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EIA reports that nuclear power on track to account for largest share of 2021 capacity retirements

January 12, 2021

by Paul Ciampoli
APPA News Director
January 12, 2021

The U.S. Energy Information Administration’s (EIA) on Jan. 12 said that 9.1 gigawatts (GW) of electric generating capacity are scheduled to retire in 2021 and that nuclear generating capacity will account for the largest share of total capacity retirements (56%), followed by coal (30%).

EIA reported the figures in its most recent inventory of electric generators.

At 5.1 GW, nuclear capacity retirements represent half of all total expected retirements in 2021 and 5% of the current operating U.S. nuclear generating capacity.

EIA noted that Exelon Corp. is scheduled to retire two of its Illinois nuclear plants, Dresden and Byron. Each of these plants has two reactors, and their total combined capacity is 4.1 GW. The Unit 3 (1.0 GW) reactor at the Indian Point nuclear power plant in New York state is scheduled to retire in April.

If all five reactors close as scheduled, 2021 will set a record for the most annual nuclear capacity retirements ever, EIA said.

The decrease of U.S. nuclear power generating capacity is a result of historically low natural gas prices, limited growth in electricity demand, and increasing competition from renewable energy, EIA said.

Meanwhile, after significant retirements of coal-fired electric generating capacity over the past five years, totaling 48 GW, coal retirements will slow in 2021, according to EIA.

It said that 2.7 GW of coal-fired capacity is scheduled to retire, which accounts for 1% of the U.S. coal fleet.

EIA said that these retirements will come primarily from older units, noting that the capacity-weighted average age of retiring coal units is more than 51 years old.

Nearly two-thirds of the capacity retirements are located in just four states: Maryland, Florida, Connecticut, and Wisconsin.

EIA said that the largest coal retirement in 2021 will be at Chalk Point in Maryland, where both of its coal-fired units — 670 megawatts combined — are expected to retire.

With respect to other energy sources, EIA said that more than 800 MW of petroleum-fired capacity and 253 MW of natural gas-fired capacity are scheduled to retire in 2021.

Almost all of the retiring petroleum capacity will be from the 786 MW unit at Possum Point in Virginia, while the largest natural gas retirement will be McKee Run (103 MW) in Delaware.

After operating for 34 years, a 143 MW biomass waste-to-energy plant in Southport, North Carolina, will retire in March, EIA said.

The More Things Change, the More They Stay the Same: Renewable Energy Growth Continues

January Issue, 2021

by Aaron Larson
POWER Magazine

Wind and solar power capacity and generation have been growing steadily for years, as efforts to halt climate change and a desire for clean energy have gained public support around the world. As renewable energy costs have come down, growth is now being driven by economics. New technologies could also find a place in the energy mix over the next decade, as research and development efforts begin to pay off.

Read complete article https://view.imirus.com/427/document/13483/page/29

NuScale Power, UAMPS execute agreements tied to development of small modular reactors

January 11, 2021

by Paul Ciampoli
APPA News Director
January 11, 2021

NuScale Power on Jan. 11 announced together with Utah Associated Municipal Power Systems (UAMPS) that it has executed agreements to facilitate the development of the Carbon Free Power Project (CFPP), which will deploy NuScale small modular reactors (SMRs) at the Idaho National Laboratory.

The CFPP will be comprised of nuclear power modules to be provided by NuScale. Electricity from the plant will be distributed to customers of 33 UAMPS member utilities in five states. Other western utilities are expected to join the project in the future.

The SMRs in the project will provide the flexibility to ramp up and down as needed to follow load and complement intermittent renewable supply.

Established in 1980, UAMPS is an energy services interlocal agency of the state of Utah. As a project-based consortium, UAMPS provides a variety of power supply, transmission and other services to its 47 members, which include public power utilities in six western states: Utah, California, Idaho, Nevada, New Mexico, and Wyoming.

Pursuant to the initial orders from UAMPS, Fluor Corporation and NuScale — as a subcontractor to Fluor — are to develop higher maturity cost estimates and initial project planning work for the licensing, manufacturing and construction of the CFPP.

The orders are the result of recently signed agreements to manage and de-risk the development of the CFPP. These include the Development Cost Reimbursement Agreement between UAMPS and NuScale, and the $1.355 billion multi-year financial assistance award from the U.S. Department of Energy to CFPP LLC, a wholly-owned subsidiary of UAMPS established to develop, own and operate the CFPP.

In addition, UAMPS and Fluor have signed a cost-reimbursable development agreement to provide estimating, development, design and engineering services to develop the site-specific cost estimates for deployment of the NuScale technology at the Idaho National Laboratory site.

Concurrently, UAMPS will continue to evaluate the size of the NuScale power plant as Fluor refines the engineering of alternatives to ensure that the plant is the best overall cost of energy and size to meet the CFPP participants’ subscription needs.

