. Staff also said it is ready to launch an investigation into Appalachian Power and Wheeling Power. 

As staff made its recommendations, customers of both companies were still dealing with outages stemming from Hurricane Helene. 

More: Charleston Gazette-Mail 

WISCONSIN 

WPS, We Energies Announce Renewable Energy Projects

Wisconsin Public Service and We Energies have announced plans to build nearly 800 MW of new solar, wind and battery storage in the state. 

The projects would add 500 MW of solar and 180 MW of wind power to the grid, along with 100 MW of new battery storage. 

More: WLUK 

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DC, Md. Push for More EV Chargers in Multiunit Buildings

Supporting President Joe Biden’s goal of electric vehicles making up 50% of all new light-duty car sales in the U.S. by 2030 will require the country to install more than 1 million publicly available Level 2 and direct current fast chargers in the next 6.5 years, according to a new report from the Alliance for Automotive Innovation.

That pencils out to 451 chargers per day or three chargers every 10 minutes through the end of 2030, AAI says in its Get Connected: Electric Vehicle Quarterly Report for the second quarter of 2024.

While those figures may not be attainable, both the District of Columbia and Maryland have been working on rules to encourage and accelerate the installation of EV chargers, especially at multiunit dwellings and in low-income neighborhoods, as EV sales continue to grow steadily both in the region and across the nation.

The D.C. Council on Oct. 1 voted unanimously to approve a new law (B25-106) that lays out requirements for the installation of charging infrastructure in new construction or major renovations in the nation’s capital. Beginning on Jan. 1, 2027, new single-family construction that includes private, off-street parking will have to be “EV ready” ― that is, include wiring ― for at least a Level 1 charger, which essentially would mean a regular plug in a garage or driveway.

The law also requires a new pilot program to install chargers in low-income, disadvantaged neighborhoods in the city and calls on the District’s Department of Transportation to develop a comprehensive plan for ensuring the city has adequate charging infrastructure, to be updated every three years.

The Oct. 1 order from the Maryland Public Service Commission is more narrowly focused on the rates utilities charge for the electricity used to power chargers installed at multiunit dwellings (MUDs). The PSC order (Order No. 91339) guarantees that charging rates for MUDs will be similar to residential rates, rather than commercial rates that typically include high demand charges.

While they may vary from utility to utility, demand charges tend to be based on specific times of a customer’s highest electricity use, and for some apartment building or condominium owners, the high rates involved could make installation of an EV charger financially unfeasible, local residents told the PSC.

Under the new order, the utilities must offer such customers an EV charging rate equivalent to residential rates — either standard rates based on the volume of power used, or time-of-use (TOU) rates based on whether EVs are charged during on- or off-peak hours.

“One of the major reasons people hesitate to get an electric vehicle is ‘range anxiety,’ or the fear that they can’t envision how they will keep their car charged at home or out and about,” said D.C. Councilmember Charles Allen, who first introduced the D.C. legislation late in 2022 and has shepherded it through committee hearings and final amendments.

“We don’t have that fear with gas-powered vehicles because the infrastructure is built out,” Allen said in a statement announcing approval of the bill on its first reading before the Council. “It’s time to do that for electric vehicles. This is an infrastructure bill that sets goals and clears red tape to get more chargers installed where people actually want them.”

The bill must still pass a second vote before the council and be signed into law by Mayor Muriel Bowser.

The push for more chargers comes as the EV markets grow in both D.C. and Maryland. According to the AAI report, both have joined 10 other states across the country where EVs represented more than 10% of new light-duty vehicle registrations in the second quarter of the year.

The U.S. Department of Energy reported that D.C. had 8,066 EVs registered as of the end of 2023, while the federal Joint Office of Energy and Transportation counts a total of 324 publicly available charging locations in the city, with 1,070 charging ports currently in operation.

The federal figures for Maryland are 72,139 EVs registered as of the end of 2023, and 1,844 charging stations with a total of 5,178 charging ports currently in operation.

DC Law in Detail

Both of the new rules are aimed at getting chargers into neighborhoods and locations that have significant populations that live in apartments and would have to rely on public chargers.

Maryland’s rule taking demand charges out of the equation should remove at least one barrier for more installations, while the D.C. law takes a more comprehensive approach.

New apartment houses with more than six off-street parking spaces will be required to make 25% of those spaces EV ready beginning in 2027, and those percentages will go up to 29% in 2031 and 33% in 2034. Chargers in apartment houses are typically Level 2 chargers, which require upgrades to standard residential electrical wiring to support the higher voltage these chargers use.

New commercial buildings with more than six spaces will have to install chargers in 15% of their spaces and have an additional 25% EV ready.

