Welcome to EnerKnol Pulse! You've come to the right place if what you're after is a quick rundown of all the major regulatory actions across the North American energy sector. Email us your comments, feedback, questions at mb@enerknol.com.

February 5, 2018


Featured Topics

Expanding Renewables

Protecting Ratepayers

EVs and Tackling Emissions

Fossil Fuel and Pipeline Actions


Featured Entities

ALLETE

Ameren

Anadarko Petroleum

Chesapeake Energy

Columbia Gas

Devon Energy

Dominion

Enbridge

EOG Resources

Eversource

FirstEnergy

Great Plains Natural Gas

Hawaii Electric

Hawaiian Electric

Interstate Power & Light

Maui Electric

Montana-Dakota Utilities

Otter Tail

SCANA

SM Energy

Vancouver Energy

Top News

Eversource's $1.6 Billion Northern Pass Power Line Denied Key Permit, Casting Doubt on Future of Project

The New Hampshire Site Evaluation Committee unanimously rejected an application for Eversource Energy to construct the 192-mile Northern Pass transmission line project, over concerns about its impact on the economy. The decision comes a week after Massachusetts regulators selected the project as a sole winner among dozens of bids to deliver 9.4 terawatt hours of hydropower annually from Canada to New England. Eversource pledged to appeal the decision, saying it was “shocked and outraged.”

Connecticut Regulators Say Subsidies for Dominion Nuclear Plant Should Come with Ratepayer Protection Given Absence of Retirement Risk

The Connecticut Department of Energy and Environmental Protection and the Connecticut Public Utilities Regulatory Authority concluded that the state’s procurement of power supplies from Dominion Energy Inc.’s 2,100-megawatt Millstone nuclear plant should go forward because the generator is critical for the region’s fuel security and emission reduction goals. But the agencies said that any support for the plant should carry protections for customers, especially in the absence of any verified proof the generator is at risk of closure, according to an assessment by the agencies issued Feb. 1. The General Assembly has until March 1 to review and possibly act on the report.

Federal Appeals Court Orders FERC to Rewrite Rules for Funding Grid Upgrades, Siding with Transmission Owners

The D.C. Circuit Court instructed the Federal Energy Regulatory Commission to revise its rules that set the options for funding transmission system upgrades made when new generators are connected to the grid. Allowing generators to self-fund upgrades would have transmission owners bear the risks, liability and cost of operating the new facilities without receiving any return, representing an “attack” on their business model, and undermining their ability to attract new capital for upkeep and expansion of the system, Senior Circuit Judge Laurence Silberman said, writing for the majority. The court said that FERC’s argument that generators should be able to self-fund to avoid any discrimination from the transmission owner wasn’t supported by evidence. The case is Ameren Services Co. et al v. FERC (16-1075).

New York Unveils Master Plan to Deploy 2.4 Gigawatts of Offshore Wind by 2030

The New York State Energy Research and Development Authority released a roadmap to meet its offshore wind target, including identifying the most favorable areas for development, options for how to procure the capacity, costs and benefits and infrastructure requirements. As an initial step, the state will seek to buy at least 800 megawatts of offshore wind generation over the next two years. New York’s Clean Energy Standard requires half of the state’s electricity to come from renewable energy, like offshore wind, by 2030.

Expanding Renewables

Arizona Commissioner Proposes 80 Percent Renewable Goal by 2050 as State Seeks Update to Energy Policies

Arizona Corporation Commissioner Andy Tobin on Jan. 30 unveiled the Arizona Energy Modernization Plan, a proposal that sets stronger renewable energy targets, sets a goal to deploy three gigawatts of energy storage by 2030, and directs utilities to expand charging options to aid in the deployment of electric vehicles. The package marks the culmination of a years-long process by the commission to update its renewable standards, which stand at over a decade old.

New Jersey Governor Seeks to Jump-Start State's Stalled Offshore Wind Industry

New Jersey Governor Phil Murphy, a Democrat, signed an executive order on Jan. 31 directing the Board of Public Utilities to set up rules and, with the New Jersey Department of Environmental Protection, develop a plan to reach a state goal to deploy 3,500 megawatts of offshore wind energy generation by the year 2030. Murphy said that while the Offshore Wind Renewable Energy Credit program was enacted eight years ago, it has not been fully implemented and wind developers have not obtained permits from the Board of Public Utilities to move forward.

