Tacoma Power Joins CAISO’s Western Energy Imbalance Market
March 14, 2022
by Peter Maloney
APPA News
March 14, 2022
Tacoma Power has become one of the newest members of the California Independent System Operator’s Western Energy Imbalance Market (WEIM).
“Gaining first-hand experience with centralized markets will better prepare us to engage in regional discussions about expanding such markets to advance our service delivery in safe, reliable, affordable, environmentally-friendly ways,” Clay Norris, WEIM sponsor and power manager for Tacoma Power, said in a statement.
Publicly owned Tacoma Power serves nearly 200,000 electric customers in the Tacoma, Washington, area.
Tacoma Power was joined in its March 2 entry in the WEIM by Avista Utilities, which serves more than 400,000 electric customers in Washington and Idaho.
While Tacoma Power and Avista are the newest members of WEIM, they are expected to be joined later this year by Bonneville Power Administration and Tucson Electric Power.
Once all four utilities have joined WEIM, the organization will have 19 members serving nearly 77 percent of electric demand in the Western United States.
The WEIM uses the latest technology to find and deliver the lowest-cost energy to its members on a regional basis. Exchanging energy supplies across a wide, multi-state region enhances reliability and provides environmental benefits through the reduction of renewable energy curtailments, leading to lower greenhouse gas emissions because excess renewable energy in one area can be deployed elsewhere potentially offsetting the use of fossil fuels, the California Independent System Operator (CAISO) said.
As more utilities join WEIM, CAISO is developing an extended day-ahead market, that will be able to handle the majority of participants’ energy transactions. That initiative is now working through a stakeholder process that began in January.
Last March, the Turlock Irrigation District and the Balancing Area of Northern California Phase 2, comprised of the Modesto Irrigation District, the City of Redding, the City of Roseville, and the Western Area Power Administration (WAPA) Sierra Nevada Region, began participating in WEIM.
Four Western States Sign MOU To Develop A Regional Hydrogen Hub
March 9, 2022
by Peter Maloney
APPA News
March 9, 2022
The 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.
The MOU calls for the governors to work together to develop a response to the request for proposals (RFP) that the Department of Energy (DOE) is expected to issue by May 2022 for development of four or more regional hydrogen hubs and to collaborate on the response to the request for information (RFI) issued Feb. 15, 2022 pursuant to the Infrastructure Investment and Jobs Act.
Each of the states also said the joint proposal would be the only proposal they would participate in for a hydrogen hub and that they will not submit their own standalone proposal in cooperation with other states or entities other than the signatories of the MOU. If all the signatories of the MOU agree, other Western states may be added to the MOU.
The MOU calls for each of the four states to appoint up to three representatives to a workgroup, who will coordinate the states’ collective work on development of the regional hydrogen hub proposals.
At least two of the three representatives to the workgroup shall be employees or representatives of a state agency, official board, or other state body or research institution in the respective states.
The aim of the workgroup will be to develop a multi-state action proposal to accelerate commercialization of, and demonstrate the production, processing, delivery, storage, and end-use of clean hydrogen.
The signatories further agreed that any external written communication about the regional Hydrogen Hub collaboration would be shared with the workgroup in advance.
The governors said the four signatory states of the MOU are uniquely situated to become a clean hydrogen hub because of their high-quality wind, solar, biomass, natural gas, and other energy resources, as well as their “world-leading national labs and academic institutions” and multiple industrial operations and large urban areas that could potentially be early adopters of clean hydrogen technologies.
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.
Separately, the DOE last June launched an effort to reduce the cost of clean hydrogen by 80 percent to $1 per kilogram, from about $5 per kilogram, in one decade.
To help public power utilities understand the potential – and the limitations – of hydrogen, and why they should get involved, we developed Understanding Hydrogen: Trends and Use Cases.
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.
CPS Energy In Texas Signs Deal For Underground Pumped Storage Project
March 9, 2022
by Peter Maloney
APPA News
March 9, 2022
CPS Energy, the public power utility serving San Antonio, Texas, has signed a deal with Quidnet Energy for a pumped energy storage project that could eventually be as large as 15 megawatts (MW).
The 15-year agreement calls for an energy storage project employing Quidnet’s geomechanical pumped storage (GPS) technology. The plan calls for the project to be developed in two phases, starting with a 1-MW, 10-hour storage facility.
