Welcome to EnerKnol Pulse, where our mission is to bring you a roundup of the most important energy sector news for the past week, powered by the EnerKnol Platform. Please enjoy this complimentary edition.

December 11, 2017


Featured Topics

Fossil Fuels and Pipelines

Renewable Policies and Projects

Transmission and Storage


Featured Entities

Citi

EDF Renewables

Emera

Hecate

MidAmerican

NSTAR

PJM

Rattlesnake TX Holdings

Rocky Mountain Power

Rover Pipeline

Saturn Power

SPP

TransCanada

Western Massachusetts Electric

Top News

Nebraska to Consider Final Challenges to TransCanada's Controversial Keystone XL Oil Pipeline

The Nebraska Public Service Commission will hold a hearing Dec. 12 to weigh appeals to its permit allowing TransCanada Corp. to construct the 280-mile Keystone XL oil pipeline along one of its proposed routes. TransCanada said it’s assessing its options.

Massachusetts Slashes Eversource's Rate Hikes as Much as 80 Percent, Citing Need to Minimize 'Impacts on Customers'

The Massachusetts Department of Public Utilities issued an order Nov. 30 cutting NSTAR Electric Company’s requested increase in rates for supplying power of $56.1 million by 78 percent, and cutting Western Massachusetts Electric Company’s requested increase of $34.7 million by about 30 percent, citing the need to minimize customer impacts. The rates for the companies, which are doing business as Eversource Energy, will take effect Jan. 1, and represent the first base distribution rate revision since 2005 and 2010, respectively.

U.S. Interior Suspends Venting and Flaring Rules on Oil, Gas Production Until 2019 as it Seeks to Limit Impact on Industry

The U.S. Interior Department’s Land Management Bureau on Dec. 7 announced it will suspend requirements set under its 2016 Waste Prevention Rule, also known as the Venting and Flaring Rule, until Jan. 17, 2019, saying that immediate implementation could “unnecessarily burden industry” while the regulations are assessed. The review of the standards follows a sweeping executive order that President Trump issued in March aimed to undo multiple climate regulations and agency actions that potentially burden the development of domestically produced energy resources.

Fossil Fuels and Pipelines

U.S. Regulator Upholds Denial of Permit for Energy Transfer's Rover Gas Line, Finding Company 'Cannot be Relied Upon'

The Federal Energy Regulatory Commission on Nov. 30 rejected Energy Transfer Partners’ appeal for a so-called blanket certificate that would allow the developer to perform routine construction activities without the need for agency approvals, arguing that the company “could not be relied upon” after committing multiple environmental violations. The commission in February approved the company’s 510-mile interstate pipeline, extending from the Appalachian region to an interconnection in Michigan, but denied a blanket certificate citing the “intentional demolition” of a house that was eligible for listing in the National Register of Historic Places.

U.S. Northeast, Midwest Natural Gas Production on Pace to Triple Since 2012, Leading National Gains: EIA

Natural gas production in the Marcellus and Utica shale plays in the Appalachian region soared to 23.8 billion cubic feet per day in October, up from 7.8 billion cubic feet just five years ago, according to a Dec. 4 report from the Energy Information Administration. The agency attributed the increase to “efficiency improvements” in horizontal drilling and hydraulic fracturing practices.

Washington Commission Approves Puget Sound’s Plan to Close Units at Montana Coal-Fired Plant by 2022

The Washington Utilities and Transportation Commission approved a settlement of Puget Sound Energy, a subsidiary of Puget Energy, for the closure of Units 1 and 2 of the Colstrip plant by 2022, and accelerating the cost recovery period for two other units to 2027 from 2045, according to the agency’s Dec. 5 press release. Puget Sound holds the largest ownership share in the 2,100-megawatt Colstrip plant, co-owned by Talen Energy, NorthWestern Energy, PacifiCorp, Avista, and Portland General Electric.

Federal Lawmaker Proposes Repeal of Certain Oil and Gas Extraction Disclosure Requirements

U.S. House lawmaker Bill Huizenga, a Republican representing Michigan, introduced a bill (H.R.4519) on Dec. 1 that would amend the Securities Exchange Act of 1934 to repeal certain disclosure requirements related to resource extraction.

Connecticut Regulator Examines Whether Gas Distribution Companies Applied 'Prudent Strategies' to Manage 2013-2016 Winters

The Public Utilities Regulatory Authority of Connecticut is examining whether the state’s local natural gas distribution companies functioned prudently in managing their supply portfolios during the winters from mid-2013 to mid-2016, according to the agency’s Dec. 4 notice. The proceeding will review how the companies used load forecasting, daily and intra-daily nominations, deliveries and balancing to provide safe, reliable, and cost-effective service.

Renewable Policies and Projects

Illinois Power Agency Submits Final Renewable Procurement Plan for Commission Approval

The Long‐Term Renewable Resources Procurement Plan, to be approved by the Illinois Commission, includes revisions to net metering, distributed generation project rebates, rules for administering $750 million in low income solar programs and new compliance obligations for retail electric suppliers, according to a Dec. 4 filing.

Rocky Mountain Power Approved by Idaho Regulator to Cut Wind Farm Payouts by Over 80 Percent

The Idaho Public Utility Commission slashed PacifiCorp subsidiary Rocky Mountain Power’s wind integration rate from $3.06 per megawatt-hour to 57 cents per megawatt-hour for wind facilities that qualify for 20-year contracts, according to the commission’s Dec. 7 press release. The commission set the solar integration rate at 60 cents per megawatt-hour noting that solar generation on the utility’s system is expected to exceed 1,000 megawatts by the end of the year. The contracts come under the Public Utility Regulatory Policies Act of 1978, a rule requiring utilities to purchase electricity generated from qualifying independent power producers at commission-approved rates.

