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NYPA Gets New Authority to Develop, Own and Operate Renewable Energy Projects

May 4, 2023

by Paul Ciampoli
APPA News Director
May 4, 2023

The New York Power Authority has been given new authority to develop, own, and operate renewable energy generating projects, either alone or in collaboration with other entities, under a recently enacted state budget, NYPA said on May 3.

The new authority will allow NYPA to assist the state in meeting its clean energy targets, including producing 70% of the state’s electricity from renewable sources by 2030 and creating a zero-emission statewide electrical system by 2040.

In addition, NYPA will lead the state’s effort to decarbonize its electric grid by ceasing fossil fuel-based electricity production at its peaker power plants by 2030. NYPA will also develop action plans to decarbonize 15 of the highest emitting state facilities.

NYPA is formalizing internal task forces charged with advancing the key pillars of the new legislation: renewable development, a new Renewable Energy Access and Community Help program to benefit disadvantaged communities, labor training and NYPA peaker plant retirement. One action already underway is a review of the Power Authority’s own assets for renewable development.

“I have directed Power Authority leadership to immediately analyze all NYPA-owned land for potential renewable development opportunities,” said NYPA Acting President and CEO Justin Driscoll. “We will use every tool available to ensure that the Power Authority leads the effort to advance the Governor’s bold climate action priorities for the benefit of all New Yorkers.”

NYPA said it will now begin extensive work toward the publication of its first two-year strategic plan, outlining its strategies and proposed renewable projects, after collaboration with stakeholders and a public comment process that includes public hearings. The plan will be updated at least annually after public comment.

In addition, the Power Authority said it will develop and publish 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.

NYPA will also consider the appropriateness of using the plants and the sites for renewable generation, energy storage or electric grid support needs.

The law also empowers NYPA, in partnership with the Public Service Commission, to support disadvantaged communities with the new Renewable Energy Access and Community Help program.

The program will enable low-income and moderate-income electricity consumers to receive bill credits through the production of renewable energy products developed by or for NYPA in New York.

In addition, the enactment authorizes NYPA to contribute up to $25 million annually to the Department of Labor for workforce development in the renewable energy sector.

NYPA expects to be able access new and existing federal tax credits provided by the Inflation Reduction Act of 2022 to lower the costs of certain renewable energy projects that it would undertake under the enactment. The IRA tax credits, such as the investment tax credit and the production tax credit, are now directly payable to governmental and other non-taxable entities like NYPA.

NYPA also will leverage its energy service and engineering expertise to assist the 15 highest emitting state facilities by creating decarbonization action plans for the facilities.

“The action plans will accelerate the state’s progress toward a cleaner building sector, support the creation of high-quality jobs at future decarbonization projects—including thermal energy networks—and move the state closer to reaching its climate goals,” NYPA said.

Draft RFP in Massachusetts Calls for Procurement of Up to 3,600 MW of Offshore Wind

May 4, 2023

by Paul Ciampoli
APPA News Director
May 4, 2023

The Massachusetts Department of Energy Resources and investor-owned utilities in the state jointly filed a draft request for proposals with the Massachusetts Department of Public Utilities, which if approved, will invite submittals for offshore wind generation to procure up to 3,600 megawatts.

The draft RFP’s capacity figure represents 25 percent of the state’s annual electricity demand and a significant increase over a previous procurement, which sought approximately 1,600 MW of offshore wind. This would be the largest procurement for offshore wind energy generation ever in New England.

As drafted, the RFP will allow DOER to consider in its evaluation direct and indirect costs and benefits, environmental and socioeconomic impacts from siting, and diversity, equity, and inclusion plans.

The RFP also allows for additional flexibility in proposals. To account for challenges driven by inflation and other macroeconomic trends, the draft RFP allows bidders to submit an alternative indexed pricing proposal intended to reduce risk to bidders and ratepayers.

The RFP also accounts for the potential for savings resulting from federal tax credits. The RFP requires details on how the bids would utilize applicable tax credits and allows for flexibility in the RFP schedule if IRS program guidance on the Inflation Reduction Act is announced late in the bid preparation timeline.

The procurement team would have flexibility to evaluate bids ranging from 400 MW to 2,400 MW in size, and to select a project or projects that bring significant benefits to the Commonwealth. 

