White House Calls For Report That Will Address Digital Asset Energy Implications
March 21, 2022
by Paul Ciampoli
APPA News Director
March 21, 2022
A recent executive order issued by President Biden calls for a report that will, among other things, address the implications of digital asset technology for energy policy.
President Biden issued the “Executive Order On Ensuring Responsible Development of Digital Assets” on March 9.
Within 180 days of the date of the order, the Director of the Office of Science and Technology Policy will need to submit a report to the President on the connections between distributed ledger technology and short-, medium-, and long-term economic and energy transitions; the potential for these technologies to impede or advance efforts to tackle climate change at home and abroad; and the impacts these technologies have on the environment.
The Director of the Office of Science and Technology Policy will prepare the report in consultation with the Secretary of the Treasury, the Secretary of Energy, the Administrator of the Environmental Protection Agency, the Chair of the Council of Economic Advisers, the Assistant to the President and National Climate Advisor, and the heads of other relevant agencies.
“The report should also address the effect of cryptocurrencies’ consensus mechanisms on energy usage, including research into potential mitigating measures and alternative mechanisms of consensus and the design tradeoffs those may entail,” the executive order said.
The report should specifically address:
- Potential uses of blockchain that could support monitoring or mitigating technologies to climate impacts, such as exchanging of liabilities for greenhouse gas emissions, water, and other natural or environmental assets; and
- Implications for energy policy, including as it relates to grid management and reliability, energy efficiency incentives and standards, and sources of energy supply
The term “blockchain” refers to distributed ledger technologies where data is shared across a network that creates a digital ledger of verified transactions or information among network participants and the data are typically linked using cryptography to maintain the integrity of the ledger and execute other functions, including transfer of ownership or value.
LS Power Affiliate Developing Up To 800-MW Wind Farm In Southern Idaho
March 21, 2022
by Peter Maloney
APPA News
March 21, 2022
Magic Valley Energy, an affiliate of LS Power, has announced plans to develop a wind power project in southern Idaho with a capacity of up to 800 megawatts (MW).
The Salmon Falls Wind Project is sited on lands managed by the Bureau of Land Management (BLM) in Twin Falls County.
The project is in the initial stages of the development, which includes interactions with federal, state, and local agencies, as well as outreach to local stakeholders.
Magic Valley Energy expects construction of the project could begin as early as 2024.
The company said the proposed site is situated at the confluence of several key siting characteristics, including favorable wind resources, availability of suitable land, compatibility with existing land uses, a general absence of sensitive biological resources, and proximity to existing and future planned high voltage transmission lines to deliver the wind energy to market.
Magic Valley Energy is also developing the Lava Ridge Wind Project, a 1,000-MW wind farm southeast of Shoshone, Idaho, proposed for federal land in Lincoln, Minidoka, and Jerome counties.
EIA Energy Outlook Sees Renewables Reaching 44% of U.S. Power Generation
March 21, 2022
by Peter Maloney
APPA News
March 21, 2022
The share of U.S. power generation from renewable generation will reach 44 percent by 2050, according to projections from the Energy Information Administration (EIA).
The projected increase, from 21 percent in 2021 to 44 percent in 2050, will mainly come from new wind and solar power resources, according to the EIA’s most recent Annual Energy Outlook 2022.
The contribution of other forms of renewable energy, such as hydropower, will remain largely unchanged through 2050 and sources such as geothermal and biomass will collectively remain at less than 3 percent of total generation, EIA said.
Solar power, both utility-scale solar farms and small-scale rooftop end-use systems, will overtake wind power as a generation source by the early 2030s, according to EIA projections.
While the early growth in wind and solar was driven by federal tax credits set to expire or to significantly decline by 2026, declining costs for both technologies now play a significant role in both near- and long-term growth, EIA said.
Meanwhile, the share of U.S. fossil fuel-fired power generation is expected to decline from 60 percent to 44 percent as a result of the continued retirement of coal-fired plants and the slow growth in natural gas-fired generation, according to EIA projections.
The EIA noted that although gas-fired generation is expected to increase in absolute terms, the share of natural gas in the total generation mix is likely to decrease slightly, from 37 percent in 2021 to 34 percent in 2050.
