State Briefs
REGIONAL
This week's state briefs include news on Arkansas, Connecticut, Indiana, Michigan, Minnesota, Missouri, Montana, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island and Texas.

CO2 Emissions Report Released

RGGISourceRGGIThe nine states participating in the Regional Greenhouse Gas Initiative released the “CO2 Emissions from Electricity Generation and Imports in the Regional Greenhouse Gas Initiative: 2013 Monitoring Report.” This report is the fifth in a series of annual monitoring reports called for in the 2005 RGGI Memorandum of Understanding. The report summarizes data for electricity generation, electricity imports and related carbon dioxide emissions for the RGGI states.

More: RGGI

Mild Summer Cuts Wholesale Power Costs

New Englanders are using less on electricity because of the mild summer. An abundance of natural gas and more efficient power plants have also helped reduce the wholesale price of energy, a respite from soaring heating costs in the winter, ISO-NE said.

The average wholesale price in June was 1.96 cents/kWh, down nearly 50% since June 2014. The decline continued in July, dropping by more than 27% year over year, the RTO said. Costs are falling for some ratepayers, but it’s uneven among New England states. The U.S. Energy Department said retail prices in New England were higher in June and July than in the same months last year.

The price for customers of Central Maine Power dropped by more than 13% in March 1. In Massachusetts, a reduction of more than 20% kicked in May 1.

More: Hartford Courant

Consumption Breaks Record in MISO South but Lights Stay on

epaThe four states in MISO’s southern region set an all-time record for power usage of 32,618 MW on July 29, but the RTO didn’t have to declare emergency operations. MISO issued several hot weather notifications, which apparently worked. “Not only was this a big success for MISO and our members, but it was the first time our South Region Operations Center was truly tested,” said Katherine Prewitt, senior director of MISO’s South Region Operations, in Little Rock. The region consists of all or parts of Arkansas, Louisiana, Mississippi and Texas.

The previous peak for the region was 31,789 MW on Aug. 3, 2011.

More: MISO

ARKANSAS

Solar Prospects in State Shining Bright

Three solar projects could soon be online in the state, and additional installations could follow, induced by environmental regulations reducing carbon emissions and a 30% federal tax credit that will be reduced by 2017.

Arkansas Electric Cooperative Corp. announced plans for a 12-MW solar generation facility in February. Entergy in April announced an 81-MW facility. More recently, Ozarks Electric Cooperative said it would build a small facility in the northwest part of the state.

Any utility seeking to recoup costs from a state solar project through rate increases must obtain regulatory approval from the Public Service Commission. A decision is expected in Entergy’s case by the end of September.

More: Arkansas Business

CONNECTICUT

Leaders Urge English Station Site Cleanup

EnglishStationSourceWikiState Senate President Martin M. Looney and New Haven officials are urging prospective merger partners UIL Holdings and Spanish energy giant Iberdrola to commit to paying the cost of cleaning up the mothballed English Station power plant.

The two merger partners are in negotiations with Attorney General George Jepsen and the Department of Energy and Environmental Protection to play a significant role in the cleanup of the 9-acre power plant site. A regulatory filing by the two companies said both would be involved in the cleanup, the cost of which has been estimated at $30 million. (See Iberdrola Refiles Acquisition Bid for UIL Holdings.)

Two out-of-state entities, Asnat Realty and Evergreen Power, bought the plant from UIL, but they failed to follow through on promises to clean it up.

More: New Haven Register

INDIANA

Judge Denies Watchdog’s Request for Legislative Correspondence

Osborn
Osborn

Marion County Superior Court Judge James Osborn turned down a request by Indianapolis-based Citizens Action Coalition to force a legislator to reveal his correspondence with utility executives, ruling that the separation of powers doctrine forbids the courts from getting involved in legislative affairs.

