New York PSC Approves Second Construction Phase Of NYPA Transmission Project
September 12, 2021
by Paul Ciampoli
APPA News Director
September 12, 2021
The New York State Public Service Commission (PSC) on Sept. 9 approved the second construction phase of the 86-mile, $484 million Smart Path transmission project in St. Lawrence County. The New York Power Authority (NYPA) owned Smart Path project was granted authorization in November 2019 and is being built in two phases.
The previously approved first construction phase, now underway, includes replacing 78 miles of the existing wooden structures and replacing them with steel monopoles. Additionally, the distance between poles is extended, further minimizing the use of space on the right-of-way and greatly reducing the number of poles on the landscape.
The rebuilt lines will be taller but stronger, less susceptible to failure and able to better withstand inclement weather, such as ice storms, the PSC noted. Also, the reduced size of the project means less of an impact on agriculture and wetlands.
The just-approved second construction phase will involve rebuilding six miles of existing steel structures coming out of the Robert-Moses Switchyard in the Town of Massena, N.Y., and rebuilding 0.4 miles of steel structures into the Adirondack substation with steel monopoles. In its entirety, the Smart Path Reliability Project traverses through 12 towns.
During construction, electrical customers will not have their service disrupted and both phases of the rebuilt transmission lines are expected to be completed in 2023, the PSC said.
The Smart Path project is needed to rebuild facilities that are well past their serviceable lifetime to make them more resilient and reduce maintenance costs.
The rebuilt transmission lines are needed to deliver electricity, including carbon-free hydroelectric power, from Northern New York to the rest of the state, to re-energize the bulk electric system as a component of the New York Independent System Operator’s system restoration plan in the event of a future widespread outage and to provide increased capacity for future expansion to meet New York’s clean energy targets.
In addition to the second phase of the Smart Path project, the Commission approved New York Transco’s Rock Tavern to Sugarloaf project. The project, valued at approximately $100 million, includes replacement of an existing 115-kV 12-mile overhead transmission line and associated transmission towers on an existing right-of-way in the Towns of New Windsor, Hamptonburgh, Blooming Grove, and Chester in Orange County as well as station upgrades.
This project is needed in connection with a larger transmission line upgrade known as the New York Energy Solution owned by New York Transco. The New York Energy Solution project is designed to provide additional transmission capacity to move power from upstate to downstate.
The Rock Tavern to Sugarloaf project is scheduled to be operational by December 2023.
Longtime Public Power Advocate And Attorney Robert Lynch Passes Away
September 11, 2021
by Paul Ciampoli
APPA News Director
September 11, 2021
Robert S. Lynch, an attorney who worked on water, electricity, and environmental law issues and served in several roles for the American Public Power Association (APPA) including APPA’s Advisory Committee, passed away on Aug. 29, 2021 at the age of 82.
“He often described himself as a simple country lawyer, but in reality, he was a brilliant attorney and skillful litigator, credited with helping to shape Western water and hydropower policies for much of the last four decades,” an obituary for Lynch notes.
“I adored Bob — I always knew where his heart lay, and that was with public power and the public power community, on the top of the list after his dear family and his country,” said Joy Ditto, President and CEO of APPA. “He was also savvy politically and understood how to navigate that world to the benefit of public power. I will miss these and many of the other things he brought to our community – I will miss him, period.”
“I had the opportunity to visit with Bob a few days before his passing,” said Leslie James, Executive Director at the Colorado River Energy Distributors Association. “Ironically, it was on National Hydropower Day. We (mostly he!) talked about his family growing up in the home we were in, the changes both the home and the family went through, and how, within just over a week, he and Anne were going to be grandparents again, to a baby girl. And, of course, we talked about litigation and politics.”
James said that in a way, “the conversation was a microcosm of my relationship with Bob over the past 35 years. At various times, he was a mentor, a devil’s advocate, a friend, and a co-conspirator. At all times, he was the proudest husband and father I’ve ever seen (absent my own), and someone you could count on in a time of need. As I left his home, my mind went immediately to the old song title ‘I Did It My Way.’ And he did. We miss you, Bob.”
