Santee Cooper signs contracts for solar power
July 7, 2021
by Peter Maloney
APPA News
July 7, 2021
Santee Cooper, the state-owned public power utility in South Carolina, has signed contracts to take about 27.5 percent of the output of five planned solar power projects in South Carolina totaling 425 megawatts (MW).
Central Electric Power Cooperative, Santee Cooper’s largest customer, has signed contracts to take the remaining share of the output of the solar projects.
Santee Cooper will manage the solar projects as part of its combined power system. As the aggregator for South Carolina’s individual electric cooperatives, Central Electric Power Cooperative represents about 72.5 percent of the system’s load.
The 425 MW of solar power would be equal to nearly 40 percent of the currently installed solar capacity in South Carolina.
The largest of the planned solar installations are two 100-MW projects being built, owned and operated by Silicon Ranch, the solar power platform of Shell. The Lambert I and Lambert II projects are sited in Georgetown County, South Carolina, and are expected online in the fourth quarter of 2023.
Birdseye Renewable Energy, a subsidiary of Dominion Energy, is developing a 75-MW solar farm in Aiken County, also expected online in the fourth quarter of 2023.
Ecoplexus is developing the 75-MW Hemingway project in Williamsburg County that is expected online in the second quarter of 2023.
Johnson Development Associates is developing a 75-MW solar farm near Summerville, in Dorchester County that is expected online in the fourth quarter of 2023.
The four developers were chosen through a request for proposals (RFP) a year ago that was jointly analyzed by Santee Cooper and Central Electric Power Cooperative.
The RFP process yielded 58 project proposals totaling more than 3,600 MW.
Santee Cooper said the recently contracted solar projects represent the first of three phases it is planning as it as it transforms its generating portfolio to a leaner, greener mix. The next phases, of another approximately 500 MW each, are scheduled for later in this decade and in the early years of the next decade.
Celebrating public power in America series – Part 3: Celebrating Public Power’s Attributes and Addressing Municipalization
July 7, 2021
by APPA News
July 7, 2021
The American Public Power Association concludes our second three-part newsletter by highlighting public power systems that demonstrate a commitment to local communities, ongoing innovation, and resiliency. We conclude the series by exploring how discussions about municipalization and community choice aggregation efforts have touched local communities.
Public Power’s Local Commitment
Mason County PUD 1 is the first and oldest operating public utility district in Washington State, formed by Washington State Initiative No. 1 in 1934 and began operations in February of 1935. Mason PUD 1 serves water, power and wastewater services to just over 8,300 meters in Mason and south Jefferson Counties along the beautiful Hood Canal. With a lean staff of just 25 total employees and an operating budget of about $11.8 million, Mason PUD 1’s team wears several hats and has a knack for making equipment and infrastructure last as long as they can, which helps reserve budget for prioritized projects.
The PUD has a throwback customer service model; one that is rare to find in 2021 in any industry. While the utility has expanded its digital platforms and presence, especially during the pandemic, the employees still have a special personal connection with their community. Customers knit hats for the workers during the winter months, bake cookies and holiday snacks to drop off to the crews, and can identify the customer service representatives by the sounds of their voices over the phone. Linemen still rescue cats out of trees and hang banners for local service clubs. Many of the utility’s employees grew up in the area and have deep ties in the community.
This special relationship with the public helped Mason PUD 1 navigate some tough challenges at the beginning of the pandemic. Supply chain issues caused shortages for things like PPE, supplies to conduct water system testing, and even basic office supplies to keep the offices open. While the PUD prides itself on its commitment to spend public funds locally whenever feasible, this supply chain interruption had them looking internally toward local vendors and community members to help bridge the gaps. Thanks to newly forged and existing partnerships, homemade masks were donated by community members and hand sanitizer was made by the local distillery who kept bottles just for first responders like the PUD.
Arrangements were made for the fleet to fuel up at small local gas stations along the highway. Local restaurants that were limited to take-out only during the statewide shutdown started delivering lunch to the office each week. The local Costco store took orders for toilet paper, paper towels, and bleach wipes and held them off to the side to be picked up for the office. The community stepped up to help the men and women who always came through for them during storms and outages all year long.
The Mason PUD 1 administrative team also worked tirelessly to secure CARES Act funding for customer bill arrearages, having to go to great lengths to convince statewide county leaders that sharing the funds with public utility districts was not only an allowable use of the funds, but the proper intent of the Act to support households struggling financially due to the pandemic. The PUD also partnered with several community organizations to connect customers with financial assistance for utility bills, rent and food. Thanks to their efforts, they were able to apply over $57,000 in CARES Act funds to customer bills in addition to thousands of dollars of assistance through community action councils and other private and nonprofit agencies.