CAC filed suit after state House leaders denied its public records request for emails between House Energy Chairman Eric Koch (R-Bedford) and Duke Energy and Indianapolis Power & Light. The group sought correspondence that concerned a net metering bill that would have changed the way customers with solar panels are billed. That bill eventually was killed.

More: Network Indiana

MICHIGAN

PSC Appointment Heads to Senate

Saari
Saari

A Senate committee last week questioned former Consumers Energy executive Norm Saari whom Gov. Rick Snyder nominated to serve a six-year term on the Public Service Commission.

Saari appeared Aug. 13 before the Senate Energy and Technology Committee, where some members said that while they respect him, they were wary of his appointment by Snyder. Saari tried to assure them that while he worked nearly 30 years for Consumers Energy, he had no financial interest in Consumers or any other utility in the state.

Most recently Saari, a Republican, was chief of staff for the state House of Representatives. If affirmed, Saari would replace Commissioner Greg White, who is retiring.

More: Detroit Free Press

MINNESOTA

Couple’s Complaint of Connection Fee Spurs Commission-Ordered Review

A letter written by a Stewartville couple to the Public Utilities Commission complaining of a $5 monthly fee they had to pay for their small wind generator has spurred the commission to order a review of the state’s electric utilities to see if they charge similar fees.

Alan and Kris Miller installed a small wind generator to power their hobby farm and were surprised when People’s Energy Cooperative charged them the monthly fee. People’s has since offered to refund Miller and about 30 other customers who faced similar monthly charges for wind or solar facilities.

After a five-month investigation, the commission last week declared the fee illegal and ordered a state-wide review of so-called net metering charges. Renewable advocates say such fees, which so far are unregulated, sap the incentive of those considering installing solar or wind generation for their homes or small businesses.

“They have no idea what the fee is going to be,” said David Shaffer, general counsel for the Minnesota Solar Energy Industries Association. “Maybe it is going to be $5 and maybe it is going to be $85 — until they know, they can’t make an informed purchasing decision so they choose not to buy.”

More: Star Tribune

MISSOURI

Gov. Nixon Appoints Former Aide to Chair State’s PSC

MissouriPSCSourceGovGov. Jay Nixon has appointed former aide Daniel Hall to chair the Public Service Commission. Hall has served on the five-member PSC since 2010; he replaces Robert Kenney, whose six-year term expired Aug. 7.

Hall served under Gov. Bob Holden and House Speaker Steve Gaw before becoming a legislative aide to Nixon when he was attorney general. Kenney will join San Francisco-based Pacific Gas and Electric as its vice president for regulatory relations.

More: Columbia Daily Tribune

MONTANA

Witnesses Testify Against Federal Coal Royalty Payments

An overflow crowd packed a U.S. Interior Department meeting in Billings to discuss its policy of allowing private coal mining on government land. It was one of five sessions scheduled by Interior Secretary Sally Jewell, who has pledged a review of the government’s coal leasing program.

Most of the comments concerned the 12.5% royalties that the government collects on coal. “It’s time that you crack down on coal companies that have been getting sweetheart deals for too long,” said Renette Kaline, a Northern Cheyenne tribe member.

But some who depend on the mining said they were afraid that additional regulatory burdens could put their livelihoods at risk. “I’m scared,” said Ryan White, a miner. “I’m fearful of my future. I go to work every day wondering when the federal government will put my employer out of business.”

More: Missoulian

Wind Farm Faces Regulatory Headwinds

GreycliffWindSourceGreycliffThe Greycliff Wind Energy project, a 12-turbine project in central Montana that was proposed five years ago, continues to battle regulatory headwinds.

The project’s developers, Minnesota-based National Renewable Solutions, must persuade the Public Service Commission that the company has enough Montana owners to qualify as a Community Renewable Energy Project. The PSC rejected Greycliff Wind in June because it wasn’t convinced that local owners had a 50% stake in the company’s income, equity and voting rights.

