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Western Minnesota Municipal Power Agency Board Approves Solar Plus Storage Agreement

April 5, 2023

by Paul Ciampoli
APPA News Director
April 5, 2023

The Western Minnesota Municipal Power Agency’s Board of Directors has approved a build-own-transfer agreement with US Solar for the development and construction of the Marshall Solar Plus project in Marshall, Minnesota. The action followed a recommendation by the Missouri River Energy Services Board of Directors.

The solar project will have a rated capacity of 10 megawatts and is expected to produce about 22,470 megawatt-hours of electricity annually.  Marshall Solar Plus will include over 26,000 solar panels on 57 acres of land owned by WMMPA and a substation owned by Marshall Municipal Utilities.

WMMPA will also install a 5 MW battery energy storage system. WMMPA intends to have controls on the battery system to allow energy to be stored or injected into the grid based on conditions at the time.

Site-grading work has already begun and will be completed prior to construction of the project. US Solar will obtain state and local permits for the project as it develops, designs and constructs the project. US Solar was selected in part because of their substantial track record in Minnesota, having developed and completed over 85 individual projects.

WMMPA expects to submit an application to MMU in the near future with the intent to finalize an interconnection agreement. WMMPA will provide financing for the project.

WMMPA is a joint-action agency made up of MRES members in Minnesota. It has provided financing for all of the major generation and transmission facilities with which MRES serves its 61-member municipal electric systems in Iowa, Minnesota, North Dakota and South Dakota.

MRES has a power supply agreement with WMMPA obligating MRES to pay for and WMMPA to supply the entire output of WMMPA-owned facilities. MRES, in turn, has long-term power sales agreements with its members to supply them with wholesale power, energy and transmission to serve their customers.

MMU is a community-owned, not-for-profit municipal utility serving the residents and businesses of Marshall, Minnesota. MMU provides electricity and water service to over 6,500 customers, along with a variety of energy services.

APPA Highlights Impact of Treasury Department’s Energy Communities Guidance on Public Power

April 4, 2023

by Paul Ciampoli
APPA News Director
April 4, 2023

The American Public Power Association on April 4 said it appreciates the Treasury Department’s release of guidance on energy communities.

APPA said it continues to review the guidance, but key aspects appear to provide clarity and reliability where needed. In turn, the energy community provision is a key element of the Inflation Reduction Act (IRA) and could provide substantial benefits to public power utilities, which serve customers in every state (except Hawaii), as they transition to clean technologies. 

In addition to extending and expanding a variety of critical energy tax incentives, the IRA created a refundable direct pay mechanism to ensure that all utilities can benefit from these incentives, including bonus credits for projects sited in energy communities.

Without such a mechanism, public power utilities and electric cooperative utilities — which both operate as non-profit, tax-exempt entities — would be effectively blocked from owning tax creditable energy projects.

These utilities collectively serve nearly 30 percent of U.S. customers, so allowing them to benefit from energy tax provisions for projects they own makes these tax incentives more effective, while also ensuring that no communities — including energy communities — are left behind. 

Since the IRA’s enactment, APPA has asked that implementing guidance be clear, simple, and certain. For example, Treasury’s guidance allows a safe harbor for entities which qualify as energy communities when project construction begins. This is a step in the right direction, which APPA appreciates.

APPA said it will continue to review the guidance, “but again appreciate the work being done here by the Treasury Department, Internal Revenue Service, and Department of Energy.”

While these are draft proposed regulations, Treasury said that the regulations are effective as of April 4. Treasury did not say when it would formally introduce the proposed regulations but that stakeholders can rely on the proposed regulations until final guidance is published.

Additionally, Treasury is seeking comments regarding possible data sources for determining a community’s fossil fuel tax revenues. Comments should be submitted by May 4, 2023. At this time, Treasury is not seeking comments on other issues covered by the draft regulations.

Treasury has also launched a “mapping tool” to help communities determine whether they qualify as an energy community.

