CAISO is proposing to amend its Tariff to expand the definition of a “load-serving entity” to include any organization granted authority to serve its own electricity needs.
The Tariff currently recognizes as LSEs only those entities that sell electricity or serve load to end users, a description that covers utilities, federal power marketing agencies and community choice aggregators. A special exception was made for the State Water Project (SWP), a California agency that directly engages the wholesale market to cover its own energy requirements.
CAISO is seeking to expand the definition of an LSE to accomodate San Francisco’s Bay Area Rapid Transport agency. Source: Bart
The ISO is seeking a broader definition to accommodate the San Francisco Bay Area Rapid Transit District (BART), which, like the SWP, serves its own load but does not meet the standard definition of an LSE.
“We’ll see what other entities will participate under this definition, but we’re not sure there are any at this point,” Perry Servedio, senior market design and regulatory developer at CAISO, said during an Aug. 23 stakeholder call to discuss the proposal.
At the end of the year, BART’s transmission contract rights on the Pacific Gas and Electric network, which predate the existence of the ISO, will expire. Those rights will convert to CAISO service, leaving the agency exposed to congestion charges.
For a recognized LSE facing a similar circumstance, CAISO provides a remedy: The LSE can cover its exposure by seeking an allocation of congestion revenue rights (CRRs) in the initial round of the ISO’s annual allocation process. The ISO treats the expiring contract rights as if they were expiring annual CRRs.
But that process is not available to BART.
As an interim measure, CAISO last month filed with FERC to seek another temporary exception to the definition in order to enable BART to participate in this fall’s 2017 CRR allocation (ER16-2327).
By expanding the definition, the ISO hopes to eliminate the need for one-off exceptions. The revised Tariff would categorize BART and SWP as LSEs “granted authority pursuant to California state or local law, regulation or franchise to serve their own load.”
The amended language sent up red flags for some stakeholders, who worried that any California entity granted such authority would qualify as an LSE and therefore be required to procure adequate reserves to support their load.
Ernie Hahn, senior resource manager with the Metropolitan Water District of Southern California, said his agency is concerned about what the change would mean upon expiration of its transmission contract rights with Southern California Edison.
“This came out of the blue and we’re a little distressed by it,” he said. “We don’t understand what the [resource adequacy] implications will be.”
“Our intent is not to require entities to do this,” said Brad Cooper, CAISO senior manager of market design and regulatory policy. “To the extent that there’s an arrangement like yours, you’re not considered an LSE.”
But David Zlotlow, CAISO senior counsel, confirmed that the district would face the requirement once its contract expires.
“I object to the change because you haven’t given us enough time to prepare for the [resource adequacy] requirement,” Hahn said. He encouraged the ISO to make an “incremental change” to the definition, similar to the SWP exception.
“When I read this, it suggests to me that entities serving load behind the meter will get captured by this,” said Steven Kelly, director of policy at the Independent Energy Producers Association.
“A day or two ago, in anticipation of this call, we had that same thought,” Zlotlow said. “There might be a word or two to add to this definition.”
“Do storage devices or pumped storage qualify as LSEs because they serve their own load?” asked Mark Smith, vice president at Calpine.
“No, because they’re not serving end users, they’re just sending back to the grid,” Zlotlow replied.
Jan Strack of San Diego Gas & Electric said the change raises questions about what entities are affected, and how.
“I think you need to be sort of thoughtful about how wide this net gets thrown,” Strack said.
“We definitely want to hear from you if we’re missing something with this definition — or if we need to tighten it up,” Servedio said.
Stakeholder comments on the proposal are due Sept. 2. ISO staff plan to submit the changes for board approval in October.
WILMINGTON, Del. — PJM officials have gained support for a new method of releasing excess capacity, but told the Markets and Reliability Committee on Thursday they were not sure the plan is ripe for a stakeholder vote.
The RTO procured 10,017 MW of new capacity commitments in the Capacity Performance transition auction for delivery year 2017/18. PJM’s Jeff Bastian told the MRC the capacity would likely clear at $0 in February’s third incremental auction under current rules — a price PJM and stakeholders agree would ignore the reliability benefits of retaining the capacity.
Direct Energy and NextEra Energy — which had proposed their own formulas last month — said they supported PJM’s proposal, under which the RTO would retain more capacity at lower prices but release more at a higher price. The plan would release excess capacity on an upward sloping trajectory, ranging from 0 MW at $10.74/MW-day to all 10,017 MW being available at $144/MW-day.
The PJM Industrial Customer Coalition also said Thursday it supports the change.
Direct Energy’s Jeff Whitehead said PJM should bring the issue to a vote at the Market Implementation Committee next month. He said he plans to introduce a problem statement to consider capacity releases for future years.
Whitehead said it is very difficult to quantify the additional reliability value of the excess capacity. “We could end up in analysis paralysis,” he said in pushing for an MIC vote. “We’ve been discussing this for a while.”
Gabel Associates’ Mike Borgatti, representing NextEra, said the PJM proposal has “evolved” and that although it differs from NextEra’s proposal, “we’re comfortable with this.”
