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Implementation Standards for NAESB Base Contract for Voluntary RECs are Approved

November 4, 2022

by Paul Ciampoli
APPA News Director
November 4, 2022

The North American Energy Standards Board’s (NAESB) Retail Markets Quadrant (RMQ) and Wholesale Electric Quadrant (WEQ) Executive Committees recently approved technical implementation standards for NAESB’s base contract for the sale and purchase of voluntary renewable energy certificates (RECs).

Elizabeth Mallett, Director, Wholesale Gas and Retail Markets Quadrants for NAESB, provided an update on the base contract and the implementation standards for Public Power Current on Nov. 3.

Mallett noted that the technical implementation standards are now posted for a thirty-day ratification period that began on October 19, 2022 and will close on November 18, 2022.  

Once ratified by the NAESB membership, the technical implementation will be available for industry use and will be included in the upcoming publications of the WEQ and RMQ Business Practice Standards, she said.

“Together, these standards, along with the NAESB REC Base Contract, which was ratified by NAESB membership in November of 2021, seek to provide additional efficiencies to the REC transacting process within the voluntary market thorough the establishment of standard terminology and terms and conditions for contract negotiations,” Mallett said.

The NAESB Base Contract for Sale and Purchase of Voluntary RECs also provides an attestation exhibit allowing parties to evidence transfer of REC ownership, including uniform descriptions of the origins and creation of a REC.

The NAESB REC contract was spurred by a recommendation from Tennessee Valley Authority that NAESB consider a REC contract for distributed ledger technology, or blockchain technology.

Background

In August 2021, the WEQ and RMQ Business Practices Subcommittees voted to unanimously approve a recommendation containing the NAESB Base Contract for Sale and Purchase of Voluntary RECs and a NAESB REC Base Contract Frequently Asked Questions (FAQ) document.  

The recommendation was developed over a total of 25 joint meetings between the RMQ Business Practices Subcommittee and the WEQ Business Practices Subcommittee. 

Per the NAESB standards development process, once the recommendation was voted out of the subcommittee it was posted for a thirty-day formal industry comment period (August 3, 2021 through September 2, 2021). 

During that time, parties were given the opportunity to comment on the document, Mallet noted.  NAESB received comments from Cheniere proposing minor edits to the NAESB Base Contract for Sale and Purchase of Voluntary RECS and the NAESB REC Base Contract FAQ for consistency and clarification. 

On September 7, 2021, the WEQ and RMQ Executive Committee held a joint meeting to discuss the Cheniere comments and developed late comments that incorporated the proposed changes into the recommendation. 

The WEQ and RMQ Executive Committees held meetings in October 2021 to review the recommendation, along with the comments received. Both the RMQ and WEQ Executive Committees approved the recommendation as modified by the Cheniere comments. 

After gaining the approval of both of the Executive Committees, the Contract and FAQ Document were ratified by NAESB membership and are now available for purchase.

On the heels of the completion of the NAESB Base Contract for Sale and Purchase of Voluntary Renewable Energy Certificates and the NAESB REC Base Contract FAQ document, the WEQ and RMQ Business Practices Subcommittee moved on to development of the technical implementation to support the NAESB REC Base Contract. 

Mallett noted that the technical implementation allows for the electronic use of the contract, including on blockchain technologies. 

After a total of 16 meetings, the joint subcommittees voted out a recommendation on July 2, 2022 that included:

The recommendation was posted for a thirty-day formal comment period that concluded on August 8, 2022. 

Comments were filed in support of the recommendation from the NAESB WEQ Standards Review Subcommittee and Cheniere, who also proposed minor edits for clarity and consistency, Mallett said.

The WEQ and RMQ BPS reviewed the comments and develop a set of late comments that incorporated the proposed edits from the Cheniere comments.

The WEQ and RMQ Executive Committees met on October 18, 2022 and October 19, 2022 and approved the recommendation. The recommendation is now posted for a thirty-day ratification period by the NAESB membership.

Once ratified, the standards will be available for industry use and included in the next NAESB publications for the Retail Markets Quadrant and Wholesale Electric Quadrant. 

NAESB members have access to the documents by way of their membership. Nonmembers that want to purchase the standards may fill out the NAESB Materials Order Form on the NAESB website.