“Spending time with Bob Lynch was always an adventure,” said George Caan, Executive Director for the Washington Public Utility Districts Association. “It could be taking a trip down the Colorado River, a trip through the history of water law or just listening to him speaking so proudly of his family. Politics was never far from Bob’s adventures and it was always made more interesting by being introduced to a fine wine, scotch, or sometimes both. Bob was an extraordinary individual. His accomplishments are eternal and so was his friendship. I will miss him dearly,” Caan said.
Lynch devoted most of his practice to water, electricity, and environmental law issues, a biography on his law firm’s website notes. He litigated and consulted on issues concerning federal and state water, power, environmental and public land issues and federal and state legislation and regulations. His focus included issues related to federal and state electric deregulation, federal and state water law and policy, and environmental issues involving, among others, the National Environmental Policy Act, the Endangered Species Act, and the Clean Water Act.
Lynch worked on such projects as the Trans-Alaska Pipeline, Cross-Florida Barge Canal and the Central Arizona Project and consulted on issues related to Glen Canyon and Hoover Dams, federal hydropower issues and related water and water rights issues.
He was appointed in June 1996 by the Speaker of the U.S. House of Representatives to the seven-member Federal Water Rights Task Force, a federal advisory committee.
His law practice included representation of clients in the Arizona Legislature and before Congress. His practice also included representation of clients before the Federal Energy Regulatory Commission and the Arizona Corporation Commission and in state and federal courts.
His litigation experience included matters before the U.S. Supreme Court, nine of the 13 federal appellate courts, three state supreme courts and several lower courts.
Lynch also served on the Advisory Committee of APPA and on the Board of Directors of its political action committee, PowerPAC (Chairman 2000-2007). He was a 2003 recipient of APPA’s Kramer-Preston Personal Service Award.
He also served on the North American Electric Reliability Corporation’s Legal Advisory Committee, the Water and Property Rights (Chair) and Energy Issues Committees of the National Water Resources Association, as well as on task forces on the Endangered Species Act of both national associations.
In addition, Lynch served as President (1991-1996) and Chairman of the Board (1996-2000) of the Central Arizona Project Association.
Lynch held Bachelor of Arts (1961) and Bachelor of Laws (1964) degrees from the University of Arizona and a Master of Laws degree with a specialization in natural resources law from George Washington University (1972). He belonged to the Arizona, Maricopa County and Federal Bar Associations, and is a member of the District of Columbia Bar.
Lynch also testified before congressional and state legislative committees and in numerous federal agency hearings. Lynch presented papers to conferences of APPA, the Engineering Foundation, the Federal Bar Association, the National Commission on Water Quality, the Western Systems Coordinating Council, the National Water Resources Association, and the Governor’s Commission on Arizona Environment.
A funeral Mass for Lynch will be held on Thursday, September 30, 2021 at 2:30 p.m. at Saint Francis Xavier Catholic Church, 4715 N. Central Avenue, Phoenix, Ariz.
Lynch is survived by his wife of 52 years, Anne, and his three daughters, Betsy, Caroline and Stephanie.
EIM Governing Body OKs Plan To Provide Direct Role For Utilities In Real-Time Market
September 11, 2021
by Paul Ciampoli
APPA News Director
September 11, 2021
The Western Energy Imbalance Market (EIM) Governing Body on Sept. 8 unanimously approved the creation of a new category that will allow the California Independent System Operator (CAISO) to work with multiple scheduling coordinators within a single EIM entity balancing authority area (BAA) to schedule and settle non-participating loads and resources.
Under current Western EIM rules, only the participating EIM entity can directly settle load imbalance energy with CAISO. The proposed new “EIM sub-entity” category will permit CAISO to work directly with eligible utilities within the EIM entity’s balancing authority area.
Settlements are the financial outcomes of market activities that result in payments or charges to scheduling coordinators.
In addition, the Western EIM Governing Body unanimously recommended changes to the corporate bylaws, EIM governance charter, and the guidance document to reflect the recently adopted shared-governance framework.
The Western EIM Governing Body also suggested the CAISO Board of Governors consider adding text to the governance documents that clarifies the role of the two bodies when creating an advisory committee that will consider joint authority and/or governance matters.
If the board agrees the language is necessary, the ISO will be required to complete a stakeholder review process to develop a proposal for the Board to review.
