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September 11, 2024

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ISO-NE Responds to Feedback on Capacity Auction Reforms Scope

ISO-NE’s Capacity Auction Reforms (CAR) project will include an evaluation of additional resource accreditation modeling enhancements, the RTO told the NEPOOL Markets Committee on Sept. 10. 

The RTO is also planning to estimate seasonal tie benefits in its resource adequacy assessment model, it said. The remarks came in response to feedback it solicited on the “straw scope” of the project, which aims to transition the Forward Capacity Market to a prompt and seasonal market. (See ISO-NE Outlines ‘Straw Scope’ of Capacity Market Reforms.) 

Some stakeholders argued that ISO-NE’s resource accreditation modeling does not accurately reflect the region’s risk profile, including the duration of events. (See ISO-NE Capacity Accreditation Reforms Spur Energy Storage Concerns.) 

“As part of CAR, the ISO plans to assess whether it can make further enhancements to the modeling and accreditation proposal to better align accreditation values with contributions to resource adequacy,” said Chris Geissler, ISO-NE director of economic analysis. The RTO also plans to consider how it models intermittent and limited-energy resources, along with improvements to the load model, he said. 

Other stakeholders expressed concerns that the new accreditation methodology would not consider the marginal reliability impact (MRI) of tie benefits, potentially causing the RTO to overestimate the reliability benefits of interties. 

In comments submitted prior to the meeting, Calpine argued that “any supply source, including imports, used to meet capacity requirements should be counted similarly and subject to similar performance requirements” and that ISO-NE “should apply this standard to the CAR work.” 

Geissler said the RTO will work with its neighbors to evaluate seasonal tie benefits, which “represent the expected contribution from other regions during emergency conditions.” 

However, ISO-NE does not plan to calculate MRI values for tie benefits, or to subject tie benefits to Pay-for-Performance (PFP) rules, Geissler said. He noted that tie benefits will be modeled in resource adequacy assessments, which are used to determine the RTO’s installed capacity requirement. He added that “tie benefits are not directly competing” with capacity resources to meet this requirement. 

Geissler also told the MC that ISO-NE is not planning to include an evaluation of how the capacity market treats resource retentions. He added that, in a future phase of work, the RTO may consider broader changes to its rules for reliability-must-run contracts if it determines that retentions for energy security reasons are needed. 

The RTO also is not planning to model resource start times because of the constraints of GE MARS, its resource adequacy modeling software, despite interest from some stakeholder groups, Geissler said. 

“Assessing changes to the resource adequacy platform would be a significant, multiyear effort that would take resources away from other parts of the CAR effort and jeopardize the ISO’s ability to complete CAR in time for [capacity commitment period] 19,” Geissler said. 

In a memo published prior to the meeting, environmental advocacy groups pushed the RTO to model startup times, arguing that it is a necessary step to fairly compensate resources for their ability to support the power system on short notice. 

“Units with lengthy startup times simply do not offer the same resource adequacy value as more flexible ones,” the organizations wrote. “We understand that this will involve substantial resources, but given that ISO has already committed to spending several years on overhauling its capacity market reform, now is the best time to address this important consideration.” 

The groups also urged the RTO to model “correlated outages and ambient temperature adjustments” as part of the CAR project. 

Gas and diesel resources are “susceptible to both cold and hot temperature-dependent forced outages,” the organizations said while calling on ISO-NE to “model these reliability impacts as accurately as possible.” 

Geissler said ISO-NE is still considering whether to include temperature adjustments and correlated outages in the project scope, noting that the topic “raises technical modeling questions that must be more fully assessed before a decision can be made.” 

He added that ISO-NE is planning to model correlated outages of gas resources related to the region’s gas constraints in the winter. 

IMM Quarterly Markets Report

Wholesale market energy costs were down by 23% this spring relative to that of 2023 because of lower natural gas prices and capacity clearing costs, according to the ISO-NE Internal Market Monitor’s quarterly markets report. 

The real-time hub LMP averaged $24.64/MWh, ranging from 9 to 13% lower than in spring 2023. The average load (11,869 MW) was up by about 180 MW per hour in part from higher temperatures in May compared to the prior year. 

Nuclear generation rebounded after several down seasons because of lower rates and accounted for about 28% of the average output. Natural gas remained the largest generation source at 45% of the average output. Imports decreased because of a drought in Canada that affected hydro reservoir levels. 

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BLM OKs NV Energy’s Greenlink West Line

The U.S. Bureau of Land Management on Sept. 9 issued a record of decision approving NV Energy’s Greenlink West, a 470-mile transmission line that will connect Las Vegas with the northern part of Nevada and be capable of transmitting up to 4,000 MW of energy.

The project will consist of a 350-mile, 525-kV segment from Las Vegas to Yerington, along with two 345-kV lines running from Yerington into the Reno/Sparks area. Construction of the line is expected to begin in the first quarter of 2025 with an in-service date targeted for May 2027.

BLM also opened a comment period for a proposed draft resource management plan amendment and environmental impact statement for the Greenlink North project, a 210-mile east-west line designed to connect Greenlink West with NV Energy’s existing One Nevada Line running along the eastern part of the state.

