We are excited to share with you the inaugural edition of Enerknol's EnergyPulse, a comprehensive weekly newsletter that captures the main regulatory and legislative actions across the North American energy sector, powered by the Enerknol Platform. Please enjoy this complimentary newsletter and stay tuned for the official launch.

November 13, 2017


Featured Topics

Power Markets

Renewable Energy Projects

Natural Gas

Transmission and Reliability

Rate Cases


Featured Entities

Apple

Avista

Barclays

Black Hills Energy

Capital Power

Central Hudson Energy

Central Maine Power

Con Edison

Consumers Energy

Duke Energy

Dynegy

EDF

Empire District

Falck Renewables

Invenergy

JP Morgan

Kinder Morgan

Mercuria

Minnesota Power

NextEra

NV Energy

PG&E

Philadelphia Gas Works

PJM

Powerex

SCE

SDG&E

Southern Company

Tampa Electric

Top News

California Commission Proposes $1.16-Billion Spending for State Utilities’ 2018 Demand Response Programs

The California Public Utilities Commission proposed a budget of $333.9 million for Pacific Gas and Electric Company, $751.1 million for San Diego Gas & Electric Company, and $75.6 million for Southern California Edison Company for demand response activities from 2018 through 2022, as well as a $2.5 million budget for future pilot programs, according to a draft decision by the agency Nov. 9.

PJM Market Monitor Calls for Expeditious Reform of Minimum Offer Price Rule to Defend Markets from "Threat Posed by Subsidies"

Subsidy proceedings in Ohio, Illinois, and Pennsylvania intended to forestall retirement of financially distressed assets demonstrate that the PJM markets needs protection from subsidized, non-competitive offers, and the best means to achieve this is an “MOPR-Ex” – an expanded minimum offer price rule which currently addresses only subsidies for new entry, according to a Nov. 9 report of the PJM market monitor, Monitoring Analytics LLC.

Ohio Adopts Net Metering Rules, Sets Compensation At Utility’s Standard Service Offer Rate

Customers receiving standard service from regulated electric utilities will receive a monthly bill credit for grid-exported energy at the utility’s standard service offer rate for energy, and net metering facilities may be sized based on 120 percent of a customer’s average annual usage, according to a Nov. 8 press release from the Ohio Public Utilities Commission.

Barclays to Pay $105 Million Under Settlement With FERC, Ending 5-Year Power Market Manipulation Case

FERC and the London-based financial giant reached an agreement Nov. 7 settling a dispute over questionable trades by Barclays Bank PLC in the western power market from 2006-2008, requesting the payment of civil penalties and the forfeiture of profits, according to an order by the agency. Earlier, FERC enforcement staff had sought over $567 million in civil penalties and over $45 million in unjust profits, according to a November 2017 report.

Georgia Regulators to Consider Fate of Southern Co.'s Troubled Vogtle Nuclear Plant in Key Hearings

The Georgia Public Service Commission began four days of hearings Nov. 6 to consider Southern Co.’s request to proceed with construction of Vogtle units 3 and 4, which have been beset by delays and cost over-runs, according to a media advisory by the agency Oct. 30.

Power Markets

New England Generators Appeal Grid Operator’s Cost of New Entry Value, Citing Potential for $1.55-Billion Cut in Revenues

The New England Power Generators Association asked FERC to reconsider ISO New England Inc.’s valuation on the net cost of new entry at $8.04/kW-month, arguing that it would cause a $1.55 billion reduction in market-wide capacity revenues between the 11th and the upcoming 12th capacity auction, and seeks a revision based on combined-cycle technology rather than simple cycle generator technology, according to the association’s Nov. 6 filing with FERC.

JP Morgan Subsidiary to Trade Power in Texas Grid, Marking Latest Bank to Enter Market

JP Morgan Chase and Co. a subsidiary of the financial services giant, will trade and market wholesale power in the grid run by Electric Reliability Council of Texas Inc., according to a Nov. 7 filing by the Texas commission.

PJM Seeks to Place Price Caps on Updated Intraday Sell Offers to Address Power Market Concerns

PJM Interconnection LLC is seeking approval from FERC to impose price caps on offers to sell power that are made in the day-ahead market, and subsequently updated in real time after the supplies have been committed, to mitigate the risk of generators unfairly hiking prices, according to a filing with the federal agency Nov. 3.

