Report Details How Sustainable Energy Utility Would Benefit Ann Arbor, Mich.
October 29, 2021
by Paul Ciampoli
APPA News Director
October 29, 2021
A sustainable energy utility (SEU) for the City of Ann Arbor, Mich., is feasible and would yield a variety of benefits for the city, a new report concludes. While the SEU would be a publicly owned municipal utility, the report notes that the SEU would differ from a traditional municipal utility in that it would supplement the current investor-owned utility (IOU).
City Has Aggressive Carbon Neutrality Goal
The City of Ann Arbor has adopted an aggressive goal of a just transition to community-wide carbon neutrality by the year 2030, known as A2ZERO.
“Achieving this goal will require ambitious and transformative practices,” the report, “Ann Arbor’s Sustainable Energy Utility: A Publicly Owned, Locally Powered, Reliable, Clean, Fast and Equitable Power Model For Our Community,” said.
In the course of reviewing pathways to achieve A2ZERO, especially within the power sector, an idea emerged of creating a SEU, a non-profit, publicly owned, municipal utility that focuses on providing affordable, 100% renewable, reliable, and locally sourced power.
“A SEU is not your parents’ — or your grandparents’ — kind of utility. It is a model that uses modern energy technology to give residents reliable, truly local, clean, equitable, and nearly always cheaper energy — quickly,” the report, which was released by the City of Ann Arbor in October 2021, said.
The idea for an Ann Arbor SEU emerged after an Ann Arbor Energy Commission meeting in early spring of 2021. In that meeting, the Commission was presented with details about laws that constrain Ann Arbor’s utility options, different forms of community energy procurement, and what possibilities might exist to reach Ann Arbor’s goals given those restrictions. While neither speaker explicitly spoke about a SEU, the ideas presented in that meeting spurred research into the creation of a municipal utility built entirely on clean, local, distributed energy technologies.
Shortly after the Energy Commission meeting, staff in the Ann Arbor Office of Sustainability and Innovations (OSI) reached out to two locations where SEUs are up and running: Delaware and the District of Columbia. “While these SEUs operate in areas with more flexible legal frameworks than Michigan, these conversations provided valuable information into how existing SEUs operate, their strengths, and opportunities for enhancement,” the report noted.
Following these conversations, OSI created a conceptual model of a Michigan-specific SEU and reached out to five experts in various areas of energy-related law, policy, and technology to gather their professional insights into the viability of the model. All conveyed excitement at the prospect of an Ann Arbor specific SEU, and a willingness to engage with the city to more fully explore the concept.
What Is An SEU?
A SEU is a publicly owned municipal utility. What’s different, however, is that a SEU does not own or utilize large-scale poles and wires.
“Instead, a SEU generates power through local renewable energy installations such as SEU installed solar/battery systems that provide power to your home or business, and microgrids or geothermal systems that allow you and your neighbors to share power generated in your neighborhood,” the report said.
“In addition to providing power from local renewable energy, the SEU could provide services such as more holistic energy waste reduction (efficiency) upgrades, support with beneficial electrification, and billing and payment options that DTE doesn’t offer (e.g. on-bill financing).” DTE is the IOU that currently serves Ann Arbor.
A SEU would supplement DTE, allowing residents and business owners more than one choice about where they get their energy. “This approach allows us to immediately reduce climate pollution by focusing on new, local, clean energy installations, improve our resilience during major grid events, improve the comfort, safety, and long-term value of our homes and businesses, help lower-income residents make their bills more affordable, and invest in our local economy,” the report said.
Because the city would not be procuring existing infrastructure from DTE, “we will be able to move much more quickly into action than would otherwise be possible — putting generation into place to advance our 2030 goal,” the report noted.
Services That A SEU Could Provide
Because a SEU is a municipally owned utility, it can offer many things not currently available to Ann Arbor residents, the report noted.
In designing a model SEU, staff envisioned it helping residents and businesses reduce energy usage, utilize renewable energy, electrify buildings and transportation systems, improve resilience, save money, and improve indoor comfort, health, and safety.