But other stakeholders expressed reservations, and PJM’s Chantal Hendrzak, the MIC chair, said, “I don’t know that we’re quite ready” for a September MIC vote.
PJM, which must file its plans for releasing the capacity with FERC by November, first outlined its plan before the MIC earlier this month. (See “Proposal Would Set Higher Prices for Capacity Released in 3rd I.A. for 2017/18,” PJM Market Implementation Committee Briefs.)
In the third incremental auction for the 2016/17 delivery year, PJM offered 4,818 MW at $0/MW-day but cleared 4,556 MW at an average price of $4.79/MW-day, Bastian said.
Using the same formula for 2017/18, Bastian said, the excess “could well clear at zero.”
Calpine’s David “Scarp” Scarpignato asked if the sale could be isolated from other transactions during settlement to identify the impact on costs. Bastian said a simulation might be possible, but he wouldn’t commit to it.
Jeffrey Levine of ENGIE asked if PJM would consider a stepped offer curve instead of the straight-line slope the RTO proposed.
“Yes,” Bastian responded. “This is a stakeholder process.”
Gary Greiner of Public Service Enterprise Group also questioned PJM’s curve. “I don’t think that ‘let’s start at $10.74 because that’s what we paid for it’ is a good strategy,” he said.
But supporters of the PJM proposal said it would be a step backward to consider different shaped curves.
“We are comfortable with the proposal as presented here today,” said Susan Bruce, an attorney representing the PJM Industrial Customer Coalition. “I am a little uncomfortable at the ideas of new curves being” proposed.
“I’m not in a position to argue curves,” said Dan Griffiths, executive director of the Consumer Advocates of the PJM States. He said the debate highlighted a bigger concern for ratepayers — PJM’s systematic over-procurement. “From way too much [capacity] we’re trying to figure out how to get back to just too much,” he said.
Independent Market Monitor Joe Bowring made a pitch for his proposal to not release any of the excess, suggesting any release could suppress prices.
No matter the outcome of the release, it will likely incite second-guessing, said Jason Cox of Dynegy: If the price is high, critics will ask why wasn’t more capacity offered; if it’s low, why wasn’t less offered?
“PJM’s in a really tough spot,” he said.
Revisions Proposed to Cost Development Procedures
PJM’s first read of its proposed fuel-cost policy revisions generated little discussion at the MRC.
But Bowring predicted the proposal is “very likely to be changed by FERC” because it gives PJM, rather than the Monitor, the power to approve or reject generators’ policies. That, Bowring said, would violate the RTO’s Tariff.
Bowring also said the revisions, to be contained in Manual 15, were “stretching” the definition of a market seller.
PJM says it will bring the proposal to an MRC vote in September contingent on FERC’s approval of its related Aug. 16 compliance filing on implementing hourly offers.
PJM’s Jeff Schmitt also presented the MRC with changes resulting from a biennial review of Manual 15, which are expected to be brought to a vote in September.
Metering Standards Ready for Stakeholder Vote
After identifying gaps in understanding between staff and members on metering procedures, PJM has developed a proposal that would substantially rewrite the Manual 1 language that governs metering.
The “high level of the high-level” changes proposed focus on the definition of accuracy and how to achieve it in every metering capacity, PJM’s Ryan Nice said.
To the make the plan “palatable” to members with decades-old infrastructure, PJM is proposing a “tuned-up” grandfather clause. (See “Metering Task Force Presents Proposal to Improve Clarity,” PJM Operating Committee Briefs.)
All equipment installed after the publication of the manual would be required to be fully compliant with the new metering standard. Equipment installed earlier than 1997 would be exempt from the new requirements. Equipment installed after 1997 but before the manual’s publication would have to meet all but a few requirements.
Stakeholders will be asked to endorse the changes at the September MRC.
Manual Changes Approved
The MRC unanimously endorsed the following manual changes:
Manual 12: Balancing Operations. Administrative and conforming updates align with NERC reliability standard BAL-001-02, which went into effect July 1, and with the frequency bias calculation in BAL-003-1.
Manual 14D: Generator Operational Requirements. Changes include updates to the cold weather generation resource preparation section. Amends cold weather testing process effective with winter 2016/17. Generators that cleared as Capacity Performance in the current delivery year will no longer be eligible for compensation for conducting the exercise but may test and receive compensation as a self-scheduled resource. (See “PJM Plans to End Compensation for CP Units Participating in Winter Testing,” PJM Operating Committee Briefs.)
FERC ruled last week that PJM transmission owners’ procedures regarding supplemental projects are not in compliance with Order 890, directing the TOs to file revisions within 60 days (EL16-71).
“As implemented, the transmission planning process governed by the PJM Operating Agreement is not providing stakeholders with the opportunity for early and meaningful input and participation in the transmission planning process, as required by Order No. 890,” the commission said.
The commission cited complaints by Old Dominion Electric Cooperative and American Municipal Power concerning the TOs’ handling of supplemental projects — those not required for compliance with PJM’s reliability, operational performance or economic criteria, and not state public policy projects.
