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Puerto Rico Power Restoration Efforts Advance

September 21, 2022

by Paul Ciampoli
APPA News Director
September 21, 2022

Nearly 300,000 customers in Puerto Rico have had their power restored in the wake of Hurricane Fiona as of the afternoon of Sept. 20, with continuing efforts to reenergize the grid and restore power as quickly and safely as possible, LUMA Energy reported.

Damage assessment, restoration and reenergization efforts by LUMA and its partners continued across Puerto Rico following the severe impacts of Hurricane Fiona.

LUMA said it has fully deployed a field response crew of over 2,000 utility field workers who are working in difficult conditions to repair the grid and restore power across Puerto Rico as quickly and safely as possible, including additional utility field workers provided by Quanta.

All emergency response efforts are being coordinated through the LUMA Emergency Operations Center (LEOC) and includes close consultation with the Government of Puerto Rico, Municipalities, Federal Emergency Management Agency (FEMA), Puerto Rico Emergency Management Bureau (PREMB), Puerto Rico Electric Power Authority (PREPA), the U.S. Department of Energy Support Function #12 and other government agencies to coordinate a unified response.

Among the LUMA crews mobilized and responding to the impact of Hurricane Fiona include:

The Department of Energy (DOE) reported that as of 1:00 PM EDT Sept. 20, Puerto Rico had approximately 1.18 million outages (80% of customers).

On the afternoon of September 18, Puerto Rico experienced an island-wide power outage due to impacts to distribution and transmission damage from Hurricane Fiona, which caused a system imbalance that tripped generation units offline.

Following the island-wide outage, PREPA, in coordination with the transmission and distribution operator LUMA, began procedures to restart generation and restore customers.

Salt River Project Commits to Supporting Next Phase of SPP Markets Development

September 21, 2022

by Paul Ciampoli
APPA News Director
September 21, 2022

Public power utility Salt River Project (SRP) is one of several Arizona entities that have committed to supporting the next phase of the Southwest Power Pool’s (SPP) “Markets+” development, SPP said recently.

SRP, along with Arizona Electric Power Cooperative, Arizona Public Service Company and Tucson Electric Power join seven other entities who previously committed to supporting market development.

In a late August 2022 letter, the four Arizona entities declared their intent to work with SPP to build a market that includes “both a workable governance framework and a robust market design. This will be an important milestone that will enable us to collectively move forward to the next phase.”

These entities combined serve over 20,000 MW of peak demand in the desert southwest.  With this announcement, SPP has now received interest in supporting the next phase of Markets+ development from entities that serve over 50,000 MW of combined peak demand.

Since December 2021, SPP has been working with western stakeholders to learn what they would like out of a proposed day-ahead and real-time market. Based on its potential customers’ input, SPP will develop the Markets+ draft service offering, which will explain how Markets+ will address things like governance structure, market design and transmission availability.

Last month, eight entities in the Pacific Northwest announced their intent to commit to phase one of Markets+ development: Bonneville Power Administration, Avista Corp., Chelan County Public Utility District, Grant County Public Utility District, Powerex Corp., Puget Sound Energy and Tacoma Power.

SPP said that Markets+ is a conceptual bundle of services proposed by SPP that would centralize day-ahead and real-time unit commitment and dispatch, provide hurdle-free transmission service across its footprint and pave the way for the reliable integration of a rapidly growing fleet of renewable generation.

For utilities that see value in these services but who aren’t ready to pursue full membership in a regional transmission organization (RTO) at this time, Markets+ provides a voluntary, incremental opportunity to realize significant benefits.

SPP staff met with western stakeholders Aug. 9-10 in Portland, Oregon to review work done on the service offering and discuss outstanding items and next steps.

The draft service offering will be distributed Sept. 30, followed by a public comment period, with the final service offering distributed Nov. 18.

California’s SMUD Enters Agreement to Deploy Long Duration Energy Storage

September 21, 2022

by Paul Ciampoli
APPA News Director
September 21, 2022

California public power utility SMUD and ESS Inc. on Sept. 20 announced an agreement to provide up to 200 megawatts (MW)/2 gigawatt-hours (GWh) of long duration energy storage (LDES) that will be provided by ESS.

