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APPA Emphasizes Need For Affordable Transmission Rates And Touts Joint Ownership

November 2, 2021

by Paul Ciampoli
APPA News Director
November 2, 2021

The Federal Energy Regulatory Commission (FERC) should not lose sight of the need to keep transmission rates affordable for consumers and its efforts to supervise the development of new transmission must prioritize effective planning to reliably meet the needs of load-serving entities (LSEs), the American Public Power Association (APPA) said in recent comments filed at the Commission.

At the same time, APPA also urged the Commission to promote joint transmission ownership through the transmission planning process by, for example, specifying that joint ownership of transmission facilities is a positive factor in evaluating transmission solutions in regional transmission planning processes.

APPA’s comments came in response to an advance notice of proposed rulemaking (ANOPR) issued by FERC in July 2021 to reform its transmission planning, cost allocation, and generator interconnection rules (Docket No. RM21-17).

“APPA agrees that as new electric generation resources, especially renewable resources, are developed, new transmission facilities may be required, and the uses of the electric transmission grid will evolve with the change in resource mix,” the trade group said in its initial comments in the ANOPR proceeding.

Public power utilities and public power joint action agencies “engage in planning to meet the resource needs of their customers or of their members in a manner that is safe, reliable, affordable, and consistent with the policy preferences of their community-owners,” APPA noted.

Public power utilities are LSEs and, as such, have a critical concern that the Commission’s efforts provide for integration of new resources through transmission planning and generator interconnection that will maintain reliable and affordable service to customers, APPA told FERC.

The Commission’s efforts to supervise the development of new transmission must prioritize effective planning to reliably meet the needs of LSEs, consistent with Federal Power Act (FPA) section 217(b)(4).

At the same time, APPA said that rising transmission costs are a major concern for many of its members. “Increased transmission investment in recent years has resulted in substantial increases in transmission rates in some regions, and this trend is expected to continue,” it said.

The Energy Information Administration’s 2020 Annual Energy Outlook projects, for example, that rising transmission and distribution costs will offset much of the projected decrease in generation costs through 2050. These transmission cost increases “impose a significant burden on public power utilities and the customers they serve.”

While additional transmission infrastructure may be needed to accommodate new resources, replace aging infrastructure, and promote reliability and resilience, the Commission, in considering proposed changes to its transmission planning and cost allocation rules, “must remain cognizant of the need to avoid placing unreasonable cost burdens on transmission customers.”

Of particular concern to public power utilities would be revised Commission rules that assign to them costs of transmission facilities from which they derive little or no reliability or economic benefit, APPA said.

“Protecting consumers from unreasonable costs is not only a statutory obligation under the FPA, it is a practical imperative if the Commission’s planning and cost allocation rules are to effectively promote transmission development.”

APPA said it is encouraged that the ANOPR recognizes the need to consider the impacts of reform on costs to consumers, and APPA urged the Commission to keep such cost impacts at the center of any analysis of potential reforms.

While transmission investment has been robust in recent years, APPA said it shares the Commission’s concern that the current regional and interregional transmission planning and generator interconnection processes may not consistently result in the most efficient transmission projects. 

“Inefficient transmission planning and generator interconnection processes can result in LSEs having the worst of both worlds: rising transmission costs without efficient and effective transmission solutions. Accordingly, APPA agrees that there is merit in the Commission’s effort to assess whether changes to its current rules and policies are warranted.”

As a general matter, however, APPA noted that concerns with the transmission planning and generator interconnection processes are likely to be highly regional in nature, which argues against a “one-size-fits all” approach to implementing any reforms in this proceeding.

At the same time, APPA pointed out that one important issue that is not raised in the ANOPR is the benefit of promoting joint transmission ownership opportunities for non-public utilities. “The Commission has consistently recognized the benefits of joint ownership, and APPA urges the Commission to act to promote joint ownership opportunities through any reforms to the transmission planning process.”

While the Commission’s incentive policies have been the primary mechanism through which the Commission has encouraged joint ownership, that approach has had relatively limited success in promoting joint ownership opportunities, APPA said.

“As part of any reforms adopted in this proceeding, APPA urges the Commission also to promote joint ownership through the transmission planning process by for, example, specifying that joint ownership of transmission facilities is a positive factor in evaluating transmission solutions in regional transmission planning processes.”