“Based on the comments received at the technical conference, it appears that some PJM transmission owners are conducting significant local transmission planning activities before the need for a supplemental project is brought to PJM for discussion in the stakeholder process,” the commission said. “In addition, certain of the PJM transmission owners appear to be identifying — and even taking steps toward developing — supplemental projects before providing any opportunity for stakeholders to participate in the development of those projects through the PJM [Regional Transmission Expansion Plan] process.”
The commission said the TOs must either propose revisions to the PJM Operating Agreement, revise their portions of the PJM Open Access Transmission Tariff or their individual Open Access Transmission Tariffs, or show cause why they should not be required to do so.
“Assuming that the PJM transmission owners file revisions to the OATT, we estimate that the commission would be able to issue our decision within approximately three months of the filing of such revisions,” FERC said.
200-kV Threshold Approved
In a separate order, the commission approved PJM’s proposal to exempt reliability upgrades on facilities below 200 kV from competitive windows under Order 1000 (ER16-1335).
PJM said such projects are almost always assigned to incumbent developers, and the change would enable its engineers to focus on problems more likely to result in a competitive greenfield project. (See “Low-Voltage Projects to be Exempted from Competitive Window Process,” MRC & Members Committee Briefs.)
The commission limited the exemption to projects within a single transmission zone, saying those involving two or more zones must be opened to a proposal window.
FERC also required PJM to clarify how it will identify transmission solutions for reliability violations on facilities below 200 kV. It said PJM must also provide it with reports on those projects for the next two planning cycles to enable the commission to monitor its implementation of the process.
MISO’s average load during July was 87.9 GW, 4.8 GW more than June and about the same as last year, said Shawn McFarlane, executive director of strategy and enterprise risk management, during an Aug. 23 Informational Forum.
McFarlane said July temperatures were close to normal. Load peaked at 120.7 GW on July 21 during a maximum generation warning. (See “June Energy Prices Up Across Footprint; New Emergency Pricing Encounters Snag in July,” MISO Informational Forum Briefs.)
Systemwide, MISO experienced average July prices of about $30/MWh, about $1/MWh more than last July.
Price convergence in July was the lowest it has been in a year, with a 22.5% difference between real-time and day-ahead prices. At this time last year, there was an average 14.8% divergence. Collections for day-ahead market congestion, at $80.26 million for July, were also at their highest level in a year.
Wind generation contributed 4.3% of total MISO electricity production (2,457 GWh), 661 GWh less than June’s 6% share but more than in July 2015, when wind contributed 3.3% (1,975 GWh).
Queue Reform
Stephen Kozey, senior vice president for compliance services, said MISO will make a revised generator interconnection queue reform filing by the end of October. FERC rejected MISO’s proposed queue changes in March, saying they assumed the current backlog could be blamed on “speculative” projects and failed to consider other potential factors (ER16-675). (See MISO Queue Changes on Hold Pending Technical Conference.)
Kozey also reminded stakeholders that MISO has pushed back implementation of a separate, three-year forward capacity auction for retail-choice areas to the 2018/19 planning year. He said MISO now plans to file in early November. (See MISO Delays Forward Auction Filing; Issues Draft Tariff and Business Rules.)
FBI Agent Informs Stakeholders on Cybersecurity Threats
Special Agent Michael Alford, of the FBI’s Cyber Division, said cyberterrorists, foreign governments and hacktivists most often attack critical energy infrastructure, in what he called a general cybersecurity “declassified briefing” at the Informational Forum.
Alford said hacktivists will sometimes target energy companies over proposed pipelines and development, while foreign governments conduct intrusions for espionage. He said according to the FBI, the energy grid is increasingly becoming a prime target for cyberattacks.
Alford said cyber threats can begin with a single attacker contacting an employee that they’ve performed “Internet reconnaissance” on. He told attendees to be mindful of the information shared on their social network profiles, as hackers will use the pages to gain employee information.
“If you have a LinkedIn account, that’s fine, but be aware that could be used against you,” Alford said.
He said the “end goal” of IT administrators should be to have a good log-in and password system and maintain it.
“You can throw tons of money at a system and make it secure, but that’s not always needed,” Alford said, noting that different departments at the same business need different levels of security.
Alford said utility employees shouldn’t hesitate to report cyberattack suspicions to either local law enforcement or the FBI.
“If you see something, report it, because you’re probably not the only one they’re attacking,” Alford said, adding that state-sponsored attacks often target several businesses or organizations simultaneously.
Responding to policy initiatives from Washington and Albany, NYISO last week released a “road map” for integrating distributed energy resources that seeks to build on the grid operator’s existing markets and demand response programs.
The ISO said the draft report was a response to the New York Public Service Commission’s Reforming the Energy Vision initiative, and FERC Orders 719 and 745, which require the ISO to give DR greater access to real-time markets. NYISO says it provides a framework for market rules that will be developed over the next three to five years to implement the state and federal policies.
Demand Elasticity
NYISO said it agrees with the PSC that DER “can make load more dynamic and responsive to wholesale market price signals.”
