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Poll finds strong support for the creation of a consumer-owned utility in Maine

May 31, 2021

by Paul Ciampoli
APPA News Director
May 31, 2021

Newly conducted public opinion polling shows that 75% of registered voters from across the state of Maine say they support the idea of replacing Central Maine Power and Versant with a local non-profit consumer-owned utility, according to research conducted by SurveyUSA.

According to SurveyUSA, 38% strongly support the idea; 37% say they somewhat support. Just 10% are opposed to the idea, while 7% somewhat oppose and 3% strongly oppose.

The research was conducted by SurveyUSA for a group call Our Power, which supports the creation of a consumer-owned utility in the state.

Support is strongest among 35-to-49-year-olds (85%). Support is higher in urban parts of Maine (81%) than in suburban (72%) or rural (62%) portions of the state. Even among those rural Maine residents with 62% support, the lowest support for the idea among any subgroup, 28% strongly support and 34% somewhat support the idea of creating a consumer-owned utility.

According to the poll, 82% of Versant customers and 74% of Central Maine Power customers say they support the idea.

“Opposition to the concept, while weak in general, does have a significant correlation with both age and with ideology,” SurveyUSA said. While just 4% of those under age 50 are opposed, 14% of those 50+ are opposed, and opposition among conservatives, at 16%, is notably higher than among moderates (6%) or liberals (5%).

SurveyUSA said that a few of the major reasons Maine residents may be so strongly supportive of the consumer-owned utility concept are:

Ursula Schryver, Vice President, Strategic Member Engagement and Education, at the American Public Power Association (APPA) recently appeared before a hearing held by Maine state lawmakers related to the bill.

She noted that there has been an increase in the number of communities exploring the public power option, a trend that has been driven by a number of factors including reliability, the desire for renewable energy options and increased economic development. Schryver, who made her comments at a May 20 hearing held by the Maine Legislature’s Energy, Utilities, and Technology Committee, also detailed the resources that APPA offers when it comes to municipalization.

The Maine committee hearing focused on a bill, LD 1708, which would create a consumer owned utility that would take over the electric service now provided by Central Maine Power and Versant Power. Central Maine Power Company and Versant Power (formerly known as Emera Maine), are majority owned by Iberdrola of Spain and Emera of Canada, respectively.

At the hearing, Schryver noted that her comments were neither for or against the legislation “primarily because APPA doesn’t weigh in on decisions made by individual communities.” APPA, she noted, serves as a resource and APPA believes that every community needs to make a decision that is right for itself.

Bill allows public power to receive refundable direct payment for energy tax credits

May 27, 2021

by Paul Ciampoli
APPA News Director
May 27, 2021

The Clean Energy for America Act (CEA), which includes a provision to allow public power to receive refundable direct payment for energy tax credits, is headed to the Senate floor after debate and amendment on May 26 by the Senate Finance Committee.

As amended, the CEA provides $260 billion in tax relief over the next decade and would replace the current investment tax credit (ITC) and production tax credit (PTC) with technology neutral ITCs and PTCs. As part of these revisions, the bill would allow merchant power generators, investor-owned utilities, public power utilities, rural electric cooperatives and Indian tribal governments to receive refundable direct payments of the ITC and PTC. The Joint Committee on Taxation estimates that roughly $50 billion of such payments would be made over the next decade.

The original bill would have denied access to refundable tax credits to public power utilities, rural electric cooperatives, and Indian tribal governments.

However, the American Public Power Association, the Large Public Power Council (LPPC), and National Rural Electric Cooperative Association (NRECA) joined in advocating for their inclusion. As a result, committee member Sen. Michael Bennet, D-Colo., offered a direct pay amendment that was eventually adopted as part of a broader package of amendments to the original version of the bill.

“We should make these tax incentives accessible to electric coops, public power companies, and tribes,” Bennet said during markup of the bill. “They are doing yeoman’s work to transition to clean energy and drive opportunity in rural America and we should support them.”

In a May 26 letter to Bennet, Joy Ditto, President and CEO of APPA, Jim Matheson, CEO of NRECA, and John Di Stasio, President of the LPPC, praised his amendment.