NV Energy considers the Greenlink projects to be “vital” to tapping the state’s renewable resources and maintaining grid reliability in the face of growing load, an NV Energy executive said in the utility’s most recent integrated resource plan, filed with the Public Utilities Commission of Nevada in May.

But the IRP also revealed the rising costs for the projects, now estimated at $4.239 billion, a 70.6% increase from initial estimates made in 2020. NV Energy attributed $124 million of the increase to the BLM’s requirement that the utility use an additional 160 miles of H-frame structures to mitigate risk to desert tortoise and sage grouse habitat. Other environmental mitigations added $30 million to project costs. (See NV Energy IRP Describes $1.76B Cost Jump for Greenlink Projects.)

Given Nevada’s central position between the resource-rich interior West and more populous West Coast, the Greenlink project also likely will play a key role in transferring energy among various regions participating in CAISO’s Western Energy Imbalance Market (WEIM) and Extended Day-Ahead Market (EDAM). In May, NV Energy said it would choose to join EDAM over SPP’s Markets+, a major victory for CAISO in the competition between the two Western day-ahead markets. (See NV Energy Confirms Intent to Join CAISO’s EDAM.)

Massive Solar-plus-battery Project Approved

The BLM on Sept. 9 also approved Arevia Power’s $2.3-billion Libra Solar Project, which will be built across 5,778 acres of public land in Mineral County, Nevada. It will be one of the largest solar-plus-battery storage projects in the U.S., consisting of 700 MW of solar and 700 MW/2.8 GWh of energy storage capacity. NV Energy will be the off-taker for the project’s output.

“From building large scale transmission lines to solar power generating facilities, the Interior Department and our team at the Bureau of Land Management are leading the way in the development of reliable, clean energy across the West,” said Acting Deputy Secretary of the Interior Laura Daniel-Davis said during a Sept. 10 event in Las Vegas to announce the developments. “The infrastructure projects we are advancing today in Nevada are helping meet President Biden’s ambitious renewable energy goals while making communities more energy resilient and creating good-paying jobs in the clean energy economy.”

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NY OSW: If at First You Don’t Succeed, Try, Try Again

Two of the offshore wind developers that won and then lost contingent New York contracts are trying again, submitting proposals into the state’s latest solicitation. 

Community Offshore Wind and Excelsior Wind could be the fourth and fifth wind farms off the coast of New York, which is pursuing development of an offshore wind sector vigorously but with mixed results. 

Community and Excelsior announced their proposals Sept. 9, the final day to submit proposals without price tags in New York’s fifth competitive offshore wind solicitation (NY5). 

The New York State Energy Research and Development Authority (NYSERDA) would not say how many other proposals it received. It said redacted versions of the proposals would be made public in coming weeks.  

The process is not complete — developers must submit price tags for their proposals by Oct. 18 — but the door now is closed to additional proposals into NY5. 

NYSERDA expects to make contingent awards by Nov. 8, then execute the contracts and announce them to the public in the first quarter of 2025. 

Community is proposed by RWE and National Grid Ventures. Excelsior is proposed by Vineyard Offshore, an affiliate of Copenhagen Infrastructure Partners. 

In October 2023, Community and Excelsior were awarded contingent contracts in NY3, along with Attentive Energy One. All three contracts were predicated on an 18-MW turbine under development by General Electric.  

When the company — now GE Vernova — halted development of that machine, the contracts no longer penciled out. The NY3 solicitation was canceled, and the conditional contracts for 4 GW of capacity from the three projects were canceled in April 2024. (See NY Offshore Wind Plans Implode Again.) 

Excelsior announced Sept. 9 it had submitted a 1,350-MW project in NY5 — nearly the same nameplate capacity it had proposed in NY3. Community did not specify the nameplate capacity of the wind farm it is proposing for NY5. 

Headwinds

New York’s experiences are among the best examples of the growing pains of the U.S. offshore wind industry as it takes root off the Northeast coast. It has not had a project cancellation, like New Jersey has, but it has gone through multiple gyrations.  

New York has the first and so far only completed utility-scale offshore wind farm in U.S. waters, the 132-MW South Fork Wind. It also has Sunrise Wind and Empire Wind 1 under contract, and Sunrise is in early stages of construction. 

Along with the three contracts lost to supply chain problems in NY3, New York saw cancellations of contracts for Beacon Wind, Empire Wind 2 and earlier contracts for Empire 1 and Sunrise when soaring costs made those contracts untenable. The second contracts for Sunrise and Empire 1 carry much higher costs for ratepayers. 

Community is persistent if nothing else. 

It nearly won then lost the NY3 contract. It submitted a proposal into NY4 but was “waitlisted” and then not chosen. It submitted a proposal into NJ3, then withdrew it after concluding the pricing did not work. It submitted a proposal into NJ4 that is awaiting a decision by the state. 

(Community’s lease area is large enough and close enough that it could feed the grid in both New York and New Jersey.) 

