Search
March 11, 2025

7th ‘Issue Alert’ Highlights Markets+ Footprint

Proponents of SPP’s Markets+ argued in their latest “issue alert” published Feb. 28 that the day-ahead market option provides a robust footprint with “exceptional generation and load diversity” across the region while also claiming recent warnings about its seam with CAISO’s Extended Day-Ahead Market (EDAM) are overblown. 

The alert is the seventh and last in a series of notices highlighting the purported advantages of Markets+ over EDAM and the Western Energy Imbalance Market (WEIM). The alerts have covered topics such as governance, reliability, pricing practices, market seams, emissions and market operations. 

The contributing parties include Arizona Public Service, Chelan County Public Utility District (PUD), Grant County PUD, Powerex, Public Service Company of Colorado, Salt River Project, Snohomish County PUD, Tacoma Power, Tri-State Generation and Transmission Association, and Tucson Electric Power. 

In their seventh alert, the proponents argued Markets+ will “be substantial in size with exceptional generation and load diversity.” For example, the market will have peak demand of over 52 GW and annual demand of over 280 TWh; a significant mix of resource diversity; clean flexible supply; and a “large geographical footprint — encompassing parts of 11 different states — resulting in a reduced probability that heat waves and cold snaps affect the entire Markets+ footprint simultaneously.” 

The alert also took aim at recent production cost studies, some of which have suggested EDAM would provide the most because of its large footprint, which includes California. (See Brattle Study Shows Big Benefits for California in ‘Expanded’ EDAM.) 

However, the studies do not capture the full economic picture and fail to account for the differences in market design between Markets+ and EDAM, the alert argued. The models assume Markets+ and EDAM will be isolated with limited trade when, in reality, entities in each will continue trading with one another, it said. 

“This defies real-world expectations and ultimately promotes an incorrect conclusion that being in the largest possible market footprint should be the only relevant consideration informing an entity’s market choice above all other factors, including fundamental differences in governance and market design that are not evaluated by these studies,” the proponents contended. 

John Tsoukalis, a principal at The Brattle Group, contended that the alert “mischaracterizes” assumptions Brattle studies have made regarding market seams.

“Our studies show that there continues to be significant trading across the market seams. In fact, we assume a lower hurdle rate to trade between Markets+ and EDAM than we do to trade bilaterally between two utilities in the WECC,” Tsoukalis told RTO Insider.

“The issue alert does not name our study directly, so perhaps they are referring to the assumptions used in other studies and assuming all production cost studies are the same. That is not the case,” he said.

Tsoukalis noted also that some stakeholders “have confused long-term bilateral transactions across market seams with short-term day-ahead trading across market seams.” He said Brattle’s model treats the two types of transactions differently, with long-term transactions showing no transaction costs while costs applied to short-term transactions under a two-market scenario are assumed to be lower than costs observed today in the West.

The alert also covered congestion costs. The proponents argued that Markets+ provides enhanced protection from congestion costs by allocating congestion revenue to firm transmission rights holders in proportion to the congestion costs incurred on their specific transmission paths. 

In contrast, EDAM participants will miss out on robust congestion cost protections, the proponents claimed. 

“EDAM will not return these congestion charges back to the firm [open-access transmission tariff] rightsholders that are exposed to the congestion costs and will instead return the revenue to the [balancing authority area] where the constraint is located, which public data show is most often the CAISO BAA,” the alert argued. “Among the many negative consequences of this design, it is likely to impose large new costs for the transmission customers and ratepayers of EDAM participants outside of California, to the benefit of customers in the CAISO BAA.” 

When asked to comment on the issue alert, CAISO’s head of communications, Jayme Ackemann, pointed to another study by the Brattle Group that suggests some EDAM participants “could conservatively save consumers nearly $900 million annually.” (See Updated EDAM Study Shows Doubling of PacifiCorp Benefits.) 

Ackemann also pointed to the West-Wide Governance Pathways Initiative, an effort to ensure independent governance of CAISO’s EDAM and WEIM. California state lawmakers recently introduced legislation as part of the initiative. (See Pathways ‘Step 2’ Bill Sets Conditions for EDAM Governance.) 

“With FERC’s approval of EDAM’s market design and more than 50% of the load in the West planning to participate, it is clear that maintaining a strong, geographically diverse and interconnected system is crucial to maximizing consumer benefits through widespread participation in WEIM and EDAM,” Ackemann added. 

PJM Stakeholders Approve SIS Manual Language

VALLEY FORGE, Pa. — The PJM Planning Committee on March 4 endorsed by acclamation revisions to Manual 14H to conform with changes to the RTO’s surplus interconnection service (SIS) process FERC approved in February (ER25-778).  

