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DOE Announces $18 Million In Grants To Enhance Its Weatherization Program

January 11, 2022

by Peter Maloney
APPA News
January 11, 2022

The Department of Energy (DOE) has announced an $18 million funding opportunity made available through the Bipartisan Infrastructure Law to help enhance the impact of the DOE’s existing residential Weatherization Assistance Program (WAP).

The Enhancement and Innovation Funding Opportunity Announcement will provide $18.6 million this year and up to $25 million each subsequent year through 2025. Each award will provide a maximum of $2 million over a three-year performance period.

Two-thirds of low-income households have high energy burdens and spend more than 6 percent of their income on utility bills and Black households spend 43 percent more of their income on energy costs, Hispanic households spend 20 percent more, and Native American households spend 45 percent more, the DOE said.

The DOE says the selected projects will focus on:

DOE’s WAP program will also receive $3.5 billion in additional funding from the Bipartisan Infrastructure Law to increase the energy efficiency, health, and safety of low-income households and to reduce their energy costs.

Additional details are available here.

Fitch Says New Denton, Texas, Cryptocurrency Load Unlikely To Impact Credit Quality

January 11, 2022

by Paul Ciampoli
APPA News Director
January 11, 2022

A purchase power agreement (PPA) the City of Denton, Texas, has entered into with Core Scientific to provide power to the company’s anticipated digital asset mining operation is unlikely to affect the credit quality of the city’s utility revenue bonds, Fitch Ratings recently said.

The new mining operation will more than double the city utility’s existing electrical load by 2023, but specific power supply acquisition requirements and terms of the PPA limit credit and financial risk to the city, the rating agency said.

Core Scientific’s load for its blockchain data center is expected to be approximately 300 megawatts. Denton has agreed to purchase power on behalf of Core Scientific through the organized power market operated by the Electric Reliability Council of Texas (ERCOT).

“The PPA terms are designed to minimize electric commodity price risk to the city. The settlement arrangements and collateral agreements with Core Scientific are designed to protect the city’s financial position from an unexpected closure or payment default once energy has been purchased on Core Scientific’s behalf,” Fitch said.

The PPA arrangement “preserves the flexibility of the digital asset mining facility to shut down or reduce operations in the event that ERCOT energy prices are too high to allow it to operate economically,” Fitch said. It noted that Core Scientific is able to operate as a controllable load resource within ERCOT, “which provides value in that ERCOT can purchase grid reliability products from Core Scientific, and ERCOT has the ability to require the load to cease operations in an energy shortage position, which occurred during Winter Storm Uri.” Uri hit the Texas power grid in early 2021.

Core Scientific is working with Tenaska Energy Inc. on this project. Tenaska will build the high voltage interconnection and transformer equipment needed to provide the high volume of electricity to the facility. There will be no additional capital expenditures required of the city, Fitch noted. Tenaska will also provide power management services to the project.

Fitch noted Denton adopted a renewable resource plan in 2018 that sets a goal of providing the city with 100% renewable energy. The city has contracted for renewable supplies, but also owns a natural gas plant, the Denton Energy Center, which firms the intermittent production of renewable energy and acts as a cost hedge. Core Scientific has a net carbon-neutral goal that aligns with the city’s plan, and the company has committed to using emissions-free power supplemented by renewable energy credits to power the Denton facility.

“Increased customer concentration introduced by the Core Scientific facility will not diminish the utility’s very strong revenue defensibility assessment. Financial risk to the city is largely mitigated due to the terms of the PPA. The unexpected closure of the facility, should it occur, would not negatively impact the city’s economy or utility rates, since the facility will not be a large employer,” the rating agency said.

Treasury Releases Final Rule For State And Local Fiscal Recovery Funds Program

January 10, 2022

by Paul Ciampoli
APPA News Director
January 10, 2022

The Treasury Department on Jan. 6 issued the final rule for the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) program, enacted as a part of the American Rescue Plan, which provided $350 billion to state, local, and tribal governments to support their response to and recovery from the COVID-19 pandemic.

