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Board of Commissioners for OUC Votes to Decrease Electric Retail Price for Second Time in Four Months

August 10, 2023

by Paul Ciampoli
APPA News Director
August 10, 2023

For the second time in four months, the Board of Commissioners for Florida public power utility OUC voted to lower electric rates.

The two rate changes total a net average savings of $15 per month for the average residential customer with 1,000 kilowatts (kWh) hours of usage, OUC said on Aug. 9.

“This additional rate adjustment reflects our commitment to pass along savings to our customers whenever possible. It’s the right thing to do,” said Mindy Brenay, Chief Financial Officer. “Throughout our 100-year history, OUC’s focus has been and remains to provide affordable, reliable, and sustainable electric and water services.”

In May, the board approved a decrease in pass-through fuel costs that took effect in June — a move that yielded on average a 10% reduction in customers’ monthly electric bills across all customer segments.

The average residential customer using 1,000 kWh saw a savings of $13 a month in Orlando/Orange County and $13.52 a month in St. Cloud/Osceola County.

OUC’s Board of Commissioners on Aug, 8 voted to further decrease the electric customer bill. The average residential customer using 1,000 kWh can expect savings of approximately $2 a month in Orlando/Orange County and $2.08 a month in St. Cloud/Osceola County. The rate adjustment will take effect on Oct. 1, pending review by the Florida Public Service Commission.

OUC’s rates remain below the average of its peers, it said.

Lower Colorado River Authority Picks Fagen as Contractor for Peaker Plant

August 9, 2023

by Paul Ciampoli
APPA News Director
August 9, 2023

The Lower Colorado River Authority has selected Minnesota-based Fagen Inc. as the engineering, procurement and construction contractor for LCRA’s new peaker power plant being built in Texas.
 
As the EPC contractor, Fagen now will begin detailed engineering work for the natural gas-fired plant, which will provide about 190 megawatts of dispatchable power to the Texas power grid.

Construction is expected to begin late this summer. The plant is expected to be operational in 2025.
 
 LCRA chose Fagen after an extensive selection process largely because of its expertise with EPC projects, including power plants with reciprocating engines such as the 10 high-efficiency Wärtsilä reciprocating engines that will power the new peaker plant.

The new plant will be LCRA’s second peaker plant. The first is a 184-megawatt natural gas-fired facility in Fayette County that was built in 2010.

DOE Awards Companies Funds for Long-Duration Storage Projects in Vermont and Kansas

August 9, 2023

by Paul Ciampoli
APPA News Director
August 9, 2023

The U.S. Department of Energy’s Office of Electricity has selected two companies to receive $19 million in awards to demonstrate long-duration energy storage projects in remote communities and military housing.

The companies will receive funding to show how energy storage can lower electricity bills and increase power reliability in Vermont and Kansas.

This marks the first projects to be funded under the new energy storage demonstration programs enacted as part of the 2020 Energy Act.  

The two companies receiving funding are NOMAD Transportable Power Systems and Corvias Military Living.

NOMAD Transportable Power Systems will receive $9.5 million which it will combine with its 50 percent cost share to lead a team to bring LDES to five communities in rural Vermont that have historically faced unreliable electric service during severe weather events, DOE said. The mobile energy storage systems will also serve as a new tool for emergency response across the region. 

Corvias Military Living will receive $9.5 million which it will combine with its more than 50 percent cost share to demonstrate one of the first electric vehicle-inclusive microgrids at Fort Riley in Kansas, which will increase the energy resiliency, sustainability, and independence of military housing and other critical facilities.

Corvias will partner with General Motors Defense and other GM businesses to support the continued marketing and development of GM technologies for key markets in the U.S.

APPA Emphasizes Need for EPA to Examine Reliability Impact from Proposed GHG Rules

August 9, 2023

by Paul Ciampoli
APPA News Director
August 9, 2023

The Environmental Protection Agency should evaluate how its rules for reducing greenhouse gas emissions would affect electric reliability and implement changes to the proposed rules to ensure grid reliability, the American Public Power Association said in comments filed with the federal agency.

