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FERC affirms and clarifies final rule that revised regulations implementing PURPA

November 23, 2020

by Paul Ciampoli
APPA News Director
November 23, 2020

The Federal Energy Regulatory Commission on Nov. 19 affirmed a final rule it approved this summer that revised its regulations implementing the Public Utility Regulatory Policies Act (PURPA).

In its action at its monthly open meeting, FERC dismissed or disagreed with most arguments raised on rehearing but offered clarification of the final rule itself.

Order No. 872 granted flexibility to state regulatory authorities in establishing avoided cost rates for qualifying facilities’ (QF) sales inside and outside of the organized electric markets.  The July 16 final rule also gave states the ability to require that energy rates, but not capacity rates, vary during the term of a QF contract. The flexibility for state regulatory authorities also extends to public power and electric cooperative regulators.

The final rule also modified the “one-mile rule” for determining whether generation facilities are considered to be at the same site for purposes of determining whether a facility meets the 80 MW limit on qualifying small power production facilities.

It also reduced the rebuttable presumption for nondiscriminatory access to power markets, from 20 megawatts to 5 megawatts, for small power production, but not cogeneration, facilities.  This change will make it easier for electric utilities (including public power utilities) in certain markets to seek relief from PURPA’s mandatory purchase requirement for smaller QFs under PURPA section 210(m).

For a QF to establish a legally enforceable obligation for an electric utility to purchase the QF’s output, the final rule required that the QF must demonstrate commercial viability and financial commitment to build under objective and reasonable state-determined criteria.

FERC’s Nov. 19 order provided clarifications related to:

APPA, LPPC supported FERC plans to reform PURPA

The final rule largely adopted proposals in a September 2019 FERC Notice of Proposed Rulemaking (NOPR).

In response to the NOPR, the American Public Power Association and the Large Public Power Council in December said that the development of competitive power markets and the dramatic growth of a renewable power sector now largely independent of the boost once provided by PURPA justify significant changes in PURPA regulations.

Berkeley Lab report finds three policies most effective at solar PV adoption

November 20, 2020

by Peter Maloney
APPA News
November 20, 2020

A new study by the Lawrence Berkeley National Laboratory identified three policy and business models that boost “adoption equity” for solar power installations.

The authors of the study define adoption equity as the degree to which adopter incomes reflect the incomes of the general population.

“I think most people are aware that the benefits of solar energy have not been equitably distributed with respect to income,” Eric O’Shaughnessy, a Berkeley Lab affiliate researcher and the study’s lead author, said in a statement. The “key takeaway of our study is: It doesn’t have to be that way – especially now that solar is getting cheaper.”

The study, “The impact of policies and business models on income equity in rooftop solar adoption,” published in Nature Energy earlier this month, analyzed five policies and programs that have been used to spur solar photovoltaic (PV) adoption:

The report found that the first three types of interventions – targeted incentives, leasing, and PACE – are effective at increasing adoption equity.

“The results for those three interventions are pretty strong,” O’Shaughnessy said. “And the research also provides evidence that these interventions are leading to both deepening, or expanding in existing markets, and broadening, or moving into new markets – low-income areas where there traditionally was not solar.”

The authors argued that when solar installations enter a new market or neighborhood, it can have a spillover effect. “If a system is installed in a neighborhood that had no solar before, then the neighbors are going to see that system, and that makes them a little bit more likely to adopt themselves,” O’Shaughnessy said. “There’s lots of research on these peer effects. So, if the market broadens and solar deployment moves into new markets, the potential indirect effects are more significant than if the market only deepens by installing systems on lower-income households in existing markets.”

In addition, as the solar power market grows and costs continue to decline, the decision to install a system is driven less by environmental concerns and more by financial benefits. “Surveys suggest that roughly half of people who adopt nowadays are really doing it primarily for economic reasons,” O’Shaughnessy said.

And, for low- and middle-income households, financial benefits can make more of a difference. “Many low- and moderate-income households have a large ‘energy burden,’ which is the fraction of a household’s income that gets spent on energy and utility expenses,” Galen Barbose, a Berkeley Lab research scientist and one of the authors of the report, said in a statement. “There’s growing interest now in solar PV as being another arrow in that quiver of helping to reduce the energy burden of low-income households.”

