State Briefs

ARKANSAS

EPA Finalizes State’s Regional Haze Plan

EPA has finalized a federal implementation plan for compliance with its Regional Haze Rule for the state, but regulators and at least one generator say they may appeal the decision.

The final rule calls for increased emissions control at three coal-fired plants and three natural gas-fired plants, in addition to a paper mill. One of the plant owners, Entergy, said compliance measures could cost it up to $2 billion and that the company is exploring its options. State environmental officials may also appeal the rule.

More: KUAR; ArkansasOnline

CALIFORNIA

Imperial Irrigation District Strikes Net Metering Agreement

Imperial Irrigation District, which generated public backlash after it cut off enrollment in its net metering program earlier this year, will allow as many as 1,300 new rooftop solar customers to sign up for the preferential rate.

The district, which provides electrical service to 150,000 customers, reached a deal with the solar industry and state lawmakers to enable any customers who applied for a solar interconnection permit and received a building permit by April 1 to enroll in the program.

IID struck the compromise in the face of possible passage of legislation that would have expanded the eligibility period to July 19.

More: The Desert Sun

Appeals Court Denies Release Of PUC-San Onofre Emails

A state appeals court last week reversed a lower court decision that would have forced the Public Utilities Commission to disclose its communications related to the agency’s settlement with Southern California Edison over the closure of the San Onofre nuclear generating station.

The appellate court sided with the PUC, which argued that the communications involved privileged information regarding a rate case. San Diego attorney Michael Aguirre had sought to release the emails to determine whether Gov. Jerry Brown was party to ex parte, private negotiations between former PUC President Michael Peevey and the utility ahead of the settlement. Peevey, a former SoCalEd executive, stepped down from the commission after the negotiations were revealed.

Though the court denied disclosure, it recommended Aguirre submit his request to the PUC under the state’s Public Records Act and, if denied, take his case directly to the appeals court. Aguirre said he will appeal to the state Supreme Court.

More: The Sacramento Bee

COLORADO

Co-op to Shutter 2 Plants Under Regional Haze Plan

The Tri-State Generation and Transmission Association said it will retire more than 500 MW of coal-fired generation in the next decade in order to comply with the state’s implementation plan for EPA’s Regional Haze Rule.

The electric cooperative said it plans to shutter the 100-MW Nucla Station in Montrose County by 2022, along with the nearby mine that feeds the plant. It also plans to close the 427-MW Unit 1 at the Yampa Project by 2025, although two other units at the site will continue to operate. It said it is more economical to close the units rather than retrofit them to comply with the regulations.

“Tri-State has worked tirelessly to preserve our ability to responsibly use coal to produce reliable and affordable power, which makes the decision to retire a coal-fired generating unit all the more difficult,” the company said. “We are not immune to the challenges that face coal-based electricity across the country.”

More: The Denver Post

MICHIGAN

Agencies Approve $89.5M In Energy Assistance

The Agency for Energy and the Department of Health and Human Services approved $89.5 million in Energy Assistance Program grants last week for 14 nonprofits and utilities.

The grants are meant to help low-income residents pay electric bills. Among the organizations and municipalities that received multi-million dollar grants, DTE Energy received $17 million and Consumers Energy received $13.2 million. The Salvation Army also received $13.7 million, while TrueNorth Community Services received $15 million.

More: WSYM

NEW MEXICO

Regulators Promise Decision On PNM Rate Case by Sept. 28

The Public Regulation Commission said it will issue a decision within a month on Public Service Company of New Mexico’s rate-increase request. The PRC’s announcement came after most parties in the case objected to reopening hearings.

PNM proposed a 15.8% rate hike earlier this year to cover its investments in power and energy-efficiency measures. In early August, a PRC hearing examiner recommended a 6% increase, saying PNM hadn’t justified the higher rate.

PRC acting general counsel Michael Smith said that as a result of the nearly “uniform” opposition to holding more hearings, “We are going to make a decision based on the recommended decision that was issued by Carolyn Glick,” the hearing examiner.

More: Santa Fe New Mexican

Regulator Approves ROW for Southline Transmission Project

Land Commissioner Aubrey Dunn last week gave right-of-way approval to the Southline Transmission Project, a proposed 345-kV double-circuit line that would cross into Arizona. Developers must still submit detailed plans about the exact location of structures and roads associated with the line, along with cultural and biological surveys.