First, the map shows the census tracts and directly adjoining tracts that have had coal mine closures since 1999 or coal-fired electric generating unit retirements since 2009. These census tracts qualify as energy communities.

Second, the map shows the metropolitan statistical areas (MSAs) and non-metropolitan statistical areas (non-MSAs) that have had 0.17% or greater direct employment related to extraction, processing, transport, or storage of coal, oil, or natural gas. Annual employment rates at the county level for 2022 will be released later this month and the map will be updated to show the MSAs and non-MSAs that meet both the 0.17% employment threshold and the unemployment rate requirement.

The map does not indicate which areas might have a qualifying brownfield site, but Treasury believes that guidance alone should be sufficient for a community to make that determination.

Satisfaction With Cost of Charging EVs Declined Last Year, J.D. Power Study Finds

April 4, 2023

by Peter Maloney
APPA News
April 4, 2023

Satisfaction with the cost and time of charging an electric vehicle at home has declined over the past year, according to a new study by J.D. Power.

A total of 83 percent of electric vehicle owners use Level 2 portable or permanently mounted home charging stations, their satisfaction with the cost of charging declined from last year’s 2022 study by more than 30 points, on a 1,000-point scale, in each segment, the report, U.S. Electric Vehicle Experience (EVX) Home Charging Study, found.

Of the 68 percent of electric vehicle owners who use a Level 2 permanently mounted charging station, their overall satisfaction declined 12 points year-over-year to 740, according to the study.

Over the past year, the electric vehicle marketplace has encountered rising electricity rates, in part, because of the recent inflationary period in the United States, the study’s authors said.

The declines in owner satisfaction carried across all regions of the United States, but New England saw the steepest decline, falling 27 points to 689, while electric vehicle owners in the East South Central region reported the highest levels of satisfaction, 785 points, with the cost of charging.

Satisfaction also generally improved, by 179 points, when owners moved up from a level 1, 120-volt charger to a Level 2, 240-volt charger.

The study also found that 35 percent of electric vehicle owners reported always scheduling their home charging time, while 49 percent said they do not use any scheduling. And owners who schedule their charging times using the vehicle’s app reported more satisfaction than owners who use the charger’s mobile app. 

Driver satisfaction with the speed of home charging also declined, with owners of 2022 and 2023 model electric vehicles reporting less satisfaction with their home charging speeds – ratings of 605 and 597, respectively – than owners of 2021 and 2020 model electric vehicles, by ratings of 616 and 608, respectively, the study found.

The study’s authors also noted that while electric vehicle owners’ awareness of utility electric vehicle programs and incentives rose slightly, there is room for improvement.

Only 51 percent of electric vehicle owners said they were knowledgeable about utility programs for charging electric vehicles at home, compared with 49 percent a year ago.

There is little awareness and utilization of benefits, such as programs designed to save electric vehicle owners charging costs by scheduling to charge during the most affordable time of the day, the study found.

NYPA, Partners Complete Study Tied to Weather Forecasting for Solar Energy

April 3, 2023

by Paul Ciampoli
APPA News Director
April 3, 2023

The New York Power Authority and research partners have completed a multi-year study to help New York State’s growing solar industry deploy weather forecasting technology to better anticipate power generation and improve electric grid reliability, NYPA said on March 30.

The project addresses challenges raised by the uncertainty related to solar output by offering advanced forecasting methods and making a roadmap to help maintain grid reliability, optimize production of renewables, and reduce operating costs.

The technology informs and will help advance New York State’s goal of at least ten gigawatts of distributed solar by 2030 and move New York closer to its goal of 70% renewable generation by 2030 and a zero-emission electricity sector by 2040, NYPA said.

The study, the final $1.5 million phase of a $2.4 million project, lays out lessons learned for how forecasting can be deployed, improved and integrated into New York State to allow grid operations to remain effective as solar becomes more integral to day-to-day grid operations.  