National Renewable Solutions representatives spent last week in Sweet Grass County assuring the county commissioners “the project isn’t going away,” said the company’s Pat Pelstring.

More: Billings Gazette

NEW HAMPSHIRE

Eversource Willing to Bury More of Line

eversourceSenior executives for Eversource Energy say the power company is willing to bury more of the transmission lines for the Northern Pass hydroelectric project, but not the entire 187-mile route from the Canadian border through northern New Hampshire to Deerfield.

“Full undergrounding is unnecessary and prohibitively expensive,” Lee Olivier, Eversource executive vice president, said in a conference call with financial analysts on July 31. “But some project modifications could be done with some additional undergrounding.”

The company is reviewing the environmental impact statement with an eye toward burying more of the line, he said. The most likely area for additional burial would be through 10 miles in the White Mountain National Forest, where the environmental report suggests overhead lines would not be allowed.

More: New Hampshire Union Leader

Renewable Energy Fund Restored

The state has reopened the Renewable Energy Fund, although with new restrictions and less money than was initially anticipated.

The freeze on REF applications, imposed on July 20, continues on applications for solar projects in the 100- to 500-kW range. Those projects have mostly been popular with businesses, according to Kate Epsen, executive director of the New Hampshire Sustainable Energy Association, a trade organization representing the renewable energy industry.

“It’s a really good category and a real shame that it’s being cut out, hopefully not forever, but even temporarily is a problem,” she said. “This was hitting an important market gap for these mid-sized projects. A lot of companies have been putting together good proposals, and there has been some good groundwork and business interest. Now that’s been taken away, or at least temporarily halted.”

More: New Hampshire Union Leader

NEW JERSEY

Gov. Christie Signs Bill Boosting Net Metering Cap for Solar

Christie
Christie

Gov. Chris Christie has signed a bill that increases the cap under which utilities can stop paying owners of distributed solar for electricity their systems generate. The previous cap allowed utilities to stop paying when net metering systems recorded 2.5% of the state’s peak demand.

That level has already been reached. The new bill, sponsored by Sen. Bob Smith (D-Middlesex), boosted the cap to 2.9%. It is estimated that it will take another three years for that level to be reached. The new limit is designed to ensure economic incentive for the home solar industry in the state. The new level leaves room for another 700 MW of solar to be installed in the state.

“This is an important bill that moves solar forward in New Jersey,” Jeff Tittel, director of the New Jersey Sierra Club, said. “This is a ray of sunshine for the solar industry and will create clean energy and more green jobs.”

More: NJSpotlight

NEW YORK

Coalition Opposes Utility Ownership of Large Renewables

Power plant owners and energy groups have joined forces to oppose utilities directly owning large-scale renewable energy projects such as wind farms. The Independent Power Producers of New York, Alliance for a Clean Energy New York, the Electric Power Supply Association and the New York Affordable Reliable Electricity Alliance said the concept would raise wholesale electric rates.

“New York cannot afford to overlook the benefits and tremendous successes of competitive wholesale energy markets by allowing utilities to once again put ratepayers directly on the hook for costly electricity investments — especially when the private sector has been successfully developing and operating large-scale renewable electric generation facilities for more than a decade,” Gavin Donohue, CEO of IPPNY, said in a statement.

The New York State Energy Research Development Authority countered that its ideas for utility ownership are just one of many options it listed in a June study to give the state new ideas on how to promote large-scale renewable energy projects.

More: Times Union

OHIO

Power Siting Board Moves Ahead on Clean Energy Future Plant

An administrative judge has ruled that a plan to build an 800-MW gas-fired power plant can go ahead to the Power Siting Board for the next step in the approval process. The judge noted that board staff have already determined the plant, proposed by Clean Energy Future, complies with applicable state law. CEF plans to spend $800 million on the plant, which would be built in an industrial park near Lordstown.

The next hearing of the board, which is overseen by the Public Utilities Commission, will be in September. If approved, the plant would begin operations in 2018.