Sponsored by Hunt Power subsidiary Southline Transmission, the line will provide up to 1,000 MW of transmission capacity in both directions and connect with as many as 14 existing substation locations.

More: Albuquerque Journal

OKLAHOMA

OCC Orders Fracking Wells Shut down After Earthquake

A magnitude-5.6 earthquake last week spurred state regulators to order 37 fracking waste disposal wells to shut down over a 725-square-mile area.

The order came from the Corporation Commission’s Oil and Gas Division. Gov. Mary Fallin said the commission is coordinating with well operators around the town of Pawnee and that several buildings in the Pawnee Nation had been rendered uninhabitable by the quake. She also said EPA is assessing the region.

The wells will close within 10 days of the order, according to a schedule the commission says is necessary because scientists have warned that a sudden shutdown could provoke another earthquake. A commission spokesperson said the wells were ordered closed because of the link found by the U.S. Geological Survey between wastewater disposal and the increased number of earthquakes in the region, particularly in the state.

More: CNNMoney; Bloomberg News; The Associated Press

Wind Opponent Seeks to End Tax Credits Next Year

WindWaste, an organization opposed to wind power incentives, estimates that future wind developments could force the state to shell out more than $500 million annually in zero-emissions tax credits by 2019.

The subsidy is set to sunset on Jan. 1, 2021, but WindWaste wants lawmakers to end the credit by July 1, 2017. The next legislative session begins in February.

Representatives of the wind industry say WindWaste’s estimates of $5.2 billion in payouts by 2030 is wildly inflated. It argued that the group based its predictions on the amount of generation in SPP’s interconnection queue, which only has a buildout rate of about 15%, it says.

More: The Oklahoman

SOUTH DAKOTA

Developers of Wind Project Withdraw Request for Permit

Developers of the Prevailing Winds project asked state regulators last week to withdraw their application for a permit. The retreat came one week after a raucous, four-hour community meeting near Pierre.

Public Utilities Commission Chair Chris Nelson said the request was “unexpected.” The request came shortly before the commission’s Aug. 30 meeting and could be considered at its Sept. 13 meeting.

Prevailing Winds would produce about 200 MW of electricity. By asking to have its application dismissed without prejudice, developers could again apply for a permit at a later date.

More: Rapid City Journal

TEXAS

Austin City Council Approves Rate Cut

The Austin City Council last week unanimously approved Austin Energy’s request to redo its residential electric rates, but not before the city-owned utility first dropped a controversial proposal for an increase. Under the revised rate structure, the municipal utility’s 400,000 residential customers would see bills cut by about $62/year.

The council also signed off on $42.5 million in annual cuts that Austin Energy and its major customers agreed to earlier this month. Most of those cuts will go toward reducing electric bills for industrial and commercial customers. Major customers, such as data centers and large hospitals, will see their electric rates cut 24%.

The utility’s original proposal came under attack because of Austin Energy’s tiered residential price structure: Customers pay the base rate for their first 500 kWh of electricity and higher rates for subsequent blocks of 500 kWh.

More: Austin American-Statesman

VIRGINIA

SCC Examiner Affirms Right To Third-Party Solar Financing

A State Corporation Commission hearing examiner rejected an argument by Appalachian Power that third-party solar financing was illegal, paving the way for homeowners to sign up for the popular method of paying for residential solar-system installations.

“Today’s decision is an important win for solar rights in Virginia, which has continued to lag behind neighboring states on solar because of outdated policies and utility opposition like we saw from Appalachian Power in this case,” said Will Cleveland, staff attorney at the Southern Environmental Law Center. “The ruling confirms that Virginians have the right to use common sense financial tools to choose solar power without utilities acting as the middle men.”

The utility argued that third-party financing, in which homeowners paid for solar systems through monthly contracts, was legal only under a Dominion Power pilot project. The ruling now goes before the full commission for public comments and final briefs.

More: The Energy Fix

WISCONSIN

Regulators Approve Enbridge Pipeline Replacement

The Department of Natural Resources has granted a waterway and wetlands permit for Enbridge Energy to replace a section of old oil pipeline.