Quidnet’s technology uses off-peak electricity to pump water from a holding pond into an impermeable rock under the ground where it is held under pressure until the pressurized water is released to power a hydroelectric turbine. The closed loop process is designed to conserve water by reusing it and minimizing evaporation.
The technology employs much of the same expertise, workforce, and supply chains that are used to drill for oil and gas, and it uses conventional drilling technology and off-the-shelf hydropower equipment, Quidnet said. The technology can also be deployed across a diverse range of geographic locations and be scaled by using modules that go from 1 MW in size up to 10 MW, the company said.
“Incorporating Quidnet’s homegrown-Texan energy storage solution allows us to create a cleaner electric supply while supporting our local energy industry workforce and lowering costs for our customers,” Rudy Garza, interim president and CEO of CPS Energy, said in a statement.
CPS Energy also said the energy storage project would support its Flexible Path Resource Plan that aims to reduce the utility’s net emissions by 80 percent by 2040.
Under its Flexible Path Resource Plan CPS Energy’s intends to close coal plants, integrate technologies like energy storage and electric vehicles, expand the use of renewable resources, and add more programs and services such as energy efficiency and demand response. CPS aims to increase its renewable resources by 127 percent by 2040 while decreasing gas- and coal-fired generation by 72 percent and 61 percent, respectively.
Last year a Department of Energy study found that hydropower, including pumped hydro storage facilities, could be critical to ensuring the reliability of the nation’s electric grid during extreme weather events.
Quidnet has developed energy storage test sites in Medina and San Saba counties in Texas and is working on pilot projects in Ohio, New York, and Alberta, Canada. In addition to venture capital backing, Quidnet has received support from the Department of Energy, the New York State Energy Research and Development Authority, and Emissions Reduction Alberta.
Paper Details Carbon Capture Utilization And Sequestration Projects
March 9, 2022
by Paul Ciampoli
APPA News Director
March 9, 2022
A paper prepared for the American Public Power Association (APPA) and several other parties offers details on carbon capture utilization and sequestration (CCUS) projects representing various stages of technology development and scale underway in North America.
The paper, which also identifies further work for CCUS to contribute to a low-carbon energy grid, points out that CCUS initially was focused on coal-fired carbon dioxide (CO2) emissions. The report features several CCUS projects at public power utilities and/or communities.
Over the last decade, other work has pursued potential application to natural gas-fired combined-cycle generating assets, the report said.
Twelve CCUS projects located in North America are either operating, operable but on hold, or the subject of detailed engineering studies, according to the paper.
“Operating issues encountered by some of the first projects — augmented by research aimed to reduce cost and improve reliability — could potentially lead to full-scale CCUS demonstrations,” the paper noted.
Four categories of carbon capture technology are under development. These are absorption processes, typically employing an amine solvent, adsorption utilizing a solid substrate, membranes for CO2 separation, and cryogenic separation.
The paper said that most large-scale CCUS projects in North America — four addressing natural gas-fired combined cycle and eight coal-fired generators — employ absorption processes and utilize second-generation solvents that can lower operating and capital cost relative to earlier versions of the process.
Four natural gas-fired combined-cycle projects are developing process designs. Three of these projects are near CO2 pipelines or fields that may accommodate geologic sequestration.
Of the eight pulverized coal projects, two are either operating or operational and on-hold.
Design studies are in progress at five other domestic U.S. generating stations, including Nebraska Public Power District’s Gerald Gentleman.
The predominant control technology is amine-based absorption, applying “lessons learned” from two projects: Boundary Dam Unit 3 and Petra Nova, the paper said.
It noted that most pulverized coal sites benefit from proximity to oil fields or pipeline transport for CO2 storage.
The U.S. Department of Energy is funding approximately 75 evolving processes in the four previously defined categories to achieve a target CO2 cost of $30 per metric ton (tonnes). “The outcome of this program employing bench-scale, pilot plant, and large-scale projects could be additional CCUS options with lower cost and improved reliability,” the paper said.
The report also addresses the CCUS value chain, specifically pipelines, and storage, and discusses the topic of cost evaluation.
The paper said that while capturing CO2 from power plant emissions, successful CCUS requires a complete “value-chain” of activities.
“The creation of a functioning and economical value chain is equally important to CO2 capture for CCUS to be a viable option. This includes both pipelines to transport CO2 and storage facilities.”
