State Legislatures Seek to Support Struggling Coal and Nuclear Plants

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

Illinois HB 6576 (Energy and Environmental Security Act), introduced on May 10, aims to support the hard-hit coal industry in the state by incentivizing clean coal generation. In a similar vein, the Next Generation Energy Plan, a comprehensive energy policy unveiled on May 5, includes provisions to support Exelon’s ailing nuclear power plants in Illinois. The implications from the Illinois bills --trying to influence market outcomes through out-of-market means -- will not only be relevant to coal and nuclear power in the state, but also for the debate over out-of-market versus market-based policy options in other RTOs and ISOs

Impact of New Pipeline Infrastructure Tied to Firm Capacity Contract Debates

EnerKnol Research Reports, Fossil Fuels, Natural Gas, PRODUCTS

On May 2, 2016, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment for the Atlantic Bridge natural gas pipeline project that would supply New England states and the Maritime provinces of Canada. The project would provide additional firm pipeline capacity required to meet Northeast market growth and has preexisting agreements to account for its entire capacity. FERC has convened a technical conference to consider wholesale market rules that encourage firm capacity contracts to facilitate pipeline expansions and projects. Electric market design changes providing ways to recover the cost of firm pipeline capacity – where needed for electric reliability – would support existing and incentivize additional pipeline infrastructure necessary to alleviate constraints.

Supreme Court Rules Maryland Power Contract Structure Unconstitutional

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

On April 19, 2015, the U.S. Supreme Court ruled that a Maryland program to subsidize the participation of a new power plant in the wholesale energy market infringed on the Federal Energy Regulatory Commission’s (FERC) exclusive jurisdiction over wholesale electricity rates. The Court limited its ruling to the contractual structure of the Maryland program and specified that states may promote generation through other measures that do not intrude on FERC authority. FERC-state jurisdictional overlap will continue to grow as the energy landscape further evolves to incorporate new generation portfolios and comply with environmental mandates.

New York Electric Utilities and Solar Companies Partner to Revalue Solar

EnerKnol Research Reports, PRODUCTS, Renewables, Solar Power

On April 18, 2016, a coalition of New York State electric utilities and solar companies jointly proposed a distributed generation compensation model that addresses cost-sharing issues in transitioning from net energy metering (NEM). As utilities and state regulators continue to debate over the valuation of solar power, the New York proposal could set a national precedent for utility-industry collaboration to support solar growth while addressing cost-sharing issues.

California Addresses Gas Shortage Risks Following Aliso Canyon Leak

EnerKnol Research Reports, Fossil Fuels, Natural Gas, PRODUCTS

On April 5, 2016, California energy agencies released an action plan identifying measures to preserve gas and electric reliability in the greater Los Angeles area following a major leak at the Aliso Canyon underground natural gas storage facility. The plan is expected to reduce the possibility of electric interruptions, although it will not completely eliminate the risk. The incident, which has triggered regulatory efforts at state and federal levels, could bolster the Administration’s plans to curb methane emissions and further regulate underground storage.

Utah Law Expands Energy Storage Markets to Meet Growth of Renewables

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

On March 29, 2016, Utah signed into law the Sustainable Transportation and Energy Plan Act (SB 115), which establishes utility investments in battery storage, electric vehicle infrastructure, and several clean energy programs. The new law seeks to boost energy storage solutions to improve the reliability and cost-efficiency of the electric grid, and joins a list of states enacting similar measures, including California, New York, and Texas. New regulatory measures at the state level will expand opportunities for emerging storage technologies, such as lithium-ion batteries, flywheels, and sodium-sulfur battery systems, to provide better operational flexibility and faster response.

DOE Sets Precedent with Interstate Transmission Project Overriding State Concerns

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

On March 25, 2016, the Department of Energy (DOE) announced its decision to participate in the development of the Plains & Eastern transmission project, a 705-mile direct current transmission line, which would deliver approximately 4,000 MW of wind power from the Oklahoma and Texas Panhandle regions to the Mid-South and Southeast. The decision marks the first time that the DOE has used congressional authority under the 2005 Energy Policy Act that allows the Department to bypass state approval by directly partaking in a major interstate infrastructure project. Should the project succeed, many others could follow, boosting the development of renewable energy in the wind and solar regions in the upper Great Plains, Rocky Mountains, and Southwest desert.

PHMSA Proposes Revisions to Expand Scope of Natural Gas Pipeline Safety Regulations

EnerKnol Research Reports, Fossil Fuels, Natural Gas, PRODUCTS

On March 17, 2016, the Pipeline and Hazardous Materials Safety Administration (PHMSA) proposed revisions to safety standards for onshore natural gas transmission and gathering pipelines. The revisions could impose significant regulatory requirements for additional miles of natural gas pipelines, including pre-1970 pipelines previously exempt from PHMSA regulations, and are estimated to cost industry between $39.8 and $47.4 million a year. Regulatory requirements for automatic shut-off valves and underground storage have been postponed for future rulemaking.

California Tariff Proposal Opens Wholesale Market to Small Distributed Energy Resources

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

New policy proposals at both regional and state levels could increase access to wholesale markets for aggregated distributed energy resources (DERs). The California Independent System Operator (CAISO) filed tariff revisions with the Federal Energy Regulatory Commission (FERC) on March 4, 2016, to enable aggregated DER to participate in the ISO’s wholesale markets. DER initiatives in New York, Hawaii, and Texas could also identify optimal solutions to balance renewable energy growth with grid safety and reliability. Access to these markets will be a critical advancement for rooftop solar and solar storage, particularly as DER adoption continues to expand with enhanced technology capabilities, environmental regulations, and fossil-fuel retirements.

Oregon Bill Sets Precedent To Phase Out Coal

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

Oregon’s SB 1547, signed into law on March 8, 2016, will phase out coal-fired generation from the state’s electricity mix by 2035 and double the state’s Renewable Portfolio Standard (RPS) to 50 percent by 2040. The coal phase-out will require utilities to cease importing coal-fired power to Oregon customers, while the ambitious RPS goal will shape the state’s energy mix, corresponding with renewable generation’s ability to displace fossil fuels.

Washington DC Regulators Propose Additional Requirements For Exelon-Pepco Merger

EnerKnol Research Reports, Power & Utilities, PRODUCTS, Smart Grid

On February 26, 2016, the Public Service Commission of the District of Columbia (DC PSC) rejected a proposed merger for Exelon Corporation’s acquisition of Pepco Holdings, but proposed alternative terms that would require active participation in renewable energy initiatives and improved cost allocation. The growing complexity of the approval process demonstrates the need for more flexible merger plans that address infrastructure modernization and environmental goals.

New York Seeks To Redesign Compensation To Keep Nuclear Plants Alive

EnerKnol Research Reports, Nuclear Power, PRODUCTS, Renewables

On February 23, 2016, the New York State Public Service Commission (NY PSC) announced a plan to preserve financially-struggling nuclear power plants, which, if closed, would negatively impact the state’s ability to meet its clean energy and emissions reduction objectives. The plan could set the stage for additional policy changes, since sustained operation of existing nuclear plants requires long-term financial viability facilitated by an effective market design that recognizes the range of nuclear benefits.