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California, Texas grid operators respond to soaring temperatures, resulting stress on supplies

June 16, 2021

by Paul Ciampoli
APPA News Director
June 16, 2021

Power grid operators in California and Texas this week responded to soaring temperatures and the resulting spike in power demand through a number of steps. The California Independent System Operator (CAISO) called for the deferral of scheduled maintenance on generators or transmission lines, if possible, while the Electric Reliability Council of Texas (ERCOT) issued a call for energy conservation at the start of the week.

With extreme heat expected to break temperature records and linger over much of California and the West for the remainder of the week, the California Independent System Operator (ISO) on June 15 said that it is asking consumers to be prepared to conserve energy to help avoid the possibility of rotating power outages.

Those steps would include setting thermostats to 78 degrees or higher, if health permits, avoiding use of major appliances and turning off unnecessary lights.

CAISO said that if it issues a Flex Alert calling for voluntary conservation between the hours of 4 p.m. to 9 p.m. on Wednesday and possibly Thursday, consumers would be encouraged to take other steps to manage their electricity usage to maintain comfort prior to an alert taking effect.

The grid operator said that an abnormally strong ridge of heat is forecast to bring temperatures as high as 115 degrees to the California interior that could last until the weekend. “Because of the extreme heat and nighttime lows expected to cool off only between 78 and 83 degrees, the state’s electric grid will be straining to meet evening demand when air conditioners are in heavy use and solar energy generation is waning.”

The ISO’s own projections currently show electricity demand exceeding power supplies that are guaranteed under the state’s Resource Adequacy (RA) requirements for several days this week. The biggest deficit is projected for Thursday between 8 p.m. and 9 p.m. when demand is forecasted to be 43,261 megawatts (MW), including required contingency reserves, or 3,374 MW more than expected to be available under the RA program.

The ISO noted it has steps it can take to close that gap, including demand response programs that utilities use to provide incentives for customers to conserve, but one regularly relied on asset — imported electricity from neighboring states — could be affected.

“That’s because the National Weather Service is now forecasting that extreme heat is expected to engulf much of the Western United States. Triple-digit heat is forecast from the deserts east of Los Angeles all the way north to the Canadian border, resulting in tight energy supplies over a large geographic area,” CAISO said.

To help prepare for the heat and heightened stress on the grid, the ISO declared a grid Restricted Maintenance Operation for noon to 10 p.m. for June 15 through Friday. The directive cautions energy generators that all available resources are needed, and to defer scheduled maintenance on generators or transmission lines, if possible.

If a Flex Alert is called this week, consumer conservation can make a big difference, as it has during past heat waves when such concerted action helped avoid grid emergencies, including rotating outages, the grid operator said.

Texas

Meanwhile, the Electric Reliability Council of Texas (ERCOT) on June 15 said that when it issued a call for conservation on Monday, Texans responded strongly by reducing electric demand during the late afternoon. ERCOT continues to encourage Texans to conserve power each afternoon during the peak hours of 3 to 7 p.m. through this Friday.

“The grid is operating exactly as it was designed and intended. The issuance of conservation notices is a common practice and prevents ERCOT from entering emergency conditions. Conservation efforts combined with the changes in procedures and processes implemented by ERCOT and the PUC following the winter storm prevented the possibility of rotating outages yesterday and ensured that no Texans lost power,” ERCOT said.

ERCOT said it has been leveraging every resource at its disposal, including activating all available generating units to help serve customer demand before calling for conservation. Approximately 1,200 MW of power was regained overnight Monday when some repairs were completed.

On June 14, ERCOT set a new June record for electricity demand. Based on preliminary data, the new record is 69,943 MW, which exceeds the 2018 June record by approximately 820 MW.

Power plant owners continue repairs of unexpected equipment failures, “and ERCOT is using all the tools in its toolbox to maintain reliability in the face of potential record-setting electricity demand,” it said.

“All of our local plants are up and running, and virtually all of them are at full capacity,” said Rudy Garza, Chief Customer & Stakeholder Engagement Officer for San Antonio, Texas public power utility CPS Energy, on June 14. “We’re asking our other customers to help even further by conserving energy to support the grid.”

CPS Energy also provided a set of actions that residential and business customers can take to conserve energy.

Austin, Texas public power utility Austin Energy on June 14 noted that its staff works year-round to maintain and monitor a diverse mix of power generation plants to ensure peak performance during extreme conditions. The utility also employs various demand response programs that help lower electric use during strained grid conditions.

