U.S. Finalizes Offshore Wind Sites To Be Auctioned in Gulf Of Mexico
November 6, 2022
by Peter Maloney
APPA News
November 6, 2022
The U.S. Bureau of Ocean Energy Management (BOEM) has finalized two Wind Energy Areas (WEAs) in the Gulf of Mexico.
Later this year or early next year, BOEM intends to issue a proposed sale notice for the competition to lease the areas. The notice will include a 60-day public comment period.
The first WEA is approximately 24 nautical miles (27.6 miles) off the coast of Galveston, Texas. The area totals 508,265 acres.
The second WEA is approximately 56 (64.4 miles) off the coast of Lake Charles, La. The area totals 174,275 acres.
BOEM said it slightly reduced the size of the WEAs from the original draft versions to address concerns expressed by the Department of Defense and the U.S. Coast Guard regarding shipping, marine navigation, and military operations.
Last October, the Biden administration, to further its goal of deploying 30 gigawatts (GW) of offshore wind energy by 2030, outlined a path for the potential sale of up to seven new offshore leases for wind power projects by 2025.
In February 2022, the Department of the Interior (DOI) held the first competition for offshore wind leases, offering 488,000 acres in the New York Bight. The auction drew winning bids from six companies totaling approximately $4.37 billion, which the DOI said was the highest grossing competitive offshore energy lease sale in history, including oil and gas lease sales.
In May, a BOEM auction for two lease areas in the Carolina Long Bay drew competitive winning bids from two companies, Duke Energy and TotalEnergies, totaling approximately $315 million.
In August, the DOI released a request for interest for leasing potential offshore wind energy sites in the Gulf of Maine, a first step in preparation for holding a competitive bid for the site.
Vermont Public Power Supply Program to Provide Rebates, Free EV Chargers
November 6, 2022
by Peter Maloney
APPA News
November 6, 2022
Vermont Public Power Supply (VPPSA), in partnership with Efficiency Vermont, is offering free electric vehicle chargers to customers of its member utilities.
Through the PowerShift program, VPPSA plans is offering a free FLO X5 level 2 charger and a $500 rebate to assist with charger installation costs on a limited-time, first-come, first-served basis.
Participating customers must have purchased or leased an all-electric vehicle on or after Jan. 1, 2022.
The goal of the program is to shift the times that grid-enabled devices in VPPSA member homes use energy. Customers participating in the program will set their electric vehicle charger to a daily schedule that shifts away from peak times in the evening energy demand hours so that electric vehicle charging occurs when costs are lowest.
VPPSA expects electric vehicles to replace a large number of gasoline-powered cars in the coming years and sees that change as beneficial to meeting its emission reduction goals as Vermont’s largest source of greenhouse gas emissions (GHG) comes from the transportation sector. VPPSA views flexible load management is a key component to sustainable electric vehicle growth.
Technologies like electric vehicles can flex their usage to times when utility costs are lowest and powered by the cleanest sources, VPPSA said, adding that when peak demand is high it causes increased operational costs and can impact electricity rates.
“EV adoption is an important strategy in lowering GHG, but as we make this transition it is important to keep electricity reliable and bills affordable,” Julia Leopold, VPPSA’s director of public affairs, said in a statement. “The PowerShift program helps the VPPSA community learn more about how EV adoption impacts our grid, and how to work with our customers to keep their energy burdens low.”
Efficiency Vermont works with partners to help them transition to more affordable, low carbon energy use through education, incentives, and support for our clean energy workforce.
VPPSA provides municipal electric utility members with services, including regulatory assistance, financial planning, and power supply. VPPSA members include Barton Village Electric, Village of Enosburg Falls, Hardwick Electric Department, Jacksonville Electric Company, Village of Johnson, Ludlow Electric Light Department, Lyndonville Electric Department, Morrisville Water & Light, Northfield Electric Department, Orleans Electric, and Swanton Village.
Fresno, Calif., Officials Eye Possible Formation of Public Power
November 6, 2022
by Paul Ciampoli
APPA News Director
November 6, 2022
Officials in Fresno, Calif., are taking a closer look at the potential formation of a public power utility for the city. The city is currently served by investor-owned Pacific Gas & Electric (PG&E).