Southwest Power Market Hits Record Energy Supply from Renewables, with Wind Meeting Over Half the System's Demand

The Southwest Power Pool Inc., the manager of the grid spanning an eight-state area, saw wind generation reach 13,271 megawatts on Dec. 4, serving a record 56 percent of the system’s power needs, according to a press release. Later in the day, peak wind generation also hit a record 13,588 megawatts.

New Jersey Lawmaker Introduces Bills to Cut State's Solar Installation Costs, Boost Building Efficiency Standards

New Jersey Senator Robert Smith, a Democrat, introduced a bill (S 3540) on Nov. 30 aimed at reducing costs for permitting and installing solar photovoltaic systems through a revision in the state code. A second draft bill (S 3541) would authorize municipalities to impose stronger energy conservation requirements for new buildings.

 

Federal Energy Regulator to Revise 1999 Hydropower Evaluation Guidelines to Enhance Dam Safety

The Federal Energy Regulatory Commission issued draft revisions to its engineering guidelines for evaluating hydropower projects and is requesting comments from federal and state agencies, licensees, and parties with expertise in dam safety and arch dams, according to the commission’s Dec. 7 notice.

Citi, MidAmerican Seek Stake in 160-Megawatt Central Texas Wind Farm

A subsidiary of Rattlesnake TX Holdings LLC is seeking approval with the Texas Public Utility Commission to sell equity in its 160-megawatt wind farm being developed in McCulloch county to Citicorp North America Inc. and MidAmerican Wind Tax Equity Holdings LLC, according to a Dec. 4 filing.

Transmission and Storage

PJM Rejects EDF Renewable's Complaint on Grid Connection Rules, Citing Failure to Show Deficiencies

PJM Interconnection LLC sought to dismiss EDF Renewable Energy Inc.’s complaint that the regional grid operators’ failure to coordinate has inflated costs and caused delays for developers proposing to connect new energy projects to the systems. PJM cited the failure of EDF, a subsidiary of Electricite de France SA, to provide sufficient evidence and argued that the complaint is premature given a similar proceeding addressing interconnection issues is underway at FERC.

Emera Seeks Federal Permit for 1,000-Megawatt Power Line to Import Canadian Hydro, Wind Power to U.S. Northeast

Clean Power Northeast Development Inc., a subsidiary of Emera Inc., applied for a Presidential permit with the U.S. Energy Department to construct and operate the Atlantic Link subsea power transmission line. The 375-mile high voltage, direct current, transmission cable would deliver wind power and hydro power from eastern Canada to Massachusetts. Atlantic Link’s proposed in-service date is late 2022.

 

New York Grid Operator Unveils Plans to Make Room for Energy Storage in Power Market as Renewables Grow

The New York Independent System Operator Inc. is planning to develop a “full market participation model” for energy storage which can be eligible to offer all potential services and set market clearing prices, and is expected to serve as a key tool for managing the growing penetration of intermittent and distributed resources, according to the grid operator’s Dec. 4 press release. The grid operator is planning the design work in three phases – “energy storage integration,” “energy storage optimization,” and “renewable and storage aggregation” – with full implementation by 2023.

Ontario Taps Hecate Energy, Saturn Power to Build Over 50 Megawatts of Energy Storage on Canadian Grid

The Ontario Independent Electricity System Operator announced Nov. 28 that it selected Hecate Energy Ontario Storage VII LP and Saturn Power Inc. to build energy storage systems totaling 55 megawatts of capacity. The storage projects will be used to provide regulation service, which entails correcting short-term fluctuations of power demand on the regional grid that threaten to throw the system off balance and cause disruptions.

Smart Meters Now Used by Nearly Half of All U.S. Electricity Customers, in Boost to Grid Resiliency: EIA

U.S. electric utilities had installed nearly 71 million smart meters by the end of last year, accounting for 47 percent of the nation’s 150 million electricity customers, and double the penetration since 2010, according to the Energy Information Administration’s Annual Electric Power Industry Report. Smart meters can communicate between electric utilities and customers to support demand response, renewable generation, and to provide outage information to enable quicker service restoration and shorter disruptions.

Other

EPA to Extend Hearings on Repeal of Landmark Carbon Rule for Power Sector Following 'Overwhelming Response' From Public

The U.S. Environmental Protection Agency announced Dec. 6 it will hold additional hearings in California, Wyoming and Missouri on its repeal of the Clean Power Plan, a rule to limit greenhouse gas emissions from the U.S. electricity sector, following what it calls an “overwhelming response” to the hearing in West Virginia. The hearing schedule has not been issued. The proposed repeal marks the biggest push against Obama-era landmark climate legislation by Administrator Pruitt and the Trump administration.

Pennsylvania Commission to Overhaul Retail Electricity Service Rules to Prevent 'Consumer Confusion'

The Pennsylvania Public Utility Commission is seeking comments on proposed amendments to its retail electricity service regulations to enhance consumer information necessary to make informed decisions when shopping in the state’s competitive retail electricity market, according to the commission’s Dec. 7 press release. The proposal includes rules on pricing practices, disclosure statements, and the provision of notices of contract expiration or changes in terms.