New England Grid Manager Reports Over 40 Gigawatts of Generating Capacity Qualifed for 2021 Capacity Auction

Over 35,000 megawatts of existing generating capacity and 5,605 megawatts of new resources have qualified for the twelfth forward capacity auction to be held by ISO New England Inc. to meet a net requirement of about 34 gigawatts, according to the grid operator’s Nov.7 filing with the Federal Energy Regulatory Commission. The auction is to be held February 2018 to purchase electricity supply commitments for delivery in 2021-2022.

California Grid Operator Seeks Addition of Canadian Hydro Power Producer to Western Market

The California Independent System Operator Corp. requested approval from FERC for an agreement paving the way for Powerex Corp., a subsidiary of provincially-owned Crown corporation British Columbia Hydro & Power Authority, to participate in the Energy Imbalance Market, which would be on a voluntary basis using residual capacity from the hydro system, according to a Nov. 3 filing. The agreement seeks a Feb. 15, 2018, effective date, to allow Powerex’s participation April 4 that year.

Renewable Energy Projects

NV Energy, Apple Seek Nevada Commission Approval to Advance 50-Megawatt Solar Project

NV Energy Inc., a subsidiary of Berkshire Hathaway Inc., seeks approval from the Nevada Public Utilities Commission for an agreement to enable Apple Inc. to purchase portfolio energy credits and to support the development of a 50-megawatt photovoltaic generator, to meet the tech giant’s commitment to supply its facilities in the northern part of the state exclusively with renewable energy, according to a Nov. 1 filing with the commission.

International Project Developer Approved by U.S. to Buy Majority Stake in Canadian Solar's 71-Megawatt Solar Farm in North Carolina

Falck Renewables SpA, a developer with renewable projects in Italy, the United Kingdom, France, and Spain, gained approval from FERC to acquire a 99 percent stake in a proposed solar project for Cumberland and Bladen Counties, to be owned and operated by Canadian Solar Inc. subsidiary Innovative Solar 42 LLC, according to a Nov. 8 filing by the agency.

Capital Power Applies for 300-Megawatt Wind Farm in Southeastern Alberta

Capital Power Corp. seeks approval from the Alberta Utilities Commission for its 83-turbine Whitla Wind Power Project in the County of Forty Mile No. 8, according to a notice by the commission on Nov. 6, 2017.

Tampa Electric to Add 600 Megawatts of Solar Following Florida Commission Agreement

A four-year agreement approved by the Florida Public Service Commission will enable Tampa Electric to add 600 megawatts of solar and implement a pilot program to optimize assets and wholesale energy transactions, according to a Nov. 6, press release from the agency.

NextEra's 150-Megawatt North Dakota Windfarm to Come Under Public Scrutiny in Hearing

NextEra Energy Inc.’s 75-turbine Foxtail Wind Energy Center, a project to be constructed and operated by Xcel Energy Inc., will be subject ot a public hearing Nov. 20, according to a Nov. 8 press release by the North Dakota Commission.

Empire District Plans Coal Retirement and Wind Development Leveraging Federal Tax Incentives

The Empire District Electric Company has requested the Missouri Public Service Commission to approve its plan to retire a coal-powered generation unit and develop wind generation with a tax equity partner using federal tax incentives, according to a Nov. 2 press release from the commission.

U.S. House Passes Bill to Expand Hydropower Generation by Streamlining Licensing Process

The U.S. House passed legislation (H.R. 3043) on Nov. 8 that would “modernize” the permitting process for hydropower generation, including by setting decision deadlines and cutting “duplicative reviews” by naming FERC as the lead agency for U.S. hydropower project reviews.

Federal Lawmaker Proposes Bill to Continue Stay of Alaska Hydroelectric Project

U.S. House Lawmaker Don Young, a Republican representing Alaska, introduced a bill (H.R. 4317) to authorize the Federal Energy Regulatory Commission to issue an order continuing a stay of a hydroelectric license for the Mahoney Lake hydroelectric project in Alaska.

Invenergy Applies for 522-Megawatt New Mexico Wind Project Said to Deliver $2.8 Billion in Customer Savings

Sagamore Wind Energy, a subsidiary of Invenergy LLC, applied on Nov. 6 to site the project in Roosevelt County, according to a filing with the New Mexico Public Regulation Commission. Plans call for Southwestern Public Service Company to construct, own, and operate the project, which is due to start service in December 2020.

