RGGI Auctions Competitive, Potomac Economics Says
The Independent Market Monitor for the Regional Greenhouse Gas Initiative found no evidence of anti-competitive behavior in the secondary market for CO2 allowances in the fourth quarter of 2015, according to a recent report.
Part of Potomac Economics’ ongoing monitoring of RGGI auctions and the secondary
markets for CO2, the report includes futures prices, market activity and allowance holdings. The analysis addresses the period from October to December 2015 and is based on data reported to the Commodity Futures Trading Commission and the Intercontinental Exchange, as well as other sources.
ISO-NE Capacity Auction Results Filed
ISO-NE’s 10th Forward Capacity Auction cleared at $7.03/kW-month for all resources within New England and imports from Québec, lower than the previous auction. There was no price separation between capacity pricing zones.
The Feb. 8 auction, for the 2019/20 commitment period, procured 35,567 MW of capacity to meet a 34,151-MW installed capacity requirement. In all, 40,131 MW of resources, including 6,700 MW of new resources, qualified to compete in the auction.
The auction acquired 31,371 MW of generation, including 1,459 MW of new generation. Three new power plants will help close the gap created by recent or pending retirements of more than 4,200 MW of coal, oil and nuclear generation. The auction also cleared 2,746 MW of demand-side resources, including energy efficiency measures and demand response assets, as well as 1,450 MW of imports from New York and Canada.
More: ISO-NE
ARKANSAS
Wind Project Withdrawn Following Repeal of Annexation
Dragonfly Industries International has withdrawn a proposal for the state’s first wind farm following a March 1 vote by Elm Springs residents to repeal annexation of land set aside for the facility.
The Elm Springs City Council voted to annex the land into the city last year, but the project met opposition months before the acquisition. Disagreement between opponents and proponents of the project became even more contentious when it was revealed Dragonfly CEO Jody Davis had a federal embezzlement conviction, while a Dragonfly spokesman had financial troubles of his own.
More: KFSM
DELAWARE
Opponents Wary of Proposed Natural Gas Plant
Opponents of a proposed natural gas-fired power plant in Middletown staged a protest last week, asking the city’s mayor for more information about the project, which has dominated local politics because of concerns about pollution.
Cirrus Delaware plans to build the facility as a backup power supply for a 228,000-square-foot data center.
The plant would generate 52.5 MW and operate during peak times, selling power back to the grid.
More: The News Journal
MICHIGAN
AG Opposes Second DTE Rate Increase Request
DTE Energy residential ratepayers could be handed another $75 annual hike in electric bills just three months after an increase of $114, but Attorney General Bill Schuette wants to halt the request.
“Electricity is a basic need for families and businesses across Michigan,” Schuette said in a prepared statement. “I am asking the Michigan Public Service Commission to closely examine the request being made by DTE that will raise rates for a second time in just a short period.”
DTE’s second rate hike would amount to a 6.6% increase in electric rates, after regulators approved an 11% increase in December. The latest request seeks to place costs associated with peak demand solely on residential customers, compared with the current practice of sharing those costs with business and industrial customers. The PSC has twice denied similar requests from DTE.
If the increase is approved, the state would have the highest electric rates in the northern Midwest, according to the U.S. Energy Information Administration.
More: Birmingham Patch
MINNESOTA
Community Solar Generating Uptick in Complaints
The push to build community “solar gardens” — facilities in which homeowners can hold individual shares of the output — has translated into increased calls to the attorney general’s office.
Deputy Attorney General James Canaday says people are confused about the proliferation of unsolicited offers they are receiving. “The solar garden business is very new,” he told Minnesota Public Radio. “It’s the Wild West right now.”
Although there are only 17 community solar facilities currently operating in the state, that number is expected to increase to 200 by the end of the year. Each operates differently, with some offering monthly billing and others requiring large upfront charges and long-term commitments. Any long-term commitment deserves careful study, said Canaday, noting that for the most part, solar gardens are not regulated.