Ben Callan, a DNR water management specialist, said the permit is for replacing a 14-mile stretch of Line 3, a 1960s-era pipeline. The pipeline had been operating at a diminished capacity after Enbridge recently found issues during integrity tests. The new section will have a 36-inch diameter and be able to carry up to 760,000 barrels per day.

Callan said that the permit requires the hiring of an independent consultant to oversee compliance. Enbridge spokeswoman Shannon Gustafson said the company has not set a timeline for construction.

More: Wisconsin Public Radio

September 5, 2016

ERCOT Expects Adequate Generation for Fall, Winter

By Tom Kleckner

ERCOT’s latest resource adequacy assessments indicate it has 25,000 to 30,000 MW of spare generating capacity for the fall and winter.

ERCOT Control Room (ERCOT) - fall winter ercot generating capacity — ERCOT’s control rom *Source: ERCOT*

The Texas grid operator’s final Seasonal Assessment of Resource Adequacy (SARA) for October and November includes more than 82,000 MW of capacity, more than enough to meet a projected peak demand of about 54,400 MW.

The preliminary winter SARA report is similarly rosy, with more than 81,000 MW of capacity available to meet a forecasted record peak demand just under 59,000 MW. The winter demand record of 57,265 MW was set during February 2011’s record cold.

ERCOT, which operates 90% of the Texas grid, said four gas-fired combustion turbine units and three wind projects have begun operating since its preliminary fall SARA, adding nearly 900 MW of capacity. Three of the gas units are switchable resources and can connect to either ERCOT’s or SPP’s grids. The fall forecast assumes 13,700 to 19,000 MW of planned and unplanned outages.

Another 1,200 MW of new winter-rated capacity is expected to be in service for the winter season (December-February). The final winter SARA report will be released in November.

— Tom Kleckner

September 5, 2016

Monitor OKs PJM Auction; Says Problems Remain Despite CP

By Rich Heidorn Jr.

PJM’s Independent Market Monitor last week gave his blessing to the RTO’s Base Residual Auction for delivery year 2019/20 but called for additional rule changes to build on the tougher standards of Capacity Performance.

The Monitor’s report on the May auction concluded that the results “were competitive, with the caveat that although the Capacity Performance design addressed the most significant issues with the capacity market design, the Capacity Performance design was not fully implemented in the 2019/2020 BRA and there continue to be issues with the capacity market design which have significant consequences for market outcomes.”

PJM will require all capacity to meet CP standards starting with the 2020/21 delivery year.

pjm market monitor capacity auction capacity performance — Bowring © *RTO Insider*

The Monitor called for additional changes concerning the treatment of pseudo-tied generation, demand response and energy efficiency; the calculation of net revenues; and the application of the minimum offer price rule (MOPR).

The Monitor also acknowledged that its call for using the lower of the cost- or price‐based offer in the calculation of net revenues was rejected by FERC in June (EL14-94-001, ER16-1291). (See “FERC Won’t Revisit Cost-Based Energy Offer Cap Ruling,” PJM News Briefs from FERC Open Meeting.)

But he said the FERC-approved approach used in the May auction, which always uses the cost‐based offer, “resulted in an increase of [$43.4 million], or 0.6%, in the cost of capacity in the 2019/20 BRA.”

In addition, the Monitor recommended:

All costs incurred as a result of a pseudo-tied generator be borne by the unit and included in its capacity market offers.
The “electrical proximity” of pseudo-tied resources be “explicitly accounted for” when defining how external resources should be treated during performance assessment hours.
Enforcing “a consistent definition” of capacity resource as a physical resource at the time of the auctions — with a commitment to be physical in the delivery year and moving all DR to the demand side of the market. The Monitor referenced its 2013 report on replacement capacity, in which it warned that “speculative” DR can suppress prices in the BRA and displace physical generation: “Under the current application of the rules, DR providers may not have identified customers, may not have clear plans for implementing DR measures and may not receive commitments from new customers until relatively close to the delivery year and well after the RPM BRA is run for that delivery year. This is not consistent with the rules.”
Ensuring the net revenue calculation used to establish the net cost of new entry “reflect the actual flexibility of units in responding to price signals rather than using assumed fixed operating blocks that are not a result of actual unit limitations.” Reflecting actual flexibility will result in higher net revenues, which affect the demand curve and market outcomes, the Monitor said.
Eliminating the rule requiring that small proposed increases in the capability of a generator be treated as planned for purposes of mitigation and exempted from offer capping.
Changing the MOPR review to require all projects use the same modeling assumptions. “That is the only way to ensure that projects compete on the basis of actual costs rather than on the basis of modeling assumptions,” the Monitor said.
Extending the MOPR to existing units in addition to new units.
Re-evaluating the market mitigation exemption granted DR and energy efficiency resources in 2009. “In 2009, there was one product defined for capacity, and there were no resource constraints defined,” the Monitor said. “Particularly in [locational deliverability areas] with few suppliers, there is now the potential for DR and EE providers to exercise market power and affect the clearing price.”
Changing the RPM solution methodology to explicitly incorporate the cost of make-whole payments in the objective function.
Removing energy efficiency resources from the supply side of the capacity market to reflect the change in PJM’s load forecasts. (See Changes to PJM Load Forecast Cuts Benchmark Peaks.) “If EE is not included on the supply side, there is no reason to have an add-back mechanism,” the Monitor said. “If EE remains on the supply side, the implementation of the EE add-back mechanism should be modified to ensure that market clearing prices are not affected.”

September 5, 2016

FERC Rejects Capacity Release Exemption for NE Gas Generators

By William Opalka

FERC on Wednesday rejected Algonquin Gas Transmission’s request to exempt gas-fired generators from competitive bidding under capacity release rules, another blow to those seeking to increase New England’s gas infrastructure (RP16-618).

Maine PUC, pipeline contracts, ferc, natural gas, Algonquin Gas Transmission, capacity release exemption — *Photo credit: Steve Oehlenschlager*

The proposal to amend Algonquin’s tariff was an offshoot of the company’s proposed Access Northeast pipeline. Electric distribution companies Eversource Energy and National Grid — which are partnering with Algonquin on the pipeline — sought the exemption to ensure the capacity they purchased would be used to fuel gas-fired generators.

The EDCs hoped to release capacity to gas generators as prearranged “replacement” shippers. FERC rules allow such preferences as long as the replacement shipper matches the highest bid submitted by any other bidder. The proposal would have limited that bidding to gas-fired generators, excluding those who might value the fuel more for winter heating.

FERC held a technical conference on the matter in the spring. (See Utilities Seek OK for Gas Releases to Generators at Technical Conference.)

The proposal was opposed by numerous merchant generators, including NextEra Energy, Exelon and Calpine, which said they had found cheaper alternatives to ensure fuel supplies under ISO-NE’s Pay-for-Performance capacity incentives, including installation of dual-fuel capacity and contracts with natural gas marketers and LNG suppliers.

“Merchant generators are not asking you for this capacity, and you need to ask yourself why,” Calpine told FERC. The company estimated firm capacity would cost it $25 million annually, or half a billion dollars over a 20-year commitment. It said it could guarantee the same level of service by investing $50 million in a fuel oil tank.

Other opponents argued that the proposal was premature because no state had approved a state-regulated electric reliability program.

“Neither Eversource nor National Grid provided a persuasive explanation for why the ability to release capacity to a prearranged replacement shipper under our existing regulations is not sufficient to meet their needs,” FERC ruled. “Moreover, neither party sufficiently explained why a generator that needed the capacity to obtain the natural gas supplies necessary to generate electricity during a period when Algonquin’s capacity is constrained would not match a higher bid.”

However, the commission said its ruling was “without prejudice to Algonquin developing other more targeted, justified proposals for consideration.”

The commission also granted Algonquin’s request to exempt from bidding an EDC’s capacity release to third parties managing capacity on an EDC’s behalf.

“By permitting capacity holders to use third-party experts to manage their natural gas supply arrangements and their pipeline capacity, [asset management arrangements] provide for lower gas supply costs and more efficient use of the pipeline grid,” the commission said. A compliance filing on this proposal is due in 30 days.

Access Northeast suffered a setback in August when the Massachusetts Supreme Judicial Court overruled state regulators’ order to allow construction costs be assessed to electricity ratepayers. Soon after the ruling, the EDCs withdrew their proposed contracts that were pending before the Massachusetts Department of Public Utilities. (See Eversource, National Grid Withdraw Requests to Bill for Pipeline.)