The Board of Governors will consider the recommended changes to the governance documents at its meeting on Sept. 22.
Operated by CAISO, the Western EIM footprint currently includes portions of Arizona, California, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington, and Wyoming, and extends to the border with Canada.
By 2023, 21 active Western EIM participants will represent over 78% of the load within the Western Electricity Coordinating Council.
A number of public power utilities earlier this year began participating in the EIM. The Turlock Irrigation District (TID) and the Balancing Area of Northern California (BANC) Phase 2, comprised of the Modesto Irrigation District (MID), the City of Redding, the City of Roseville, and the Western Area Power Administration (WAPA) Sierra Nevada Region, began participating in the West’s first real-time energy market on March 25.
Meanwhile, the Bonneville Power Administration is evaluating whether to join the EIM, with a planned go-live date of March 2, 2022.
California’s Clean Power Alliance, EDF Renewables Sign PPA For Solar Plus Storage Project
September 11, 2021
by Paul Ciampoli
APPA News Director
September 11, 2021
EDF Renewables North America and California’s Clean Power Alliance (CPA) on Sept. 2 announced the signing of a 15-year power purchase agreement (PPA) for the Desert Quartzite Solar-plus-Storage project.
The project, consisting of a 300-megawatt solar project coupled with a 600 MWh battery energy storage system (BESS), is expected to begin delivery of clean electricity to CPA’s customers throughout Los Angeles and Ventura Counties in February 2024. The CPA Board of Directors approved the long-term contract during its September meeting.
The Desert Quartzite Solar-plus-Storage project is located on unincorporated land in Riverside County, Calif., administered by the Federal Bureau of Land Management (BLM). The BLM designated this area as a Solar Energy Zone (SEZ) and Development Focus Area, land set aside for utility-scale renewable energy development. The project will utilize horizontal single-axis tracking solar photovoltaic (PV) technology.
EDF Renewables is one of the largest renewable energy developers in North America.
Founded in 2017, CPA is the locally operated electricity provider for 30 cities across Los Angeles County and Ventura County, as well as the unincorporated areas of both counties.
CPA serves approximately three million customers via one million customer accounts and is a member of the California Community Choice Association, which represents the interests of California’s community choice electricity providers in the legislature and at state regulatory agencies.
Tesla Applies To Be A Retail Electric Provider In Texas
September 11, 2021
by Peter Maloney
APPA News
September 11, 2021
Tesla could begin operating as a retail electricity provider (REP) in Texas as soon as Nov. 15 under a recently filed application with the Public Utility Commission of Texas (PUCT).
The staff of the Public Utility Commission of Texas on Aug. 31 said the Aug. 16 application of Tesla Energy Ventures LLC for a retail electric provider certificate was sufficient and set a procedural calendar.
Under that schedule, the deadline to intervene, file intervenor comments, or request a hearing is Sept. 30. The schedule also sets Oct. 15 as the deadline for commission staff to grant final approval or to request a hearing and sets Nov. 15 as the deadline to approve or deny the application.
The filing specifies that Tesla Energy Ventures is seeking REP certification to operate in the Electric Reliability Council of Texas (ERCOT) area and not all of Texas. The filing also noted the applicant intends to use shareholder equity and letters of credit to meet the access to capital requirements for retail electric providers.
Tesla Energy Ventures is a whole owned subsidiary of Tesla Energy Operations, which is a wholly owned subsidiary of Tesla Inc.
In the application, Tesla said its customer acquisition strategy would “target its existing customers that own Tesla products and market the retail offer to customers through the mobile application and Tesla website.” The company also said it plans to use its existing Tesla Energy Customer Support organization, which already provides support to owners of Tesla’s residential solar and battery systems, to provide support and guidance to customers in its customer acquisition efforts.
Scheduling of energy delivery will be managed by ENGIE Energy Marketing NA, while energy forecasting would be managed by Tesla Energy Ventures, which said it plans to “leverage forecasting tools, capabilities, and knowledge already in place to support its utility-scale battery storage system in ERCOT as well as its retail offerings and virtual power plant programs operating today in places ranging from Australia, California, Vermont, Germany, and the United Kingdom.”