“The orders executed today allow for important progress in the development of the Carbon Free Power Project, and we are excited to take this next step alongside our partners NuScale Power and Fluor Corporation,” said Doug Hunter, UAMPS’ CEO and General Manager. “We are confident that NuScale’s small modular reactor will deliver affordable, stable, carbon-free energy to participating members, complementing and enabling large amounts of renewable energy in the region.”

The NuScale power plant will be located at the DOE’s Idaho National Laboratory site near Idaho Falls, Idaho.

NuScale’s SMR became the first and only design to ever receive approval from the NRC in August 2020.

NuScale and UAMPS expect that the initial orders will address the final step in the regulatory process to proceed with plans to build a NuScale Power Plant as they plan for and develop the Combined License Application (COLA) for the CFPP.

The UAMPS COLA is expected to be submitted to the Nuclear Regulatory Commission by the second quarter of 2023.

Nuclear Regulatory Commission review of the COLA is expected to be completed by the second half of 2025, with nuclear construction of the project beginning shortly thereafter.

CISA released cybersecurity and physical security convergence guide

January 11, 2021

by Paul Ciampoli
APPA News Director
January 11, 2021

The Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA) has released a new guide designed to provide guidance on converging cybersecurity and physical security functions.

The guide notes that today’s threats are a result of hybrid attacks targeting both physical and cyber assets.

The adoption and integration of Internet of Things and Industrial Internet of Things devices have led to an increasingly interconnected mesh of cyber-physical systems, “which expands the attack surface and blurs the once clear functions of cybersecurity and physical security,” the guide notes.

Meanwhile, efforts to build cyber resilience and accelerate the adoption of advanced technologies can also introduce or exacerbate security risks in this evolving threat landscape, the guide said.

“Together, cyber and physical assets represent a significant amount of risk to physical security and cybersecurity — each can be targeted, separately or simultaneously, to result in compromised systems and/or infrastructure,” CISA said.

“Yet physical security and cybersecurity divisions are often still treated as separate entities. When security leaders operate in these siloes, they lack a holistic view of security threats targeting their enterprise,” the guide noted. As a result, attacks “are more likely to occur and can lead to impacts such as exposure of sensitive or proprietary information, economic damage, loss of life, and disruption of national critical functions.”

Convergence is formal collaboration between previously disjointed security functions, the guide said. “Organizations with converged cybersecurity and physical security functions are more resilient and better prepared to identify, prevent, mitigate, and respond to threats. Convergence also encourages information sharing and developing unified security policies across security divisions.”

Benefits of convergence

CISA said that an integrated threat management strategy reflects in-depth understanding of the cascading impacts to interconnected cyber-physical infrastructure.

As rapidly evolving technology increasingly links physical and cyber assets, the benefits of converged security functions outweigh the challenges of organizational change efforts and enable a flexible, sustainable strategy anchored by shared security practices and goals, the guide said.

“While many utilities have not integrated physical and cybersecurity operations, it is especially important in the energy sector, to take a holistic risk-based approach when thinking about security”, said APPA’s Senior Director of Security & Resilience, Sam Rozenberg, CPP.

The guide includes a framework for aligning security functions, as well as a set of convergence case studies.

The guide is available here.

Public Power utilities recognized for residential customer satisfaction

January 8, 2021

by Paul Ciampoli
APPA News Director
January 8, 2021

Several public power utilities have earned high scores for residential customer satisfaction in a recently released J.D. Power study.

Overall, electric utility residential customer satisfaction for the industry is high, especially for customers that are aware of payment deferment and other good deeds offered by their utility during the pandemic, according to the J.D. Power 2020 Electric Utility Residential Customer Satisfaction Study, which was released in December.

The study is based on responses from 96,546 online interviews conducted from January through November 2020 among residential customers of the 143 largest electric utility brands across the United States, which represent more than 102 million households.

Scores are based on a 1,000-point scale and also covers investor-owned utilities and electric cooperatives.

In the Midwest midsize category, Nebraska public power utilities Lincoln Electric System (750 score) and Omaha Public Power District (749 score) were in the sixth and seventh spots, respectively. City Utilities was in the 13th spot with a score of 716.

In the South large segment, San Antonio, Texas public power utility CPS Energy ranked third with a score of 779.

In the South midsize segment, a total of 11 public power utilities earned a spot in the rankings as follows:

 In the West large utility segment, Arizona public power utility Salt River Project earned the top spot with a score of 806, while California public power utility SMUD came in second place with a score of 783. The Los Angeles Department of Water and Power was in the 12th spot with a score of 721.

In the West midsize segment, Washington State’s Clark Public Utilities earned the top spot with a score of 812, while California public power utility Anaheim Public Utilities earned a score of 764, landing it in the fourth spot.