The drive continues, and new headwinds arise even as previous problems are resolved. 

Atlantic Shores Offshore Wind this summer rebid into NJ4 a wind farm already under contract in New Jersey, presumably at higher cost. (See 3 OSW Proposals Submitted to NJ.) 

In recent weeks, Leading Light Wind has asked the New Jersey Board of Public Utilities for a delay because it is having trouble securing a supply contract for turbines. 

Earlier this month, the first-ever multistate solicitation was a decidedly mixed bag: Connecticut, Massachusetts and Rhode Island sought up to 6 GW of combined capacity and received 5.45 GW of proposals. But the projects selected totaled only 2.88 GW — 2.68 GW for Massachusetts, 0.2 GW for Rhode Island and 0.0 for Connecticut, which said it was still evaluating bids. (See Multistate Offshore Wind Solicitation Lands 2,878 MW for Mass., RI.) 

Vineyard Offshore proposed the 1.2-GW Vineyard Wind 2, up to 800 MW of which was selected by Massachusetts. The developer implied its ability to move forward with the project depended on Connecticut signing up for the rest.  

“We look forward to Connecticut’s forthcoming decision on the remainder of the procurement so that we can begin to deliver important economic and climate benefits to the region,” CEO Alicia Barton said in a news release. 

In the background to all this, a turbine blade disintegrated at Vineyard Wind 1 in July, littering beaches and waves with fragments and giving offshore wind opponents a camera-ready moment they are exploiting two months later. (See Blade Failure Brings Vineyard Wind 1 to Halt.) 

On a positive note, the first turbine recently was hoisted into position off the New England coast for Revolution Wind, which is expected one day to send up to 700 MW to Connecticut and Rhode Island.  

But Revolution, too, has had its setbacks. Brownfield contamination where its onshore substation will stand has pushed the anticipated completion date back from 2025 to 2026. (See Revolution, Sunrise OSW Projects Face New Delays.) 

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Potential Seen to Add up to 95 GW to US Nuclear Plants

The U.S. Department of Energy estimates that existing and recently retired nuclear power sites could host an additional 60 GW to 95 GW of new nuclear generation. 

DOE also said an additional 128 GW to 174 GW of new nuclear capacity could be built near existing or recently retired coal-fired facilities. 

In its 2023 report “Pathways to Commercial Liftoff: Advanced Nuclear,” the department estimated the U.S. would need 200 GW of additional nuclear capacity by 2050 to meet the growing demand for electricity and the growing emphasis on emissions-free generation. 

“A good chunk of that could come from a familiar place,” Michael Goff, acting assistant secretary for the U.S. Department of Energy’s Office of Nuclear Energy, wrote Sept. 9 in introducing the new report. 

“Evaluation of Nuclear Power Plant and Coal Power Plant Sites for New Nuclear Capacity” finds that 41 operating and retired nuclear sites could accommodate one or more new large light-water reactors rated at 1,117 MW for a total of 60 GW of new capacity. 

Using advanced reactors rated at 600 MW would bring the total to 95 GW, as more reactors could be built on more sites. 

For its analysis, DOE examined 54 operating and 11 recently retired nuclear power plant sites in 31 states.  

To determine suitability for expansion, it examined site footprint and acreage, aerial analyses, utility plans, a siting analysis tool developed by Oak Ridge National Laboratory, availability of cooling water, proximity to population centers or hazardous facilities, seismic risk and flood hazards. Researchers from Oak Ridge and Argonne National Laboratory contributed. 

Important tangible considerations such as politics and finances were not on the list of factors considered, though Goff acknowledged that capital costs will be a key factor in decisions about nuclear plant construction. 

He cited a study showing the majority of people who live near nuclear power plants consider them good neighbors. And there is hope that a concerted buildout of new nuclear plants will create economies of scale that limit the cost of new nuclear construction, which has seen exorbitant cost overruns. 

For coal-burning plants, which are being retired or scheduled for retirement at a steady rate, the study looked only at sites with a nameplate capacity of at least 600 MW that are active or were retired after 2019. It assumed retired plants had not been converted to natural gas and that their licenses to provide power to the grid were still in effect. 

Replacing coal with nuclear in a timely fashion could benefit the surrounding communities economically and environmentally and take advantage of existing workforces. A 2022 DOE report delved further into the opportunities and challenges that would surround such conversions. 

Goff stressed that this new analysis is preliminary. “Utilities and communities will need to work closely together to make the decisions on whether to build a new plant,” he wrote. 

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MISO, SPP Try Again to Find Joint Seam Projects

After five fruitless attempts to agree on joint transmission projects across their seams, MISO and SPP will use what they call a “blended joint model” in parallel with existing SPP and MISO regional models.

The RTOs’ staffers told stakeholders during a Sept. 9 Interregional Planning Stakeholder Advisory Committee meeting that their coordinated system plan (CSP) study, required every two years by a joint operating agreement, will identify near-term upgrades that “incrementally enhance” transfer capability and produce multiple benefits across the two grids. The study will include reliability, economic, and transfer analysis using forward-looking models and assumptions (10- and/or 20-year models), they said.