CO2 pipeline infrastructure currently totals 5,500 miles and is located mainly within U.S. oil-producing states and Canadian provinces.
“Some stakeholders are estimating the need for pipeline inventory to increase four to more than 10-fold for it to be able to significantly contribute to large reductions in emitted CO2,” the paper stated.
CO2 pipelines operate at significantly higher operating pressure than for natural gas transport, the paper noted.
But, according to the paper, experience shows that CO2 pipelines are safe. “There has not been a single human fatality or serious injury reported in the U.S. from transporting or storing CO2.”
The paper also pointed out that the cost to build CO2 pipelines is highly variable and depends on length, routing, and need for contaminant removal.
With respect to storage, enhanced oil recovery (EOR) is routinely used by the petroleum industry and has proven to be a reliable means to sequester CO2, the paper said.
The DOE projects 186 billion tonnes to 232 billion tonnes of capacity while the petroleum industry estimates 247 billion tonnes to 479 billion tonnes.
Deep saline reservoirs offer the largest capacity and are the most prominent but not the only option. Unlike EOR, there is no revenue to offset cost, the report said.
DOE estimates storage costs vary from $1/tonne to $18/tonne.
Cost Evaluation
A key metric to gauge CCUS’s economic viability is the cost to avoid a tonne of CO2.
Preliminary results for most U.S. coal-fired projects predict cost at or below DOE’s reference study cost of $55/tonne and potentially approaching the target of $30/tonne.
The eleven projects operating and planned will identify process improvements to lower cost and improve reliability, the paper said.
“Advanced capture technologies and pipeline ‘hub’ concepts have the potential to further lower cost. Success in these endeavors — requiring resources and a workable development timetable — can enable CCUS to provide reliable CO2capture and safe byproduct storage.”
Along with APPA, the paper was prepared for the Edison Electric Institute, National Rural Electric Cooperative Association, Tri-State Generation and Transmission Cooperative, Indiana Electric Association, WEC Energy Group, LG&E, and KU Energy and Salt River Project.
City Utilities of Springfield, Mo., Raises Funds For United Way Through Unique Raffle Event
March 8, 2022
by Paul Ciampoli
APPA News Director
March 8, 2022
City Utilities of Springfield, Mo., raised just under $10,000 for United Way of the Ozarks through a raffle event with the winner detonating the implosion of power plant stacks.
After providing electricity to Springfield for over 60 years, the five generators inside the utility’s James River Power Station have been retired.
Over the past few months, demolition crews have been removing exterior components of the partially retired power generation station with one of the final steps being to collapse the four stacks on the south side of the main building.
Jamie Dopp, Manager of Communication at the utility, said that through the “Blasting for the Better” fundraiser for the United Way of the Ozarks, City Utilities of Springfield raised $9,705.
A woman from California won the raffle and traveled to Springfield to tell her brother, a 43-year CU James River Power Station employee, that she was giving him the opportunity to detonate the implosion of the stacks.
Dopp noted that the raffle was communicated through the utility’s social media channels and through press releases and local news outlets.
“City Utilities is committed to making our community better,” Dopp said. “With the ‘Blasting for the Better’ fundraiser, we saw the opportunity to turn the implosion into an opportunity to give back to our neighbors. If future opportunities present itself, City Utilities would explore opportunities to use its resources for the benefit of our community.”
“The stacks were part of the skyline for the past 65 years and helped City Utilities provide reliable power to the community and keep our homes warm. It was bittersweet to see them come down,” said Gary Gibson, City Utilities President and CEO. “But the real story is the men and women who worked here to keep the lights on, solve problems, and were mechanical wizards who kept this plan running for many years. To each of them, we say thank you.”
Gibson said that this was “that once in a lifetime opportunity that a lucky winner, and our community, will remember for many years. The employees of City Utilities have been leaders in supporting United Way of the Ozarks and this unique opportunity, helped to raise additional funds and bring attention to the work done by the local United Way.”
SMUD Signs Its First Combined Solar And Battery Storage Energy System PPA
March 8, 2022
by Paul Ciampoli
APPA News Director
March 8, 2022
D. E. Shaw Renewable Investments and California’s Sacramento Municipal Utility District (SMUD) on March 7 announced the signing of SMUD’s first combined solar and battery energy storage system renewable power purchase agreement sized at 200 megawatts/400 megawatt hours.