To celebrate their 85th anniversary of public service in 2020, they reimagined their annual customer appreciation BBQ into a drive through event to stay within the parameters of the statewide restrictions on gatherings. The PUD typically hosts 300-400 customers during this annual event, but in 2020 they had nearly double the number of visitors drive through their campus for the free PUD gift bags, burgers and hot dogs, conservation kits and to show their support during public power week. Many customers thanked the PUD for not giving up on the event, saying it was the first time since the pandemic started that they had ventured out of their homes for anything other than doctors appointments or to pick up groceries. The volume of visitors was a reflection of the high esteem in which the community held their public utility district and the value of the PUD to Mason County. The employees and commissioners of Mason PUD 1 felt the same way about the customers they serve.
Public Power Systems are Innovative
CDE Lightband offers electricity, internet, video and voice services with speed and superior performance and the convenience of 24/7 local support to the City of Clarksville, Tennessee. The service area, consisting of 100 square miles within the municipal boundaries, includes 971 miles of power lines and 1,045 miles of fiber optic cable. Their world-class fiber optic network keeps electric costs low and allows CDE Lightband to deliver exceptional products and constant innovation. As a result, the network provides savings of over $10 million annually in operating costs and over $5 million annually in income for electrical grid improvements, resulting in half as many large-scale power outages compared to peer cities.
Currently, CDE Lightband has 65,594 residential electric accounts and 8,760 commercial electric accounts while broadband has 24,679 residential accounts and 1,857 commercial accounts.
Additionally, access to a nationally recognized network increases home values by 3% (or an average of over $5,000) according to the Fiber to the Home Council. Based on access to the superior digital products provided by CDE Lightband, Clarksville has been designated as a first 50 “Next Century City.”
CDE Lightband staff includes over 200 full-time employees, a management team with over 100 years of combined industry expertise, and governance provided by a board of five local business leaders.
CDE Lightband built a robust fiber-to-the-premise network in early 2007 to develop and expand their meter data management system, remote meter management and their SCADA system for improved electric service reliability, faster restoration, and for operational efficiencies. Also, in 2007, CDE Lightband entered the broadband business, delivering high-speed Internet, voice over IP phone services and IPTV services, all via the active Ethernet fiber to the premise network.
From its inception, the broadband division of CDE Lightband faced a great many challenges in access to capital, technology restrictions, and growing pains as they worked to get the network performing and the customer base growing. To foster the needed growth and capital-intensive equipment needs, the broadband division borrowed $17 million from the electric division with a loan agreement requiring annual payments and interest charges.
The management and staff at CDE Lightband put an “all hands on deck” approach to developing and growing the broadband business. A focus on product development, marketing, sales training and incentives for sales staff helped to grow the business and the customer base exponentially. Further focus on processes, equipment and product offering changes, and a significant focus on the network itself, fostered the development of a network and product offering unsurpassed in the region. CDE Lightband has been recognized nationally and within the state as one of the top three fastest Internet providers. CDE Lightband has risen to the position of being one of the most competitive service providers, offering speeds from 250 Mbps up to 10 Gig, a new streaming product for video services and phone services for businesses that provides premier products in Hosted PBX services.
As the electric division of CDE Lightband owns and maintains the fiber network, the broadband division must pay annual lease payments, loan payments and shared cost allocations totaling upwards of $10 million annually. This has allowed the electric division to build and/or upgrade six substations for a total of $29 million plus an over $16 million campus upgrade and remodel, all out of cash funds rather than take these large investments to the bond market. Other electric grid improvements funded by broadband include grid automation, AMI and right-of-way for a total of $10 million annually.
Fourteen years later, CDE Lightband broadband boasts a penetration rate over 30% within the market with over 25,000 customers and growing. They are the preferred primary provider for two local governments, the school system, hospital and university along with many other enterprise level customers and small businesses. The revenues driven by solid residential and business growth over the past years have positioned CDE Lightband broadband ahead of many peers in achieving financial independence from their electric brother to include a complete pay-off of the $17 million interdivision loan 17 years earlier than projected. This initial investment has paid huge dividends to the electric division with a calculated return on investment over the life of the loan of over $74 million. A solid investment decision that led to success for both entities and a leap of faith that helped CDE Lightband soar. Now, with the successful launch of Smartband, powered by Plume, CDE Lightband offers customers a revolutionary home WiFi system, bringing in over $28,000 a month in additional revenue.
This high level of performance has not gone unnoticed. The energy services team recently received two major awards from the Tennessee Valley Authority’s “EnergyRight” program: Top Performer and Innovator of the Year. CDE Lightband was also designated as APPA’s Smart Energy Provider, one of only two utilities in the Tennessee Valley Authority territory to receive this designation, and received the highest achievable Reliable Public Power Provider (RP3) designation once again, the Diamond Level, for providing reliable and safe electric service. CDE Lightband joins over 275 public power utilities nationwide that hold the RP3 designation.
