State Reviewing Company’s Plan to Use Corn-Based Ethanol at New Plant

State environmental officials have agreed to a special review of a company’s plan to make ethylene oxide at a proposed riverfront plant south of Wilmington rather than import the hazardous chemical on rail cars from Gulf Coast refineries.

Croda, a specialty chemicals producer, wants to build a new processing unit at its Atlas Point plant near the Memorial Bridge to convert corn-based bio-ethanol, or alcohol, into ethylene oxide. Croda uses ethylene oxide as a raw material in it production process. The $170 million project could provide 200 temporary jobs and up to 80 permanent ones.

The plan needs a review under the state’s Coastal Zone Act, passed in 1971, which prohibits industrial use of land near the Delaware River, Bay or coastline, and limits use at existing plants.

More: The News Journal

ILLINIOIS

Regulators Give OK to Rock Island Clean Line

The Commerce Commission unanimously approved an ambitious direct-current transmission line to deliver power from Iowa wind farms, putting the $2 billion Rock Island Clean Line one step closer to construction.

The 500-mile line, proposed by Clean Line Energy Partners, is the first merchant-owned transmission project approved by the ICC. The project, which advocates say would cut energy prices and help the state meet renewable energy goals, still needs approval from Iowa, where the line would cross 16 counties and local opposition is forming.

But in Illinois, even the Sierra Club endorsed the line. “The project will deliver pollution-free power to Illinois homes and businesses and create good jobs in clean-energy technologies,” said Jack Darin, director of the Illinois chapter of the Sierra Club.

More: The Chicago Tribune (subscription required)

Senate Approves Ameren, Com Ed Smart Grid Rate Plan Extension

The state Senate approved a plan that will allow Ameren Illinois and Commonwealth Edison to raise rates to pay for smart grid improvements through a formula, bypassing potentially lengthy rate-setting procedures with the Commerce Commission.

The legislation extends a law allowing the two companies to recover money used to bolster grid reliability, including paying for smart meters. The rate provision is set to expire at the end of 2017, but the bill approved in a 40-4 Senate vote would extend that through 2019. Gov. Pat Quinn, whose veto on the original smart-grid law was overridden, could veto the current legislation too. Legislators have already been sent home for the session, so it’s unlikely the body would have an opportunity to override a veto this time.

A consumer group, the Citizens Utility Board, opposed the extension. “We’ll be talking to the governor about our concerns,” said David Kolata, the board’s executive director.

More: St. Louis Post-Dispatch

INDIANA

Co-ops and IOUs Want to Block Munis from Gaining Through Annexation

A turf battle is brewing in the state between municipal electric providers and rival distribution companies.

Rural electric cooperatives and some investor-owned utilities are backing a legislative proposal to block municipal providers from expanding service into territories newly annexed by their cities and towns. Co-ops control about 80% of customers in the state and want to make sure they don’t lose any customers as municipalities push out their borders.

A 2002 law allows municipals to petition the state Utility Regulatory Commission to take over systems in annexed territories. But Sen. Mike Crider is working on a bill to limit the ability of municipal providers to expand. Municipal operators, who now control about 7% of the market, question the need for such a bill. “I haven’t seen cities all of the sudden taking their territory,” Columbia City Mayor Ryan Daniel said. “This sure seems like a monopolistic situation.”

More: The Journal Gazette

MARYLAND

Gov. O’Malley Says He’ll Set Rules for Fracking Before Leaving Office

Outgoing Gov. Martin O’Malley said he will propose strict regulations for natural-gas development in Western Maryland before he leaves office. The O’Malley administration, which issued a draft report on Marcellus Shale drilling, said it is preparing regulations using “best practices” from other states, including restrictions on drilling locations and rules to limit water and air pollution.

The report gives guarded approval of the viability of fracking in the state, saying that “the risks of Marcellus Shale development can be managed to an acceptable level. Some of the proposed best management practices have not been tested, and although we are confident that they will reduce the risks, some risks will remain, as is the case with all industrial activities.”

Governor-elect Larry Hogan said he favors gas development in “an environmentally sensitive way,” but environmentalists are concerned that he will loosen some of the restrictions when he takes office. “The fact that we have a governor-elect who wants to move forward on fracking means we want to get some protections in place as soon as possible,” said Karla Raettig, executive director of the Maryland League of Conservation Voters.

More: The Washington Post

MICHIGAN

UP Residents on Hook for Higher Fees to Pay for Presque Isle Plant Output

Upper Peninsula electric customers this month began paying most of the $97 million in annual costs to keep the Presque Isle power plant in Marquette operating.

Grid operator MISO ordered We Energies of Milwaukee, which owns the plant, to keep it operating to maintain grid reliability. We Energies had threatened to shut the plant after it lost several large industrial customers to competitors. We Energies customers in Wisconsin successfully petitioned FERC to be excluded from obligations to cover the plant’s cost, shifting the burden to customers on Michigan’s Upper Peninsula, who are protesting.

More: Milwaukee Journal Sentinel

Widespread Power Outage Points to Need for Grid Improvements in Detroit

A major cable failure on Detroit’s waterfront left a large swath of the city’s buildings and traffic signals without power for most of a day just before Thanksgiving, illustrating the need to update the aging municipal system’s infrastructure.

