Company Closes on Debt Financing for CMEEC Microgrid-Ready Project
September 5, 2023
by Paul Ciampoli
APPA News Director
September 5, 2023
FuelCell Energy recently closed on a project debt financing transaction with Liberty Bank and Amalgamated Bank as senior lenders and the Connecticut Green Bank as subordinated lender for the company’s Connecticut Municipal Electric Energy Cooperative fuel cell microgrid-ready project.
The project, which is still under construction, will be located at the Naval Submarine Base New London, located in Groton, Connecticut.
Liberty Bank and Amalgamated Bank’s senior commitment totals $12 million with a seven-year term and Connecticut Green Bank’s commitment totals $8 million with a 20-year term.
CMEEC is a political subdivision of the State of Connecticut created in 1976.
It is a non-profit municipal joint action electric supply agency that provides the power supply requirements, at wholesale, of six municipal electric utilities with retail electric service territories in Connecticut as well as for other customers who purchase power at wholesale.
Its municipal electric utility members are Bozrah Light & Power, Jewett City Department of Public Utilities, Groton Utilities, Norwich Public Utilities, South Norwalk Electric and Water, and The Third Taxing District of Norwalk Electric Division.
New Braunfels Utilities Shifts to Monthly Cost of Power Forecasting, Cites ERCOT Market Volatility
September 5, 2023
by Paul Ciampoli
APPA News Director
September 5, 2023
Starting on September 1, 2023, Texas public power utility New Braunfels Utilities is shifting to monthly power cost forecasting instead of quarterly forecasting.
The change in forecasting duration is because the extreme volatility in the Electric Reliability Council of Texas market “simply does not allow for accurate forecasting beyond a month, and we do not want to publish inaccurate or misleading forecasts,” NBU said, noting that it will place future updates on nbutexas.com/rate-breakdown.
Additionally, it is NBU’s operational practice to adjust power costs on a monthly basis to address any market volatility, so this forecasting change will allow for more accuracy and align with NBU’s operational practices, the utility said.
Current projections indicate NBU customers will see an increase in the September rate compared to August. This increase is primarily driven by higher costs and volatility in the ERCOT market.
The ERCOT market has experienced increased load growth and all-time high demand driven by extreme record-setting heat conditions throughout Texas since June, NBU said.
“Compounded with the market redesign and more conservative grid operations results in more expensive power,” it said. Texas has made the decision to prioritize electric reliability over affordability, and that is what is driving up the cost of power.
An average customer that uses 1,200 kilowatt-hours in September 2023 will see an approximate 8.4% increase, totaling $12.00.
DOE Announces $15.5 Billion Package to Retool Factories for EV Transition
September 5, 2023
by APPA News
September 5, 2023
The U.S. Department of Energy recently announced a $15.5 billion package of funding and loans primarily focused on retooling existing factories for the transition to electric vehicles.
The funding includes making available $2 billion in grants and up to $10 billion in loans to support automotive manufacturing conversion projects in communities that currently host these manufacturing facilities.
In the Domestic Conversion Grant Program, higher scores will be given to projects that are likely to retain collective bargaining agreements and/or those that have an existing high-quality, high-wage hourly production workforce, such as applicants that currently pay top quartile wages in their industry, DOE said.
The Domestic Manufacturing Conversion Grants for electrified vehicles program, will provide cost-shared grants for domestic production of efficient hybrid, plug-in electric hybrid, plug-in electric drive, and hydrogen fuel cell electric vehicles. This program will expand manufacturing of light-, medium-, and heavy-duty electrified vehicles and components and support commercial facilities including those for vehicle assembly, component assembly, and related vehicle part manufacturing.
Concept papers are due October 2, 2023, and the deadline for full applications is December 7, 2023. Learn more about this funding opportunity.
DOE is making up to $10 billion in loan authority available for applications under the Advanced Technology Vehicles Manufacturing Loan Program for automotive manufacturing conversion projects that retain high-quality jobs in communities that currently host manufacturing facilities.