Tesla is building a “Gigafactory” outside of Austin, Texas, that would manufacture and supply electric vehicles to the eastern United States and is expected to be completed later this year. And, through a subsidiary, Gambit Energy Storage, Tesla is also building a 100 megawatt (MW) energy storage facility in Angleton, Texas, outside of Houston, according to multiple media reports. The project was originally developed by Plus Power.
Tesla has been selling its megapack energy storage technology to utilities, saying they “enable the world’s largest energy projects” with 1 gigawatt hour (GWh) of energy capacity.
Overheating Incident Takes 300-MW California Storage Facility Out Of Service
September 11, 2021
by Paul Ciampoli
APPA News Director
September 11, 2021
Vistra on Sept. 7 said that it has begun a preliminary assessment of Phase I of its Moss Landing energy storage facility in California following an overheating incident that impacted a limited number of battery modules and occurred on the evening of Sept. 4.
Phase I of the Moss Landing facility is a 300-megawat (MW)/1,200-megawatt hour (MWh) system and is out of service, while Phase II of the facility (100 MW/400-MWh), which is located in a separate stand-alone building, remains operational.
In the wake of the overheating incident, teams from Vistra, battery manufacturer LG Energy Solution, engineering and construction firm Fluence, and other external experts were conducting initial walkthroughs of the building in order to gather information and begin their investigation into the root cause of the issue. The North County Fire Protection District of Monterey County is assisting with the investigation.
The teams are in the early stages of this investigation and expect that it will take some time to fully assess the extent of the damage before developing a plan to safely repair and return the battery system to operation. “We are working with our partners to ensure all necessary safety precautions are in place to minimize any risk during this process,” Vistra said.
On Sept. 5, Vistra said that there are multiple layers of safety integrated into the battery facility and the risk mitigation and safety systems worked as designed, detecting these modules were operating at a temperature above operational standards and triggering targeted sprinkler systems aimed at the affected modules. As a result, the overheating was controlled and contained without the need for outside assistance.
“However, consistent with Vistra’s incident response planning and out of an abundance of caution, the Moss Landing team did ask the local fire department, North County Fire Protection District of Monterey County, to respond to the site. Importantly, there were no injuries to the facilities’ workers as a result of the incident and the situation is contained to the facility with no harm to the community,” the company said.
The 100-MW/400-MWh Phase II expansion is operating under a 10-year resource adequacy agreement with investor-owned Pacific Gas and Electric Company (PG&E). The Phase I project has a similar 20-year resource adequacy agreement with PG&E.
The Phase II expansion project was completed in July 2021.
Vistra is an integrated retail electricity and power generation company based in Irving, Texas. According to the company, it is the largest competitive power generator in the U.S. with a capacity of approximately 39,000 MW powered by a portfolio that includes natural gas, nuclear, solar, and battery energy storage facilities.
President Biden Announces His Intent To Nominate D.C. PSC Chairman To FERC Seat
September 10, 2021
by Paul Ciampoli
APPA News Director
September 10, 2021
President Joe Biden on Sept. 9 announced his intent to nominate Willie Phillips, Jr. as a Commissioner of the Federal Energy Regulatory Commission (FERC). Phillips, a Democrat, is currently Chairman of the Public Service Commission (PSC) of the District of Columbia.
Phillips’ nomination will require confirmation by the Senate and, if confirmed, Phillips would return FERC to its full complement of five commissioners after the departure of Commissioner Neil Chatterjee on August 30, 2021. He would also give Democrats a 3-2 majority on the Commission.
Before joining the D.C. PSC, Phillips served as Assistant General Counsel for the North American Electric Reliability Corporation, a not-for-profit international regulatory authority, in Washington, D.C. He also worked for a Washington, D.C.-based law firm where he advised clients on regulatory compliance and policy matters.
Phillips is an active member of the National Association of Regulatory Utility Commissioners (NARUC) where he currently serves on the NARUC Board of Directors as Chair of the Select Committee on Regulatory and Industry Diversity.
He has a Juris Doctor from Howard University School of Law and a Bachelor of Science from the University of Montevallo. He is also a member of the District of Columbia Bar and Alabama State Bar Association.