The Aug. 8 comments were submitted in response to EPA’s new source performance standards for greenhouse gas emissions from new, modified, and reconstructed fossil fuel-fired electric generating units; emission guidelines for greenhouse gas emissions from existing fossil fuel-fired electric generating units; and repeal of the Affordable Clean Energy Rule.  

In its comments, APPA recognizes the importance of reducing greenhouse gas emissions to address climate change and points out that public power utilities reduced their carbon dioxide emissions by 31 percent from 2005 to 2022, which contributed to the electric generating industry being the industrial sector with the largest amount of GHG emissions reductions in that period.

Equally important to APPA members, however, is their duty to provide their communities with a reliable supply of affordable electricity. They are concerned that the proposed rule would impede this responsibility, APPA noted.

Along with calling for EPA to examine how the proposed rules would affect electric reliability, APPA also urged EPA to find that carbon capture and storage and hydrogen co-firing, while promising technologies are not mature enough to be considered the best system of emissions reduction.

EPA should also consider raising the size and capacity factor threshold for existing natural gas-fired units that are subject to the proposed rule and revise what APPA said is the unrealistic timeline for compliance with the rules.

APPA also urged EPA to issue a model trading rule for existing generating sources, provide states with alternative mass-based presumptively approvable emission limits and examine how environmental justice communities would be harmed by a rule that increases electricity prices and reduces the reliability of electricity.

Department of Housing and Urban Development Publishes Updated Solar Energy Guidance

August 9, 2023

by Paul Ciampoli
APPA News Director
August 9, 2023

The U.S. Department of Housing and Urban Development on Aug. 4 published updated guidance for Public Housing Authorities and owners of properties participating in HUD multifamily assisted housing programs regarding the treatment of financial benefits received from participation in community solar energy programs or the presence of on-site solar facilities.

HUD said it updated this guidance to make it easier for program participants to understand and implement policies governing participation in solar programs so that residents can benefit from the expansion of these clean energy programs “as a result of President Biden’s Investing in America agenda through the historic Inflation Reduction Act.” 

The new guidance consolidates multiple previously issued policy documents, along with current guidance for HUD programs supporting solar, including:

Specifically, the updated guidance covers programs through which residents benefit from electricity generated by solar panels at either an off-site array or on-site solar facility.

The new documents contain policies administered by HUD’s Office of Public and Indian Housing and Office of Multifamily Housing Programs that remain largely unchanged from previously issued policy, with updates for clarity and consistency.

The updated guidance also includes some expansions, such as guidance for Public Housing Authorities in using community solar credits for buildings with master metered utility accounts and explicitly stating for properties participating in HUD Multifamily Assisted Housing programs that the guidance applies to properties with rooftop/on-site solar facilities.

HUD also recently updated Public Housing guidance on power purchase agreements for use with its Rate Reduction Incentive program and published Public Housing guidance for solar credits.

On May 11, 2023, HUD announced the availability of new funding through the Green and Resilient Retrofit Program to reduce greenhouse gas emissions and improve the energy and water efficiency and climate resilience of HUD-assisted multifamily properties serving low-income residents.

GAO Report Highlights Transformer Supply Chain Issues Raised by Public Power Utilities

August 7, 2023

by Paul Ciampoli
APPA News Director
August 7, 2023

A new report issued by the Government Accountability Office highlights many issues that have been consistently raised by public power utilities related to the ongoing transformer supply chain crisis. 

Those include long manufacturing lead times, increasing manufacturing capacity will take time, material and component shortages that limit capacity expansion, labor shortages, and competition from foreign producers.

The report also details efforts undertaken by utilities to address these issues on their own including maintaining spare equipment on site, strategically managing, and modifying inventory in stock, and other efforts to harden infrastructure (such as security enhancements) to avoid having to replace components.

The report, “DOE Could Better Support Industry Efforts to “Ensure Adequate Transformer Reserves,” was issued to the House and Senate Appropriations Committees.

The American Public Power Association was contacted by GAO staff last year to provide information regarding APPA efforts to address supply chain issues related to transformers.

While the subject of the GAO report focuses on large power transformers (LPTs), public power was able to provide information to GAO that shows the similarities between LPTs and distribution transformer lead times and supply issues, as well as other grid components being constrained.