The authors also noted that low- and middle-income housing accounts for 42% of PV-viable rooftop space in the United States.

In the study, the authors tapped household-level PV adopter income data covering more than 70% of the U.S. residential PV market. The study covered the period from 2010 to 2018 and included data on more than 1 million residential rooftop PV systems installed on single-family homes in 18 states. The researchers compared modeled household-level income estimates for PV adopters with area median household incomes, based on U.S. Census data.

California PUC opens proceeding to address extreme weather events

November 20, 2020

by Paul Ciampoli
APPA News Director
November 20, 2020

The California Public Utilities Commission (CPUC) on Nov. 19 launched a rulemaking that it said will address how to increase energy supply and decrease demand during peak hours if a heat storm occurs in the summer of 2021 so the state does not experience a repeat of rolling power outages.

Through the proceeding, the CPUC will implement temporary changes to existing processes, programs, and rules for demand response, and other initiatives, it said.

The CPUC will focus on near-term actions that can be adopted by April 2021 and that the utilities can implement before the summer of 2021.

The proceeding will consider multiple options, including, but not limited to:

The CPUC also said it will address whether particular measures may extend beyond calendar year 2021. Moreover, the CPUC will consider whether specific measures would be triggered only in emergency conditions to ensure continued access to utility services.

In mid-August 2020, the western U.S. experienced an unprecedented, prolonged heat storm, which led to a variety of circumstances that ultimately required CAISO to initiate rotating power outages to prevent sustained, wide-spread service interruptions.

On October 6, 2020, the California Energy Commission, CAISO, and the CPUC issued a preliminary report on the causes of the August rotating outages, which outlined short-term and longer-term actions to mitigate electricity shortages and ensure delivery of clean, reliable, and affordable energy.

The proposal is available here.

New Jersey BPU authorizes PJM to solicit potential offshore wind transmission solutions

November 19, 2020

by Paul Ciampoli
APPA News Director
November 19, 2020

The New Jersey Board of Public Utilities (NJBPU) on Nov. 18 authorized the PJM Interconnection to solicit potential offshore wind transmission solutions from qualified developers on behalf of NJBPU.

The move makes New Jersey the first state to engage in a competitive solicitation process managed by PJM for such critical planning, the NJBPU said in a news release.

In late 2019, New Jersey Gov. Phil Murphy signed an executive order raising New Jersey’s offshore wind goal from 3,500 megawatts of offshore wind-generated electricity by 2030 to 7,500 MW by 2035. The executive order will deliver renewable energy generation needed to help meet the state’s goals of 50 percent renewable energy by 2030.

The NJBPU formally requested the inclusion of this state public policy into the transmission planning process of PJM through a competitive solicitation process in what is known as the “State Agreement Approach.”

“The State Agreement Approach was written broadly to accommodate the breadth and diversity of policies that different states might pursue,” said Manu Asthana, President and CEO of PJM. “It is an existing tool that states can use to leverage PJM’s regional transmission planning expertise. In this case, we are pleased to be able to help New Jersey advance its offshore wind objectives.”

The NJBPU is asking that PJM integrate the state’s offshore wind transmission policy goals into the grid operator’s transmission planning process through the State Agreement Approach established by the Federal Energy Regulatory Commission’s Order No. 1000, which aimed to open the building of new transmission lines to competition.

By making this formal request, the NJBPU said it can utilize the State Agreement Approach to explore options for an optimal long-term solution for offshore wind transmission that otherwise may not have been available at this stage of development.

Through the solicitation process, the NJBPU will examine details on a wide array of ready-to-build transmission options, including key factors such as cost, siting, environmental impacts, and the timeframe for construction, it noted.

“The process will also allow NJBPU to determine how a coordinated approach can lead to more cost-effective, efficient transmission solutions that minimize the environmental impacts of bringing wind energy ashore,” it said in the news release.

There are no financial or ratepayer obligations with the announcement, which goes into effect after the state’s second offshore wind solicitation.

Additionally, the competitive solicitation process “contains extensive consumer protections, including the ability to control cost and timing implications by incorporating transmission upgrades in a phased manner,” the NJBPU said.