According to D.E. Shaw, the project is the largest combined solar and battery energy storage system generation facility announced in northern California under PPA contract at this time.
The project will be located on the east side of Sacramento County and is expected to reach commercial operation no later than 2024.
The agricultural ranch that currently operates on the proposed project site will continue to run in parallel to the energy facility, and the project will incorporate key aspects of environmental sustainability into design and ongoing operations. Affiliates of Bona Terra Energy, LLC assisted as co-developers in the project.
As part of the project, the SMUD Clean Energy Community Leaders-Mark Gall Memorial Scholarship will be funded by D. E. Shaw Renewable Investments.
The scholarship will help cultivate local workforce talent and support students in the greater Sacramento area who demonstrate interest in renewable energy development.
Advanced Metering Project Close To Completion In Evansville, Wisconsin
March 7, 2022
by Paul Ciampoli
APPA News Director
March 7, 2022
An advanced metering project for retail customers of Wisconsin public power utility Evansville Water & Light is close to the finish line.
“For a small utility such as we are, undertaking a project of that size is a formidable task. As Chair of the Municipal Services Committee, I had to make sure our team had access to all the expertise we could call on before beginning,” said Jim Brooks, a City Council member for Evansville and incoming Chair of the American Public Power Association’s (APPA) Policy Makers Council (PMC).
The committee worked with the City Administrator and WPPI Energy staff “to make sure that training was in place and we were confident to get started. Our staff worked diligently to make sure that transition was successful,” Brooks said.
Evansville Water & Light is a member of WPPI Energy, which serves 51 locally owned electric utilities in Wisconsin, Iowa and Upper Michigan.
“Of course, the COVID-19 pandemic came with unanticipated workforce and supply chain issues that disrupted best-laid plans for people and organizations around the world. In terms of our advanced metering project, Evansville Water & Light is no exception.”
As a result, “we still have a few dozen water meters to replace before we can bring full function to our new meters, but we’re closer every week.”
“AMI will give customers real-time information that will allow them to take better control of their energy use,” Brooks noted.
He also praised the frontline workers who did the heavy lifting to properly install all new metering correctly.
He highlighted the “top-to-bottom effort that it takes to complete the process. No single part of the enterprise is more vital than any other.”
“I also want to acknowledge the role of APPA and WPPI in providing support and logistics that we would never have the resources to develop on our own,” Brooks said.
Evansville Water & Light notes on its website that use of advanced meters will help it operate more cost-effectively.
The utility currently meters over 3,700 electric meters and 2,200 water meters, “and our old system required sending workers out in trucks and on foot to complete monthly readings, conduct regular testing, and perform disconnections and reconnections,” the utility said.
Among the benefits from the project is that advanced meter data will enable the utility’s customers to analyze their electric and water consumption and take advantage of efficiency programs that will provide customers with more control over their usage and bills.
Advanced metering will also allow faster detection of service-related problems such as electric outages, power quality issues, water leaks, and potential sources of water cross-contamination. “Transitioning to the new meters also helps ensure that our electric and water systems will stay in good working order for the years to come,” the utility said.
Department of Energy Releases Energy Supply Chain Report
March 7, 2022
by Paul Ciampoli
APPA News Director
March 7, 2022
The Department of Energy (DOE) recently released a report on a review of the nation’s energy supply chain that identified a range of risks and vulnerabilities that vary by technology and will require a sweeping set of diverse policy actions, DOE said. The report also includes recommendations for congressional action.
The report was issued in response to President Biden’s Executive Order (EO) 14017, America’s Supply Chains, issued last February.
DOE solicited stakeholder input on “approaches and actions needed to build resilient supply chains for the energy sector,” as it prepared the report pursuant to the EO. The American Public Power Association (APPA) and the Large Public Power Council (LPPC) submitted comments in response to a related DOE Request for Information (RFI).
In the report, which was issued in late February, DOE said that along with identifying a range of risks and vulnerabilities that vary by technology, it also identified common threats, risks, and vulnerabilities across all selected technologies.
DOE said that these common risks and vulnerabilities are grouped into seven main opportunities for action:
- Increase raw material availability;
- Expand domestic manufacturing capabilities;
- Support formation of and invest in diverse, secure, and socially responsible foreign supply chains;
- Increase the adoption and deployment of clean energy;
- Improve end-of-life energy-related waste management,;
- Attract and support a skilled workforce for the clean energy transition; and
- Enhance supply chain knowledge and decision-making.