The American Public Power Association (APPA) commented on the Interim Final Rule, which was issued in 2021.

APPA praised the decision to allow CSLFRF to be used for utility assistance programs and to allow such assistance to be predicated on the assumption that households or populations experiencing economic harm during the pandemic experienced that harm due to the pandemic, and thus qualify for assistance.

“APPA believes this flexibility is appropriate and will help reduce barriers to relief to those who need it most,” the trade group said.

Utility assistance remains one of the stated eligible uses for CSLFRF, but Treasury said that the final rule further clarifies that CSFLRF recipients “may administer utility assistance or address arrears on behalf of households through direct or bulk payments to utility providers to facilitate utility assistance to multiple consumers at once, so long as the payments offset customer balances and therefore provide assistance to households.”

APPA also asked that utility revenues be allowed to be considered as “lost revenue” for a local recipient of CSLFRF funds. The distinction is significant because CSLFRF funds spent to the extent of “lost revenue” can be spent on any governmental program — a substantial flexibility.

“Treasury has adjusted the definition (of lost revenue) to allow recipients that operate utilities that are part of their own government to choose whether to include revenue from these utilities in their revenue loss calculation. This change responds to comments from recipients indicating that revenue from utilities is used to fund other government services and that utility revenues have declined on aggregate,” Treasury said in the announcement of the final rule.

The final rule is available here.

APPA Launches New Member Webpage On Infrastructure Law Implementation

January 10, 2022

by Paul Ciampoli
APPA News Director
January 10, 2022

Members of the American Public Power Association (APPA) now have access to a webpage dedicated to keeping them up to date on activity and funding opportunities related to implementation of the Infrastructure Investment and Jobs Act (IIJA).

APPA is also encouraging members to use the Federal Register and Grants.Gov to make specific searches for agencies or programs that are of interest, as it cannot guarantee the webpage will be exhaustive of all funding opportunities.

Additionally, APPA said its members should consider signing up for agency-wide or office specific newsletters based on their areas of interest.

APPA’s ILJA webpage is available to members by clicking here.

The ILJA was signed into law by President Joe Biden on Nov. 15, 2021. The law includes $1.2 trillion in funding, including $550 billion in new federal spending not previously authorized, for transportation, energy, and water infrastructure.

The law includes several potential funding opportunities for public power including for electric and hydrogen vehicle fueling infrastructure, grid resiliency infrastructure, smart grid investments, physical and cybersecurity infrastructure, incentives for hydropower production and efficiency infrastructure, energy efficiency and weatherization, and broadband infrastructure.

Grand Coulee Dam Overhaul Project Ensures Another 30 years Of Hydropower In The Northwest

January 10, 2022

by Paul Ciampoli
APPA News Director
January 10, 2022

The U.S. Bureau of Reclamation and the Bonneville Power Administration (BPA) recently announced the completion of the major overhaul of three hydroelectric power generating units inside the Nathaniel “Nat” Washington Power Plant at Grand Coulee Dam.

The project will ensures another 30 years of hydropower delivery in the region.

Located on the Columbia River about 90 miles west of Spokane, Wash., the Grand Coulee Dam is the largest power generating complex in the United States.

The dam can generate more than 6,800 megawatts (MW) and annually supplies more than 20 billion kilowatt hours of electricity to the region.

The project involved complete disassembly of each 805-MW hydroelectric unit, refurbishing each to ensure all of the mechanical and electrical surfaces were restored and returned to like-new condition.

Approximately 6.5 million pounds of steel were removed from each unit once every component down to the turbine runner was fully taken apart. While the units were disassembled, each component was sand blasted, welded, ground, polished, and then repainted before reassembly. Restoring the mechanical and electrical components results in less friction. As a result, the generating units operate with less wear and tear, making them more reliable and efficient.

Grand Coulee Dam provides about one-quarter of the total generation of hydroelectric power for the Federal Columbia River Power System and is one of 31 federal dams that generate more than half of the hydropower in the Northwest.