The committee discussed the specifics of how PJM would implement the changes during its meeting before approving the language. (See FERC Approves PJM’s One-time Fast-track Interconnection Process.) 

SIS allows developers to add new resources to an existing point of interconnection that is not fully used; for example, if an existing resource does not operate at all times of day. Injection is capped at the capacity interconnection rights in the original resource’s interconnection service agreement, and surplus interconnection requests do not trigger the need for new network upgrades. 

The new manual language would eliminate categorical prohibition on storage eligibility for SIS; change how PJM models proposed resources alongside projects in the generation interconnection queue; expand eligibility to allow SIS applications when the host resource is still in development; and allow projects that consume transmission headroom but do not require network upgrades. It would also allow projects that require additional interconnection facilities for the service while still prohibiting new network upgrades. 

PJM’s Ed Franks said SIS applications would be studied using the most recent cluster phase 3 model to be commenced, which he said would strike a balance that allows projects to proceed without being disrupted if others in that cluster drop out. Franks said it is less likely for projects later in the queue to withdraw, reducing the risk of cluster analyses having to be retooled in a manner that impacts the potential for SIS projects to be assigned network upgrades. 

“This would only be exponentially more complicated if we were using an earlier model,” he said. 

Responding to stakeholder questions on what battery storage configurations would be allowable, Franks said both open- and closed-loop storage would be permitted so long as network upgrades are not triggered. 

Ken Foladare, director of RTO and regulatory affairs for Tangibl Group, said the change would allow existing renewable resources to increase their reliability contribution by adding storage, transforming a non-dispatchable resource into semi-dispatchable. 

Jason Connell, PJM | © RTO Insider LLC

“This is a good opportunity for PJM to be able to add megawatts, especially if you’re adding battery storage to standalone wind, standalone storage and contribute to resource adequacy,” he said. 

Stakeholders questioned whether there would be a cure process for cases in which network upgrades are identified and allow for developers to change the scope of their projects to mitigate those violations. PJM Vice President of Planning Jason Connell said the tariff is clear in that if the SIS request causes a need for network upgrades, it would be denied. 

PJM Director of Interconnection Planning Donnie Bielak said developers could submit a new application with changes that could avoid triggering the upgrades that led to rejection. He said the RTO wants to avoid taking on the role of a design consultant engaging with a back-and-forth with the developer on what can be done to avoid network upgrades. 

Petition Asks FERC to Potentially Claim Jurisdiction over Puerto Rico

Puerto Rican company Pluvia filed a petition with FERC in February asking the commission to find that its proposal to link the territory to the continental U.S. via grid-scale batteries on cargo ships could trigger its jurisdiction over the island (EL25-57). 

The batteries being shipped back and forth would be storage-as-transmission-only assets (SATOA), and similar projects have been proposed using railcars. The mobile storage also could ship power the other way. The firm’s filing says the technology could be used for day-to-day shipping and under emergency conditions. 

The firm filed its petition in early February, and FERC noticed it a couple of weeks later. It largely has flown under the radar, with only Public Citizen filing a “doc-less” motion to intervene before the comment period closed March 3. 

Pluvia describes itself only as “a domestic limited liability company wholly owned by citizens of the United States and organized under the laws of the commonwealth of Puerto Rico, inter alia, to produce, transmit and sell electric energy at wholesale.” Exactly who is behind the firm is unclear: Its petition was filed by one lawyer, and its incorporation documents with Puerto Rican authorities only list another lawyer. 

The state-owned Puerto Rico Electric Power Authority (PREPA) entered into contracts with Luma Energy (a subsidiary of Canadian utility Atco and Quantas Services) to run its grid in 2021, and with Genera PR (a subsidiary of the LNG firm New Fortress Energy) to run its generation in 2023. Pluvia told FERC that those deals have kept a monopoly in place, which is overall detrimental to the island’s population. 

“Public electricity monopolies have been effectively managed by other states, which have cooperated to lower costs and improve service to customers by implementing federal electric competition policy under the” Federal Power Act, Pluvia said. “The government of Puerto Rico’s administration, however, has been unsuccessful. The damage Puerto Rico’s electricity monopoly has caused is considered a human-made disaster with appalling humanitarian and economic impacts in Puerto Rico that also impact United States taxpayers.” 

The island infamously was impacted by Hurricane Maria, which in 2017 destroyed the island’s power grid and kept some of its residents without power for four weeks. 