California Grid Operator’s Board OKs Proposal to Improve Interconnection Process

November 3, 2022

by Paul Ciampoli
APPA News Director
November 3, 2022

The California Independent System Operator (ISO) Board of Governors recently adopted a proposal aimed at improving the grid operator’s interconnection process.

Over the past decade, the ISO received an average of 113 interconnection proposals per year. But last year, as the state accelerated the pace of procurement for renewable and storage resources, applications for new projects more than tripled to 373 projects.

To mitigate the potential for processing delays due to the high number of requests, the ISO began meeting with stakeholders in 2021 to find ways to streamline the interconnection process.

CAISO said the items that received Board approval within the Interconnection Process Enhancement (IPE) Phase 2 proposal help move projects forward more efficiently, enabling the ISO to better manage the queue by:

Other improvements in the IPE Phase 2 proposal that do not require Board approval include making more non-confidential information available and easier to access to help developers determine the best location to connect new capacity and enabling developers to provide more input during the interconnection planning process on required network upgrades.

Additionally, the Western Energy Imbalance Market (WEIM) Governing Body and the ISO Board of Governors at their joint meeting in October approved a proposal to recognize the Washington State-specific greenhouse gas emission reference levels in the WEIM under Washington State’s recently revised Clean Air Act.

The proposal also includes an approach for supporting certain reporting obligations under Washington’s Climate Commitment Act, which created a cap-and-invest program starting in 2023.

Littleton Electric Light and Water Departments Details Benefits Flowing from Shade Tree Program

November 3, 2022

by Paul Ciampoli
APPA News Director
November 3, 2022

Massachusetts-based public power utility Littleton Electric Light and Water Departments (LELWD) recently provided details on the benefits that flow from its free shade tree program, which the utility has offered since 2016.

Over the course of the program, 452 customers have participated and LELWD has provided 1,100 trees.

The goal of the program is to help conserve energy by planting a tree in the right spot to allow shading in the summer to reduce the need for home air conditioning, and when the leaves drop, it will allow the winter sun in to help reduce home heating needs.

Customers also enjoy the other benefits trees offer, which include wildlife habitat, consuming carbon dioxide, and visual aesthetics (or enhancing their landscape).

Based on the National Tree Benefit Calculator, provided by the Arbor Day Foundation, it is estimated that a 1-inch diameter red maple will reduce 9 pounds of carbon dioxide and intercept 19 gallons of stormwater per year.

This means that LELWD’s program in total has reduced approximately 39,825 pounds of carbon dioxide, which is the equivalent of burning 19,987 pounds of coal. It also has intercepted approximately 84,075 gallons of stormwater, helping to reduce runoff and pollutants from entering our water supply.

As the trees grow to maturity, these environmental benefits will increase significantly, the utility said. The program is also a great way to counter criticism of the cutting of trees near power lines by planting new trees away from our lines, LELWD said.

The program has planted a variety of trees, including American Red Maples, Autumn Blaze Maples, October Glory Maples, and Sycamores trees — all natives to New England.

Customers of LELWD can apply for up to 2 free trees per account during the application period, April (Arbor Day) – Labor Day. Customers are then provided with a map of their property, indicating acceptable and non-acceptable locations for their trees. The map highlights areas of energy saving potential, and the location is mutually agreed upon between the customer and LELWD.

The trees start between 5–7 feet tall and LELWD staff plants them by hand during Public Power Week.

 The program is funded under a utilities budget for energy conservation programs.

For utilities interested in learning more about the program, contact Connor Reardon, Energy and Sustainability Manager, Littleton Electric Light & Water Departments, at: creardon@lelwd.com.

NOAA Winter Outlook Sees Warmer, Drier South with Ongoing La Nina

November 3, 2022

by Paul Ciampoli
APPA News Director
November 3, 2022

This year La Niña returns for the third consecutive year, driving warmer-than-average temperatures for the Southwest and along the Gulf Coast and eastern seaboard, according to the National Oceanic and Atmospheric Administration’s (NOAA) U.S. Winter Outlook released by the Climate Prediction Center, a division of the National Weather Service.

Starting in December 2022 through February 2023, NOAA predicts drier-than-average conditions across the South with wetter-than-average conditions for areas of the Ohio Valley, Great Lakes, northern Rockies and Pacific Northwest.