The law also prohibits apartment building owners or condominium associations from prohibiting individual residents from installing EV chargers for their own use ― for example, in a designated parking spot ― subject to some conditions. A resident would have to use licensed electricians or building engineers for the design and installation of a private charger and would be responsible for paying for the electricity used by the charger, as well as for its maintenance.

D.C. wants to install EV chargers on utility poles, similar to an initiative in Oregon. | © RTO Insider LLC

The law also requires the D.C. Department of Transportation (DDOT) to establish a Neighborhood Electric Vehicle Charging Infrastructure Pilot Program, which by Jan. 1, 2026, will install at least one Level 1 charger in each of four low-income neighborhoods in the city. The chargers will be sited at publicly accessible locations, such as on streetlamps or utility poles, or in public parking lots owned by D.C., and the DDOT will be required to post a list of the locations on its website.

The Department of Energy and Environment (DOEE) is tasked with publishing an Electric Vehicle Infrastructure Deployment and Management Plan on its website, with the first report due also on Jan. 1, 2026, followed by updates in 2029 and 2032.

The reports will include the number of EVs currently registered in D.C., a 10-year forecast of EV adoption and DOEE’s plans to ensure that “the number of electric vehicle charging ports in the District is equal to at least 5% of the number of electric vehicles DOEE forecasts will be registered.”

The DOEE report must also assess the city’s electric grid capacity and whether it will be able to “meet and sustain the demand for electric vehicles.”

Growth of Leasing and Used EV Markets

Despite often downbeat headlines and U.S. automakers’ retreat from their earlier ambitious EV goals, both the AAI report and a third-quarter market update from industry analyst Cox Automotive show that EV sales are rising across the U.S.

AAI reports EVs represented just under 10% of new light-duty vehicle sales in the first half of the year, while Cox Automotive’s Stephanie Valdez Streaty, director of industry insights, similarly pegged EVs with close to 9% of the market.

The sales figures in both reports include full battery EVs and plug-in hybrids, but not traditional hybrids.

EV sales in the third quarter showed “steady demand, a slower pace, yet record sales,” Valdez Streaty said. “We’re on track for another record-breaking quarter, with a forecasted EV sales volume at 338,844, reflecting an 8% year-over-year increase.”

She noted also that both the second and third quarters have seen consecutive months with over 100,000 EV sales. August’s sales of 119,652 EVs were a new record, and a 12.6% year-over-year increase.

But EVs’ upfront cost is still a barrier, with the average EV price, about $56,300, still 15.9% higher than the industry average as of June this year, according to figures from Cox.

Both reports highlighted some key trends.

The AAI report noted that sales of cars with traditional internal combustion engines (ICEs) have peaked. ICE vehicles represented 97% of new vehicle sales in 2016 but only 78% in the year to date in 2024. However, that decline in sales is being filled in large part by traditional hybrid vehicles, not plug-ins. The traditional hybrid market grew from 2% of the new sales in 2016 to 12.3% through the second quarter of 2024.

AAI also counted 117 different electric models sold in the second quarter, including 68 full EVs, 47 plug-in hybrid models and two fuel-cell vehicles. SUV models continue to lead the market, accounting for more than 70% of second-quarter EV sales.

Valdez Streaty pointed to the popularity of leasing as a more affordable pathway for EV adoption as well as a growing source of used EVs for the secondhand market.

“EV leasing remains highly attractive to consumers, offering benefits such as lower upfront costs, reduced financial risk, flexibility to upgrade to new EV models and elimination of residual value concerns,” she said.

Leasing accounted for 39% of new EV sales in June, which is about double the general industry average, she said. Third-quarter sales for used EVs could hit around 78,000, a 69% increase year over year.

With most leases lasting about three years, Valdez Streaty said, “a wider range of vehicles will soon come off lease and enter the market, offering consumers more affordable and diverse options as we move towards an all-electric future.”

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PJM Stakeholders Delay Vote on Generator Deactivation Rules

The PJM Deactivation Enhancements Senior Task Force (DESTF) has delayed voting on five proposals to rework the RTO’s rules for the advance notification generation owners must provide before deactivating units and the compensation structure for resources offered reliability-must-run (RMR) contracts.

Following several major changes to proposals presented during the group’s Oct. 2 meeting, participants requested additional time to understand where each package stands. An additional DESTF meeting was scheduled for Oct. 17 to open the vote, which will be conducted on the PJM website after the meeting closes. The Independent Market Monitor, Sierra Club and Calpine have each sponsored proposals in the DESTF, while PJM has sponsored two packages, one of which was presented for the first time Oct. 2.