“It’s really not done well since the hurricanes; the reliability of the system is probably about 10 times worse in terms of safety and safety metrics than the U.S. average,” Cathy Kunkel, energy consultant for the Institute for Energy Economics and Financial Analysis, said in an interview. “And the reliability has actually declined over the last year or so.” 

PREPA’s system was contracted to Luma and Genera after the hurricane, with Kunkel saying it was not sold outright because that would have put at risk federal disaster relief funds being used to shore up the grid. 

High costs and an unreliable power system have been impairments to economic growth on the island and its ability to stop people from moving to the mainland, Pluvia said in its petition. 

On top of still running a creaky grid before and after Maria ravaged PREPA’s system, the public utility has been bankrupt, which has hampered its ability to attract needed investment, Pluvia said 

“PREPA’s lack of credit creates a barrier to normal project financing for energy projects, as financing sources hesitate to bet on PREPA’s performance of its long-term contractual obligations to buy electricity in quantities and at prices stated in” power purchase agreements, Pluvia said. 

The combination of public monopoly and insolvency leads consumers and investors to a dead end, while creating the misleading appearance of an energy transition through multiple phases of bids and awards that produce contracts needing affordable financing, it added. 

While Pluvia and its backers might have run into trouble with securing contacts, Kunkel noted that major deals have been struck recently. 

“There’s definitely been long-term contracts that have been signed in the last several years,” Kunkel said. “There’s been a number of new renewable energy contracts and some battery storage contracts and a new natural gas plant contract that was signed in December.” 

Another trend since Maria has been end-use consumers’ increasing adoption of distributed solar and storage, which Kunkel said makes up about 9% of Puerto Rico’s electricity consumption. 

The issue of FERC jurisdiction over Puerto Rico’s grid has come up before, such as when Alternative Transmission filed a petition in 2023 seeking a finding from the commission that its proposed undersea cable would not trigger commission jurisdiction (EL23-14). The project and its details were a little too vague for FERC to give a firm answer, but it did discuss the jurisdictional issues and said it could forswear oversight of Puerto Rico’s grid as it has in similar cases involving ERCOT. (See FERC Weighs in on Jurisdictional Questions over Puerto Rico Project.) 

The Alternative Transmission case came up in Pluvia’s petition as it seeks to clarify that its proposal of shipping batteries back and forth by sea could trigger FERC jurisdiction over the island’s power system, which the commission said could happen with an undersea cable. 

The petition does not ask FERC to claim jurisdiction immediately, but Pluvia said it may request that in future proceedings, and it expressly reserved the right to do so. 

Puerto Rico has a version of a state regulator already called the Energy Bureau, which was set up about a decade ago to oversee PREPA. IEFFA’s Kunkel said it has helped bring some normality to the island’s regulatory structure. 

“One of the problems with PREPA … was that it really had just kind of become a very politically driven entity and was not making decisions based on best-practice, sound utility planning,” Kunkel said. “For example, it had not had a base rate case since the 1980s. One of the first things that the Energy [Bureau] did was to have a base rate case.” 

As for bringing RTO-style markets to the island, it is unclear how much benefit they would bring: Puerto Rico’s system is far smaller than any of the continental organized markets, meaning it would lack the benefits that come from centrally dispatching large amounts of generation across a wide footprint, Kunkel said. 

Offshore Wind Development Rebound Expected — Outside US

With one notable exception, the offshore wind industry is on track for a global rebound, Rystad Energy predicts in its 2025 outlook, released March 2.

The energy research and intelligence company expects capacity additions to reach 19 GW — substantially more than the roughly 8 GW and 10 GW seen in 2024 and 2023, respectively — and expects investment to reach $80 billion.

Mainland China, the world’s largest offshore wind market, will account for more than 12 GW of the total. With South Korea and Taiwan added in, Rystad projects 74% of 2025 offshore generation capacity additions will be in Asian waters. The U.K., Germany, France and Netherlands account for the remaining 26%.

The world’s largest economy, which until very recently offered robust policy support for offshore wind development, is zeroed out in Rystad’s 2025 forecast of capacity additions.

“U.S. federal policy is creating significant global ripple effects, hindering offshore wind development, especially where a large portion of auctioned capacity lies,” Petra Manuel, Rystad’s senior offshore wind analyst, said in announcing the outlook. “President Donald Trump’s January memorandum halting new leasing and approvals on the Outer Continental Shelf, citing environmental and safety concerns, could last throughout his term, pausing new developments and creating continued uncertainty for ongoing projects.”