In 2020, Austin Energy rolled out Weekly Electricity Update and High Bill Alert emails providing customers with electricity usage details and energy-efficiency tips. These emails help customers learn more about their electricity usage patterns and trends. They also contain insights and tips to help customers lower their electricity usage and save on their bills.

The Weekly Electricity Updates email compares energy usage rates from week to week, while the High Bill Alerts email lets customers know when their usage is higher than compared to the same monthly cycle from the previous year.

These notifications are a free and optional service automatically provided to eligible City of Austin customers with an advanced meter at their location and an email address on file. Customers can unsubscribe at any time.

Austin Energy this week also provided tips for Austin Energy customers to help conserve energy.

North Carolina executive order sets target for 8 GW of offshore wind by 2040

June 15, 2021

by Peter Maloney
APPA News
June 15, 2021

Roy Cooper, North Carolina’s Democratic governor, recently issued an executive order highlighting the state’s commitment to offshore wind power and setting a target to procure 8 gigawatts (GW) of offshore wind energy by 2040.

Executive Order No. 218 also establishes an interim offshore wind development target of deploying 2.8 GW of wind energy plants off the North Carolina coast by 2030 and directs the state’s Secretary of Commerce to establish the N.C. Taskforce for Offshore Wind Economic Resource Strategies (TOWERS) to advise on programs and policies to advance offshore wind projects.

The order also directs the state’s Department of Environmental Quality and Department of Military and Veterans Affairs to designate offshore wind coordinators and take steps to support offshore wind and calls for quarterly meetings of the North Carolina Offshore Wind Interagency Workgroup to ensure offshore wind activities are well coordinated among relevant agencies.

In addition to creating economic benefits in the state, the executive order aims to help achieve the North Carolina Clean Energy Plan goal of a 70 percent reduction in power sector greenhouse gas emissions by 2030 and carbon dioxide neutrality by 2050.

Wind power projects off the Atlantic Coast have the potential to create 85,000 jobs and attract $140 billion in capital investment over the next 15 years, according to the executive order.

The executive order follows a bipartisan memorandum of understanding (MOU) among the governors of North Carolina, Maryland and Virginia in October 2020 that created the Southeast and Mid-Atlantic Regional Transformative Partnership for Offshore Wind Energy Resources (SMART-POWER).

The SMART-POWER MOU provides a framework for the three states to promote, develop and expand offshore wind energy and the accompanying industry supply chain and workforce.

Several Mid-Atlantic states have already taken steps to encourage offshore wind development. Connecticut in late 2019, through a competitive solicitation, selected Vineyard Wind to develop 804 megawatts (MW) of offshore wind. Earlier in 2019, Massachusetts approved long-term contracts for 800 MW of offshore wind between Vineyard Wind and investor-owned electric utilities in the state.

In 2018, New Jersey Gov. Phil Murphy signed an executive order directing the state’s Board of Public Utilities to fully implement legislation to begin the process of moving the state toward a goal of having 3,500 MW of offshore wind in place by 2030.

More recently, the Biden administration and California Gov. Gavin Newsom identified regions off the California coast that could support White House’s goal of deploying 30 GW of offshore wind energy by 2030.

And in March, the New York State Public Service Commission, along with the Long Island Power Authority and other stakeholders adopted a plan to build a 7.6-mile transmission line to connect the proposed 132-MW wind farm in offshore New York waters.

Members of Southeast energy exchange market say proposed changes will boost transparency

June 15, 2021

by Paul Ciampoli
APPA News Director
June 15, 2021

Members of the Southeast Energy Exchange Market (SEEM) recently offered changes to an automated, intra-hour energy exchange proposal the group previously submitted to the Federal Energy Regulatory Commission (FERC) that they said will create greater oversight ability for FERC and more transparency for all participants.

The group said that the greater oversight ability for FERC will come via weekly, confidential submissions of significant data on the SEEM market operation. The increased transparency for all participants comes from commitments and clarifications around public posting of auditor reports and responses to regulatory inquiries, the group said.

SEEM members initially sought FERC approval of the automated, intra-hour energy exchange in a Feb. 12, 2021 filing.

The SEEM platform is an extension of the existing bilateral market in the Southeast. Its design will facilitate sub-hourly, bilateral trading, allowing participants to buy and sell power close to the time the energy is consumed, utilizing available unreserved transmission.

