Gov. Continues Fighting Artificial Island Cost Allocation
Gov. Jack Markell is urging FERC to rework a ruling by PJM that would force Delaware customers to pay for most of the cost of building a transmission line to stabilize a New Jersey power plant.
Markell and representatives of Delmarva ratepayers have protested PJM’s cost allocation of the project, which would bill Delaware ratepayers for 89.5% of a $275.5 million project to improve the reliability of electric deliveries from the Salem/Hope Creek nuclear complex on Artificial Island in New Jersey. (See Officials Urge PJM to Reject Artificial Island Proposal.)
Markell also weighed in on a complaint filed by Linden VFT, which is disputing another PJM construction plan on similar concerns about cost allocation.
More: The News Journal; Gov. Jack Markell
SC Lawmakers Opposing Duke Plan for New NC Tx Line
Duke Energy’s plan to run a new transmission line from a South Carolina natural gas plant into North Carolina is being opposed by a number of South Carolina lawmakers, who say the project is not beneficial to the Palmetto State. Four elected officials, led by Rep. Doug Brannon (R-Landrum) have sent protests to the South Carolina Office of Regulatory Staff.
“None of our constituents will benefit from this transmission line project,” Brannon wrote. “On the contrary, the property value for the properties impacted by this project will be devastated. The properties in question are some of the most valuable in South Carolina.”
Duke said the line is necessary to serve load in the Ashville, N.C., area, which has seen demand double since the 1970s. The North Carolina Utilities Commission has not yet ruled on the project.
More: Greenville News
ARKANSAS
Hydropower Considered ‘Good Option’ for State
Hydropower has growth potential in the state, say advocates looking for alternative forms of carbon-free energy to comply with pending government regulations to reduce carbon emissions.
“The rivers are not producing as much as they can,” Arkansas Waterways Commission Executive Director Gene Higginbotham said recently. “Arkansas is a water-rich state, and we have a good state water plan that is saving aquifers and using more surface water.”
The state currently has seven hydropower plants. The U.S. Army Corps of Engineers, which operates two hydropower dams on the Arkansas River, has studied adding another plant near Pine Bluff, at a cost of about $202 million.
More: Arkansas News
ILLINOIS
ICC Laying off 24, Part of Broader State Furloughs
Gov. Bruce Rauner’s administration has announced the layoffs of 94 unionized workers in four state agencies, saying the legislature’s inability to pass a balanced budget made the moves necessary. The layoffs include 24 employees at the Commerce Commission.
The American Federation of State, County and Municipal Employees said the governor is jumping the gun and putting the public at risk. The ICC layoffs would reduce its staff by 35%, the union said. “Other layoffs would throw out of work men and women involved with nuclear safety, tourism, recycling and overseeing utilities,” said an AFSCME spokesperson.
More: State Journal-Register
MARYLAND
Annapolis Backing Solar Facility Built on Closed Landfill
The City of Annapolis has signed a 20-year power purchase agreement with the developers of a solar facility built atop a closed landfill.
The city signed the agreement with Annapolis Renewable Energy Park, a 16.8-MW photovoltaic park on 80 acres of landfill outside of the city. The city says the power will offset CO2 emissions of 12.5% of the city’s annual household electrical usage.
“This project is about turning a liability into an asset,” Mayor Michael Pantelides said. “This park will turn a large plot of unused land into a revenue generator and a job creator.”
More: FierceEnergy
MICHIGAN
Lawmakers Urge Residents to Write to Canada to Stop Nuke Waste Plan
State and federal lawmakers are urging residents to oppose a Canadian plan to bury nuclear waste in an underground vault less than a mile from the Lake Huron coastline. Congressman Dan Kildee (D) and state Senate Minority Leader Jim Ananich have proposed a “community initiative” of letter writing to the Canadian government to protest Ontario Power Generation’s waste storage plan.
The company wants to bury low- and medium-level radioactive waste more than 600 meters deep, very close to the shore of Lake Huron. The utility says there is no risk to the lake.
More: Associated Press
Holland Using Waste Heat to Power Snow-Melt System
The City of Holland has a novel use for the waste heat from its municipal power plant: keeping city sidewalks clear of snow and ice.
The city, which is replacing its old coal-fired DeYoung plant with a natural gas unit, says the 145-MW plant will continue to use its waste heat to run a snow-melt system that keeps its downtown sidewalks and parking lots clear during the winter. The system, a network of underground 1-inch plastic pipes that carry warm water from the plant’s cooling system, was installed in the 1980s.
The $240 million gas plant will begin operations next year.
More: MidWest Energy News
MISSOURI
Columbia Muni Plant to Switch from Coal to Wood
Columbia is switching its municipal power plant from coal to wood due to Environmental Protection Agency rules on coal combustion residuals.