One U.S. offshore wind project now under construction, the 800-MW Vineyard Wind 1, could potentially have a 2025 commercial operation date, but it has experienced repeated delays.

Four other projects are in the works: Offshore and onshore construction are underway on Revolution Wind and Coastal Virginia Offshore Wind, while onshore work has begun for Sunrise Wind and Empire Wind 1.

None of the four are scheduled to be completed this year.

Trump’s Jan. 20 memorandum suspended new offshore wind leasing and directed “a comprehensive review of the ecological, economic and environmental necessity of terminating or amending any existing wind energy leases,” injecting a new degree of risk and uncertainty into an industry already struggling to build momentum in the U.S.

While China will dominate construction completion in 2025, Rystad expects that European projects will represent the bulk of final investment decisions (FIDs) made in 2025 for future construction starts — 9.5 GW in total, with Poland, Germany and the U.K. accounting for 6.9 GW. Worldwide, 2025 FIDs are expected to be about equal to those of 2024.

Another barometer of future planning is site leasing. Rystad notes that seabed areas holding a record 55 GW of potential capacity were offered at auction in 2025 outside China. But not all of that capacity found a buyer, particularly in the U.S., where two of four auctions were called off before being held and a third drew bids for only half the lease areas offered.

Rystad expects significantly less capacity to be offered at auction in 2025 — about 30 to 40 GW worldwide, which would be in line with activity seen in 2021 and 2022.

Ontario Threatens 25% Tariff on Electricity to US

Ontario Premier Doug Ford announced March 4 that the province will enact a retaliatory 25% tariff on its electricity exports to the U.S. — or even halt them — if President Donald Trump doesn’t stand down in a burgeoning trade war. 

“Today, I am writing to every senator, every congressman and woman and the governors from New York state, Michigan and Minnesota, telling them that [if] these tariffs persist, if the Trump administration follows through on any more tariffs, we will immediately apply a 25% surcharge on the electricity we export,” Ford said from a podium emblazoned with “Canada is not for sale.” 

“We will not hesitate to shut off their power as well,” Ford told reporters at the press conference. 

According to a draft public notice of tariff  rules  posted March 3, a 25% tariff on nearly all goods from Mexico and Canada and a 10% tariff on Canadian energy went into effect at 12:01 a.m. March 4.  

Ford’s announcement was part of an unfolding Canadian response. He said it was a “tough day” for both the U.S. and Canada. 

“Canada and Ontario did not start this fight. We want to work with our American friends and allies, not against them. We said we’d never start a trade and tariff war with the U.S. But you’d better believe we’re ready to win one,” he said. 

Ford added that the U.S. leaders he has spoken to agree that Trump’s tariffs on Canada are a “massive mistake” that stand to hurt both countries. He said the two could have worked together to economically sustain one another.  

“We have no choice. We have to respond … tariff for tariff, dollar for dollar,” he said. Ford said Canadians should be prepared for a long fight and escalations, including “surcharges or outright restrictions” on the critical minerals and electricity Canada supplies to the U.S. Ford said Ontario’s tariffs would be used to help the workers affected. 

Canadian power exports to the U.S. fluctuate year to year, though the U.S. is consistently a net importer of power. In 2023, the U.S. took in 15 TWh compared to 42 TWh in 2022, according to the U.S. Energy Information Administration. The decline was brought on by an ongoing drought affecting Canadian hydropower and lower natural gas prices in the U.S.  

Ontario exports power through New York, Michigan and Minnesota. The province powers about 1.5 million homes across those states. 

During a separate and routine press conference March 4, New York Gov. Kathy Hochul said she does not think her state has a “target on our backs from Canada.”  

“Fortunately for our state, I’m good at developing positive relationships with our allies, not embarrassing them,” Hochul said. She said the western part of the state and Canada share an “incredible synergy” and that she had previous assurances from Ford that he would not harm the state.  

“Now, whether that means he can help the flow of energy that we’re already counting on to keep coming here … I’m happy to have additional conversations with him on how we can support each other during this crisis,” she said. 

In response to RTO Insider, MISO said it had more to do to understand how the U.S.’ tariffs work and did not address the prospect of Ontario’s retaliation. The MISO footprint includes Michigan and Minnesota. 

“This is a fluid situation, and it is unclear whether the U.S. import tariffs apply to imports of electricity from Canada, and it is uncertain whether or when this will be resolved. MISO has received no confirmation from federal agencies regarding the duties’ applicability to electricity or who will be responsible for paying or collecting them,” spokesperson Brandon Morris told RTO Insider. 