“The hope is that we have some mutually beneficial projects that we can both agree to recommend approval and ultimately share costs and construct,” SPP’s Clint Savoy said. “That’s the way the current process works today, or that’s the way it’s envisioned in the JOA.”

Five previous studies have failed to produce any joint projects over differences in allocating costs. That led the RTOs to try a different approach with the Joint Targeted Interconnection Queue project, which identified a $1.86 billion portfolio of five projects that could support up to 28 GW of interconnecting generation on both sides of the seam. The Department of Energy last year awarded the portfolio $464 million under its Grid Resilience and Innovation Partnerships program. (See DOE Announces $3.46B for Grid Resilience, Improvement Projects.)

Under the blended model, MISO will use its 2023 Long-Range Transmission Planning reliability and economic model sets and SPP will run the 2025 Integrated Transmission Planning’s same model sets. Staff will use three of four base seasonal models (winter peak, summer peak, average load and light load).

The RTOs both want a multi-benefit style project type and cost allocation to draw on a broader set of benefits for project recommendations, they said. Savoy said FERC Order 1920, which requires transmission-planning regions use at least a 20-year horizon, has provided something of a guidepost for the RTOs to follow.

“We hope this new approach will let us look into additional drivers for projects other than just economic or reliability benefits, if you will, maybe consider different assumptions as we are developing, the list of needs that we want to fix,” he said. “And so what we hope is a better outcome to look more proactively, maybe have a broader set of issues that we’re looking for or benefits to consider, rather than just the traditional economic reliability and public policy.”

The two staffs will continue to develop the study’s scope, incorporating stakeholder feedback, and share it with stakeholders when complete later this year. The 2024 CSP will run through 2025.

The RTOs will have to file a waiver request with FERC requesting permission to use the blended study process. They said they will partner with states and stakeholders to identify and file any needed changes to their JOA and tariffs.

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State Briefs

ARIZONA 

AG Challenges Power Plant’s Exemption from Review

Attorney General Kris Mayes and two environmental groups filed lawsuits challenging the Corporation Commission’s decision to exempt a 200-MW power plant expansion from environmental review. 

In June, the commission voted to overturn a ruling by the Power Plant and Line Siting Committee that required UniSource Energy to obtain a certificate of environmental compatibility for the expansion of its existing gas plant in Mohave County. The committee had voted 9-2 to deny UniSource’s attempt to exempt the Black Mountain expansion from review, citing a state law that requires utilities to obtain a certificate of environmental compatibility before building plants larger than 100 MW. However, the commission found that because the project will be made up of four individual 50-MW units, that law does not apply. 

The Sierra Club, Western Resource Advocates and Adam Stafford, an assistant attorney general who chairs the line siting committee, all asked the commission to reconsider the case. Those requests were ignored, prompting Mayes and the groups to challenge the ruling in Maricopa County Superior Court. 

More: KJZZ 

Tucson Electric Power Tx Line OK’d by Corporation Commission

The Corporation Commission last week unanimously approved a Tucson Electric Power high-voltage transmission line. 

While TEP hopes to complete the line by summer 2027, it will first have to get special exceptions from the city to build the project above ground. The company has 10 weeks to apply for the special exception. If it is not granted, the city and utility will have six months from the approval to find an alternative funding source for undergrounding portions of the line that does not increase rates for customers. 

More: Tucson.com 

CALIFORNIA 

Fire Breaks Out in Escondido SDG&E Battery Storage Facility

A fire broke out last week at a San Diego Gas and Electric-operated battery storage facility in Escondido. 

Upon arrival, fire crews noticed smoke coming from one of the battery storage trailers. Technicians confirmed a small fire was burning in one of the lithium-ion batteries. Experts said water cannot be put on the fire due to the involved chemicals. 

More: KUSI 

GEORGIA 

Georgia Power Plans Energy Storage at Plant Hammond Site

Georgia Power in late August announced it will build a 57.5-MW storage system at its decommissioned Plant Hammond site. 

The Tesla Megapack 2 Xl is part of the company’s plan to add 500 MW of capacity statewide. 

The Public Service Commission has approved the battery-storage component of the plan but must certify the four BESS projects. 

More: Rome News-Tribune 

Houston County Rejects Solar Farm

The Houston County Board of Commissioners last week voted unanimously to disapprove a rezoning request for a $300 million solar project. 

Silicon Ranch, the project developer, had asked the county to grant an exception so it could install solar panels on parts of 4,600 acres zoned for agriculture. 

The SR Robins project would have been one of the largest solar installations in the state. 

More: The Atlanta-Journal Constitution 

PSC Approves Georgia Power Rate Rollback

The Public Service Commission last week approved Georgia Power’s request to reduce customer rates by $122 million to reflect the utility’s savings from corporate tax cuts the General Assembly enacted this year. 

The PSC required the utility in its 2022 rate case to pass any savings from future tax cuts to customers. 

The reduction, which will save the average residential customer $2.25 a month, will take effect Jan. 1. 