Colorado Springs Utilities was in the fifth spot in the West midsize segment with a score of 761, while Seattle City Light was in the sixth spot with a score of 751. Washington State’s Snohomish County PUD was in the 10th spot with a score of 742, while California’s Imperial Irrigation District was in the twelfth spot with a score of 736.

Treasury Department solicits applications from cities, counties for renter assistance grants

January 7, 2021

by Paul Ciampoli
APPA News Director
January 7, 2021

The U.S. Department of Treasury is soliciting applications due next Tuesday, from cities and counties with more than 200,000 population for direct grants from a $25 billion renter assistance program established as part of the Consolidated Appropriations Act of 2020.

While smaller cities and counties can still benefit from the program, it appears they will have to rely on a subgrant from their state.

Under the program, not less than 90 percent of awarded funds must be used for direct financial assistance, including rent, rental arrears, utilities and home energy costs, utilities and home energy costs arrears, and other expenses related to housing. 

Remaining funds are available for housing stability services, including case management and other services intended to keep households stably housed, and administrative costs.  Funds generally expire on Dec. 31, 2021. 

The Treasury Department will make allocations of the $25 billion Emergency Rental Assistance fund to states, U.S. territories, local governments with more than 200,000 residents, and Indian tribes (defined to include Alaska native corporations) or the tribally designated housing entity of an Indian tribe, as applicable. 

Completed payment information and a signed acceptance of award terms form generally must be submitted not later than 11:59 p.m. ET on January 12, 2021, to ensure payments are made within the 30-day period specified by the statute. Eligible grantees that do not provide complete information by that deadline may not receive an Emergency Rental Assistance payment. 

The American Public Power Association does not believe public power utilities will be eligible to be direct recipients of such funds. But larger cities and counties which operate public power utilities are. Likewise, public power utilities may be operating in, but not operated by, grant-eligible counties.

Because this is primarily a rent-assistance program, APPA shares concerns with the National Energy Assistance Directors Association (NEADA) that customers may not have ready ability to use this program for energy needs.

For utilities serving cities or counties that are not eligible to receive a direct grant, APPA is encouraging those utilities to reach out to local LIHEAP and housing agencies, which may receive direct grants from the utilities’ state and/or to their state LIHEAP and housing agencies.

Silicon Valley Clean Energy receives “A” issuer credit rating from S&P Global Ratings

January 7, 2021

by Paul Ciampoli
APPA News Director
January 7, 2021

S&P Global Ratings on Jan. 5 assigned an “A” issuer credit rating to Silicon Valley Clean Energy (SVCE), a California community choice aggregator.

This credit rating, the second investment-grade credit rating for SVCE, “reflects the assessment completed by S&P Global, and speaks to SVCE’s financial strength and robust energy risk management policies,” SVCE said in a news release.

“New opportunities from this credit rating allow SVCE to provide affordable clean electricity while continuing to fund innovation and decarbonization programs within the SVCE service area,” said SVCE CEO Girish Balachandran.

SVCE said that S&P Global’s “A” rating recognizes the stability of the customer base since service began in 2017, a diverse clean power supply, low rates and internal credit-supportive policies seen at SVCE.

S&P Global views SVCE financial and enterprise profiles as strong, with approximately $160 million in cash reserves, the CCA said.

In addition, the rating will enable SVCE to negotiate new energy supply contracts at lower costs, resulting in lower energy rates for customers, it noted.

In 2020, SVCE received a Baa2 credit rating from Moody’s Investors Service.

The American Public Power Association has initiated a new category of membership for community choice aggregation programs.

DOE releases roadmap to boost U.S. energy storage manufacturing

January 7, 2021

by Peter Maloney
APPA News
January 7, 2021

The U.S. Department of Energy, in late December, released its plan to ramp up manufacturing capability so that the country’s demand for the energy storage can be filled by domestic sources by 2030.

The Energy Storage Grand Challenge Roadmap, the DOE’s first comprehensive energy storage strategy, calls for accelerating the transition of storage technologies from the lab to the marketplace, focusing on ways to competitively manufacture technologies at scale in the United States, and ensuring secure supply chains to enable domestic manufacturing.

Under the slogan “Innovate Here, Make Here, Deploy Everywhere,” the DOE’s roadmap identifies initial cost targets focused on user-centric applications with substantial growth potential.

For long duration stationary storage applications, the roadmap aims at achieving $0.05 per kilowatt hour (kWh), a 90 percent reduction from 2020 baseline costs by 2030.

Reaching that target would facilitate commercial viability for storage across a wide range of uses such as meeting load during periods of peak demand and ensuring reliability of critical services, the DOE said.

For electric vehicle battery packs, the roadmap target is $80/kWh by 2030 for a 300-mile range electric vehicle, a 44 percent reduction from the current cost of $143/kWh.

