Congressional Delegation Meets with Moniz
All six members of the state’s congressional delegation met on Dec. 10 with U.S. Energy Secretary Ernest Moniz to press for answers about the proposed Plains & Eastern Clean Line transmission project, which would deliver wind energy from the Oklahoma panhandle to Arkansas and Tennessee.
Sens. John Boozman and Tom Cotton earlier this month placed a hold on a presidential nominee for a position at the Energy Department, saying they wanted more thorough answers to their questions about the 700-mile HVDC transmission line. A spokesman for Boozman said Thursday that the Republican senators were unsatisfied with Moniz’s answers and were not ready to lift the stay.
“We continue to have serious concerns that this project erodes the rights of local communities and the state of Arkansas to have a seat at the table in the decision-making process,” the senators said in a statement.
More: Arkansas News
Wind Farm Developers Lack Proper Utility, SPP Connections
The developers of a proposed 80-MW wind farm haven’t taken some fundamental steps to connect to the region’s grid, utility representatives said last week.
Dragonfly Industries International, which for the past year has pushed to build a wind power facility in Elm Springs, has had only fleeting discussions with the nearest electric utilities that are potential buyers of the power, Arkansas Electric Cooperative Corp. and Southwestern Electric Power Co. “We talked to them a few times, and what we have done primarily is direct them to the Southwest Power Pool,” said SWEPCO’s Peter Main.
But Dragonfly also has not applied to SPP, an essential step to make sure the region’s grid can accept whatever power the wind plant might generate.
More: Arkansas Democrat-Gazette
ILLINOIS
Peoples Gas Files New, Lower Estimate on Pipe Replacement
Peoples Gas has reduced the estimated price of its proposed Chicago gas main replacement project in a new filing with the Commerce Commission that pegs the cost at $6.8 billion instead of the $8 billion it earlier reported. The new price, however, is still more than double the original $2.6 billion.
The utility, which said the lower price was possible because of cost controls, is the target of an ICC investigation to determine whether the utility’s owners concealed the project’s escalating price tag before regulators approved the recent merger between Wisconsin Energy Corp. and Integrys Energy Services, the parent company of Peoples Gas.
The new estimate failed to win over Attorney General Lisa Madigan, who has threatened an investigation as well. “Peoples’ report is simply more of the same,” she said. “It does not address concerns we and the independent auditor raised. Instead of a complete overhaul of the program, they’ve decided to forge ahead with little regard for the consumers who are on the hook for this massive cost overrun.”
More: EnergyBiz
Ameren Rates to Increase, ComEd’s to Decrease
The Commerce Commission last week approved new delivery rates for Ameren’s electric and gas customers. A typical monthly electric bill will increase in January by $2 to $7, while gas bills will increase $2 to $6.
The revenue will help pay for Ameren’s modernization program. The utility expects to spend $67 million on natural gas line infrastructure and $100 million on its electrical grid next year.
The commission also approved a $67 million rate decrease for ComEd that reflects efficiencies from ComEd’s smart grid rollout. That will translate to about $1 in monthly savings on the average residential bill beginning next month.
More: Belleville News-Democrat; Chicago Tribune
INDIANA
Duke Edits Wish List in $1.8 Billion Grid Rework
Duke Energy Indiana has revised its seven-year $1.83 billion plan to revamp the state’s aging electric grid, hoping to avoid a full-blown rate proceeding. Duke’s 800,000-plus electricity customers in the state are expected to pay about 6% more from 2017 to 2022 to pay for the upgrades.
The Utility Regulatory Commission forced the utility to revise its plan after a court rejected the commission’s approval of an infrastructure improvement plan for Northern Indiana Public Service Co. Utilities in the state are able to recover infrastructure investments using a rate mechanism called a tracker, avoiding a costly rate-increase proceeding. The court’s ruling has forced regulators to review its previous approvals of the tracker surcharge.
Duke’s modernization proposal includes features such as energy-efficient transmission lines, smart meters and a “self-healing” smart grid system that can reroute power during storm outages. Duke has estimated that its grid modernization will create or sustain more than 5,000 jobs. The IURC is expected to make a decision by mid-2016.
More: Indianapolis Star
KENTUCKY
Governor Appoints Coal Exec to Energy Cabinet
Gov. Matt Bevin, a Republican, has named a veteran coal-mining executive as the state’s secretary of energy and environment.