The most significant changes were made to the Monitor’s proposal, with new language added that would model the expected output of RMR units in the capacity supply stack — counting them toward meeting the reliability requirement without mandating that they offer into Base Residual Auctions (BRAs) and take on Capacity Performance (CP) obligations

Monitor Joe Bowring has argued that not including RMR resources in the supply stack is inconsistent with PJM’s practice of modeling their output when calculating the capacity emergency transfer objective (CETO) and limit (CETL) for different delivery areas. Under the Monitor’s proposal, RMR resources would not be included in the day-ahead or real-time energy markets nor ancillary services unless required to maintain transmission reliability or resource adequacy. (See PIO Complaint Faults PJM Treatment of Deactivating Generation.)

Anti-toggling rules were also added to the Monitor’s package, stating that if a RMR unit ultimately decides not to deactivate after the contract term has begun, it would be required to refund capital recovery for improvements and maintenance to the appropriate load-serving entity.

The compensation rate in the Monitor’s package was adjusted to be based on short-run marginal costs (SRMC) rather than megawatt-hours, and an applicable adder of 10% of the deactivation avoidable cost rate was also added. Actual revenues would be the market revenues the RMR resource receives, such as energy and ancillary service payments, minus the SRMC for the unit.

A limit to the duration of RMR contracts was proposed by the Monitor, capping them at five years with a possible three-year extension. Any requests for an extension would have to be presented to the PJM membership at least a year in advance, where practical, so stakeholders can explore alternative solutions to resolving the underlying transmission violations.

PJM’s Package A pointed to the IMM’s language defining the compensation rate and would allow generation owners to choose between the Monitor’s net revenue compensation approach or the status quo cost-of-service option.

All five proposals would require generation owners to provide PJM with at least one year’s notice ahead of their desired deactivation date, while the RTO’s proposals contain exceptions for units that must retire to comply with government policies and catastrophic failures. PJM also added language granting exemptions for the requirement that resources must offer into capacity auctions for years when the unit would be granted deactivation.

The Monitor’s proposal includes exceptions for failures and a “clear regulatory order to retire,” which is mirrored by the Calpine package. The Sierra Club would allow early deactivation, within the one-year notification period, if PJM determines that there would be no reliability issues created by the retirement, along with catastrophic failures and policies that would make the resource uneconomic.

PJM also introduced a new Package D aimed at compromising with some of the changes made to the Monitor’s proposal. It would remove the $2 million limit on project investment costs recoverable through the default compensation rate and rework the default avoidable cost credit (DACC) calculation when it is used for determining compensation. Other components are based on Package A.

David “Scarp” Scarpignato, of Calpine, said it would be inappropriate to move to a vote immediately after major changes were presented to proposals that could change stakeholders’ voting positions. Several changes would also need to be made to the Calpine proposal, which contained references to the original IMM and PJM packages for some components.

Calpine’s proposal would preserve the status quo compensation rate with a 20% applicable adder and adopt the Monitor’s components on actual revenues, RMR term limits and requiring RMR agreements to be public. The company copies PJM’s language on notification timelines. Calpine’s anti-toggling rules would require an RMR unit that reverses its retirement during the RMR term to refund LSEs for payments toward capital improvements. The requirement would also be effective for units that return to serve two years after deactivation.

The Sierra Club proposal largely mirrors the Monitor’s language, but it would subject RMR units to CP penalties for underperformance with an annual stop-loss set at the BRA clearing price per megawatt.

Package sponsors discussed both notifying other parties with proposals of any significant changes ahead of the Oct. 17 meeting and replacing cross-package references with specific language to avoid repeat conflicts. There were also requests for PJM to draft a document or presentation that details the differences between each proposal.

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RI Siting Board Claims Authority over Storage Permitting

The Rhode Island Energy Facility Siting Board (EFSB) ruled Oct. 3 that it has jurisdiction over large battery storage projects, overruling precedent and giving the board the ability to override local permitting decisions on storage projects if it deems a project has met all the legal requirements (SB-2024-01). 

In April, the Quonset Development Corp. (QDC) requested the EFSB declare a proposed 210-MW battery project is outside the board’s jurisdiction, arguing the EFSB has determined “it does not have jurisdiction over battery energy storage systems.” 

The prior precedent stems from a 2019 EFSB ruling that a 180-MW storage resource is not under the jurisdiction of the board because the state’s Energy Facility Siting Act does not reference battery storage (SB-2019-02). 

QDC also argued the EFSB does not have jurisdiction over a substation, tie line and switchyard needed to connect the battery to the transmission system, writing that the 115-kV tie line “is not a transmission line” and instead is “a line that connects a non-generating battery energy storage system for the purpose of storing and discharging electricity.” 

The EFSB wrote in its ruling the question of jurisdiction hinges on “whether the project itself or any component thereof falls within the definition of a ‘major energy facility,’ as defined by the Energy Facility Siting Act.” 

The definition includes “facilities for the generation of electricity designed or capable of operating at a gross capacity of forty (40) megawatts or more.” 