More: Minnesota Public Radio
MISSOURI
PSC Approves KCP&L Solar Facility Application
The Public Service Commission last week granted KCP&L-Greater Missouri Operations a certificate of convenience and necessity to construct, own, operate and maintain a solar generation facility in Jackson County.
When completed, the solar plant will generate around 4,700 MWh annually, or enough electricity for about 440 customers, according to KCP&L’s application. The company said it wants the facility to begin operating by late July.
The PSC noted that KCP&L proposed to build the plant as a pilot to give the company “hands-on” experience for designing, constructing and operating additional solar facilities. “Gaining that experience now is important so that GMO can remain in front of the upcoming adoption curve,” the commission wrote.
More: The Missouri Times
NEW HAMPSHIRE
State DOT Added to Northern Pass Complaint
The Society for the Protection of New Hampshire Forests has filed a motion to add the state Department of Transportation to its lawsuit against Northern Pass Transmission.
The group included the department because Northern Pass argued that it is the only party with the authority to allow developers to bury the cable along highway rights of way. The society says it owns land under and along certain state highways, including Route 3, which is being eyed by Northern Pass as part of the cable’s route and is adjacent to the Washburn Family Forest.
“We have a legal and ethical obligation to defend conserved lands like the Washburn Family Forest from private commercial development such as Northern Pass,” said Jane Difley, president of the society.
More: New Hampshire Union Leader
NEW JERSEY
BPU Approves $5.3M in EE to Reduce Demand
The Board of Public Utilities has approved $5.3 million in energy efficiency incentives that it said will enable several entities in the state to make investments expected to reduce annual power demand by 19.5 MWh.
The incentives will be provided through the state’s Clean Energy Program. The recipients are NJ Transit, Clement Pappas & Co., Eickhoff Supermarkets, Village Supermarkets, ShopRite, Grand LHN 1 Urban Renewal and New Jersey American Water.
More: New Jersey Board of Public Utilities
NEW MEXICO
Opposition Firms up as PNM Readies for Hearings
Public Service Company of New Mexico could face an uphill battle in its bid to win approval of a 14.4% rate hike from the Public Regulation Commission. The utility is seeking $123.5 million in additional annual revenue to recover capital investments since 2010 — the last time it requested a rate hike — and to offset a decline in sales.
Environmental and clean energy organizations, consumer advocates and industrial and institutional power users are lining up against PNM’s proposals, which the commission will review during two weeks of public hearings starting March 14.
Opponents say the company is seeking much more money than is justified and that the rate hikes will shift more system costs to residential and small consumers. Company executives say the rate request is critical to keep the grid running reliably without interruption.
More: Albuquerque Journal
NEW YORK
Cuomo Requests Another Indian Point Investigation
Gov. Andrew Cuomo ordered state agencies to ask FERC to immediatelyhalt construction of the Algonquin natural gas pipeline until a safety review is completed.
The FERC-approved pipeline would run close to the Indian Point nuclear plant, which has experienced several safety incidents in recent months, prompting the state to conduct its own investigation into the facility.
“Although the project applicant has agreed to more stringent construction measures near Indian Point, ongoing state investigations will assess the adequacy of these measures and may also reveal new information about the environmental, health and safety risks posed by the project’s siting,” the governor’s statement said.
More: Gov. Andrew Cuomo
Entergy: Bird Droppings Shut down Indian Point
Bird droppings likely caused the three-day shutdown of the Indian Point plant in December, according to plant owner Entergy.
The reactor shut down automatically when bird excrement apparently produced an electric arc between wires on a feeder line at a transmission tower, Entergy said in a report to the Nuclear Regulatory Commission. The company said it is revising preventive maintenance for additional inspection and cleaning and installing bird guards on transmission towers.