Public Power Communities are Resilient
The public power business model has embodied an American tradition deeply rooted in local communities. In our small town revitalization series last week, Colin Hansen, Chair of APPA’s Board of Directors and Executive Director of the Kansas Municipal Utilities, spoke to one of the defining characteristics of public power utilities: resiliency. Or just plain grit
At the 2021 APPA National Conference, he shared an example from Kansas with attendees. It embodies the spirit of public power dating back to 1881: local communities coming together to provide an essential service, rather than go without. Even in modern times.
Greensburg, Kansas is a small town. At 9:45pm on the night of May 4, 2007 it was struck by a violent, 1.7-mile wide EF-5 category tornado. It killed 11 people, injured 63 others, and destroyed 95% of the town. It left 90% of Greensburg’s 1,383 residents homeless and had caused some $250 million in damages.
Hansen said, “It was on that day that this small town was quite literally blown off the face of the earth.”
But public power mobilizes when tragedy strikes. Even with an outpouring of public power assistance arriving on scene, “we quickly realized that…there was simply nothing left to connect to,” he said.
Undeterred, the City of Greensburg found the grit to reinvent itself. Hansen said they “put the ‘green’ in Greensburg. They created the nation’s first model green community from the ground up – 100% renewable wind energy, first city in the U.S. to use all LED streetlights, and home to the most LEED buildings per capita in the country.” This resiliency and rebirth later collected numerous awards and recognition, including from both former Presidents George W. Bush and Barack Obama.
Municipalization
Early municipal utilities were built on public power’s core values — affordability, reliability and sustainability. Today, these values are prompting other communities to explore what it would take to transfer ownership of the electric utility to the community from an incumbent shareholder-owned utility. Known as “municipalization,” this long and arduous process often involves perfect timing, dedicated communication with stakeholders, and a delicate balancing act with the demands of the incumbent utility.
Many communities have and continue to float the idea of becoming public power and while some have tabled or abandoned their efforts, 88 communities have successfully municipalized since APPA began tracking this data in 1973, including 20 since 2000.
The reasons communities explore the public power or the municipalization option vary from year to year and amongst communities. Ultimately, it’s about having local control over a community’s energy future. Communities pursue public power to reduce rates, increase reliability, or to provide better customer service.
In recent years, many communities have pursued public power to have more environmentally friendly options — such as an increase in renewable energy or greater access to energy efficiency programs.
The City of Winter Park, Florida, formed a public power utility in 2005 to improve reliability. Winter Park’s effort was sparked by persistent problems with the incumbent investor owned utility. The private utility’s franchise was nearing expiration and included a clause allowing the city to buy the distribution system at the end of that period. In 2003, residents turned out in droves and voted overwhelmingly – by 69% – in favor of the city’s plan to form a municipal electric utility. The utility began operations in 2005 and committed to use all revenues from its electricity sales – except for a contribution it agreed to make to the city’s general fund – for capital improvements. The city committed to undertake a strong program to improve electric service reliability, in part by putting a significant portion of the power lines underground.
The City of Hermiston, Oregon, formed Hermiston Energy Services in 2001 following a four-year effort
that began because the local investor-owned utility closed its local customer service office, and citizens determined that the company’s service levels were declining. Customers can now pay bills and address service concerns in person at the local office.
Not all municipalization efforts result in the formation of a public power utility. However, simply evaluating the possibility ensures that community leaders have a better understanding of their energy needs and the evaluation process often garners concessions from the incumbent utility.
For the residents of Boulder, Colorado, local control meant knowing where their electricity came from and having a plan to increase renewable resources. At first, the focus was on renegotiating the city’s franchise agreement with investor-owned Xcel Energy, which was due to expire in 2010. However, when they felt their needs could not be met with a new franchise agreement, the city began efforts to separate itself from Xcel in earnest in 2011. When Boulder began its effort, Xcel’s generation portfolio was heavily dependent on fossil fuels. The city and Xcel initiated discussions to explore different options to reach its energy goals as Xcel began moving away from fossil fuels and has since pledged to have zero carbon dioxide emissions by 2050. In 2020, the city and Xcel entered settlement discussions, though there are off ramps to municipalization in the future if the city’s needs are not met.
Wichita, Kansas began looking at the public power option because of increasingly high electric rates from the incumbent utility. In February 2001, the city released a municipalization feasibility study showing it could save as much as $654 million in electricity costs over the next 20 years. The feasibility study gave Wichita the leverage it needed: six months later, $28 million in electric rate relief was headed for Wichita. The rate cut ordered by the Kansas Corporation Commission gave electric utility customers in the city about 85% of the rate relief that a consultant’s study said the city could achieve if it were to take over the power system.
While communities have been exploring the municipalization option for decades, APPA has seen increased interest in the public power option in recent years.