More specifically, staff envisioned a SEU that offered some or all of the things that residents have said they want:
- Improved resilience during power outages, by increasing residents’ access to solar and energy storage;
- Microgrids between neighboring households, where solar and storage are shared;
- Robust energy waste reduction programs and rebates to support residents — even those who don’t own their dwellings — with improving indoor comfort, health, and safety, all while saving money;
- On-bill financing to help lower the costs and increase the flexibility of paying for a clean energy transition;
- District level geothermal systems so that neighbors can jointly tap into the earth to heat and cool their homes and businesses;
- Community solar programs that allow neighboring residents to benefit from solar installed at community centers, in parks, or in shared areas around the city;
- Support for beneficial electrification and associated training and rebate programs to help people transition to cleaner and safer all-electric homes and businesses; and
- Energy justice initiatives, including broad and deep access to renewable energy, the creation of programs for low-income and underserved residents, and the expansion of weatherization services.
“Regardless of where we begin, one thing is clear: a SEU must provide electricity,” the report said.
“Because of this, we propose starting the SEU immediately by providing four core services: 1) creating solar and storage systems to boost resilience at single locations; 2) piloting microgrids in target neighborhoods; 3) creating robust energy waste reduction offerings; and 4) setting up on-bill financing offerings.”
The report is available here.
APPA Offers Municipalization Resources
The American Public Power Association offers resources related to municipalization on its website. Click here for details on those resources.
Salt River Project Issues All-Source RFP For New Power Generation Resources
October 29, 2021
by Paul Ciampoli
APPA News Director
October 29, 2021
Arizona public power utility Salt River Project (SRP) has issued a request for proposals (RFP) for additional power generation resources of all types to meet summer peak capacity needs.
SRP on Oct. 29 said that it continues to experience significant increases in customer electricity demand as Phoenix and Maricopa County lead the nation in population growth and economic development.
SRP is seeking competitive proposals for up to 400 megawatts (MW) of peak generating capacity by summer 2024, and another 600 MW by summer 2026, for a total up to 1,000 MW by summer of 2026.
Resources selected through this all-source RFP process will also support SRP’s 2035 Sustainability Goals and SRP’s goal to add 2,025MW of new utility-scale solar by 2025.
The requested generation is needed in addition to SRP’s recently announced contracts for new renewable resources and plans to expand its Coolidge Generating Station.
SRP said it will consider all technologies and currently serves customer energy needs from generation produced with a diverse fuel mix including nuclear, coal, hydroelectric, natural gas, battery storage and renewable resources including solar, wind, biomass, and geothermal.
This summer SRP announced agreements for four new utility-scale solar plants, as well as the commissioning of Arizona’s largest standalone battery storage system which began operating on SRP’s system this September.
Respondents to the all-source RFP can view the details and register here: srp.net/all-source-rfp. Registration enables access to all RFP-related documents.
SRP is seeking bid proposals by Jan. 11, 2022 and anticipates short list selection in April 2022.
APPA-Supported Loan Interest Payment Provision Included In Bill Approved By Committee
October 29, 2021
by APPA News
October 29, 2021
The House Committee on Transportation and Infrastructure on Oct. 27 approved legislation that includes a provision that would require the Federal Emergency Management Agency (FEMA) to reimburse local governments for interest expenses for loans related to disaster relief.
It would also provide that qualifying interest includes interest incurred in the five years preceding this bill’s enactment.
The committee approved by a vote of 63 to 2 the Resilient Assistance for Mitigation for Environmentally Resilient Infrastructure and Construction by Americans Act, or Resilient AMERICA Act (H.R. 5689).
During markup of the bill, the committee adopted as an amendment to the bill the provisions of the FEMA Loan Interest Payment Relief Act (H.R. 2669) introduced by Rep. Neal Dunn (R-FL) in April.
The interest payment provision is supported by the American Public Power Association (APPA).
