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41 Percent of Auto Owners Would Consider Hybrid/Electric Vehicles: Report

February 4, 2022

by Peter Maloney
APPA News
February 4, 2022

Forty-one percent of owners of gas-powered vehicles said they are very or somewhat likely to consider an all-electric or plug-in hybrid vehicle the next time they purchase a car, according to a report by the Smart Energy Consumer Collaborative (SECC).

The SECC’s Electric Vehicles: Driving the Customer Experience report also found that current electric vehicle owners are overwhelmingly satisfied with their cars and are very interested in smart home devices and energy efficiency.

The majority, 51 percent, of electric vehicle owners are overwhelmingly what the report called “tech-savvy proteges.” That group’s ownership of smart appliances is double that of the general population, 34 percent compared with 14 percent, and they are four times more likely to own a home energy management system, at 16 percent compared with 4 percent. And, at 88 percent and 75 percent, respectively, electric vehicle owners are also much more likely to own their own home and to live in a single-family dwelling.

“These findings speak volumes about the ease of installing charging equipment at home and the necessity for programs that expand ownership among renters and multi-family dwellers,” the authors said in the report.

The report also found that environmental benefits, concern for future generations, and social responsibility were stronger motivators among electric vehicle owners than among the general population.

The report drew on data gathered from a survey of 1,000 residential energy consumers in the United States during mid-November 2021 and augmented with an additional 750 respondents who currently own an electric vehicles.

The report also looked at the sources consumers use to research electric vehicles. Most consumers, 36 percent use the Internet to gather information about electric vehicles, followed by vehicle manufacturers, 23 percent; friend and /family, 17 percent; dealers and automobile magazines, 14 percent; and websites, 13 percent.

However, the report also found that as few as 4 percent of consumers are likely to contact their electricity providers when conducting electric vehicle research. That might not hinder the purchase of an electric vehicle, but it could “result in costly surprises or delays if electrical upgrades are necessary to support the type of home charging the customer wants or needs,” the report said.

Nonetheless, the survey results showed that 97 percent of consumers felt that their electricity provider would be a reliable source of information on electric vehicles. “The research demonstrates that electricity providers have a key role to play in educating consumers about electric vehicles,” the authors said.

Department of Defense, General Services Administration Seek Information On Power Supplies

February 4, 2022

by Paul Ciampoli
APPA News Director
February 4, 2022

The U.S. Department of Defense (DOD) and the U.S. General Services Administration (GSA) on Feb. 3 issued a request for information (RFI) to gather market information and capabilities in supplying carbon emissions-free electricity to the federal government.

The DOD is the largest energy user in the federal government and one of the largest electricity purchasers in the world.

The objectives of this RFI are to:

The RFI follows President Biden’s signing of the Executive Order on Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability (EO 14057), which directed the federal government to use 100% carbon emissions-free electricity on a net annual basis by 2030, including 50% on a 24/7 (hourly matching) basis.

To access the RFI, please click here.

Minnesota Public Power Communities Receive Grants For Various Energy Projects

February 3, 2022

by Paul Ciampoli
APPA News Director
February 3, 2022

Minnesota public power communities have received grants that will help pay for a wide variety of energy-related projects.

Minnesota’s Clean Energy Resource Teams (CERTs) awarded seed grants to 74 energy efficiency and renewable energy projects — over twice as many as last year. The communities are funded for a wide range of energy projects, from improving buildings for energy efficiency to job skills training for careers in clean energy. This year, Seed Grants with a focus on underserved communities received additional funding.

These awards mark the 11th round of CERTs seed grants, totaling over $1.6 million to 467 projects since 2006.

City of Halstad/Halstad Municipal Utility

Wimmer Homes Insulation: Wimmer Homes, originally built in the 1960s for low-income elderly people to preserve independence in small homes, were designed with electric heat and have received insufficient R value updates through the years. This project will insulate the attics in 14 rental units owned and operated by the city of Halstad.