The NJBPU directed its staff to work with PJM to seek potential solutions for three interrelated components of an open access offshore wind transmission facility: (1) onshore upgrades, (2) beach crossings with potential offshore “collector” platforms, which collect energy from multiple wind farms, and (3) an ocean transmission “backbone” to connect multiple collector platforms or lease areas.

The NJBPU said it will assess whether proposals for any of these components can meet the state’s offshore wind policy goals in an economically efficient, environmentally sensitive, and timely manner.

The NJBPU intends to work with PJM to open the solicitation in 2021 and evaluate competitive project proposals in concert with the grid operator, including any cost considerations.

At the end of the process, NJBPU will decide whether to proceed with any combination of the proposed transmission projects, but it reserves the right to terminate the process at any time without making a selection.

Additional information about New Jersey’s offshore wind program is available here.

TVA board approves utility’s first rates for commercial EV charging stations

November 19, 2020

by Peter Maloney
APPA News
November 19, 2020

The Tennessee Valley Authority’s (TVA) board of directors recently approved a new commercial rate structure aimed at supporting the expansion of electric vehicle charging infrastructure across the region.

TVA conducted a pilot program for electric vehicle rates about a year and a half ago, but the new rate would be the first at the utility that is useable for everybody, Joe Hoagland, vice president of innovation and research at TVA, said.

The new rates apply to any commercial, level-three fast charger, but not to residential charging. “The new, commercial rate is simpler,” Hoagland said. “It takes out almost all of the demand charge, so there is a simple rate based on kilowatt hours (kWh), so it looks similar to gasoline on a cents per gallon basis.”

Hoagland said TVA did a lot of work with stakeholders to understand what needs to happen to facilitate electric vehicle adoption in the Valley and identified four barriers: a lack of infrastructure and concerns about range anxiety, a lack of supporting rate policies, the relatively high costs of electric vehicles, and a low level of awareness regarding electric vehicles among customers. The new commercial rates structure “is the first step in addressing those barriers,” Hoagland said.

The new commercial rate will apply to the wholesale rate TVA charges its 153 local utilities. While all the details of the wholesale rates are not yet worked out, it will be competitive with rates offered by third party charging stations, Hoagland said.

Electric vehicles represent a “huge opportunity for us to continue with our mission of economic development” in the Valley, Hoagland said.

In late October, General Motors said it plans to invest nearly $2 billion in its Spring Hill, Tenn., manufacturing plant to build fully electric vehicles. Volkswagen, which already manufactures electric vehicles in Tennessee, last week said it has begun construction of a new, laboratory for electric vehicle batteries in the state. Nissan also has a factory in Nashville where it produces its LEAF electric vehicle.

In addition to manufacturers, wider use of electric vehicles could be a draw for other companies looking that are focused on their sustainability goals and are looking to relocate, and electric vehicles also represent “an opportunity for a significant amount of carbon dioxide reductions,” Hoagland said.

For TVA, electric vehicles also represent a sales growth opportunity and could improve the utility’s ability to balance its load, Hoagland said. “There is value in this for everybody, the consumer, the local utility and TVA,” he said.

“Actively supporting the electrification of transportation multiplies our own carbon reduction efforts and moves the entire region toward greater sustainability and economic opportunity in the future,” Jeff Lyash, TVA’s president and CEO, said in a statement. “TVA has reduced carbon emissions by nearly 60% since 2005, and we have concrete plans to reach 70% by 2030.”

At the board meeting, TVA noted that it in fiscal year 2020 it’s provided nearly 60% of the region’s electric power from carbon free sources, which it said is the largest percentage of clean power produced by any Southeastern utility.

TVA also noted that it has increased solar energy capacity by nearly 70% with nearly 1,200 additional megawatts of solar energy under contract that is due online in the next two years.

Also at the board meeting, TVA said that despite restrictions imposed to help stop the spread COVID-19, it managed to conduct scheduled maintenance and capital improvements, resulting in improved system performance and decreased fuel costs.

So, while its operating revenue was down about 5% due to a combination of weather and pandemic impacts, TVA said the shortfall was offset by “improved operational performance that lowered operating and maintenance costs, reduced fuel costs and exceeded TVA’s debt reduction target by more than $400 million, reducing debt to its lowest level in 30 years.”

TVA estimated its fiscal year net income at $1.4 billion.