While QDC argued this definition does not apply to battery storage, the EFSB disagreed, highlighting language from ISO-NE and FERC that categorizes battery storage as a type of generation.  

“It would be illogical for the state and federal definitions to collide with each other, especially when the energy industry is inherently interstate in nature and Rhode Island is inextricably dependent upon the regional electric system for continuous reliable service,” the EFSB wrote.  

Regarding the precedent set by its 2019 ruling, the EFSB wrote that it “respects the importance of following the reasoning of prior cases and adhering to settled rules,” but added it ultimately is “not bound by its prior decisions and can depart from its own precedents, as long as the agency explains why such a departure is reasonable.” 

The EFSB also highlighted the implications the ruling could have on the state’s clean energy goals. This year, Rhode Island set a target of installing 600 MW of storage by the end of 2033; the project at issue in the ruling would meet over a third of this goal. (See RI Sets 600-MW Energy Storage Target.) 

While no local permits would be required for this project, which would be in an industrial park, local permitting could pose “an insurmountable obstacle” for future battery projects in the absence of EFSB jurisdiction, the board wrote. The EFSB can overrule local permitting decisions for projects under its authority. 

The EFSB similarly found that it has jurisdiction over the infrastructure needed to connect the battery facility to the transmission grid. 

“Given the numerous FERC cases unambiguously illustrating that generator tie lines are jurisdictional transmission facilities, the claim made by petitioner that the 115-kV Generator Tie Line is not serving a transmission purpose is contradicted by FERC precedent and, therefore, is unsustainable,” the EFSB found.  

It added that a lack of EFSB jurisdiction over interconnection infrastructure “could have been devastating to the ability of an offshore wind developer in the future to interconnect its project to the transmission system within or through Rhode Island, given the potential for local opposition.” 

The EFSB said the project developer must submit an application for the battery facility and its associated electric infrastructure.  

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CAISO Outlines EDAM Access Charge Plan for its Own BA

CAISO on Oct. 7 described to stakeholders how it will apply the Extended Day-Ahead Market (EDAM) transmission revenue recovery mechanism to its own balancing authority area.  

The mechanism, referred to as the EDAM access charge, will allow transmission owners (TOs) to recover transmission revenue shortfalls attributed to transitioning their assets into the day-ahead market.  

The access charge was the only provision of CAISO’s initial EDAM tariff proposal that FERC rejected last December, finding the ISO failed to justify the reasons behind the three components constituting the charge. CAISO revised the plan and it was accepted by the commission in June. (See FERC Approves EDAM Tx Revenue Recovery Plan.) 

During the Oct. 7 meeting, CAISO staff gave an overview of how the access charge could be applied within the ISO through an explanation of the plan’s three components for calculating and recovering lost revenue after launch of the EDAM.  

The first component allows TOs to recover historical transmission revenues associated with wheeling access charge (WAC) revenues.  

“When an EDAM entity joins the EDAM, the intertie point becomes a transfer point between the ISO and that EDAM entity, and there may be an impact on wheeling access charge [WAC] revenues that were historically recovered across that intertie,” Milos Bosanac, CAISO regional markets sector manager, said at the meeting. “This component 1 allows for the recovery of those historical WAC revenues at that particular intertie to the extent that there’s an impact.”  

The WAC revenues eligible for recovery under the mechanism will be based on a three-year average of revenues prior to that transfer point becoming an EDAM point, Bosanac explained. The draft tariff revision states that each TO will be responsible for calculating the first component. 

Heather Curlee, senior counsel at CAISO, dove into the draft tariff language to implement the access charge in the ISO and provided additional details on the plan’s components.   

The second component seeks to compensate TOs for costs “associated with forgone transmission sales on eligible existing contracts or [transmission] upgrades” that potentially increase the transfer capability between EDAM areas. Recovery of those costs would again require analyzing the three-year historical average of recovered revenues on a particular EDAM transfer point and comparing it to the overall ratio of the total transmission revenue requirement within the BA.  

According to the tariff, a participating TO with existing contracts will calculate the second component, to include revenue shortfalls associated with the release of transmission capacity resulting from expiring existing rights not included in the first component.  

The third component centers on compensating CAISO TOs for EDAM wheel-through transfers that provide benefits for other parts of the market footprint.  

The draft tariff revisions say that in periods when the total volume of EDAM wheel-through transactions exceeds the total net transfers of the CAISO BA, the ISO will calculate by multiplying its share of the excess volume based on its individual share of transmission revenue requirements in relation to total transmission revenue requirements for the CAISO BA.  

CAISO will distribute to gross load in the ISO BA each EDAM access charge allocated to its BA, according to the proposed tariff revision.  

The ISO plans to file the draft tariff language with FERC in November.