A cascade of failures of the city’s Public Lighting Department system caused schools to close, hospitals to divert patients and the Wayne County Jail to use emergency backup power. The lighting department, which distributes power to 890 public buildings, five multi-unit apartment buildings, 1,000 traffic lights and public emergency communications systems, is undergoing a $200 million four-year upgrade financed by DTE Energy, which will take over the municipal system.

“Everybody is aware the system has not gotten the attention it needed over the past several decades because of the city’s ongoing financial problems,” DTE Spokeswoman Randi Berris said. “One of the key reasons why this migration is happening is because DTE can provide the reliability and affordability to the customers that are on the system.”

More: The Detroit News

NEW JERSEY

Lawmakers Craft Bills to Protect Customers from Crafty 3rd Parties

State lawmakers are considering a three-bill package that would tighten regulation of third-party energy providers in response to consumer complaints about dramatic spikes in energy charges during last winter’s extreme cold.

The legislation would require a more understandable explanation of prices from different suppliers, allow customers to switch providers with 30 days’ notice and force the development of a standard, easy-to-read contract. The legislation mirrors the administrative efforts of the Board of Public Utilities to enact tighter regulations on suppliers.

“There needs to be more transparency in the process,’’ said Assemblyman Tim Eustace, a co-sponsor of the package. “We want consumers to continue to make their own choices with clear rules and regulations in place to guard residents who enter into these contracts with chosen suppliers.”

More: NJ Spotlight

NORTH CAROLINA

McBride Energy to Build 80-MW Solar Project near Concord

The state Utilities Commission gave McBride Energy Services permission to build a $200 million, 80-MW solar plant near Concord, the latest commercial solar project to win approval in North Carolina.

The proposed McBride Place Energy Project could be operational by the end of next year. If so, it could qualify for tax credits and depreciation allowances totaling more than $100 million. McBride, which has concentrated on much smaller projects in the past, is searching for a buyer of the power.

More: PV Magazine

OHIO

AEP Gets Hearing on Bid for Guaranteed Return

The Public Utilities Commission has granted American Electric Power a special hearing on Dec. 17 so the company can explain why it thinks it should get a guaranteed rate of return, funded by ratepayers, on one of its merchant plants.

AEP told the commission earlier this year that it wants ratepayers to cover any above-market costs of its coal-fired Kyger Creek plant. Customers would also get a credit if the plant generated excessive returns. AEP says it needs the guarantee to keep the plant in operation to support the regional power grid. Environmentalists and consumer advocates say it’s an unneeded subsidy that would prolong the life of a coal plant.

AEP’s filing is considered a test for the commission. FirstEnergy and Duke Energy have also filed requests for rate guarantees for marginal power plants. The commission has delayed ruling on AEP’s request, which was initially filed nearly a year ago.

More: EnergyCentral

State Gas, Oil Production Shows Steady 3rd Quarter Increase

Wells tapping into the state’s oil and shale gas fields produced 3 million barrels of oil and 132 billion cubic feet of natural gas during the third quarter, according to a state report issued last week. That’s an increase of about half a million barrels and 43 billion cubic feet over the previous quarter. The success rate of wells drilled is impressive as well, according to the report. Out of 717 wells drilled in the state’s Utica and Marcellus shale formations, 674 are producing.

More: The Columbus Dispatch

PENNSYLVANIA

PGW Deal Dead After UIL Pulls Out in Face of City Council Opposition

UIL Holdings, the company that agreed to pay $1.86 billion to buy the city-owned Philadelphia Gas Works, said Thursday it was pulling out of the deal because of opposition from the city council. Not a single member of the council stepped forward to introduce Mayor Michael Nutter’s legislation to approve the sale, which was required for the deal to conclude.

“We are extremely disappointed that no ordinance was introduced to approve the acquisition, and we’re equally disappointed that we were not afforded a hearing to present the facts regarding our bid proposal,” UIL President and CEO James P. Torgerson said.

The announcement triggered a flurry of finger pointing.

“The citizens of our city, the customers of PGW and our own city workers will feel the negative effects of this terrible indecision for years to come, and ultimately will regret that city council chose to end a legitimate debate on this issue even before it started,” Nutter said.

Council President Darrell L. Clarke blamed the mayor for the deal’s demise. “Once again, the Nutter administration has learned that the birthplace of American democracy has little tolerance for sweeping policy decisions made unilaterally with no input from the public,” he said.

More: The Philadelphia Inquirer

86-Year-Old Woman Killed After Gas Explosion

An 86-year-old woman from Dunmore was killed early Thursday by an explosion that destroyed her home as she waited on her porch for somebody to pick her up after a gas leak was reported in the area.

A water main break had been reported in the area when residents detected the odor of gas. Emergency responders were organizing an evacuation when the explosion destroyed several buildings. Madlyn Mecca, who had called for somebody to come get her, died when her home exploded as she waited, according to neighbors.

UGI, which provides gas service in the Scranton suburb, was investigating the deadly explosion.

More: The Scranton Times-Tribune

VIRGINIA

State Regulators Approve ‘Standby Fee’ for Using Solar

The State Corporation Commission has approved a plan for Appalachian Power to charge home solar users a fixed charge of up to $100 a month to reflect their use of the energy grid, no matter how much net power they consume from the distribution system.

The plan would only apply to homeowners whose solar setups produce more than 10 kW. An Appalachian spokesman said only five customers would be affected. The idea is to charge those customers whose solar arrays put power back into the grid for resale, offsetting their own energy consumption. The utility argued that such customers should pay for the use of the grid.

More: NewsMax