Electric Vehicle Charging Station: Halstad Municipal Utility would like to contribute to the electric vehicle grid by supplying a charging station close to their downtown. Whether it is bringing tourists to shop at their new General Store or visiting the “World’s Largest Sugar Beet,” the City of Halstad hopes to alleviate range anxiety for EV customers. They also plan to promote EV charging at homes with Off Peak incentives.

Willmar Municipal Utilities

Regency Park Energy Efficiency Outreach: Will create outreach events with multiple partners at the two Regency Mobile home parks in Willmar to educate residents about electrical efficiency, thermal savings with water efficiency, and communication about wastewater issues. Local utilities have identified these sites to have significantly high water and electricity use, and they hope to educate residents and help to reduce the average use per household.

City of Willmar

Willmar GreenStep Reboot: This project will jump start the GreenStep work previously initiated and bring in more community members not only to help implement best practices in the city, but also to provide educational lectures on best practices. The first goal is to create the Willmar Green Team with members from the utility, city, county, and other important regional organizers. These members will be the leaders and presenters for future community meetings.

St. Peter

Gustavus Adolphus College — Promoting Clean Energy and Energy Efficiency In Diverse Communities: This project will engage college students in local clean energy, energy efficiency, and education efforts. Gustavus interns will be mentored by, and work directly with, the Southcentral Minnesota Clean Energy Council (SMCEC) to develop collaborations and identify specific local opportunities. The interns will recruit students from area colleges to engage with SMCEC and develop local action plans for clean energy and energy efficiency, with an emphasis on underrepresented communities. Student groups will then execute the action plans in their local communities.

City of Warren

Clean Energy Independence — Model Plan for Design for Community Regeneration: The Warren Clean Energy Independence Plan will create actionable recommendations and be a regional model for clean energy independence. This work builds from visioning, planning, and prioritizing completed in the first phase of “Design for Community Regeneration (D4CR) Warren.” Running alongside D4CR Phase 2, this project will generate detailed analysis, recommendations, and tools for implementation that address opportunities to reduce energy burden, improve energy security and resilience, offer economic development opportunities, and build on Warren’s leadership to be a model for a just and regenerative energy path.

Electric Vehicle Charger: This project will provide a public EV charging station easily accessible to residents, employees, and visitors, and expand the community’s EV resources.

City of Worthington

Unidos MN Education Fund — Energy Justice Pueblitos: Unidos MN will conduct a series of train-the-trainer educational workshops on energy efficiency and electric bills with support from Minnesota’s Citizen Utility Board. Unidos MN plans to establish a cohort of community experts who will engage with Latinx community members on energy efficiency resources and tools, as well as provide bill consultation.

City of Jackson

Bike Local, Shop Local — Developing a Bicycle Incentive Program: This project will focus on adopting a “Bicycling Business Incentive Program” where Jackson area businesses will award those who bike to work or visit their business. This is an energy efficiency project that will foster behavior change using authentic community engagement and education, encourage participating businesses to offer a discount, allow employers to provide employee incentives (i.e. bicycle commuter reimbursements, bicycle shop discounts, etc.), and provide education about EVs and electric bikes.

City of Rochester

Channel One Regional Food Bank — Food Bank Lighting Retrofit: Channel One Regional Food Bank (C1) partnered with RETAP to evaluate their energy management practices and potential energy efficiency projects. Retrofitting C1’s lighting load was recognized as the best place to realize efficiencies and this project will implement the recommendations. By investing in energy efficiency upgrades, C1 will reserve general operating funds for their mission to end hunger in their region and demonstrate the viability of energy efficiency upgrades to other nonprofits, especially their network of 200 partnering food shelves and local food security programs.

Moorhead

Lake Agassiz Habitat for Humanity — ReStore HVAC Update: This project will improve the energy efficiency of the HVAC system within the ReStore/Habitat office building. The 18,000 square foot building serves nearly 17,000 customers annually, many of whom are low income. Two of the three HVAC systems are suspected to be original to the building, built in 1964. Cost savings from energy efficiency improvements to their systems will allow them to keep ReStore prices low and put more funding into their home building mission.