Hawaiian Regulators Approve Residential Energy Savings Programs Said Needed to Reach Island's 100 Percent Renewables Goal

The Hawaii Public Utilities Commission on Jan. 25 approved four residential demand response programs proposed by the HECO Companies seen as essential for the state to reach its goal of sourcing all of its power from wind and solar generation by 2045. The utilities will directly or indirectly control the operation of ratepayer’s energy-consuming devices, such as air conditioners, water heaters, storage batteries or electric vehicles, to gain the flexibility needed to match power demand with an increasingly intermittent and variable supply of power that fluctuates with the wind and sun. The programs include capacity service, frequency response, regulating reserve, and replacement reserve programs.

Trump Administration to Expand Renewable Energy Generation in California Desert to Support State’s 50 Percent Renewable Goal

The Bureau of Land Management is considering amendments to the Desert Renewable Energy Conservation Plan to open more of the 10.8 million acres of federal lands in the plan zone for renewable energy generation, according to the agency’s Feb. 1 press release. The plan is a major component of California’s renewable energy planning efforts, as a means to preserve desert ecosystems while allowing appropriate energy development. The bureau’s proposal is part of President Trump’s call to review actions that potentially burden the development of domestically produced energy sources. It opens a 45-day comment period.

Vermont State Lawmakers Seek to Boost Rooftop Solar by Simplifying Net Metering Regulations

A group of Vermont state House lawmakers, led by Democrat Jim Masland, introduced legislation on Jan. 26 that would require the utility commission to cut costs and simplify the application to net meter solar generators up to 150 kilowatts that have cleared the planning process. (H 721) Another proposal would require utilities to bear the cost of studies used to interconnect small renewable generators to the grid. (H 720)

Protecting Ratepayers

South Carolina House Passes Bill to End SCANA Customer Rate Increases Tied to Failed Nuclear Plant

The South Carolina House approved a measure on Jan. 31 that would end payments by customers of SCANA subsidiary South Carolina Electric & Gas Co. toward the failed V.C. Summer nuclear project. If enacted, the legislation will provide temporary relief until issues pending before the public utilities commission are resolved. It will likely deal a setback to Dominion Energy’s offer to buy SCANA, which hinges on continuing cost recovery through rates under the Base Load Review Act. (H 4375)

Colorado Commission Joins Wave of Regulators That Want Ratepayers to Benefit from U.S. Tax Cuts

The Colorado Public Utilities Commission announced that it wants to ensure that the lower tax obligations for utilities under the recently enacted Federal Tax Cuts and Jobs Act flow down to customers, joining dozens of other states seeking relief for consumers. The commission directed all gas and electric utilities to provide information on how the tax cuts will be calculated, when refunds could be awarded, and when new rates reflecting the new tax law will be set by Feb. 21, according to the agency’s Jan. 31 press release. The Trump administration signed into law legislation slashing the corporate income tax rate to 21 percent from 35 percent, at the start of the year.

Minnesota Commission Slashes ALLETE's Electric Rate Hike by 80 Percent, Leading to Cut in Power Bills

The Minnesota Public Utilities Commission approved a $12.6 million rate increase, compared to the $55 million requested by ALLETE Inc.’s subsidiary Minnesota Power Company, according to a Jan. 30 press release. The new rates, which take effect in late 2018, will lower the average consumer’s bill by about $1.18 per month compared to what they currently pay.

New Jersey Regulator Orders Public Utilities to Pass on Savings From Federal Tax Cuts to Ratepayers

The New Jersey Board of Public Utilities issued an order requiring utilities to extend any savings from the Federal Tax Cuts and Jobs Act of 2017 to ratepayers, according to a Jan. 31 press release. The board ordered that rate changes made to reflect the new tax law be deferred until April 1, and said that it would determine the method for providing refunds to consumers. The Trump administration signed into law legislation slashing the corporate income tax rate to 21 percent from 35 percent, at the start of the year.