The agreement calls for ESS to deliver a mix of its long-duration energy storage LDES technology for integration with the SMUD electric grid beginning in 2023.

SMUD will deploy the LDES systems in support of its 2030 zero carbon plan, which aims to reduce thermal generation, maximize local solar generation, provide neighborhood resiliency, and increase social justice and equity. LDES is a key component in SMUD’s decarbonization plan, without compromising reliability or low electricity rates, SMUD said.

As part of this multi-year agreement, ESS intends to set up facilities for battery system assembly, operations and maintenance support and project delivery in Sacramento, creating local, high paying jobs.

In addition, SMUD and ESS plan to establish a Center of Excellence to expand the workforce and knowledge base for LDES technology in partnership with higher education institutions.

The center will provide advanced LDES technical training, creating a statewide skilled talent pool to help build and maintain California’s fast-growing long-duration energy storage resources.

ESS manufactures long-duration iron flow batteries for commercial and utility-scale energy storage applications.

The American Public Power Association’s Public Power Energy Tracker is a resource for association members that summarizes public power energy storage projects that are currently online. The tracker is available here.

U.S. Energy Storage Market Set New Record In Second Quarter 2022

September 18, 2022

by Paul Ciampoli
APPA News Director
September 18, 2022

The U.S. energy storage market set a new record in the second quarter of 2022, with grid-scale installations totaling 2,608 megawatt hours (MWh), the highest installed capacity for any second quarter on record, according to a new report released Sept. 14. 

According to Wood Mackenzie and the American Clean Power Association’s (ACP) latest U.S. Energy Storage Monitor report, grid-scale storage was boosted by a series of deployments in Texas, with the state contributing 60% of installed capacity this quarter. However, challenges to the sector remain due to delays. 

“Despite impressive growth, the U.S. grid-scale energy storage pipeline continues to face rolling delays into 2023 and beyond. More than 1.1 gigawatts (GW) of projects originally scheduled to come online in Q2 were delayed or cancelled, although 61% of this capacity, 709 megawatts (MW), is still scheduled to come online in Q3 and Q4 of 2022,” said Vanessa Witte, senior analyst with Wood Mackenzie’s energy storage team. 

“Supply chain issues, transportation delays and interconnection queue challenges were the main drivers behind delays in the commercial operations date for many projects,” Witte added.  

The U.S. Congress passed a solar investment tax credit (ITC) extension and standalone storage ITC as part of the Inflation Reduction Act.

The new law will support all segments of the energy storage industry, increasing deployment of solar-plus-storage systems while also incentivizing standalone facilities, Wood Mackenzie and ACP said. As a result, Wood Mackenzie forecasts 59.2 GW of energy storage capacity to be added through 2026. 

Residential storage also had its strongest quarter to date with 375 MWh installed in Q2, beating the previous quarterly record of 334.1 MWh in Q1 2022.  

Demand is rising in the residential segment with over 150 MW of residential storage installed for the first time, but ongoing supply shortfalls and rising prices have suppressed deployment. New solar installers continue to add storage to their product offerings, despite ongoing procurement issues. 

Community, commercial and industrial (CCI) storage continues to lag behind other market segments, with only 59.4 MWh of CCI storage installations seen this quarter, making it the lowest quarter recorded for MWh capacity since 2019.

DOE Study Says Hundreds Of Coal Plant Sites Could Be Converted To Nuclear Plant Sites

September 16, 2022

by Paul Ciampoli
APPA News Director
September 16, 2022

A new U.S. Department of Energy (DOE) study finds that hundreds of coal power plant sites across the country could be converted to nuclear power plant sites.

“This would dramatically increase the supply of firm and dispatchable clean electricity to the grid and deliver huge gains to the nation’s goal of net-zero emissions by 2050,” DOE said.