More: Capitol Beat 

INDIANA 

AES Submits Request for Dubois County Solar Project

AES Indiana in late August submitted a request to the Utility Regulatory Commission to buy a new solar project being built in Dubois County. 

The solar field, which is expected to be completed in 2027, will provide 85 MW. There will also be a storage component. 

AES is seeking to construct and acquire the project though a Certificate of Public Convenience and Necessity. 

More: Inside Indiana Business 

MARYLAND 

Investigation: Reports of Gas Odor Night Before Bel Air Home Explosion

The National Safety and Transportation Board last week released a preliminary report that found reports of gas odors were made the night before a deadly Aug. 11 home explosion in Bel Air. 

The report noted that gas and electrical lines were in proximity in a common trench, similar to what led state regulators to penalize Baltimore Gas and Electric more than $437,000 for safety violations that caused a 2019 explosion in Columbia. The report on the Bel Air explosion said BGE investigators recovered damaged electrical lines and a gas service line with a hole on the bottom and detected underground gas around the destroyed home. 

The report also stated that the night before the explosion, the home experienced an electrical outage. The outage prompted a BGE technician to respond to the scene, with two reports of the smell of gas later being made. 

More: Capital Gazette 

MISSISSIPPI 

Entergy to Build First Natural Gas Plant in 50 Years

Entergy Mississippi last week announced it will build a new natural gas power station in Greenville. 

The company said it plans to retire the Gerald Andrus Steam Electric Station and replace it with a natural gas plant. It would be the first such plant the company has built in 50 years. 

The plant is expected to be operational in 2028. 

More: Magnolia Tribune 

NEW JERSEY

Leading Light Wind Asks BPU for Pause on OSW Construction

Leading Light Wind (LLW) has asked the Board of Public Utilities for a pause through late December on its plan to build an offshore wind farm off Long Beach Island. 

In a filing with the board made in July, the company said it has had difficulty securing a manufacturer for turbine blades and is currently without a supplier. LLW asked for a pause through Dec. 20 while a new source is sought. 

The project would be built 40 miles off Long Beach Island and would consist of up to 100 turbines. 

More: WHYY 

VIRGINIA 

Hydro-Quebec’s EVLO to Install 300 MW of Batteries

Canadian battery energy storage systems (BESS) provider EVLO Energy Storage, a subsidiary of Hydro-Quebec, last week said it will deploy more than 300 MW in BESS projects in the state. 

Plans include three EVLOFLEX systems, scheduled for commissioning in 2025 and 2026. ​​​The first project will be 5-MW and will be part of a facility microgrid powered by solar and battery storage. The second project will be a 75-MWh standalone storage system, while the third project will install 225 MW at a solar project located at a transportation hub. 

More: Renewables Now 

Youngkin Appoints 2 to Environmental Justice Council

Gov. Glenn Youngkin recently appointed Hope Cupit and Eureka Tyree to the state’s Council on Environmental Justice. 

Cupit is a former Air Pollution Control Board member, while Tyree is the vice chair of the Cumberland County Board of Supervisors.

Aimed at raising awareness of minority, low-income, tribal and other communities, the council was created by former Gov. Terry McAuliffe. 

More: Virginia Mercury 

WYOMING 

Supreme Court Sides with Small-scale Solar Users

The Wyoming Supreme Court on Aug. 30 affirmed a state law that incentivizes net-metering. 

The court said the Public Service Commission erred when it approved a request by High Plains Power to shift from an annual to a monthly compensation scheme with customers who intermittently contribute their excess solar-generated electricity back to the utility. The court rejected High Plains Power’s plan to compensate solar users for their excess power at a monthly wholesale rate rather than the higher retail rate. 

The PSC must now reconsider the monthly tariff it approved for High Plains and potentially two other co-ops that were not part of the lawsuit. 

More: WyoFile 

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Federal Briefs

Groups, Residents File Petitions Against LNG Terminal

Environmental groups and residents last week filed two petitions asking the U.S. Court of Appeals for the D.C. Circuit to reject the June decision by FERC approving the proposed $10 billion Calcasieu Pass 2 terminal in Louisiana. 

Since FERC approved the project, the court in separate cases has remanded or vacated the commission’s approval of the Rio Grande, Texas and Commonwealth LNG facilities. In rejecting the terminals, the court cited inadequate review of their impacts on environmental justice, greenhouse gas emissions, air pollution and other factors. 

More: Floodlight 

US Solar Industry Installs 9.4 GW of New Capacity in Q2

The U.S. solar industry installed 9.4 GW of new generation capacity in the second quarter of this year, according to a report released by the Solar Energy Industries Association and Wood Mackenzie. 

Texas leads the nation with 5.5 GW of capacity installed in the first half of 2024. 

By 2029, the nation’s total solar capacity is expected to double to 440 GW. 

More: Solar Power World 

BOEM Finalizes Gulf of Maine Environmental Review

The Bureau of Ocean Energy Management last week released its final Environmental Assessment of the Wind Energy Area located in the Gulf of Maine. 

BOEM found that leasing and site assessment and characterization activities will not have a significant impact on the environment.   