APPA highlighted positions on some of the ANOPR’s inquiries including, among other things:

The Energy Authority, Northwest Public Power Utilities In Strategic Partnership

November 2, 2021

by Paul Ciampoli
APPA News Director
and Peter Maloney
APPA News
November 2, 2021

The Energy Authority (TEA) recently announced its participation in the next phase of the Northwest Power Pool Western Resource Adequacy Program (WRAP) in partnership with seven public power utilities.

TEA will join the WRAP as the load responsible entity, pooling the loads and resources of the seven PUDs, which are Benton PUD, Clark Public Utilities, Cowlitz PUD, Emerald People’s Utility District, Franklin PUD, Grays Harbor PUD, and Lewis County PUD. All of the PUDs are based in Washington State, with the exception of Oregon-based Emerald.

The aggregated group of utilities represents over 440,000 retail electricity customers with a combined average peak load of over 2,700 MW. TEA said its public power ownership and existing relationships make this a logical extension of the portfolio management and scheduling services that TEA already provides.

The PUDs “are seeking to continue their proven track record of providing cost-effective and reliable services to customers in the face of new complexities and an ever-changing industry. Standing up a resource adequacy program is a critical next step as the region undergoes transformative changes in the coming years,” TEA said.

Established in 1997, TEA is headquartered in Jacksonville, Florida. TEA’s West Region Office, located in Bellevue, Washington, provides a full range of power and portfolio management services for public power utilities located in the Bonneville Power Administration balancing area as well as in the state of California.

NWPP Completes Design Phase of Western Resource Adequacy Program

NWPP began planning the WRAP to prepare for the scheduled decommissioning coal plants in the region and increasing renewable integration. The program includes a comprehensive review of resource adequacy in NWPP’s territory.

NWPP is now gearing up to implement the first stage of WRAP in which participants will commit to meeting a common resource adequacy planning standard. Agreements in the first stage of the program will be non-binding, meaning there will be no penalties if participants do not meet their adequacy obligations.

The first stage also will not include the operational component of the program that would allow participants to pool and share resources during times when grid operating conditions are constrained.

Later stages of the program will layer on additional requirements and functions and evaluate further design changes that may be needed. The full program is expected to be in operation in 2024.

“We have reached a major milestone in our effort to stand up a resource adequacy program in the West,” Frank Afranji, president of NWPP, said in a statement. “A common resource adequacy planning standard will increase coordination and visibility with respect to adequacy in the region and is a positive step toward enhancing regional reliability.”

The next phase of the WRAP project will include evolving the NWPP’s corporate structure to house an independent board so NWPP can serve as the administrator of the program and filing with the Federal Energy Regulatory Commission (FERC).

NWPP said it would continue to work with Southwest Power Pool (SPP) to develop and implement the WRAP project. NWPP has hired SPP as the operator of the WRAP project. The scope of SPP’s services as a program operator include performing forward showing functions, modeling and system analytics, real-time operational program development, continual technical improvement, and IT systems work.

The next phase of the WRAP project also includes new participants Black Hills Power and Clatskanie Public Utility District.

In total, there are 20 participants in WRAP, representing approximately 57,300 megawatts of load and spanning nine states and one Canadian province committed to the program’s next phase. NWPP said it expects additional participants to join the program in the coming weeks.

NWPP released a report in August that detailed the design of the WRAP project.

CPS Energy Board Appoints Rudy Garza As Interim President And CEO

November 2, 2021

by Paul Ciampoli
APPA News Director
November 2, 2021

The CPS Energy Board of Trustees voted on Nov. 1 to appoint Rudy Garza as Interim President and CEO, effective November 8, 2021. Garza will serve in this role while the search for the permanent President and CEO takes place.

CPS Energy President and CEO Paula Gold-Williams on Oct. 21 informed the public power utility’s Board of Trustees of her plans to leave CPS Energy in early 2022.

The Board of Trustees announced at an October 25, 2021 board meeting that Chair Willis Mackey and Vice Chair Janie Gonzalez will lead the CEO Search Committee for the new President and CEO. All Board Members will be involved in the process.

To help with the national search, the board will retain an external firm, which has not been selected yet. Gold-Williams will remain with the utility in a helpful capacity through her formal planned departure in January 2022, CPS Energy said.