The report concludes that utilities and DOE have taken steps to address challenges, but that DOE has not done enough to support industry efforts. 

The agency “has yet to develop a plan that sets actionable objectives to operationalize these options and strategies. Without such a plan to guide DOE’s efforts, those efforts could stall or remain incomplete, further delaying potential solutions and support that utilities and other stakeholders need to address supply chain challenges,” GAO said.

GAO makes two recommendations for action by DOE.

First, the report states that the Secretary of Energy should establish a plan, including time frames as appropriate, to guide the agency’s efforts to develop solutions and support for addressing transformer supply chain challenges.

Second, the Secretary of Energy should establish a plan, including time frames as appropriate, to guide the agency’s support for utilities and facilitate greater participation in industry-sharing efforts.

California Community Choice Aggregator MCE Details Energy Efficiency Savings in Report

August 7, 2023

by APPA News
August 7, 2023

California community choice aggregator MCE recently released its 2022 energy efficiency annual report, which notes that its customers received over $2.35 million in rebates.

The rebates helped residents and businesses make upgrades to save energy across lighting, refrigeration, air conditioning, and more.

Low-income, state-designated disadvantaged communities who are traditionally underserved by energy efficiency programs were prioritized among many of MCE’s initiatives. Eight multifamily properties will receive over $580,000 to complete energy upgrades across 784 low-income units.

Over 360 residents received $1.5 million in no-cost air sealing, insulation, and other efficiency upgrades.

Incentives also included $146,000 for agricultural customers, $478,000 for businesses and almost $200,000 for industrial customers.

Looking ahead, the California Public Utilities Commission has unanimously approved $78 million in energy efficiency funding to support MCE programs for 2024-2027.

The report is available here.

NYPA Issues First Annual Integrated Report

August 7, 2023

by Paul Ciampoli
APPA News Director
August 7, 2023

The New York Power Authority on Aug. 2 released its first annual integrated report, which details the operations and activities carried out by NYPA and its subsidiary, the New York State Canal Corporation, in 2022.

The report takes an integrated approach to communicating the Power Authority’s performance, bringing together environmental, social and governance data and audited financial information to present a more comprehensive view of the Power Authority’s value creation process, NYPA said.

The report describes progress toward achieving the priorities set by VISION2030 and the goals outlined in its 2021–25 Sustainability Plan.

In particular, the report examines the value the Power Authority creates for the state, its customers, local communities, and employees through a wide range of activities and relationships focusing on three key areas of performance: enabling the just transition to a decarbonized New York state; empowering a resilient New York state through partnerships; and cultivating success as a team.

NYPA said VISION2030 is a core tenet of the report and focuses on five strategic priorities to achieve the clean energy goals of the Power Authority’s customers and the state. They include the Power Authority’s ongoing partnerships with customers to deliver clean and affordable energy solutions; pioneering the path to decarbonization while ensuring the reliability, resilience, and affordability of the state’s electric grid; facilitating the rapid development of transmission assets; preserving the value of hydropower; and adaptively reimagining the New York State canal system.

The Power Authority achieved progress on a myriad of major initiatives — such as Next Generation Niagara, Smart Path and Central East Energy Connect — and advanced our commitment to 100 percent carbon-free electricity by 2035.

The Power Authority “will lead the power generation sector by developing and publishing an action plan within the next two years to deliver upon its commitment to phase-out electricity production from its fossil fuel peaker power plants by 2030. NYPA will consider using the plants and the sites for renewable generation, energy storage or electric grid support needs,” it said.

NYPA has also implemented programs in partnership with customers and communities to help them achieve their sustainability and climate goals and continued to invest in its employees and their health and safety.

In addition to showing the Power Authority’s financial performance and progress towards meeting its VISION2030 strategy goals, it also shows the impact of the Power Authority’s performance on the environment and the community it serves.

 “We are pleased to publish the first New York Power Authority Integrated Annual Report, which explains the importance of sustainability to NYPA and Canals,” said NYPA President and CEO Justin Driscoll. “NYPA is a first mover in integrating its ESG reporting with its financial reporting to provide a complete picture of the Power Authority’s business operations. This annual report will track NYPA’s progress as it endeavors to achieve its VISION2030 strategic goals and advance Governor Hochul’s nation-leading climate and clean energy agenda.”