Northcountry Cooperative Foundation — Improving Energy Efficiency of Manufactured Homes: The grant will be used to assess the energy efficiency of manufactured homes in Northcountry Cooperative Foundation’s client Bennett Park Cooperative in partnership with Slipstream. The assessment data will be used to develop a scalable energy efficiency rehab loan and grant program for manufactured/mobile homeowners.

East Grand Forks

New Americans Integration Center — Building Energy Efficiency Assessment and Open House: The New Americans Integration Center will hire a professional to conduct an infrared assessment of the building. Information from the report will allow prioritization of weatherization projects for the building. Following completion of the weatherization improvements, an open house will take place to share the energy savings achievements with the Somali community and the community in general. An essay project for Somali students will encourage engagement around saving energy at home.

Mora

Kanabec County Agricultural Society — Light the Grounds: The project aims to change out exterior light fixtures at the fairgrounds in order to decrease annual use and cost to the organization. There will be a brochure, signs, and news articles to educate the community about the savings as a result of these changes, especially during the county fair. Additionally, the project will explore the possibility of adding a community solar garden on the fairgrounds with the intent of establishing an energy source for both the fairgrounds and for low-income households in the community.

Benson

Greater Minneapolis Council of Churches — MN Venture Farms Cold Climate Solar Greenhouse: Year-round food production is nearly impossible for Black and Indigenous People of Color and economically disadvantaged farmers who lack the capital to own and operate cold-climate solar greenhouses that can actively grow produce during Minnesota winters. This project will design a plan to implement and operate cold-climate solar greenhouses at multiple farm sites to increase access to locally produced, healthy foods year round; increase food security; reduce health disparities; promote sustainable agriculture; and provide agricultural education programs.

Fitch Revises Rating Outlook On Provo City, Utah, To Positive From Stable

February 3, 2022

by Paul Ciampoli
APPA News Director
February 3, 2022

Fitch Ratings has revised the rating outlook on Provo City, Utah, to positive from stable and affirmed the “AA-“ ratings on bonds issued by Provo City on behalf of the electric utility system Provo Power.

The bonds in question are $14.9 million energy system revenue bonds, series 2015A.

In addition, Fitch has assessed a standalone credit profile (SCP) of ‘aa-‘. The SCP represents the credit quality of the electric system on a standalone basis, irrespective of its relationship with and the credit quality of the city of Provo.

Fitch said the positive outlook reflects the electric system’s improved financial profile and Fitch’s expectation that deleveraging will continue through 2026, beyond levels previously anticipated by Fitch.

Leverage, as measured by net adjusted debt to adjusted funds available for debt service was 5.1x in 2021, an improvement over the prior year’s 5.5x. The fluctuation in leverage over the past two years was primarily the result of the impact of COVID-19 on electrical demand at the onset of the pandemic in 2020, followed by recovery in 2021, Fitch said.

Leverage was additionally impacted in 2021 by a spike in the Fitch-adjusted net pension liability. Going forward, leverage ratios are expected to trend below 5.0x by 2024, provided consistent rate increases are implemented to support the electric system’s ongoing capital needs.

The rating also reflects Provo Power’s “very strong revenue defensibility, supported by a growing and economically sound service area and the electric system’s independent legal ability to adjust rates that are highly affordable,” the rating agency said.

Moreover, the electric system’s very low operating risk reflects the all-requirements power sales agreement with the Utah Municipal Power Agency that provides the electric system with a competitively priced and diverse source of power, Fitch said.

Santee Cooper Launches New Demand Response Program

February 3, 2022

by Paul Ciampoli
APPA News Director
February 3, 2022

Santee Cooper, South Carolina’s state-owned electric and water utility, recently launched a new demand response program.

Under the program, called SmartRewards, customers can earn bill credits for helping Santee Cooper reduce electricity use during periods of high electric demand or during times when system resources are constrained.

Santee Cooper has contracted with Honeywell to install a small switching device near participants’ central heating and cooling systems and/or electric water heaters.

During periods of high demand or system constraints, the switch may be activated to periodically cycle heating and cooling systems and/or electric water heaters on and off, resulting in a reduction of electric demand.

Customers who participate in the program will earn initial bill credits for enrolling and having a switch installed, and then annually for as long as they participate.