More: CBS
NORTH CAROLINA
Duke Gets OK for Two Natural Gas Plants in Asheville
The Utilities Commission has approved Duke Energy’s plan to build two new natural gas-fired units at its coal-fired power plant in Asheville. The company was denied permission for a third gas unit intended for use as a backup peaker.
The commission did not address the estimated $1 billion cost of construction, which is likely to be passed through to customers.
In its ruling, the commission also ordered Duke to consider retrofitting four coal-burning units at the company’s Roxboro plant to improve efficiency.
More: The Charlotte Observer
SOUTH DAKOTA
Bill Would Spread Wind Revenue Throughout State
A state task force charged with increasing teacher salaries has proposed legislation that would distribute tax money collected from wind farms to school systems throughout the state, rather than allowing the jurisdiction hosting a facility to keep all the revenue. Critics contend the bill would dampen incentives for localities to site wind farms.
The redistribution plan is being proposed alongside a separate increase in the state’s sales and use tax. Both pieces of legislation would blunt wind farm development in the state, critics say.
“I see more projects going into North Dakota, Minnesota and Nebraska than here,” said Steve Wegman, who recruits investors for state wind projects. “Raise the tax and nobody will build. End of story.”
More: Midwest Energy News
TEXAS
EPE, El Paso City Council Agree to $37M Rate Hike
El Paso’s city council has agreed to grant El Paso Electric a $37 million rate hike, about 8% above current rates. The increase is $44.5 million less than the original $71.5 million request, which was revised down to $63.3 million in January.
Under the proposed settlement, EPE’s West Texas residential customers would see monthly bills rise an average of almost 10%, while bills for small commercial customers would increase by about 3%. The rate settlement would also implement a surcharge of up to $11/month for residential customers who have installed or applied to install rooftop solar systems after Aug. 10, 2015, a provision being challenged by solar organizations and the state’s consumer advocate.
The agreement is still subject to approval by the Public Utility Commission.
More: El Paso Times
VIRGINIA
McAuliffe’s Vetoes Bill Giving Legislature CPP Authority
A bill that would have given the General Assembly control over implementation of the federal Clean Power Plan mandates was vetoed by Gov. Terry McAuliffe.
The governor said the bill represented an “impermissible breach of Virginia’s constitutional separation of powers.” He said the power to delegate such environmental power properly goes to the state’s Department of Environmental Quality. “This process rests squarely in the executive branch of state government,” not the legislative, McAuliffe said.
Lawmakers are crying foul, however. The impact of the federal mandates “impacts far too many Virginians to be left to unelected bureaucrats,” said one Republican lawmaker.
More: Richmond Times-Dispatch
County Urges Dominion to Reconsider 230-kV Tx Line
Culpeper County’s Board of Supervisors is urging Dominion Virginia Power to re-examine its plan to construct a 38.1-mile transmission line between Remington and Gordonsville. The board is concerned about property values along the line and the effect on landowners where a wider right of way will be needed.
Dominion plans to upgrade an existing link between the towns with a 230-kV line on 106-foot monopoles that are nearly double the height of the existing poles. The county board also voted 6-1 to become an official respondent in the case before the State Corporation Commission, making it eligible to later intervene in opposition if necessary.
The project is slated for completion in 2019.
More: The Daily Progress
WISCONSIN
Bill Would Cut Funding For Energy Efficiency
A bill that aims to cut “double charging” to fund state energy efficiency programs through both wholesale and retail electricity sales would slice about $7 million from the Focus on Energy program.
The bill, which passed the State Assembly and is currently before the State Senate, aims to recalculate how funds are collected by limiting charges to just retail sales. While lowering the costs customers pay directly, energy efficiency proponents say those customers will lose out on benefits of the program.
“This change is going to hurt customers; they’ll have less opportunity to take advantage of the programs that Focus on Energy offers, and those programs help customers lower their bills,” said Mitch Brey, campaign organizer of the citizen group RePower Madison.
More: Midwest Energy News