Under the proposed timeline, bids are due January 31, 2024. This proposed timeline allows project developers to incorporate several emerging initiatives, including anticipated federal program guidance on tax credits, federal grants for transmission upgrades, and additional coordination with regional state partners.

Lawmakers Ask FERC Commissioners to Respond to Questions on Grid Reliability

May 3, 2023

by Paul Ciampoli
APPA News Director
May 3, 2023

House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and Energy, Climate and Grid Security Subcommittee Chair Jeff Duncan (R-SC) recently sent a letter to Federal Energy Regulatory Commission Commissioners asking the agency to respond to a series of questions related to grid reliability.

The lawmakers asked FERC Commissioners to comment on whether they believe the current Regional Transmission Organizations or Independent System Operators are the best mechanism to provide reliable electricity.

The Commissioners were also asked whether they think current market rules allow dispatchable, on-demand generation resources the opportunity to recover sufficient revenues to continue to operate in the RTOs/ISOs? “If so, which rules? If not, would you recommend FERC direct RTOs/ISOs to implement such rules?”

The letter also included the following questions:

The chairmen asked that FERC respond by May 10, 2023.

New England Grid Operator Sees Demand on Grid Increasing by About 23% Over Next Decade

May 2, 2023

by Paul Ciampoli
APPA News Director
May 2, 2023

ISO New England projects demand on the region’s power grid will increase by about 23% over the next decade due to accelerating electrification of the heating and transportation sectors.

The findings were published in the 2023–2032 Forecast Report of Capacity, Energy, Loads, and Transmission (CELT Report), a primary source for assumptions used in the ISO’s system planning and reliability studies.

The report provides a snapshot of the New England power system, including:

ISO New England said that gross annual electricity use is expected to grow by 2.4% annually over the 10-year period, while net annual use is expected to grow by 2.3% annually.

Energy efficiency is projected to reduce grid demand by 11,582 GWh this year and 12,810 GWh in 2032, while behind the meter PV is projected to reduce grid demand by 4,442 GWh this year, rising to 8,168 GWh in 2032.

EVs are expected to account for 13,961 GWh of grid demand in 2032, while heating electrification is expected to account for 7,334 GWh of demand that year.

Under typical summer weather conditions, gross peak demand is expected to rise annually at a rate of 1.2%. Net peak demand is expected to rise at an annual rate of 1.1%. For weather that is hotter than average, the gross peak is expected to rise 1.1% annually and the net peak 1.0%.

The net forecast includes summer peak demand reductions from behind the meter PV of 981 MW this year, rising to 1,117 MW in summer 2032.

Energy efficiency is expected to reduce summer peak demand by 1,969 MW this year, and by 2,436 MW in 2032, while transportation electrification is expected to contribute 2,346 MW to summer peak demand in 2032.

Public Power Utilities Recognized for Outstanding Safety Practices

May 2, 2023

by Paul Ciampoli
APPA News Director
May 2, 2023

One hundred sixty-six utilities have earned the American Public Power Association’s Safety Award of Excellence for safe operating practices in 2022.

APPA said that 283 utilities from across the country entered the annual Safety Awards. Entrants were placed in categories according to their number of worker-hours and ranked based on the incident-free records and overall state of their safety programs and culture during 2022.

A utility’s incidence rate is based on its number of work-related reportable injuries or illnesses and the number of worker-hours during 2022, as defined by the Occupational Safety and Health Administration.

“Safety needs to be the first thing on every utility employee’s mind as they go about their work, said Jim Boyd, Chair of APPA’s Safety Committee and Electric Operations Safety Manager at Tacoma Power in Washington. “The utilities honored by APPA for excellence in this area should be proud of the culture they have instilled in serving their communities.”

The Safety Awards have been held annually for more than 65 years. A complete list of winners is available at www.PublicPower.org.

Legislation Would Shift the Southwestern Power Administration to a Self-Financing Model

May 2, 2023

by Paul Ciampoli
APPA News Director
May 2, 2023

Senators Jerry Moran (R-KS) and Roger Marshall (R-KS) on April 28 introduced a bill that would move the Southwestern Power Administration to a self-financing model.