At an Oct. 31 news conference, Fresno Mayor Jerry Dyer said, “The City of Fresno is also a utility provider. We provide sanitation. We provide water and we provide sewer and perhaps it’s time we provide electricity.” Rising PG&E rates were also mentioned at the news conference.
A media advisory issued by Fresno Councilmember Garry Bredefeld related to the news conference cited PG&E’s “ongoing failures to timely energize facilities in the city.” The advisory said that the consultant picked for the study would “provide all options including the possibility of the City of Fresno forming its own district as is done in some other cities in California.”
The City Council of Fresno, Calif., on Nov. 3 considered a proposal that would direct its staff to hire a consultant to perform a feasibility study related to the possible formation of a public power utility. Discussions over the proposal lasted for more than three hours.
At the council meeting, Dyer made the case for the council to authorize a study.
Councilmember Miguel Arias called for a vote to table the motion for a study, saying, among other things, that additional information was needed, but the vote fell short due to a 3-3 tie among councilmembers.
A subsequent motion calling for the proposal to be tabled until a meeting of the council next month was approved by councilmembers.
Oregon Department of Energy Awards Funds to Ashland for Resilience Project
November 6, 2022
by Paul Ciampoli
APPA News Director
November 6, 2022
The Oregon Department of Energy has awarded $940,000 in funds to pay 100% of the project costs for an energy resilience project designed by Stracker Solar for the public power city of Ashland, Ore.
Awards were chosen based on project feasibility and strength, cost savings, economic development, and equity goals such as environmental justice.
The proposed community resilience project will be built at a city service center where Ashland’s Police and Electric Departments as well as city vehicle fueling and charging stations are located.
The installation will consist of a 75kW elevated dual-axis solar tracker system along with a new Lithium-battery system to form a microgrid for the site. The installation will produce 170,000 kWh electricity annually and support continued operation of essential services for the Electric Department and Ashland Fiber Network building, as well as continued fueling of city vehicles (which include ambulance and fire trucks), in the event of power grid failures.
The project will also provide the city’s expanding electric vehicle fleet its first 480V Level 3 Electric Vehicle Charging Stations and will include provisions to allow the electric vehicle batteries to be used for additional electricity storage in the future. The project also includes social equity elements that helped gain the grant award.
Virgin Islands Public Services Commission Approves Two Solar Companies Qualified Facilities
November 6, 2022
by Paul Ciampoli
APPA News Director
November 6, 2022
The Virgin Islands Public Services Commission (PSC) recently approved two solar power companies, Haugland VI and Leeward Energy, as qualified facilities (QF).
Leeward Energy has developed over 20,000 megawatts (MW) of solar power and currently has 2,500 MW in operation and Haugland VI manages a number of local development projects, in addition to performing electrical, utility and civil work.
The recent QF designation is part of a multi-step process that will allow the energy companies to negotiate and enter into a power-purchase agreement with the Virgin Islands Water & Power Authority.
Under the agreement, the selected company will maintain ownership and operation of the solar facility. Leeward Energy is in negotiations with the Authority to sell power at a fixed rate to the Authority.
Haugland VI has not submitted a proposal to the Authority. One of the many benefits of a power-purchase agreement is it funnels renewable energy investment into the Virgin Islands, without the Authority having to shoulder the capital needed for the build out and operations, the utility noted.
The PSC’s approval will help further Governor Albert Bryan’s initiative to transition St. Croix to 100% solar energy, and aid in the long-term Vision 2040 economic strategy for the USVI.
“Prioritization of solar and battery storage will be critical to lowering reliance on expensive and volatile fossil-fuel generation and will help insulate customers from spikes in commodity prices,” the utility said.
While the Authority intends to roll out renewables throughout the USVI, deployment in St. Croix is particularly ideal given the larger and flatter land mass available.
Irrespective of solar farm location however, a territory-wide rate structure ensures all customers will benefit equally from renewable generation, regardless of location, the Virgin Islands Water & Power Authority said.
TVA, Other Utilities Launch Southeast Hydrogen Hub Effort
November 4, 2022
by Paul Ciampoli
APPA News Director
November 4, 2022
A newly formed coalition including the Tennessee Valley Authority (TVA) and other major utilities recently announced its plan to pursue federal financial support for a Southeast Hydrogen Hub.
