RGGI Allowances Clear at $6.02
The nine Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative last week said the 29th auction of CO2 allowances on Wednesday sold at a clearing price of $6.02. The price is 23% higher than the clearing price from a year ago.
Proceeds for the auction were $152 million, which brings the cumulative total for the program to $2.26 billion for investment in clean energy and energy efficiency programs in the member states.
Bids for the CO2 allowances ranged from $2.05 to $10 per allowance.
More: RGGI
IOWA
FERC Ruling Could Clear Way for School District’s Solar Project
A recent FERC ruling may clear the way for a local school district to generate solar power and sell its excess production to its host city.
The Rudd-Rockford-Marble Rock Community School District wanted to install a 750-kW system, which would produce twice the energy it needs. It proposed to sell the excess to the city of Rockford. But the Rockford municipal utility has a contract with wholesaler Municipal Energy Agency of Nebraska (MEAN) and argued that it would be violating the terms of its contract if it bought power from the school district.
A recent FERC case regarding a similar situation in Colorado ended in favor of a new solar generator, citing the Public Utility Regulatory Policies Act. Another utility has asked FERC to clarify its ruling, and the school district and MEAN are awaiting that review.
More: Midwest Energy News
MARYLAND
Low-Income Residents Can Receive Help with Bills
The application period is open for state residents who are having trouble paying their energy bills to get some help from the federal Low Income Home Energy Assistance Program.
John Allen, Delmarva Power and Light regional vice president, said the block grant program doesn’t pay anyone’s entire bill.
But, he said, “The financial assistance can help someone get through a crisis, a really cold winter or a dangerously hot summer.”
More: The Star Democrat
MASSACHUSETTS
North Adams Boasts Largest Solar Farm
North Adams is now generating more solar power than the entire state did in 2007.
A 3.5-MW facility atop a former landfill, which feeds electricity into the power grid and is purchased back by the city at a reduced rate, is expected to produce most of the energy consumed by the city’s buildings, streetlights and other operations.
Combined with two other smaller solar projects with which the city has agreements, North Adams expects to offset all of its electricity usage with solar power. The city expects to save more than $400,000 a year now that the landfill solar facility is up and running.
More: Berkshire Eagle
MINNESOTA
Minnesota Power’s IRP Forecasts Move from Coal
Minnesota Power has told the Public Utilities Commission it will continue to move away from coal-fired electricity over the next 15 years and generate more power from natural gas, wind and solar sources.
The company’s 15-year integrated resource plan, which is filed biennially, lays out a pathway to comply with the Environmental Protection Agency’s Clean Power Plan. Minnesota Power pledged to add 200-300 MW of natural gas generation over the next 15 years, but the 500-page plan does not say where and when that will happen, or which of its coal-fired generators it will retire.
Environmental groups have pressed for a faster reduction in coal generation. Minnesota Power says that it needs to maintain a base of coal-fired plants to supply its large industrial customers.
More: Duluth News Tribune
PUC Revokes Licenses for 2 Wind Projects
The Public Utilities Commission has revoked licenses for the Sibley Wind Substation and Comfrey Wind Energy project.
Sibley Wind, a 10-turbine farm rated at 20 MW, asked for its construction permit to be withdrawn to address ongoing opposition based on bird- and bat-death concerns. The project’s management said it would try to meet with opposition members and attempt to “find a solution to answer their concerns.”
Comfrey Wind began construction before the end of 2014 to qualify for the federal Production Tax Credit without completing full compliance filings. Comfrey Wind President Pete Samuelson urged the PUC to show some compassion. “Comfrey asks that the commission understand and empathize that Comfrey had no choice but to perform minimal construction work, without holding a pre-construction meeting, prior to the end of 2014 to qualify for the PTC.” Comfrey is rated at 31.5 MW and includes 17 turbines on nearly 4,000 acres.
More: The Free Press
NEBRASKA
NPPD Offering Lower Rates for Long-Term Commitments
Nebraska Public Power District is considering offering lower rates in 2016 for cities, power districts and other wholesale customers that sign new 20- or 25-year commitments. A proposal during the August board of directors meeting sets the potential wholesale rate increase at just 0.6% for entities that enter into a new agreement. Customers who don’t commit themselves would get a 3.8% increase.
NPPD’s contracts with wholesale customers — including 51 communities and 25 public power districts and cooperatives that resell electricity to their retail customers — do not expire until the end of 2021. NPPD has been working on a plan to extend those contracts and improve its long-term financial stability.
