Skip Navigation

Rochelle Municipal Utilities Utilizes Trailer to Demonstrate Electrical Safety to Community

March 16, 2023

by Paul Ciampoli
APPA News Director
March 16, 2023

The electric department for Illinois public power utility Rochelle Municipal Utilities is utilizing a 7,970-volt trailer to demonstrate electric safety to the community of Rochelle, Ill.

In an interview with Public Power Current, Blake Toliver, Superintendent of Electric Operations and Generation at Rochelle Municipal Utilities, noted that the trailer has three poles on it, as well as an ASCR conductor and two 5-kVa transformers on each end.

“We have a contactor that’s controlled by one of the linemen while the demonstrations are going on,” Toliver said. The demonstration includes a backfeed as the contactor is closed and it energizes the conductor with full primary voltage.

“We use that to show the community what would happen if you were to put an aluminum ladder against a primary line,” he said.  

“We also show what the linemen have to protect themselves from the voltage,” Toliver said. In addition, the trailer demonstration shows “what the linemen do on a day-to-day basis with glove inspections and sleeve inspections, making sure their tools are cleaned and waxed, and things along those lines.”

A key goal of the trailer demonstration is making sure that “people have a respect for the amount of energy that’s out there on the primary line.”

The trailer was completed in 2022. So far, the trailer has been used with a citizens’ academy and, more recently, with the city’s fire department.

During the fire department training, “We talked a lot about what to do in a scenario of a fire because they’ve always questioned whether they should be the ones removing the meters or whether they should call us.” The utility “would prefer that they call us anytime and we will come out and disconnect the power and guarantee that their safe in the house that they’re working in.”

RMU staff also showed that their hoses can conduct electricity and talked about keeping aerial firefighting apparatuses away from power lines.

“The other thing that we talked to them about was pole top rescue and bucket rescue because the firefighters had no idea that our linemen are actually trained to rescue each other,” Toliver noted.

“I’m hoping to get it in front of the schools and do some more community engagement,” he said.

In high school demonstrations, not only will the utility be able to share important safety lessons, but it will also be able to expose students to possible utility careers, Toliver said.

“Linemen are getting harder and harder to come by,” he pointed out.

“We’re a proud public power community,” said Rochelle City Manager Jeff Fiegenschuh.  “I truly admire the way our staff jumps in to give back to our community with their unique knowledge.”

As for the ways in which RMU emphasizes the need for safety with its own staff, Toliver noted that the utility has a safety committee where officials from various RMU departments can discuss various issues.

“We’re doing anything that we can to make” the jobs of RMU personnel as safe as possible.

In addition, RMU utilizes the American Public Power Association’s Safety Manual. “We actually have all new copies sitting in my administrative assistant’s office to distribute to the linemen,” he said.

APPA released the 17th edition of its Safety Manual in February.

Heartland Energy Says it is Well Positioned to Help Minn. Cities Comply With New Carbon-Free Law

March 16, 2023

by Paul Ciampoli
APPA News Director
March 16, 2023

Heartland Energy, which provides wholesale electric power to six cities in Minnesota, recently said that it is well positioned to meet new climate standards in Minnesota on behalf of the municipal utilities it serves in the state.

Officials with Heartland Energy say its diverse power supply portfolio, which includes the output from a 51-megawatt wind farm, will help Minnesota customers meet the carbon requirements.

Electric utilities in Minnesota are facing new climate standards under a law recently signed by Governor Tim Walz. By the year 2040, utilities must meet a goal of having 100% of their electricity come from carbon-free sources.

Opponents of the mandate said it will be costly for smaller, rural utilities that may be unable to meet the requirements.

In addition to the carbon-free deadline, the new law requires utilities to show 55% of their energy sales come from renewable sources, such as wind and solar, by the year 2035.

Utilities that rely on other sources for the majority of their power supply do have options to meet this goal. They can instead pay for renewable energy credits, or RECs, which are proof that electricity was generated by a renewable energy source and delivered to the electric grid.

