The New York State Public Service Commission loosened the requirements for small hydro, wind, and biomass generation plants to qualify for state financial support in order to avert closure, according to the commission’s March 16 order. The revisions include expanding eligibility to generators in operation before 2015, increasing the size of hydroelectric facilities to 10 megawatts from 5 megawatts, streamlining the review process and creating a standard contract term of three years with the potential for renewals. Under the program the state awarded $38.5 million to support about 44 megawatts of capacity in 2016, according to the filing.

The Montana Public Service Commission upheld its prior finding that three wind farms in the state qualify for favorable power supply contracts with NorthWestern Energy, citing the Federal Energy Regulatory Commission’s certification of the projects, according to a March 12 order by the agency. NorthWestern argued that the overlapping interests and close proximity of the wind farms justified treating them as one 9 megawatt project, which would render the facilities in excess of the 3-megawatt limit for qualifying for the rates. Utilities have chafed under the mandate by the Public Utility Regulatory Policies Act that calls for electric utilities to buy energy and capacity from small power producers at the so-called avoided cost rate amid a proliferation of renewable projects.

Republican Gov. Charlie Baker introduced legislation on March 15 that would direct retail electric suppliers to buy a minimum amount of renewable energy and demand response to offset spikes in energy consumption, when the highest-emitting, most expensive generators are typically dispatched. The “clean peak standard” proposal is part of legislation to invest over $1.4 billion in climate change adaptation and mitigation. California enacted similar legislation last year.

The cost of utility-scale solar-powered generators consistently declined in a range of 10 percent to 15 percent per year from 2010 through 2016, according to sources reviewed by the U.S. Energy Information Administration, including the U.S. Department of Energy’s National Renewable Energy Laboratory and the Lawrence Berkeley National Laboratory. This year, the EIA’s Annual Energy Outlook projects capital costs of $1.85 per watt for fixed-tilt photovoltaic systems and $2.11 per watt for single-axis tracking systems. Earlier this year the Trump administration imposed tariffs on imported silicon solar cells and modules, raising the specter of a rare hike in prices.

The Pennsylvania Public Utility Commission issued a draft policy clarifying that third-party electric vehicle charging is not considered resale or redistribution of power, in a bid to remove regulatory uncertainty and support the continued build-out of charging infrastructure, according to the commission’s March 15 press release. The proposal will open a 45-day comment period. The state had over 9,000 plug-in vehicles on the road last spring, according to advocate Plug In America.

NorthWestern Energy asked for approval from the Federal Energy Regulatory Commission to purchase Two Dot Wind Farm from a unit of New Jersey Resources Corporation, according to a March 16 filing. NorthWestern already purchases all of the wind farm’s output under a long-term power purchase agreement so the transaction is said to have no effect on competition. The applicants seek U.S. authorization by April 30.

EDF Renewables asked the Federal Energy Regulatory Commission to reject an agreement for AltaGas Sonoran Energy Inc. to connect a solar farm to the California Independent System Operator Corporation’s grid, alleging a violation of procedures that could delay or hike costs for other generator projects in the interconnection queue. EDF argues that the California system manager failed to “re-verify” AltaGas’s compliance with interconnection rules when the project was switched to a solar farm from natural gas. The commission issued an order on March 16 to establish procedures for settlement discussions and hearing. EDF Renewables is a subsidiary of Électricité de France SA.

The New York State Public Service Commission declined proposals to move forward with new transmission projects to address environmental goals and other public policy objectives, finding that it needs to further study the issue, according to a March 16 order. A dozen utilities and transmission developers from NextEra Energy Inc. to Avangrid Networks Inc. recommended new grid projects to achieve targets in one or more state and federal policies, from the New York Reforming the Energy Vision, the Clean Energy Standard, the New York State Energy Plan, the Regional Greenhouse Gas Initiative, as well as the U.S. EPA’s Clean Power Plan. The state solicits input on the needs of the grid every two years as part of the New York ISO’s transmission planning process. Avangrid is owned by Iberdrola SA.

Rocky Mountain Power, a division of PacifiCorp and Berkshire Hathaway Inc., received a 30-day extension for the deadline to process applications for connecting more complex customer-sited generation, like rooftop solar panels, to the grid, for a six month period, according to a March 21 order from the Utah Public Service Commission. The utility reported an uptick in applications as the state is shifting its compensation to export credit rates from the old net metering regime.

The Georgia Public Service Commission announced that it approved Dominion Energy Inc.’s acquisition of SCANA Corporation, which includes a $7.9 billion all-stock merger and the assumption of SCANA’s debt, according to a March 21 press release. The companies announced the merger in January after SCANA subsidiary South Carolina Electric & Gas Co. decided last July to abandon a $9-billion expansion of the V.C. Summer nuclear plant. The deal still needs approval from U.S. Nuclear Regulatory Commission, Federal Energy Regulatory Commission, and the South Carolina and North Carolina utility commissions. Dominion said it seeks to complete the transaction by year end.

The Georgia Public Service Commission announced March 20 that it reached a unanimous decision to cut the fees collected from Georgia Power Co.’s customers to finance the construction of its two nuclear units at plant Vogtle to reflect reductions in the corporate income tax rate and payments received from manufacturer Toshiba Corporation. The reductions in the so-called Nuclear Construction Cost Recovery fee are expected to yield $139 million in savings this year, or a cut of about $1 for the average residential customer’s monthly bill. The troubled nuclear project at Vogtle has been mired in delays and cost-overruns, which led U.S.-based subsidiary Westinghouse Inc. to file bankruptcy last March. Georgia Power is a subsidiary of Southern Co.