Coal and nuclear plants will continue to retire, the EIA said, with nuclear power’s contribution to overall power generation dropping from 19 percent in 2021 to 12 percent in 2050 and coal’s contribution declining from 23 percent in 2021 to 10 percent in 2050.
The EIA expects generation from renewable sources to increase to offset the declining share of generation from coal and nuclear sources, mainly because existing regulatory programs and market factors incentivize renewable sources.
Although not recorded in the EIA’s Annual Energy Outlook as a generation source, energy storage, either as stand-alone batteries or solar-battery hybrid systems, will play a role in the growth of renewable resources by making renewables more competitive with natural gas generation by providing back-up capacity for times when non-dispatchable renewable sources are unavailable, the EIA said.
Last August, the EIA reported that the installed capacity of large-scale energy storage batteries grew by 35 percent in 2020 and tripled in the last five years.
The EIA’s most recent Annual Energy Outlook also projects that electricity demand will grow slowly, increasing competition among fuels. U.S. production of natural gas and petroleum, meanwhile, will continue to rise, driven by growing demand for exports and from industry.
EIA projections also show that electricity will continue to be the fastest growing energy source in buildings with renewables and natural gas providing most of the incremental electricity supply.
Snohomish County PUD’s Bond Ratings Upgraded By S&P Global Ratings
March 21, 2022
by Paul Ciampoli
APPA News Director
March 21, 2022
Washington State-based Snohomish County PUD’s electric and generation system revenue bond ratings were recently upgraded from AA- to AA by S&P Global Ratings.
According to S&P, the rating upgrade reflects the agency’s positive view of the PUD’s diverse and reliable power portfolio and retail revenue base that proved resilient during the pandemic.
S&P cited several key factors for the PUD’s upgraded bond rating in its report, including:
- The PUD’s largely residential retail venue base, good customer diversity and above-average median household income give it a robust service area with economic fundamentals.
- A low-cost, non-carbon-emitting power supply, prudent rate-setting practices, and sound management, policies and planning.
- Rates that are generally in-line with the state average and moderate ratemaking flexibility.
- Current system debt that is modest in addition to flexibility to issue additional debt.
Recent decisions by the PUD’s Board of Commissioners to increase rates and support the need for solid financial reserves were also factors in S&P’s decision to upgrade its bond rating.
S&P also cited the PUD’s Integrated Resource Plan, which was adopted in 2021, and the county’s strong economic stability as mitigation to exposure and risk of climate change and evolving regulatory environment around fish and wildlife and clean energy.
Federal Government Warns Of Possible Satellite Communication Network Threats
March 21, 2022
by Paul Ciampoli
APPA News Director
March 21, 2022
The Cybersecurity and Infrastructure Security Agency (CISA) and the Federal Bureau of Investigation (FBI) recently released a joint cybersecurity advisory that warns organizations of possible threats to U.S. and international satellite communication (SATCOM) networks.
“Successful intrusions into SATCOM networks could create risk in SATCOM network providers’ customer environments,” CISA and the FBI said in the alert.
“Given the current geopolitical situation, CISA’s Shields Up initiative requests that all organizations significantly lower their threshold for reporting and sharing indications of malicious cyber activity,” the alert said.
To that end, CISA and FBI will update the advisory as new information becomes available so that SATCOM providers and their customers can take additional mitigation steps pertinent to their environments.
CISA and FBI strongly encouraged critical infrastructure organizations and other organizations that are either SATCOM network providers or customers to review and implement the mitigations outlined in the advisory to strengthen SATCOM network cybersecurity.
The complete list of mitigation measures recommended by CISA and the FBI is available in the advisory. Click here for the advisory.
Florida Public Power Utility Breaks Ground On Net-Zero Emissions Campus
March 20, 2022
by Paul Ciampoli
APPA News Director
March 20, 2022
Representatives with Florida public power utility Orlando Utilities Commission (OUC) and the City of St. Cloud, Fla., led a recent groundbreaking ceremony for OUC’s state-of-the-art St. Cloud Operations & Maintenance Center, the first net-zero campus for a Florida utility.
The $63.6 million, 24-acre campus will reach net-zero emissions through conservation and efficiency practices and its use of renewable energy.