However, MISO noted that less than 1% of its total energy in 2024 was supplied via Canadian imports, with less than half of that hailing from Ontario. 

“For context, that amount is equivalent to approximately one power plant. MISO manages the loss of power plants like this every day to ensure reliability across our footprint,” Morris said. 

Stacey LaRouche, press secretary for Michigan Gov. Gretchen Whitmer, said the governor and her team are monitoring the situation. Whitmer has previously warned that tariffs would put jobs on both sides of the border at risk and stand to further slow supply chains and raise consumer costs. 

Minnesota Gov. Tim Walz called the tariff back-and-forth “totally avoidable.”  

“And if I had some advice on this one: President Trump can just claim victory. We’ll create an award here and award it [to] him that he won the trade war. Good for you,” Walz said during a March 4 press conference before the agricultural community of Cannon Falls, Minn. “But let us get back to the work of real economics; the growing of food; making sure that we’re innovating for the future.”   

Ford said he was encouraging his fellow premiers to follow suit with reciprocal surcharges. If any make similar announcements, ISO-NE could be included in Canada’s counteroffensive. 

“New England’s power system is connected to Quebec and New Brunswick, not Ontario, and the region’s grid is operating reliably today,” ISO-NE said in an email to RTO Insider. 

Vincent Gabrielle and Jon Lamson contributed to this report. 

Former BPA Leaders Again Protest Workforce Cuts

IRVING, Texas — Former Bonneville Power Administration heads Randy Hardy (1991-1997) and Stephen Wright (2000-2013) have again collaborated on a public letter distributed in the Pacific Northwest about the “tremendous risk being created” in the region by workforce reductions at the federal agency.

In a letter made public March 3, which followed a previous letter in February, Hardy and Wright argued that the reductions will not realize taxpayer savings, as all BPA expenses are funded through electricity rates charged to its utility customers and passed on to retail consumers. They noted that the federal power marketing administration has already lost 14% of its workforce and a fifth of its power dispatchers, endangering the entire Northwest power grid.

“There has been no strategy to the workforce reductions such as targeting less important positions, or fencing off positions critical to ensuring public health and safety such as power dispatchers and lineworkers,” the former administrators wrote. “While BPA management is strictly limiting communication, from our experience we can presume that management is now attempting to plug round pegs into square holes and in many cases not having anywhere near enough pegs.”

“The implications of those people dropping out of the workforce without a plan just leads one to question: ‘What are the impacts going to be?’” Wright, a member of SPP’s Board of Directors, told RTO Insider as the letter was being released. “When you have people that are everything from duty schedulers, hydro schedulers to linemen, it just leaves you with a bunch of questions about, well, how are they going to manage through this? And then what implications are there for others that are impacted by their operations? They’re so interconnected, there’s a chance that that could be widespread.”

The administrators added three concerns to those expressed in their previous letter:

    • The reductions will increase outage repair times across BPA’s six-state region.
    • Employee safety will be compromised with crews stretched thin and likely requiring more overtime.
    • Geopolitical tension translates to risk of cybersecurity intrusions.

“We reemphasize that we strongly support seeking efficiency gains especially through the adoption of new technology,” Hardy and Wright wrote. “But electricity delivery, unlike many other businesses, is a function where the public reasonably expects — and public health and safety demands — round-the-clock, uninterrupted service.”

They closed their missive by asking for relief from the Department of Energy, urging a total exemption from pending reductions, lifting an existing hiring freeze, rehiring the 100 or so probationary employees already laid off, and exempting the U.S. Army Corp of Engineers and Bureau of Reclamation staff who are funded by BPA revenues.

BPA is part of DOE and provides about 28% of the Northwestern U.S.’ electricity, managing a 15,000-mile transmission network. It is one of the key potential participants in SPP’s Markets+, a day-ahead service offering. Wright serves as chair of the Interim Markets+ Independent Panel and is one of three SPP directors serving on it.

The letter was written for those in the Northwest and distributed by the Public Power Council and others. Hardy took the message to The Seattle Times.

Wright said he and Hardy are simply doing what others can’t.

“We’re putting information out right for people to be aware of,” he said. “The problem is, it’s difficult for the agencies to talk about this, and so, to some extent, we have to surmise some things. But between Randy and me, we just have enough years having been at Bonneville; we can put pieces together that it might not be easy for other people to put together.”

Wright was speaking during a break in SPP’s Energy Synergy Summit. In a separate meeting earlier that day, he asked SPP legal staff about staff reductions at FERC and the potential effect on the grid operator’s “specific issues.”