The Nathaniel “Nat” Washington Power Plant was built between 1967 and 1975 and is the largest of the four power houses. The plant contains six generating units capable of producing more than 4,200 MW, and it contributes to about two-thirds of the total power generated by the dam.

Completed in 1941, Grand Coulee Dam serves as a multipurpose facility, providing water for irrigation, hydroelectric power production, flood control, fish and wildlife conservation, and recreation. The Grand Coulee Power facility is comprised of 33 generators in three power plants, the John W. Keys III Pump-Generating Plant, and three switchyards.

BPA delivers power generated by the federal dams, one nonfederal nuclear plant and several small nonfederal power plants, to more than 140 Northwest electric utilities, serving millions of consumers and businesses in Washington, Oregon, Idaho, western Montana and parts of California, Nevada, Utah, and Wyoming.

Michael Browder Announces Plans To Retire As CEO Of Bristol Tennessee Essential Services

January 9, 2022

by Paul Ciampoli
APPA News Director
January 9, 2022

Michael Browder recently announced that he plans to retire as CEO of Bristol Tennessee Essential Services (BTES) on December 31, 2022.

Browder began his career at BTES in 1972 and has been CEO of the organization since 1977.

Under Browder’s leadership, BTES expanded its product offerings in 2005 to add Internet, telephone, and cable television services and now offers the fastest Internet available in the United States with 10 Gigabits of service available to its customers. 

person
Michael Browder (photo courtesy of BTES)

“Many accomplishments and awards have been received during my time at BTES that are directly related to BTES’ key success factors of safety, reliability and financial which include an impeccable safety record, consistently improving system reliability, lowering the rates to one of the lowest in the Tennessee Valley, and secure financials to ensure continued operations for a successful future,” he said.

Public Power Utilities Earn Strong Residential Customer Satisfaction Marks

January 9, 2022

by Paul Ciampoli
APPA News Director
January 9, 2022

Public power utilities earned a number of the top rankings in J.D. Power’s latest Electric Utility Residential Customer Satisfaction Study.

The 2021 Electric Utility Residential Customer Satisfaction Study was based on responses from 100,999 online interviews conducted from January 2021 through November 2021 among residential customers of the 145 largest electric utility brands across the United States, which represent more than 101 million households.

In the South region, the following public power utilities were represented in the J.D. Power rankings:

In the West, among large public power utilities, Arizona’s Salt River Project earned the top spot in terms of rankings, with California’s SMUD ranked second. The Los Angeles Department of Water and Power also earned high marks from residential customers as ranked by J.D. Power.

Meanwhile, for the 14th consecutive year, J.D. Power recognized Washington State’s Clark Public Utilities for ranking highest in residential customer satisfaction among midsize electricity providers in the Western United States.

Other mid-sized public power utilities in the West ranked by J.D. Power were California’s Anaheim Public Utilities, Imperial Irrigation District and Modesto Irrigation District, and in Washington State, Seattle City Light, Tacoma Power and Snohomish County PUD. Colorado Springs Utilities also earned high marks from residential customers.

In the Midwest mid-sized segment, two Nebraska public power utilities – Lincoln Electric System and Omaha Public Power District – and City Utilities of Springfield, Mo., earned high marks from their residential customers.

Along with public power utilities, the study also covers investor-owned utilities and cooperatives.

J.D. Power said that overall electric utility residential customer satisfaction was 748 (on a 1,000-point scale) in 2021, a decrease from a record-high 751 in 2020.

Additional details on the study are available here.

NAESB Is Developing Standards To Aid Extreme Weather Electric-Gas Coordination

January 9, 2022

by Peter Maloney
APPA News
January 9, 2022

The North American Energy Standards Board (NAESB) is developing standards to aid the coordination between gas and electric markets during periods of extreme weather.

In several regions of the country, extreme cold weather can present challenges between the need for natural gas as a fuel for space heating and for electric power generation. The potential impact of cold weather on the electric power sector was most recently demonstrated last February when winter storm Uri left millions without power.

On Dec. 9, NAESB’s board of directors voted unanimously to support the addition of a new standards development project to its 2022 work plans aimed at improving electric and gas market coordination.

