Access Northeast $3B Pipeline Project in Peril as Utilities Cancel Capacity Contracts

After a court ruling forbidding the Massachusetts Department of Public Utilities to approve contracts requiring electric customers to pay for new gas pipelines, electric utilities have withdrawn their petitions to acquire capacity on the Access Northeast. The ruling deals a setback to New England state plans examining ways to advance regional pipeline projects through capacity contracts with electric distribution companies.

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Enerknol’s Visual Primer – Access Northeast $3B Pipeline Project in Peril as Utilities Cancel Capacity Contracts

After a court ruling forbidding the Massachusetts Department of Public Utilities to approve contracts requiring electric customers to pay for new gas pipelines, electric utilities have withdrawn their petitions to acquire capacity on the Access Northeast. The ruling deals a setback to New England state plans examining ways to advance regional pipeline projects through capacity contracts with electric distribution companies.

Arizona Rate Case Decision Delays Solar Tariff Revisions

In approving new rates for UNS Electric, the Arizona Corporation Commission has delayed a decision on net energy metering (NEM) tariff and demand charges for residential solar until the completion of its Value of Solar (VOS) study. The decision reflects the importance of data-driven decisions to prevent adverse impacts to the growing solar industry as utilities continue to seek rate structures that meet customers’ evolving usage patterns, reduce cross-subsidies, and enhance recovery of fixed costs.

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California Proposes CPP Compliance Based on Existing Cap-and-Trade Scheme

The California Air Resources Board (CARB) has issued a proposal to comply with the Clean Power Plan (CPP) based on California’s existing cap-and-trade program, together with complementary state policies, such as renewable fuel standards and energy efficiency requirements. The action makes California the first state to forge ahead with CPP implementation efforts despite pending judicial review and adds momentum to integrating existing market-based emissions programs as an efficient way to comply with the CPP.

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Massachusetts Energy Bill Boosts Prospects for Offshore Wind and Energy Storage

Massachusetts H. 4568 (An Act to promote energy diversity) will shape the state’s energy future with an ambitious offshore wind energy target and lead to energy storage procurement targets with opportunities for utilities to own energy storage. The policy will likely provide a much-needed impetus for the U.S. offshore wind industry and also help other industries, such as solar companies that offer solar-plus-storage products.

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Court Stay of Regional Haze Rule Adds to Judicial Scrutiny of EPA Authority

On July 15, 2016 the U.S. Court of Appeals for the Fifth Circuit granted a stay of the Environmental Protection Agency’s (EPA) regional haze rule for Texas and Oklahoma pending judicial review. The decision questions the Agency’s ability to claim that regional rules have national scope and adds to the list of pending litigations against EPA regulations, most notably, the Supreme Court’s February action granting a stay of the Clean Power Plan (CPP) which set carbon dioxide regulations for existing fossil fuel-fired power plants. Ongoing litigations highlight increasing judicial scrutiny of EPA regulations due to accusations of overreach and failure to properly consider costs and impacts of proposed or finalized rules.

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New York Proposes Nuclear Subsidy Based on Social Cost of Carbon

The New York State Public Service Commission (NY PSC) has issued a proposal to subsidize nuclear power generating facilities that may otherwise be retired to preserve their zero-emission attributes as part of the state's Clean Energy Standard (CES). The subsidy program could prompt additional policy changes, especially in terms of market design, as retention of existing nuclear plants requires long-term financial viability, which in turn hinges on wholesale markets recognizing the benefits of nuclear power.

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