Natural Gas

Kinder Morgan's Natural Gas Pipeline Expansion Project Serving Texas, Mexico Approved by FERC

Kinder Morgan Inc. and Brookfield Infrastructure Partners LP’s subsidiary Natural Gas Pipeline Company of America LLC won approval to construct and operate its Gulf Coast natural gas pipeline expansion project, which includes a compressor, according to a FERC order issued Nov. 8. The project aims to provide 460,000 dekatherms per day of capacity south bound on the Gulf Coast Line to markets in the Texas Gulf Coast Area and Mexico.

Mercuria Sells 500-Megawatt Natural Gas Plant in Upstate New York to Private Equity Firm

Mercuria Energy Group Limited, one of the world’s largest independent energy and commodities trading groups, won approval from FERC for the sale of its Danskammer Station power plant in Newburgh, to New York-based Tiger Management Corp., according to a commission order from Nov. 8.

U.S. Approves Natural Gas Exports for EDF, Seven Strategic Consulting, and Greenfield Energy

EDF Trading North America, Seven Strategic Consulting, and Greenfield Energy Centre gained authorization from the U.S. Department of Energy to export and import natural gas to and from Canada and Mexico for a for two-year terms, according Oct. 27 orders issued by the department.

Transmission and Reliability

Dynegy's Plans to Retire One-Third of Illinois Coal Fleet Prompts State Commission to Investigate Reliability Impacts

The Illinois Commerce Commission is seeking input on electric resource adequacy in Zone 4 of the market run by the Midcontinent Independent System Operator, Inc., citing Dynegy Inc.’s plans to retire one-third of its Illinois coal fleet following two plant closures in 2016, according to a Nov. 9 press release from the commission.

California Leads U.S. States in Push to Modernize Electric Grid, Topping Illinois, Texas: Report

The state ranks highest in grid modernization policies, investments and customer engagement for the second consecutive assessment, beating Illinois and Texas, according to the Nov. 9 report led by Gridwise Alliance.

Midcontinent Grid Operator Expects Sufficient Resources to Meet Winter Demand

The market run by the Midcontinent Independent System Operator Inc., extending from the Midwest to the Gulf Coast, is expected to have 142 gigawatts of supply to meet a forecast winter demand of 103.4 gigawatts, and could rely on behind-the-meter and demand-response resources in the event of higher-than expected outages, according to a Nov. 7 press release by the grid manager.

Coal Stockpiles at U.S. Power Plants Hit Three-Year Low Last Summer: U.S. Energy Information Administration

Monthly inventories of coal at U.S. power generators reached 144 million tons in August, the lowest level since late 2014, according to an October report by the EIA.

Con Edison, MPX Win Approval for 1 Gigawatt Maine Power Express Transmission Project

Consolidated Edison Inc. and Maine Power Express LLC’s 315-mile, high-voltage DC power line, extending from Haynesville, Maine, to Boston, was cleared by the reliability committee of ISO New England Inc. on Oct. 17, according to a filing published Nov. 8 by the grid operator. The developers seek to place project into service in December 2022.

U.S. Nuclear Capacity Expected to Decrease by 12 Gigawatts by 2040 as Plants Retire: Energy Information Administration

The U.S. nuclear fleet, with the largest number of reactors in the world, is projected to see its capacity fall to about 88 gigawatts by 2040, from 100 gigawatts currently, as several plants are due to shut ahead of their license expiration, according to a Nov. 8 report from the Energy Information Administration.

Texas Grid Operator Finds No System Impact From Four Gigawatts of Generation Retirements by Early 2018 Thanks to Rise of Renewables

The Electric Reliability Council of Texas Inc. concluded that the majority of the plants are older and unable to compete with low gas prices and will be replaced by renewable generation, according to a Nov. 6 report by the agency.

Duke Energy Announces $3 Billion Investment in South Carolina's Grid Over 10 Years

Duke Energy Corporation unveiled a plan to make investments to bolster physical and cyber security of the state’s grid, enhance resilience against storms, and underground vulnerable sections of the transmission network, according to a company press release Nov. 3.

Feds to Invest $2.5 Billion to Overhaul Rural Transmission Grid in 27 U.S. States, to Spur Growth, Jobs

The U.S. rural grid infrastructure will be upgraded with a $2.5 billion investment in new transmission and distribution lines, upgrades to networks and facilities, as well as technological enhancement with $127 million earmarked for smart grid projects, according to a Nov. 2 press release from the U.S. Agriculture Department.