Access Northeast Complaint Dismissed

In a related case, FERC dismissed a complaint filed by electric generators seeking to block EDC contracts with pipeline owners as premature (EL16-93).

Public Service Enterprise Group and NextEra said the contracts would render the power markets discriminatory and suppress power prices. (See Generation Owners Seek to Block EDC-Pipeline Deals.)

“The circumstances giving rise to the complaint are in a state of flux and the commission does not have before it the concrete facts necessary to determine whether the tariff will be unjust and unreasonable. Several critical project elements of the individual states’ electric reliability programs are undetermined at this time,” FERC wrote.

The commission cited the Massachusetts court ruling, its concurrent order on capacity releases and its pending ruling on Access Northeast, which is expected in the fourth quarter.

September 5, 2016

EIM Governing Body Convenes First Meeting, Selects Leadership

By Robert Mullin

The newly established Western Energy Imbalance Market (EIM) governing body kicked off its first meeting last week by electing its leadership.

CAISO’s Board of Governors appointed the five-member body in June, selecting one each from five industry sectors: EIM entities, ISO-participating transmission owners, power suppliers and marketers, publicly owned utilities and state regulators. (See CAISO Board Appoints Western Energy Imbalance Market Governing Body.)

Kristine Schmidt, president of Dallas-based Swan Consulting, was selected to serve as the body’s chair. A former vice president at ITC Holdings and director at Xcel Energy, Schmidt has more than 30 years’ experience in the energy sector. She also worked as an adviser to former FERC Commissioner Nora Brownell.

Howe and Schmidt - Energy imbalance market (eim) leader meeting — The EIM Governing Body selected Kristine Schmidt and Doug Howe as its chair and vice-chair, respectively.

Doug Howe, an independent consultant and Ph.D. in mathematics, was chosen as vice chair. Howe has authored or co-authored more than 30 papers and presentations covering industry topics such as energy efficiency in the European Union and utility regulation in the U.K. He previously held an executive position with GPU Inc., which was acquired by FirstEnergy in 2001.

Carl Linvill, a member of the governing body, praised Schmidt for her “equanimity” and also expressed support for the wider Western regional representation that Howe — a New Mexico resident and former state regulator — will provide.

“We still have a lot to figure out and learn,” Linvill said. “Figuring out how to establish a regional presence really is emboldened and enabled by these two positions.”

“On behalf of the ISO, we want to give you our immense thanks for being willing to serve on this body,” CAISO CEO Steve Berberich said. “We consider the EIM as a critical attribute and will continue to support it for as long as necessary.”

A decade ago, Schmidt noted, nobody in the industry would’ve believed the region would have an EIM.

“We’re now seeing a regional market take shape in the West,” Schmidt said. “We’re hitting the ground running.”

Stakeholder Coordination

The governing body’s inaugural meeting included a set of briefings by EIM stakeholders and ISO staff to acquaint members with key structures affecting the market.

“There’s a lot of interest in what you’ll be doing,” said Tony Braun, an industry consultant who chairs the Regional Issues Forum, a loosely structured stakeholder group created by CAISO to foster broad regional discussion about EIM-related issues.

While the forum’s role “has not been concretely laid out,” the group’s first two meetings have been well attended, indicating a high level of interest in the EIM’s activities, Braun said.

The two most significant issues for forum participants: the bidding of external resources at the EIM’s interties and the impact of California’s greenhouse gas regulations on the market. (See related story, CAISO Kicks off Effort to Track GHGs Under Regionalization.)

Braun proposed that future meetings of the forum be coordinated with those of the EIM’s governing body and its state regulators’ group to improve collaboration and reduce participants’ travel for meetings.

“We’d love to hear how we can shape our processes to help you do your jobs,” Braun said.

Governing body members expressed appreciation for the work of the forum.

“The stakeholder-driven nature of the [forum] is probably something that is both difficult and necessary,” said governing body member Valerie Fong. “I found that the way [the meetings are] being run is very open.”

Schmidt called the meetings “extremely helpful.”

“We’re trying to do everything we can do to mitigate some of the travel issues,” she added.

Regulatory Collaboration

Ann Rendahl, chair of the EIM’s body of state regulators, sketched out the role of her group for the new governing body.