In April, the Department of the Interior announced a proposed offshore wind energy lease sale in the Gulf of Maine, which would include eight potential leasing areas. The areas total nearly one million acres and have the potential to generate 15 GW.  

More: North American Windpower 

Trump Vows to Pull Back IRA’s Unspent Dollars

Donald Trump last week said he would rescind any “unspent” funds under the Inflation Reduction Act should he be elected president in November. 

Trump did not specify which IRA programs he would target. 

Analysis from April found that of the $145 billion in direct spending on energy and climate programs in the IRA, the Biden administration had announced roughly $60 billion in tentative funding decisions. 

More: POLITICO 

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Company Briefs

Navisun, Ampion Partner on Community Solar in 4 States

Ampion, a community solar subscription management company, and Navisun, an independent power producer, last week announced they have entered a partnership to construct solar projects in the Northeast and Midwest. 

The plan is for Navisun to design, construct, own and operate five community solar projects in Maine, Massachusetts, New Jersey and Illinois, while Ampion handles subscriber acquisition, billing, customer care and long-term subscription management. 

The projects are expected to produce more than 21 MW. 

More: pv magazine 

Samsung SDI Unveils New Battery Solutions at Energy Expo

Samsung SDI this week showcased its latest energy storage system battery solutions at Renewable Energy Plus 2024, a North America renewable energy exhibition. 

The battery maker introduced its Samsung Battery Box 1.5, a containerized system featuring improved density and an enhanced fire suppression system. Samsung also presented a high-output battery for uninterruptible supply systems, set for mass production next year. 

More: AJP 

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Webinar Examines How FERC Could Use Interregional Transmission Study

Congress and FERC will need to act to update the rules on interregional transmission planning, and likely permitting, if NERC’s Interregional Transfer Capability Study is going to be of any use, experts said on a webinar hosted by Americans for a Clean Energy Grid.

The study is only the second thing Congress has ever requested from NERC, after it called for the creation of the Electric Reliability Organization in the Energy Policy Act of 2005, said John Moura, director of reliability assessment and system analysis. NERC recently released its initial results, but the final report is not due to FERC until Dec. 2. (See NERC Examines Transfer Capability in Draft ITCS Installment.)

“The ITCS is really an unprecedented study, both in scale and magnitude of what we have to look at,” Moura said. “It’s a U.S.- and Canada-wide technical assessment that looks at the power transfers between regions, and then also makes recommendations to increase those transfers based on reliability needs.”

Once FERC gets the report in December, it will open it up for comments, which will put it before a much larger group of stakeholders, Moura said. Though Congress directed the study, Canadian representatives wanted their own version, which will be published in the first quarter of 2025, he added.

NERC found greater needs for transfer capabilities in some regions compared to others, with Moura presenting a color-coded slide with green, yellow and red for increasing regional needs. While the red and orange areas would benefit from more transfer capacity, Moura noted that the green and gray regions still require work to maintain reliability.

The study assigned “prudent” transfer capability between regions, which means how much is required to meet load under extreme conditions, Moura said.

In doing the study, NERC had to use the same metrics for different regions, which is not how it operates in its own regional planning efforts, so it could accurately assess transfer capabilities. One key finding of the studies is that increasing interregional transfer capability is not enough to ensure reliability.

“I think the results are pretty clear: Adding transfer capability to a minimum level is not sufficient in resolving reliability issues for some areas,” Moura said. “And for other areas, adding transfer capability where it’s not needed would not appear to be economically prudent, without much benefit to reliability. Also, transmission is only one option and only one solution.”

Transfer capability can help with reliability issues in some regions, but so can adding new generation — especially types that are not subject to the same common mode failures plaguing generator availability, Moura said. Higher transfer capabilities will require significant planning and systemwide reinforcements, he added.

Nicole Luckey, Invenergy senior vice president of regulatory affairs, said the current rules are not working.

“There are no holistic interregional transmission planning or cost allocation processes in place today, aside from what was laid out in Order 1000, which I think we all can acknowledge isn’t necessarily working now,” Luckey said. “We’re all really looking forward to the folks in the transmission development community seeing what FERC does with NERC’s study.”

One question is whether the commission will stick to purely reliability benefits or consider others in that effort, she added.

American Electric Power owns utilities in four different ISOs and RTOs, and many of its territories are located along market seams, so it has had a front-row seat to view how Order 1000’s interregional process has failed, said Stacey Burbure, vice president for FERC and RTO strategy. A key reason is that different regions consider transmission with different metrics.

“When you’re comparing apples and oranges, it’s not always intuitive what the right solution is, which is why coordination simply hasn’t gotten us there,” Burbure said. “The RTOs are on different timelines. They’re looking at different inputs. So, moving towards a more standardized approach, with respect to that engineering information, is going to be critical in order to get the right transmission built.”

FERC should take steps with interregional transmission like it did in Order 1920 with regional planning, so the different regions are examining interregional lines on the same basis, she added.