The PSC says DER can improve system efficiency if their value is properly reflected in retail and wholesale markets and if utilities are incented to consider them as alternatives to traditional capital investments. The commission envisions the creation of distribution system platform (DSP) providers that plan, operate and administer markets for distribution-level services.
NYISO said REV is largely consistent with how the ISO “administers wholesale markets, plans for bulk system needs and operates the grid.”
Competitive wholesale markets, the ISO notes, were designed in part to facilitate demand-side elasticity. “For a variety of reasons, ranging from the economics and limitations of enabling technologies, this demand elasticity has failed to materialize to a significant degree.”
But with improved technology and economic models, NYISO said, integrating DER into the wholesale markets could “build upon the efficiencies already realized under competitive wholesale market structures.”
‘A Desire to Participate’
The ISO said its new rules will accommodate “controllable resources with various capabilities and a desire to participate in the wholesale markets.”
The report says DER will be incented through economic dispatch and real-time locational prices “that [align] compensation with system requirements.”
“The NYISO intends for the DER program to align incentives and compensation based on the flexibility and measured performance of the DER (or aggregation), and market clearing prices based on the needs of the system. The intent is to treat DER comparably with other supply resources participating in the NYISO’s energy, capacity and ancillary services markets.”
DER participating in the capacity market will be required to offer into the energy and ancillary services markets “for all or a portion of the day, depending on the business model and capabilities of the DER.”
Changes Needed
The ISO said integrating DER will require changes to market design, system planning and grid operations.
“Realizing this goal will require an examination of DER performance obligations, operating characteristics, metering and telemetry requirements, measurement and verification of baselines and performance, market modeling, and an understanding of how to balance the simultaneous participation of DER in retail/distribution-level programs as well as the NYISO’s competitive wholesale market.”
A particular concern will be ensuring accurate load forecasts and metering.
DER will be required to provide data quality equivalent to the “Point Identifier1” metering used by large generators, with “real-time supervisory control and data acquisition (SCADA)-quality or better telemetry data for operations and monitoring functions, and after-the-fact revenue-quality meter data from individual resources for measurement and verification and settlements.”
These measurement and verification services may be performed by distribution service platform providers.
DR = DER
Going forward, NYISO said it will consider all DR as DER.
Source: NYISO
The current Special Case Resources program “has proven to be a valuable tool for planners to project load forecasts and for operators to manage system reliability” and will be retained, albeit “with potential modifications,” the report says.
The Emergency Demand Response Program and Price Capped Load Bidding also will continue. But the current Day-Ahead Demand Response and Demand Side Ancillary Services programs would be replaced.
The ISO says the report is only a beginning. “Implementing the DER initiative will entail considerable time, effort and stakeholder engagement. This road map represents a starting point for initiating discussions that will lead to further refinement on key market design elements, functional requirements and tariff language necessary to implement the vision.”
AUSTIN, Texas — Acting on a request from Texas Gov. Greg Abbott’s office, ERCOT has drafted a revision to its planning guide requiring energy developers to notify the Department of Defense of any projects near military installations.
The planning guide revision request (PGRR 047) was unanimously approved by ERCOT’s Technical Advisory Committee last week and will be considered by the Board of Directors during its Oct. 11 meeting.
The revision requires developers seeking an interconnection agreement to include among their materials a signed affidavit that they have notified the department of its proposed project and requested its review. The declaration only requires the initiation of an informal review, not its completion.
The proposed change is in response to requests by the governor’s office and the Defense Department to require that any proposed construction covered under existing federal regulations “confirm that they have provided notice and obtained review from the [Federal Aviation Administration] and DOD to the extent required under federal law.”
Current federal regulations require any structure constructed above certain height limits (approximately 200 feet) or in proximity to military and civilian airports provide notice to the FAA and DOD siting clearinghouse.
Several projects have recently brought the issue of federal notification to the forefront.
Sheppard Air Force Base near Wichita Falls has said proposed wind developments nearby would interfere with its radar and flight training operations. A proposed wind farm near Corpus Christi in South Texas has drawn concerns that it could impact training missions at two nearby U.S. Navy airbases, despite FAA’s conclusion to the contrary. (See “FAA Stands by its Greenlight for Proposed Wind Farm,” Federal Briefs.)
Speaking before the Texas House of Representatives’ Defense and Veterans Affairs Committee on Aug. 24 in Wichita Falls, ERCOT Director of System Planning Warren Lasher said he wants to see “increased coordination and communication” between the military and wind energy developers to resolve conflicts. “This will ensure that all energy developers check with DOD well before” the developments are put into motion, he said, according to an account in the Times Record News.
The TAC ensured the proposed rule would only affect developments that are not already connected to the power grid. The committee set Nov. 1, 2016, as the effective date for the change, after staff tracked down Lasher at a Public Utility Commission of Texas meeting for his approval.
Related legislation is expected to be proposed when the Texas Legislature begins its 2017 session in January. A Wichita Falls representative is considering filing a proposal that would affect tax abatements for some wind projects near military bases, while a New Braunfels legislator has said she would intervene if an energy project endangered military missions, the Times Record News reported.