According to the report, this coal-to-nuclear (C2N) transition could help increase nuclear capacity in the U.S. to more than 350 gigawatts (GW). The existing fleet currently has a combined capacity of 95 GW and supplies half of the nation’s emissions-free electricity.

The transition would also bring tangible benefits back to energy communities with additional jobs, new economic activities, and improved environmental conditions, DOE said. The report is available here.

The Investigating Benefits and Challenges of Converting Retiring Coal Plants into Nuclear Plants report analyzed a hypothetical but representative coal power plant site and the surrounding region to investigate the detailed impacts and potential outcomes of a C2N transition.

After screening recently retired and active coal plant sites, the study team, comprised of multiple DOE national labs, identified 157 retired coal plant sites and 237 operating coal plants sites as potential candidates for a C2N transition.

Argonne National Laboratory, Idaho National Laboratory, and Oak Ridge National Laboratory conducted the study, which was sponsored by the Office of Nuclear Energy. 

The team further evaluated the potential coal power plant sites based on a set of ten parameters, including population density, distance from seismic fault lines, flooding potential, and nearby wetlands, to determine if they could safely host a nuclear power plant.

The team found that 80% of the potential sites, with over 250 GW of generating capacity, are suitable for hosting advanced nuclear power plants. These nuclear power plants vary in size and type and could be deployed to match the size of the site being converted.

While these coal power plant sites possess the basic characteristics needed, further investigation is required before a C2N transition can occur.

This includes an investigation into ownership of the plant, an in-depth evaluation of the remaining coal power plant infrastructure, and a consideration of other factors that could pose siting challenges.

After identifying a study site, the team examined how a C2N transition would bring significant financial, economic and environmental benefits to energy communities. 

According to the study, if a large coal plant site is replaced by a nuclear power plant of equivalent size, jobs in the region could increase by more than 650 permanent jobs for the NuScale design example in the case study. The U.S. Nuclear Regulatory Commission recently directed its staff to issue a final rule that certifies NuScale’s small modular reactor (SMR) design for use in the U.S.

These jobs are spread across the plant, the supply chain supporting the plant, and the community surrounding the plant and most typically come with wages that are about 25% higher than any other energy technology.

The occupations that would see the largest gains include nuclear engineers, security guards, and nuclear technicians, DOE said.

“Nuclear power plant projects could also benefit from preserving the existing experienced workforce in communities around retiring coal plants sites. Many of these workers already possess the necessary skills and knowledge requirements needed to help transition their skills to work at a nuclear power plant,” DOE said.

The study also indicates that as new jobs increase economic output and improve wages across the community, the economic well-being of community members in the region will improve.

Based on the case study, long-term job impacts could lead to additional annual economic activity of $275 million. This includes an increase of 92% tax revenue from the nuclear plant for the local county when compared to the tax revenue from the coal plant prior to its closure.

These tax payments would also increase the amount of money given to improve local schools, infrastructure projects, and public services.

DOE also noted that high construction costs “have consistently plagued the nuclear energy industry for years, but a C2N transition can help lower these costs — especially for first-of-a-kind development projects.”

The study shows that reusing coal infrastructure for new, advanced nuclear reactors can save around 15-35% in construction costs.

C2N projects could use the existing land, connection to the grid, and office buildings. Reusing the coal plant’s electrical equipment (transmission connection, switchyard, etc.) and civil infrastructure (roads, buildings, etc.) would also save millions of dollars upfront.

Next Steps

Other analyses can use this study’s methods to set up a site analysis based on a specific coal plant site and a specific type of nuclear reactor.

Conducting parts of this study for different sites would determine more accurate estimates of the environmental and economic impacts of the C2N transition on the region, DOE said.

These new analyses would also determine how specific nuclear plants could use certain infrastructure at the coal plant sites, resulting in more accurate estimates of savings associated with avoided construction costs.

First 35 State Plans to Build Out EV Charging Infrastructure Approved By Federal Government

September 16, 2022

by Paul Ciampoli
APPA News Director
September 16, 2022

The Biden Administration on Sept. 14 announced that more than two-thirds of electric vehicle (EV) Infrastructure Deployment Plans from states, the District of Columbia and Puerto Rico have been approved ahead of schedule under the National Electric Vehicle Infrastructure (NEVI) Formula Program.