Vermont Public Power Supply Authority Solar Array Located At Former Auto Salvage Yard
September 9, 2021
by Paul Ciampoli
APPA News Director
September 9, 2021
Vermont Public Power Supply Authority (VPPSA) and Encore Renewable Energy on Sept. 9 announced the commissioning of a new 2.1-megawatt (MW) community solar array located at a former auto salvage yard.
The project was developed as part of a partnership between Encore Renewable Energy and the VPPSA to develop, finance, and construct approximately 10 MW of solar capacity on behalf of VPPSA’s municipal utility members.
The project is expected to produce approximately 3,200,000 kilowatt hours per year. “The landowners will remain on the land that has been in their family for generations, as the operational solar project affords both an annual lease payment as well as the means to complete the environmental remediation required to address the regulatory approval for operation of a solar array on the former auto salvage facility which served the local community for decades,” VPPSA said.
This is the third solar array to be energized and the second project under a VPPSA and Encore Renewable Energy public-private partnership.
All generation from Salvage Yard solar will be sold to Vermont electric utilities that are not already 100% renewable.
VPPSA and Encore have arranged to build a 10 MW solar portfolio together with projects sited across multiple VPPSA member utility territories. Under the partnership, Encore performs all design, development, financing, and construction of solar projects, while VPPSA manages the resulting electric generation and maximizes its value for its member utilities’ communities.
The ground beneath the solar array is being planted with pollinator-friendly ground cover to support vital habitat for bees, butterflies, hummingbirds, moths, and other insects critical to future food security. In addition, pollinator friendly ground cover increases carbon sequestration, improves soil quality, reduces stormwater runoff, and channels storm water back into underlying aquifers, while addressing the social importance of supporting healthy food systems.
VPPSA provides municipal electric utility members with a broad spectrum of services and solutions, including regulatory assistance, financial planning, and power supply.
VPPSA members include Barton Village, Village of Enosburg Falls, Hardwick Electric Department, Village of Jacksonville Electric Company, Village of Johnson Electric Department, Ludlow Electric Light Department, Lyndonville Electric Department, Morrisville Water & Light Department, Town of Northfield Electric Department, Village of Orleans, and Swanton Village Electric Department.
Ann Arbor, Mich., City Council Approves Resolution On Public Power Feasibility Study
September 9, 2021
by Paul Ciampoli
APPA News Director
September 9, 2021
The Ann Arbor, Mich., City Council on Sept. 7 approved a resolution that asks the Ann Arbor Energy Commission to provide a recommendation on whether or not the Commission believes the city should undertake a feasibility study to understand options related to creating a municipal utility, including traditional and non-traditional models.
Prior to the council’s meeting, Ann Arbor, Mich., Council Member Elizabeth Nelson announced plans to introduce a resolution at the meeting asking the Ann Arbor Energy Commission to consider and vote on the question of a public power feasibility study for the city. She wanted the Energy Commission to vote on the matter at the Energy Commission’s Sept. 14 meeting.
At the city council meeting, Council Member Travis Radina noted that the Energy Commission is scheduled next month to hear from representatives of Boulder, Colo., and Winter Park, Fla., about their experiences related to municipalization.
In November 2020, Boulder voters declined to pursue municipalization for the city. Winter Park formed a public power utility in 2005.
Radina therefore put forth an alternative proposal that provided the Energy Commission with additional time to report back to the council.
But Nelson objected to the notion that her resolution “is somehow overstepping and dismissing the value” of input from the Energy Commission, noting that she has had many conversations with members of the Energy Commission who shared with her the length of time that this has been discussed.
“This is not a big step that I’m asking for,” she said. “I have crafted this resolution very carefully to include the Energy Commission. I would argue that if our community felt very strongly about this, if our community felt a compelling need,” the council could act “without first asking for input from the Energy Commission. My resolution is specifically asking for their input, with the knowledge that they have been discussing this for months.”
Nelson said that “I think that there is a reason to act sooner rather than later, and I know that members of our community are looking ahead to the possibility of this feasibility study informing a potential ballot question for next year and so three months might matter. Pushing this down the road three months – I don’t see any reason. I feel like the Energy Commission could probably give us an answer given that they’ve been talking about this since February.”