The coalition will respond to the recently announced funding opportunity from the U.S. Department of Energy, which includes $8 billion for regional hydrogen hubs and is part of the Infrastructure Investment and Jobs Act.
Along with TVA, the other members of the coalition include Dominion Energy, Duke Energy, Louisville Gas & Electric Company and Kentucky Utilities Company (LG&E and KU), Southern Company, along with Battelle and others.
Other members of the Southeast Hydrogen Hub coalition will include a growing list of hydrogen users from a variety of industries in Alabama, Georgia, Kentucky, North Carolina, South Carolina, and Tennessee. The coalition expects its membership to grow.
Hydrogen may be poised to play a major role in addressing climate change and could be essential for each coalition member to meet its stated carbon-reduction goals.
TVA, for example, is looking to achieve 70% carbon reduction by 2030 and approximately 80% carbon reduction by 2035.
“By working together, the coalition can focus on developing scalable, integrated projects at key locations across the entire Southeast in support of these carbon-reduction goals and encourage the broad-based development of a regional energy ecosystem that will allow members to deploy hydrogen as a decarbonization solution for customers and communities,” a news release from the coalition members said.
Maine and Rhode Island recently joined a multi-state clean hydrogen hub in the New England/Mid-Atlantic region.
Earlier this year, governors of Colorado, New Mexico, Utah and Wyoming have joined forces in signing a memorandum of understanding (MOU) for the development of a regional clean hydrogen hubs.
Under the MOU the states agreed to compete jointly for a portion of the $8 billion allocated in the federal Infrastructure Investment and Jobs Act for hydrogen hubs.
Several West Coast utilities, including the Los Angeles Department of Water and Power (LADWP) and Douglas County PUD in Washington, have recently embarked on projects aimed at furthering the feasibility of using hydrogen fuels to offset the use of traditional fossil fuels.
To help public power utilities understand the potential — and the limitations — of hydrogen, and why they should get involved, the American Public Power Association developed Understanding Hydrogen: Trends and Use Cases.
Implementation Standards for NAESB Base Contract for Voluntary RECs are Approved
November 4, 2022
by Paul Ciampoli
APPA News Director
November 4, 2022
The North American Energy Standards Board’s (NAESB) Retail Markets Quadrant (RMQ) and Wholesale Electric Quadrant (WEQ) Executive Committees recently approved technical implementation standards for NAESB’s base contract for the sale and purchase of voluntary renewable energy certificates (RECs).
Elizabeth Mallett, Director, Wholesale Gas and Retail Markets Quadrants for NAESB, provided an update on the base contract and the implementation standards for Public Power Current on Nov. 3.
Mallett noted that the technical implementation standards are now posted for a thirty-day ratification period that began on October 19, 2022 and will close on November 18, 2022.
Once ratified by the NAESB membership, the technical implementation will be available for industry use and will be included in the upcoming publications of the WEQ and RMQ Business Practice Standards, she said.
“Together, these standards, along with the NAESB REC Base Contract, which was ratified by NAESB membership in November of 2021, seek to provide additional efficiencies to the REC transacting process within the voluntary market thorough the establishment of standard terminology and terms and conditions for contract negotiations,” Mallett said.
The NAESB Base Contract for Sale and Purchase of Voluntary RECs also provides an attestation exhibit allowing parties to evidence transfer of REC ownership, including uniform descriptions of the origins and creation of a REC.
The NAESB REC contract was spurred by a recommendation from Tennessee Valley Authority that NAESB consider a REC contract for distributed ledger technology, or blockchain technology.
Background
In August 2021, the WEQ and RMQ Business Practices Subcommittees voted to unanimously approve a recommendation containing the NAESB Base Contract for Sale and Purchase of Voluntary RECs and a NAESB REC Base Contract Frequently Asked Questions (FAQ) document.
The recommendation was developed over a total of 25 joint meetings between the RMQ Business Practices Subcommittee and the WEQ Business Practices Subcommittee.
Per the NAESB standards development process, once the recommendation was voted out of the subcommittee it was posted for a thirty-day formal industry comment period (August 3, 2021 through September 2, 2021).
During that time, parties were given the opportunity to comment on the document, Mallet noted. NAESB received comments from Cheniere proposing minor edits to the NAESB Base Contract for Sale and Purchase of Voluntary RECS and the NAESB REC Base Contract FAQ for consistency and clarification.