Each time one megawatt-hour of electricity is generated from a qualifying resource, such as wind or solar, one REC is created. If you own the resource, you own the REC generated. Once a REC is created, it may be sold or claimed and retired. Retiring a REC allows a utility to officially validate the amount of renewable energy supplied to customers.

Heartland Energy’s qualifying resource is the Wessington Springs Wind Energy Center located in Jerauld County, South Dakota. Heartland Energy purchases the full output of the 34-turbine wind farm through a long-term purchase power agreement with NextEra Energy. 

Heartland Energy already retires the appropriate number of RECs supplied by the WSW Energy Center to meet Minnesota’s current renewable standard of 25% by the year 2025.

Heartland Energy Chief Operations Officer Nate Jones said the WSW Energy Center produces enough RECs to meet Minnesota’s new mandate as well.

“We are well-prepared to adequately supply our customers in Minnesota with renewable energy to meet the new standard of 100% by 2040 and beyond,” said Jones.

Based in Madison, SD, Heartland Energy also provides a suite of customer service programs including economic development, energy efficiency, cybersecurity and more.

IRS Offers Guidance to Public Power Utilities Tied to Nuclear Tax Credit

March 16, 2023

by Paul Ciampoli
APPA News Director
March 16, 2023

The Internal Revenue Service recently released guidance on an advanced nuclear tax credit provision that public power project developers have been waiting for since changes to the provision were enacted in 2018.

Among other issues, the notice (Code section 45J Advanced Nuclear Tax Credit) helps clarify the ability of public power utilities to make an election to transfer the credit to other project partners.

In general, under 45J if a facility is owned by a partnership, then the partnership — and not the partners — are treated as the taxpayer owning the facility. In effect, one decision – whether to transfer or not to transfer – would apply to all project partners.

This would be problematic for facilities jointly owned by a public power utility that wanted to transfer credits, and an investor-owned utility that did not.

The notice addresses this by stating that if an organization makes a valid election under Code section 761(a) then each member’s “undivided share in the facility will be treated for purposes of this notice as a separate facility owned by such member.” In other words, each entity could make its own election without forcing a decision on the other owners.

Additionally, the guidance could offer good news for public power utilities hoping to invest in joint projects and claim new direct pay tax credits.

Code section 6417 states that if a tax creditable facility is owned by a partnership, then the partnership, not the partners, must make any election for direct payment.

As with 45J the issue is that one decision – whether to elect for direct payment or not – would apply to all project partners. Guidance is still pending, but a similar decision – allowing joint project owners to opt out of partnership treatment — would clear the way for joint ownership of facilities without putting the ability to claim refundable direct payment tax credits at risk.

The notice could also offer clarity for joint action agencies. As with the other production tax credits, to qualify for the Advanced Nuclear Tax Credit, power must be sold to an unrelated person.

The issue can become muddled when a JAA is the owner of the facility, for example where the JAA is selling power to a utility that may be a part owner of the JAA or part of the JAA’s governance structure. The notice clarifies this issue by stating that for purposes of 45J electricity will be treated as sold to an unrelated person if the ultimate purchaser off the electricity is not related to the person that produces the electricity.

“Thus, the requirement of a sale to an unrelated person will be treated as satisfied if the producer sells the electricity to a related person for resale by the related person to a person that is not related to the producer,” the notice concludes.

New Federal Grant Program Offers $2.5 Billion for EV Charging Infrastructure

March 16, 2023

by Paul Ciampoli
APPA News Director
March 16, 2023

The White House recently opened applications for a new multi-billion-dollar program to fund electric vehicle charging and alternative-fueling infrastructure in communities across the country and along designated highways, interstates, and major roadways.

The U.S. Department of Transportation’s new Charging and Fueling Infrastructure Discretionary Grant Program will provide $2.5 billion over five years to a wide range of applicants, including cities, counties, local governments, and Tribes.

This round of funding makes up to $700 million from fiscal years 2022 and 2023 funding available to strategically deploy EV charging and other alternative vehicle-fueling infrastructure projects in publicly accessible locations in urban and rural communities, as well as along designated Alternative Fuel Corridors (AFCs).