Garza has more than 25 years as a leader in the electric and natural gas utility industry and has served in both the public and private sectors over the course of his career. Garza has a Bachelor of Science in Electrical Engineering from the University of Texas in Austin and a Master of Business Administration from the University of North Texas.

Garza
Rudy Garza

Garza previously served as Chief Customer & Stakeholder Engagement Officer for CPS Energy and he will become the first Hispanic leader to hold this leadership position.

Garza joined CPS Energy in 2012 and previously served as Senior Vice President of Distribution Service and Operations where he oversaw the maintenance and construction activity of the electric distribution system and has also served the company in the role of Vice President of External Relations.

CPS Energy said that Garza and his leadership team will be evaluating the realignment of work and will provide updates on any organizational changes in the coming weeks.

Snohomish PUD projects Aim To Increase EV Charging Access, Social Equity

November 2, 2021

by Peter Maloney
APPA News
November 2, 2021

The Snohomish County Public Utility District has entered partnerships to provide electric vehicle (EV) charging facilities on a socially equitable basis in Everett, Wash., where the PUD is based.

In partnership with the City of Everett, Snohomish PUD is working on a project to install an in-ground resonant magnet induction charging system for electric buses at Eclipse Mill Park near downtown Everett. The installation, the first of its kind in western Washington, would have the ability to charge public buses while they are in service at the bus stop. It will also serve as a demonstration project for future electric vehicle charging installations.

“This project will allow buses to quickly charge during layover times, improving overall route efficiency,” Melinda Adams, transportation services manager at Everett Transit, said in a statement.

In a second project, Snohomish PUD is partnering with HopeWorks to install two new electric vehicle chargers, supplementing an existing charger at the newly constructed HopeWorks Station, a housing and commercial building. Snohomish PUD plans to install one public fast electric vehicle charger and one Level 2 charger for the public, residents, and staff usage.

HopeWorks Station is designed as a Sustainability Demonstration Site that serves residents coming out of homelessness with affordable housing and a workforce development center providing a career training program.

Snohomish PUD said both projects aim to increase the availability of electric vehicle charging and transportation for communities historically underserved by electric vehicle infrastructure and disproportionately impacted by climate change and pollution from transportation.

Snohomish PUD said both projects align with its electric transportation goals as outlined in SHB 1512, the Washington State law that, among other things, gave public power utilities authority to invest in electric vehicle infrastructure.

Both projects will be partially funded by Washington State’s Clean Energy Fund, which is managed by the state’s Department of Commerce and supports the development, demonstration and deployment of clean energy technology.

The Clean Energy Fund will contribute $728,780 to the bus charger project, which has a price tag of about $800,000. The Clean Energy Fund will contribute $135,582 to the HopeWorks project, which has a total cost of about $150,000.

To date, Washington’s Clean Energy Fund has invested more than $131 million in 98 clean energy projects in the state.

The American Public Power Association’s Public Power EV Activities Tracker summarizes key efforts undertaken by members — including incentives, electric vehicle deployment, charging infrastructure investments, rate design, pilot programs, and more. Click here for additional details.

Supreme Court Agrees To Review Appeals Court’s Power Plant Emissions Ruling

November 1, 2021

by APPA News
November 1, 2021

The U.S. Supreme Court on October 29 said it would review the U.S. Court of Appeals for the District of Columbia Circuit decision to vacate and remand the Environmental Protection Agency’s (EPA) Affordable Clean Energy (ACE) rule and repeal of the Clean Power Plan under section 111(d) of the Clean Air Act (CAA).

The appeals court found that ACE, as well as the repeal of the 2015 CPP, “hinged on a fundamental misconstruction of” CAA section 111(d). The appeals court’s decision rejected EPA’s position that the CAA only allows the agency to craft emissions restrictions that apply directly “at the source” of power plants. The position was a departure from the CPP’s sector-wide approach to reducing emissions. “In addition, the ACE rule’s amendment of the regulatory framework to slow the process for the reduction of emissions is arbitrary and capricious,” the appeals court said.

The Supreme Court granted four separate petitions to review the D.C. Circuit’s January 2021 decision. The cases are now consolidated for further consideration.

Each petition questioned whether the EPA has the statutory authority to completely restructure the electricity system nationwide. 

