The California legislature approved legislation on Aug. 29 that reinforces the state’s clean energy leadership with a goal of procuring 100 percent of the state’s electricity from renewable and zero-carbon resources by 2045. The bill would strengthen the Renewable Portfolio Standard to 60 percent by 2030, up from the current 50 percent. Hawaii was the first state to set a 100 percent renewable energy goal, but California’s move is historic in that it represents the world’s fifth-largest economy. The zero-carbon requirement gives room for resources beyond wind and solar. California currently gets about a quarter of its electricity from hydropower and nuclear – which do not qualify for the RPS – and 29 percent from renewables. The move comes as the state wrangles the Trump administration’s attempts to rollback climate policies while also fighting record wildfires attributed to weather-related conditions. (SB 100)

The Massachusetts Department of Public Utilities will open a new docket to investigate Eversource Energy’s proposed revisions to its net metering tariff to ensure compliance with legislation enacted on Aug. 9 amending the requirements for considering demand charges for net metered customers, according to an Aug. 29 memo. In January, the department approved demand charges called “monthly minimum reliability contribution” concluding that a cost shift exists between net metered and non-net metered customers. In response to the legislation, Eversource proposed revisions – to take effect Sept. 1 – clarifying that demand charges would only be applied when smart meters have been installed and customers would be informed of the date and time of the billed demand. Due to lack of adequate evidence regarding smart meter costs and the entity responsible to pay the costs, the department suspended the effective date of the tariff through Nov. 30 and asked Eversource to refile the tariff removing references to demand charges until a revised version that complies with the new law is determined.

The New Jersey Board of Public Utilities on Aug. 29 began the process of determining the eligibility criteria for nuclear plants to participate in the Zero Emission Certificate, or ZEC, program established under legislation enacted in May to compensate the fuel diversity and zero-carbon attributes of nuclear power. The law established a $300 million annual subsidy for the state’s nuclear plants, which account for 39 percent of its electricity generation. Under the legislation, electric distribution companies must file a tariff to recover from their retail customers a charge of $0.004 per kilowatt-hour for the emissions reduction benefits associated with the continued operation of qualifying nuclear plants. New Jersey is home to the 1.2-gigawatt Hope Creek Nuclear Generating Station owned by Public Service Enterprise Group, the 2.3-gigawatt Salem Nuclear Power Plant co-owned by Public Service and Exelon Corporation, and the 625-megawatt Oyster Creek Generating Station,m also owned by Exelon. Oyster Creek is scheduled to retire this October.

The U.S. Energy Department announced its investing $80 million to foster early-stage research in transportation technologies to allow for more affordable mobility, boost domestic energy security, and decrease the use of foreign-sourced critical materials, according to a Sept. 5 press release. Focus areas include batteries and electrification to enable quick recharge of multiple electric vehicles at very high power levels, high-temperature combustion environments for faster introduction of new materials into advanced vehicles, engine innovations, and technology integration to unite stakeholders to gather data on the effect of mobility services and solutions. The department earmarked another $80 million for bioenergy research projects that will help achieve the goal of lowering the cost of bio-based drop-in fuels to $3 per gallon by 2022. The selected bioenergy projects will strive to create highly efficient conversion processes to increase fuel affordability, enhance efficiency of carbon utilization in algal systems, study integrated processes to produce biopower and bioproducts, and facilitate production of affordable and sustainable non-food energy crops for feedstock use.

U.S. Senator Lisa Murkowski, a Republican representing Alaska, introduced legislation on Sept. 6 that would direct the U.S. Energy Department to accelerate innovation in advanced nuclear technology by aligning the federal government, national labs, and private industry. The department would “set strong goals and a coherent strategy” to facilitate the coordination, enabling the U.S. to compete with other nations. The agency would also build a fast neutron-capable research facility to test reactor components for safety and reliability, which are critical to licensing advanced concepts. The bill would extend the length of power purchase contracts to 40 years, up from 10 years under current law, and also create a pilot program for a federal contract that exceeds 10 years. A university nuclear leadership program would establish the highly-skilled workforce needed to develop and regulate the next generation reactors. (S.3422)

The California legislature approved a bill on Aug. 27 that would require the Energy Commission to conduct a statewide assessment of electric vehicle charging needs to help meet the goal of putting five million zero-emission vehicles on the road by 2030. The agency will explore all necessary infrastructure including make-ready equipment and offroad electrification. The study, to be updated at least once every two years, would be prepared in coordination with the state utility commission and the Air Resources Board. According to an Aug. 20 report by the California Energy Commission, California’s goal to have five million zero-emission vehicles on the road ahead of the 2030 target date will require the installation of over a quarter-million chargers. Zero-emission vehicles are critical to meet the state’s goal to reach 40 percent emissions cuts by 2030 given that the transportation sector is the largest greenhouse gas emitting segment accounting for about half of California’s emissions.