The CFI Discretionary Grant Program builds on the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program, for which FHWA published finalized minimum standards earlier this month. EV chargers constructed with CFI funds must adhere to those same standards.

While the NEVI Formula Program sends money to states, Puerto Rico, and DC to build EV charging infrastructure along designated Interstates, U.S. routes, and state highways, the CFI Discretionary Grant Program awards competitive grants to projects serving a range of applicants to fill gaps in the national charging and alternative-fueling network and build out charging in communities.

A priority of the CFI Program is bringing EV charging into urban and rural communities, downtown areas and local neighborhoods, particularly in underserved and disadvantaged communities, as well as to designated alternative fuel corridors.

The Bipartisan Infrastructure Law divides the CFI Program into two distinct grant funding categories, and requires that 50% of the funding over five years is made available for each:

Eligible applicants and projects for both categories are outlined in a Notice of Funding Opportunity. Applications are due by May 30, 2023.

APPA Highlights Need to Make Full Use of U.S. Hydropower Resources

March 15, 2023

by Paul Ciampoli
APPA News Director
March 15, 2023

Making full use of the nation’s hydropower resources is key to ensuring that the nation’s grid remains reliable and resilient and that utilities can meet emission reduction goals, the American Public Power Association recently said in a Statement for the Record submitted for a House hearing.

The Statement for the Record was submitted by APPA for a March 8 hearing, “Benefits and Access: The Necessity for Multiple Use of Water Resources,” held by the House Natural Resources Committee’s Subcommittee on Water, Wildlife, and Fisheries.

Hydropower is a source of emissions-free, baseload power, APPA pointed out. “Furthermore, hydroelectric generators can be started or stopped quickly, which makes them more responsive than most other energy sources for meeting demand for electricity at its “peak” or highest volume.”

Hydropower’s “black start” capability “makes it especially valuable in restoring power when there are widespread outages or disruptions on the system — this capability allows the generating units to cycle back on quickly if they have been tripped off in a power outage,” APPA said.

APPA also highlighted the benefits of the federal power marketing administrations — the Bonneville Power Administration, Western Area Power Administration, Southwestern Area Power Administration and Southeastern Power Administration.

In accordance with federal law, PMA rates are set at the levels needed to recover the costs of the initial federal investment, plus interest, in the hydropower and transmission facilities.

The PMAs annually review their rates to ensure full cost recovery. None of the costs are borne by taxpayers, APPA noted. Power rates also help to cover the costs of other activities authorized by these multipurpose projects, such as navigation, flood control, water supply, environmental programs, and recreation.

Northwest Public Power Association’s Scott Corwin Testifies at Hearing

Included among the panelists at the hearing was Scott Corwin, Executive Director, Northwest Public Power Association.

Corwin noted that although it makes up only 7% of energy capacity nationally, hydropower provides almost 60% of the capacity in the Northwest and almost 90% of the capacity used by Northwest Public Power Association members that have contracts with the federal power marketing administrations.

He said that non-federal hydropower is “subject to an often arduous and lengthy licensing and permitting process” involving multiple federal agencies and other interests. “The average time to license a project is seven years and costs three and a half million dollars in paperwork – not counting any environmental or safety or other upgrades.”

Corwin pointed out that it took less time to renew Energy Northwest’s license for its 1,200-megawatt nuclear plant than it did for an Energy Northwest 27-MW hydro project.

“Without change to these unpredictable timelines and costs there is very serious risk of abandonment of projects,” he said.

“We support the legislative proposals that would improve the hydropower permitting process and we also support creating a level playing field in tax policy for existing hydropower to receive the treatment similar to other renewable generation,” Corwin said.

“The bottom line is we need hydropower because it is efficient, clean, reliable and relatively low cost and, most importantly, because it’s flexible – it can be adjusted quickly to changes in demand,” he said.

Corwin also said that hydropower plays a critical role in the Western Interconnection for grid resilience. Though it’s only 10% of the total generation for the California Independent System Operator, hydropower provides up to 60% of CAISO’s spinning reserves, he noted.

“Hydropower was there when needed during last summer’s heat waves in the Northwest and in California,” Corwin said, noting that the four lower Snake River dams provided more than 1,000 MW of energy production and reserve capacity while maintaining flows for juvenile fish migration.