Participation options include the following:

FERC Moves To Close Gap In Reliability Standards For Electric Grid Cyber Systems

February 3, 2022

by Paul Ciampoli
APPA News Director
February 3, 2022

The Federal Energy Regulatory Commission (FERC) on Jan. 20 issued a notice of proposed rulemaking (NOPR) proposing to strengthen mandatory critical infrastructure protection (CIP) reliability standards by requiring internal network security monitoring for high- and medium-impact bulk electric system cyber systems.

The NOPR proposes to direct the North American Electric Reliability Corporation (NERC) to develop and submit new or modified reliability standards on internal network security monitoring to address what FERC regards as a gap in the current standards.

Mandatory electric reliability standards, including the CIP standards, are developed by NERC and approved by FERC. The Commission also has authority to direct NERC to develop new or revised standards, and FERC is relying on that authority in the NOPR.

Under existing CIP reliability standards, network security monitoring is focused on defending the electronic security perimeter of networks that do not equate to an internal security network.

In proposing to direct NERC to expand or revise the existing CIP rules, FERC said that it is seeking to address concerns that the existing standards do not address potential vulnerabilities of the internal network to cyber threats

Internal network security monitoring addresses situations where vendors or individuals with authorized access that are considered trustworthy might still introduce a cybersecurity risk.

As an example, FERC said that the SolarWinds attack in 2020 demonstrated how an attacker can bypass network perimeter-based security controls used to identify and thwart attacks. This supply chain attack leveraged a trusted vendor to compromise the networks of public and private organizations, FERC said.

Incorporating internal network security monitoring requirements into the CIP reliability standards would help to ensure that utilities maintain visibility over communications in their protected networks, FERC said. Doing so can help detect an attacker’s presence and movements and give the utility time to take action before an attacker can fully compromise the network.

Internal network security monitoring also helps to improve vulnerability assessments and can speed recovery from an attack, FERC noted.

The NOPR seeks comment on all aspects of the proposed directive to develop and submit new or modified reliability standards for internal network security monitoring for high- and medium-impact cyber systems.  Although the proposal is currently limited to high- and medium-impact assets, as classified under NERC’s risk-based classification system, the NOPR also seeks comment on whether internal network security monitoring should be expanded to low-impact assets, or a subset of these assets.

At FERC’s January monthly open meeting, FERC Chairman Richard Glick emphasized that reliability of the bulk power system, including cybersecurity, is a top priority for the Commission. 

He noted that, if a hacker does breach an entity’s electronic perimeter, internal network monitoring can allow for a more effective and timely response. 

He encouraged interested parties to comment on the applicability of the proposal to low impact bulk electric system cyber systems, calling it “an interesting issue.”

Comments on the NOPR are due 60 days after publication in the Federal Register.

Click here to access the NOPR.

Nebraska Utility Launches New Program To Support Local Businesses

February 2, 2022

by Vanessa Nikolic
APPA News
February 2, 2022

Nebraska’s Omaha Public Power District (OPPD) recently launched a new tool to help provide support to small businesses in the local community.

According to a recent article in OPPD’s The Wire newsletter, SizeUpNebraska is a web platform that offers a variety of tools, data, and research that local businesses can utilize to compare competition, identify market characteristics, and discover ways to optimize marketing efforts. 

Interested businesses can also use the new tool to discover potential customers and suppliers. Users can find suppliers closer to their business using the tool’s location functions. The platform also helps to identify where competitors are located.

SizeUpNebraska will be available to the communities served by OPPD. The platform is free for businesses to access, and no formal training is required. 

OPPD’s Economic Development team saw how other utilities used the platform to provide value to large and small businesses. The team began working to bring SizeUpNebraska to OPPD’s communities with the goal of helping the local economy thrive.  

Other features of SizeUpNebraska include identifying top businesses in the area, analyzing customer characteristics, showing how to make better decisions based on data, and offering recommendations based on the data provided. 

The tool also aims to attract new businesses and up-and-coming entrepreneurs.

OPPD says the tool will help businesses grow by giving them access to key market research and data that they otherwise could not find.

Additional information about OPPD’s economic development initiatives are available here.

