State Briefs
CALIFORNIA
This week's state briefs include news on California, Connecticut, District of Columbia, Illinois, Louisiana, Maryland, Michigan, Minnesota, and others.

Weak Auction Prompts Cap-and-Trade Concerns

californiachamber(gov)The state’s cap-and-trade system faces an uncertain future after just 11% of available carbon allowances were sold during last month’s quarterly auction, generating only 2% of expected revenues. Some analysts attribute the surplus of allowances to other state programs that effectively limit utilities’ emissions and their demand for allowances.

Questions also loom about whether cap and trade can continue beyond 2020 without explicit authorization from the state legislature, which last year failed to pass a bill that would have extended the program.

The California Chamber of Commerce continues to challenge the program in court, contending that the allowance system effectively constitutes a tax, which should have been implemented only with a super-majority vote by the legislature.

More: Los Angeles Times; Napa Valley Register

CONNECTICUT

Regulator Says Utility Cyberattacks Likely

Arthur
House

Arthur H. House, chairman of the Public Utilities Regulatory Authority, told a business group that utilities are likely targets of attacks by computer hackers.

House on Thursday spoke to the Connecticut Business and Industry Association’s conference in Farmington, explaining PURA’s recent cybersecurity report that encourages a cooperative cybersecurity plan between the state and utilities. Part of the plan is to conduct closed-door talks with utilities outside of the regulatory system to maintain security of sensitive information.

“There will be a cyberattack on our utilities,” House said. “The questions are, when will it happen and how we will be able to manage it?”

More: Hartford Courant

DISTRICT OF COLUMBIA

PSC Denies Rehearing of Exelon-Pepco Merger

DCMattavousFrye(gov)
Mattavous-Frye

The D.C. Public Service Commission on Friday unanimously upheld its decision to allow Exelon to purchase Pepco Holdings Inc.

While maintaining her opposition to the merger itself, Chairwoman Betty Ann Kane said the commission acted within the law in approving the deal and that there was no basis for rehearing.

Opponents Public Citizen and D.C. Solar United Neighborhoods, who had asked for a rehearing, said they will take their appeal to court. Meanwhile, D.C. People’s Counsel Sandra Mattavous-Frye said her office is reviewing the decision before deciding whether to challenge it. (See District, OPC Ask PSC to Reconsider Exelon-PHI Merger.)

More: Washington City Paper

ILLINOIS

Court Rejects Net Metering Extension to Community Solar

comed(comed)A state court of appeals ruled that Commonwealth Edison isn’t required to extend net metering rates to community solar projects in a defeat for a consumer protection group and the Environmental Defense Fund.

The Citizens Utility Board and the EDF had requested the Commerce Commission apply net metering rates to customers who signed on to community solar projects. ComEd opposed the request, and the ICC agreed, saying the Public Utilities Act prohibits the commission from issuing such a mandate. On appeal, the 1st District Appellate Court upheld the commission’s dismissal.

“The commission is an administrative agency responsible for setting utility rates, whose powers and duties are set forth in the act,” the court wrote. “Consequently, we give substantial deference to the commission’s decisions in light of its expertise in the area of utility ratemaking.”

More: Cook County Record

LOUISIANA

Proposed Entergy Plant Draws Backlash from Neighbors

Entergy’s proposal to build a new generation unit at a brownfield site in Eastern New Orleans is drawing heated opposition even before any formal plans have been filed. Nearly 50 community leaders, consumer advocates and environmental activists gathered June 15 at a New Orleans City Council public hearing to speak against the new natural gas-fired plant.

Entergy New Orleans has not officially asked the council to approve its plans, but earlier this year it identified the new unit as a key investment in its long-term power generation plan. The company shuttered the aging 918-MW Michoud power plant earlier this year and hopes to build a fast-starting 250-MW combustion turbine at the site. A formal filing is expected soon.

New Orleans East residents are concerned the plant would pollute their neighborhoods and contribute to sinking land. Opponents also argue Entergy is not making a big enough effort to embrace energy efficiency and renewable sources in its planning.

More: The Times-Picayune

MARYLAND

State Launches 3-Year Solar Pilot Program

mdpublicservicecommission(gov)The Public Service Commission has approved regulations setting the foundation for a community solar pilot program that will go into effect next month.

The program will focus on providing renewable energy benefits for low- and moderate-income consumers.

The three-year pilot aims to provide access to solar-generated electricity to all state customers, without requiring ownership of the systems, and attract investment in the state’s renewable infrastructure and green economy.

More: Maryland PSC

MICHIGAN

Lawmakers Consider Renewable Energy ‘Goals,’ not Mandates

DTESteveKurmas(dte)
Kurmas

The House and Senate energy committees are proposing new renewable energy goals, rather than a new renewable portfolio standard, even as the state’s two major utilities say they would support new mandates.

A Senate bill would set a 35% renewable goal by 2025, while House legislation includes a 30% goal by 2025. Neither plan includes penalties if the targets aren’t met. The current RPS mandates 10% renewables by 2015.