Rate Cases

New York Commission Suspends Central Hudson’s $61 million Revenue Increase Request, as Investigation Continues

The effective date of Central Hudson Gas & Electric Corporation’s proposed changes to increase its annual delivery revenues for electricity by $43 million, or 13.5 percent, and for natural gas by $18.1 million, or 18.5 percent, for the rate year ending June 30, 2019, is deferred through June 24, 2018, pending an ongoing investigation, according to a Nov. 9 notice from the New York Public Service Commission.

Central Maine Power Approved for 18 Percent Electricity Rate Hike Driven by Higher New England Auction Market Prices

The Maine Public Utilities Commission accepted bids resulting in a new standard offer price for customers of Central Maine Power of 7.921 cents per kilowatt-hour effective for a twelve-month term beginning January 1, according to a Nov. 8 press release. The increase was driven primarily by higher clearing prices in the New England forward capacity auction, the commission said.

California Regulator Wants to Slash Pacific Gas and Electric's Recovery for Nuclear Plant Closure Costs

The California Public Utilities Commission proposes to approve $190.4 million in rate recovery to cover Pacific Gas and Electric Company’s costs for retiring the Diablo Canyon nuclear plant when its licenses expire, in 2024 and 2025, less than the $1.76 billion that the utility requested, according to the commission’s Nov. 8 proposed decision. The commission finds that some cost recovery should be met through other proceedings, including an integrated resource plan, or through legislation.

Minnesota Power's Request for 8 Percent Electric Rate Hike Opposed by State Judge, Called 'Excessive'

Minnesota Power’s request for an annual increase to about $49 million, or approximately 8 percent, to pay for infrastructure investments, efficiency upgrades and business expenses, is too costly, and the existing rates should be maintained, state administrative law judge Jim Mortenson, said in a ruling Nov. 7.

Wyoming Commission Approves Black Hills Natural Gas Rate Hike

The commission approved Black Hills Inc.’s wholesale natural gas cost increase of $0.0801 per dekatherm for its residential, commercial and interruptible rate class, according to a notice published by the commission on Nov. 6.

Philadelphia Gas Works Rate Hike Cut to 6.8 Percent in Settlement with Pennsylvania Commission

The Pennsylvania Public Utility Commission approved a settlement for an increase of $42 million, or 6.8 percent, in Philadelphia Gas Works’s annual revenues, down from the initial boost of $70 million, or 11.6 percent, according to a Nov. 9 press release.

One-third of U.S. Households Struggled to Pay Energy Bills in 2015: Energy Information Administration

One in five households indicated that they reduced or sacrificed basic necessities to pay energy bills, while 14 percent said that they received a disconnection notice for energy service, according to an Oct. 31 report from the U.S. Energy Information Administration.

Consumers Energy's $2.04 Billion Cost Recovery Plan Wins Backing From Michigan Law Judge

Michigan Public Service Commission should approve Consumers Energy’s Power Supply Cost Recovery plan for 2017, seeking power supply costs of $2,044 billion through a factor of $0.00124 per kiloWatt hour for all customer classes, according to a Nov. 6 ruling by Dennis Mack, an administrative law judge with the state.

Other

U.S. House Lawmakers Introduce Bill to Expand Access to Fossil Fuel Reserves, Boost Domestic Production

A bipartisan group of lawmakers led by House Majority Whip Steve Scalise (R-LA) introduced the “SECURE American Energy Act” on Nov. 3, aimed at opening the outer continental shelf and federal lands to energy production, while also streamlining permitting processes.

Avista Projects $3-Million Budget for 2018 Demand Side Programs in Washington

Avista anticipates approximately 639,748 therm savings from its 2018 demand side program offerings for residential, low-income, and non-residential customers with a projected budget of $3,273,905, according to the company’s Nov. 7 filing with the Washington Utilities and Transportation Commission.

Top U.S. Science Agency Finds Human Activities "Extremely Likely" Cause of Global Warming, in Departure From Trump Administration's Stance

Human activities are the main cause of the observed global warming since the mid-20th century and there is no convincing alternative explanation supported by observational evidence, according to a Nov. 2 press release from the National Oceanic and Atmospheric Administration. The findings are at odds with statements made by top Trump officials.

Federal Lawmaker Proposes Bill to Restrict Natural Gas, Oil Drilling Operations Near Homes, Schools

U.S. House lawmaker Nanette Diaz Barragan, a Democrat representing California, introduced a bill (H.R. 4246) on Nov. 3 to amend the Mineral Leasing Act to prohibit oil and gas drilling operations within 1,500 feet from buildings that are entitled for special protection, such as a home, business, or school.