Designed by OUC and Jacobs, a design firm, the project aligns with OUC’s and the City of St. Cloud’s commitment to sustainability and renewable energy.
Construction includes building a 55,000-square-foot warehouse and a 22,000-square-foot fleet maintenance facility with service bays, parts stores, electric vehicle (EV) fleet charging and fueling stations, and a vehicle wash area. Approximately 260 people will work on this portion of the project.
When completed in December 2023, about 54 OUC employees will call the campus home. Future phases are expected to include an administrative facility and a substation.
The project includes several sustainable features, including rooftop solar panels, floating solar, high-efficiency water fixtures, rainwater harvesting tanks, Florida-Friendly Landscaping, walking and biking trails, and EV charging stations. Human-focused design strategies were added to promote well-being, safety and encourage healthy choices. Buildings on campus were designed to meet the stringent requirements of LEED, Fitwel and WELL Health Safety Standard.
The project marks a milestone in OUC’s partnership with St. Cloud. In May 1997, the two entered a long-term agreement for OUC to operate and maintain the city’s electric system.
DOE Launches Workforce Development Strategy For Lithium Battery Manufacturing
March 20, 2022
by Paul Ciampoli
APPA News Director
March 20, 2022
The U.S. Department of Energy (DOE) recently announced the launch of a national workforce development strategy for lithium battery manufacturing.
As part of a $5 million investment, DOE will support up to five pilot training programs in energy and automotive communities and advance workforce partnerships between industry and labor for the domestic lithium battery supply chain.
The pilot training programs will bring together manufacturing companies, organized labor, and training providers to lay the foundation for the development of a broad national workforce strategy, DOE noted.
The pilots will support industry-labor cooperation and will provide sites for job task analyses and documenting worker competencies, it said.
Insights gained will support the development of national industry-recognized credentials and inform the development of broader training programs to support the overall battery supply chain, DOE said.
This initiative comes as part of suite of announcements from President Biden’s Interagency Working Group (IWG) on Coal and Power Plant Communities and Economic Revitalization. This is a partnership among the White House and nearly a dozen federal agencies committed to pursuing near- and long-term actions to support coal, oil and gas, and power plant communities as the nation transitions to a clean energy economy, the DOE said.
DOE’s announcement follows its recent release of two Notices of Intent authorized by the infrastructure law to provide $3 billion to support projects that bolster domestic battery manufacturing and recycling.
The funding, which will be made available in the coming months, will support battery-materials refining, which will bolster domestic refining capacity of minerals such as lithium, as well as production plants, battery cell and pack manufacturing facilities, and recycling facilities, DOE said.
North Carolina Public Power Utility Fayetteville PWC Recognized By United Way
March 20, 2022
by Paul Ciampoli
APPA News Director
March 20, 2022
United Way of Cumberland County, N.C., announced on March 1 that North Carolina public power utility Fayetteville Public Works Commission (PWC) received the 2021 Spirit of North Carolina Award for Investment in long-term sustainable impact.
“Moving from response to recovery from the COVID-19 Pandemic, Fayetteville PWC has led the way in meeting community needs through their fundraising, volunteer, and advocacy efforts,” United Way of Cumberland County said.
United Way of North Carolina’s annual Spirit of North Carolina award celebrates organizations for their campaign excellence achieved through impactful events, engaged leadership, and volunteer engagement. Organizations championing Diversity, Equity and Inclusion values and post-pandemic rebuilding efforts are also celebrated.
United Way of North Carolina recognized 75 winners representing 22 local United Ways across the state.
Fayetteville PWC was not only recognized for raising over $150,000 through their workplace campaign but for its continuous support to the community.
The utility has been involved in neighborhood cleanups, fan donations for local senior citizens, 3,500 pounds of food donations to a local food bank, among other things.
Every year the utility goes above and beyond to help those in the community and the award represents the 16th time PWC has been honored by the United Way of North Carolina, United Way of Cumberland County said.
For more information about the Spirit of North Carolina Award and a complete list of winners, visit unitedwaync.org/spirit-north-carolina-award-winners.
Customers Of Missouri Public Power Utility Nixa Utilities Will See Lower Electric Rates
March 20, 2022
by Paul Ciampoli
APPA News Director
March 20, 2022
The city council of Nixa, Mo., recently voted to lower electric rates for the next few years for customers of public power utility Nixa Utilities.