Senate Energy and Natural Resources Committee advances FERC nominees

November 18, 2020

by Paul Ciampoli
APPA News Director
November 18, 2020

The Senate Energy and Natural Resources Committee on Nov. 18 favorably reported the nomination of Allison Clements and Mark Christie to be members of the Federal Energy Regulatory Commission.

The committee held a hearing to consider the nominees on Sept. 16. The committee approved both nominees by a voice vote.

The nominees now await further consideration by the full Senate. Should they be approved by the Senate before the end of the year, Clements would serve a FERC term expiring June 30, 2024, and Christie a term expiring June 30, 2025.

In other recent FERC-related news, President Donald Trump on Nov. 5 named James Danly as Chairman of FERC. He will replace Neil Chatterjee as head of the agency.

Danly has served as a Commissioner since March 2020. Prior to that he served as general counsel to the Commission since joining FERC in 2017.

Chatterjee, who joined the Commission in 2017 and served as Chairman from August to December 2017 and since October 2018, congratulated Danly on his appointment and said the Commission will be well-served by Danly’s leadership.

Chatterjee will remain a FERC Commissioner, along with Commissioner Richard Glick.

CARB and Calif. public power utilities partner to offer consumers up to $1,500 off EVs

November 18, 2020

by Paul Ciampoli
APPA News Director
November 18, 2020

A large number of California public power utilities are teaming up with the California Air Resources Board (CARB) to offer the California Clean Fuel Reward (CCFR), a point-of-sale price reduction of up to $1,500 for the purchase or lease of any eligible new battery electric or plug-in hybrid vehicle from a participating automotive retailer.

Starting on Nov. 17, consumers will be able to purchase an eligible vehicle from an enrolled retailer and receive an instant reduction in the purchase price, CARB noted.

The CCFR will help support California Gov. Gavin Newsom’s Executive Order phasing out gasoline-powered cars and requiring 100 percent sales of zero-emission cars in 2035.

Southern California Edison, a subsidiary of investor-owned Edison International, is administering the program on behalf of, and in collaboration with, all participating utilities. The CCFR is available to all California residents, regardless of utility provider and participation.

The participating public power utilities are:

Investor-owned utilities participating Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric.

When consumers make an EV purchase at an enrolled retailer in California, the retailer will include the reward in the transaction at the point of sale. The customer will not need to do any paperwork after the sale to receive the reward. “The CCFR is one of the most straightforward and inclusive rewards in the market, as it is available to everyone in California,” CARB said.

The lists of enrolled retailers and eligible vehicles will be continually updated as new retailers and EV models are added.

The CCFR can also be combined with existing post-sale federal, state and local incentives, such as the Clean Vehicle Rebate Project, Clean Cars 4 All, and the Clean Vehicle Assistance Program, to make EVs even more affordable.

The CCFR is funded by electric utilities participating in CARB’s Low Carbon Fuel Standard (LCFS) program. The LCFS is a key part of a comprehensive set of programs in California to cut greenhouse gas emissions and other smog-forming and toxic air pollutants by improving vehicle technology, reducing fuel consumption, and increasing transportation mobility options.

Additional information about the CCFR is available here.

NTUA details significant progress on Navajo Nation CARES Act projects

November 18, 2020

by Paul Ciampoli
APPA News Director
November 18, 2020

In the Four-Corners region of the United States, the Navajo Tribal Utility Authority (NTUA) has been busily working towards a December 30, 2020 deadline to extend, build, connect, and provide utility services to hundreds of families funded through Coronavirus Aid, Relief, and Economic Security (CARES) Act.

In mid-August, the Navajo Nation– the recipient of CARES Act funding — announced the award of $147,116,561 to NTUA to construct utility projects eligible under the CARES Act with the goal and purpose of combatting COVID-19. The various NTUA projects are identified in the Navajo NationCARES Act legislation.  These projects must be completed by December 30, 2020.

NTUA is grateful that the Navajo Nation Council passed the Navajo Nation CARES Act legislation and that the Navajo Nation President signed the legislation authorizing the connection of over 500 homes of Navajo families to the electric grid.