Together, they create a strategy to secure a clean energy transition that DOE said it will work with other federal agencies to implement.
Global Energy Marketplace
DOE said that an analysis of the global energy marketplace “shows that many governments and government coalitions have adopted coordinated, government-led strategies and industrial policies to advance ad unlock significant investment in key supply chain segments.”
It said that one example is China’s investment in domestic cobalt production and processing paired with investment in international raw material inputs that enabled China to corner a significant market share in cobalt processing.
Through the report, DOE “maps out a strategy to rapidly secure the critical supply chains necessary to meet economic, national security, and climate goals.”
The policy strategies in the report are informed by 13 supporting deep dive supply chain assessment documents conducted by researchers from DOE and several of its national laboratories, in consultation with stakeholders across the public, private, and social sectors.
In addition to targeted consultation, the policy strategies are informed by comments received in response to the RFI.
Report Highlights Policies
The report highlights policies that DOE said will enable the United States to build resilient supply chains to meet energy security, national security, economic, and climate objectives.
Specifically, the report identifies cross-cutting executive actions that address seven strategic opportunities applicable across all technologies and includes technology-specific executive actions.
It also identifies recommended congressional actions that address strategic supply chain objectives applicable across all technologies. The report also lays out technology-specific recommendations requiring congressional action.
DOE said that the supply chain review reveals several supply chain opportunities that will require additional authority and funding in the next 10 years.
Tables included in the report summarize sector-wide and technology-specific recommendations that will require congressional support to provide DOE and other federal agencies additional authority needed to expand support for supply chains.
The report is available here.
APPA/LPPC Comments
In response to the RFI, APPA and LPPC said that DOE should utilize a risk-based framework for supply chain security and further recommended that DOE study domestic and international supply of both distribution and bulk electric system transformers and the components needed to manufacture these transformers.
APPA President And CEO Joy Ditto Receives Association Leadership Award
March 7, 2022
by Paul Ciampoli
APPA News Director
March 7, 2022
Joy Ditto, President and CEO of the American Public Power Association (APPA), on March 2 received an Association Leadership Award from DCA Live.
“It is an incredible honor to be recognized by DCA Live through this award,” said Ditto, who assumed the role of president and CEO of APPA in January 2020.
“My goal over the past two years has been to enable APPA to thrive, even under uncertain and difficult circumstances, drawing inspiration from the hundreds of amazing public power leaders with whom I am grateful to work and from my dedicated and hardworking staff,” she said.
Prior to being named APPA President and CEO, Ditto was the president and CEO of the Utilities Technology Council, a global trade association representing electric, gas, and water utilities on their mission-critical information and communications technologies.
Before joining UTC, she was with APPA for 15 years, rounding out her tenure as the senior vice president for legislative and political affairs.
Since 2014, DCA Live has hosted live and virtual events featuring the fastest growing companies and most dynamic professionals in the Washington, D.C., region’s legal, association and nonprofit, entrepreneur, federal tech, real estate and corporate communities.
The complete list of 2022 DCA Live Association Leadership Awardees is available here.
Battery Storage System For Virginia’s Danville Utilities Slated For May Completion
March 7, 2022
by Paul Ciampoli
APPA News Director
March 7, 2022
Construction of a battery storage system for Virginia public power utility Danville Utilities is underway. The system will reduce the city’s energy demand during peak usage times and lower power costs for the city.
The battery storage system has a rated capacity of 10.5 megawatts (MW) and 24.6 megawatt hours, meaning it can provide approximately 10.5 MW of power for almost 2.5 hours during the peak events that determine the city’s costs for transmission service and power capacity.
Using the stored energy during these times will reduce the city’s electricity demand during these peak hours and help prevent increases in the future cost of electricity, Danville Utilities said
“The savings from this project are much greater than paying the transmission costs,” Jason Grey, director of Danville Utilities, said on March 3.
The battery project is being installed, operated, and maintained by Delorean Power. Delorean Power is an Arlington, Virginia-based company that is developing battery energy storage projects across the mid-Atlantic, Northeast, and Midwest.
The project was approved by the Danville City Council in January 2021, but there have been delays in the project’s completion due to the pandemic.
The project is expected to be complete and operational in May.