“With this early approval, these states can now unlock more than $900 million in NEVI formula funding from FY22 and FY23 to help build EV chargers across approximately 53,000 miles of highway across the country,” the Department of Energy said in a news release.

The NEVI formula funding under the Bipartisan Infrastructure Law makes $5 billion available over five years.

Prior to the approval of plans announced on Sept. 14, state departments of transportation (DOTs) were able to begin staffing and activities directly related to the development of their plans.

After plan approval, states can be reimbursed for those costs and now have a wide range of options to use their NEVI Formula funding for projects directly related to the charging of a vehicle, which could include:

Proposed standards for EV charging require electricians working on EV charging infrastructure installation to be certified through the Electric Vehicle Infrastructure Training Program, a non-profit, industry-recognized training program.

Approved plans are available on the Federal Highway Administration (FHWA) and funding tables for the full five years of the NEVI Formula program can be viewed here.

The FHWA has reviewed state EV infrastructure deployment plans in close coordination with the Joint Office of Energy and Transportation and is working to approve all plans as quickly as possible.

The remaining plans will continue to be reviewed on a rolling basis as the plan approvals are finalized. As a plan is approved, state DOTs will be able to access funding to develop their EV charging infrastructure through the use of NEVI Formula Program funds.

FHWA is also working on related efforts to establish ground rules for how formula NEVI funds can be spent.

FHWA published a Notice of Proposed Rulemaking (NPRM) on proposed minimum standards and requirements for projects funded under the NEVI Formula Program and plans to finalize that rulemaking expeditiously now that the comment period has closed.

FHWA also proposed a Buy America waiver that will allow a short ramp up period for the domestic manufacturing of EV charging. The comment period for the waiver proposal is open through September 30, 2022.

FHWA and the Joint Office of Energy and Transportation will continue to provide direct technical assistance and support to states as plans are reviewed and approved, as well as throughout the lifetime of the NEVI Formula Program.

The joint office this summer announced a partnership to support EV charging with APPA, Edison Electric Institute, and National Rural Electric Cooperative Association to inform electric system investments and support state planning.

Michigan Governor Backs Effort To Reopen Nuclear Power Plant

September 15, 2022

by Paul Ciampoli
APPA News Director
September 15, 2022

Michigan Gov. Gretchen Whitmer recently sent a letter to the U.S. Department of Energy in support of Holtec International’s application for a federal grant under the Civil Nuclear Credit (CNC) program that would keep the Palisades nuclear power plant in Southwest Michigan operational.

On May 20, the 800-megawatt plant’s former owner, Entergy, made the decision to close the plant 11 days ahead of the planned May 31 shutdown “due to the performance of a control rod drive seal.”

The Palisades plant was shut down on May 20, when its current fuel supply ran out and the power purchase agreement with investor-owned Consumers Energy expired. The plant was sold to Holtec Decommissioning International in June 2022.

“With your support, Holtec plans to repower and reopen the Palisades,” Whitmer wrote in the Sept. 9 letter to Secretary of Energy Jennifer Granholm.

Holtec International applied for a CNC on July 5 in an effort to keep Palisades open.

If Holtec is approved for a CNC, Michigan is ready to support the company by identifying state funding and facilitating a power purchase agreement, Whitmer’s office said.

California Lawmakers Approve Legislation That Allows For Nuclear Plant’s Continued Operation

In related news, California lawmakers recently voted to approve legislation that allows for the possible extension of the operation of the Diablo Canyon Power Plant (DCPP), California’s only remaining operating nuclear power plant.

The vote to approve the measure followed on the heels of a recent California Senate Committee hearing related to the possible extension of the operation of the DCPP.

White House Report Assesses Impact Of Cryptocurrencies On The Electric Grid

September 12, 2022

by Peter Maloney
APPA News
September 12, 2022

A new White House report recommends government agencies should take steps to minimize the environmental impact associated with cryptocurrency mining.