NTUA further noted that in anticipation of the approval of the Navajo Nation CARES Act, it had been organizing internally to connect hundreds of homes. In an effort to connect as many families as possible NTUA’s electric construction crews started working five ten-hour days per week starting in June. 

By starting to connect families before the Navajo Nation awarded CARES Act funding to NTUA, NTUA took the risk that the Navajo Nation might not fund NTUA with CARES Act funding as was being proposed at the time.

“We did this with complete faith that Navajo leaders would approve Navajo Nation CARES Act dollars for electric construction,” NTUA General Manager Walter “Wally” Haase said. “If we waited until September to start construction, over 100 families would not have been connected this year.”

“We didn’t want to take that chance,” Haase added. “We want to help as many families as possible to help fight the spread of this devastating COVID-19.”

In June, NTUA presented a proposal to extend electricity to 510 homes, which includes 350 families that NTUA was prepared to connect during the 2020 Light Up Navajo II project (LUNII). The Light Up Navajo initiative, which was supported by a $125,000 grant from APPA’s Demonstration of Energy and Efficiency Developments (DEED) program began in Spring 2019, bringing together volunteer crews from public power utilities across the country to connect Navajo homes to the grid.

NTUA and 34 public power utilities were ready to connect the 350 homes in April 2020; however, the COVID-19 pandemic delayed plans for LUNII. Rather than having the 350 families wait until Spring of 2022, NTUA submitted their homes for funding from the Navajo Nation with CARES Act funding.  Many of the LUN II homes were shovel ready with all the necessary Rights of Way and land acquisition approval in place.

“We wouldn’t have had these LUN II projects ready if we didn’t have our sister utilities on board,” Haase said. “Even though they didn’t travel here, they made it possible for LUN II families to be connected. Their initial commitment resulted in a meaningful difference in the lives of these families.”

NTUA plans to launch another Light Up Navajo project as soon as it is safe to do so. “We want to echo NTUA’s thanks and encourage utilities to continue reaching out if they are interested in participating the next LUN event” said Alex Hofmann, Vice President, Technical and Operations Services, at APPA.

Progress Reports

In weekly progress reports for Navajo Nation leadership, NTUA provides updates on the various CARES Act projects. In Update #11 of November 12, 2020, NTUA noted that in order to help combat the spread of COVID-19, it created partnerships with the other electric service utilities that serve small regions on the Navajo Nation.

As part of the Navajo Nation CARES Act legislation, NTUA was authorized to install off-grid solar units across the Navajo Nation. NTUA initiated a public campaign inviting families without electricity to apply for a solar unit.

NTUA received more than 1,000 applications and many are from families living within close proximity to a power line. In addition, some of the families are living beyond the reach on NTUA’s electric distribution system.

NTUA therefore reached out to the electric companies that serve applicants living in these areas, including Arizona Public Service, Continental Divide Electric Cooperative, Jemez Mountain Electric Cooperative and Socorro Electric Cooperative to find ways to partner to connect these families to the electric grid. NTUA will use CARES Act funding to fund the connection of a minimum of 31 homes served by these companies.

“We used the blueprint of Light Up Navajo as a guideline. I was inspired through the generosity of our sister utilities during LUN to find and create new partnerships,” Haase said. “This is the first time NTUA has established such a partnership with these neighboring electric utility companies. We reached out because of the success of LUN and now we have another unified effort to help families get connected.”

Dual Purpose — off-grid solar units and electric grid connections

As of November 12th, NTUA crews have been working to prepare qualified homes to be connected to the 3,000-kW solar units, energy efficient refrigerators come with each unit, and have determined that:

199 homes are feasible to date; Installation of solar units is scheduled to begin the week of November 16th

NTUA continues to work with the Navajo Nation to obtain land acquisition for construction. The Navajo Nation Land Department has issued NTUA land acquisition for 117 projects, moving these projects closer to construction.

NTUA Districts and Electric Construction line crews have worked 10-hour days. Various crews are building power lines on weekends and holidays.

As a result of these efforts, 358 families are now connected to the electric grid, an increase of 36 homes from the week.

Moreover, NTUA connected 29 homes in two days following the completion of two major power lines that extended over 10 miles.

As for electric capacity projects, NTUA’s electric division has completed 27 out of the 59 planned CARES Act funded projects. There are 17 projects in construction, including Kinlichee (AZ), Kayenta (AZ), Shiprock (NM), and Mexican Water (UT).