NOAA forecasters, in collaboration with the National Integrated Drought Information System (NIDIS), continue to monitor extreme, ongoing drought conditions that have persisted in the Western U.S. since late 2020, as well as parts of the central U.S. where historic low-water conditions are currently present.

“Drought conditions are now present across approximately 59% of the country, but parts of the Western U.S and southern Great Plains will continue to be the hardest hit this winter,” said Jon Gottschalck, chief, Operational Prediction Branch, NOAA’s Climate Prediction Center. “With the La Niña climate pattern still in place, drought conditions may also expand to the Gulf Coast.”

map

Widespread extreme drought continues to persist across much of the West, the Great Basin, and the central-to-southern Great Plains. 

Drought is expected to impact the middle and lower Mississippi Valley this winter.

Drought development is expected to occur across the South-central and Southeastern U.S., while drought conditions are expected to improve across the Northwestern U.S. over the coming months. 

With respect to temperatures, the greatest chance for warmer-than-average conditions are in western Alaska, and the Central Great Basin and Southwest extending through the Southern Plains. 

Warmer-than-average temperatures are also favored in the Southeastern U.S. and along the Atlantic coast. Below-normal temperatures are favored from the Pacific Northwest eastward to the western Great Lakes and the Alaska Panhandle. 

With respect to precipitation, wetter-than-average conditions are most likely in western Alaska, the Pacific Northwest, northern Rockies, Great Lakes and Ohio Valley. 

The greatest chances for drier-than-average conditions are forecast in portions of California, the Southwest, the southern Rockies, southern Plains, Gulf Coast and much of the Southeast. 

The remainder of the U.S. falls into the category of equal chances for below-, near-, or above-average seasonal total precipitation.

CISA Releases Cybersecurity Performance Goals for Critical Infrastructure

November 2, 2022

by Peter Maloney
APPA News
November 2, 2022

At the end of October, the Department of Homeland Security’s (DHS) Cybersecurity and Infrastructure Security Agency (CISA) released a set of voluntary goals outlining the highest priority baseline measures businesses and critical infrastructure owners of all sizes can take to protect against cyber threats to critical infrastructure.

The Cybersecurity Performance Goals (CPGs) were developed by CISA with the DHS at the direction of a July 2021 memorandum on cybersecurity from the White House. DHS, in collaboration with sector risk management agencies, will next begin a process of writing sector specific voluntary goals utilizing the CPGs while they continue to promote these new cross sector cyber gaols.

Legislation passed in November 2018 created CISA within the Department of Homeland Security (DHS) to take the lead in cyber and physical infrastructure security. This did not change the Fixing America’s Surface Transportation Act (FAST Act) – signed into law in December 2015 – designation that the Department of Energy (DOE) specifically as the energy sectors sector risk management lead for cybersecurity. 

Over the past year, CISA developed the CPGs in partnership with organizations across government – including DOE – and the private sector through a process that incorporated feedback from hundreds of public and private sector partners and analyzed years of data to identify key challenges that put the nation at risk.  APPA appreciated the opportunity to participate in this process as well as to submit feedback much of which was incorporate in the final version.

The CPGs are designed to address concerns CISA heard from “organizations across the spectrum, from the largest multinational corporations to state and local governments, to critical infrastructure entities of all sizes: How can we focus investment toward to the most impactful security outcomes?” Jen Easterly, CISA’s director, said in the introduction to the CPG report.

The CPGs are intended to be implemented in concert with the National Institute of Standards and Technology (NIST) Cybersecurity Framework. It became clear, however, that even with comprehensive guidance from NIST, many organizations would benefit from help identifying and prioritizing the most important cybersecurity practices along with support in making a compelling argument to ensure adequate resources for driving down risk, Easterly said.

The newly delineated CPGs serve as “a kind of QuickStart guide” by prioritizing a “subset of Information Technology (IT) and operational technology (OT) cybersecurity practices that critical infrastructure owners and operators can implement to meaningfully reduce the likelihood and impact of known risks and adversary techniques,” CISA said. The goals were “informed by existing cybersecurity frameworks and guidance, as well as the real-world threats and adversary tactics, techniques, and procedures observed by CISA and its government and industry partners,” the agency said.