As drafted, the CEA “allowed some utilities to immediately receive the benefit of certain energy tax credits. With the inclusion of your amendment, it now also would allow public power utilities, rural electric cooperatives, and Indian tribal governments to do so. That would mean more local projects, with local jobs, under local control. Having direct ownership as an option also will help our members develop a generation mix that best suits the needs of the customers,” wrote Ditto, Matheson and Di Stasio.

Inclusion of refundable direct payment tax credits in the CEA means that leading proposals in the House (H.R. 848, the GREEN Act) and Senate are now in agreement on the issue. If enacted into final law, this would be the first time in the history of energy-related tax credits that public power utilities would truly have equal access to such credits.

Bennet’s amendment retains current law prohibitions on receiving tax credits for projects receiving “subsidized” financing, including tax-exempt financing. While final legislative text is not available, it appears the intention is to preclude the use of tax-exempt financing for a project that also receives energy-related refundable tax credits. But analysis done by APPA and others shows that the value of the investment tax credit and production tax credit substantially exceeds the cost of losing the ability to issue tax-exempt debt to finance such projects.

In addition, “Chairman’s Modifications” to the CEA from Sen. Ron Wyden, D-Ore., Chairman of the Senate Finance Committee, struck a provision that would have allowed public power utilities and rural electric cooperatives to issue taxable direct payment Clean Energy Bonds (CEBs). While such bonds could have been highly valuable for long-lived assets, many of the assets that utilities will invest in in the near term – including battery storage and wind turbines – have shorter useful lives.

North Iowa Municipal Electric Cooperative Association to offtake power from wind farm

May 27, 2021

by Paul Ciampoli
APPA News Director
May 27, 2021

North Iowa Municipal Electric Cooperative Association (NIMECA)power supplier to 13 public power utilities in northern Iowa, will offtake power from a wind farm in South Dakota that has been operational since September 2020.

The wind farm is Willow Creek Wind, a 103-megawatt project located in Butte County, South Dakota, and joins several other wind farms in NIMECA’s power supply portfolio.

The Hancock County Wind Project is owned by NextEra Energy Resources and is located near Britt, Iowa. The project has 148 Vestas turbines with a capacity of 97.7 MW. NIMECA purchases 3.96 MW of the output of this project. NIMECA has a purchase power agreement to purchase energy from the Hancock County Wind Project.

Crosswinds Energy Project was one of Iowa’s first locally owned wind farms. The project consists of 10 farmer-owners pooling their investments for a 10-turbine wind farm totaling 21 MW. NIMECA purchases 4.4 MW from the project. NIMECA has a purchase power agreement to purchase energy from the Crosswinds Energy Project.

NIMECA is a municipal joint action agency serving 13 municipal electric utilities located in Iowa.

TVA unveils solar facility partnership with Facebook, RWE Renewables

May 27, 2021

by Paul Ciampoli
APPA News Director
May 27, 2021

The Tennessee Valley Authority recently announced a Green Invest partnership with Facebook and RWE Renewables that will result in the construction of a 150-megawatt (MW) solar facility. Facebook will use 110-MW of the solar energy to support their data center operations in Gallatin, Tenn., and the broader Tennessee Valley.  

Through its Green Invest program, TVA matches demand for green power from large business and industrial customers with renewable projects that TVA puts together with its development partners. The utility says the program confers to commercial customers the benefits of TVA’s scale and negotiating expertise in building power projects.  Since 2018, TVA’s Green Invest program has attracted nearly $2.7 billion in solar investment and procured over 2,100 megawatts of solar on behalf of its customers.

TVA is partnering with RWE to develop the $140 million solar farm. RWE, through a long-term power purchase agreement with TVA, will own and operate the plant, which will be located near Millington, Tenn.

In April, Facebook announced that its operations are now supported by 100% renewable energy. To support that goal, in the last year, Facebook has signed Green Invest agreements for 475 MW of new solar to be built in Tennessee, Mississippi, and Kentucky.

Since 2018, Facebook has agreed to purchase a total of 852 megawatts of power generated by multiple solar farms linked into the TVA electric grid.  