The research was funded by NYPA, the New York State Energy Research and Development Authority and the U.S. Department of Energy Solar Energy Technologies Office, and co-managed by EPRI, an independent, non-profit energy R&D institute.

Other partners included National Center for Atmospheric Research, Brookhaven National Lab and the State University of New York at Albany. Advisors included the New York Independent System Operator and Central Hudson, a New York distribution utility.

BNL, with assistance from the University of Albany, deployed high-definition digital cameras in sky-imager networks and advanced weather forecasting models focused on solar forecasting, combined with advanced data from the NYS Mesonet, a statewide network of weather stations, and other resources.

Advanced predictive methods, along with various hardware and software systems, were developed and evaluated against forecasts currently in use to show the benefits of more detailed models and data.

The study relied on an open source, gridded solar power forecasting system developed by scientists at NCAR. NYSolarCast makes predictions of global horizontal irradiance every 15 minutes for a three-kilometer grid covering all of New York, which are then used to predict solar power generation for both utility-scale photovoltaic plants and distributed (mostly rooftop) PV installations. NYSolarCast leverages machine learning techniques trained on NCAR-based weather prediction models, NYS Mesonet observations and historical data from PV plants across New York.

The study helped develop an underlying platform for solar and other utility-related weather forecasting, including building load management, based on improved solar irradiance forecasts. However, results indicated that the solar industry needs to acknowledge the need for growth and take steps to be more transparent by sharing data, having better maintenance and monitoring instrumentation, and filtering out erroneous data.

 The research identified several possible ways the forecast models could be deployed and the feasibility of each: incorporation of research by a forecast provider, public deployment, or deployment by a private entity.

The new models could also form the basis of improved commercial tools. Several companies currently provide forecasting services for New York State, particularly for day ahead operations based on weather modeling.

Improved forecasts could be applied to individual solar plants and to predict distributed solar across a large region, not only for NYISO, but also for generation, transmission and distribution companies, private developers, and end user customers, NYPA said.

Read the report here.

Treasury Department Releases Notice of Proposed Rulemaking on New EV Tax Credit

April 3, 2023

by Paul Ciampoli
APPA News Director
April 3, 2023

The Treasury Department on March 31 announced a Notice of Proposed Rulemaking regarding vehicle eligibility under the new electric vehicle tax credits created by the Inflation Reduction Act.

The Notice of Proposed Rulemaking “provides clarity and certainty to manufacturers on the Inflation Reduction Act requirements that vehicles eligible for the clean vehicle credit undergo final assembly in North America and do not exceed a Manufacturers Suggested Retail Price of $80,000 for a van, pickup truck, or sport utility vehicle, or $55,000 for any other vehicle,” the Treasury Department said in a news release.

Building on the anticipated approach detailed in a white paper released in December, the Notice of Proposed Rulemaking also explains how manufacturers may satisfy the critical mineral and battery component requirements under the Inflation Reduction Act.

To be eligible for a $7,500 credit, clean vehicles must meet sourcing requirements for both the critical minerals and battery components contained in the vehicle. Vehicles that meet one of the two requirements are eligible for a $3,750 credit.

The Notice of Proposed Rulemaking is open for public comment and will be formally published on April 17, 2023, and vehicles placed in service on or after April 18, 2023, will be subject to the requirements of the rule, including the battery and critical mineral requirements.

At that time, FuelEconomy.gov will have a list of eligible vehicles that manufacturers have indicated to the IRS meet the new requirements to claim the tax credit.

Click here for additional details.

Public Power Lineworkers Earn Awards at National Lineworkers Rodeo

April 3, 2023

by Paul Ciampoli
APPA News Director
April 3, 2023

Seven journeyman teams and 15 individual apprentices won awards at the American Public Power Association’s twenty-first annual Public Power Lineworkers Rodeo, held March 31-April 1, in Kansas City, Kansas.