The questions presented to the court are as follows:

In defending the ACE rule at the D.C. Circuit, the EPA argued that it needed to repeal the CPP and replace it with the ACE rule because the CPP relied on an overly expansive interpretation of Section 111 of the CAA.

The CPP called for emitting sources to implement the best systems of emissions reduction (BESR) that were not limited to “inside the fence” modifications to the source.

The EPA subsequently argued that Section 111 unambiguously constrains EPA to include only improvements “at” and “to” existing sources when determining BSER. The D.C. Circuit disagreed, finding that the provisions defining BSER contain no such spatial limitation. 

After the D.C. Circuit’s decision, EPA was expected to draft a new rule to regulate carbon dioxide emissions from power plants. Now, with the high court’s decision to take up the case, it throws significant uncertainty onto that process.

Oral arguments are likely to be held by the Supreme Court in February or March 2022, and a decision rendered before the court adjourns its October 2021 term on June 30, 2022.

CPS Energy Partners With Zpryme On Educational Augmented Reality App

October 29, 2021

by Paul Ciampoli
APPA News Director
October 29, 2021

Zpryme, an Austin, Texas-based based energy research company, on Oct. 20 announced a partnership with San Antonio, Texas-based public power utility CPS Energy to roll out an educational augmented reality (AR) application.

The dual language AR app, called Electrify San Antonio, will help students to learn about the energy production and distribution cycle. The app is available in Spanish and English.

truck
Students discovering the inner workings of a CPS Energy power plant (image from Zpryme)

Electrify San Antonio starts by exploring the inner workings of a CPS Energy power plant and its recycling systems, and demonstrates the process for creating distributed, renewable energy.

cpsone
Students discovering the inner workings of a CPS Energy power plant (image from Zpryme)

The app then provides an overview of three separate renewable energy sources and their frameworks and concludes with a unique user experience on how electricity is transmitted and distributed to local communities and businesses.

Electrify San Antonio is free and available for download in the Google Play and the Apple App Store.

Customer Connections Group Selects New Planning Committee Officers

October 29, 2021

by APPA News
October 29, 2021

New officers for the Customer Connections section and planning committees were named at the closing session of the American Public Power Association’s (APPA) 2021 Customer Connections Conference in Scottsdale, Ariz., which was held in October.

Nicki Parker, Customer Care Manager, Farmington Electric Utility System, New Mexico, will chair APPA’s Customer Connections Section in 2022. Palma Lough, Member Relations & Training Manager, Oklahoma Municipal Power Authority, is vice chair.

Alice Tucker, Customer Service Manager, Easley Combined Utilities, South Carolina, will chair the Customer Service Planning Committee; Lily Burgess, Office Manager, Stowe Electric Department, Vermont, will serve as vice chair. Caitlin Aburrow, Senior Director, Global Product Marketing, Oracle Utilities will serve as an advisory officer.

Koral Miller, Energy Services Manager, Mason County PUD 3, Shelton, Washington, will chair the Energy Innovation Planning Committee; Kristofor Sellstrom, Energy and Gas Resources Manager, Jamestown Board of Public Utilities, New York will serve as vice chair. Samantha Hart, Senior Project Manager, Sales and Innovation, Milepost Consulting will serve as an advisory officer.

Dale Odom, Supervisor, Business Development Services, ElectriCities of North Carolina will chair the Key Accounts Planning Committee; Andy Pollard, Electric Superintendent, Harrisonville Municipal Utilities, Missouri will serve as vice chair. Mary Malone, Director, Account Development, Questline Services will serve as an advisory officer.

Heather Contant, Director of Government & Community Relations, Delaware Municipal Electric Corporation will chair the Public Communications Planning Committee; Valerie Larson-Holmes, Director of Communications, Missouri River Energy Services, Sioux Falls, South Dakota will serve as vice chair.

For more information on APPA’s Customer Connections sections and committees, contact CustomerConnections@PublicPower.org.

Report Details How Sustainable Energy Utility Would Benefit Ann Arbor, Mich.

October 29, 2021

by Paul Ciampoli
APPA News Director
October 29, 2021

A sustainable energy utility (SEU) for the City of Ann Arbor, Mich., is feasible and would yield a variety of benefits for the city, a new report concludes. While the SEU would be a publicly owned municipal utility, the report notes that the SEU would differ from a traditional municipal utility in that it would supplement the current investor-owned utility (IOU).  