A study conducted for the Public Power Council showed that losing the generation from those four dams would “increase the risk of shortage events in the Western grid, which is already concerned about resource adequacy and increased risk of rolling blackouts, and would cost energy consumers about $790 million per year in added costs,” he said.

Coldwater Board of Public Utilities to Buy Capacity from Peaking Plant

March 14, 2023

by Paul Ciampoli
APPA News Director
March 14, 2023

The Coldwater, Mich., City Council recently approved a power sales contract and supplemental agreement under which the Coldwater Board of Public Utilities will purchase up to seven and a half megawatts of capacity from a peaking plant.

Coldwater is looking to install a 7.5-MW diesel generator behind-the-meter at one of its distribution substations, Andrew Cameron, Engineering Manager at Coldwater Board of Public Utilities, told Public Power Current.

The goal of the project is twofold – first, for resource adequacy with MISO and the state, and the other is increased reliability for the utility’s customers, Cameron noted. 

The generator is black start capable and would be able to backfeed a substation that serves roughly half of the residential customers of Coldwater.

The unit is schedule to be in service the summer of 2024 and the utility has entered into a related agreement with American Municipal Power.

Coldwater is a member of the Michigan South Central Power Agency along with three other member communities. Coldwater is also a member of AMP, a joint action agency that has 133 members across multiple states.

U.S. Natural Gas Consumption Reached Annual Record in 2022

March 14, 2023

by Paul Ciampoli
APPA News Director
March 14, 2023

In 2022, U.S. natural gas consumption averaged a record 88.5 billion cubic feet per day, the highest annual natural gas consumption, according to records beginning in 1949, the Energy Information Administration reported on March 14.

U.S. natural gas consumption last year increased 5% (4.5 Bcf/d) from 2021, the second-fastest year-over-year growth since 2013. Natural gas consumption in the United States set monthly records in 9 of 12 months in 2022, EIA said.

Natural gas consumption peaks twice a year in the United States, driven by the residential and commercial sectors during the winter and electric power sector during the summer. In winter, the most natural gas is consumed in January or February when demand for space heating peaks. In summer, the most natural gas is consumed typically in July or August to meet air-conditioning demand.

Newly retired coal-fired generating plants, relatively high coal prices, and lower-than-average coal stocks limited the electric power sector’s coal consumption last year, which led to increased natural gas consumption for electricity generation.

Compared with 2021, natural gas consumption increased in all sectors, but the electric power sector consumed more natural gas than any other U.S. end-use sector, accounting for 38% of U.S. natural gas consumption.

Natural gas consumption peaked in January and in July in 2022. In January 2022, the residential and commercial sectors, combined, consumed 9% more natural gas than in January 2021, and the electric power sector consumed 10% more year over year. Natural gas consumed for electric power reached a new record in January 2022, pushing overall natural gas consumption to a monthly record high.

Last summer was the third warmest on record in the U.S. Lower 48 states, leading to strong demand for air conditioning and resulting in new daily records for electricity generation in July. As a result, more natural gas was consumed in the electric power sector, pushing consumption in July to be the highest for the summer.

The year ended with another monthly record for natural gas consumption. In December, in much of the Lower 48 states, below-normal temperatures in the mid to late part of the month led to increased natural gas demand, both directly and indirectly, from natural gas-fired plants to generate electricity for space heating, EIA noted.

Department of Energy, TVA Enter MOU on Hydropower Technology Development

March 14, 2023

by Paul Ciampoli
APPA News Director
March 14, 2023

The U.S. Department of Energy and the Tennessee Valley Authority on March 14 announced a memorandum of understanding to enhance collaboration on hydropower technology development.

Joint efforts will focus on evaluating and demonstrating different approaches for operating hydropower plants to meet the electricity grid’s changing needs. The DOE entered the MOU through its Water Power Technologies Office.

Under the MOU, WPTO and its national laboratory partners will focus on quantifying the value hydropower and pumped storage facilities provide to the electricity grid and applying advanced modeling to predict the effects of climate change on TVA’s hydropower systems. They will also work to understand how fleetwide data can inform plant-level decisions, such as when to conduct maintenance activities.