Charles G. Snavely, a 35-year industry veteran who most recently was president of eastern U.S. operations for Arch Coal, holds a mining engineering degree from Virginia Tech.
“Charles understands the balance we must maintain between the commonwealth’s need for low-cost, reliable energy and the need for clean water and air for all Kentuckians,” Bevin said.
More: Lexington Herald Leader
MAINE
Portland Considers Solar Projects
Portland is considering building a solar energy farm at a capped landfill and installing solar panels on several municipal buildings.
The move would follow in the footsteps of neighboring South Portland, and it would help Mayor Ethan Strimling fulfill a campaign promise to procure 25% of the city’s power from renewable sources in a decade.
A city-backed proposal by ReVision Energy, a New England solar contractor, would install 2,916 solar modules at the city’s old Ocean Avenue landfill and mount photovoltaic panels on the roofs of schools, airport and library facilities.
More: Portland Press Herald
MARYLAND
Legislators: Increase Renewables, Green Jobs
Three Democratic legislators are proposing to increase the amount of electricity that state utilities must obtain from renewable resources and to spend $40 million on green job training.
The legislation would set a renewable portfolio requirement of 25% by 2020. The current goal is 20% by 2022.
Supporters say the moves would create 2,000 jobs and reduce carbon emissions by the equivalent of 563,000 cars per year at a small cost to ratepayers.
More: The Baltimore Sun
MASSACHUSETTS
Net-Metering Cap Inaction Threatens Solar Installations
Solar advocates say the legislature’s failure to raise net-metering caps could stymie several Berkshire solar projects. State Sen. Benjamin Downing, a Democrat, holds out hope that a compromise can be still be reached that would allow solar developers to take advantage of federal tax incentives that expire at the end of 2016.
Customers who qualify for net-metering are currently capped at 4% of peak electrical usage for private installations or 5% for public installations. The caps have been met in towns served by National Grid, but not in towns served by Eversource Energy.
Solar supporters say that several projects are unable to move forward without a guarantee they will be net-metered, meaning they will be paid the full retail price for any power they send out to the grid. In order to take advantage of federal tax credits, projects have to be fully operational before Jan. 1, 2017.
More: Berkshire Eagle
NEW HAMPSHIRE
Conference Predicts Tougher Project Siting Challenges
It is becoming more expensive and complicated to get new energy projects approved in the state, business leaders lamented at the 2015 New Hampshire Energy Symposium, hosted by the New Hampshire Business and Industry Association.
“Applicants are not only facing additional administrative and legal hurdles, but significant financial hurdles to do business in New Hampshire as an energy provider,” said Susan Geiger, an energy lawyer with the Concord firm Orr and Reno.
The legislature has devised new rules for the Site Evaluation Committee to evaluate as it considers an unprecedented push for new pipeline and power transmission projects. The nine-member SEC usually has the final say on such projects, even if they receive the necessary federal permits.
More: New Hampshire Union Leader
NEW MEXICO
Judge Hears Arguments in Farmington-Bloomfield Dispute
A district court judge is considering a motion to dismiss a City of Bloomfield lawsuit alleging breach of contract in connection to the municipality’s attempt to take over part of the electric system that is owned and operated by a neighboring municipality, the City of Farmington.
Bloomfield argues that under a 1960 agreement, in which Farmington acquired its electric system from a private owner, Bloomfield also had the rights to acquire the power system within its city limits.
At a hearing, a Farmington attorney argued that Bloomfield would have had the rights to infrastructure within its boundaries if it had sought to acquire the utility within 14 years of the agreement. But she said Bloomfield’s rights expired in 1974 under the statute of limitations.
More: Farmington Daily Times
NEW YORK
Utilities Deploy Drones for Line Inspections
New York State Electric and Gas and Rochester Gas & Electric began drone inspections of 36 NYSEG substations in an effort to evaluate the effectiveness of the remote-controlled aircraft.
The utilities, both owned by Iberdrola USA, had previously used helicopters for the inspections. The evaluation of the drone experience is expected to be complete in the coming weeks.
The drones are being flown only in the immediate vicinity of the NYSEG substations and at a maximum altitude of 300 feet. The contractor has also inspected static wires at a substation owned by Central Maine Power, another Iberdrola subsidiary.
More: NYSEG
Green Bank Joins Global Network
The state’s Green Bank has joined a new international network of public entities to facilitate financing for clean energy initiatives.