Changes in TAC Leadership
Last week’s meeting marked the end of Randa Stephenson’s tenure as TAC chair. Stephenson, of the Lower Colorado River Authority, was recently named the utility’s vice president of wholesale markets and support.
Stephenson said her new job came with additional responsibilities that would preclude her continued role as TAC chair. She said she was disappointed but would continue to participate through the end of the year.
“Are you really disappointed?” asked ENGIE’s Bob Helton, to peals of laughter.
Stephenson “has been a workhorse for the TAC process for many, many years,” said CPS Energy’s Adrianne Brandt, who was unanimously approved as Stephenson’s replacement. “She’s given us almost five years of TAC leadership. It’s a lot of work and a thankless job.”
Helton was unanimously approved as the TAC’s vice chair, replacing Brandt.
TAC Sends 16 More Change Requests to Board
The committee sent 16 other revision requests to the board, endorsing eight Nodal Protocol revision requests (NPRRs) and eight revisions to the nodal operating guide (NOGRRs), the planning guide and the retail market guide (RMGRRs). All but one of the requests passed unanimously.
In addition, the TAC tasked the Wholesale Market Subcommittee to develop a long-term solution for reliability-must-run mitigated offers after a related rule change failed on appeal last month at the committee and this month before the board (NPRR 784). (See “Board Rejects RMR Mitigated-Offer Appeal, Lets Stakeholder Process Move Forward,” ERCOT Board of Directors Briefs.)
“In our discussions with stakeholders, it seems there’s general support for a long-term solution gravitating around placing RMR offers last in the stack,” said NRG Texas’ Bill Barnes, who has championed the revision request.
The 16 revision requests approved are:
NPRR 753: Gives non-modeled generators the option of using the advanced metering system data submittal process and requires the installation of ERCOT-polled settlement meters to ensure the energy flows are reflected in real-time initial statements.
NPRR 760: Ensures that operating days with no activity are captured in the denominator for calculations of credit variables. It received two no votes and three abstentions.
NPRR 778: Changes competitive retailer rules regarding move-in or move-out date changes to prevent an inadvertent error. The change should eliminate two-thirds of manual interventions currently required.
A companion change, RMGRR 139, modifies market processes to align with NPRR 778’s proposed changes.
NPRR 779 and PGRR 048: Clarify references to the Texas Reliability Entity and the Independent Market Monitor. Current protocols refer to the Texas RE in both its capacity as the Regional Entity and the Public Utility Commission of Texas Reliability Monitor. The NPRR also removes the 24-hour deadline for ERCOT to notify the Reliability Monitor of a failure to provide ancillary services. The new language clarifies that the IMM is an included party in several provisions related to the ERCOT stakeholder process.
NPRR 782: Removes inconsistencies in protocol language by changing the equations governing the settlement of ancillary services. The change affects resources unable to deliver on their ancillary services obligations because of transmission constraints.
NPRR 785: Allows ERCOT to automatically prepopulate current operating plans (COPs) for wind and photovoltaic resources with the most recent forecast for the next 168 hours. Qualified scheduling entities representing these resources can either submit the prepopulated forecast as the COP by default or submit a lower number.
NPRR 786: Corrects the allocation of transmission losses, distribution losses and unaccounted-for energy (UFE) so that negative loads do not result in loss of UFE allocations.
NPRR 787: Removes the requirement that the qualified scheduling entity receiving a verbal dispatch instruction confirmation include the name of the individual that received the confirmation within the electronic acknowledgement.
NOGRR 150: Moves voltage-support obligation language to the Operating Guide so that the requirements are recognized as binding. It also allocates voltage-support responsibility to the appropriate entity, and clarifies that the ERCOT transmission operator has the authority to instruct a QSE to modify its resource’s voltage set point.
NOGRR 158: Modifies language in the nodal operating guide relating to limits on hydro resources’ responsive reserve to ensure consistency with NPRR 669.
PGRR 049: Removes the option to submit generation interconnection or change request (GINR) applications through standard mail or fax and updates the mailing address for GINR payments to the ERCOT treasury department.
RMGRR 134: Gives non-modeled generators the option to use the advanced metering system data-submittal process and clarifies processes for unregistered distributed generation versus registered non-modeled generators.
RMGRR 140: Removes the current date restrictions to give ERCOT increased flexibility when executing a competitive retailer’s acquisition of another retailer’s customers to prevent a “mass transition event.” The change will prevent end-use customers from being transitioned to provider-of-last-resort service and reduces associated uplift to the market.
RMGRR 141: Clarifies procedures during an extended unplanned system outage.
A Wisconsin wildlife hospital’s dispute with American Transmission Co. over its “Grandfather Spruce” tree will go to trial after a judge this month denied the utility’s motion to dismiss the case.
Yvonne Wallace Blane and Steven Blane, founders of Fellow Mortals Wildlife Hospital in southeastern Wisconsin, filed the lawsuit in June against ATC after the company proposed to clear-cut a 50-foot easement into the 5-acre wildlife sanctuary for a 138-kV transmission line.