Accompanying the goals is a CPG Checklist which can be a very handy starting point for smaller entities looking for a simple way to start working on the CPGs goals and utilizing the CPGs as a reference as needed for the checklist.

CISA stressed that the CPGs are a “baseline set of cybersecurity practices broadly applicable across critical infrastructure” and that they are voluntary and not comprehensive in that they “do not identify all the cybersecurity practices needed to protect national and economic security and public health and safety.” The CPGs “capture a core set of cybersecurity practices with known risk-reduction value broadly applicable across sectors,” the agency said.

The goals are grouped eight topics: account security, device security, data security, governance and training, vulnerability management, supply chain/third party, response and recovery, and other.

Department of Health and Human Services Announces $4.5 Billion Available Through LIHEAP

November 2, 2022

by Paul Ciampoli
APPA News Director
November 2, 2022

The U.S. Department of Health and Human Services on Nov. 2 announced $4.5 billion of assistance is now available through the Low Income Home Energy Assistance Program (LIHEAP).

The funds will go to states, territories, and tribes. In addition to subsidizing home heating costs this winter and covering unpaid utility bills, the federal program will help families make cost-effective home energy repairs to lower their heating and cooling bills.

The funds are a combination of regular appropriations by Congress, $100 million from President Biden’s Bipartisan Infrastructure Law, and additional emergency funding Congress included in the September continuing resolution following the Biden-Harris Administration’s request for these funds.

Click here for additional details.

 This past year, LIHEAP served over 5.3 million households with heating, cooling, and weatherization services. This support was particularly important during the winter and summer months, as millions of Americans dealt with extreme weather and natural disasters.

The American Public Power Association strongly supports LIHEAP.

ElectriCities of North Carolina Workers Assist in Bucket Rescue

November 2, 2022

by Paul Ciampoli
APPA News Director
November 2, 2022

ElectriCities of North Carolina’s Brandon Guin, a crew leader, and David Carlos, an apprentice lineworker, recently helped to rescue a tree contractor who was stranded after his bucket truck became disabled while he was working at an elevated position.

ElectriCities is a not-for-profit membership organization of municipally-owned electric utilities that are spread across North Carolina, South Carolina, and Virginia.

On Oct. 21, 2022, a tree contractor employee in Pineville, N.C., was working at an elevated position in a bucket truck behind an apartment building when his truck became disabled leaving him stranded 45 feet in the air.

North Carolina’s Charlotte and Pineville Fire departments responded to the distress call and attempted to rescue the stranded man with their ladder trucks but were unable to reach him. Firemen on the scene called Duke Energy and requested their assistance with a bucket truck and were told that it would be 1 ½ to 2 hours for a truck to arrive.

Pineville Fire Chief Mike Gerin then called ElectriCities in Pineville requesting the assistance of their employees to bring a bucket truck to reach the victim. ElectriCities is the managing agent for the Town of Pineville’s electric system.

Guin and Carlos jumped in their 60-foot, two-man bucket truck and responded to the scene. After assessing the situation, they were able to position their truck close enough to reach and rescue the victim within 30 minutes of receiving the call.

rescue

“Lending a helping hand – wherever it’s needed – is at the heart of public power,” said Roy Jones, ElectriCities of North Carolina CEO. “Public power lineworkers put service above self every single day and I’m proud of the lineworkers in Pineville for doing just that. Many thanks to these and all public power employees for their unwavering commitment to their communities. It’s what makes us public power.”

“We were honored to be able to assist in the rescue of this person who was stranded at an elevated position,” said ElectriCities Electric Systems Manager David Lucore. “The ability to respond quickly reinforces the value of public power in Pineville and many other cities and towns across North Carolina and the United States. Having local workers ready to respond to emergencies like this are an added value to the communities we serve,” he added.

SB Energy Inks 942-MW PPA with Google to Power Data Center

November 2, 2022

by Paul Ciampoli
APPA News Director
November 2, 2022

Google has agreed to purchase approximately seventy-five percent of the renewable energy produced by four solar projects under development in Texas under an agreement announced on Nov. 1 with SB Energy. The power purchase agreement totals 942 megawatts.

The Orion 1-3 and Eiffel solar projects, which are expected to be operational by mid-2024, will total 1.2 gigawatts (GW) of capacity.