In a Feb. 4, 2021, letter to Dunn and bill cosponsor Rep. Darren Sotto (D-FL), APPA President and CEO Joy Ditto noted that every year, public power utilities experience some degree of infrastructure damage due to events, such as ice storms, tornadoes, floods, hurricanes, and earthquakes.
If this damage is severe enough to be declared a disaster by the President of the United States, recovery costs are eligible for reimbursement through grants from FEMA.
“These grants can amount to millions of dollars and are critical to the ability of public power utilities to recover from disasters,” wrote Ditto. “However, years can pass between a public power utility making a claim for a public assistance grant and FEMA providing that assistance. In the meantime, the utility must often borrow funds — and pay interest on that debt — to cover the costs.”
The FEMA Loan Interest Payment Relief Act would require FEMA “to pay at least a portion of those interest expenses. This would reduce the cost of having to borrow to cover costs that will eventually be recovered from FEMA. It would also create a financial incentive for FEMA to resolve more quickly — and make payment on — public assistance requests,” Ditto noted.
The Resilient AMERICA Act, which now heads to the House floor, will also:
- Return unspent funds from the Hazard Mitigation Grant Program to the Disaster Relief Fund, which ensures that these expiring and unspent funds will still help our communities prepare for and respond to disasters;
- Double the funding stream dedicated to FEMA’s Pre-Disaster Mitigation (PDM) program;
- Extend eligibility for the PDM program to include private non-profits;
- Expand the reach of the post-disaster Hazard Mitigation Grant Program to prevent utility outages in the face of extreme wildfire, wind, tsunami, and ice events; and
- Fund residential resilience retrofit block grants to states, tribes, and territories to strengthen homes for maximum protection and safety.
Committee Also Approves FEMA Caseworker Accountability Act
In addition, the committee also approved by voice vote H.R.5343, the FEMA Caseworker Accountability Act.
The bill, which was introduced on Sept. 22, 2021 by Rep. Tom Rice (R-SC), would direct FEMA to report to Congress on case management personnel turnover.
Specifically, FEMA must report on the turnover rate for FEMA case management personnel, the average and median length of employment for such personnel, the steps that FEMA is taking or plans to take to lower the turnover rate, and other specified points.
During Wednesday’s markup, the committee adopted an amendment by Rep. Scott Perry (R-PA) to instead require the Government Accountability Office to complete the report, rather than FEMA.
Thirty-Eight Public Power Utilities, Organizations Earn Public Power Communications Awards
October 27, 2021
by Paul Ciampoli
APPA News Director
October 27, 2021
Thirty-eight public power electric utilities and utility organizations earned Excellence in Public Power Communications Awards from the American Public Power Association. The awards were presented at APPA’s Customer Connections Conference in Scottsdale, Ariz.
The annual awards recognize excellence in communications. The entries are judged in three categories: print/digital, web/social media, and video.
Awards were given to those that showed ingenuity and creativity in telling their stories through outstanding copy, design, financial data presentation, graphics, social media engagement, video editing, and web layout and interactivity.
This year’s awards were judged by Jeff Beddow, Independent Public Relations Consultant; Steve Mitnick, Executive Editor at Public Utilities Fortnightly; and Dianne Vance, Director of Business Development and Sales at the American Occupational Therapy Association.
For a list of this year’s winners, click here.
California Community Choice Aggregators Seek Firm Clean Energy Resources
October 27, 2021
by Paul Ciampoli
APPA News Director
October 27, 2021
A recently issued solicitation seeks up to 200 megawatts (MW) of firm clean resources for a group of California community choice aggregators (CCAs) through one or more projects, with deliveries beginning no later than June 1, 2026.
California Community Power, a Joint Powers Agency comprised of ten California CCAs, on Oct. 25, 2021 issued a request for offers (RFO) for firm clean resources that produce renewable energy on demand and include geothermal and biomass sources.