“Our purpose is to ensure that state regulators that aren’t involved in this market understand what is going on in EIM,” said Rendahl, a member of the Washington Utilities and Transportation Commission.

The group provides a forum for regulators to learn about EIM and CAISO developments that might be relevant to their jurisdictional responsibilities. While it can take a common position in CAISO and EIM stakeholder processes, individual regulatory commissions are not restricted from taking any position before FERC or the ISO board on EIM-related matters.

The regulators’ group is also charged with monitoring EIM governing body action items and selecting a voting member for the body’s nominating committee.

Rendahl emphasized the need for her group to closely coordinate its activities with that of the governing body. “We want to not just monitor, but work with the governing body,” she said.

ISO Process Basics

Governing body members received a briefing about CAISO’s stakeholder process from Brad Cooper, ISO manager of market design and regulatory policy.

Cooper explained the stakeholder process the ISO uses each fall to develop a “roadmap” of planned policy developments, including EIM initiatives. The ISO last year drew from a catalog of 49 potential initiatives, selecting only 10 because of staff constraints.

“We can’t develop everything in the catalog,” Cooper said.

A final roadmap is presented to the CAISO board — and, in the future, the EIM governing body — at the beginning of each year. The ISO informs stakeholders of any changes to the roadmap through its Market Performance and Planning Forum.

“The roadmap isn’t set in stone,” Cooper said. “For instance, we had the Aliso Canyon issue come up” earlier this year, forcing a modification of the roadmap. (See CAISO Seeks Rapid Response to SoCal Gas Restrictions.)

When developing the roadmap, ISO staff divide initiatives into four categories, including initiatives already in progress, policy changes mandated by FERC, non-discretionary efforts related to reliability or market efficiency, and discretionary initiatives.

For the last category, ISO staff and stakeholders together prioritize potential initiatives according to benefits and feasibility.

“If something could provide great benefits and is relatively trivial to do, that would get priority,” Cooper said.

Cooper acknowledged that CAISO’s policy process is driven more by staff than by stakeholders — and said the ISO prefers it that way.

“We realize that we made a commitment to look at other [stakeholder] processes [to implement under] regionalization, but we think our stakeholder process really allows us to quickly evolve policies,” Cooper said, adding that he didn’t think a project such as the EIM could’ve been developed under a stakeholder-led model.

“The ISO really tries to take a balanced view of our proposed policy,” Cooper said, contending that the ISO’s process does not factor in specific stakeholder interests, avoids “contentious voting structures,” and prevents bias or brokered policy decisions — allowing the ISO to focus on grid reliability.

Still, Cooper emphasized that “stakeholders are involved every step of the way,” including through “working group” meetings that focus on specific initiatives.

“We have a lot of open interaction that may not be possible with more formal stakeholder processes,” Cooper said. “This allows us to really interact with our stakeholders and get their input.”

September 5, 2016January 3, 2024

Company Briefs

The owner of the 40-MW White Pine coal-fired power plant in Michigan’s Upper Peninsula blasted MISO after receiving a 90-day notice that the grid operator will terminate its $7.3 million annual system support resource agreement with the 60-year-old plant on Nov. 26.

White Pine Electric Power, a subsidiary of Traxys North America, said the decision jeopardizes reliability until 2020, when 170 MW of new natural gas-fired plants will come online. “This is a short-sighted decision by MISO that they claim is about utility rates,” said White Pine board Chairman Brent Zettl.

The utility claims that the study MISO used to make its decision did not properly evaluate emergency scenarios, arguing that the plant provides a failsafe against unplanned outages.

More: White Pine Electric Power

Duke Adds Former Nuke Exec to Board

William E. Webster Jr., former executive vice president for industry strategy at the Institute of Nuclear Power Operations, joined Duke Energy’s board of directors eﬀective Sept. 1.

Webster retired from INPO on June 30, ending a career there that began in 1982. While at INPO, he also served in “on‑loan” leadership positions with FPL Group and Arizona Public Service’s Palo Verde Nuclear Generating Station.

He received his senior reactor operator certiﬁcation at Duke’s Brunswick nuclear plant and has a bachelor’s degree in civil engineering from Villanova University.