On September 7, 2021, the WEQ and RMQ Executive Committee held a joint meeting to discuss the Cheniere comments and developed late comments that incorporated the proposed changes into the recommendation.
The WEQ and RMQ Executive Committees held meetings in October 2021 to review the recommendation, along with the comments received. Both the RMQ and WEQ Executive Committees approved the recommendation as modified by the Cheniere comments.
After gaining the approval of both of the Executive Committees, the Contract and FAQ Document were ratified by NAESB membership and are now available for purchase.
On the heels of the completion of the NAESB Base Contract for Sale and Purchase of Voluntary Renewable Energy Certificates and the NAESB REC Base Contract FAQ document, the WEQ and RMQ Business Practices Subcommittee moved on to development of the technical implementation to support the NAESB REC Base Contract.
Mallett noted that the technical implementation allows for the electronic use of the contract, including on blockchain technologies.
After a total of 16 meetings, the joint subcommittees voted out a recommendation on July 2, 2022 that included:
- Revisions to the NAESB REC Base Contract FAQ Document,
- Contracts Related Model Business Practice and Business Practice Standards,
- REC Contract Dataset,
- REC Transaction Confirmation Dataset,
- REQ REC Sale and Purchase Invoice Dataset,
- REC Sale and Purchase Invoice Response Dataset.
The recommendation was posted for a thirty-day formal comment period that concluded on August 8, 2022.
Comments were filed in support of the recommendation from the NAESB WEQ Standards Review Subcommittee and Cheniere, who also proposed minor edits for clarity and consistency, Mallett said.
The WEQ and RMQ BPS reviewed the comments and develop a set of late comments that incorporated the proposed edits from the Cheniere comments.
The WEQ and RMQ Executive Committees met on October 18, 2022 and October 19, 2022 and approved the recommendation. The recommendation is now posted for a thirty-day ratification period by the NAESB membership.
Once ratified, the standards will be available for industry use and included in the next NAESB publications for the Retail Markets Quadrant and Wholesale Electric Quadrant.
NAESB members have access to the documents by way of their membership. Nonmembers that want to purchase the standards may fill out the NAESB Materials Order Form on the NAESB website.
California Grid Operator’s Board OKs Proposal to Improve Interconnection Process
November 3, 2022
by Paul Ciampoli
APPA News Director
November 3, 2022
The California Independent System Operator (ISO) Board of Governors recently adopted a proposal aimed at improving the grid operator’s interconnection process.
Over the past decade, the ISO received an average of 113 interconnection proposals per year. But last year, as the state accelerated the pace of procurement for renewable and storage resources, applications for new projects more than tripled to 373 projects.
To mitigate the potential for processing delays due to the high number of requests, the ISO began meeting with stakeholders in 2021 to find ways to streamline the interconnection process.
CAISO said the items that received Board approval within the Interconnection Process Enhancement (IPE) Phase 2 proposal help move projects forward more efficiently, enabling the ISO to better manage the queue by:
- Changing how projects are evaluated so the most viable and ready projects have highest priority;
- Appropriately balancing cost responsibility between developers and consumers for network upgrades to local transmission systems; and
- Providing developers of projects located outside of the ISO footprint with a better-defined process which will include reimbursement of their cost for network upgrades that is consistent with projects in the ISO’s balancing area.
Other improvements in the IPE Phase 2 proposal that do not require Board approval include making more non-confidential information available and easier to access to help developers determine the best location to connect new capacity and enabling developers to provide more input during the interconnection planning process on required network upgrades.
Additionally, the Western Energy Imbalance Market (WEIM) Governing Body and the ISO Board of Governors at their joint meeting in October approved a proposal to recognize the Washington State-specific greenhouse gas emission reference levels in the WEIM under Washington State’s recently revised Clean Air Act.
The proposal also includes an approach for supporting certain reporting obligations under Washington’s Climate Commitment Act, which created a cap-and-invest program starting in 2023.
Littleton Electric Light and Water Departments Details Benefits Flowing from Shade Tree Program
November 3, 2022
by Paul Ciampoli
APPA News Director
November 3, 2022
Massachusetts-based public power utility Littleton Electric Light and Water Departments (LELWD) recently provided details on the benefits that flow from its free shade tree program, which the utility has offered since 2016.