On June 24, 2021, the California Public Utilities Commission (CPUC) issued a decision requiring load serving entities, including members of California Community Power, to procure long lead-time clean resources to address mid-term reliability. The decision mandates new generation with at least an 80 percent capacity factor that has zero on-site emissions, or otherwise qualifies under the California Renewable Portfolio Standard program eligibility rules.
The RFO follows a set of enhanced conditions that the California Community Power board adopted for its first, joint procurement of up to 500 MW of long-duration storage in October 2020.
The guidelines state that California Community Power will also consider workforce and environmental concerns for projects through enhancing the conditions imposed on project developers for workforce, the environment, and environmental justice.
California Community Power members are: Central Coast Community Energy, CleanPowerSF, East Bay Community Energy, MCE, Peninsula Clean Energy, Redwood Coast Energy Authority, San José Clean Energy, Silicon Valley Clean Energy, Sonoma Clean Power and Valley Clean Energy.
The RFO may be found at cacommunitypower.org/solicitations. Proposals are due December 13, 2021.
The long-duration storage procurement is still ongoing. On October 8, the California Community Power board provided notice of its intent to consider a 69 MW/552 megawatt hour energy storage project to be built in Kern County, Calif.
Negotiations are still ongoing, but California Community Power is expected to enter into an Energy Storage Services Agreement for this project in December 2021.
The American Public Power Association has initiated a new category of membership for community choice aggregation programs.
Fitch Upgrades Illinois Municipal Electric Agency’s Credit Rating
October 26, 2021
by Paul Ciampoli
APPA News Director
October 26, 2021
Fitch Ratings recently announced that it has upgraded its assessment of the credit worthiness of the joint action agency that provides wholesale power to 32 municipal electric systems throughout Illinois.
On Oct. 22, 2021, the ratings service upgraded its evaluation of the Illinois Municipal Electric Agency (IMEA) from A+ with a positive outlook to AA- with a stable outlook.
The upgrade reflects the strong long-term financial performance of IMEA and the municipal members that it serves, and places IMEA among the top-rated electric joint-action agencies in the nation.
In granting the upgrade to AA-, Fitch noted IMEA’s “strong operating risk profile is driven by a low cost burden and diversifying resource base.”
Fitch also noted that IMEA’s wholesale rates have been steady over the past several years and retail rates for the largest members are near the state average and considered very affordable.
IMEA President and CEO Kevin Gaden said the new rating “demonstrates a positive, independent appraisal of our agency’s fiscal policies. IMEA provides our members with an affordable and reliable power supply, while we continue to diversify our resources and manage all the changes in the electric utility industry.”
IMEA is a not-for-profit wholesale power provider comprised of 32 municipal electric systems. Municipal members include Altamont, Bethany, Breese, Bushnell, Cairo, Carlyle, Carmi, Casey, Chatham, Fairfield, Farmer City, Flora, Freeburg, Greenup, Highland, Ladd, Marshall, Mascoutah, Metropolis, Naperville, Oglesby, Peru, Princeton, Rantoul, Red Bud, Riverton, Rock Falls, Roodhouse, St. Charles, Sullivan, Waterloo and Winnetka.
NYPA Renewable Hydrogen Demonstration Project To Start In November
October 26, 2021
by Paul Ciampoli
APPA News Director
October 26, 2021
The New York Power Authority (NYPA), in collaboration with project partners, will start a demonstration project in November to assess the potential of substituting renewable hydrogen for a portion of the natural gas used to generate power at its Brentwood Power Station on Long Island.
Project partners are the Electric Power Research Institute (EPRI), General Electric (GE), Airgas, an Air Liquide company, Sargent & Lundy, and Fresh Meadow Power.
Representatives from the project partner organizations were on site in Brentwood on Oct. 25 to view progress on plant readiness to begin the project.
The NYPA-led, first-of-its-kind demonstration will evaluate the effects of different concentrations of hydrogen blended with natural gas at regular intervals to assess the blend’s effect on reducing greenhouse gas emissions and its overall system and environmental impacts, including nitrogen oxide emissions.