Examples include retaining high wages and benefits, including workplace rights, or commitments such as keeping the existing facility open until a new facility is complete, in the case of facility replacement projects.
For projects that seek financing to convert or directly replace an existing factory that has high-quality jobs, DOE will assess the projected economic impacts of the facility conversion relative to the existing facility, including factors such as contribution to the local economy, employment history, anticipated employment, and duration of its existence. Interested applicants can learn more about how to apply for these projects here.
DOE also announced its intent to invest approximately $3.5 billion to boost production of advanced batteries and battery materials “that are critical to rapidly growing clean energy industries of the future, including electric vehicles and energy storage.”
This notice of intent represents the second round of funding for battery materials processing and battery manufacturing grants to support the creation of new, retrofitted, and expanded domestic commercial facilities for battery materials, battery components, and cell manufacturing.
Eugene Water and Electric Board’s Call to Conserve Energy Yields Significant Savings
September 5, 2023
by Paul Ciampoli
APPA News Director
September 5, 2023
Customers of Oregon public power utility Eugene Water and Electric Board played a key role in maintaining grid stability during a recent extreme heat wave by acting collectively and making small adjustments to temporarily reduce energy consumption, EWEB said on Aug. 24.
Electricity was in short supply for several days during the week of Aug. 14 as temperatures crested 100 degrees for four days in a row and several regional electricity generators were shut down due wildfire conditions, including EWEB’s Carmen-Smith hydroelectric project.
In response, EWEB issued its first-ever voluntary call for customers to safely conserve energy on Aug. 15. The utility sent an email to 66,000 residential, commercial and industrial customers, and issuing an alert on social media.
“Customers responded in force by raising the temperature settings on their air conditioners, charging electric vehicle overnight rather than in the evening, delaying running large appliances such as dryers or dishwashers until after 9 p.m. and turning off unnecessary lights and electronics,” EWEB noted.
By comparing customers’ hourly electricity demand on Monday, Tuesday and Wednesday, EWEB estimated that customers’ actions caused demand to be 10 to 15 megawatts lower than expected, given the temperatures and compounding heat effects. That’s roughly the equivalent of 10,000 to 15,000 window air conditioners getting shut off.
By cutting back on consumption, customers both reduced strain on the grid and contributed to keeping EWEB’s electric rates low by helping EWEB avoid paying exorbitant prices for electricity on the wholesale market, the utility noted.
“Power prices fluctuate by the hour, and customers’ actions allowed EWEB to skip purchasing some energy when prices were at their highest – ultimately saving EWEB customers money on rates in the long run,” it said.
On Tuesday and Wednesday of the week in August, power prices ranged from $70 per megawatt-hour overnight, when demand was lowest, to as high as $1,800 per megawatt-hour from 5 to 8 p.m. when demand was highest. At the peak of the day, when prices were highest, reduced energy usage saved EWEB and customers approximately $10,000 per hour.
EWEB said that future customer programs that EWEB will soon start assessing could look like last month’s call to conserve.
Electric utilities across the Northwest and the entire nation have instituted various demand response programs that incentivize customers to use less electricity when overall demand is at its highest, it noted.
The programs largely depend on advanced metering infrastructure, or smart meters, EWEB noted.
EWEB has been rolling out smart meters to customers free of charge over the last several years, though supply chain disruptions in the last two years have slowed down deployment. So far, EWEB has deployed more than 68,000 electric smart meters, covering about 69% of customers.
Demand response programs also rely on modern back-end computer systems that better integrate information related to metering, energy supply, customer demand and billing. EWEB is currently undergoing a major technology upgrade to do just that.
Integrated Resource Planning
EWEB’s 2023 Integrated Resource Planning process identified demand response programs as a key element of the utility’s future resource mix.
The IRP forecasted electricity demand 20 years into the future and used modeling software to analyze dozens of resource options — such as wind, solar and hydropower — to create potential mixes of electricity sources that will reliably meet customers’ needs at the lowest price while being 95% carbon-free.