In Maine, lawmakers passed legislation on June 30 (in a 77-68 bipartisan vote) that would create a consumer-owned utility called Pine Tree Power. If L.D. 1708 becomes law, Mainers would vote on the question of consumer ownership at the ballot box in November.
The envisioned entity would take over the electric service now provided by Central Maine Power and Versant Power (formerly known as Emera Maine), which are majority owned by Spain’s Iberdrola and Canada’s Emera, respectively. In a recent editorial, Maine’s Portland Press Herald said it supports the bill. “The new utility would be governed independently, use no state funds and the taxpayers would not be on the hook for any of its debt. We don’t need to be scared about a different business model, especially when the one we have now is not working,” the editorial said. Research conducted by SurveyUSA, for local proponents, showed public opinion polling with 75% of registered voters from across the state supporting the idea of replacing Central Maine Power and Versant with a local non-profit consumer-owned utility.
Community Choice Aggregation
A newer type of municipal control has more recently emerged in which local entities, where applicable, form community choice aggregators (CCAs) to buy generation resources on behalf of local consumers. The CCAs generally form to secure more control over the local energy mix (such as to procure more renewables) and/or to lower costs for consumers from incumbent investor-owned utilities. Eight states have enacted legislation enabling the formation of CCAs, with California’s CCA movement especially prolific. Whereas public power utilities are traditionally vertically-integrated utilities – providing all or some combination of generation, transmission, and distribution services plus localized public benefit programs – CCAs are typically formed to buy generation resources and utilize incumbent infrastructure.
Realizing the nexus between traditional public power utilities and the nascent CCAs, APPA created a new CCA membership category in 2018 to extend resources to this emerging industry segment.
The American Public Power Association is the voice of not-for-profit, community-owned utilities that power 2,000 towns and cities nationwide. We celebrate our members that strengthen their communities by providing superior service, engaging citizens, and instilling pride in community-owned power.
Public power utilities prepare for arrival of Tropical Storm Elsa
July 6, 2021
by Paul Ciampoli
APPA News Director
July 6, 2021
Florida public power utilities have completed preparations for and are closely monitoring Tropical Storm Elsa, which is expected to make landfall along Florida’s Nature Coast early on the morning of Wednesday, July 7.
“In preparation for the storm, the Florida Municipal Electric Association has activated its mutual aid network,” said Amy Zubaly, Executive Director, Florida Municipal Electric Association, in a July 6 statement.
She noted that electric crews and resources from fellow public power utilities both within the state and from nearby states, including Georgia and Alabama, were on standby and ready to assist with power restoration efforts if needed. She said that as with any emergency, public power is committed to restoring power as safely and quickly as possible for customers.
“Our preparation efforts begin well before the start of hurricane season, and our mutual aid coordination efforts will continue right up until and immediately following landfall. We thank all the lineworkers and power restoration crews that are part of our mutual aid network for being at the ready to help impacted Florida communities,” she said.
Several public power utilities in the state noted that they are keeping a close watch on the tropical storm.
For example, Keys Energy Services (KEYS) said in a message posted on its website that it is prepared to restore service as quickly as possible if electrical facilities are damaged by Tropical Storm/Hurricane Elsa.
It said that crews will be in the field working until sustained winds exceed 35 miles per hour. At that time, all crews will be called in from the field. If power outages occur at this time, KEYS will not attempt to restore power until after the storm has passed. Additionally, KEYS will not intentionally shut power off in advance of a tropical weather event, it said. Essential utility employees will be on standby to begin the restoration process once it is safe to do so, it said.
KEYS noted that it has a number of agreements in place so that, if needed, emergency supplies and additional crews from other utilities will quickly mobilize to assist in the restoration effort. “KEYS has established priorities for storm restoration that are intended to emphasize health, safety, and essential community services and to restore service in a manner that will affect the greatest number of customers first. The time required to restore power will largely be due to the extent of damage to our system. Restoration crews will work as quickly as possible to restore power,” the utility said.
KEYS is the public power utility for the Lower Florida Keys. Headquartered in Key West, Florida, KEYS provides electricity from Key West to the Seven-Mile Bridge and serves more than 28,000 customers.
The Weather Channel on July 6 noted that a hurricane watch had been issued for a part of Florida’s immediate west-central and Big Bend coast including much of the Tampa Bay metro area.
“Although Elsa is not officially forecast to reach hurricane strength, there is some possibility of that happening right before landfall on Wednesday, but that would not significantly change the expected impacts,” it said.
Santee Cooper
Meanwhile, South Carolina’s Santee Cooper on July 2 noted that its personnel were making preparations for the anticipated effects that Elsa may have on Santee Cooper’s service territory.
As of 2 p.m. on July 2, Santee Cooper, the state-owned public power utility in South Carolina, went to OpCon 4 alert status. This means there is a possible threat to Santee Cooper’s electric system, but effects may be limited or uncertain.