City Has Aggressive Carbon Neutrality Goal

The City of Ann Arbor has adopted an aggressive goal of a just transition to community-wide carbon neutrality by the year 2030, known as A2ZERO.

“Achieving this goal will require ambitious and transformative practices,” the report, “Ann Arbor’s Sustainable Energy Utility: A Publicly Owned, Locally Powered, Reliable, Clean, Fast and Equitable Power Model For Our Community,” said.

In the course of reviewing pathways to achieve A2ZERO, especially within the power sector, an idea emerged of creating a SEU, a non-profit, publicly owned, municipal utility that focuses on providing affordable, 100% renewable, reliable, and locally sourced power.

“A SEU is not your parents’ — or your grandparents’ — kind of utility. It is a model that uses modern energy technology to give residents reliable, truly local, clean, equitable, and nearly always cheaper energy — quickly,” the report, which was released by the City of Ann Arbor in October 2021, said.

The idea for an Ann Arbor SEU emerged after an Ann Arbor Energy Commission meeting in early spring of 2021. In that meeting, the Commission was presented with details about laws that constrain Ann Arbor’s utility options, different forms of community energy procurement, and what possibilities might exist to reach Ann Arbor’s goals given those restrictions. While neither speaker explicitly spoke about a SEU, the ideas presented in that meeting spurred research into the creation of a municipal utility built entirely on clean, local, distributed energy technologies.

Shortly after the Energy Commission meeting, staff in the Ann Arbor Office of Sustainability and Innovations (OSI) reached out to two locations where SEUs are up and running: Delaware and the District of Columbia. “While these SEUs operate in areas with more flexible legal frameworks than Michigan, these conversations provided valuable information into how existing SEUs operate, their strengths, and opportunities for enhancement,” the report noted.

Following these conversations, OSI created a conceptual model of a Michigan-specific SEU and reached out to five experts in various areas of energy-related law, policy, and technology to gather their professional insights into the viability of the model. All conveyed excitement at the prospect of an Ann Arbor specific SEU, and a willingness to engage with the city to more fully explore the concept.

What Is An SEU?

A SEU is a publicly owned municipal utility. What’s different, however, is that a SEU does not own or utilize large-scale poles and wires.

“Instead, a SEU generates power through local renewable energy installations such as SEU installed solar/battery systems that provide power to your home or business, and microgrids or geothermal systems that allow you and your neighbors to share power generated in your neighborhood,” the report said.

“In addition to providing power from local renewable energy, the SEU could provide services such as more holistic energy waste reduction (efficiency) upgrades, support with beneficial electrification, and billing and payment options that DTE doesn’t offer (e.g. on-bill financing).” DTE is the IOU that currently serves Ann Arbor.

A SEU would supplement DTE, allowing residents and business owners more than one choice about where they get their energy. “This approach allows us to immediately reduce climate pollution by focusing on new, local, clean energy installations, improve our resilience during major grid events, improve the comfort, safety, and long-term value of our homes and businesses, help lower-income residents make their bills more affordable, and invest in our local economy,” the report said.

Because the city would not be procuring existing infrastructure from DTE, “we will be able to move much more quickly into action than would otherwise be possible — putting generation into place to advance our 2030 goal,” the report noted.

Services That A SEU Could Provide

Because a SEU is a municipally owned utility, it can offer many things not currently available to Ann Arbor residents, the report noted.

In designing a model SEU, staff envisioned it helping residents and businesses reduce energy usage, utilize renewable energy, electrify buildings and transportation systems, improve resilience, save money, and improve indoor comfort, health, and safety.

More specifically, staff envisioned a SEU that offered some or all of the things that residents have said they want:

“Regardless of where we begin, one thing is clear: a SEU must provide electricity,” the report said.

“Because of this, we propose starting the SEU immediately by providing four core services: 1) creating solar and storage systems to boost resilience at single locations; 2) piloting microgrids in target neighborhoods; 3) creating robust energy waste reduction offerings; and 4) setting up on-bill financing offerings.”

The report is available here.

APPA Offers Municipalization Resources

The American Public Power Association offers resources related to municipalization on its website. Click here for details on those resources.