On Aug. 15, ATC’s motion to dismiss the case was denied by Walworth County Circuit Court, which also imposed a temporary restraining order preventing the company from cutting any trees or applying herbicides on the hospital’s property pending a four-day trial scheduled for Oct. 10.
Fellow Mortals’ lawyer Robert Kennedy, of law firm Rizzo & Diersen in Kenosha, said he plans to argue that the 1970 easement — between the property’s previous owners and ATC predecessor Wisconsin Power and Light — is ambiguous and intends that trees should be cut only if ATC’s lines are in danger.
A Wisconsin animal wildlife hospital won a temporary injunction to block American Transmission Co. from clear cutting trees along its 138- kV transmission line. The hospital says the trees provide their animals a “buffer” from the weather and traffic noise from the adjacent road. A 100-year-old Norway spruce towers above younger walnuts and other trees in summer (left), and winter (right).
‘Tough Case’
“We have a very tough case ahead because in one interpretation, we have a 50-year-old easement that does state that ATC can cut down any trees they want,” Kennedy said. “Our argument is the trees do not pose a threat.”
Kennedy said if ATC is allowed to clear-cut, it’s “very likely” that Fellow Mortals would have to shut down the sanctuary.
“ATC does not think Fellow Mortals is unique enough to warrant an exception, yet wildlife rehabilitation itself is an endangered resource,” said Yvonne Blane, who first opened the hospital with her husband, Steven, from their home in the mid-1980s before selecting the current location in 1994.
According to Blane, there were 229 licensed wildlife rehabilitators in Wisconsin in 2001; today there are 110. “Honestly, there aren’t a whole lot of wildlife hospitals like us left,” Blane said.
Blane said Fellow Mortals’ acreage used to be part of a farm that was split up following a house fire. “That simple farmer signed that easement so long ago because he had a kind heart. I don’t think he ever dreamed this would have happened,” she said. “I don’t think people think about easements, and this is a cautionary tale. Never ever find out later what contracts are tied to your property.”
Blane said she receives a letter from ATC “every few years” notifying them of trimming. Near the first of the year, Blane said she received another letter and assumed it was for routine trimming. “We worked with them in the past, and they’ve always been great,” she said.
However, Blane said she woke up one morning in February to see the area partitioned off with orange tape and blue X’s spray-painted on several trees.
“It’s a tremendous amount of wildlife habitat that they could be destroying,” said Kennedy, who first came across the hospital years ago when he brought in two orphaned woodchuck cubs.
Vegetation Management Plan
ATC says its vegetation management plan will minimize service interruptions and create access for maintenance, and that pruning trees, as has been done in the past, is less efficient than cutting the tall-growing vegetation on a regular rotation.
Aerial view of Fellow Mortals Wildlife Hospital Source: Google Maps
The company, which spoke to local media earlier in the dispute, is no longer commenting because of the litigation. Spokesperson Alissa Braatz would only say that the company is “removing all incompatible vegetation from the easement area for safety and reliability purposes.”
The Blanes say that mature trees and dense undergrowth on the easement are necessary to provide the animals a buffer against wind, snow and noise from the adjacent road.
They also say they are willing to pay for trimming. An estimated 100-year-old Norway spruce, or “Grandfather Spruce” as Fellow Mortals staff refer to it, has been periodically trimmed for the nearly 50 years the easement has been in place, most recently in 2009.
“The idea is to keep these animals segregated from humans as much as possible,” Kennedy said.
The Blanes posted photos on Facebook to show the spruce in winter, when it “alone buffers the wind and snow and noise and provides screening and privacy” for the wildlife. There is additional cover from young walnut trees and other vegetation “during the busy summer months, when traffic on rural Palmer Road is nearly constant,” they wrote.
Hawks, Woodchucks and Deer
Unlike other animal rescue facilities that transfer wildlife elsewhere for care and rehabilitation, Fellow Mortals keeps its animals from the time they are admitted to when they’re released. Over the years, its patient list has included owls, hawks, rabbits, woodchucks, beavers and deer. The Blanes and their small staff have treated 1,400 animals so far in 2016.
Blane said the hospital treats about five large birds per year, including cranes that are admitted with leg fractures from colliding with transmission lines. She said the hospital has spent about $25,000 in donations so far on the case, and she regrets it can’t be spent on the “hundreds” of animals currently in the hospital’s care.
“We bought [the property] for the trees and the location,” Blane said. “Everything has been built around the property we chose. We were offered other property for free and turned it down. We created a very special place here that we thought would be around for a long time.”
Room for Settlement?
The couple argues that no power interruption incidents have ever occurred on their premises.
According to the Blanes, the spruce was recently examined by a certified master arborist and given a low risk of falling. Kennedy said he is prepared to call on a tree expert who can testify the spruce is “solid as a rock” and any weather event that causes the tree to fall would also cause severe damage to ATC’s lines.
Their attorney says the only suggestion ATC has offered Fellow Mortals in the dispute is not much of a compromise: The company has offered to plant low-lying vegetation after the trees are removed. Kennedy says that is not an option.