A Transactive Grid Can Reduce Load Swings And Costs: PNNL Study

February 2, 2022

by Peter Maloney
APPA News
February 2, 2022

Consumers can save about 15 percent on their annual electric bill by coordinating with their utility to control devices that use large amounts of electricity, such as heat pumps, water heaters, and electric vehicle charging stations, according to a new report from the Pacific Northwest National Laboratory (PNNL).

The Distribution System Operator with Transactive (DSO+T) study found that a transactive energy system would reduce daily load swings by 20 percent to 44 percent. The study identified a transactive energy system as one in which there is an agreement between consumers and utilities about the flexible use of energy.

In a transactive system, homes, commercial buildings, electric appliances and charging stations are all in constant contact, the PNNL researchers said, and smart devices receive a forecast of energy prices at various times of day and develop a strategy to meet consumer preferences while reducing cost and overall electricity demand.

PNNL, with Avista and McKinstry, has deployed a pilot version of an urban transactive system in the city of Spokane, Washington’s Eco-District. However, a transactive energy system has never been deployed on a large scale, so the PNNL researchers designed a simulation to analyze how distribution system operators can use transactive energy principles and mechanisms to integrate large numbers of flexible assets into the everyday operation of the electric power system.

The Electric Reliability Council of Texas (ERCOT) region provided the basis for PNNL’s analysis. The researchers created a model that represented ERCOT’s network, including more than 100 power generation sources and 40 utilities. The analysis also included representations of 60,000 homes and businesses and their energy-consuming appliances.

The researchers conducted multiple simulations under various renewable energy generation scenarios to determine how the energy system would react to the addition of differing amounts of intermittent power sources, such as wind and solar power.

The study looked at transactive coordination for two separate asset deployment scenarios: flexible loads (heating-ventilation-air conditioning units and residential water heaters) and behind-the-meter batteries. The results were compared with a corresponding business-as-usual case without flexible assets.

Both cases were subject to two scenarios: a moderate renewable generation scenario to represent current levels of deployment and a future high renewables scenario with 40 percent renewable generation, including the increased use of rooftop solar and about 30 percent of residences having an electric vehicle.

The simulation showed that if a transactive energy system were deployed on the ERCOT grid, peak loads would be reduced by 9 percent to 15 percent, translating into economic benefits of up to $5 billion annually in Texas alone, or up to $50 billion annually if deployed across the continental United States, according to PNNL.

“Because Texas’ grid is quite representative of the nation’s energy system, it not only enabled the modeling and simulation of transactive concepts but provided a reliable extrapolation of the results and potential economic impacts to the broader United States grid and customers,” Hayden Reeve, a PNNL transactive energy expert who led the team that designed and executed the study, said in a statement.

The study also explored the impact of a new kind of entity, a distribution system operator, who would manage a grid that has multiple energy sources owned and operated by distinct entities all contributing energy to the grid at different times and amounts. The distribution system operator would negotiate the transactions with customers that allow flexible load control.

The study confirmed the value of establishing entities, such as a distribution system operator, to manage transactive energy, the PNNL researchers said.

“A smart grid can act as a shock absorber, balancing out mismatches between supply and demand,” Reeve said. “Through our study, we sought to understand just how valuable effective coordination of the electric grid could be to the nation, utilities and customers. Working with commercial building owners and consumers to automatically adjust energy usage represents a practical, win-win step towards the decarbonization of the electrical, building and transportation sectors without compromising the comfort and safety of participating homes and businesses.”

Iowa’s Atlantic Municipal Utilities Enters Capacity Agreement With Missouri River Energy Services

February 2, 2022

by Paul Ciampoli
APPA News Dierctor
February 2, 2022

The board of Missouri River Energy Services (MRES) recently approved a new capacity purchase agreement with Iowa’s Atlantic Municipal Utilities (AMU).

The structure of the agreement is similar to the reserved capacity agreements that MRES has in place with 19 other members, MRES noted in the January issue of its MRES Today newsletter.

These agreements offer a win-win solution to a member’s reliability needs and MRES’ capacity needs by utilizing the members’ local generation resources for backup capacity, MRES said.