Forty-five journeyman teams and 100 apprentices competed. Forty-one utilities had competitors in the apprentice and/or journeyman competitions. The “rodeo” is a series of competitive events demonstrating lineworker skills and safe work practices.

rodeo

“We’re so pleased by the participation this year of lineworkers representing public power utilities from communities across the nation,” said Jeff Haas, APPA Acting President & CEO. “The friendly competition is all about safety, training, comradery, and pride in the craft.”

The awards honor lineworkers’ expertise, and the events are judged on safety, work practices, neatness, ability, equipment handling, and timely event completion. All safety rules established by APPA’s 17th edition Safety Manual were observed during events.

rodeo

There are two levels of competition within the rodeo: journeyman and apprentice. The journeyman teams consist of three members – two climbers and a ground person – and can include an optional alternate. Journeymen have years of experience within the electric utility trade, while an apprentice lineworker is newer to the craft.

Click here for a full listing of award winners.

New Nuclear Unit in Georgia Generates Electricity for the First Time, Connects to Grid

April 3, 2023

by Paul Ciampoli
APPA News Director
April 3, 2023

Georgia Power on April 1 reported that the generator at Vogtle Unit 3 has generated electricity for the first time, and the unit has successfully synchronized and connected to the electric grid.

Vogtle 3 and 4 are new nuclear units under construction at a nuclear expansion project near Waynesboro, Ga. Vogtle Unit 3 is adjacent to the operating Units 1 and 2, near Waynesboro, Georgia. Unit 3 and 4 are two 1,100-megawatt Westinghouse AP1000 nuclear reactors being constructed in Burke County, Ga.

Connecting to the electric grid is part of ongoing startup testing for Vogtle Unit 3, and operators will continue to raise reactor power for electricity generation while performing tests at various power levels.

This Unit 3 milestone follows initial criticality, reached on March 6, when operators safely started the nuclear reaction inside the reactor, generating nuclear heat to produce steam. Once all startup testing is successfully completed and the unit is available for reliable dispatch, the unit will enter commercial operation.

Meanwhile, at Vogtle Unit 4, nuclear operators began hot functional testing last month. Both achievements represent significant steps toward operations.

At Unit 4, hot functional testing, which began last month, marks the last series of major tests underway for the new nuclear unit ahead of initial fuel load.

The testing is being conducted to verify the successful operation of reactor components and systems together and confirm the reactor is ready for fuel load. As part of the testing, the site team will begin running Unit 4 plant systems, without nuclear fuel in the reactor, and advance through the testing process towards reaching normal operating pressure and temperature. Nuclear operators will use the heat generated by the unit’s four reactor coolant pumps to raise the temperature and pressure of plant systems to normal operating levels.

Once normal operating temperature and pressure levels are achieved and sustained, the unit’s main turbine will be raised to normal operating speed using steam from the plant. During these series of tests, nuclear operators will be able to exercise and validate procedures as required ahead of fuel load.

The in-service date for Unit 3 is projected during May or June 2023. Vogtle Unit 4 is projected to enter service in late fourth quarter 2023 or first quarter 2024.

Southern Nuclear will operate the new units on behalf of the co-owners: Georgia Power, Oglethorpe Power, MEAG Power and Dalton Utilities.

Austin Energy General Manager Jackie Sargent Announces Retirement

March 31, 2023

by Paul Ciampoli
APPA News Director
March 31, 2023

Austin Energy General Manager Jackie Sargent on March 31 announced her retirement from the Texas public power utility. Sargent served as the first female General Manager of Austin Energy.

Sargent’s retirement is effective immediately. Deputy General Manager and Chief Operating Officer Stuart Reilly will serve as Interim General Manager.

From Sargent’s start with Austin Energy in 2010 as Senior Vice President of Power Supply and Market Operations to serving as General Manager for nearly six years, Sargent demonstrated leadership by overseeing many notable accomplishments, Austin Energy noted.