TVA will focus on techniques and technologies that allow its hydropower system to adapt to the changing needs of the Tennessee Valley and the broader electricity industry. This may involve demonstrations of more mature technologies anticipated for near-term, utility-scale deployment.

TVA’s hydroelectric system comprises 29 power-generating dams throughout the Tennessee River system and a pumped storage plant near Chattanooga, Tennessee. TVA’s generation portfolio is 11% hydropower.

Over the next six months, WPTO and TVA will develop an action plan that outlines their joint efforts.

City of Newberry APPA-Funded Project Shows Value of Internships for Engaging Young Workers

March 14, 2023

by Jackson Bedbury
APPA News
March 13, 2023

The City of Newberry, S.C., recently concluded an internship funded by the American Public Power Association’s Demonstration of Energy and Efficiency Developments program, which involved a student from a local technical school learning about and working with fiber optics and advanced metering infrastructure.

Graham Sligh, a mechatronics student at Piedmont Technical College, worked under the City of Newberry’s Senior Fiber Optic/AMI Technician, Jimmy Cromer. Cromer provided instruction in single-fiber splicing and ribbon splicing, the use of heat shrinks, and monitoring quality with an Optical Time Domain Reflectometer.

Sligh gained experience performing fiber work in the field and in the utility’s fiber truck, in addition to working briefly in a bucket truck to conduct aerial fiber changeouts.

The City of Newberry has faced significant difficulties in finding talent to meet its workforce needs, so it leveraged the DEED program funding to attract a new generation of employees. Given the need to attract younger employees to bolster an aging workforce, the City of Newberry sought to determine whether internships could “serve as a tool for workforce recruitment.” Sligh writes in the City of Newberry’s final DEED report, “This was my first foray into utilities. I did not know that there were so many fields covered by that one word.”

The utility believes internships can provide a valuable introduction to the utilities field for young people and students like Sligh, serving as a “chance to see what public utilities offer, and if this is a field that holds an interest for them,” per the final DEED report.

When asked about the DEED program’s role in the City of Newberry’s internship program, City of Newberry Utilities Director Tim Baker said, “DEED gave us structure, allowed us to get our name out to local schools and young people.”

Baker also emphasized the importance of the DEED funding in proving to the city council “the value of these programs” while limiting risk to and expense for the utility and the city. “It allowed us to implement a program we would not have otherwise,” he said, and the city government is “now totally on board with something like these internships.”

While the City of Newberry is currently focused on expanding its apprenticeships across electric, fiber, and water, the utility hopes to return to the internship program in the future, potentially in partnership with local schools. Baker recently attended a meeting with a local technical college to inquire whether a program like this could be expanded to offer credit. “The internship is definitely something we want to revisit,” he said.

The City of Newberry Utility Department provides electric service to 5,000 customers, including 4,113 residential customers. It received a grant of $4,000 to fund the internship, with an additional $1,000 awarded for the intern to travel to APPA-approved conferences, from the American Public Power Association’s DEED program.

APPA’s DEED program funds research, pilot projects, and education to improve the operations and services of public power utilities, with particular emphasis placed on the scalability and transferability of projects for other utilities. For more information on APPA’s DEED program, to become a DEED member, or to apply for a DEED grant, visit the DEED program’s webpage.

Western Electricity Coordinating Council Seeks Grid Planning Comments

March 14, 2023

by Peter Maloney
APPA News
March 13, 2023

The Western Electricity Coordinating Council is seeking comments on a draft report on long-term transmission planning.

The draft report summarizes a technical workshop hosted by the Western Electricity Coordinating Council’s Reliability Assessments Committee on Oct. 6, 2022, in response to the Federal Energy Regulatory Commission’s Notice of Proposed Rulemaking on transmission planning, Building for the Future Through Electric Regional Transmission Planning and Cost Allocation and Generator Interconnection (RM21-17-000).

The Western Electricity Coordinating Council is accepting comments on its report through a website link until April 7.