At the close of this short-term project, peer-reviewed results will be shared with the industry and public to better inform what efforts can help New York State reach its goal of reducing carbon emissions 85 percent by 2050. The project is expected to last between six and eight weeks.
NYPA’s Brentwood Power Station, which is operated by a GE LM-6000 combustion turbine fueled by natural gas, was commissioned in 2001 to increase power generation capacity for Long Island and New York City in anticipation of shortages.
As the gas turbine’s original equipment manufacturer, GE will supply a state-of-the art hydrogen/natural gas blending system and support the project’s planning and execution.
Sargent & Lundy, acting as the engineer of record for the project, will provide overall engineering and safety reviews.
Airgas is the supplier of renewable hydrogen and Fresh Meadow Power is providing piping system design, material procurement and installation services.
EPRI conducts research, development, and demonstration projects, with a focus on electricity generation, delivery, and use in collaboration with the electricity sector, its stakeholders and others.
The American Public Power Association recently issued a report that offers a perspective on where the emerging hydrogen market is in the U.S. and globally, what is driving the growing interest in hydrogen and what obstacles are preventing hydrogen technology from being able to scale-up.
Lansing Board of Water and Light Seeks Information On Battery Storage-Only Projects
October 26, 2021
by Paul Ciampoli
APPA News Director
October 26, 2021
Michigan public power utility Lansing Board of Water and Light (BWL) is soliciting information for battery storage-only projects. Specifically, BWL is interested in learning about all aspects of storage projects, such as how they can be scheduled, priced, sited and more.
Information received in response to the request for information (RFI) may be used to assist the BWL in planning the scope of future technology studies, deployment, or technology commercialization efforts.
BWL may also use the RFI to gain public input on its efforts and formulate plans to mobilize investments.
“The information collected may be used for internal BWL planning and decision-making to ensure that future activities maximize public ownership while advancing the BWL’s goals for leading and building a competitive, clean energy utility and reducing carbon pollution,” the RFI said.
BWL noted that it is issuing the RFI solely for information and planning purposes and does not constitute a request for proposal.
Responses to the RFI are due by Nov. 30, 2021 and it is available here.
BWL currently provides electricity to more than 97,000 customers and drinking water to nearly 56,000 customers in the greater Lansing area. BWL also serves the Lansing downtown district with steam, heating, and chilled water.
APPA storage tracker
The American Public Power Association recently launched a Public Power Energy Tracker, which is a resource for association members that summarizes energy storage projects undertaken by members that are currently online.
The tracker is available here.
70 Public Power Utilities Earn Smart Energy Provider Designation
October 26, 2021
by Paul Ciampoli
APPA News Director
October 26, 2021
Seventy public power utilities have earned a Smart Energy Provider (SEP) designation from the American Public Power Association. The designations were presented on October 26 during APPA’s Customer Connections Conference in Scottsdale, Ariz.
SEP designees are recognized for demonstrating commitment to and proficiency in energy efficiency, distributed generation, and environmental initiatives that support a goal of providing low-cost, quality, safe, and reliable electric service.
In total, 97 public power utilities nation-wide hold the Smart Energy Provider designation.
The SEP designation, which lasts for two years (December 1, 2021 to November 30, 2023) recognizes public power utilities for demonstrating leading practices in four key disciplines: smart energy program structure; energy efficiency and distributed energy programs; environmental and sustainability initiatives; and the customer experience. This is the third year APPA has offered the SEP designation.
In an episode of the Public Power Now podcast, Liz Jambor, manager of data analytics and business intelligence at Austin Energy in Texas, discussed the SEP Program and her work as chair of the SEP review panel. To listen to the December 2020 episode, click here.
The full list of SEP designees is available here.
Kansas Municipal Utilities Completes Another Successful Distribution Overhead Workshop
October 26, 2021
by APPA News
October 26, 2021
Kansas Municipal Utilities (KMU) earlier this month completed another successful Electric Distribution Overhead Workshop, which offers training sessions on overhead installation, construction, maintenance requirements and techniques and provides attendees with the opportunity to practice these job tasks in a simulated energized environment.