Since October, TVA has increased its contracted solar capacity by 60%.   

Jeff Lyash, President and CEO of TVA, discussed the Green Invest program in a recent episode of the American Public Power Association’s Public Power Now podcast.

NERC summer assessment warns of potential energy shortfalls

May 26, 2021

by Paul Ciampoli
APPA News Director
May 26, 2021

Parts of North America are at elevated or high risk of energy shortfalls this summer during above-normal peak temperatures, the North American Electric Reliability Corporation (NERC) warns in its 2021 summer reliability assessment, which it released on May 26,

While NERC’s risk scenario analysis shows adequate resources and energy for most of North America, Texas, New England, the Midcontinent Independent System Operator and parts of the West are at an elevated risk of energy emergencies, NERC said.

In the high risk category is California, which relies on large energy imports during peak demand scenarios and when solar resource output retreats in the evening hours. While more than 3 gigawatts of additional resources are expected in California this summer compared to 2020, most will be solar photovoltaic (PV) generation, NERC said.

While these plants can provide energy to support peak demand, solar PV output falls off rapidly in late afternoon while high demand often remains, NERC noted. “Reliance on imports during these periods is an increasing reliability risk,” NERC said.

While actions taken by the California Public Utilities Commission, California Independent System Operator and utilities to procure additional resources will help, the Western Interconnection’s increase in demand and decline in resources may reduce the amount of surplus capacity available when California is in shortfall, according to NERC.

As identified in the assessment, abnormal conditions that lead to elevated risk include prolonged above-average temperatures, low wind and solar scenarios, reduced transfers due to wildfire-related transmission outages.

The assessment’s other key findings include:

To download the summer reliability assessment, click here.

Grant County PUD signs MOU on possible small modular reactor deployment

May 26, 2021

by Paul Ciampoli
APPA News Director
May 26, 2021

NuScale Power and Washington State’s Grant County Public Utility District on May 26 announced the signing of a memorandum of understanding (MOU) to evaluate the deployment of NuScale’s small modular reactor (SMR) technology in Central Washington State.

Under the MOU, the two parties will work together to support Grant PUD’s due diligence process in evaluating reliable, carbon-free energy solutions. “The deployment of NuScale’s Nuclear Regulatory Commission (NRC)-approved design will support meeting the demands of Grant PUD’s customers and the desired commercial operation timeline with acceptable and affordable cost certainty,” NuScale and Grant PUD said in a news release.

NuScale’s power plant design is scalable in 77 megawatts electric (MWe) increments up to 924 MWe. Modules can be added incrementally as regional load demands increase.

“This flexibility also allows for seamless integration with intermittent sources of power utilizing exceptional load following capabilities. These qualities align well with Grant PUD’s long-term objective of providing its customers with reliable, carbon-free energy and are a driving force in the initiation of the due diligence process in order to investigate the applicability of the NuScale technology in Central Washington,” NuScale and Grant PUD said.

In April, Grant PUD with Energy Northwest and X-energy signed a MOU for the development of an advanced nuclear reactor demonstration project.

The partners agreed to collaborate and share resources to evaluate the goal of siting, building, and operating an X-energy Xe-100 SMR plant at an existing Energy Northwest site north of Richland, Wash. The plant would have four 80-MW units and is scheduled to begin construction in 2024 and come online in 2027.

“It’s too early to tell how this will ultimately come to fruition,” said Chuck Allen, Grant PUD public affairs supervisor.

“At this time, we’re pursuing both opportunities with the intention of having small modular reactor nuclear power as a generation resource for our customers and we’re excited to work with our partners in pursuit of that goal,” he said.

Based in Ephrata, Washington, Grant PUD is a public electric utility with the capacity to generate more than 2,100 megawatts of renewable, carbon-free energy for the Northwest at its hydropower plants. The utility also serves 40,000 retail customers in Grant County, which includes an expanding industrial sector. Grant PUD is a forward-thinking leader in managing and securing affordable, reliable, clean energy for its customers.