The analysis yielded valuable insights about the challenges EWEB faces in the future, it noted.
EWEB said it doesn’t need to procure any resources in the next few years and will instead spend that time conducting additional analysis and preparing for the 2025 IRP.
One of those studies will look specifically at demand response. The study will seek to determine how much potential exists among EWEB customers for demand response programs, which ones are the best fit, how much they would cost to administer and what benefits would result.
EWEB will also conduct a study on the potential to incentivize customers to conserve and consume less energy overall.
BANC, SMUD Move Forward with Consideration of CAISO Extended Day Ahead Market
September 4, 2023
by Paul Ciampoli
APPA News Director
September 4, 2023
The Balancing Authority of Northern California announced that its Commission has concurred with a staff recommendation to pursue the California Independent System Operator Extended Day Ahead Market as its preferred option for day ahead market participation.
The move will be subject to the final and individual decision-making of each of the BANC Western Energy Imbalance Market participants (Modesto Irrigation District, City of Redding, City of Roseville, Sacramento Municipal Utility District, and the Western Area Power Administration – Sierra Nevada Region).
The recommendation was based upon analysis done by BANC, which included a detailed cost evaluation conducted by Utilicast to move from WEIM to EDAM and a benefit analysis on participation in EDAM conducted by The Brattle Group.
“We have concluded that participation in EDAM provides the best benefit for BANC and its WEIM participants while leveraging the investment we have made, and preserving the benefits we see, in WEIM,” said BANC General Manager Jim Shetler. “BANC looks forward to joining PacifiCorp and others to drive further economic, environmental, and operational benefits for the EIM footprint through the EDAM. This decision is also consistent with BANC’s position that evolutionary development of markets in the West provides the most long-term durability.”
Based upon final participant approvals, BANC is looking to join EDAM by the Spring of 2026.
In a parallel action, the Sacramento Municipal Utility District has obtained approval from its Board of Directors to proceed with engaging with BANC to participate in the EDAM. This action was based upon SMUD’s separate evaluation of market options.
“Engaging with BANC to participate in the EDAM is a natural progression from SMUD’s participation in the WEIM,” said Paul Lau, CEO and General Manager of SMUD. “Not only is the EDAM an important tool to support reliability and resiliency and low rates while helping SMUD deliver on our industry-leading decarbonization goals, it will also provide broader price, reliability and decarbonization benefits in support of regional goals.”
BANC is the third largest balancing authority in California and the 16th largest in the Western Electricity Coordinating Council.
BANC is a joint powers agency whose members include the Modesto Irrigation District, the City of Redding, the City of Roseville, the Sacramento Municipal Utility District, the City of Shasta Lake, and the Trinity Public Utilities District. BANC began operations in May 2011.
BANC’s footprint currently extends from the Oregon border to Modesto and from Sacramento to the Sierra and includes the Western Area Power Administration’s transmission grid and the U.S. Bureau of Reclamations’ generation resources in California. BANC includes the California-Oregon Transmission Project, as well as the systems of its members.
California Governor, Lawmakers Reach Agreement on Set of Energy Proposals
September 2, 2023
by Paul Ciampoli
APPA News Director
September 2, 2023
California Gov. Gavin Newsom and the California Legislature reached an agreement on a set of proposals from Newsom that, among other things, will allow for the state to create a central buyer to procure clean electricity for the grid.
Under the agreement, announced on Aug. 31, the central buyer would focus on sources like offshore wind and long-duration storage to diversify the state’s energy portfolio.
The package comes in the form of an amendment to AB-1373, which was amended in the California Senate on Aug. 31.
The agreement also aligns the state’s primary clean energy planning and procurement programs – its renewable portfolio standard, resource adequacy and integrated resource planning – with California’s 100% clean electricity by 2045 goal.
The agreement also includes new measures to help prevent the misuse of the state’s new Strategic Reliability Reserve which is designed to maintain grid reliability during extreme weather events, like heatwaves.