While some lawmakers are opposed to renewable mandates, large utilities say they would comply. Steve Kurmas, vice chairman of DTE Energy, said the utility “will build incremental renewables with or without a mandate.” David Mengebier, senior vice president of governmental and public affairs for Consumers Energy, said the company would be “OK” with mandates.

More: MLive

MINNESOTA

Regulators Approve Coal Plant Retirements

TaconiteHarbor(minnpower)Minnesota Power said it will study the implications of reducing its coal reliance after the Public Utilities Commission approved the utility’s 15-year resource plan, which calls for more investments in wind, solar and natural gas and the retirement of coal units at two plants.

Under the plan, the Taconite Harbor plant in Schroeder would discontinue coal use by 2020, and two coal-fired units at the Clay Boswell plant in Cohasset would shut down in 2022.

The PUC asked that the Duluth-based utility study its changing resource mix. Minnesota Power, which now relies upon coal for 75% of its power, plans to transition to equal one-third parts coal, renewables and natural gas. A decade ago, Minnesota Power’s portfolio was 95% coal.

More: Associated Press

MISSOURI

City Utility, KCP&L Reach Settlement over Tx Usage

KansasCityP&L(kcpl)Kansas City Power and Light will pay the City of Independence’s utility nearly $12 million in installments during the next four years to settle a disagreement over transmission costs.

The case stems from Independence Power and Light’s decision to change its status with SPP from non-transmission owner to transmission owner last year. That meant new rates whenever SPP used IPL’s transmission system.  Independence had billed KCP&L for an annual transmission revenue requirement of $7.2 million, and KCP&L objected to the higher rate.

The settlement requires FERC approval.

More: Independence Examiner

MONTANA

NorthWestern Asks PSC to Halve Mandated Solar Rates

northwesternenergy(northwestern)NorthWestern Energy asked the Public Service Commission to cut the amount it is mandated to pay to commercial solar projects of 3 MW or less. The utility told the PSC that the mandated price to qualified facilities is too high and is hurting consumers.

NorthWestern wants the current rate cut in half and the contracts shortened. The state’s rate is $66/MWh, similar to the price the company gets for its own hydroelectric power.

The solar projects are each capable of powering about 540 homes, and there are more than 80 on the current docket, NorthWestern said. “For each 3-MW project, the differential between the QF rate and the rate we propose is about $5 million per solar contract,” said John Alke, a NorthWestern attorney. The contracts run 25 years.

More: Billings Gazette

Court Allows Colstrip Lawsuit to Continue

colstripplant(pugetsoundenergy)A state judge expressed alarm last week at the estimated 200 million gallons of contaminated water seeping annually from leaky ash-storage ponds at the Coltstrip power plant and allowed a lawsuit challenging the state’s enforcement efforts to proceed.

District Judge Robert Deschamps rejected arguments from Department of Environmental Quality officials that they were appropriately managing the problem. A 2012 deal between regulators and Talen Energy, Colstrip’s manager, was intended to clean up decades of contamination of underground drinking water supplies. Under a separate settlement, the plant’s six owners paid $25 million to Colstrip residents whose water was fouled by the plant’s ash ponds.

Environmentalist groups are challenging the 2012 agreement, which set few deadlines for action and could entail years of further study.

More: Associated Press

NEW HAMPSHIRE

Cooperative First to Buy from Wind Farm

newhampshirecoop(newhampshire)The New Hampshire Electric Cooperative is the first buyer of power produced by the Antrim Wind project. The cooperative will purchase 25% of the $65 million project’s output, or about 7.2 MW.

The 20-year agreement represents about 3% of the cooperative’s total demand. The 5.4 cents/kWh its customers pay for generation is among the state’s lowest. The cooperative said the power will help it meet its mandate under the state’s renewable portfolio standard and its own goal of having 25% of its demand served by renewable energy by 2025.

Construction is to begin later this year with operations starting by the end of 2017.

More: New Hampshire Union Leader

NEW YORK

RG&E, NYSE&G Rate Hikes Approved

rochestergas(rg&e)Regulators approved the first rate increases in four years for Rochester Gas & Electric and New York State Electric and Gas customers. The increases are effective July 1 and will be phased in over two years.

A typical RG&E electricity customer would pay $1.10 more per month beginning in July, another $2.39/month a year after and a third increase of $2.84/month in July 2018. NYSEG customers would see monthly increases totaling $5.75/month by July 2018.

Part of RG&E’s increase would help pay for the Ginna Retirement Transmission Alternative that is intended to mitigate the possible closure of the Ginna nuclear power plant. RG&E electric customers already are paying a $2.20/month surcharge to keep Ginna operating until March to maintain system reliability.

More: Democrat & Chronicle

Bill Would Block PSEG-LI Power Purchases

psegli(pseg)Two state legislators introduced a bill last week that would force PSEG-Long Island to separate electricity purchasing planning from system management to reduce what the lawmakers believe is a conflict of interest.

