State Audit Reveals Faults In CPUC Contract Practices
The Public Utilities Commission failed to follow state rules for awarding noncompetitive contracts, did not guard against the appearance of improper influence from utilities when making decisions and failed to fully disclose important communications, according to a new state audit.
The audit focused largely on the CPUC’s contracting methods, which showed the agency spent $2.4 million on unexplained contracts and failed to monitor performance in a third of the contracts that were reviewed.
“The shortcomings we noted in CPUC contracting practices resulted from a lax control environment that the CPUC has allowed to persist,” the auditors said.
More: Los Angeles Times
SDG&E Challenges CCA Lobbying Rules
San Diego Gas and Electric is challenging state rules governing the manner in which a company-backed shareholder group can lobby against the creation of community choice aggregators (CCAs).
In August, SDG&E became the first utility in the state to get approval from the Public Utilities Commission to create such a lobbying group. But the company says the commission’s framework is too onerous and exceeds what is allowable under a state law.
CCAs allow elected city officials the authority to purchase power for ratepayers instead of utilities, which still operate the distribution system. They have become increasingly popular among cities seeking to service its load entirely through renewable energy.
More: The San Diego Union-Tribune
KANSAS
Former Co-op Employee Sentenced for Embezzlement
A former Sedgwick County Electric Cooperative employee was sentenced to five years’ probation for embezzling thousands from the co-op.
Jamie L. Martin, 48, was ordered to repay the co-op about $187,000 and another $97,000 to cover the costs of the audit that uncovered the theft. She could serve 22 months in prison if she fails to abide by the terms of her probation.
Martin pocketed cash payments from customers, altering computer records to conceal the losses.
More: The Wichita Eagle
MICHIGAN
Bill Would Prevent Customers From Paying for Leaked Gas
State Rep. Jeff Irwin (D-Ann Arbor) has introduced legislation that would block utilities from charging customers for gas that leaks from their systems before it can be sold.
Irwin said he was inspired to draft House Bill 5913 after he read a recent economic analysis that concluded utilities are less motivated to fix gas leaks when they can recover the cost of leaked gas in rates. “The public should not be subsidizing gas leaks,” Irwin said in a statement. “Charging customers for gas that they never get picks their pockets and pollutes the environment.”
Consumers Energy spokesman Dan Bishop said his utility was reviewing the bill. Bishop also called the wasted gas issue a de minimis problem, meaning it didn’t merit consideration.
More: MLive
NEW MEXICO
Albuquerque Approves Resolution for 25% Solar
The Albuquerque City Council unanimously approved a resolution that aims to power city-owned buildings and facilities 25% through solar energy by 2025.
The city’s Energy Conservation Council will put together a plan for the mayor and council with implementation options and recommendations to reach the 25% goal.
More: Albuquerque Business First
OHIO
New Natural Gas-Fired Plant Approved by Siting Board
The Power Siting Board has approved plans from Advanced Power Services to build a $1.1 billion, 1,105-MW natural gas-fired power plant in Columbiana County. The location will give the plant direct access to the region’s shale gas resources.
Construction is set to begin in January, and the plant should be operational by 2020. The plant will replace about a fifth of the capacity that American Electric Power sold off in a deal announced last week.
More: Columbus Business First
RHODE ISLAND
Town Council Opposes Invenergy Power Plant
The Burrillville Town Council voted unanimously to oppose the construction of a 1,000-MW natural gas power plant, ending its official silence on the controversial $700 million Invenergy project.
The council voted at a special meeting held in a high school auditorium to accommodate larger-than-usual attendance. Members said they took the stance only last week so as not to unduly influence the boards and commissions that had been asked to submit advisory opinions on the Clear River Energy Center, which would be located in woodlands near the town.
The town had told the state’s Energy Facility Siting Board that Invenergy’s application was incomplete. Additionally, local authorities that were counted on to provide cooling water for the plant have withdrawn agreements to do so. (See Proposed RI Power Plant Loses Cooling Water Source, Seeks Delay.)
More: Providence Journal
VIRGINIA
State Approves Dominion’s Coal Ash Wastewater Plan
The State Water Control Board approved Dominion Virginia Power’s plan to treat the millions of gallons of coal ash wastewater stored in ponds and discharge it into the James River.
Dominion said that after the wastewater has been treated and discharged, it will no longer use wastewater ponds to store coal ash and will switch to a dry storage method in which the ash will be transferred to lined landfills.
The approval came over the objections of environmental groups. “We are just disappointed that the board did not take steps to further improve the permit,” said an attorney with the Southern Environmental Law Center.
More: Richmond Times-Dispatch