More: Vindy.com

OKLAHOMA

OG&E Rate Case Could Lead to 15-19% Price Hike

OklahomaGasSourceOGEOklahoma Gas and Electric is pressing ahead with upgrades to its generating plants and preparing for a general rate case as it awaits a decision from state regulators in a $1.1 billion environmental compliance and replacement generation case. If approved, the OG&E request would increase customer bills by 15 to 19% by 2019, with the increases phased in each year as a separate line item on customer bills.

The Corporation Commission has not come to an agreement for a final order in the case. However, two commissioners indicated they would prefer to issue a final order within the next 30 days.

OG&E said it expects to spend about $700 million on an environmental plan to meet federal emissions regulations for regional haze and mercury and air toxics standards. It also estimates it will need about $410 million to modernize its aging Mustang natural gas plant in western Oklahoma City.

More: The Oklahoman

OCC’s Murphy Named to EPRI Advisory Council

OklahomaCorpCommissionSourceGovCorporation Commissioner Dana Murphy has been appointed to the Electric Power Research Institute’s Advisory Council to the Board of Directors. Murphy chairs SPP’s Regional State Committee.

The Advisory Council advises EPRI management and its board and assists in prioritizing relevant and balanced research to serve the public interest. The appointment was made by Lisa Edgar, president of the National Association of Regulatory Utility Commissioners, who said Murphy’s active service on the EPRI Advisory Council is “important to the cause of strengthening effective public regulation.”

More: Oklahoma Corporation Commission

PENNSYLVANIA

PennFuture Names New Operating, Communications Officers

PennFutureSourcePennFutureThe environmental advocacy organization PennFuture has named a new chief operating officer and a new director of communications. The statewide organization said Jacquelyn Bonomo, who has experience with other environmental organizations, will become chief operating officer and vice president. She comes to PennFuture from Chesapeake Bay Funders Network, where she was executive director. She also has held upper positions in the National Audubon Society, the Western Pennsylvania Conservancy and the national Wildlife Federation.

Lauren Fraley, a legislative communications professional and former president of the Greater Pittsburgh Chamber of Commerce, will become PennFuture’s director of communications. She is taking the place of Elaine Lablame, who has moved to become the organization’s strategic campaigns director.

More: PennFuture

RHODE ISLAND

900-MW Gas-fired Plant Proposed

RTO-InvenergyInvenergy says its proposed $700 million natural gas-fired Clear River Energy Center in Burrillville would be the most efficient fossil fuel power plant in New England. The plan was announced by Gov. Gina Raimondo and Invenergy CEO Michael Polsky.

If the project is approved by the Energy Facility Siting Board, construction of the 900-MW combined-cycle generator in the northwest corner of the state would start next year and the facility would begin selling power to the New England electric grid in 2019.

Invenergy expects the low-cost plant to displace older, less-efficient power plants that burn oil, coal or gas.

More: Providence Journal

TEXAS

Study Shows Municipal Power Trumps Deregulation

TexasCoalitionSourceTexasCoalitionAccording to a report by the Texas Coalition for Affordable Power, 85% of the state’s customers served by the competitive electricity market pay more for power than those served by municipal utilities in Austin and San Antonio.

The report analyzed U.S. Energy Information Administration data on residential prices since 2002, the first year most residents were allowed to choose their electricity provider under deregulation. According to the study, residents in deregulated areas paid lower electric bills than most Americans for the first time in 2012 and 2013. However, the analysis found the average Texas household in deregulated areas paid about $4,800 more than residents of Austin, San Antonio and other cities served by just one municipal utility or by electric cooperatives from 2002 to 2013.

The state was the 18th cheapest state for homeowners over that 12-year period. Residents in nine states saw cheaper prices than Texans in regulated areas, while 26 states averaged cheaper prices in the competitive market.

More: The Texas Tribune

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