“I was asking the question because I don’t know what’s going on, but the way [job reductions] landed at Bonneville, I don’t know why it would be significantly different: … the relatively random nature in which people are choosing to resign, or the implications of probationary employees,” he said. “And by the way, ‘probationary employee’ doesn’t mean that they’re new.”

According to the U.S. government, probationary federal workers are new or reassigned employees under evaluation during a trial period, which generally lasts a year. A federal employee can become probationary with a transfer or new job within the same department.

When it was pointed out to Wright during the meeting that he is helping to raise awareness of the layoffs and their potential effect on the Northwest, he said, “This is a very active conversation in the Northwest.”

“The thing that really is bothersome about this is that it doesn’t do anything for the federal deficit,” he said.

In the letter, Wright and Hardy wrote, “Reducing BPA staff does not save U.S. taxpayers one dime.”

The former administrators are not alone in expressing their concerns over the BPA job reductions. Wright reeled off a list of several other public figures who are also speaking up: All but one of Washington state’s Democratic U.S. representatives, who wrote a letter to Energy Secretary Chris Wright (Rep. Marie Gluesenkamp Perez was the lone holdout); Energy and Commerce Committee member Rep. Kim Schrier (D-Wash.), who made a speech on the House floor; and Oregon’s U.S. senators, Ron Wyden (D) and Jeff Merkley (D), who wrote a letter to President Donald Trump. (See Ore. Senators Ask Trump to Justify ‘Reckless’ Job Cuts at BPA.)

Wright said the only Pacific Northwest Republican who has spoken about the issue is U.S. Rep. Dan Newhouse (Wash.). “He did it in a newsletter to his constituents, just saying he’s concerned about the impacts on the energy and research issues. He also has a National Lab in his district,” Wright said.

Asked if the outreach to the government and stakeholders is working, Wright said, “It’s definitely getting attention. I mean, a fair amount of attention.”

Fred Heutte, senior policy associate with the Northwest Energy Coalition, agreed with the sentiments in the letter. He told RTO Insider that though NWEC disagrees with BPA on many issues, “we are absolutely committed to the idea that Bonneville must have the staff to operate the system day-to-day.”

The staffing crisis “is a direct threat to reliability,” Heutte said. He added that regional entities, such as WECC, “have a role in standing up and saying that their main focus under the [Energy Policy Act of 2005] is reliability.”

Heutte sits on WECC’s Member Advisory Committee. The organization oversees compliance with reliability standards. It also conducts resource assessments and planning functions for the Western Interconnection.

Approximately 90 million people are served in the Western Interconnection. Heutte said that WECC speaking up would send a “very important signal.”

“We want people to say, ‘If I flip the switch, the lights will go on.’ That’s a good thing, but there’s an enormous amount of work and enormous amount of vulnerability now to not having the staff sufficient to make that happen. So I hope at the appropriate time that WECC will speak up.”

When asked to comment on the letter, BPA spokesperson Doug Johnson told RTO Insider in an email that “there is nothing in the letter we feel the need to correct or expand upon.”

“WECC is aware of the personnel impacts at Bonneville Power Administration and other federal entities in the West,” Kris Raper, vice president of strategic engagement and external affairs at WECC, told RTO Insider in an email. “We will continue to monitor the situation as it develops, including collaborating and coordinating with BPA and other electric industry owners and operators in support of their role in serving customers with the essential power that they need.”

FERC Grants Palisades Extra Time to Get Online

FERC has given the Palisades Nuclear Plant special permission to exceed MISO’s 36-month limit on generator suspensions as owner Holtec International works through the plant’s reopening. 

The commission decided Feb. 28 that Holtec can use a 22-month extension on top of the RTO’s three-year limit to bring Palisades back online (ER25-1083). 

The MISO tariff limits generation suspensions to a cumulative 36-month maximum over a five-year span. After reaching the limit, generators are expected to return to service or risk termination of interconnection service. 

Holtec told FERC that its plan to return Palisades to service was not crystalized until April 2024. Previous owner Entergy placed Palisades in suspension status with MISO in 2022. 

FERC’s leeway means Holtec now has until March 1, 2027 — instead of May 20, 2025 — to start the reactor under MISO’s rules. Holtec is navigating a recommissioning process with the Nuclear Regulatory Commission and hopes to have the plant online in October at the earliest. (See Anti-nuclear Groups Challenge Palisades Reopening.) 

Holtec argued that if it was not granted the extra time and lost its interconnection rights with MISO member Michigan Electric Transmission Co., it could result in “substantial delays or potential loss of baseload generation critically needed to support resource adequacy in the MISO region.”  