Additional projects are set to begin construction later this month in Fort Defiance (AZ), Crystal (NM), Navajo Mountain (UT), and Chinle (AZ). The work will include substation work and pole replacements.

The complete week #11 Update is available here. To continue to follow NTUA’s progress, please look for the weekly Updates at www.ntua.com on the CARES Act – NTUA projects page. 

NYPA reports first milestone in effort to extend hydro project’s operating life through digitization

November 17, 2020

by Paul Ciampoli
APPA News Director
November 17, 2020

The New York Power Authority on Nov. 17 announced the first milestone of its 15-year modernization and digitization program to significantly extend the operating life of its Niagara Power Project.

The Niagara Power Project is New York State’s biggest electricity producer, providing up to 2.6 million kilowatts of electricity, which is generated by two facilities, the Robert Moses Niagara Power Plant and the Lewiston Pump Generating Plant, with a combined 25 turbines spun by 748,000 gallons of water per second. NYPA sells the power to state facilities, municipal and rural electric coops, and large utilities.

As part of the Robert Moses Niagara Power Plant’s life extension and modernization program, called “Next Generation Niagara,” 13 turbine units in the project’s main generating facility will be upgraded. An outage to allow for the overhaul of the first unit began recently and digitization and modernization work commenced earlier this month, NYPA said.

“The digitization of the first hydroelectric generator at the Robert Moses Power Plant is significant because it will set the course for work on the remaining twelve units,” said Gil Quiniones, NYPA president and CEO, in a statement.

Improvements under Next Generation Niagara, which was launched in July 2019, include replacing aging equipment with the latest machinery reflecting advanced digital technologies for optimizing the hydroelectric project’s performance. 

The initiative encompasses four major phases.

NYPA said that the first major outage will allow for the installation of new digital controls on the first turbine generator unit and its connections to the control room and the plant’s substations. Panels in the control room corresponding to the turbine unit also will be digitized as part of the plant’s overall control room upgrade and redesign.

The turbine unit outage aligns with another outage for work on NYPA’s transmission life extension and modernization program taking place in the plant’s switchyard. This will allow new digital controls to be installed on the transformers and circuit breakers corresponding to the upgraded turbine.

The work on this first unit is part of a design build contract NYPA trustees awarded to Burns and McDonnell earlier this year which includes subcontracts to Emerson and Ferguson Electric of Buffalo.

The first-unit outage is expected to last approximately 7 months.  

Redwood Coast Energy Authority, Valley Clean Energy sign resource adequacy agreements

November 17, 2020

by Paul Ciampoli
APPA News Director
November 17, 2020

California community choice aggregators Redwood Coast Energy Authority and Valley Clean Energy have signed resource adequacy agreements with California-based Leap, which enables real-time automated trading on energy markets.

Under the agreements, Leap will provide a total of 12.5 megawatts in flexible capacity to Redwood Coast Energy Authority and Valley Clean Energy. The new capacity will be made available for use by the CCAs starting in June 2021 over a ten-year term and will be sourced from Leap’s marketplace for grid flexibility.

The new agreements will allow the CCAs to unlock a new means of meeting energy demand in their service territories by gaining access to a statewide market of distributed energy resources, Leap said in a recent news release.

This includes delivering flexible capacity from within the CCAs’ service territories, as some of the resources in the Leap marketplace will be provided by customers of the CCAs.

According to Leap, it has been the largest participant in California’s Demand Response Auction Mechanism over the past two years.

Leap’s marketplace for grid flexibility grants energy resources — including battery energy storage, electric vehicles, smart thermostats, HVAC systems and industrial facilities — access to demand response programs, wholesale markets, and real-time pricing through a single application programming interface.

The Redwood Coast Energy Authority is a local government joint powers agency whose members include the County of Humboldt, Calif., all incorporated cities within the county, and the Humboldt Bay Municipal Water District.

Valley Clean Energy is a not-for-profit public agency formed to provide electrical generation service to customers in Woodland, Davis, Winters and the unincorporated areas of Yolo County, Calif.

Additional information about Leap is available here.

The American Public Power Association has initiated a new category of membership for community choice aggregation programs.