Over the course of the program, 452 customers have participated and LELWD has provided 1,100 trees.
The goal of the program is to help conserve energy by planting a tree in the right spot to allow shading in the summer to reduce the need for home air conditioning, and when the leaves drop, it will allow the winter sun in to help reduce home heating needs.
Customers also enjoy the other benefits trees offer, which include wildlife habitat, consuming carbon dioxide, and visual aesthetics (or enhancing their landscape).
Based on the National Tree Benefit Calculator, provided by the Arbor Day Foundation, it is estimated that a 1-inch diameter red maple will reduce 9 pounds of carbon dioxide and intercept 19 gallons of stormwater per year.
This means that LELWD’s program in total has reduced approximately 39,825 pounds of carbon dioxide, which is the equivalent of burning 19,987 pounds of coal. It also has intercepted approximately 84,075 gallons of stormwater, helping to reduce runoff and pollutants from entering our water supply.
As the trees grow to maturity, these environmental benefits will increase significantly, the utility said. The program is also a great way to counter criticism of the cutting of trees near power lines by planting new trees away from our lines, LELWD said.
The program has planted a variety of trees, including American Red Maples, Autumn Blaze Maples, October Glory Maples, and Sycamores trees — all natives to New England.
Customers of LELWD can apply for up to 2 free trees per account during the application period, April (Arbor Day) – Labor Day. Customers are then provided with a map of their property, indicating acceptable and non-acceptable locations for their trees. The map highlights areas of energy saving potential, and the location is mutually agreed upon between the customer and LELWD.
The trees start between 5–7 feet tall and LELWD staff plants them by hand during Public Power Week.
The program is funded under a utilities budget for energy conservation programs.
For utilities interested in learning more about the program, contact Connor Reardon, Energy and Sustainability Manager, Littleton Electric Light & Water Departments, at: creardon@lelwd.com.
NOAA Winter Outlook Sees Warmer, Drier South with Ongoing La Nina
November 3, 2022
by Paul Ciampoli
APPA News Director
November 3, 2022
This year La Niña returns for the third consecutive year, driving warmer-than-average temperatures for the Southwest and along the Gulf Coast and eastern seaboard, according to the National Oceanic and Atmospheric Administration’s (NOAA) U.S. Winter Outlook released by the Climate Prediction Center, a division of the National Weather Service.
Starting in December 2022 through February 2023, NOAA predicts drier-than-average conditions across the South with wetter-than-average conditions for areas of the Ohio Valley, Great Lakes, northern Rockies and Pacific Northwest.
NOAA forecasters, in collaboration with the National Integrated Drought Information System (NIDIS), continue to monitor extreme, ongoing drought conditions that have persisted in the Western U.S. since late 2020, as well as parts of the central U.S. where historic low-water conditions are currently present.
“Drought conditions are now present across approximately 59% of the country, but parts of the Western U.S and southern Great Plains will continue to be the hardest hit this winter,” said Jon Gottschalck, chief, Operational Prediction Branch, NOAA’s Climate Prediction Center. “With the La Niña climate pattern still in place, drought conditions may also expand to the Gulf Coast.”
Widespread extreme drought continues to persist across much of the West, the Great Basin, and the central-to-southern Great Plains.
Drought is expected to impact the middle and lower Mississippi Valley this winter.
Drought development is expected to occur across the South-central and Southeastern U.S., while drought conditions are expected to improve across the Northwestern U.S. over the coming months.
With respect to temperatures, the greatest chance for warmer-than-average conditions are in western Alaska, and the Central Great Basin and Southwest extending through the Southern Plains.
Warmer-than-average temperatures are also favored in the Southeastern U.S. and along the Atlantic coast. Below-normal temperatures are favored from the Pacific Northwest eastward to the western Great Lakes and the Alaska Panhandle.
With respect to precipitation, wetter-than-average conditions are most likely in western Alaska, the Pacific Northwest, northern Rockies, Great Lakes and Ohio Valley.
The greatest chances for drier-than-average conditions are forecast in portions of California, the Southwest, the southern Rockies, southern Plains, Gulf Coast and much of the Southeast.
The remainder of the U.S. falls into the category of equal chances for below-, near-, or above-average seasonal total precipitation.