The capacity will support the energy needs of Google’s data center in Midlothian, Texas and cloud region in Dallas. The agreement is Google’s largest combined clean energy transaction in Texas to date.

SB Energy currently owns and operates 1.7 GW of solar capacity and will have started construction on an additional 1.3 GW by early next year.

Group Submits Signatures For Maine Voters to Consider Public Power Utility in 2023

November 1, 2022

by Paul Ciampoli
APPA News Director
November 1, 2022

A group in Maine on Oct. 31 submitted more than 80,000 signatures from voters in 422 Maine towns, which will allow for voters in the state next year to consider replacing investor-owned utilities in Maine with a statewide, consumer-owned utility.

Collected in just under a year, the signatures exceeded the 63,067 required to qualify for the general election ballot in November 2023.

The group, Our Power, said that if enough signatures are certified by the Maine Secretary of State, Maine voters will likely have the chance to vote on the question next year, unless the measure is passed outright by the next Maine Legislature and Governor.

If approved by voters, the initiative would replace Central Maine Power and Versant with the Pine Tree Power Company, a privately-operated, nonprofit, consumer-owned utility.

The initiative does not allow for state ownership or for the use of tax dollars, and the new company would not serve the parts of Maine (97 towns) already served by existing nonprofit utilities.

In Roundtable with Treasury Secretary Yellen, APPA’s Ditto Asks to Keep IRA Guidance Simple and Certain

October 31, 2022

by Paul Ciampoli
APPA News Director
October 31, 2022

Guidance implementing the energy tax provisions of the Inflation Reduction Act (IRA) should be simple and certain, American Public Power Association (APPA) President and CEO Joy Ditto told Treasury Secretary Janet Yellen and White House Senior Advisor John Podesta.

Ditto’s remarks came as she, other key stakeholders, and Biden Administration officials participated in an Oct. 26 roundtable on clean power generation and the IRA.

In a Statement for the Record for the event, Ditto said APPA has worked for years with other stakeholders to make federal energy investment incentives available to all market participants, and strongly supported the direct pay tax credit provisions in the IRA.

“Now, we look forward to working with the Administration and Congress to ensure that IRA reaches its full potential in implementation,” she said in the Statement for the Record.

Access to energy tax credits “will provide local jobs, under local control, to serve local communities. It also means that all electric power utilities, not just those serving 70 percent of retail customers, can participate in the clean energy transition. Enactment of the IRA was the first step toward realizing that dream. But now comes the hard part, implementing the law in a way that follows the letter of the law while meeting its policy goals,” wrote Ditto.

When it comes to IRA-related guidance, Ditto said that simplicity is critical in ensuring that transactions “are not so beleaguered with paperwork and the need for bespoke legal guidance as to become uneconomic.”

By way of example, she noted that one of APPA’s members that serves roughly 10,000 homes and businesses was quoted a $1,300 per hour rate for an attorney with tax and energy project expertise. “Our members will also have to retain counsel to navigate domestic content rules or forgo receiving direct payments altogether. They may also need and want to secure access to increased and bonus credits for meeting labor requirements or serving low income and/or energy communities.” 

 APPA understands that Congress had specific policy goals in mind “when it drafted each of these provisions. However, it will do no good if a project never gets off the ground,” Ditto said.

“This is particularly important in the context of domestic content rules. While meeting these requirements provides a 10 percent bonus for others, for public power utilities, rural electric cooperatives, and other tax-exempt entities, it is an existential test of whether they qualify for direct payment.”

Similarly, more than two-thirds of public power utilities have been in operation since World War II, and more than half have been in operation for a century or longer. “It is in our genetics to provide reliable and affordable power to our customers. We do not serve the community; we are the community. As a result, our members will not undertake these transactions without certainty as to the amount and timing of any tax credits that might accrue,” Ditto said. 

 With the goals of simplicity and certainty in mind, APPA is seeking clarity in the following areas:

APPA also intends to submit formal comments with the Treasury Department on the implementation of the IRA this week. These comments come in response to an October 5, 2022, notice requesting comments on six areas of IRA implantation including: energy generation incentives; elective payment of energy tax credits; and labor and domestic content requirements for those credits. Treasury is expected issue further notices for additional comments throughout the remainder of the year.