Trident Renewables Holdco LLC, a subsidiary of EFS Trident Holdings LLC, asked the Texas Public Utilities Commission to authorize the sale and transfer of tax equity interests in renewable electric generation assets held by its affiliate GE Energy Financial Services Inc., according to a Sept. 7 notice. GE Energy owns tax equity interests in three Texas wind projects – the 218-megawatt Pattern Panhandle Wind, the 289-megawatt Miami Wind I Holdings, and the 161-megawatt Spinning Spur Wind Two. Under the transaction, GE Energy would first transfer its interests in the projects to Trident Renewables, which would then sell the interests to two other investors. The applicants seek to close the transaction by Dec. 31.

The Federal Energy Regulatory Commission on Aug. 23 rejected Southern California Edison Company’s proposal to curtail electricity delivery for customers with energy storage devices before considering other retail and wholesale users, in order to maintain system reliability during periods of high demand. The commission said it would be unduly discriminatory to treat storage customers differently without providing an opportunity to have their devices studied to pay for system upgrades needed for charging access. The company reasoned that there is currently no process to treat these customers in the same way as others, but FERC said the explanation does not justify the revision. The commission asked the company to continue its ongoing internal process to develop a procedure to account for the charging demand of storage devices to avoid preferential treatment.

The California Public Utilities Commission proposed to develop a solar information packet to help utility customers planning to install solar on single-family homes and take service under a net metering successor tariff, according to the agency’s Aug. 29 proposed decision. Investor-owned utilities would have to configure their interconnection portals to ensure that only solar providers with a valid license can install systems that interconnect with the utilities’ distribution systems. To verify that customers have received the information packet and disclosure documents before making an agreement, utilities must require solar providers to upload signed copies of the relevant documents to get interconnection approval. Utilities would forward the contracts to the Energy Division, which would examine whether they are reasonable. The commission seeks to address exploitative marketing practices, such as deceptive information regarding costs and benefits, including bill savings and treatment of renewable energy credits. The product is expected to be launched in the second quarter of 2019. Utilities would have 90 days from the date of the decision to propose a uniform method to assess solar complaints.

The Michigan Public Service Commission ordered Indiana Michigan Power Co. to lower its revenue requirement by $8.68 million to reflect savings from the federal tax law in a move expected to cut residential bills by about $1.80 per month, according to the agency’s Aug. 8 news release. The commission so far authorized about $379.5 million in rate cuts for 10 regulated utilities under the first round of adjustments called Credit A. The commission completed Credit B impacts for Northern States Power Co., authorizing a $1.85-cut in residential bills. Under tax reforms passed in December 2017, the Trump administration slashed the corporate income tax rate to 21 percent from 35 percent, effective Jan. 1. Indiana Michigan Power is a unit of American Electric Power.

The Connecticut Public Utilities Regulatory Authority assessed penalties against Houston-based Spark Energy LP for conducting misleading sales practices, subjecting the retail energy provider to one-year of monitoring. Third-party marketers used by Spark Energy failed to provide proper identification, leaving the impression with prospective customers that they were representatives with Connecticut Light and Power; failed to explain the purpose of the sales call, which was to have them enroll them with Spark; and failed disclose its current charges, all infractions of state laws, according to a Sept. 5 notice by the commission. Spark also failed to directly train its third­-party agents, delegating guidance to its third-­party marketing vendor, according to the notice. The agency said the violations are the latest in a series committed by the provider stemming back to 2013. Spark denies its culpability and blames the marketer, which it said it has terminated. Spark has 20 days to request a hearing.

The Rhode Island Public Utilities Commission on Aug. 24 approved a settlement cutting National Grid plc’s one‐year base rate request by 75 percent, and lowering the company’s allowed return‐on‐equity to 9.275 percent from the current 9.5 percent. The agreement slashes the company’s originally requested revenue hike by about $54 million and refunds all the benefits of the federal tax law as a direct offset to rates over the three-year period. Low-income customers will benefit from a 25 percent discount, which is double the current level. The agreement also advances the state’s Power Sector Transformation initiative that envisions reforms to further clean energy objectives. The company will initiate electric vehicle and energy storage programs, create a performance incentive mechanism to boost efficiency, and establish a stakeholder process to develop advanced meter infrastructure. Under tax reforms passed in December 2017, the Trump administration slashed the corporate income tax rate to 21 percent from 35 percent, effective Jan. 1.

The Indiana Utility Regulatory Commission on Aug. 29 approved a settlement allowing Indianapolis Power & Light Co. to flow savings from the federal tax cut over a six-month period beginning with the September 2018 billing cycle. The settlement resolves the first phase – intended to provide immediate rate relief – of the commission’s two-phase investigation to address the federal tax reforms. The credits, which will be passed through the company’s environmental cost recovery mechanism, will lower monthly residential by 1.43 percent. The second phase, which addresses longer term tax issues, will be considered in the company’s pending rate case. Under tax reforms passed in December 2017, the Trump administration slashed the corporate income tax rate to 21 percent from 35 percent, effective Jan. 1. Indianapolis Power & Light is a unit of AES Corporation.