The Federal Energy Regulatory Commission on March 15 announced a series of actions to ensure that electric transmission companies, and owners of natural gas and oil pipelines charge rates that reflect the lower 21 percent income tax rate set under the Trump administration’s historic tax reforms. FERC ordered nearly 50 electric transmission companies to revise rates that currently reflect the older income tax law, while issuing a waiver to enable mid-year rate adjustments by the Public Service Company of Colorado and certain transmission owners in the Midcontinent Independent System Operator Inc. For natural gas pipeline companies, the commission issued a rulemaking notice to determine whether unfair rates are being collected and requiring a one-time report on the effect of the tax law and changes to the commission’s income tax allowance policies. Tax changes for oil pipelines will be considered in the commission’s 2020 five-year review. The commission is also seeking information on how to treat accumulated deferred income taxes and bonus depreciation as to electric companies, and gas and oil pipelines.

Great Plains Energy Inc. subsidiaries Kansas City Power & Light Co. and KCPL-Greater Missouri Operations Co. seek approval from the Missouri Public Service Commission for a boost in annual electric revenues of $16.4 million and $19.3 million, respectively, reflecting fluctuations in fuel and power costs. The higher revenues would hike the average monthly bill by about $3 and $2. The companies said the rate update will pass on all the savings from the federal tax cuts. Hearings are set for September. Together the companies serve about half a million customers in the state.

The Federal Energy Regulatory Commission rejected North American Energy Markets Association’s “2018 Power and Gas Tariff,” finding that the filing has nothing to do with the terms governing energy transmission or sales, but merely pertains to bilateral sales contracts, according to a March 19 order. The commission set a process to determine whether the association’s tariff should be cancelled. The North American Energy Markets Association, formerly known as the Mid-Continent Energy Marketers Association, is a nonprofit trade group representing 150 members with operations in 48 states and Canada, serving over 100 million electric and gas customers.

The Iowa House commerce committee cleared legislation on March 15 that would prohibit the Iowa Utility Board from requiring electric utilities and natural gas utilities to adopt energy efficiency or demand response programs with costs that exceed 2 percent and 1.5 percent, respectively, of annual rate revenues. The bill also would permit customers to request permanent exemptions from the programs. A similar measure passed the state Senate on March 6. (SF 2311)

The Federal Energy Regulatory Commission on March 23 issued a draft environmental review finding that Williams Partners LP’s Northeast Supply Enhancement Project would result in some adverse impacts that could be addressed through additional measures. The project includes about 40 miles of onshore and offshore pipeline, adding about 400,000 dekatherms per day of natural gas pipeline capacity to serve customers in the New York City area. Williams seeks to place the project into service in time for the 2019-2020 winter heating season.

The U.S. Court of Appeals for the District of Columbia Circuit on March 20 ruled that the U.S. Environmental Protection Agency, in a June 2012 action, reasonably determined that compliance with its 2011 Cross-State Air Pollution Rule or CSAPR satisfies the regional haze rule requirements for power plants in states subject to CSAPR. The 2011 rule requires certain eastern states to improve air quality by cutting power plant emissions that cross state lines and affect air quality in downwind states. The court also upheld the agency’s disapproval of state haze rule plans based on the 2005 Clean Air Interstate Rule that was replaced by CSAPR. The regional haze rule was implemented in 1999 to address impairment in air quality and visibility in national parks and wilderness areas from haze-causing pollutants emitted from power generation and other industrial activities. The case is Utility Air Regulatory Group v. EPA (12-1342)

The Maryland Department of the Environment issued a wetlands and waterways permit for TransCanada Corp.’s controversial Eastern Panhandle natural gas expansion project, parts of which would run through Maryland under the famed Potomac River. The project, which includes 3.5 miles of pipeline with enough capacity to deliver 50 thousand dekatherms per day, would connect a TransCanada pipeline in Pennsylvania to Mountaineer Gas’ system in West Virginia. It cleared federal environmental review in January.

A unit of FirstEnergy Corp. asked the Federal Energy Regulatory Commission to authorize the sale of its Bay Shore power plant in Lucas County, consisting of a 136-megawatt coal unit and a 16-megawatt oil-fired unit, to a fund managed by ArcLight Capital Holdings LLC, according to a March 20 filing with the agency. The companies seek approval by June 18. FirstEnergy has looked to sell off its generators in wholesale markets amid falling power prices and stagnant electricity demand.

The New York Independent System Operator Inc., Consolidated Edison Company of New York Inc., and Bayonne Energy Center LLC filed an interconnection agreement with the Federal Energy Regulatory Commission reflecting the addition of 132 megawatts of natural gas-fired generating capacity to the existing 512 megawatt Bayonne facility owned by Macquarie Infrastructure Corporation. The applicants said that the agreement supersedes the previous agreement that the commission accepted in December 2013, according to a March 22 filing.

The California Legislature passed a joint resolution on March 7 supporting a prohibition on new oil and gas drilling in federal waters off the state’s coast, citing the risk of hazardous oil spills, an acceleration of climate change and conflicts with renewable energy goals. California joins states like Florida and New York, which have sought to bar an expansion of offshore drilling. The White House seeks to rollback restrictions on fossil fuel production to position the nation as a dominant player in the global marketplace. (AJR 29)