UAMPS, TVA

In January, Utah Associated Municipal Power Systems (UAMPS) and NuScale Power signed agreements to facilitate the development of the Carbon Free Power Project that would deploy NuScale’s SMR design at the Idaho National Laboratory. Energy Northwest has the option to operate the SMR plant.

Meanwhile, in April 2020 it was disclosed that the University of Tennessee and the Tennessee Valley Authority had signed a memorandum of understanding to evaluate the development of a new generation of cost-effective, advanced nuclear reactors, such as small modular reactors, at TVA’s 935-acre Clinch River Nuclear Site in Roane County.

TVA signed a similar agreement with Oak Ridge National Laboratory in February 2020 to explore advanced reactor designs as a next-generation nuclear technology with potential for improved safety and increased flexibility.

TVA and Kairos Power recently announced plans to collaborate on deploying a low-power demonstration reactor at the East Tennessee Technology Park in Oak Ridge, Tenn.

Jeff Lyash, President and CEO of TVA, discussed the Kairos Power news in a recent episode of the American Public Power Association’s Public Power Now podcast.

Biden administration, California identify areas with potential for 4.6 GW of wind power

May 26, 2021

by Peter Maloney
APPA News
May 26, 2021

The Biden administration, in conjunction with California Gov. Gavin Newsom, on Tuesday announced an agreement identifying regions off the California coast that could support of the administration’s goal of deploying 30 gigawatts (GW) of offshore wind energy by 2030.

The Department of the Interior with the Department of Defense and the state of California identified the Morro Bay 399 Area, which they said could support 3 GW of offshore wind on roughly 399 square miles off California’s central coast. The Department of the Interior is also advancing the Humboldt Call Area off the state’s northern coast as a potential Wind Energy Area. Together, the two areas could support as much as 4.6 GW of wind energy, according to government estimates.

“The offshore wind industry has the potential to create tens of thousands of good-paying union jobs across the nation, while combating the negative effects of climate change,” Deb Haaland, Secretary of the Interior, said in a statement.

In late March, the departments of Interior, Energy, and Commerce, a White House forum, announced the administration’s goal of having 30 GW of wind energy in place by 2030.

At the same meeting, the administration announced the final Wind Energy Areas in waters off the New York and New Jersey coasts known as the New York Bight.

The Biden administration estimates the 30-GW target will trigger more than $12 billion per year in capital investment and create jobs for more than 44,000 in offshore wind by 2030 and nearly 33,000 additional jobs in communities supported by offshore wind activity.

At the same time, the Department of Energy (DOE) made available details of its $3 billion in capital to support offshore wind project through its Loan Programs office. And, in partnership with the New York State Energy Research and Development Authority (NYSERDA), the DOE announced the award of $8 million to 15 offshore wind research and development projects.

The Interior Department’s Bureau of Ocean Energy Management (BOEM) plans to hold an Intergovernmental Renewable Energy Task Force meeting on June 24 to discuss the identified areas off the north and central California coasts as potential Wind Energy Areas (WEA).

Following the task force meeting, the WEAs can be finalized and will undergo environmental analysis, and the BOEM will undertake government-to-government tribal consultation. The processes for the northern and central coasts will then be merged in a Proposed Sale Notice for one lease sale auction, targeted for mid-2022.

On the East Coast, the BOEM plans to publish a Proposed Sale Notice followed by a formal public comment period and a lease sale in late 2021 or early 2022.

In selecting the Wind Energy Areas on the West Coast, the Department of the Interior collaborated with the Department of Defense to find offshore areas compatible with the Department of Defense’s ongoing military testing, training and operations.

In March, the Department of the Interior also began the environmental review of Ocean Wind LLC’s 1,100-megawatt wind project off New Jersey coast, marking the third review it has begun.

Interior has already begun environmental reviews for the Vineyard Wind offshore project in Massachusetts and South Fork offshore wind project in Rhode Island. The department expects to begin environmental reviews for up to 10 more projects later this year.