The Michigan Public Service Commission filed comments in support of the waiver. 

Holtec also said it is preparing a new generator interconnection agreement to file with MISO that will lay out expectations and associated deadlines on the path to reactivating the partly decommissioned nuclear plant. 

FERC said Holtec seemed to act in good faith and that a continuation of the Palisades suspension without terminating interconnection service would not harm any third parties. On the other hand, the commission said that disconnecting Palisades from the MISO system would “jeopardize the recommissioning timeline.”

The commission noted that, according to Holtec, Palisades’ reopen will not require network upgrades. It also said it had Holtec’s word that MISO verified the 22-month waiver would not present “reliability concerns or interconnection queue management issues.” 

Federal Briefs

NOAA Suffers Mass Layoffs

The Trump administration informed hundreds of probationary employees in the National Oceanic and Atmospheric Administration that they were fired. The firings were expected to cost more than 800 people their jobs. 

Most of the employees were responsible for producing weather forecasts, maintaining radar systems, gathering data from satellites and monitoring commercial fisheries. Several hundred more staff members were expected to leave as part of the resignation program. 

More: The Washington Post; The New York Times 

Congress Votes to Overturn Rule Implementing Methane Fee

The House last week voted 220-206-1 to overturn a Biden-era rule implementing a program that charges oil and gas companies for excess methane emissions. The Senate voted 52-47 the next day to repeal the rule. 

Overturning the rule does not necessarily eliminate the program, which was written into law in the 2022 Inflation Reduction Act. Fully overturning the rule appears to require additional legislation, and Republicans are expected to try to repeal it as part of their broader legislative package. Under the law, companies that emit methane at levels equivalent to 25,000 metric tons of carbon dioxide each year must pay for their excess emissions. 

More: The Hill; The Washington Post 

EIA: US Coal Retirements to Double in 2025

U.S. power generators plan to remove about 8.1 GW of coal-fired capacity in 2025, which would roughly double the amount that was retired in 2024, according to the Energy Information Administration. Coal retirements slowed last year to 4 GW, a sharp decrease from the 9.8 GW retired annually over the past decade, the EIA said. The country’s electricity supply from coal, which once was the primary source, has dropped to about 16%. 

More: Reuters 

Company Briefs

NRG to Build Natural Gas Plants to Supply Data Centers

NRG Energy has announced plans to build four new natural gas power plants to supply data centers. 

NRG said it plans to build 5.4 GW of natural gas combined-cycle power plants primarily to serve data centers in the ERCOT and PJM markets. The first 1.2 GW are expected to begin operations in 2029. 

NRG also said it plans to build three gas-fired plants totaling 1.5 GW in the Houston area. 

More: Houston Chronicle 

EDF Withdraws from Atlantic Shores Wind Project

French energy giant EDF announced it has withdrawn from its stake in the Atlantic Shores wind project off New Jersey. Its partner, Shell, also withdrew from the 200-turbine, 1,510-MW project in January. Following Shell’s decision, the New Jersey Board of Public Utilities decided not to proceed with a new solicitation that would have allowed Atlantic Shores to submit an updated bid. 

More: WorkBoat 

Air Products Drops Green Hydrogen Projects in 3 States

Air Products officials announced the company is canceling projects in New York, California and Texas. 

The company said the cancellation of the $500 million green hydrogen facility in New York was “based on recent regulatory developments rendering existing hydroelectric power supply ineligible for the Clean Hydrogen Production Tax Credit, as well as slower than expected development of a hydrogen mobility market in the region.” 

Air Products’ board of directors and CEO recently conducted a review of numerous projects, making the decision to cease operations to record a pre-tax charge not to exceed $3.1 billion in its fiscal 2025 second quarter. 

More: North County Now 

First Solar Q4 Sales Up

First Solar reported net sales for the fourth quarter were $1.5 billion, up $0.6 billion from the prior quarter. Meanwhile, net sales for the full year were $4.2 billion compared to $3.3 billion in the prior year. Looking ahead, sales are forecast to be about 32% higher than in 2024. 

More: pv magazine 

State Briefs

ARIZONA 

House Approves Bill to Require Utility Wildfire Prevention Plans

The House of Representatives approved a bill that would require utilities to prepare wildfire mitigation plans to prevent wildfires and decrease any damages that may occur. Those strategies include inspection procedures for wildfire risks, procedures for de-energizing power lines, community outreach and public awareness efforts, and new steps on how power companies will monitor compliance with their plans. The bill now heads to the Senate. 