Columbia’s Municipal Power Plant is scheduled to accept its final delivery of Indiana coal from Peabody Energy in October, when the rules go into effect. Officials say it would be too costly to retrofit the plant to meet the new standards.
More: KMIZ
PSC Approves KCP&L’s Lower Fuel Adjustment Charge
The Public Service Commission last week approved KCP&L Greater Missouri Operations’ request to reduce the fuel-adjustment charge on its monthly bills. The change takes effect Sept. 1. It will mean a decrease of about $3.11/month for the typical residential customer in the Kansas City area and a decrease of about $2.69/month for the typical residential customer in the St. Joseph area.
The fuel adjustment charge reflects fuel and purchased-power costs during the six-month period of December 2014 through May 2015. The company’s tariff allows it to pass through increases or decreases in its energy costs to customers outside of a general rate case.
KCP&L-GMO provides electric service to 314,900 electric customers in the state.
More: Missouri Times
MONTANA
Judge Upholds PSC’s Denial of NorthWestern’s Rate Increase
A district court judge has upheld a ruling by the Public Service Commission that shot down NorthWestern Energy’s proposed rate increase. The request dates from 2012, when the company sought compensation for outage costs and for revenue losses due to the success of its energy efficiency programs.
The PSC estimated the increase would have boosted customer rates by about $4.2 million if it had been in effect for the past three years. The judge ruled that the PSC acted reasonably in denying the request. The company is considering an appeal to the state Supreme Court.
More: Associated Press
NEW JERSEY
BPU Seeks Consultant to Get Offshore Wind Going
The Board of Public Utilities says it is seeking a consultant to help it implement a five-year-old law to develop offshore wind power. The law mandated that the state develop regulations that would govern project financing, including how much of the cost would be borne by ratepayers.
BPU President Richard Mroz and Commissioner Joseph Fiordaliso disclosed the plan during their Senate confirmation hearings. Both were confirmed.
The law requiring offshore wind power has been the subject of political wrangling and is now four years past due. The state’s Energy Master Plan calls for development of 1,100 MW of wind energy by 2020. Nailing down financing guidelines is crucial to advancing the plans, which could cost as much as $1 billion.
More: NJSpotlight
NEW MEXICO
Critics Blast PNM’s Plan for San Juan’s Closure
Two intervenors in plans to shut down a pair of coal-fired units at the San Juan Generating Station filed documents last week opposing a compromise between Public Service Company of New Mexico (PNM) and environmental groups. New Energy Economy and Southwest Generation Operating Co. oppose the agreement reached by PNM, Western Resource Advocates and the Coalition for Clean Affordable Energy, made up of 12 environmental, clean energy and consumer advocacy groups.
The deal calls for PNM to submit to a hearing before the Public Regulation Commission in 2018 to determine whether the power plant near Farmington, built in 1972, should continue to operate after 2022. The agreement would keep in place the basic tenets of PNM’s current plan to close two of the plant’s four coal-fired units; PNM says that under the plan, the San Juan complex would burn about 49% less coal than it does now.
New Energy Economy argued in its filing that the agreement “contains no commitment by PNM to retire any of its remaining coal-fired capacity” at the power plant. New Energy also said PNM’s promise to procure renewable energy credits in the plan do not mean PNM will use more renewable energy.
More: The Santa Fe New Mexican
NEW YORK
Contractor Sues LIPA, PSEG for Breach of Contract
A contractor working for Long Island Power Authority and PSEG Long Island claims in a federal lawsuit that the utilities mismanaged a controversial high-voltage transmission line project through North Hempstead, then shortchanged the firm by at least $1.5 million.
Energy Contract Recovery, of Port Huron, Mich., claims in the breach-of-contract suit that LIPA and PSEG failed to obtain permits and traffic control restrictions on time; did not accurately describe the site and underground conditions; and failed to deliver materials needed for the job and properly coordinate with other contractors. When the contractor’s representatives exerted their expertise to finish the project, PSEG employees rebuffed them and became “abusive and threatening,” according to the suit.
The 5-mile transmission line from Great Neck to Port Washington drew criticism from residents who claimed its 80-foot utility poles were unsightly and dangerous. ECR was initially contracted by National Grid in 2013 to construct the 69-kV line, which PSEG said was needed to ensure reliable power to the region. The work was scheduled to begin in December 2013, but the necessary permits weren’t secured until Feb. 11, 2014, according to the lawsuit.
More: Newsday (subscription required)
Schumer Pushes for Solar Tax Credit Extension
Solar companies say a federal tax credit is essential to making residential and commercial projects economically viable, and they warn that the loss of the credit would be a serious blow to the industry.