Founding members of SEEM are expected to include:

Participation in SEEM is open to other entities that meet the appropriate requirements and some utilities will make decisions about whether to commit following FERC approval. 

The founding members represent nearly 20 entities in parts of 11 states with more than 160,000 megawatts (summer capacity) across two time zones. They serve the energy needs of more than 32 million retail customers.

EPA, Army Corps of Engineers Revise the Definition of Waters of the United States

June 15, 2021

by Paul Ciampoli
APPA News Director
June 15, 2021

The U.S. Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers will formally revise the definition of “waters of the United States” (WOTUS), the Environmental Protection Agency (EPA) Administrator Michael Regan announced on June 9.

The Clean Water Act prohibits the discharge of pollutants from a point source to navigable waters unless otherwise authorized under the Act. Navigable waters are defined in the Act as “the waters of the United States, including the territorial seas.” Thus, WOTUS is a threshold term establishing the geographic scope of federal jurisdiction under the Clean Water Act. The term “waters of the United States” is not defined by the Act but has been defined by EPA and the Army in regulations since the 1970s and jointly implemented in the agencies’ respective programmatic activities.

The 2020 Navigable Waters Protection Rule (NWPR) was identified in President Biden’s Executive Order 13990, which directs federal agencies to review all existing regulations, orders, guidance documents, policies, and any other similar agency actions promulgated, issued, or adopted between January 20, 2017, and January 20, 2021.

The NWPR addresses traditional navigable waters and territorial seas but narrowed the extent of federal jurisdiction by excluding isolated water bodies, “ephemeral” waters that form only in response to rain, and most ditches.

Upon review of the NWPR, the agencies have determined that the rule is significantly reducing clean water protections. The lack of protections is particularly significant in arid states, like New Mexico and Arizona, where nearly every one of over 1,500 streams assessed has been found to be non-jurisdictional, according to the agencies.

As a result of these findings, the Department of Justice on June 9 filed a motion requesting remand of the NWPR rule. The action reflects the agencies’ intent to initiate a new rulemaking process that restores the protections in place prior to the 2015 WOTUS implementation, and anticipates developing a new rule that defines WOTUS “and is informed by a robust engagement process as well as the experience of implementing the pre-2015 rule, the Obama-era Clean Water Rule, and the Trump-era Navigable Waters Protection Rule,” EPA noted in a news release.

EPA said the agencies’ new regulatory effort will be guided by the following considerations:

EPA will hold public outreach sessions around the country this summer and fall. Repealing and replacing the NWPR will be a multi-year, long process and during that time, the prior rules issued in 1986 and amended through guidance, thereafter, will be in effect. It is unclear what will happen to the thousands of jurisdictional determinations that have already been made under the NWPR.

The American Public Power Association (APPA) generally supported the NWRP rule. A clear WOTUS definition is critically important as the electric utility industry transitions its generation fleet to low and non-emitting resources. The association believes that the NWPR provided clear descriptions of exclusions for many water features that traditionally have not been regulated.

APPA grant to fund research initiative tied to enhancing grid resilience

June 15, 2021

by Paul Ciampoli
APPA News Director
June 15, 2021

The University of Massachusetts Amherst’s Energy Transition Institute (ETI) has been awarded a grant of more than $100,000 from the American Public Power Association’s (APPA) Demonstration of Energy & Efficiency Developments (DEED) program to launch Project Groundwork, a research initiative that will explore electric distribution solutions to enhance grid resilience.

ETI is partnering on the effort with Groundwork Data, a non-profit research initiative focused on public infrastructure, as well as the Massachusetts Municipal Wholesale Electric Company (MMWEC), the joint action agency for municipal utilities in the Commonwealth.

Project Groundwork examines the costs and benefits of a set of innovative strategies for undergrounding utility lines in non-high-density cities.

These strategies include:

The research team will construct a model that optimizes construction of new utility corridors on the basis of estimated cost and projected benefits, including enhanced reliability of electric service and access to broadband.

The team will then use this model to analyze investment scenarios based on mapping data from towns and cities across the U.S.

“Municipal utilities have a hundred-plus year track record of operational excellence as evidenced through providing the most affordable and reliable services across the country,” said Christopher Roy, general manager of Shrewsbury Electric and Cable Operations and a board member of DEED.

The project was awarded a DEED grant of $123,198 to develop the initial cost-benefit model.

“MMWEC is pleased to support this effort to better inform municipal utilities on the feasibility of undergrounding in their specific communities,” said MMWEC Chief Executive Officer Ronald DeCurzio in a statement. “The model being developed by the research team is expected to benefit municipal utilities across the country.” 