The Strategic Reliability Reserve was developed in 2022 to expand the resources capable of managing or reducing net-peak demand during extreme events.
The Strategic Reliability Reserve provides funding to secure conventional generation, efficiency upgrades at existing natural gas plants, demand response, distributed generation, and long-duration storage.
In addition, the agreement calls for accelerating permitting for electric transmission projects.
Publicly Owned Utilities
The as amended AB-1373 includes sections related to publicly owned utilities in the state.
Existing law requires each local publicly owned electric utility serving end-use customers to prudently plan for and procure resources that are adequate to meet its planning reserve margin and peak demand and operating reserves, sufficient to provide reliable electric service to its customers.
The measure authorizes a local publicly owned electric utility to meet its minimum planning reserve margin through individual contractual procurement or through an aggregated or pooled portfolio of resources, as specified.
DOE Offers Up to $300 Million for Transmission Siting and Economic Development
September 2, 2023
by Paul Ciampoli
APPA News Director
September 2, 2023
The U.S. Department of Energy on Aug. 29 announced a funding opportunity of up to $300 million in grants for states, tribes, and local governments to accelerate and strengthen electric transmission siting and permitting processes.
The announcement of $300 million for transmission siting and economic development is the first tranche available of this $760 million program established by the Inflation Reduction Act.
Administered by DOE’s Grid Deployment Office, the Transmission Siting and Economic Development grant program “is a new initiative designed to overcome state and local challenges to expanding transmission capacity while also supporting communities along major new and upgraded lines,” DOE said.
The grant program will provide financial support to state, tribal, and local entities that are responsible for issuing the permits needed to move forward with critical electric transmission projects.
The program can fund studies, modeling, environmental planning, and analysis to assess alternatives, better inform decision making, and reduce the time it takes to process applications.
The program can also support engagement with members of the public, including tribal, rural and disadvantaged communities, and facilitate participation in regulatory proceedings at the Federal Energy Regulatory Commission and other regulatory agencies, and other activities as approved by the Secretary of Energy.
The grant program will also provide financial support to economic development projects in local communities impacted by new transmission development.
Within the $300 million funding opportunity announcement, grants are available to state, tribal, and local government applicants to support engagement, economic development, and other benefits in communities that may be affected by the construction and operation of interstate or offshore transmission projects.
Community-based projects can include energy investments such as resilient microgrids, renewable power integration, or electric vehicle charging infrastructure; support for essential community facilities for public safety, healthcare, education, and improved transit; or encouraging community togetherness by investing in community centers and creating green spaces.
Funds can also be used to support a growing workforce with job training and apprenticeship programs. Communities are invited to submit unique projects suited to local needs.
While transmission developers are not eligible for grants, they can be key partners, DOE said. “For example, they might work with siting and permitting agencies to propose innovative solutions to improve cross-jurisdictional coordination, strengthen permitting processes, and resolve permitting bottlenecks, among other things.” The grant program is not intended to replace developer-funded community benefits programs.
DOE requires applicants to express an interest in applying for funds by submitting concept papers no later than October 31, 2023 at 5 pm EDT. Full applications will be due April 5, 2024 at 5 pm EDT.
DOE will hold an informational webinar on September 14, 2023 at 2 pm EDT. Registration is required.
New Solar Project Will Add 120 of Capacity to OMPA’s Power Supply
September 2, 2023
by Paul Ciampoli
APPA News Director
September 2, 2023
The Oklahoma Municipal Power Authority on Aug. 31 announced that a project is in development to add solar to OMPA’s generating resource mix for the first time ever.
The North Fork Solar project will add 120 megawatts of capacity to OMPA’s power supply. The solar farm will be located in Kiowa County in southwest Oklahoma near OMPA members Frederick and Altus. It is expected to go online in 2024.
Recurrent Energy, a subsidiary of Canadian Solar Inc., is the developer for the project.
OMPA has reached a 15-year power purchase agreement for 100 percent of the generation produced by the project.