The report, Climate and Energy Implications of Crypto-Assets in the United States, by the White House Office of Science and Technology Policy, calls for “the Environmental Protection Agency (EPA), the Department of Energy (DOE), and other federal agencies to provide technical assistance and initiate a collaborative process with states, communities, the crypto-asset industry, and others to develop effective, evidence-based environmental performance standards for the responsible design, development, and use of environmentally responsible crypto-asset technologies.”

Those steps should include standards for very low energy intensities, low water usage, low noise generation, clean energy usage by operators, and standards that strengthen over time for additional carbon dioxide-free generation.

If those measures prove to be ineffective, the Biden administration “should explore executive actions, and Congress might consider legislation, to limit or eliminate the use of high energy intensity consensus mechanisms for crypto-asset mining,” the report said.

The report also recommends the DOE work with the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC) to conduct reliability assessments of current and projected crypto-asset mining operations on electricity system reliability and adequacy and, if needed, develop or update reliability standards to ensure system reliability under the growth of crypto-asset mining.

In addition, the Energy Information Administration (EIA) and other federal agencies should consider collecting and analyzing information from crypto-asset miners and electric utilities to enable evidence-based decisions on the energy and climate implications of crypto-assets, the report said.

And the White House Office of Science and Technology Policy “could establish a National Science and Technology Council subcommittee to coordinate with other relevant agencies to assess the energy use of major crypto-assets,” the report said.

The United States is estimated to host about one-third of global crypto-asset operations, which currently consume about 0.9 percent to 1.7 percent of total U.S. electricity usage, a level similar to all home computers or all residential lighting in the United States, the report noted.

U.S. crypto-asset activity is estimated to result in approximately 25 to 50 metric tons of carbon dioxide per year or 0.4 percent to 0.8 percent of total U.S. greenhouse gas emissions, a level similar to emissions from diesel fuel used in railroads in the United States.

While there are a variety of cryptocurrencies, two are estimated to be responsible for most electricity usage. Bitcoin is estimated to account for 60 percent to 77 percent of total global crypto-asset electricity usage, and Ethereum is estimated to account for 20 percent to 39 percent of electricity usage.

Both Bitcoin and Ethereum use proof-of-work consensus mechanisms that are designed to require more computing power as more entities attempt to validate transactions in exchange for digital “coins” to help disincentivize malicious actors from attacking the network.

An alternative consensus mechanism, proof-of-stake, uses less energy but it is not as widely used. Ethereum, however, has promised to launch Ethereum 2.0, which would use a proof-of-stake consensus mechanism, the report said.

There are other potential uses for blockchain technologies, such as keeping track of environmental attributes such as renewable energy credits (RECs) or managing distributed energy resources (DERs), but the benefits of using those technologies would need to outweigh the additional emissions and other environmental externalities that result from their use, the report said.

MISO Now Includes Energy Storage As An Eligible Resources In Its Market

September 12, 2022

by Peter Maloney
APPA News
September 12, 2022

The Midcontinent Independent System Operator (MISO) recently included energy storage in its market portfolio for the first time.

The inclusion of Electric Storages Resources (ESRs) enables resources, such as batteries, pumped storage facilities and compressed air energy storage, to participate in MISO’s Energy and Operating Reserves Markets as supply or demand.

ESRs are flexible resources that can help reduce peak demands, manage congestion and provide backup power for major disruptions because they can respond quickly and switch between injection (discharge) and withdrawal (charge) modes, MISO said.

The near-term benefits of the new ESR model are modest due to the small volume of storage resources. However, the new model positions MISO ahead of the increased storage participation anticipated with higher penetration of renewables and distributed energy resources over the next five to 10 years, the ISO said.

In 2021, applications of energy storage projects surpassed wind power in MISO’s interconnection queue for the first time. Solar projects were the single highest category with nearly 44 gigawatts (GW) of projects, followed by about 12 GW of storage projects and about 9.1 GW of wind projects.