Residential customers will see the rate drop about 2 cents per kilowatt hour — from over 12.3 cents per kilowatt hour down to 10.5 cents per kilowatt hour — on their April bill.
Nixa Utilities has not raised rates charged for electric power since 2017.
An annual 1.5% increase over the new, lower rate will take effect in 2023, to keep the electric rates up with the cost of inflation, but the five-year rate plan means that in 2024, Nixa Utilities residential customers will be paying about the same as they did in 2017.
Commercial and industrial customers will pay lower rates well past 2027 as an incentive to bring good jobs to Nixa, a city news release noted.
“For more than five years, we’ve been working hard to get to this moment,” said Doug Colvin, Director of Nixa Utilities and Public Works. “We have new agreements to get Nixa’s power at lower prices, reducing our utility’s risk exposure to volatile pricing on the open market,” said Colvin.
“We also sold Nixa’s transmission system a few years ago. That move saved us from expensive maintenance and regulatory compliance costs, while allowing the utility to pay off its debt completely.”
“All this work has made this moment possible, where we are able to actually lower rates while continuing to invest in improvements to our city’s electric grid,” said Nixa Mayor Brian Steele. “Now we’re spending down excess reserves to essentially give some of this money back to our customers through lower electric rates. For the next few years, we’ll be charging customers less than it costs us to buy power and maintain the system which carries that power to homes and businesses.”
Even despite the surging prices caused during the winter storm in February 2021, Nixa Utilities held rates steady for its customers, the city noted.
Premiums associated with price spikes for power purchased from the national grid were paid using the utility’s reserves.
“Going forward, an Energy Cost Adjustment charge on customer bills will spread out the cost of any surge pricing for future events, but won’t impact Nixa Utilities customers dramatically because the utility only purchases a relatively small amount of its power at the going market rates,” said Colvin.
California ISO Board Approves 10-Year Transmission Plan
March 19, 2022
by Paul Ciampoli
APPA News Director
March 19, 2022
The California Independent System Operator (CAISO) Board of Governors on March 17 approved a 10-year transmission plan for the grid operator.
The plan identified 23 projects estimated to cost $2.9 billion for system expansions, upgrades, and reinforcements needed for reliability and to meet the state’s clean-energy targets efficiently and cost-effectively for the next 10 years, CAISO said.
The latest plan reflects an escalation in the need for new transmission, the grid operator said. The increase is attributed to rapid acceleration in the need for new generation driven by the state’s goals of getting all electricity from carbon-free resources by 2045, and further electrifying the transportation, industrial, and residential sectors, it said.
In the past few years, CAISO’s plans have shown increased amounts of energy and transmission coming onto the grid.
Last year’s 2020-2021 transmission plan was based on projections that about 1,000 megawatts (MW) of new resources would be needed annually over the 10-year planning horizon. Next year’s plan is currently projected to assume a requirement of more than 4,000 MW of new resources per year.
The plan approved last week is based on an intermediate level of about 2,700 MW of new resources per year.
The latest transmission plan also outlines the role for a widening and expanding set of diverse resources to meet clean energy goals, including geothermal, new out-of-state renewables, and future offshore wind generation, CAISO said.
Closely coordinated with the California Public Utilities Commission and California Energy Commission, the grid operator’s planning cycle runs from every January to early in the subsequent year. The actual plan, which relies heavily on state agency input and data to make sure it is aligned with California’s energy policies, also gets reviewed through a comprehensive and intensive stakeholder process. Projects are analyzed from the perspective of reliability, public policy, and economic benefits to consumers.
Now that it has been approved, the plan will guide collaborative activities for the implementation of the newly approved projects, including initiating a competitive solicitation process for four of the higher-voltage projects.
Approval of the plan also sets in motion contractual agreements and cost recovery for transmission upgrades through ISO transmission rates.
For the first time ever, the ISO has also produced a 20-Year Transmission Outlook in addition to its yearly plan.
While the 10-year plan is required by CAISO’s federal tariff and identifies specific projects for construction, the longer outlook is designed to provide a framework and longer-term vision for the system’s future transmission needs without recommending specific projects for approval.