PJM Interconnection LLC won approval from federal regulators to push back the start of next year’s annual auction, used for locking in future power supplies, by three months to Aug. 14-28, 2019, to provide extra time for the operator of the nation’s largest power grid to make sweeping changes to the market. The move comes after the Federal Energy Regulatory Commission stretched out the commenting process for developing replacement rules for the capacity market, with initial and reply comment deadlines moved to Oct. 2, and Nov. 6. FERC ordered PJM to shore up its annual capacity auction to head off a growing influx of state-subsidized generation that threatens to depress prices and squeeze revenues for competing power plants.

The Public Utilities Commission of Ohio on Aug. 29 released a report that charts a path forward for the state’s grid modernization endeavor, creating a regulatory paradigm to foster innovation that allows for an enhanced customer experience. The plan envisions the modern grid as an open access platform that facilitates the seamless interface of evolving applications, as well as a marketplace that allows customers to access innovative products and services from entities of their choice. The architecture calls for the development of a cyber-physical platform, as well as standardized access to customer energy usage data for third parties across the four territories of the electric distribution utilities. The roadmap would create a PowerForward Collaborative and spinoff work groups to monitor the marketplace for a range of issues, including evaluating rate design, using data to enhance retail energy offerings, and devising cybersecurity plans. The commission plans to establish separate dockets for the collaborative and its workgroups by Jan. 1, 2019. Each utility would report the status of its grid architecture by April 1, 2019 and file its cybersecurity plan by Dec. 31, 2019.

ISO New England Inc. proposed interim revisions for a short-term, cost-of-service agreement for power plants retained to address fuel security concerns, in an Aug. 31 filing with the Federal Energy Regulatory Commission. The revisions, which respond to the commission’s July 2 order, apply for the next three capacity auctions, with the grid operator relying on longer-term solutions for later commitment periods. ISO New England proposes to treat these resources as price takers in the next auction, with clearing prices based on their resource adequacy contributions, and intends to develop an appropriate compensation mechanism in time for the subsequent two auctions. With regard to cost allocation, ISO-NE proposes to apply the method that was used for its winter reliability program which addressed similar concerns to ensure adequate energy supply in the region.

The Electric Power Supply Association urged the Federal Energy Regulatory Commission to find that the California Independent System Operator Corporation’s resource adequacy construct is fundamentally flawed as it has forced the grid operator to rely on out-of-market mechanisms to obtain the capacity needed to maintain reliability. The group sided with CXA La Paloma LLC which filed a complaint in June alleging that the “patchwork approach” has led to insufficient revenues causing new and efficient generators to go bankrupt or exit the market. The growing need for flexible generation to smooth the variable output of renewables – which will compound with new building standards that mandate solar panels on new homes – will increase the dependence on short-term out-of-market procurements. The group warned that failure to compensate independent generators will deter new entry, leading to higher prices for tighter supply and even shortages. To facilitate a durable market mechanism, the group asked the commission to order reforms to develop a three-year forward capacity market with mandatory auction participation and buyer-side mitigation rules. CXA La Paloma owns the 1,124-megawatt natural gas-fired La Paloma generating facility in California.

Dearborn Industrial Generation LLC asked the Federal Energy Regulatory Commission to authorize the sale of certain transmission lines and related facilities in its Michigan natural gas-fired power plant to International Transmission Company, according to an Aug. 28 application. The sale is part of a larger transaction which includes assets owned by steelmaking company AK Steel Corporation and automobile manufacturer Ford Motor Company for a total purchase price of $36,789,622. The assets were built with the sole purpose of supplying the nearby AK Steel and Ford facilities and wholesale customers were not involved, but circumstances have changed. Dearborn Industrial now sells energy and capacity in the Midwest wholesale power market formed in 2001 and Detroit Edison Co. sold its transmission assets that interconnect with facilities that are proposed for sale. Dearborn Industrial Generation is owned by CMS Energy Corporation. International Transmission Company is a subsidiary of ITC Holdings Corp, the only fully independent transmission company in the U.S. ITC Holdings is owned by Fortis Inc. and GIC Private Limited.

The Federal Energy Regulatory Commission and the U.S. Transportation Department’s Pipeline and Hazardous Materials Safety Administration entered into an agreement to expedite the review of proposed liquefied natural gas projects, according to an Aug. 31 news release. The collaboration establishes a framework that will improve information sharing practices to ensure that the agencies are fully informed on safety impacts of the proposed projects. The department, which oversees siting and design of LNG facilities, will review project applications for compliance with safety standards and send a letter to FERC on its findings. FERC will incorporate the findings in its decision-making process to determine whether a proposed LNG facility is in the public interest.

U.S. natural gas production is on pace to grow 10 percent in 2018, compared to the prior year, on the back of gains in the nation’s three major drilling regions, according to an Aug. 28 report from the U.S. Energy Information Administration. The Appalachian Basin in the Northeast, Permian Basin in western Texas and New Mexico, and the Haynesville Shale in Texas and Louisiana represent nearly half the nation’s total production, up from less than 15 percent in 2007 as advanced drilling methods are boosting productivity. The Appalachian and Permian region also benefit from new infrastructure buildout, while the Haynesville region is experiencing higher rig counts attributed to recovering crude oil prices. By comparison, the contribution of the rest of the U.S. declined to 28 percent from 60 percent over the same period, while the Gulf of Mexico’s share dropped to 3 percent from 12 percent.