More: Duke Energy

Xcel Adds Another Wind Farm to Portfolio

The 200-MW Odell Wind Farm began generating power in southwestern Minnesota last week under a 20-year power purchase agreement with Xcel Energy, its fourth wind facility in the Upper Midwest.

Owned and operated by Canadian company Algonquin Power & Utilities, Odell consists of more than 100 turbines erected in four counties.

Xcel gets 14% of its power from wind sources in the Upper Midwest and predicts the share will rise to 22% in 2020. Xcel’s ultimate goal is 42% from wind.

More: Star Tribune; La Crosse Tribune

Former NYPA CEO Joins NYISO Board

NYISO has named former energy executive Roger B. Kelley to its Board of Directors, effective this month. He replaces Vikki L. Pryor, whose term expired in April.

Kelley has more than 40 years of experience in the electric generation and transmission business. He previously served as CEO of Peregrine Midstream Partners in Houston. He was also CEO of Midland Cogeneration Venture in Midland, Mich.; CEO of Fortistar Renewables, based in White Plains, N.Y.; and CEO of the New York Power Authority.

“Roger has extensive experience in the energy industry, including as president and CEO of the New York Power Authority,” said Michael Bemis, NYISO’s board chair. “We appreciate his willingness to serve as a director. I’m confident we will benefit from his judgment and counsel.”

More: NYISO

Tesla-SolarCity Filing Reveals Cash-Strapped Companies

Prior to agreeing to a merger with Tesla, SolarCity considered selling its Buffalo solar panel manufacturing plant, which is scheduled for completion next June with $750 million in state assistance, according to a filing with the U.S. Securities and Exchange Commission.

SolarCity eventually decided a sale of the plant, a centerpiece of Gov. Andrew Cuomo’s Buffalo Billion economic development program, would not provide an adequate return for company shareholders. But the filing reveals how strapped for cash SolarCity is, even as it considered being acquired for $2.4 billion. The company’s operations rely heavily on a business model that allows customers to install rooftop solar with no upfront costs, forcing it to constantly raise money from investors.

The filing also reveals at least three other firms declined to acquire SolarCity before it accepted the offer from Tesla, which is facing a cash crunch itself. The company will have to pay $422 million to bond holders in the third quarter. Tesla’s debt-to-equity ratio was 145.5% as of June 30; SolarCity’s was 375.6%.

More: The Buffalo News; The Wall Street Journal

Developer Wants to Double Up Indiana Plant

Development Partners, which is building a $500 million, 700-MW natural gas plant in northern Indiana, has asked MISO to allow it to double the size and the cost of the plant.

The White Plains, N.Y., company wants permission to add two more turbines to the St. Joseph Energy Center near the Michigan border. The first phase of the project is scheduled to be completed in 2018.

After Development Partners gets interconnection approval from MISO, which it hopes to earn by the end of the year, the developer would work with local officials to approve a site plan.

More: South Bend Tribune

Enbridge Puts Minnesota Pipeline Project on Hold

Enbridge Energy Partners, which recently invested $1.5 billion into a rival oil-pipeline project, has put its proposed Sandpiper Pipeline in Minnesota on hold, saying current demand for crude oil no longer supports the need for the project.

Sandpiper, which was initiated three years ago, aimed to carry up to 225,000 barrels of oil from North Dakota through Minnesota and then on to Superior, Wis. The proposal faced heated opposition from Native American tribes and environmental groups who objected to the proposed path, which would have crossed numerous lakes and rivers.

Enbridge stopped short of saying the project was dead, but it did say the five-year projection of production in North Dakota’s Bakken region doesn’t forecast the need for more pipeline capacity. The decision comes just after its recent $1.5 billion investment in the Bakken pipeline system, which includes the Dakota Access project.

More: MPR News

Oregon Coal Plant to Run Full Biomass Test

Portland General Electric is exploring the possibility of converting its coal-fired Boardman power plant in eastern Oregon to biomass.

The utility plans to run the 550-MW facility on woody biomass for one full day this year as an experiment, following a successful test last year using a 10-to-1 mixture of coal and biomass. The process will entail pulverizing wood debris into the substance before feeding it into the plant’s boiler.

Boardman is slated for closure in 2020, but the use of biomass could extend the life of the plant. Success of the project will hinge on plant conversion costs and securing a steady supply of fuel.