Reaching that target would lead to cost competitive electric vehicles and could benefit the production, performance, and safety of batteries for stationary applications, the DOE said.

In conjunction with the release of the Energy Storage Grand Challenge Roadmap, the DOE also released two companion reports, the 2020 Grid Energy Storage Technology Cost and Performance Assessment and the Energy Storage Market Report 2020, which contain data that informed the roadmap and provide further information for the energy stakeholder community.

“Energy storage has an important role to play in our Nation’s energy future,” Secretary of Energy Dan Brouillette said in a statement. “DOE worked closely with a wide range of stakeholders and partners to develop this actionable Roadmap to help bring promising energy storage technologies to market and position the United States as a global leader in energy storage solutions.”

NPPD signs letter of intent tied to procurement of renewable energy resources

January 6, 2021

by Paul Ciampoli
APPA News Director
January 6, 2021

In order to facilitate Monolith Materials’ proposed $1 billion expansion of its Olive Creek facility near Hallam, Neb., Nebraska Public Power District and Monolith have signed a letter of intent outlining their intention to procure enough renewable energy resources to generate two million megawatt-hours annually.

NPPD President and CEO Tom Kent said NPPD will solicit bids for the project through a request for proposals (RFP) for new wind or solar generation, including energy storage, through a power purchase agreement.

The news was unveiled on Jan. 4 by Nebraska Gov. Pete Ricketts and representatives of NPPD, Monolith Materials, and Norris Public Power District during a joint announcement regarding the facilitation of a significant addition to the renewable energy landscape in the state.

Kent noted that the approximately two million megawatt-hours of generation would create a sufficient number of renewable energy certificates (RECs) to meet 100 percent of Monolith’s average annual energy usage and meet the company’s environmental and sustainability goals.

“While we are adding additional generation resources, NPPD will continue to maintain our highly competitive rates, which was one of the reasons Monolith moved its operations to Nebraska,” he said.

Kent noted that to reach that generation figure, the renewable resource projects could be comprised of wind, solar, or a mix of the two.

NPPD will be securing the generation resources and power to the facility will be delivered by Norris Public Power District, a wholesale customer of NPPD.

Olive Creek 1 (OC1), Monolith’s first production facility, is already utilizing RECs to offset 100% of its electricity needs.

With the new agreement, Monolith plans a mix of solar and wind generation resources along with battery energy storage to provide sufficient renewable power to offset its OC1 and OC2 operations in the future.

NPPD is expecting to enter into power purchase agreements by Sept. 1, 2021, with commercial operations expected to begin no later than Dec. 31, 2025.  

NPPD plans to issue the request for proposals in March 2021 and a shortlist will be developed for further negotiations.

Additional details about Monolith Materials are available here.

APPA works to ensure availability of $25 billion rental assistance program

January 6, 2021

by Paul Ciampoli
APPA News Director
January 6, 2021

The American Public Power Association is working with the National Energy Assistance Directors Association (NEADA) to ensure that a $25 billion rental assistance program authorized under the COVID relief bill signed into law by President Trump in December will be available to help renters pay their rent and utility bills as intended by Congress.

The program will be administered by the states, tribes, and territories and under the new law, funds can be used to help renters pay rent, rental arrears, utilities and home energy costs, and utilities and home energy costs arrears.

NEADA is the primary educational and policy organization for the state directors of LIHEAP, a federal program that provides formula grants to states to help low-income families pay their heating and cooling bills.

Increased funding for LIHEAP has been a top priority for APPA.

NEADA believes that in states where the LIHEAP office falls under the same auspices as the state’s housing agency, the use of program funds for both rent and utility payments will be readily coordinated. For example, there might be a way to use the LIHEAP system to sign up renters for this new program. However, states where the LIHEAP office is housed in an energy or other agency will have a much harder time coordinating.

Likewise, local agencies that jointly operate housing and energy programs will also be able to more easily coordinate.

In either instance, NEADA and APPA are working together to develop guidance to ensure that program funds are available for rent and utility assistance nationwide.

By way of initial guidance, NEADA suggests that local utilities should reach out to their LIHEAP and housing agencies with information on their best estimate of the number of renters in the service territory who are behind on their energy bills.

Local utilities should also offer to provide lists of names of renters who are behind who need help, NEADA said.

And utilities can also offer to help facilitate a process where they inform their customers that funding is available and provide access to applications and point of contact local agencies to sign up for help.

In addition, NEADA said that local utilities could provide funding to local agencies to help pay for extra staff to sign people up or provide supplemental staff.

President Trump in late December signed into law H.R. 133, the Consolidated Appropriations Act of 2021, the $2.6 trillion end-of-year bill, which includes roughly $900 billion in COVID relief, $328 billion in tax relief, and $1.4 trillion in fiscal year 2021 spending.