Assembly members Fred Thiele Jr. and Dean Murray introduced legislation to separate the functions, saying that PSEG-LI may face conflicts of interest because it produces power from its own units. The utility has recommended that the Long Island Power Authority not buy power from a planned 750-MW Caithness power plant, which it said is not needed.

PSEG-LI took over managing the electric grid on Long Island from the Long Island Power Authority last January. It was also instructed to develop plans to purchase power.

More: Long Island Business News (subscription required)

NORTH CAROLINA

Roanoke River Basin Files Coal Ash Suit Against Duke

ncroanokeriverbasinassociation(roanokeriver)The Roanoke River Basin Association has filed another lawsuit against Duke Energy over its coal ash management, this one alleging that Duke’s Mayo power plant violated the federal Clean Water Act.

The suit alleges that 6.9 million tons of ash from the plant have contaminated Mayo Lake, wetlands and groundwater.

The group has filed a similar suit against Duke over its Buck plant. The filings claim that state and federal officials aren’t properly enforcing environmental laws.

More: The Charlotte Observer

NORTH DAKOTA

PSC Approves Brady I Wind Farm; Brady II Next?

northdakotawind(wiki)The Public Service Commission last week unanimously approved the contentious $250 million, 87-turbine Brady Wind Energy Center I. The NextEra Energy Resources project will provide 150 MW of power for Basin Electric Power Cooperative.

The project faced stiff opposition and went through the longest hearing for a proposed wind farm in state history, with 15 hours of testimony on March 31. The PSC also consented to construction of a 19-mile transmission line.

NextEra expects construction to begin this month, with the project scheduled to be completed by the end of the year. The project is part of a proposed two-phase wind complex in the state’s southwest. The PSC is still considering the application for the adjoining 150-MW Brady Wind II project, which calls for 72 turbines.

More: The Bismarck Tribune

OHIO

Finalists for PUCO Seat Sent to Kasich

PublicUtilitiesCommOhio(PUCO)A Public Utilities Commission nominating committee pared down a list of nine candidates to four to fill a vacancy, and now the final selection will be made by Gov. John Kasich.

The final four are Sam Gerhardstein, former director of government affairs at Columbia Gas of Ohio; Dave Hall, a state Republican legislator who sits on the House Public Utilities Committee; Howard Petricoff, an energy attorney who recently retired; and Gregory Williams, an attorney who served as Kasich’s senior law clerk in 2011.

Nineteen people applied for the opening.

More: Columbus Business First

PENNSYLVANIA

FE Companies Get OK for Infrastructure Upgrades

firstenergypennsylvania(firstenergy)State regulators approved infrastructure improvement plans for FirstEnergy’s four Pennsylvania utilities, which will allow the utilities to recover the costs through customer charges effective July 1.

The Public Utility Commission’s decision affects customers of Pennsylvania Power, West Penn Power, Metropolitan Edison and Pennsylvania Electric.

Under the plan, Penn Power expects a 0.3% increase in distribution charges; Penelec will boost charges 0.04%; Met-Ed will implement a 0.03% hike; and West Penn Power will increase charges by 0.06%.

More: DailyEnergyInsider

VERMONT

Governor Signs Revamped Power Plant Siting Bill

Shumlin
Shumlin

Gov. Peter Shumlin signed a renewable energy bill that gives “substantial deference” to towns where renewable projects would be located.

The legislation was based in large part on the recommendations of the Solar Siting Task Force to give localities more say in the Public Service Board permitting process for projects that have been determined to meet the state’s energy and climate goals.

The General Assembly passed the bill on June 9 after a previous version of energy siting legislation was vetoed by Shumlin over concerns of the unintended effects of new wind sound standards.

More: Gov. Peter Shumlin

VIRGINIA

Dominion Plan to Bury Power Lines Met with Skepticism

virginiadominion(dominion)The State Corporation Commission questioned Dominion Virginia Power’s request for a $140 million proposal to bury its most vulnerable power lines to decrease outages.

The project, which would put about 400 miles of distribution lines underground during the first phase, would increase customers’ bills by about $6/year. Commissioners questioned whether the same result could be achieved through other, less expensive efforts, such as tree trimming.

The utility originally asked state regulators to approve a $263 million plan. The commission is expected to rule in the next few weeks.

More: Richmond Times-Dispatch

WISCONSIN

Madison Initiates Two Residential Solar Programs

madisonmayorsoglin(gov)
Soglin

Madison Mayor Paul Soglin last week introduced two residential solar programs intended to ease the cost of panel purchase and installation.

The first program, MadiSUN Group Buy for Rooftop Solar, allows residents to band together and use the city’s competitive bidding process to secure inexpensive bids from prequalified service providers. The city is now recruiting households for the program.

The second program, a partnership with a local credit union, allows residents to finance all of their solar-related expenses at a low fixed rate.

More: Solar Industry

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