Brattle Group Manager Joe DeLosa agreed that FERC would need to get more common metrics in place to make interregional planning successful, but he also noted that planners currently use models of the system in normal conditions.

The National Renewable Energy Laboratory “has recently said that about half of the benefits of interregional transmission come from the most stressed 5% of system hours,” DeLosa said. “And so, if your interregional coordination/planning, especially for economics, doesn’t take a look at those hours, you’re going to be overlooking large portion of potential interregional benefits, and you’re not ultimately going to develop the appropriate projects.”

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PJM Asks FERC to Eliminate Energy Efficiency from Capacity Market

PJM has filed governing document revisions that would remove energy efficiency from its Reliability Pricing Model (RPM), in line with stakeholder endorsement of an Independent Market Monitor proposal to eliminate EE from the capacity construct (ER24-2995).

The Monitor has argued EE can’t participate as a capacity resource because the load reductions already are accounted for in PJM’s load forecast, and that capacity market revenues to program providers constitute an uplift payment with no corresponding reliability benefit.

Ahead of the Aug. 21 vote, EE providers argued the load forecast does not account for EE installations made possible by RPM revenues and that hastily moving to a vote to bar an entire resource class would curb consumers’ ability to mitigate rising capacity costs. (See PJM Stakeholders Endorse Elimination of EE Participation in Capacity Market.)

The tariff and Reliability Assurance Agreement (RAA) revisions would come with a Nov. 6 effective date, which would preclude EE participation in the 2026/27 Base Residual Auction (BRA) set to begin Dec. 4.

“After years of experience, coupled with a careful review of what energy efficiency sellers have been including in their offers, it has become obvious to PJM, and a sector-weighted super majority of the PJM members, that the current paradigm is no longer appropriate,” PJM wrote in the Sept. 6 filing. “Under the current framework, energy efficiency projects are compensated at the relevant RPM auction clearing price on the supply side even though energy efficiency capability has already been incorporated into the load forecast in aggregate and reduced the amount of capacity that needs to be procured in the RPM auction.”

To avoid double counting the benefits of an EE installation — through both reduced capacity procurement and BRA revenues to the EE provider — PJM instituted the addback process in 2016, which removes EE that clears a capacity auction from the supply stack and increases the load forecast by a corresponding amount. Consumer advocates argued that undermines the ability for EE to displace capacity resources and drive clearing prices lower, while the Monitor argued it is an unnecessary uplift mechanism.

A proposal offered by the New Jersey Division of the Rate Counsel on Aug. 21 would have eliminated the addback with the aim of allowing EE to clear in capacity auctions akin to generation and demand response resources, while the main motion previously endorsed by the Market Implementation Committee would have tightened the measurement and verification (M&V) requirements and mandated a sole causal link between capacity market revenues and EE installations. Both were rejected before the Monitor proposal was endorsed.

In its filing, PJM wrote that state-mandated EE programs will continue to deliver benefits to consumers in the form of reduced capacity costs even in the absence of RPM revenues. Exelon sought amendments to the MRC proposals to add governing document language differentiating utility EE programs from third-party providers driven purely by PJM revenues.

“Energy efficiency projects will continue to receive economic benefits via reduced wholesale costs and the natural incentive of lower energy costs,” the filing said. “There is simply no reason the same energy efficiency should be simultaneously compensated for capacity revenues based on the same underlying project that also receives a reduction in demand costs.”

Petition Urges Technical Conference on EE

A group of EE trade groups and advocates jointly filed a petition with FERC urging it to open a technical conference on RTO rules around EE. Filing as the Alliance to Save Energy, the petition is signed by the American Council for an Energy-Efficient Economy, California Efficiency and Demand Management Council, Energy Efficiency Alliance of New Jersey, Institute for Market Transformation, Keystone Energy Efficiency Alliance, Metrus Energy, Midwest Energy Efficiency Alliance, National Association of Energy Service Companies and National Association of State Energy Officials.

The Aug. 29 petition states EE can effectively rise to the challenges posed by rising demand, the clean energy transition, transmission upgrades and backlogged interconnection queues in a manner that resources requiring long interconnection and construction lead times cannot (AD24-12).

“Energy efficiency offers significant advantages, including reducing the need for new generation and the costly transmission upgrades that come with it,” the coalition wrote. “By lowering demand, it can also free up existing transmission capacity, enabling a more expedited interconnection of additional resources. Moreover, unlike other resources, energy efficiency can be implemented without depending on the interconnection queue, resulting in substantial time and cost savings.”

The rule changes proposed by PJM and several complaints filed by the Monitor and market participants go beyond one RTO to implicate EE across the nation, the coalition wrote. Acting without cross-RTO guidance from FERC since it accepted PJM’s market design for EE in 2009 (ER05-1410), individual RTOs and their stakeholders have created a patchwork of market designs, the petition states.

“It is imperative that any changes to market rules affecting the participation and eligibility of EERs, which could jeopardize their role in these markets, stem from a thoughtful, holistic process led by the commission — not by one-off actions from individual RTOs,” the petition says.