At OpCon 4, the utility is primarily:
- Checking and fueling vehicles, including line trucks
- Making sure communications equipment is in proper working order
- Taking inventory and procuring supplies as needed, such as utility poles, electric transformers and associated equipment
In a July 6 email, Nicole Aiello, Manager of Public Relations at Santee Cooper, noted that in addition to these precautions, Santee Cooper has made work plans for transmission and distribution crews, Energy Control Center and Distribution Control Center team members, and customer service representatives in its Customer Care Center.
She said extra crews will be on standby to assist with restoration efforts, as needed.
“We also reached out to APPA mutual aid crews and contract crews, including tree crews, and they are on standby should we need them. We have three helicopters also on standby. We will continue to closely monitor the storm and are prepared to restore power outages as quickly as crews can safely get to them,” she said.
Celebrating public power in America series – Part 2: Celebrating the Modern Public Power Utility
July 6, 2021
by APPA News
July 6, 2021
The American Public Power Association is pleased to present the second in-depth, three-part Public Power Current newsletter series to celebrate public power’s past, present, and future.
Yesterday we described how local leaders began what would become the nation’s oldest continuously operated public power utility, in Butler, Missouri. Today, the Butler Electric Department is a modern utility: it owns Missouri’s first utility-scale solar farm, has emergency-only generators, a fully remodeled and upgraded power plant, and is studying the addition of wind power to help meet the needs of a growing town.
Today we share how three public power utilities have adapted to changing times and local needs.
Memphis Light, Gas and Water (MLGW) – Memphis, Tennessee
Although MLGW has existed since 1939, its parent companies started over 100 years ago. Memphis was 26 years old when the Memphis Gas Light Company, the first of MLGW’s division companies, began in 1852. The City of Memphis was about three-square miles with approximately 10,000 residents. In 1887, a group of Memphians incorporated the Memphis Light and Power Company to supply electricity to the city and, on March 18, 1887, drillers tapped into the artesian water supply beneath the city. The Artesian Water Company was formed, and Memphians stopped using water from the Wolf River. After a series of purchases, mergers, and negotiations over the next half century, Memphis had a three-service utility company. On March 9, 1939, the governor of Tennessee signed an amendment to City’s charter creating the Memphis Light, Gas and Water Division and a board of Light, Gas and Water Commissioners, who were sworn in on March 22, 1939.
Memphis sits on the banks of the Mississippi River in the southwestern corner of Tennessee. It is now the second largest city in Tennessee with a population of 651,073. Memphis also sits within Shelby County, which has a population of nearly one million residents. Today, MLGW is the nation’s largest three-service municipal utility, serving over 436,000 customer locations throughout Shelby County’s municipalities and unincorporated areas. MLGW’s mission is to safely deliver services that create and sustain superior customer experiences. Their vision is to be the trusted provider of exceptional customer value in the communities they feel privileged to serve. Their values – also known as The MLGW Way – are safety, integrity, ownership, inclusion and compassionate service.
The future is bright. MLGW is in the midst a five-year service improvement plan to update city infrastructure. The Division will deploy and commission more than 1,100 distribution automation system devices during the planning period, over 2,500 wood poles will be replaced, 1,000 sites will receive 5G telecommunications equipment and we’re replacing 5,000 lead service lines. The MLGW cast iron replacement project will be completed in 2021. This is a 30-year project that began in 1992. The Division is also replacing 17 miles of underground cable and 1,000 water lead lines.
MLGW is supplied with electricity by the Tennessee Valley Authority (TVA), a federal agency that sells electricity on a non-profit basis. MLGW is TVA’s largest customer, representing 11% of TVA’s total load. MLGW’s natural gas distribution network, which measures more than 4,650 miles in length, delivers natural gas to homes and businesses in Shelby County— nearly 40 billion cubic feet annually. And Memphis water is derived from one of the largest artesian well systems in the world. The aquifer beneath Shelby County contains more than 100 trillion gallons of water that fell to earth more than 2,000 years ago.
Service to the community extends beyond utilities. MLGW employees donate more than $1 million annually in goods and services and countless corporate and personal volunteer hours to make a positive impact. MLGW’s Public Education Program also educates Memphians on the utility industry through a variety of forums such as newsletters, community presentations, Careers-on-Wheels participation, Water Pumping Station tours, and more.
Keys Energy Services (KEYS) – Key West, Florida
KEYS, headquartered in Key West, serves the Lower Florida Keys, providing electricity from Key West to the Seven-Mile Bridge, and serves over 28,000 customers.
The City of Key West purchased the utility in 1943. The City Council created a Utility Board to oversee what is now known as KEYS. In 1969, the Florida State Legislature passed a new enabling act for the governing of KEYS, which is still in effect today, and calls for the popular election of five Utility Board members serving four-year terms. Through the Utility Board, KEYS’ customers have a say in their municipal electric utility.