Brian Meek, KMU’s Director of Training and Safety, noted that the 36-acre KMU training field contains an example of almost every situation encountered in the real world.
Trainees work in crews that are assembled from multiple different utilities. “The multi-utility crew composition forces trainees to hone their communication skills and adapt to the different work practices that are performed by different municipalities,” he said. The workshop is designed to offer training for all experience levels of lineworkers, from apprentice to crew leader. The workshop is taught primarily by journey lineman from across Kansas.
This year’s workshop kicked off with a simulated mutual aid event, Meek noted. Prior to trainee arrival, the field was prepped to simulate a tornado touchdown. Poles were cut down or pushed over, crossarms were broken, lines were cut, and insulators were damaged.
When the trainees arrived, they were given a class on mutual aid response followed by a briefing of the potential damage in the field. After the briefing, the trainees formed their work crews with their instructors and had to access and repair the damage within 3 hours. This exercise also required multi-crew coordination to ensure that everyone could accomplish their tasks safely.
Throughout the workshop, apprentices in the KMU Lineworker apprenticeship program complete required program skill evaluations and participate in hurt man rescue exercises, Meek said.
Meanwhile, Meek detailed how the 2021 KMU Electric Distribution Overhead Workshop that wrapped up on October 1 was a success.
“During our workshops we ensure that safety is the top priority,” he said. “The number one success for the workshop is that no one was injured during their training,” Meek noted.
“Building on that success, a large number of apprentices were able to perform activities that they have never completed before. By completing these tasks in a real-world situation but with the absence of the electrical hazard, the trainees can make mistakes without deadly consequences.”
This practice time improves their skills to ensure the work can be completed safely when they return to their municipalities, Meek said.
“Lastly, networking is one of the most commonly overlooked benefits of the workshop. Trainees leave the facility with the contact information for other lineman in neighboring utilities. The relationships they build during the workshop spill over into their regular work lives. When they have questions or need help, they call their classmates for help. Most workshop attendees say that the networks they build during the classes provide invaluable benefits.”
Meek noted that this year marked the 10th year for the workshop. “When the workshop began there was no training center and no poles, just an open field. As time went on and the amount of poles and simulated circuits grew, we were able to get more complex in our offerings,” he said.
“Two years ago, we modified the workshop significantly. In the first eight years, trainees would spend a set amount of time at a ‘training station’ learning one aspect. They would then rotate stations after a set amount of time. The workshop was modified to create work crews and allow the crews to work an actual job from start to finish during the week.”
This format incorporates all of the aspects that were taught in the stations, but in a more real-world and comprehensive setting, Meek noted. “Last year we added the mutual aid component discussed earlier. All of these evolutions have occurred based on the input of the trainees and the instructors. I believe this is why the workshop continues to grow. This year we had a record number of participants (59) and were at capacity for the number of instructors we had.”
The Electric Distribution Overhead Workshop takes place at KMU’s Training Center in McPherson, Kansas.
“We have a large number of training events at our facility each year,” Meek noted. “In addition to the Overhead Workshop we offer an Underground Electric Distribution Workshop, Transformer Connections Workshop, Power Plant Operator Workshop, Watt-Hour Metering School, Substation Workshop, T&D Switching Workshop, multiple Leadership Seminars, a CDL workshop, multiple Utility Locate Certification Workshops, Gas Pipeline Operator Workshop, multiple Mobile Crane Certification Workshops, and a variety of water and wastewater classes.”
In 2022, “we will be expanding our workshop offerings to include heavy equipment workshops,” he said.
In addition to the workshops, “we also host our lineworker apprenticeship training program. This program has grown to over 70 apprentices.”
Colin Hansen, who is currently Executive Director of Kansas Municipal Utilities (KMU), is the chair of the American Public Power Association’s Board of Directors.
It was recently announced that Hansen will be joining Kansas Power Pool (KPP) effective Feb. 1, 2022 as KPP’s new CEO and General Manager.