Through these purchase power agreements, MRES can call upon member generators to run and supply energy to the regional electric grid during times when other resources cannot meet customer needs.

During the 2021 polar vortex, six MRES members within the Southwest Power Pool’s footprint were called on to generate electricity to help keep the lights on in their communities and throughout the region, MRES pointed out.

In addition, reserved capacity agreements allow MRES member utilities to run their generators and supply power to their customers during other times of emergency, including outages caused by severe weather or random accidents that damage powerlines.

As part of the agreement, MRES pays the member a monthly fee in exchange for making the local generating capacity available to MRES for its use.

This mutually beneficial arrangement can help MRES and its members meet their capacity requirements, while helping participating members add local backup generation to increase the reliability of their operations, MRES noted in the newsletter.

Due to transmission limitations, the maximum amount of capacity that a member can install under this program is equal to the member’s peak demand.

MRES is an organization of 61 member municipalities that own and operate their own electric distribution systems. MRES is governed by a 13-member board of directors who are elected by and from the ranks of our member representatives.

Fitch Outlines Public Power Supply Risks Tied to Crypto Currency Mining

February 2, 2022

by Paul Ciampoli
APPA News Dierctor
February 2, 2022

Digital asset or crypto currency mining in the U.S. could present power supply risks to public power utilities unless they are sufficiently mitigated, Fitch Ratings said on Jan 24.

Crypto mining “is energy intensive and requires a considerable amount of power that can significantly increase a utility’s overall electrical load. Utilities must balance the revenue prospect of increased electrical sales with the commitment to procure or generate large amounts of power for crypto mining operations,” Fitch said.

The rating agency noted that crypto mining operations are price-sensitive entities that may be quickly scaled back or shut down if mining becomes uneconomical.

To date, Fitch’s rated public power utilities “have successfully limited their risk by restricting the scope of crypto mining operations in their service area or by defining their power procurement commitments in a way that protects the utility from nonpayment, including due to a sudden closure of the mining facility,” Fitch said.

It noted that utilities that have excess generation capacity may have the ability to meet the power supply requirements of crypto mining operations from existing power supplies. “This is the case in the state of Washington, where energy-intensive aluminum smelting operations have gradually closed over the last two decades and wind energy production has increased available energy supplies over the last decade. This, coupled with abundant low-cost hydroelectric generation, made the region an attractive location for data centers historically and crypto-mining operations in recent years.”

A utility with excess capacity “must evaluate the opportunity costs and benefits of a new large crypto load versus retaining capacity for other economic development opportunities,” according to the rating agency.

Crypto mining operations “typically bring in very little additional economic benefits in the form of jobs or ancillary business to a local economy,” Fitch said. While crypto mining operations have a wide range of sizes, in some instances they can become the largest customer in a rural service territory.

“The volatile and unregulated nature of crypto mining and the large influx of load requests led a number of Washington utilities to adopt new practices beginning in 2014 to mitigate exposure to crypto mining entities, including crypto-currency load moratoriums, evolving rate structures to capture the departure risk of a high-risk industry, and defined customer concentration limits,” the rating agency said.

Much of the recent cryptocurrency mining expansion is occurring in Texas, Fitch noted. “Unlike Washington, Texas utilities generally do not have excess generation capacity, but the structure of the regional energy market offers other perceived business advantages. For utilities with a supply and demand imbalance, utilities may need to invest in new generation facilities, sign new long-term power purchase agreements or procure power via real-time market purchases in order to serve additional crypto mining load.”

Fitch said that the first two of these three options pose the greatest risk to the utility should the crypto mining operation shut down, “as utilities could be left with stranded assets and costs that then must be recovered, typically by customers in the form of rate hikes, although the utility may utilize reserves to recover costs if there is little rate flexibility.”

Increased costs or a reduction in reserves could lead to negative credit pressure if operating margins are compressed; similarly, lower liquidity could lead to a weaker overall financial profile.

To date, Fitch-rated utilities have opted to use short-term market purchases with pass-through cost arrangements to mitigate financial risk to the utility, the rating agency said.