In 2017 the Utility Board successfully lobbied the Legislature to update its governance to ensure representation from both within and outside the City limits. Initially, KEYS only provided electric service to the City of Key West. In 1953, the utility expanded its service area to the Seven-Mile Bridge.
In those early years, electricity was produced via local diesel generation. In the late 1970’s, the Utility Board studied alternative power supplies and decided to construct a transmission line (or TIELINE) to interconnect to the mainland power grid. On May 8, 1987, KEYS interconnected the TIELINE with the mainland power grid and KEYS’ operations changed dramatically.
KEYS currently imports nearly all of its power supply and uses local generation for emergency back-up only. The utility relies on power from the mainland because it is far less expensive than local generation and offers greater fuel diversity. As a member of the Florida Municipal Power Agency’s All Requirements Project, KEYS pools its power resources with other public power utilities in Florida. Together, the public power utilities enjoy greater efficiencies and economies of scale. Most recently, KEYS joined two Florida Municipal Solar Projects to offer utility-scale solar to its customers.
Today, KEYS is a nationally recognized Reliable Public Power Provider (RP3) by the American Public Power Association. The Utility Board’s strategic plan focuses on reliability, customer service, reasonable rates, a highly effective workforce and reducing its reliance on fossil fuels through solar, electric vehicles and general customer education. KEYS maintains a highly respected position within its local community and KEYS customers look forward to receiving the annual conservation calendar illustrated by local elementary school students and picking up a shade tree during the bi-annual Tree Giveaway.
Rochester Public Utilities (RPU) – Rochester, Minnesota
RPU was formed in 1894 as Rochester’s first municipally owned utility, initially to provide street lighting. Today, RPU serves a peak load of approximately 270 MW in a service territory of over 60 square miles. In the late 1970’s, RPU along with 17 other Minnesota municipal utilities joined together and formed Southern Minnesota Municipal Power Agency (SMMPA) to provide low-cost, reliable energy to its members.
RPU’s 200 employees work to ensure the availability of safe, reliable and efficient electricity and potable water to Rochester’s 110,000 citizens. RPU’s electric utility serves 52,000 residential and 5,000 commercial customers. Businesses in Rochester constitute about 60% of RPU’s electric utility revenues.
RPU owns a fleet of generation facilities which includes natural gas-fired peaking plants and a small hydroelectric facility. In addition, RPU retired their coal-fired generation in 2015, and that facility now runs on natural gas and is used to serve steam to a commercial customer. In the near future, RPU is planning to add additional solar to their energy portfolio.
RPU’s motto is “We Pledge, We Deliver” and their mission is to “set the standard for service.” Providing exceptional service to their customers drives everything they do. To ensure that they are meeting those expectations, RPU surveys customers on a quarterly basis. RPU’s strategic plan, which is refreshed every three years, centers on what they call the “five R’s”: Rates, Reliability, Reputation, Relationships, and Responsibility. RPU consistently maintains over 99% system reliability, and rates that are competitive with other utilities in southeast Minnesota.
Because energy and water are so crucial to economic development, RPU maintains representation on a number of boards and commissions, including, the Rochester Energy Commission, the Rochester Area Economic Development Board, the Climate Smart Municipalities Initiative through the University of Minnesota, and the Rochester Sustainability and Resiliency Task Force. They also encourage employees to participate in community organizations to maintain connections with the community and assist customers with achieving their goals.
For RPU, “Responsibility” means maintaining commitments to customers today, and generations yet to come. For years, RPU has met and exceeded energy conservation targets, and every January RPU partners with neighboring utilities to provide the latest in efficiency rebate information to vendors and contractors. In April, for their annual Arbor Day celebrations, RPU combined a tree giveaway with fun activities for Rochester’s fourth graders. In 2011, RPU was the first Minnesota utility to install EV chargers across the RPU service territory to better provide access for those with EVs and to provide visibility for RPU customers interested in learning more about EVs.
As noted above, a majority of RPU’s power supply comes from SMMPA and that contract is set to expire in March of 2030. This gives RPU a unique opportunity for self-determination in meeting their energy needs. After extensive customer engagement, the RPU Board voted to approve two future resource plan scenarios resulting in 100% renewable energy by 2030 through a combination of wind, solar, and other renewable resource options. The main difference between the plans is how to meet RPU’s capacity obligations, through either a simple-cycle natural gas turbine or batteries.