 The Power Authority will issue an annual Integrated Report moving forward.

To learn more about sustainability at NYPA, please visit nypa.gov/innovation/initiatives/sustainability.

New York Governor Forms Working Group to Examine Energy Storage System Safety

August 4, 2023

by Paul Ciampoli
APPA News Director
August 4, 2023

New York Gov. Kathy Hochul on July 28 announced the creation of a new Inter-Agency Fire Safety Working Group to ensure the safety and security of energy storage systems across the state, following fire incidents at facilities in the state this summer.

State agencies will begin immediate inspections of energy storage sites, and the Working Group will help prevent fires and ensure emergency responders have the necessary training and information to prepare and deploy resources in the event of a fire.

Saying that fires at energy storage facilities are exceedingly rare, Hochul’s office noted that she has directed the Division of Homeland Security and Emergency Services Office of Fire Prevention and Control, New York State Energy Research and Development Authority, New York State Department of Environmental Conservation, Department of Public Service and the Department of State to lead the Working Group. The Working Group will examine energy storage facility fires and safety standards.

The Working Group will investigate the recent energy storage fires in New York and will conduct a comprehensive fire safety review, including emergency response analysis, of energy storage projects that experienced thermal runaway events across New York. Findings will include a list of recommendations for stationary energy storage equipment and installations.

The Working Group will review energy storage system operations and operators as they examine the condition of their batteries to verify operation within design parameters, remedy any deficiencies identified, verify operation of on-site fire suppression and confirm fire suppression plans with local fire departments, among other best practices.

The findings and resulting recommendations will also be shared with the New York City Fire Department, National Fire Protection Association, International Code Council, the New York State Fire Prevention and Building Code Council, and Underwriters Laboratories, which offers testing and certification services related to energy storage systems.

Florida Municipal Power Agency Voices Concerns About EPA Proposed Greenhouse Gas Rule

August 4, 2023

by Paul Ciampoli
APPA News Director
August 4, 2023

The Florida Municipal Power Agency recently filed comments with the Environmental Protection Agency voicing concerns about EPA’s proposed greenhouse gas rule for electric utilities.

The rule, which targets CO2 emissions from fossil fuel-fired power plants, presents unique challenges in Florida, FMPA noted.

FMPA is a wholesale power agency owned by municipal electric utilities in Florida.

Florida relies on natural gas generation for 75% of its power supply, “by far the highest percentage in the United States. It would be one of the most impacted states by EPA’s proposed rule, which would introduce experimental ‘green’ hydrogen to partially fuel natural gas power plants by 2032,” FMPA said in a news release related to the comments.

The Florida Reliability Coordinating Council also filed comments on the proposed rule. The FRCC reported the rule would likely reduce natural gas generation levels between 20% to 40% for natural gas units, creating significant reliability risks in Florida, FMPA pointed out.

“Florida is not situated to comply with the rule within the proposed time frame and it would result in 8% unserved energy, or the equivalent of blacking out all of Florida’s residential customers for two months, according to FRCC analysis,” said Jacob Williams, CEO and general manager at FMPA. “To meet the proposal, permitting and building out the ‘green’ hydrogen production, transportation and storage facilities for most of the natural gas plants in Florida would take much longer than eight years and will be extremely costly.”

FMPA estimates EPA’s proposals could increase energy costs between 100% to 200% for all Florida customers. “This, combined with Florida families using more electricity than the average U.S. family due to heat and humidity and already rapidly increasing energy prices, creates challenges for customers,” FMPA pointed out in the news release.

Florida has one of the highest rates of residents living on a fixed or low income, especially with the state’s significant retiree population. Of FMPA’s members, which include all 33 public power utilities in the state, nearly half of the communities have average incomes that are 50% or less of the U.S. average.

“Our top priority remains providing affordable and reliable power to each of the 4 million Floridians served by our members,” said Williams.

In its comments, FMPA encouraged EPA to delay the rulemaking and consult with other federal agencies about the unique economic and power reliability consequences of its proposed rules.

The rule was published in the Federal Register on May 23, 2023.