Interstate Power and Light Unveils Energy Efficiency Program Seeking to Trim Annual Demand by 22-Megawatts

Interstate Power and Light Company, a subsidiary of Alliant Energy Corporation, proposed an energy efficiency program geared to saving 665 gigawatt-hours of electricity use through the five year period ending 2023, according to the application with the Iowa Utilities Board on Feb. 1. The natural gas component of the plan is expected to save more than 6.1 million therms over the period. The program is scheduled to start next year.

EVs and Tackling Emissions

EPA Approves Scaled Down Pollution Rule for Arkansas Coal Plants, Tossing $2-Billion Obama-Era Limits

The U.S. EPA announced Jan. 29 that it approved a more flexible plan for Arkansas to limit emissions of nitrogen oxide from coal-fired power plants across the state to address regional haze in lieu of a more costly federal program that had been imposed under the Obama administration. Since March, the EPA approved over 200 state environmental compliance plans as it seeks to roll back federal regulations seen as burdensome to industry.

New Jersey Governor Orders State to Rejoin Regional Carbon Market in Face of Growing Climate Risks, Fix 'Past Missteps’

New Jersey Governor Phil Murphy, a Democrat, signed an executive order on Jan. 29 directing the state’s environmental protection department and public utilities board to begin the process of rejoining the Regional Greenhouse Gas Initiative, the nation’s first mandatory cap-and-trade program to reduce greenhouse gas emissions. Murphy’s predecessor, Chris Christie, a Republican, withdrew the state from the initiative in 2012 citing a lack of effectiveness and uncertainty over its future. Christie vetoed the legislature’s attempt to rejoin the market last year. This comes after Virginia moved to join the regional marketplace in November.

California Governor Wants 5 Million Zero-Emission Cars on the Road by 2030, Pledges Billions in Funding

California Gov. Jerry Brown, a Democrat, on Jan. 26 signed an executive order setting a higher target for the adoption of electric and hydrogen-fueled vehicles in the state, building off the current goal of 1.5 million zero-emission vehicles by 2025. Brown also proposed an 8-year, $2.5 billion program to continue clean vehicle rebates and fund zero-emission charging and refueling stations. California has been a leader in electrifying the automotive fleet, a sector that accounts for half the state’s greenhouse gas emissions.

Colorado Rolls Out Plan for Charging Corridors to Boost Electric Vehicle Growth, Allow Statewide Travel

Colorado Governor John Hickenlooper, a Democrat, released a plan on Jan. 24 detailing action areas to accelerate electric vehicle adoption with a focus on building out fast-charging infrastructure through public-private partnerships. Colorado ranks seventh for the number of electric vehicles per capita, according to an Energy Department study.

Fossil Fuel and Pipeline Actions

Washington Governor Rejects Vancouver Energy's $210-Million Oil Terminal, Citing Risk of Spills

Governor Jay Inslee, a Democrat, denied an application by Andeavor Corp. (formerly Tesoro Corp.) and Savage Companies to build the Tesoro Savage Vancouver Energy oil rail terminal, underscoring the risks of oil spills and explosions, according to a Jan. 29 announcement from the administration. A vote by an advisory council in November recommended that the governor nix the project, citing impacts from increased rail traffic and geological hazards. Tesoro Savage has 30 days to appeal the governor’s decision in court.

Michigan Governor Resists Calls to Shut Enbridge Oil Pipeline Said to Put Great Lakes at Risk

Governor Rick Snyder, a Republican, dismissed calls from a state advisory board to close Enbridge Inc.’s 64 year-old Line 5 pipeline until it is inspected and any damages repaired and that the link shut down during severe weather. Snyder said that the prior tests showed the pipeline was not at risk of imminent failure, that shutting down the project in the winter could lead to a “propane supply crisis,” and that the board lacked sufficient votes for the resolutions to be adopted. Line 5 transports up to 540,000 barrels a day of light crude oil and natural gas liquids running from Wisconsin, under the Straits of Mackinac, through Michigan to Ontario, Canada.The governor had previously struck a deal with Enbridge on Nov. 27 requiring the Canadian company to replace a portion of the pipeline.