The council ultimately voted to ask the Energy Commission to provide a recommendation no later than December 31, 2021 as to whether or not the Commission believes the city should undertake a feasibility study to understand options related to creating a municipal utility, including traditional and non-traditional models.
The American Public Power Association offers a wide range of resources and information related to municipalization on its website.
Fitch Revises Outlook On LIPA To Positive, Cites Improved Leverage Ratio
September 8, 2021
by Paul Ciampoli
APPA News Director
September 8, 2021
Fitch Ratings recently revised its outlook on the Long Island Power Authority (LIPA) from Stable to Positive, with the rating agency saying the Positive Outlook reflects LIPA’s improved leverage ratio and Fitch’s expectation that the deleveraging trend that began in 2015 will continue through 2025.
“Debt has been a stakeholder concern since LIPA acquired the investor-owned Long Island Lighting Company in 1998,” said Tom Falcone, LIPA’s Chief Executive Officer. “The Board adopted a plan in 2015 to reduce LIPA’s leverage and the cost of debt. That plan has saved customers over $500 million and achieved four upgrades of LIPA’s bond ratings,” he said.
“This new positive outlook from Fitch Ratings — indicating another upgrade within the next year or two — shows we continue to be on the right path on behalf of our customers,” Falcone said.
Falcone discussed the factors behind rating agencies giving LIPA a series of rating upgrades in recent years in an episode of the American Public Power Association’s Public Power Now podcast.
Rating agencies have not only recognized LIPA’s success at deleveraging its balance sheet, but also the fact that the public power utility has seen significant improvement in the areas of customer satisfaction and reliability, Falcone said in an interview with APPA in 2000.
Fitch Cites Leverage Improvement
Fitch said that despite the challenges related to the coronavirus pandemic and Tropical Storm Isaias that hit Long Island in August 2020, leverage, as measured by net adjusted debt-to-adjusted funds available for debt service (FADS), improved to 8.4x at year end 2020 from 8.8x the two years prior. The improvement was attributable, in part, to LIPA’s strategy of budgeting to achieve higher fixed obligation coverage, the rating agency said.
“Going forward, leverage ratios are expected to trend below 8.0x in 2023, consistent with a higher rating, as performance continues benefitting from LIPA’s revenue-decoupling mechanism (RDM) as well as modest but consistent rate increases designed to achieve higher fixed charge coverage,” Fitch said.
“LIPA’s very strong service area, more disciplined approach to rate setting and authorized RDM should sustain its very strong revenue defensibility and overall performance even through the periods of stress, further supporting its financial profile,” the rating agency said.
Fitch also said that anticipated benefits that could accrue as a result of renegotiating LIPA’s operating services agreement with LIPA’s system operator PSEG Long Island (PSEGLI) are factored in the rating. The changes were triggered by PSEGLI’s poor response to Tropical Storm Isaias and follow a number of investigations, LIPA’s notice to terminate the contract and an analysis of alternate options for managing its assets, Fitch noted.
LIPA’s estimated costs incurred for Tropical Storm Isaias were $307 million, but the net financial impact of the storm will be limited as a result of Federal Emergency Management Agency (FEMA) reimbursements and other offsetting responses.
Fitch Rates LIPA Electric System Revenue Bonds “A”
Fitch also said that it assigned an “A” rating to the following LIPA bonds:
- Approximately $368 million electric system general revenue bonds (tax-exempt fixed rate) series 2021A;
- Approximately $175 million electric system general revenue bonds (mandatory tender, tax-exempt) series 2021B;
- Approximately $195 million electric system general revenue bonds (federally taxable) series 2021C
Proceeds from the series 2021A bonds will be used to fund system improvements, refund existing debt and pay the costs of issuance. Proceeds from the series 2021B and C bonds will be used to fund system improvements and to pay the costs of issuance. All of the bonds will be sold with a fixed interest rate. The series 2021A and B bonds will amortize through 2042 and 2051, respectively. The series 2021C bonds will mature on March 1, 2023.
In addition, Fitch affirmed the following LIPA ratings at “A:” Issuer Default Rating and approximately $3.9 billion senior-lien electric system revenue and refunding bonds.