The Green Bank Network, an alliance of six of the new public clean energy banks, is aimed at accelerating the deployment of more than $40 billion into clean energy projects around the world, according to Gov. Andrew Cuomo. Initial funding is provided by the ClimateWorks Foundation, whose founders include the William and Flora Hewlett Foundation, KR Foundation, the John D. and Catherine T. MacArthur Foundation, the Oak Foundation and the David and Lucile Packard Foundation.
The state’s bank, which was created as part of the Reforming the Energy Vision plan, will be joined in the network by the UK Green Investment Bank, the Connecticut Green Bank, the Green Fund of Japan, Malaysian Green Technology Corp. and Clean Energy Finance Corp. of Australia. The banks appointed the Natural Resources Defense Council and the Coalition for Green Capital to create the network.
More: New York Green Bank
NYISO Unveils Website Enhancements
NYISO has enhanced its website to offer more user-friendly information for consumers as well as detailed information about the state’s wholesale electricity markets and high-voltage electric grid.
New sections of the website include value metrics that provide ongoing measurements of NYISO’s performance relating to reliability, markets, planning, authoritative information, financial responsibility and customer satisfaction.
The site includes a new real-time view of the fuel mix being used to generate electricity in New York as well as real-time data on the amount of electricity being used by consumers, dynamic price data and information on power flows to and from the grid.
More: NYISO
NORTH CAROLINA
Industrial Customers to Get Power Bill Price Break
The Utilities Commission has approved a special electric discount for industrial power users aimed at stemming the flow of jobs from the state.
The qualifications for companies to apply for the corporate subsidy, known as a “job retention tariff,” won’t be spelled out until Duke Energy proposes a discounted rate and related details, possibly next year. Such a proposal would need to be approved by the commission.
The subsidy is something Duke has been seeking for favored customers for at least four years. For a utility company, the loss of an industrial customer could be equivalent to disconnecting several large neighborhoods and shopping areas.
More: The News & Observer
NORTH DAKOTA
Landowners Speak out Against NextEra Wind Project
About 50 people gathered recently in Schefield to argue against the proposed 87-turbine Brady Wind Energy Center in southern Stark County.
“I think we need to let the Stark County commissioners know that there’s a lot more people out there that are against the wind farm than people who are for, or who are going to benefit from it,” said Tom Reichert, who lives south of Dickinson. He said his view will be obstructed if the project is built.
NextEra Energy Resources, which operates six wind farms in the state, did not have a representative at the Dec. 5 meeting. The second phase of its Brady project could include up to 60 turbines.
More: The Dickinson Press
PENNSYLVANIA
Suit: Chesapeake Energy Engaged in Deceptive Business Practices
The attorney general is suing Chesapeake Energy following an investigation into the company’s dealings with landowners to secure oil and gas leases.
“These alleged deceptive business practices occurred as part of a rush to lock up acreage in the Marcellus Shale region,” said Attorney General Kathleen Kane.
The suit asks for restitution and civil penalties under the Unfair Trade Practices and Consumer Protection Law.
More: Pittsburgh Business Times
SOUTH DAKOTA
PUC Approves Dakota Access
The Public Utilities Commission has approved a construction permit for the Dakota Access oil pipeline project. The proposed 1,134-mile pipeline would deliver Bakken crude from North Dakota to Illinois. The $3.8 billion project awaits approval from North Dakota, Iowa and Illinois.
The 2-1 vote came with a list of 49 conditions aimed at protecting landowner rights.
“If this pipeline is constructed, it is imperative and non-negotiable that construction and reclamation be conducted in a manner that allows farmers and ranchers impacted by the pipeline to very quickly get back to their business of producing food for the world in a manner uninhibited by the pipeline,” said PUC Chairman Chris Nelson, who added the conditions before the vote.
More: The Bakken
TENNESSEE
Project Would Convert Sewage Gas to Electricity
Chattanooga Wastewater Resources officials want to build a facility to generate electricity from the 300,000 cubic feet of methane produced each day by a sewage treatment plant.
The city’s Department of Public Works says it will apply for a Tennessee Valley Authority grant to cover more than half the cost of the $6.1 million project, which would burn the methane to fuel a steam turbine.
The grant would come from a 2011 settlement between the TVA and EPA committing the authority to reduce pollution in its service area.