More: East Oregonian

Southern Co., Kinder Morgan Close Deal on Pipeline System

Southern Co. has acquired 50% of Kinder Morgan’s Southern Natural Gas pipeline system, the companies announced. The 7,000-mile system runs from wells in Texas, Louisiana, Mississippi and Alabama to markets in the southeast. Terms of the acquisition were not announced. Kinder Morgan will continue to operate the pipeline system.

Southern CEO Thomas A. Fanning hinted at other deals possibly in the works. “With our new ownership stake in Southern Natural Gas, we look forward to working with Kinder Morgan to explore future opportunities to deliver natural gas to customers,” he said.

More: Southern Co. and Kinder Morgan

Talen Notifies NRC it is Canceling Nuclear Plant

Talen Energy withdrew its request for an operating license from the Nuclear Regulatory Commission for the proposed Bell Bend nuclear station in Berwick, Pa., saying that the reactor design company’s decision to suspend its certification process left it no choice.

The Allentown, Pa., company said that it had posted a $122 million loss associated with the project when it released its second-quarter results and that it would stop attempts to get a license for the plant. The reactor design company, Areva, asked NRC in 2015 to stop its design certification process. A Talen spokesman said seeking another design company wasn’t feasible.

Talen said the decision was not related to is pending merger with Riverstone Holdings.

More: The Morning Call

GE Joins MIT Energy Initiative

General Electric is joining an energy research program at the Massachusetts Institute of Technology that aims to cut carbon emissions.

GE is contributing $7.5 million to the MIT Energy Initiative for research, particularly in solar power, energy storage, advanced power grids and carbon sequestration, company officials said.

“This partnership really is about advancing the state of the art in low-carbon technologies,” said Steve Bolze, chief executive of the $29 billion GE Power division.

More: The Boston Globe

EnerNOC Wins BQDM Contract from Con Ed

EnerNOC has been awarded a multi-million-dollar contract by Consolidated Edison for the Brooklyn-Queens Demand Management program, part of New York’s Reforming the Energy Vision initiative. The program’s aim is to reduce demand in certain areas of New York City, delaying or eliminating the need for a $1.2 billion substation.

The BQDM project has been described as the largest modern “non-wires” alternative program in the U.S. relying on the use of energy efficiency and demand-side management in lieu of traditional generation and distribution infrastructure.

More: EnerNOC

Duke, Solar Devs Reach Interconnection Agreement

Duke Energy and 33 solar developers reached an agreement that will allow many solar generation projects to go forward and interconnect with the utility’s grid.

Earlier this summer, Duke announced that so many solar projects are seeking interconnection with their grid that it might cause problems and was going to require each new project to undergo a technical review. The new agreement allows the projects to connect while preserving Duke’s right to disconnect if problems arise. There are 3,300 MW of solar projects in various stages of planning and construction in North Carolina.

“In some areas of our system, we’re reaching a saturation point with solar, and in some places it is ill-placed,” a Duke spokesman said. The intermittent nature of the generation could cause problems with some of the lower-voltage circuits, the company says.

More: The Charlotte Observer

August 29, 2016

MISO Informational Forum Briefs

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.

Spear phishing, which uses phony emails to get access to information, is the most common way to enter company networks, Alford said, citing the 2015 hack on Ukraine’s power grid. (See How a ‘Phantom Mouse’ and Weaponized Excel Files Brought Down Ukraine’s Grid.)

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.

— Amanda Durish Cook

August 29, 2016

NYISO Releases Plan for Integrating DER

By William Opalka

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.

nyiso distributed energy resources 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.”

August 29, 2016

ERCOT Technical Advisory Committee Briefs

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.

ERCOT Technical Advisory Committee — Vice Chair Bob Helton, GDF Suez; Chair Adrianne Brandt, CPS Energy; ERCOT COO Cheryl Mele © *RTO Insider*

“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.

– Tom Kleckner

August 29, 2016

Wildlife Refuge Preps for Trial Against ATC Clear-Cut

By Amanda Durish Cook

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.

Fellow Mortals Wildlife Hospital (aerial) - ATC — 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.”

Fellow Mortals Wildlife Hospital - ATC — 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.”