U.S. Sen. Chuck Schumer (D) held a news conference Wednesday at the massive SolarCity factory now under construction in South Buffalo to call for an extension of the federal solar tax credit program and a change in federal regulations that would let homeowners and businesses take advantage of the tax credit sooner. The 30% federal solar investment tax credit is set to expire for residential projects in 2016 and to shrink to 10% for commercial projects.
Extending the tax credit and letting residents and companies receive the tax benefits as soon as construction begins, instead of waiting for projects to be completed, would encourage long-term investments in solar energy, provide certainty for solar customers and boost sales for companies such as SolarCity, for which the state is building the largest solar panel factory in the Western Hemisphere at the RiverBend site.
More: Buffalo News
NORTH DAKOTA
PSC Approves $6M Natural Gas Pipeline
The Public Service Commission approved a siting permit for a $6 million natural gas liquids pipeline that will connect Oneok’s Lonesome Creek gas plant to its Garden Creek pipeline. The pipeline will have a capacity of 30,000 barrels a day. The gas plant, which is to be completed by December, will be able to process 200 million cubic feet of natural gas per day, according to the PSC.
More: Argus Media; Associated Press
OHIO
PUCO Chairman to Utilities: ‘Stop Trying To Scare Ohioans’
The chairman of the Public Utilities Commission has warned utilities to stop using scare tactics in their lobbying efforts.
“Stop trying to scare Ohioans,” said Andre Porter, who chastised state utilities for suggesting that the state’s deregulation was imperiling system reliability.
FirstEnergy, one of the utilities seeking to adjust its power purchase agreements to guarantee a steadier revenue stream, denied it was fear mongering. CEO Chuck Jones “made it very clear we’re not seeking re-regulation in Ohio,” spokesman Doug Colafella said in response to Porter’s comments. “Our priority is the PPA in front of the commission.”
More: Columbus Business First
OKLAHOMA
2 Co-ops Postpone Consolidation; 2 Others Agree
Two electrical cooperatives have postponed their consolidation plans after questions were raised about the motivations and duties of one of the co-op’s board members. Canadian Valley Electric Cooperative and Central Rural Electric Cooperative have been studying consolidation plans for two years. The co-ops had picked a new name, Cenergy Electric Cooperative and distributed marketing materials to members touting the benefits of consolidation, including projected savings of $48 million over 10 years. But votes by co-op members were postponed after an allegation arose about the “fiduciary duty” of a Canadian Valley board member.
Meanwhile, two western co-ops will consolidate next year after their members approved the plan earlier this month. Kiwash Electric Cooperative and Caddo Electric Cooperative will become CKenergy Electric Cooperative on Jan. 1, with a combined 25,000 meters and more than 7,600 miles of electric distribution lines. A report says consolidation would save the co-ops between $20 million and $30 million over a 10-year period.
More: The Oklahoman
Federal Judge Sets Court Date in Wind Farm Lawsuit
An Oklahoma federal judge has ordered a trial next year over nuisance claims against a wind farm west of Oklahoma City. U.S. District Judge Timothy D. DeGiusti set a bench trial for April 11 against Kingfisher Wind, a unit of Apex Clean Energy.
Construction has started already on the 298-MW wind farm, but a group of landowners want the turbines to be placed at least 2 miles from their homes. About 150 people are working on the construction of the project, which will have 149 turbines. The company has said it expects the project to be finished by year’s end.
“Apex is taking a big risk in continuing to construct these industrial wind turbines when a ruling could require removal shortly after construction,” said Terra Walker, one of the plaintiffs.
More: The Oklahoman
PENNSYLVANIA
Commission Finds No Changes in Marcellus Region Streams
A study by the Susquehanna River Basin Commission of 58 watersheds in the Marcellus Shale region found no change in the water quality as a result of drilling for natural gas in the area. The study showed that from 2010 to 2013, the water quality in the studied watersheds remained good.
The Remote Water Quality Monitoring Network, which began in 2010, now tests the water quality of the streams continuously. The electronic devices transmit reports remotely to the commission’s headquarters in Harrisburg every two to four hours.
More: FierceEnergy
Trains Carrying Oil Won’t be Slowed Despite Safety Report
A request from Gov. Tom Wolf’s office to reduce the speed limit for the up to 70 trains that daily transport crude oil through the state is being resisted by the two major railroad companies.
The suggestion comes from a report Wolf commissioned from the Railroad Engineering and Safety Program at the University of Delaware, which contained 27 recommendations, including reducing by 5 mph the federal speed limit of 40 mph.
Norfolk Southern and CSX said they believe their safety procedures already are sufficient.
More: Trib Total Media