NAESB’s Gas Electric Harmonization Committee has been meeting since June to discuss potential activities that the organization could undertake to complement the joint inquiry of the Federal Energy Regulatory Commission (FERC), the North American Electric Reliability Corporation (NERC), and the regional entities into 2021 Cold Weather Grid Operations following Winter Storm Uri.

Staff from FERC and NERC in September issued a report of preliminary findings and recommendations related to Uri, which affected the Electric Reliability Council of Texas (ERCOT), Southwest Power Pool (SPP), Midcontinent Independent System Operator (MISO), and other regions.

NAESB’s new standards development project, as presented by SPP, is intended to build upon the organization’s existing body of standards and to focus on commercial information sharing between critical parties during impending extreme weather conditions.

NAESB is in the process of making assignments to initiate its standards development within its subcommittees supporting the wholesale and retail gas and electric markets and will be working with FERC, NERC and the National Association of Regulatory Utility Commissioners to align its efforts with the recommendations included in its finalized staff report.

NAESB provides an industry forum that convenes wholesale and retail natural gas and electric market participants, regulators, and other stakeholders to develop business practice standards that underpin the commercial transactions of the markets.

Colorado Springs Utilities To Build Next-Generation Fiber Network

January 8, 2022

by Paul Ciampoli
APPA News Director
January 8, 2022

Colorado Springs Utilities on Jan. 7 unveiled its plan to construct its next-generation, city-wide fiber network.

The network will enhance utility operations, allowing the public power utility to better serve its customers, and enable multi-gigabit internet connectivity to every home and business in Colorado Springs. 

The network will be built to reach every address within the Colorado Springs, Colo,, city limits and provide the community-owned utility with more efficient and effective delivery of utility services to its customers, it noted.

The fiber network infrastructure will service the utility’s needs while making excess fiber available for lease. The cost to build this network will be significantly offset by a long-term lease agreement with a national fiber internet provider, Ting Internet, and other organizations on the utility’s non-exclusive network. 

Construction of the entire fiber network will begin in 2022.

When the fiber network is complete in 2028, Colorado Springs will be one of the largest gig-cities in the country. 

“The speed, reliability and security of this network will enhance Colorado Springs’ ability to attract and retain new businesses and jobs, pursue new educational opportunities and enhance connectivity in every neighborhood,” the utility said.  

Ting Internet expects to provide fiber internet access to local businesses and residents starting in 2023. 

To learn more about the project, click here.

JEA Names Paul McFadden As Its First Director Of Diversity, Equity And Inclusion

January 7, 2022

by Paul Ciampoli
APPA News Director
January 7, 2022

Jacksonville, Fla.-based public power utility JEA on Jan. 6 announced the hiring of Paul McFadden as its first director of diversity, equity and inclusion. McFadden assumed the role on Jan. 3, 2022.

“JEA created this role as a fundamental building block in growing diversity within the company and cultivating stronger connections with diverse groups in our community,” the utility said in a news release.

In his new role, McFadden will provide strategic direction in executing JEA’s vision of sustaining an inclusive, respectful, and diverse culture, JEA said.

McFadden has a breadth of experience at JEA in human resources, and most recently, he served as a human resources business partner for the utility. In that role, he served as a consultant to management on human resources-related issues and worked with JEA’s human resources department to find workable solutions.  

JEA
Photo courtesy of JEA

“JEA continues to build a culture that is firmly rooted in courtesy and respect,” said JEA’s Managing Director and CEO Jay Stowe in a statement. “We are committed to creating an atmosphere that is diverse, respectful and inclusive. This is a big step in our journey, and we’re happy to have Paul at the helm.” 

In an October 2021 episode of Public Power Now, Monique Earl, who leads the Los Angeles Department of Water and Power’s Office of Diversity, Equity and Inclusion, and Nancy Harvey, the New York Power Authority’s Chief Diversity, Equity and Inclusion Officer, highlighted diversity and equity initiatives underway at LADWP and NYPA.