Salt River Project Issues All-Source RFP For New Power Generation Resources

October 29, 2021

by Paul Ciampoli
APPA News Director
October 29, 2021

Arizona public power utility Salt River Project (SRP) has issued a request for proposals (RFP) for additional power generation resources of all types to meet summer peak capacity needs. 

SRP on Oct. 29 said that it continues to experience significant increases in customer electricity demand as Phoenix and Maricopa County lead the nation in population growth and economic development. 

SRP is seeking competitive proposals for up to 400 megawatts (MW) of peak generating capacity by summer 2024, and another 600 MW by summer 2026, for a total up to 1,000 MW by summer of 2026. 

Resources selected through this all-source RFP process will also support SRP’s 2035 Sustainability Goals and SRP’s goal to add 2,025MW of new utility-scale solar by 2025. 

The requested generation is needed in addition to SRP’s recently announced contracts for new renewable resources and plans to expand its Coolidge Generating Station.  

SRP said it will consider all technologies and currently serves customer energy needs from generation produced with a diverse fuel mix including nuclear, coal, hydroelectric, natural gas, battery storage and renewable resources including solar, wind, biomass, and geothermal. 

This summer SRP announced agreements for four new utility-scale solar plants, as well as the commissioning of Arizona’s largest standalone battery storage system which began operating on SRP’s system this September. 

Respondents to the all-source RFP can view the details and register here: srp.net/all-source-rfp. Registration enables access to all RFP-related documents.

SRP is seeking bid proposals by Jan. 11, 2022 and anticipates short list selection in April 2022. 

APPA-Supported Loan Interest Payment Provision Included In Bill Approved By Committee

October 29, 2021

by APPA News
October 29, 2021

The House Committee on Transportation and Infrastructure on Oct. 27 approved legislation that includes a provision that would require the Federal Emergency Management Agency (FEMA) to reimburse local governments for interest expenses for loans related to disaster relief.

It would also provide that qualifying interest includes interest incurred in the five years preceding this bill’s enactment.

The committee approved by a vote of 63 to 2 the Resilient Assistance for Mitigation for Environmentally Resilient Infrastructure and Construction by Americans Act, or Resilient AMERICA Act (H.R. 5689).

During markup of the bill, the committee adopted as an amendment to the bill the provisions of the FEMA Loan Interest Payment Relief Act (H.R. 2669) introduced by Rep. Neal Dunn (R-FL) in April.

The interest payment provision is supported by the American Public Power Association (APPA).

In a Feb. 4, 2021, letter to Dunn and bill cosponsor Rep. Darren Sotto (D-FL), APPA President and CEO Joy Ditto noted that every year, public power utilities experience some degree of infrastructure damage due to events, such as ice storms, tornadoes, floods, hurricanes, and earthquakes.

If this damage is severe enough to be declared a disaster by the President of the United States, recovery costs are eligible for reimbursement through grants from FEMA.

“These grants can amount to millions of dollars and are critical to the ability of public power utilities to recover from disasters,” wrote Ditto. “However, years can pass between a public power utility making a claim for a public assistance grant and FEMA providing that assistance. In the meantime, the utility must often borrow funds — and pay interest on that debt — to cover the costs.” 

 The FEMA Loan Interest Payment Relief Act would require FEMA “to pay at least a portion of those interest expenses. This would reduce the cost of having to borrow to cover costs that will eventually be recovered from FEMA. It would also create a financial incentive for FEMA to resolve more quickly — and make payment on — public assistance requests,” Ditto noted.

The Resilient AMERICA Act, which now heads to the House floor, will also:

Committee Also Approves FEMA Caseworker Accountability Act

In addition, the committee also approved by voice vote H.R.5343, the FEMA Caseworker Accountability Act.

The bill, which was introduced on Sept. 22, 2021 by Rep. Tom Rice (R-SC), would direct FEMA to report to Congress on case management personnel turnover.

Specifically, FEMA must report on the turnover rate for FEMA case management personnel, the average and median length of employment for such personnel, the steps that FEMA is taking or plans to take to lower the turnover rate, and other specified points.

During Wednesday’s markup, the committee adopted an amendment by Rep. Scott Perry (R-PA) to instead require the Government Accountability Office to complete the report, rather than FEMA.