The bill, S. 1324, the Southwestern Power Administration Fund Establishment Act, would address the long-term shortfall SWPA faces in receiving funding authority for purchase power and wheeling needs used to plan for and respond to drought, as well as to support long term capital investments for hydropower assets.

The bill Southwestern Power Administration Fund Establishment Act would give the SWPA the authority to operate on a self-funding, revolving Treasury fund to help provide long-term stability to SWPA.

“This would give the SWPA more stable funding in order to lower customer rates, which can be highly volatile due to market demand and weather,” the lawmakers said in a news release.

“Furthermore, this legislation would provide SWPA more clarity to help plan long-term infrastructure improvements and power replacement. This bill will also allow SWPA to avoid drastic and unnecessary spikes in power rates charged to its wholesale customers in an extreme or multi-year regional drought situation,” they said.

The SWPA customer group, Southwestern Power Resources Association, supports this legislation, as does the American Public Power Association.

SWPA is one of four Power Marketing Administrations in the U.S. Its service territory includes Arkansas, Kansas, Louisiana, Missouri, Oklahoma and Texas.

Predictive Software Could Help Integrate Renewables, Reduce Need for Storage

May 2, 2023

by Peter Maloney
APPA News
May 2, 2023

Predictive software could reduce the amount of energy storage needed to transition to a economy that includes growth in renewable energy, according to a new study from the National Renewable Energy Laboratory.

The study, Shifting Demand: Reduction in Necessary Storage Capacity Through Tracking of Renewable Energy Generation, proposes an alternative approach to bridging the mismatch between peak demand and peak generation in an electric system that is increasingly relying on intermittent sources of generation, such as wind and solar power.

One solution to that problem is to store peak generation and dispatch it during times of peak demand using utility scale battery energy storage systems but, as an alternative, the study’s authors analyzed a means of shifting demand by using a forecast-aided predictive control algorithm.

While battery energy storage systems can improve dispatchability, the study’s authors noted that the technology has “several challenges,” including inadequate safety validation, degradation of the batteries and “most crucial,” cost of the systems. “Due to these challenges, it may be beneficial to limit the total BESS capacity required for deployment,” the authors wrote.

Alternatively, the use of forecast-aided predictive control can shift demand “considerably to more closely track” a renewable energy signal, the study found. “This significantly reduces the size of the required utility-scale BESS,” the authors said.

The study analyzed a forecast-aided predictive control algorithm that is used to autonomously control both electric vehicle charging stations and the heating, ventilation, and air conditioning systems in buildings.

Electric vehicles and hybrid electric vehicles, along with heating and cooling systems for buildings, already account for roughly 10 and 40 percent of electric demand, respectively, and both are poised to increase with calls to decarbonize the economy. So, shifting demand for electric vehicles and buildings is “imperative” and provided the framework for the study, the authors said.

“We have an idea of how many people will be in the building, and then from there we can get an estimate of how many electric vehicles will be arriving at the charging station,” Dylan Wald, a graduate intern at the National Renewable Energy Laboratory, a Ph.D. student and lead author of the study, said in a statement. “Everything is intertwined, and we can leverage this interconnectedness.”

The study on forecast-aided predictive control was based on research the National Renewable Energy Laboratory did last year that showed electric vehicle charging and buildings can work together to provide services to the grid. The improved algorithm took that work a step further by including forecasts to improve real-time tracking ability by taking into account how much wind and solar power will be generated, as well as the temperature and time of day and week in order to estimate the energy demand for a building and charging stations, the study’s authors said.

The analysis indicated that under days of more intermittent renewable generation, forecast-aided predictive control performed adequately, however, the performance of the algorithm decreased during weekends when demand is less significant and less flexible. The analysis also found that the forecast-aided predictive control performance is sensitive to the accuracy of the forecasts incorporated in the algorithm.

“This work is showing us you don’t always need such a big battery,” Jennifer King, a research engineer at the National Renewable Energy Laboratory and co-author of the study, said in a statement. “You likely still need a smaller battery.”

“That’s a huge implication because we may run into supply chain issues with batteries needed for the grid or for EV charging. We need a different solution,” King said.