The board is expected to vote on the 2016 rates in November. NPPD has raised its wholesale rates about 60% in the past nine years.
More: Columbus Telegram
NEW HAMPSHIRE
Northern Pass Funds Rejected
The North Country Community Recreation Center’s board of directors has voted to return a $10,000 grant from a fund created by the owner of the controversial Northern Pass project.
“We can’t just take a payoff,” said John Fothergill of the NCCRC board of directors. “We look to partner with our funders. We’re unclear about the Northern Pass Fund partnership intentions except that this seemed like an award for their own immediate public relations needs.”
The money came from the Coös County Jobs Creation Association, which was created by Northern Pass developer Eversource Energy. John Gallus, a former state legislator who chairs the association, said there were absolutely “no strings attached” to the award, other than that it be used to create or keep jobs in Coös County.
More: New Hampshire Union Leader
NEW JERSEY
PSE&G Pilot Program Donates EV-Charging Stations
Public Service Electric & Gas has donated 35 electric car charging stations at seven sites as part of pilot program aimed to help spur the market for EVs.
“The lack of convenient charging stations remains an impediment that keeps potential EV drivers from going all electric,” said Joe Forline, vice president for customer solutions.
PSE&G plans to donate 150 units under the $400,000 program, particularly to companies, colleges and hospitals.
More: NJ Spotlight
NEW MEXICO
PRC Commissioners Refuse to Recuse from San Juan Hearings
Two members of the Public Regulation Commission have said they will not disqualify themselves from hearing Public Service Company of New Mexico’s (PNM) plans for the controversial San Juan Generating Station, despite an environmental group’s call for them to recuse themselves because they are allegedly too chummy with the utility.
Commissioners Sandy Jones and Patrick Lyons filed responses to a motion by the nonprofit New Energy Economy seeking to disqualify four of the five PRC members from ruling on the utility’s plans for the coal-fired power plant near Farmington. PNM aims to close two of the San Juan plant’s four coal-fired units and replace the lost capacity with more power from another unit at the plant, as well as power from a proposed new facility and third-party sources.
The activists contend that emails between PNM executives, as well as public statements by some commissioners, show the regulators are too cozy with the utility and should excuse themselves from voting on the issue.
More: Santa Fe New Mexican
PNM Asks for 15.8% Rate Increase in Return for Lower Fuel Costs
Public Service Company of New Mexico (PNM) has filed for a rate increase that would boost residential rates by 15.8%, generating about $123.5 million in additional revenue.
PNM said the rate increase would be lower if the state’s Public Regulation Commission also approves its plan for the San Juan Generating Station. The company arranged a new coal-supply contract as part of the San Juan proposal, which would reduce the increase to 8.3% for the average residence, or about $6.07 a month on residential electric bills.
The five-member commission in May rejected PNM’s previous rate request. The new request no longer includes a new fee for solar customers to connect to the grid, which would have ranged from $21 to $26.
More: Santa Fe New Mexican
NEW YORK
Solar Farm Proposed in Monroe County
The Monroe County legislature is considering authorizing the installation of two solar farms on about 28 acres of vacant county-owned land. County Executive Maggie Brooks said the project would be the largest solar installation in the state outside of Long Island and save the county $7.3 million in energy costs over the next 20 years.
The farms would encompass five parcels of vacant land and house 42,000 solar panels, totaling 11 MW. Under the terms of the agreement, the county would lease the land to Buffalo-based Solar Liberty, which would install and operate the solar farms. In exchange, the county would buy electricity from Solar Liberty and sell it to Rochester Gas & Electric for transmission and delivery credits that county officials and Solar Liberty executives estimate would be worth about $366,000 annually.
Solar Liberty estimates the project would be complete by the end of 2016.
More: Rochester Democrat & Chronicle
NORTH DAKOTA
Clean Power Plan Presents Dilemma for Utilities
The Environmental Protection Agency’s Clean Power Plan is hitting close to home in the state, where the final rule requires power plants to cut their carbon dioxide emissions almost in half. Democratic Sen. Heidi Heitkamp has called EPA’s plan a “slap in the face.”
Utility executives wonder how they can meet the EPA targets in the coming years without raising electricity rates and affecting system reliability, given that much of the electricity in the state’s west-central region is generated from brown coal. Some executives are considering closing coal plants to meet the emissions target, but they say they’re still working to understand the implications of the regulations.