“OMPA is extremely excited to add North Fork Solar to our portfolio of energy resources. This will continue to diversify our energy mix and increase the amount of non-carbon resources for the benefit of our member cities,” OMPA General Manager Dave Osburn said.
Along with his role at OMPA, Osburn is Chair of the American Public Power Association’s Board of Directors.
Recurrent Energy selected Blattner Energy as the engineering, procurement and construction partner for North Fork Solar.
Once construction is completed, Recurrent Energy will own and operate the project through its Power Services business as a part of its commitment to growing the number of renewable energy projects in its operating assets portfolio.
OMPA’s resource mix in 2022 was led by natural gas at 46 percent. Its combined renewable generation equaled 27 percent of the mix, with energy coming from wind, hydro and landfill-to-gas.
Three different coal plants the Authority owned a share in closed in the last five years, as coal dipped to 15 percent of the resource mix in 2022.
OMPA’s demand has remained high, as its 2022 peak was the highest of the last decade and its overall energy delivered was third-highest during that same time period.
The Authority serves 42 municipal-owned electric systems in Oklahoma, as well as two in Arkansas and another in Texas.
Major Southwest Transmission Project Advances with Groundbreaking of Project
September 2, 2023
by Paul Ciampoli
APPA News Director
September 2, 2023
The SunZia Transmission Project, which will carry up to 4,500 megawatts of primarily renewable energy from New Mexico to markets in Arizona and California, advanced on Sept. 1 with a groundbreaking ceremony that was attended by several Biden Administration officials.
The Department of the Interior’s Bureau of Land Management approved the project in May 2023 and completed the review period for this project in less than two years.
Secretary of the Interior Deb Haaland and Senior Advisor to the President John Podesta joined federal, state and community leaders at the groundbreaking ceremony.
The SunZia Transmission Project is composed of two planned 500-kilovolt transmission lines located across approximately 520 miles of federal, state and private lands between central New Mexico and central Arizona.
The permitted route originates at a planned substation in Torrance County, New Mexico, and terminates at the existing Pinal Central Substation in Pinal County, Arizona. The project traverses Grant, Hidalgo, Lincoln, Luna, Sierra, Socorro, Torrance and Valencia counties in New Mexico and Cochise, Graham, Greenlee, Pima and Pinal counties in Arizona.
SRP Unveils Pilot Project to Deploy Long-Duration Energy Storage
September 2, 2023
by Paul Ciampoli
APPA News Director
September 2, 2023
Arizona public power utility Salt River Project and CMBlu Energy on Aug. 31 announced a pilot project to deploy long-duration energy storage in the Phoenix area.
The 5-megawatt, 10-hour-duration project, named Desert Blume, will use CMBlu’s unique non-lithium technology, and the firm will build, own and operate the batteries on behalf of SRP at their Copper Crossing Energy and Research Center in Florence, Arizona.
SRP is the first U.S. electric utility to implement CMBlu’s batteries at this scale.
CMBlu’s Organic SolidFlow battery technology uses a non-flammable proprietary mixture of solid electrolyte and water-based electrolytes with high energy density and performance. The systems are fully recyclable, free of rare metals, and housed inside buildings.
CMBlu expects its battery system to cost-effectively store and deliver energy for two to three times longer per cycle than traditional lithium-ion technology, which typically targets a four-hour duration.
This pilot is part of an approved third phase of continued development at SRP’s Copper Crossing Energy and Research Center.
The first phase will add two flexible natural gas turbines with a total output of less than 100 MW, and the second phase will add a utility-scale advanced solar generation facility capable of generating up to 55 MW of solar energy.
SRP selected CMBlu after issuing a request for long-duration storage project proposals from emerging energy storage companies.
The Electric Power Research Institute will support performance monitoring of this pilot project and help validate the real-world performance of the technology in Arizona’s hot and dry climate.
The SRP pilot in Florence represents the latest application of CMBlu’s technology following several other project announcements this year.
Construction is slated to begin in early 2025, and SRP and CMBlu expect the pilot to be operational in December 2025.