More: Arizona Capitol Times 

COLORADO 

House Passes Bill to List Nuclear as ‘Clean Energy’

The House of Representatives passed a bill that would add nuclear power to the state’s list of “clean energy” resources. The state’s definition of “clean energy” determines which projects are eligible for clean energy financing at the county and city levels and determines which resources may be used by a utility to meet the state’s 2050 clean energy target. The bill now heads to the Senate. 

More: Colorado Politics 

DELAWARE 

NRG Closes State’s Last Coal Plant

NRG officially closed the coal-fired Indian River Power Plant on Feb. 23. Originally scheduled for decommission in 2022, the plant was kept operational while transmission upgrades were conducted to the grid until 2026. Now, the plant will close 22 months early. 

More: WBOC 

LOUISIANA 

Meta Announces Plans for $10B AI Data Center

Meta recently announced plans to build a $10 billion AI data center in Richland Parish. To power the massive data center, Entergy is investing $6 billion in infrastructure, including a 10,000-acre solar farm, three natural gas turbines and 100 miles of new transmission lines. The facility, which is projected to be the largest of more than 20 Meta data centers worldwide, is expected to be operational by 2030. 

More: WVUE 

NEVADA 

NV Energy Seeks 9% Rate Increase

NV Energy is seeking approval from the Public Utilities Commission for a $215 million rate increase in Southern Nevada. The increase would raise residential rates by 9%. The utility also asks to increase shareholder return on equity from 9.5% to 10.25% and save low-income residents about $20/month by eliminating the basic service charge. 

More: Nevada Current 

NEW MEXICO

House Passes Low-income Rates Bill

The House of Representatives passed legislation that would pave the way for low-income rates for investor-owned utility customers. The bill would let utilities submit applications to the Public Regulation Commission for low-income rates. The legislation does not create a low-income rate but instead allows utilities to craft a rate or develop a program that is brought to the PRC for approval. 

More: New Mexico Political Report 

SOUTH DAKOTA

Lawmakers Endorse Eminent Domain Hurdles, Enviro Studies for Carbon Pipelines

Lawmakers have advanced legislation that would make it more difficult for carbon dioxide pipeline companies to use eminent domain and would subject their projects to required environmental impact statements. 

A bill to ban eminent domain for carbon pipelines passed the House last month and is awaiting action in the Senate. Meanwhile, another bill approved by the Senate would retain eminent domain as an option but would require entities using it to first attend mediation with the affected landowner and to have a state permit before commencing eminent domain proceedings. 

Elsewhere, the House Commerce and Energy Committee voted 9-4 to send a bill to the House floor that would require an environmental impact statement for CO2 pipelines. The bill would require utility regulators to prepare or require the preparation of statements before approving a permit. 

More: South Dakota Searchlight 

PUC Approves Massive Wind Farm

The Public Utilities Commission has approved a 260-MW wind farm. The $621 million project will consist of 68 turbines on 46 square miles of privately owned land in Deuel County. More than 50 conditions were included in the permit, addressing cooperation with local agricultural operations, daily time limits on construction, protection of threatened or endangered species, noise levels and more. 

More: South Dakota Searchlight 

TEXAS 

Shell Sells Residential Portfolio to NRG Energy

Shell confirms it has sold its residential book of customers in the ERCOT market to NRG Energy. No other details of the transaction were released. 

More: Houston Chronicle 

VERMONT 

Lawmakers Signal Pause of Clean Heat Standard

Lawmakers indicated they likely will not continue to pursue development of a Clean Heat Standard. 

The discussions come a month after a report was released saying the standard would cost $1 billion over 10 years and raise heating fuel 58 cents/gallon to reduce carbon emissions in the thermal sector. 

Lawmakers also are discussing a change to the Global Warming Solutions Act, a law that created carbon emission reduction deadlines, if the Clean Heat Standard is abandoned. 

More: WPTZ 

VIRGINIA 

Lawmakers Approve Rate Relief for Appalachian Power Customers

The House and Senate approve a bill that would provide relief to Appalachian Power ratepayers. Appalachian would be prohibited from raising rates during the winter months, while there also would be moratoriums on late fees for residential customers. The bills must be signed by Gov. Glenn Youngkin. 

More: Roanoke Times 

SCC Approves Dominion LNG Storage Facility

The State Corporation Commission has approved Dominion Energy’s plans to construct a liquified natural gas storage facility. The 25 million gallon facility, capable of storing up to 2 billion cubic feet, would be for the utility’s 1,358-MW Brunswick and 1,588-MW Greensville power stations. Construction is expected to begin this year and be completed by the end of 2027. 

More: Inside Climate News