The Federal Energy Regulatory Commission (FERC) in 2016 issued a notice of proposed rulemaking that would require regional transmission organizations and independent system operators to revise their wholesale power tariffs to better remove barriers to RTO-run wholesale market participation by energy storage resources such as large battery systems.

In 2018, FERC, in Order 841, voted to remove barriers to the participation of electric storage resources in the capacity, energy and ancillary services markets operated by regional transmission organizations and independent system operators.

In October 2019, FERC approved compliance filings by the PJM Interconnection and the Southwest Power Pool in response to a landmark 2018 FERC order that adopted rules aimed at removing barriers to the participation of ESRs in wholesale power markets.

Adrienne Lotto To Become APPA’s New Senior VP of Grid Security, Technical and Operations Services

September 10, 2022

by Paul Ciampoli
APPA News Director
September 10, 2022

Adrienne Lotto, Vice President and Chief Risk and Resilience Officer at the New York Power Authority (NYPA), will join the American Public Power Association (APPA) as APPA’s new Senior Vice President of Grid Security, Technical and Operations Services, starting on October 1.  

“As we continue to enhance APPA’s existing portfolio of technical and operations services and programs and national mutual aid response as well as to build out new offerings to our members under our DOE cooperative agreements, Adrienne will bring her considerable energy, talent and intellect to help the excellent T&O team undertake this important work,” said Joy Ditto, President and CEO of APPA.

“Adrienne will also bring to bear her strategic abilities and relationships to help position APPA and public power vis-à-vis federal agencies such as DOE, the Department of Homeland Security, and the White House,” Ditto said.

“Public power plays a vital role in the lives of millions of Americans. I am grateful for the opportunity to join the APPA team, to partner with public power utilities and the federal government to ensure the sector remains secure and resilient into the future,” said Lotto. 

“Adrienne has been an asset to the New York Power Authority, leading our risk management strategies to ensure NYPA remains resilient in the face of disruptive events like COVID19, supply chain disruptions, and current and future potential impacts of climate on our critical infrastructure facilities,” said Justin E. Driscoll, NYPA’s interim president and CEO. “NYPA has benefitted from a strong partnership with APPA and we know Adrienne will be key in leading resilience strategies, strengthening the industries’ mutual aid response and informing research and development for the grid of the future. “

Lotto joined NYPA in October 2019 as Senior Director for Energy Security and Resilience Programs, a role that she served in until January 2021 when she was named as NYPA’s Chief Risk and Resilience Officer.

In her current role at NYPA, Lotto sets NYPA’s strategic risk management and resilience vision and implements, oversees and monitors all risk management and resilience activities of NYPA. She also determines NYPA’s risk tolerance in alignment with the risk appetite set by the Board of Trustees and the Executive Risk and Resilience Management Committee.

Lotto developed NYPA’s first emerging threats program to mitigate NYPA’s key operational processes and functions from external threats and has regularly presented to NYPA’s Board of Trustees and executives on risk trends by developing and implementing key risk indicators and other metrics for a going-forward strategic view of risk.

While at NYPA, she has also partnered with the Authority’s research and development team to ensure projects mitigate cyber security and supply chain risk to enhance resilience and clean energy.

In addition, she worked strategically with federal agencies including the Department of Homeland Security and Department of Energy and has worked to strengthen public-private partnerships  with New York State and trade groups and associations including APPA, the Electric Power Research Institute and the Large Public Power Council, among others.

Prior to NYPA, Lotto worked at the U.S. Department of Energy (DOE). From March 2018 to October 2018, she served as Chief of Staff in the DOE’s Office of Electricity and from March 2018 to October 2019 she served as Deputy Assistant Secretary of Infrastructure Security and Energy Restoration in the DOE’s Office of Cybersecurity, Energy Security and Emergency Response.

From July 2010 to March 2018, she served as Senior Deputy County Attorney for Risk and Compliance for the County of Putnam, N.Y.

Lotto received a Juris Doctor from the Pace University School of Law in New York and a Bachelor of Science from the State University of New York at Albany.