DEED board commits $637,707 to support public power research and students this spring

May 25, 2021

by Paul Ciampoli
APPA News Director
May 25, 2021

Grants and scholarships totaling $637,707 have been committed by the board of the American Public Power Association’s (APPA) Demonstration of Energy & Efficiency Developments program to support students, research in solar, electric vehicles, battery storage, hydrogen generation, and low-income residential energy efficiency, among other topics.

Seventy two percent of DEED grant applications were approved for funding. More specifically, eight of the eleven submitted applications were approved and amounted to funding of $572,707.

Additionally, 16 students interested in energy careers will be supported by $65,000 for ten internships (10 x $5,000), one student research grant (1 x $5,000), and five lineworker and technical education scholarships (5 x $2,000).

Details on the eight grant projects and 16 scholarships are as follows:

Grants

Additional details on projects tied to grants

Solar plus Storage Operations Support Trailer, Alabama Municipal Electric Authority

The Solar plus Storage Operations Support Trailer will be used by AMEA to offer support to AMEA members during outages due to storms, construction projects, and as an educational tool for solar and battery backup information.

Property Energy Plan: A public utility tool to reduce energy use and costs in the residential sector, Burlington Electric Department 

With this funding, customized property energy plans and portfolio assessments will be developed and implemented for 25 residential properties, with a focus on larger multi-unit buildings emphasizing affordability and equity. The residential sector is responsible for 25% of BED’s annual kilowatt hour sales and provides an opportunity for building electrification to advance BED’s Net Zero Energy vision.

Public Power’s Role in Attainable Housing, City of Westerville Electric Division

The City of Westerville will conduct an extensive data analysis to understand Westerville customers’ residential energy burden. With a greater understanding of residential consumption at the meter- and customer-level combined with other publicly accessible data, the utility hopes to implement incentive and efficiency programs for customers with a high energy burden, to support the community’s goal of attainable housing. The new programs would ultimately decrease residential utility bills, the city’s environmental impact, and the utility’s peak load while improving customer equity and engagement.

Panel Level Energy Storage Demonstration Project, CPS Energy

This project looks at maximizing the benefit of locally generated solar power by utilizing a behind the panel designed battery energy storage system. The project will focus on solar, shifting the benefit of the grid, utilization of demand-response, and cyber security evaluation. The outcome can provide utilities with a companion system to distributed solar installations.

Producing renewable hydrogen from hydropower, Douglas County PUD

Douglas PUD will produce renewable hydrogen from its Wells Hydroelectric Project. Using anelectrolyzer, water particles will be split and the resulting hydrogen will be captured and stored. This hydrogen can then be sold as a transportation fuel, agricultural fertilizer additive or used in industrial processes. This pilot project will demonstrate the ability to create power sales moderation and maintenance and reserve capacity efficiencies.

Self-Service Ride & Drive and Rural EV Sharing, Northern Wasco County People’s Utility District

Electric vehicles have been gaining market share in large urban areas but their popularity in smaller towns and rural areas remains limited, primarily due to rural residents’ lack of access to EVs. Forth’s new Self-Service Ride & Drive and Rural EV Sharing program offers great promise as an accessible, cost-effective, user-friendly way to overcome barriers to EV adoption in rural towns. Users simply download a car-sharing app, create an account, and then unlock the EV with their smartphone or a radio-frequency identification card. The same vehicles can also be made available to low-income housing residents as a low-cost car-sharing service, thereby expanding users’ mobility and supporting utilities’ transportation equity initiatives.

Research to Support Income-Qualified Customer Segment, WPPI Energy

Research consistently shows a gap between how trustworthy income-qualified customers and average residential customers view their local utility. This marketing research project will both review secondary research and conduct primary research with an aim to dramatically increase customers’ trust in their utility and participation in energy assistance programs. There will be an identification of customer barriers and equity limitations when applying for energy assistance funding and a determination of the best messaging to overcome those barriers. There will also be an exploration of how a local utility can best support its customers when applying for energy assistance programs.

Cost-Benefit Analysis of Undergrounding Electric Cabling Through Co-Deployment With Optical Fiber, Massachusetts Municipal Wholesale Electric Co.