Throughout her career, she managed major construction projects, developed resource plans, supported acquisitions and mergers, led utility rate reviews, negotiated power purchase and sale agreements, developed and grew energy marketing departments, integrated renewable resources and created collaborative energy efficiency programs.

In 2017, Sargent was recognized by RMEL, a nonprofit energy trade association, with their Distinguished Leadership Award.

Additionally, Sargent is the recipient of the South Dakota School of Mines and Technology Distinguished Alumni Award and, in 2022, she received the Energy Thought Summit – Thought Leader of the Year Award.

Snohomish County PUD, Tacoma Power Execute Funding Agreements Tied to SPP Initiative

March 31, 2023

by Paul Ciampoli
APPA News Director
March 31, 2023

Washington State’s Snohomish County PUD and Tacoma Power recently executed funding agreements to participate in the first phase of development of the Southwest Power Pool’s Markets+ initiative.

“We are excited to have a seat at the table to help shape the design of this new market option,” said Adam Cornelius, Snohomish PUD Principal Utility Analyst, in a statement. “The potential of Markets+ to integrate more renewable energy on to the grid and to do so in a cost-effective manner is aligned with the PUD’s goals and strategy to become 100 percent carbon free while keeping rates affordable.”

Snohomish PUD and Tacoma Power join several other organizations that have agreed to participate in the Markets+ phase one development, including Arizona Public Service, Bonneville Power Administration, Chelan PUD, NV Energy, Powerex, Puget Sound Energy, Salt River Project and Tucson Electric Power.

Participation in phase one does not commit utilities to join Markets+. A decision to participate in the market is expected to follow tariff approval.

Snohomish PUD and Tacoma Power are significant new additions to the Markets+ footprint as they represent BPA’s largest and fourth-largest public utility customers, respectively, and serve a significant portion of Washington state’s population.

When combined with BPA, PSE and Chelan PUD, the additions of Tacoma and Snohomish means that most Washingtonians are served by an electric utility participating in the Markets+ development effort.

“Tacoma Power is happy to join our peer utilities in supporting the development of SPP Markets+,” said Clay Norris, Tacoma Power’s Power Management Officer. “Given the significant impacts of moving to centralized day-ahead markets, we think that it is beneficial for utilities across the west to have multiple options to evaluate.”

SPP is developing Markets+, a regional, day-ahead electricity market in the western United States, with funding and participation from a diverse collection of utilities, interest groups and others.

SPP plans to officially announce a complete list of organizations who will participate in phase-one development of Markets+ on April 3.

SPP announced in March that phase one of Markets+ development will see the establishment of a fully independent governance structure. The group’s work will result in market protocols, tariff and governing documents that SPP will eventually file with the Federal Energy Regulatory Commission for approval in early 2024.

Snohomish County PUD is a public power utility that serves electricity to 365,000 customers and water to 23,000 customers in Snohomish County and Camano Island in Washington state.

Tacoma Power is a division of Tacoma Public Utilities. Publicly owned since 1893, it provides electric service to nearly 179,000 customers in Tacoma, University Place, Fircrest and portions of Fife, Lakewood, Federal Way, Steilacoom, Joint Base Lewis-McChord and incorporated Pierce County, as far south as Roy.

Public Power Utility Crews Head to Arizona for Project to Bring Power to Navajo Nation Households

March 31, 2023

by Paul Ciampoli
APPA News Director
March 31, 2023

Public power utility crews have started to deploy to Arizona to participate in Light Up Navajo, a project to extend electric service to households on the Navajo Nation.

Light Up Navajo is a joint effort between the American Public Power Association and the Navajo Tribal Utility Authority. Light Up Navajo IV starts in April and runs through June 2023.

In April, crews from the following public power utilities are scheduled to take part in the effort:

Crews from the following public power utilities are scheduled to deploy in May and June:

During April-June 2022, 69 volunteers from 14 utilities in 10 different states worked to electrify 137 Navajo Nation homes.