“What is a fear on my part is that we’ll make irreversible or irrevocable decisions, and you might look like a hero or you might look like an idiot,” said Robert “Mac” McLennan, president and CEO of Grand Forks-based Minnkota Power Cooperative.
More: Grand Forks Herald
OKLAHOMA
OG&E Customer Bills Lowered due to Lower Natural Gas Prices
Oklahoma Gas & Electric says lower natural gas prices and SPP’s Integrated Marketplace will mean lower bills for its customers. OG&E said the typical residential customer should see a monthly bill reduction of $5 starting this month.
OG&E, however, is also waiting on a final decision from the Corporation Commission on the utility’s $1.1 billion environmental compliance and replacement generation plan. The plan would increase customer bills 15 to 19% by 2019.
More: The Oklahoman
Solar Customers to See Changes Under OG&E’s New Billing Structure
Oklahoma Gas & Electric last month filed a new billing structure with the Corporation Commission that will add a demand charge for customers who install solar panels on their roofs. About 200 OG&E customers have installed rooftop solar.
The new rate structure for distributed generation customers would have four parts: a demand charge, an energy charge, a fuel charge and a customer charge. That’s a change from current bills, which are comprised of an energy charge, a fuel charge and a customer charge.
OG&E said the new billing structure will eliminate any subsidization of distributed generation customers by other customers.
More: The Oklahoman
PENNSYLVANIA
Customer Fees Coming for New Smart Meter Program
The Public Utility Commission has approved PPL Electric’s plan to upgrade its smart maters. Installations are expected to start in 2017.
The meters will replace earlier devices installed in 2002 that are reaching the end of their useful life, according to the company.
The affected 1.4 million customers will soon begin paying a fee on their monthly bills expected to fluctuate from 58 cents in the beginning to $6.69 in 2019, the final year of installation.
More: The Morning Call
PECO Reliability Work will Raise Rates
PECO Energy customers will see their rates rise next year as the utility continues replacing equipment and upgrading infrastructure.
Under an agreement reached with the Public Utility Commission, the average monthly bill increase for residential customers will be $4.17. Small businesses will see their bills rise $17.02; for large businesses, the increase is $432.32.
The rates will translate to $127 million in increased annual income for the company.
More: Philadelphia Business Journal
TEXAS
PUC Commissioner Concerned over Hunt’s Oncor Acquisition
Public Utility Commissioner Ken Anderson has filed a memo saying the agency must determine whether Hunt Consolidated’s bid to take over bankrupt power distributor Oncor gives “tangible and quantifiable benefits to ratepayers.” Anderson said the commission raised similar concerns in 2008 about the $45 billion leveraged buyout of TXU, which created Energy Future Holdings — whose bankruptcy is setting the stage for the Oncor sale.
Dallas-based Hunt filed a proposal with a federal court in August to split EFH into two companies as part of EFH’s $40 billion bankruptcy proceedings. Hunt and a group of creditors would raise $12 billion to take over Oncor, Texas’ largest power distributor with more than 119,000 miles of power lines. EFH’s power-generating division Luminant, which owns coal-fired power plants, and its retail electricity unit TXU Energy would be owned by a different set of creditors.
Anderson’s concern is that Oncor would become part of a real estate investment trust largely to avoid being hit with a big tax bill. Observers say a transaction of similar size has never been attempted.
More: Fort Worth Star-Telegram
VIRGINIA
Appalachian Power Plans Upgrade Project
Appalachian Power is seeking regulators’ permission to upgrade a transmission line serving Bland and Wythe counties as well as a small portion of Mercer County in West Virginia.
The Bland Area Improvements Project would upgrade 20 miles of existing line, add about 5 miles of new line and create a new substation.
Construction on the $80 million project would begin late next year, with a projected in-service date of December 2018.
More: SWVA Today
WISCONSIN
Dane County Gives up Efforts to Force More Money out of Enbridge
Officials in Dane County are giving up their attempts to force pipeline company Enbridge Energy to pony up money to be held in case one of the company’s pipelines breaks and spills oil.
“It’s just fruitless,” lamented county zoning administrator Roger Lane, who said his county’s efforts were blocked by state lawmakers.
The county wanted to make a $25 million bond a requirement for its approval of a zoning permit for a pipeline pump station. But Gov. Scott Walker signed a state budget that, as a provision, forbade local entities from requiring pipeline insurance. The county wanted the provision because of perceived issues getting Enbridge to pay for damage related to a Michigan spill.
More: Wisconsin State Journal