Four panels are envisioned as part of the technical conference, including:

    • Energy Efficiency in Wholesale Markets Today, focusing on current market structures and models for EE participation.
    • Reconciliation with Load Forecast, looking at how EE interacts with RTO load forecasts and whether market eligibility should be tied to inclusion in forecasts.
    • Eligibility, Measurement, Verification and Standards, considering whether a causality principal should be an element of participation, as well as how capacity contributions can be quantified.
    • Value Proposition of Energy Efficiency, focusing on EE compensation and its effectiveness as a supply resource.

American Efficient Pushes Back on Allegations of Tariff Violations

American Efficient is defending itself from accusations the company violated the PJM and MISO tariffs in the design of its mid- and upstream energy efficiency (EE) programs, which provide rebates to manufacturers, distributors and retailers for offering qualifying products (EL24-113).

The Independent Market Monitor has accused several EE market participants of not meeting the RPM participation requirements and has requested FERC prohibit future participation and require revenues be returned. The commission’s Office of Enforcement (OE) also has opened an investigation into American Efficient specifically. (See Monitor Alleges EE Resources Ineligible to Participate in PJM Capacity Market.)

In its response to a 1b.19 notice from the OE — which notifies parties to an investigation that the office intends to recommend an administrative proceeding or civil action — American Efficient wrote that neither the Monitor’s complaint nor the OE investigation had substantiated claims of fraud. While the open investigation is confidential, FERC publicly posted American Efficient’s response to the 1b.19 notice, an executive summary of the response, a primer with background about the company and its request for a technical conference, and materials PJM submitted about the stakeholder process.

In the primer, American Efficient wrote that allegations that the company had engaged in fraud are unsubstantiated and the details of its program were reviewed and approved of by RTO staff.

“While the Market Monitors in PJM and MISO have strong policy preferences that EERs be removed from the markets, they are not arguing (nor could they, based on the record) that American Efficient misrepresented its program when seeking approval,” the company wrote. “Instead, the allegations go directly to the fundamental features of American Efficient’s EER program. There is no support for the allegation in the Preliminary Findings that American Efficient had a scheme with an intent to defraud the markets when the features were transparently presented to the RTOs, scrutinized by RTO staff, and subsequently approved.

“Put simply, an enforcement action based upon fundamental features of American Efficient’s EER program that MISO and PJM knew and approved of would be inequitable.”

In the executive summary, the company argued that PJM’s statements in the stakeholder process that the tariff does not require a link between capacity market revenues and EE programs run against the OE’s allegations. American Efficient said its PJM subsidiary Affirmed Energy followed the tariff as written and the OE is seeking to hold it to prospective rule changes.

“The plain text of the tariffs alone demonstrates that OE is wrong — EER providers are not required to pay end users, contract with end users, or prove that end users bought energy efficient products solely because of the provider’s program,” the company wrote. “Now that PJM has publicly stated its views about the tariff, affirming American Efficient’s position and rejecting OE’s position, that should conclusively settle the matter — OE has been wrong all along.”

The materials PJM provided to the OE state the tariff interpretation the RTO offered throughout the stakeholder process is in contradiction with the OE’s allegations.

“Through this process, PJM has clearly communicated in both verbal comments and public documents its view of the current rules — a view that is in direct contradiction to the Office of Enforcement’s assertions about the requirements of PJM’s tariff,” the RTO wrote.

In its filing to eliminate EE, PJM again stated there is no requirement that there be a causal link between capacity market revenues under the status quo rules and EE programs and that it is seeking only to bar EE participation for future auctions.

“PJM seeks to apply the proposed market rule change on a prospective basis and is not proposing to unsettle RPM auction results or undo any existing energy efficiency resource commitment under the current tariff and RAA rules,” PJM wrote. “The filed rate doctrine precludes retroactive changes for past actions where legal consequences have attached. As a result, energy efficiency resources that cleared the RPM Auctions for the 2025/2026 delivery year will need to follow through on their commitments and submit compliant post-installation measurement and verification plans in advance of that delivery year to substantiate their cleared quantities.”

In its 1b.19 response, American Efficient also wrote that the OE is singling out the company for a “market-wide policy matter” that should be resolved by rule changes rather than enforcement actions. The company repeated recommendations that FERC hold a technical conference to discuss how EE participates in capacity markets, focusing on whether they should be a supply-side resource, how capacity contributions can be measured and verified, and the rules around ownership of capacity rights to EE savings.

In addition to the allegations made regarding its participation in PJM’s capacity market, American Efficient wrote that MISO had found deficiencies in the capacity offered by its subsidiary Midcontinent Energy following an audit in 2021. While the company disputed the filing, Midcontinent opted to not seek to offer capacity in MISO’s market once the OE had supplied notice of its investigation.

A second complaint seeks the elimination of EE from the RPM and argues that the addback violates PJM’s tariff — a position also taken in a complaint the New Jersey, Maryland and Illinois consumer advocates filed. A complaint submitted by CPower alleges PJM overstepped in issuing guidance ahead of the 2025/26 BRA that tightened the auction participation requirements, substantially curtailing EE participation.