“We would accept some trimming, but we have pictures of the clear-cutting they’ve done in other places. It looks like a Brontosaurus rampaged it,” he said.
“There’s no question that it’s more profitable for ATC to clear rather than trim periodically. If you clear-cut, you can wait 20 years before sending crews back out. But it’s a cost-saving measure on the backs of all these landowners with nice forested areas,” Kennedy said.
Town Weighs In
The hospital’s online petition protesting ATC’s plans has gathered more than 86,000 supporters, nearing their 90,000 goal. It also gained an ally in the town of Geneva, which has an ordinance that requires town approval for all tree cutting and sharply restricts clear-cutting.
“As I am sure you are also aware,” Town Attorney Richard W. Torhorst wrote in a June 9 letter to ATC, “the Federal Energy Regulatory Commission takes the position that best practices relating to vegetation management does not require clear-cutting along the right of way.”
ATC attorney Christopher Zibart fired back with a letter the following day saying that the company recognized the state Public Service Commission — and not the town — as having “the authority to regulate this core public utility function.”
Street view of Fellow Mortals Wildlife Hospital Source: Google Maps
Zibart also swatted away Torhorst’s reference to FERC, noting that ATC’s line X-55 is below FERC’s 200-kV voltage threshold.
“In any event, the FERC does not manage specific vegetation practices and has stated that it does not ‘mandate nor prohibit’ removal of trees,” Zibart continued. “Where, as here, the specific trees in the right of way are incompatible with the line (they will continue to grow back into the lines and would not likely survive whatever ‘trimming’ could be done), it is best to remove them.”
The town attorney acknowledged that the town’s ordinance does give public utilities an exemption from obtaining a permit for tree trimming, but he said ATC is “not exempt from the prohibition against clear-cutting,” which allows exceptions only for residential properties.
‘Positive Balance’
ATC’s Braatz told local website MyWalworthCounty.com in June that the company hopes to reach a settlement that would include “compatible vegetation and fencing to help create the privacy and noise buffering that they desire.” The company has a Web page illustrating the low-lying plants it recommends for rights of way.
“We believe this would accomplish a positive balance between ATC’s responsibility for ensuring safe and reliable electric service and the Fellow Mortals’ compassion and commitment for healing wildlife,” she said.
“I think what ATC is doing is unethical and not community-minded, and I think there are employees in the company who are uncomfortable with how far this has gone,” Blane said. “I don’t know why it’s so important for ATC to be right except they might be afraid that this is going to set a precedent.
“The voltage has remained the same. The poles have remained the same. The only thing that’s changed is ATC’s policy.”
Northern Indiana Public Service Co. said last week it may shut down one coal-fired plant and partially close another.
Though nothing has been finalized, NIPSCO officials said they are considering closing the two-unit Bailly Generating Station on Lake Michigan as soon as mid-2018 and idling two of the four units at the R.M. Schahfer Generating Station in Wheatfield, Ind., by 2023. NIPSCO’s plan was unveiled last week at a public meeting on its biennial integrated resource plan, which is due to the Indiana Utility Regulatory Commission on Nov. 1.
Bailly Generating Station Source: NIPSCO
“Companies with aging coal-fired units are facing intense economic and environmental regulatory pressures that are driving important decisions today about how to meet the customer needs of tomorrow. Given these factors, we believe it may be in our customers’ best interests to retire some of NIPSCO’s coal-fired generation units,” Violet Sistovaris, NIPSCO executive vice president, said in a statement.
Sistovaris said NIPSCO would work closely with stakeholders to come up with a retirement strategy for inclusion in its IRP, which looks ahead 20 years.
The retirement dates coincide with the effective dates of EPA’s coal ash rule in 2018 and Effluent Limitations Guidelines in 2023.
Graycor Industrial Constructors completed a Wet Flue Gas Desulfurization system at NIPSCO’s R.M. Schahfer Generating Station located in Wheatfield, Ind., in 2014 Photo Source: Graycor
NIPSCO, which has invested more than $800 million in emission-reducing technologies for its coal-fired units, said compliance with the new rules would cost an additional $1 billion over seven years if it keeps its entire coal fleet operating.
Six years ago, 90% of NIPSCO’s generation capacity was coal-fired. Today, that figure is down to 72%. NIPSCO’s portfolio includes three coal-fired plants, one natural gas–fired station, two hydroelectric plants and purchased wind power.
The closures at Bailly and Schahfer would remove about 31% of NIPSCO’s total generating capacity. Bailly’s two units opened in 1962 and 1968; Schahfer’s four units were opened over 10 years beginning in 1976.
This month, the company said it would demolish its long-dormant Gary, Ind.-based Mitchell Generating Station over the next two years for $18 million. The plant was permanently closed in 2011.
California lawmakers last week passed a bill to reduce the state’s greenhouse gas emissions to 40% below 1990 levels by 2030.
The State Assembly approved the measure on a 48-31 vote, largely along party lines. Two Democrats opposed the bill, with one abstaining, while just one Republican voted in favor. The bill breezed through the State Senate on a vote of 25-13 and is expected to be signed into law by Gov. Jerry Brown.