First Solar-Plus-Storage Project by a Municipality on Long Island is Completed

May 2, 2023

by Paul Ciampoli
APPA News Director
May 2, 2023

New York Gov. Kathy Hochul on April 20 announced the completion of the first solar-plus-storage project by a municipality on Long Island, now operating in the Town of East Hampton.

The rooftop array makes the Parks Department building at the Town Hall campus the first building in the town to achieve the goal of net zero carbon emissions from electricity generation. The project, developed with the New York Power Authority, supports New York State’s goal to procure 70 percent of its electricity from renewable energy by 2030, and the Town of East Hampton’s goal of community-wide renewable energy only in all sectors, also by 2030.

The 165-panel system is tied directly into the Long Island Power Authority’s distribution grid and will provide about 90 megawatt hours of energy annually.

The 75-kilowatt solar PV system will generate renewable energy and charge a 137-kilowatt hour battery. It is expected that 100 percent of the energy costs of the building will be offset with credits from the energy produced by the solar PV system. Any additional energy credits will be allocated to another building on the Town Hall campus.

The town, in collaboration with the Power Authority, selected New York-based Solar Liberty and its financing partner on the project, Inclusive Prosperity Capital, through a competitive process to develop the solar-plus-battery storage system. 

The solar PV system will be financed through a 20-year power purchase agreement with Inclusive Prosperity Capital, with no upfront costs to the town. A PPA also enables the Town to benefit from cost offsets provided by tax credits. 

The battery was added at no cost to the town through grant support from NYPA.

NYPA recommended the system’s installation as part of East Hampton’s ongoing efforts to move toward a 100 percent renewable energy goal. NYPA Distributed Energy Resource Advisory Services assisted as advisor throughout implementation.

The New York State Energy Research and Development Authority has committed nearly $35,000 to the project through its Retail Energy Storage Program, which provides funding to commercial customers for standalone, grid-connected energy storage or systems paired with a new or existing clean on-site generation like solar.

LIPA and Energy Storage

For its part, LIPA has also pursued energy storage. LIPA previously installed a 10 megawatt storage project and in 2021 PSEG Long Island issued a request for proposals on behalf of LIPA for bulk energy storage.

Lubbock Power & Light Lowers Electric Rate Heading Into Summer

May 1, 2023

by Paul Ciampoli
APPA News Director
May 1, 2023

Texas public power utility Lubbock Power & Light is lowering the power cost recovery factor portion of its electric rate for the summer.

The summer 2023 rate for a residential customer is an 18.7% rate decrease as compared to the current winter rate, resulting in substantial savings for all customers throughout the hottest months of the year when electricity use is at its highest, it said.

The PCRF is the amount LP&L pays to purchase or generate power, passed directly through to customers with no mark-up.

During an April board meeting, the LP&L Electric Utility Board voted unanimously to implement the electric utility staff’s recommendation for a rate decrease. The reduced rate is effective for all residential and commercial customers May 1 through September 30, 2023.

“LP&L is committed to providing our customers with safe, affordable and reliable power in our last summer as a power provider,” said Joel Ivy, director of electric utilities. “We’re thankful we are in a position to pass on savings to our customers when they need it most.”

The rate reduction is possible due to LP&L negotiating lower wholesale power costs in current power contracts and low natural gas prices.

Public Power Utilities Earn Reliable Public Power Provider Designation from APPA

May 1, 2023

by APPA News
May 1, 2023

One hundred nine of the nation’s more than 2,000 public power utilities earned the Reliable Public Power Provider designation from the American Public Power Association for providing reliable and safe electric service.

The RP3 designation, which lasts for three years, recognizes public power utilities that demonstrate proficiency in four key disciplines: reliability, safety, workforce development, and system improvement. Criteria include sound business practices and a utility-wide commitment to safe and reliable delivery of electricity.

This year, 109 utilities earned the designation, and a total of 271 public power utilities nationwide hold the RP3 designation. 

“Receiving an RP3 designation is a great honor signifying a utility has demonstrated commitment to industry best practices,” said Troy Adams, Chair of APPA’s RP3 Review Panel and General Manager at Manitowoc Public Utilities, Wisconsin. “And ultimately, the culture developed from this pursuit of excellence and continued improvement through the RP3 program results in measurable value delivered to the local community.”  

This is the eighteenth year that RP3 recognition has been offered. A full list of designees is available on the APPA website.