As with every other industry across the world, the utility industry was greatly affected by the pandemic over the last 15 months. RPU’s dedication to its customers continued throughout the pandemic as they adjusted safety protocols, but the delivery of reliable electric and water services never waned. RPU partnered with the City of Rochester, Olmsted County, and local non-profits to provide assistance for those Rochester residents and business owners in need of resources. CARES Act funding totaling $749,856 to Rochester businesses and $123,701 to qualifying residential customers was distributed. Aside from normal business calls received, RPU Customer Care representatives assisted over 5,000 additional callers between May and December 2020 interested in benefits and resources available.
RPU’s strategic planning and steadfast focus on safe, reliable delivery of services to its customers hasn’t gone unnoticed. RPU is very proud to be included in the elite four percent of all public utilities in the country to receive the American Public Power Association’s Reliable Public Power Provider (RP3) Diamond Award, the industry’s highest honor for providing safe and reliable electricity for customers.
Even Better Together – Celebrating Joint Action Agencies
Public power utilities form “joint action agencies” to serve multiple public power utilities in a region or a state where economies of scale can be helpful to meet energy supply and other needs. Today, there are nearly 60 of these organizations nationwide.
Over 50 years ago, APPA, with federal encouragement and the steadfast support of public power leaders, embarked on an effort to promote the formation of joint action agencies. These initial ventures were often intended to correct expensive and unreliable wholesale power rates being charged by private utilities. They would allow individual municipal utilities to participate in power pools, to buy wholesale power as a group, and to jointly finance power plants and major transmission systems. Later, services evolved to help individual utilities meet new electric reliability standards, evolving public policies, resource planning, power management, programmatic administration and regulatory compliance, contract negotiations, workforce development, and more. Where all participants – especially smaller utility systems – can be helped with remaining competitive in an increasingly complex electricity market.
In Part 3, tomorrow, we will explore how municipalization efforts have touched local communities. And how the public power business model continues to embrace innovation, local commitment, and power strong communities – even in the face of the most challenging of circumstances.
Glendale Water & Power signs contract tied to C&I energy efficiency program
July 6, 2021
by Peter Maloney
APPA News
July 6, 2021
Glendale Water & Power (GWP) has signed a contract with Lime Energy for energy efficiency that aims to support the California public power utility’s clean energy transformation.
Under the $18 million, seven-year contract, Lime Energy will deliver 36,500 megawatt hours (MWh) in energy savings by providing a combination of targeted energy efficiency technologies, upgrades, and services for small and large businesses in Glendale.
GWP projects it will have 964,352 MWh of retail energy sales in its 2021-2022 fiscal year, rising to 940,282 MWh in fiscal year 2030-2031.
The contract institutes a pay-for-performance program that is designed to provide energy efficiency upgrades to commercial and industrial (C&I) businesses in the utility’s service territory. The program will use the direct install energy efficiency program model, which is designed as a turn-key process for C&I customers.
“We are committed to accelerating and ramping up our sustainability efforts by providing a turnkey upgrade program for our commercial and industrial business customers,” John Takhtalian, interim general manager of Glendale Water & Power, said in a statement. “This program helps our customers meet their energy efficiency goals and helps GWP take more steps toward a clean energy future.”
Among the services Lime Energy, subsidiary of Willdan Group, will provide GWP are marketing, sales, engineering, project implementation, and customer support for a range of energy efficiency practices and technologies. The technologies covered under the program include lighting, refrigeration, and heating, ventilation and air conditioning (HVAC).
The contract with Lime Energy is not GWP’s first energy efficiency program. “GWP has a long history of providing energy efficiency programs for our customers,” Atineh Haroutunian, the utility’s public benefits marketing manager, said via email. GWP has invested over $50 million in multiple energy efficiency programs, for both residential and business customers, since 2000, she said.
GWP has provided most, if not all, of those energy efficiency programs through outside contractors. “Using outside contractors is the most cost-effective and efficient why to provide these kinds of services to our customers,” Haroutunian said. “It allows us to provide the most variety in program offerings and gives our customers access to more cutting edge energy efficiency products and services.”
The program with Lime Energy was developed in response to City Council recommendations to develop clean energy programs as part of the utility’s plan to repower its Grayson power plant.
GWP is repowering the Grayson plant with a combination of renewable energy resources, energy storage and a limited amount of thermal generation. The plan includes a 75 MW, 300 megawatt-hour (MWh) battery energy storage system, as much as 50 MW of distributed energy resources that include solar photovoltaic systems, energy efficiency and demand response programs, and 93 MW of thermal generation from up to five internal combustion engines.
The Lime Energy program is part of GWP’s Clean Energy Program suite. Another element of the utility’s Clean Energy Program was its launch in April of its Peak Savings demand response program for residential and commercial customers. The program provides incentives for reducing demand on the electric grid on days when demand is highest and is being run by Franklin Energy.