The bill builds on the California Global Warming Solutions Act of 2006, the landmark legislation that required the state to reduce its emission to 1990 levels by 2020. It also codifies an executive order issued last year by Brown, making it more difficult for a future governor to roll back efforts to reduce the state’s emissions.
“Today, the Assembly speaker, most Democrats and one brave Republican passed SB 32, rejecting the brazen deception of the oil lobby and their Trump-inspired allies who deny science and fight every reasonable effort to curb global warming,” Brown said in a statement in response to the Assembly’s vote.
Senator Pavley
“Today’s action sends an unmistakable signal to investors of California’s commitment to clean energy and clean air,” said Sen. Fran Pavley (D), author of the bill. “This will trigger more investment and more jobs in our thriving clean-energy sector and solidify California’s leadership in demonstrating to the world that we can combat climate change while also spurring economic growth.”
The bill affects the electric, manufacturing and transportation sectors. The state Air Resources Board (ARB) will determine specific reductions by industry.
Utilities — which could benefit from the electrification of the transportation fleet — have not opposed the bill and have been preparing for the change since last year’s executive order. The state’s renewable portfolio standard — 50% by 2030 — is expected to generate most of the needed reductions for the power sector. (See California Policy Goals to Require Significant Transmission Upgrades.)
Oil industry lobbying efforts unexpectedly stalled SB 32 in California’s assembly last year, but supporters wrangled a comfortable margin to pass the bill during the current session. Photo of Valero Benicia Refinery
The oil industry lobbied hard against the legislation, which faced uncertainty since stalling in the Assembly last summer. Prospects soured after a group of Democrats representing low-income communities opposed the bill based on concerns that efforts to reduce the carbon content in gasoline would translate into higher fuel prices, which disproportionately affect people with lower incomes. Some lawmakers also complained that the bill provided the ARB with too much latitude to develop and implement emission-reduction programs without sufficient public oversight.
To address both concerns, the legislature last week passed a companion bill (AB 197) that will put two legislators on the ARB as nonvoting members and require the board to report annually to a newly created joint legislative committee on climate change policies. It also directs the ARB to prioritize emissions rules and regulations that limit economic impact on the state’s disadvantaged communities and regions reliant on agriculture.
Implementation of SB 32 was contingent on the passage of AB 197.
The current version of SB 32 does not extend the state’s cap-and-trade system, which is set to expire after 2020. The California Chamber of Commerce is challenging the program in court, contending that the emissions trading scheme constitutes a tax requiring approval by a two-thirds majority of the legislature.
That legal uncertainty has undermined investor confidence in the market for California carbon credits. The ARB-run auction Aug. 16 saw buyers pick up less than 35% of available allowances, following a dismal 10.5% showing in May. Previous auctions have typically been fully subscribed, providing significant revenues for the state.
Still, in light of last week’s Assembly vote, Brown expressed optimism about the program.
“With these bills, California’s charting a clear path on climate beyond 2020 and we’ll continue to work to shore up the cap-and-trade program, reduce super pollutants and direct more investment to disadvantaged communities,” Brown said.
Eversource Energy and National Grid have withdrawn their requests to bill electric ratepayers for natural gas capacity from the proposed Access Northeast pipeline project, bowing to a ruling by the Massachusetts Supreme Judicial Court.
The filings made Monday for their four electric distribution companies followed the court’s Aug. 17 decision vacating an order by the state Department of Public Utilities approving pipeline capacity contracts. (See Mass. Supreme Court Vacates EDC-Pipeline Contract Order.)
Last week, state Attorney General Maura Healey filed a motion asking the DPU to dismiss the contracts.
Eversource spokesman Michael Durand said the companies’ filings with the DPU were a formality in light of the court’s decision. “This does not affect our commitment to the project. We remain committed to working with the New England states to provide the infrastructure so urgently needed to ensure reliable and lower-cost electricity for customers,” he said.
“The companies reserve the right to seek department approval of the same or similar agreements in the future to the extent that, in the future, there is a change in relation to the department’s legal authority to approve such agreements,” Eversource wrote. National Grid made an identical filing on behalf of its EDCs.
Eversource and National Grid are co-sponsors of Access Northeast, which developer Spectra Energy says will deliver 925,000 dekatherms/day of natural gas to the New England power market.
Spectra spokesman Creighton Welch said the company is not giving up on the pipeline. “There is a sizeable need for natural gas throughout New England that is unabated by the court’s decision,” Welch said. “Therefore, our path forward is clear and our mission to re-establish the Massachusetts contribution is full-speed ahead. We are confident that, ultimately, the interests of New England’s consumers will prevail with desperately needed gas supply made available by Access Northeast.”
The Conservation Law Foundation, the successful plaintiff in the case, said the EDCs had no choice. “The Massachusetts Supreme Judicial Court made it clear last week that electric companies can’t gamble on pipelines with the hard-earned money of businesses and families across our state. That is exactly what these contracts would have done, and so Eversource and National Grid had no choice but to face reality and withdraw their proposals,” spokesman Josh Block said.