Additional information about ETI is available here.

To learn more about the DEED program, click here.

S&P, Fitch affirm New York Power Authority’s credit rating

June 15, 2021

by Paul Ciampoli
APPA News Director
June 15, 2021

S&P Global Ratings and Fitch Ratings have both affirmed their strong ratings on New York Power Authority’s (NYPA) long-term bonds and short-term debt, NYPA reported on June 15.

NYPA said that the ratings align with New York State’s overall positive fiscal outlook, as announced by Governor Andrew Cuomo June 14.

 S&P and Fitch both affirmed an AA rating for more than $1.6 billion of NYPA senior revenue bonds as well as an A1-plus rating and F1-plus rating for the Power Authority’s subordinate lien series 1-3 commercial paper and its series 1 extendible municipal notes.

S&P noted that its positive rating reflects “favorable leverage metrics even after the utility added $1.1 billion of debt in 2020,” referring to NYPA’s historic green bond sale, which won NYPA Bond Buyer’s Deal of the Year 2020.

Fitch noted that “NYPA’s financial profile remains strong” and it “benefits from very strong rate flexibility.”

 “These ratings reflect NYPA’s financial strength and stellar credit metrics, and our commitment to maintaining them through this unprecedented pandemic,” said Gil Quiniones, NYPA president and CEO, in a statement. “They ensure NYPA is able to continue leveraging the capital markets so that we can continue to provide affordable, reliable, and green electricity in support of the state’s transition into a clean energy economy.”

Delaware Municipal Electric Corporation names Kimberly Schlichting as new President, CEO

June 15, 2021

by Paul Ciampoli
APPA News Director
June 15, 2021

Delaware Municipal Electric Corporation’s (DEMEC) Board of Directors on June 15 announced that Kimberly Schlichting has been named as DEMEC’s new President and CEO.

Schlichting will be the first woman to lead the nonprofit corporation, which owns and operates electric facilities that provide generation, transmission and distribution of electric power and energy to eight municipal electric utility members in Delaware and operates with a $150 million budget.

“In anticipation of Patrick McCullar’s departure, the DEMEC Board undertook a CEO succession planning process, which resulted in the unanimous selection of long-time COO Kimberly Schlichting,” said Board Chair Morris Deputy in a statement.

Schlichting joined DEMEC in 2003 and has held several leadership roles.  She most recently served as Chief Operating Officer and senior vice president of power supply.  In this role, she provided operational responsibility and leadership to DEMEC’s power supply portfolio management, government relations, communications, technical services, environmental affairs, sustainability, risk, insurance, strategic planning, mutual aid and member programs. This included leading the organization’s North American Electric Reliability Council (NERC) compliance activities. 

During her tenure, she also led major operational and efficiency improvements in DEMEC’s generation assets, enhanced training programs and advocated with state and federal policymakers on behalf of DEMEC and its members.

Schlichting serves on the American Public Power Association (APPA) Board of Directors and as a member of its Executive Committee.  She also serves as the alternate trustee on the American Municipal Power (AMP) Board of Trustees and serves as the Delaware Network Coordinator for the APPA Mutual Aid Working Group.

She will assume her new role on October 16, 2021.

McCullar will remain under contract with DEMEC as a consultant to assist with the transition.

California ISO issues heat bulletin in advance of forecast high temperatures

June 14, 2021

by Paul Ciampoli
APPA News Director
June 14, 2021

The California Independent System Operator (ISO) on June 11 issued a heat bulletin in advance of high temperatures forecast for this week.

Although no outages or other power disruptions were expected, triple-digit heat is forecast to start spreading across California and the southwest Tuesday, June 15 through Friday, June 18, and the ISO could take a number of actions to reduce demand and access additional energy.

The National Weather Service on June 14 said that temperatures well into the 110s are forecast for the next few days in the Desert Southwest, and temperatures exceeding 100 as far north as Montana especially June 15 will be 25+ degrees above average. “Dozens (possibly hundreds) of daily record high maximum and minimum temperatures are likely to be set over the next few days in California, Intermountain West, Desert Southwest, Rockies, and High Plains,” the NWS said.

The ISO declared a grid Restricted Maintenance Operation (RMO) for noon to 10 p.m. from Tuesday, June 15, through Friday, June 18, due to forecasted high temperatures and demand. The RMO cautions market participants that all available resources are needed, and to defer scheduled maintenance on generators or transmission lines, if possible.