The UMass Energy Transition Institute in partnership with Groundwork Data and the Massachusetts Municipal Wholesale Electric Company are developing a statistical model to help municipal utilities around the country better understand the costs and benefits associated with jointly undergrounding electric and broadband infrastructure. The research takes into account the latest construction methodologies, mapping tools, and data analysis techniques to calculate costs of construction, and it integrates a wide range of benefits including increased broadband access, smart grid technologies, and enhanced resiliency. The completed research will inform long-term capital planning and strategic decision-making for municipal utilities across the country

Scholarships

Internships

Student Research Grant

Lineworker and Technical Education Scholarships

For additional information about APPA’s DEED program, click here.

FEMA to provide $1 billion to help in preparations for extreme weather events, other disasters

May 25, 2021

by Paul Ciampoli
APPA News Director
May 25, 2021

The Biden Administration on May 24 announced that it will direct $1 billion for communities, states, and Tribal governments into pre-disaster mitigation resources to prepare for extreme weather events and other disasters.

In 2020, the U.S. experienced a record year for extreme weather, including an unprecedented 30 named storms in the Atlantic Basin and the National Oceanic and Atmospheric Administration (NOAA) is anticipating another above-normal hurricane season this year, a White House fact sheet noted.

NOAA’s Climate Prediction Center is forecasting a 60% chance of an above-normal season, a 30% chance of a near-normal season, and a 10% chance of a below-normal season. However, experts do not anticipate the historic level of storm activity seen in 2020, NOAA said on May 20.

The Federal Emergency Management Agency (FEMA) will provide $1 billion in 2021 for the Building Resilient Infrastructure and Communities (BRIC) program, a portion of which will be targeted to disadvantaged communities.

BRIC supports states, local communities, tribes, and territories in undertaking pre-disaster hazard mitigation projects, reducing the risks they face from disasters and natural hazards. This level of funding level is double the amount provided last year.

The American Public Power Association (APPA) offers a wide range of resources to its members related to hurricane and storms. Those resources include an All-Hazards Guidebook and a Restoration Best Practices Guidebook. APPA members can access disaster planning and response resources — including the public power Mutual Aid Network.

To join the Mutual Aid Network, complete the Mutual Aid Agreement and email it to APPA at MutualAid@PublicPower.org.

Snohomish County PUD pilots to incentivize flexible energy usage

May 25, 2021

by Paul Ciampoli
APPA News Director
May 25, 2021

Washington State’s Snohomish County PUD has launched pilot programs that will incentivize customers to change their behavior or employ innovative technology and save energy when demand on the electrical grid is at its greatest, the PUD said on May 24.

The PUD plans to use the pilots to study the effects of shifting energy usage so the utility can keep rates low and meet clean energy goals.

The PUD’s FlexEnergy pilots are voluntary and open to all PUD customers who meet eligibility requirements. By enrolling, customers will earn bill credits and have the opportunity to save money on their bill.

Customers who have a Google Nest or ecobee smart thermostat or ChargePoint or EnelX (JuiceBox) connected electric vehicle charger are eligible to enroll those devices in SnoPUD’s FlexEnergy pilot program. Customers who enroll their eligible smart technology will receive alerts on those devices for specific pilot events.

PUD customers who don’t have eligible smart technology can enroll in SnoPUD’s FlexEnergy Customer Choice pilot, which will incentivize customers to change their energy usage habits through behavioral changes like doing laundry at night or turning the heat down a few degrees at select times and days, the PUD said in a news release.

Based on the type of smart device they enroll, customers will be able to participate in one of three FlexEnergy pilots: FlexTime, FlexResponse or FlexPeak.

The three pilots will focus on three approaches to shifting energy use: time-dynamic rate designs (FlexTime), and event-driven demand response (FlexResponse) and critical peak pricing (FlexPeak).

Customers who enroll in the Customer Choice program can choose to take part in the FlexTime or FlexPeak pilot.

The PUD has partnered with Virtual Peaker, a cloud-based energy management platform, to deploy its FlexEnergy pilots. Virtual Peaker’s Distributed Energy Resources Management System will be used to enable customer and communicating device enrollment, event scheduling and management, and pilot analytics.