Minnesota Commission Launches Investigation of Natural Gas Utility Safety Practices to Comply with Federal Rule

The Minnesota Public Utilities Commissions issued an order Jan. 29 directing state natural gas suppliers to provide information on how they notify and charge customers for the installation of safety devices, known as excess flow valves, which are installed on distribution lines to prevent unplanned gas flows.The investigation stems from an August 2017 petition of Great Plains Natural Gas Co., a division of MDU Resources Group Inc., for approval of revisions to comply with a 2016 rule of the Pipeline and Hazardous Materials Safety Administration, which requires utilities to install such valves upon customer request.

U.S. Interior Department Advances Wyoming Oil, Gas Project Forecast to Yield up to 6 Trillion Cubic Feet of Gas

The Bureau of Land Management on Jan. 26 released an initial environmental analysis for the Converse County oil and gas project, a proposal by Anadarko Petroleum Company, Chesapeake Energy Corporation, Devon Energy, EOG Resources Inc., and SM Energy. The explorers seek to drill about 5,000 oil and natural gas wells on 1.5 million acres over a 10-year period. The project is estimated to yield about 94 million barrels of oil and 5.8 trillion cubic feet of natural gas, and generate $18 billion to $28 billion in revenues and economic activity. The bureau will accept public comments on the draft through March 12.

South Dakota Lawmakers Propose Ban on New Oil Pipelines in Wake of Major Keystone Spill

South Dakota state House Democrats including Shawn Bordeaux and Republican Ryan Maher introduced draft legislation on Jan. 25 that would impose a moratorium on the construction of new oil pipeline infrastructure in the state. TransCanada Corp.’s Keystone Pipeline leaked 210,000 gallons of oil in November in the northeast part of the state, marking the project’s largest release to date. (HB 1223)

West Virginia Commission Approves FirstEnergy’s Coal Plant Transfer Denied by Feds

The West Virginia Public Service Commission on Jan. 26 authorized FirstEnergy Corp. affiliate Allegheny Energy Supply Company to transfer ownership of its 1,300-megawatt Pleasants Power Station to Monongahela Power Company and Potomac Edison, both subsidiaries of FirstEnergy. The approval is conditioned on ratepayer protections including limitations on customer costs and on recovery of closing costs if the plant is retired early. The sale must also be approved by the Federal Energy Regulatory Commission, which rejected the transfer on Jan. 12 finding that sufficient safeguards weren’t in place to protect ratepayers. The plant transfer is aimed at addressing a deficit in power supplies that’s projected to grow over the decade.

U.S. Crude Oil Production in November Soared to Most in Nearly 50 Years as Shale Boom Expands: EIA

The nation’s crude oil production jumped to 10.038 million barrels per day late last year, just below the all-time record of 10.044 million barrels set in November 1970, according to EIA’s latest Petroleum Supply Monthly report published Jan. 31. The surge in supplies follows the advent of advanced drilling techniques, particularly fracking, which have cut the costs of extracting from prolific tight-rock formations. Shale now accounts for just over half of total production, up from less than 10 percent about a decade ago.

TransCanada’s Eastern Panhandle Gas Pipeline Expansion Clears Federal Environmental Review

The Federal Energy Regulatory Commission found that the Eastern Panhandle Expansion Project proposed by a subsidiary of TransCanada Corp. would not carry any significant environmental impacts. The project would add 46.6 million cubic feet per day of capacity for firm transportation service to markets in West Virginia, according to a Jan. 26 notice from the agency.

Montana-Dakota Utilities Apply for Corporate Reorganization to Streamline Operations

Montana-Dakota Utilities Co. filed an application with the Montana Public Service Commission on Jan. 31 seeking approval to implement a reorganization plan through which Montana-Dakota and Great Plains Natural Gas Co., currently operating divisions of MDU Resources Group Inc., will become a wholly-owned subsidiary of a newly formed holding company. Outstanding share of company common stock would be converted on a one-for-one basis into a share of common stock of the holding company. The companies seek approval by September 30.