CAISO last week said it was still too early to know the precise impact that the high temperatures will have on the electric grid. But the ISO “is closely monitoring conditions and the anticipated increase in demand for electricity and will issue additional public notifications as warranted.”

Those notifications could include a series of steps aimed at reducing electricity use, such as a Flex Alert, a voluntary call for consumers to conserve electricity between 4 p.m. and 9 p.m. In extreme hot weather, those are the most difficult hours of the day to balance electricity supply and demand because solar resources are diminishing as more air conditioners and other home appliances are typically being used.

“In the past, Californians responding to calls for conservation has significantly reduced stress on the grid and avoided further emergency actions, including the need to rely on reserve power resources or rotating outages. But as happened during an intense regional heat wave last August that hit much of the Western U.S., rotating power outages could become necessary if weather and stressed grid conditions persist or worsen,” the grid operator said.

Forced outages, potential record power use lead to tight Texas grid conditions

June 14, 2021

by Paul Ciampoli
APPA News Director
June 14, 2021

The Electric Reliability Council of Texas (ERCOT) on June 14 asked state residents to reduce electric use as much as possible through June 18. A significant number of forced generation outages combined with potential record electric use for the month of June has resulted in tight grid conditions, the grid operator noted.

Generator owners have reported approximately 11,000 megawatts (MW) of generation is on forced outage for repairs, ERCOT said. Of that, approximately 8,000 MW is thermal and the rest is intermittent resources. According to ERCOT’s summer seasonal assessment of resource adequacy, a typical range of thermal generation outages on hot summer days is around 3,600 MW.

“We will be conducting a thorough analysis with generation owners to determine why so many units are out of service,” said ERCOT Vice President of Grid Planning and Operations Woody Rickerson in a statement. “This is unusual for this early in the summer season.”

According to generation owners, the number of outages should decrease throughout the week.

Wind output for June 14 was expected to be 3,500 to 6,000 MW between 3 and 9 p.m. This is roughly 1,500 MW lower than what is typically available for peak conditions. Wind output is expected to increase as the week goes on, ERCOT said.

The peak load forecast for June 14 may exceed 73,000 MW, the grid operator said, noting that the peak demand record for June is 69,123 MW set on June 27, 2018 between 4 and 5 p.m.

Report finds that California needs 1.2 million electric vehicle chargers by 2030

June 13, 2021

by Paul Ciampoli
APPA News Director
June 13, 2021

New analysis from the California Energy Commission (CEC) shows the state will need nearly 1.2 million public and shared chargers by 2030 to meet the fueling demands of the 7.5 million passenger plug-in electric vehicles (EVs) anticipated to be on California roads.

The inaugural Assembly Bill (AB) 2127 Electric Vehicle Charging Infrastructure Assessment examines charging needs to support California Gov. Gavin Newsom’s executive order requiring sales of all new passenger vehicles to be zero-emission by 2035 including battery electric and fuel-cell technologies. The initial assessment projects electric charging requirements to meet demand in 2030, while future reports will analyze 2035 needs.

In addition to the 1.2 million chargers for passenger vehicles, the CEC expects 157,000 chargers will be required by 2030 to support 180,000 medium- and heavy-duty electric trucks and buses also anticipated.

More than 73,000 public and shared chargers have been installed to date, with an additional 123,000 planned by 2025, the CEC noted. These numbers fall short of the state’s goal of 250,000 chargers by 54,000 installations. Newsom’s proposed 2021–22 budget includes $500 million to help fill the gap and ensure essential infrastructure arrives as more state residents go electric.

The report notes that the California Electric Vehicle Infrastructure Project (CALeVIP), the state’s incentive program for EV chargers, is oversubscribed by hundreds of millions of dollars, demonstrating strong market and consumer demand for public funding. Incentives for fast chargers regularly sell out minutes after applications open, according to the CEC.

The assessment also found that in 2030, electricity consumption from passenger EV charging could reach about 5,500 megawatts (MW) around midnight and 4,600 MW around 10 a.m. on a typical weekday, increasing electricity demand by up to 20–25 percent at those times.

To manage the new load and maximize EVs as an energy resource, the CEC emphasized the importance of pursuing vehicle-grid integration (VGI) technology. VGI enables drivers to program charging to make it easy to charge during hours when renewable generation is high, demand on the grid is low, and electricity is cheapest.

Other key recommendations from the report include:

The report is available here.