The Federal Energy Regulatory Commission’s Notice of Proposed Rulemaking proposes to reform both the pro forma Open Access Transmission Tariff and the pro forma Large Generator Interconnection Agreement to remedy deficiencies in the Federal Energy Regulatory Commission’s existing regional transmission planning and cost allocation requirements.

Among other things, the Notice of Proposed Rulemaking proposes to require public utility transmission providers to conduct long-term transmission planning with a horizon of 20 years or more, rather than the more commonly used 10-year planning horizon.

Long-term transmission planning is not occurring regularly or consistently in most regions, depriving customers the benefits of enhanced reliability and access to lower cost and diverse resources, the Federal Energy Regulatory Commission said in its Notice of Proposed Rulemaking.

In addition, transmission needs are being met outside the regional process and, for the most part, being met piecemeal in response to generator interconnection requests, leading to siloed transmission planning and resulting in increased interconnection costs that are becoming a higher percentage of the overall generation project costs, the Federal Energy Regulatory Commission said in its Notice of Proposed Rulemaking.

No projects have been selected in non-Regional Transmission Organization or Independent System Operator regions under the regional transmission planning regime since Oder 1000 was issued by the Federal Energy Regulatory Commission in July 2011, the agency said it its Notice of Proposed Rulemaking. Therefore, the Federal Energy Regulatory Commission said it believe reforms are needed.

Among the discussion topics in the Western Electricity Coordinating Council’s draft report is the uncertainty of load demand forecasts and how loads are going to be changing with the push toward decarbonization across all sectors of the economy at federal, state, and local levels. Those changes are likely to have an effect both on peak demand and on demand profiles, the Western Electricity Coordinating Council said, adding that for a highly decarbonized future, performing studies at an interconnection level might be more meaningful compared with the local level, due to uncertainty with the load forecasts at the local level.

In addition, the effects of policies at the distribution and sub-transmission level for a particular area may have a wide-ranging effect across the grid, so the policy impacts must be studied at a broader level where regions are evaluating impacts from one part of the grid to another, the Western Electricity Coordinating Council report said.

The Western Electricity Coordinating Council report cited approaches adopted by the Midcontinent Independent System Operator that developed scenarios that represent bookends of uncertainties and perform robustness tests on the planned system to determine how it would respond under various system conditions.

In its draft report, the Western Electricity Coordinating Council also noted another approach to long-term transmission planning is the use of probabilistic transmission planning to determine anticipated loads and resource profiles.

To study system planning under a 20-year time horizon, appropriate load forecasts will need to be developed, including not only the magnitude of demand but the appropriate hourly profiles, as well as the impacts of behind-the-meter generation, the Western Electricity Coordinating Council said in its draft report.

The Western Electricity Coordinating Council draft report also noted that at the interconnection level, “planning entities are mostly interested in getting data from their neighbors or other entities that might have a significant influence on their systems” so it would be beneficial to develop datasets in a coordinated manner across the interconnection.

To illustrate, the Western Electricity Coordinating Council’s different states have different policies concerning Distributed Energy Resources, which would need to be considered in the model for each state. Similarly, the Western Electricity Coordinating Council noted that electrification rates of residential and commercial heating and cooling systems and transportation may be different in different states.

The Western Electricity Coordinating Council draft report also noted the importance of weather and climate data with respect to load forecasts and transmission reliability particularly since some extreme weather events may affect multiple regions simultaneously.

The Western Electricity Coordinating Council said its Reliability Assessments Committee must decide how to proceed on issues such as modeling, datasets, tools, and scenario development. “Development of key datasets will be crucial to moving forward and providing value,” the Western Electricity Coordinating Council said in its draft report. “Challenges with long-term planning are complex, but the complexity of the problem should not keep entities from creating the required datasets.”

The question for the Reliability Assessments Committee to consider, the Western Electricity Coordinating Council said in its draft report is “What are the reasonable set of activities that the [Reliability Assessments Committee] should undertake so that, regardless of which direction the [Federal Energy Regulatory Commission] ruling eventually goes, the outcome of this effort will still be beneficial for a broader set of stakeholders?”