Maine lawmakers pass amended bill that would create state consumer-owned utility
July 1, 2021
by Paul Ciampoli
APPA News Director
July 1, 2021
The Maine Legislature on June 30 voted in favor of a bill that would create a consumer-owned utility in the state called Pine Tree Power, casting a bipartisan 77-68 vote in the House to attach an amendment to the bill that they supported two weeks ago. The Maine Senate voted 18-15 to support the new package.
An amendment introduced June 30 revised the bill to require the Pine Tree Power Company to pay property taxes directly to Maine municipalities, while maintaining its nonprofit status. This replaced previous bill language requiring payments in lieu of taxes.
Maine Rep. Seth Berry, sponsor of L.D. 1708, said the amendment spoke directly to the top two concerns of Maine Gov. Janet Mills, and concerns voiced by some municipal leaders. “We are pleased that the revised language won back the support needed to send this to Governor Mills, and hope to win her support for our effort as well,” he said in a statement.
The bill now heads to Mills’ desk. If she signs the bill or allows 10 days to pass without either her signature or a veto, the bill will become law. This would put the question of consumer ownership of Maine’s grid on the ballot in November 2021.
If Mills chooses to veto the bill, “we will continue our campaign through a citizens’ initiative,” said Stephanie Clifford, campaign manager for Our Power, a group that supports the creation of a consumer-owned utility in the state.
“Petition gathering on such a citizen-initiated referendum would begin this summer and would likely put the question on the ballot in November 2022, the same day that Mills and all legislators are up for re-election,” she said.
The consumer-owned entity that would be created under the bill would take over the electric service now provided by Central Maine Power and Versant Power. Central Maine Power Company and Versant Power (formerly known as Emera Maine), are majority owned by Iberdrola of Spain and Emera of Canada, respectively.
Moody’s, S&P affirm strong credit ratings for OPPD
July 1, 2021
by Paul Ciampoli
APPA News Director
July 1, 2021
Moody’s Investors Service and S&P Global recently affirmed strong ratings on long-term bonds and short-term debt for Omaha Public Power District (OPPD), the Nebraska public power utility reported on July 1.
Moody’s credit opinion affirmed OPPD’s Aa2 senior bond rating, Aa3 subordinate bond rating, and P-1 commercial paper (CP) rating with a stable outlook. It pointed to OPPD’s strengths in maintaining competitive rates, as well as sound debt service coverage (DSC) and liquidity. Over the last two years, OPPD has achieved DSC averaging 2.37x, while days’ cash on-hand has averaged around 180 days.
The utility’s credit quality, Moody’s noted, is further supported by its location in an all-public-power state. The agency also praised the utility’s strong 13-county southeast Nebraska service area, which has proven resilient through economic cycles.
Meanwhile, S&P affirmed OPPD’s AA senior bond rating, AA- subordinate bond rating, and A-1+ CP rating.
At the end of 2020, the utility had $1.7 billion of senior- and subordinate-lien bonds outstanding, and $250 million CP notes. In March, OPPD increased its CP authorization to $350 million (from $250 million), and secured an additional $200 million line of credit, bringing total liquidity facilities to $450 million.
The district’s key strengths that S&P points to include, “a strong and diverse customer base supported by an economically sound service area, the district’s proven ability to maintain robust coverage of fixed charges, and substantial liquidity.”
S&P called OPPD’s enterprise risk profile “very strong.” Contributing factors include a deep and diverse customer base, as well as plans to lower carbon intensity, while adding up to 600 megawatts of solar generation with natural gas backup.
Like Moody’s, S&P also noted that OPPD is in a strong market position with its competitive rates.
Celebrating public power in America series – Part 1: Celebrating America’s Public Power History
July 1, 2021
by APPA News
July 1, 2021
The American Public Power Association is pleased to present this in-depth, three-part Public Power Current newsletter series to celebrate public power’s past, present, and future. Thank you to the utility systems for their contributions about public power’s founding and evolution (Part 1), the benefits of modern public power systems (Part 2), and how public power’s best attributes, and discussions about municipalization and community choice aggregation, have touched local communities (Part 3).
The public power business model has embodied an American tradition deeply rooted in local communities: neighbors working together to provide an essential local service. A service that must be reliable, where rates are reasonable and cost-based, and electricity is distributed on a not-for-profit basis under the fiduciary oversight of local governing boards. Just like your local school or fire department, public power utilities belong to a local or regional governmental structure that effect the day-to-day lives of 49 million people today. This is our story.
The Founding Days of Public Power
The very first public power utility was established 141 years ago. Shortly after 8pm on the evening of March 31, 1880, mechanics in the farming community of Wabash, Indiana hitched a threshing machine engine to the west wall of the Wabash County Courthouse, sending motive power to a generator in the basement. Lights atop the courthouse bathed downtown Wabash in a brilliant light within minutes. One eyewitness account described the nighttime scene as follows:
“People stood overwhelmed with awe, as if in the presence of the supernatural. The strange, weird, light, exceeded in power only by the sun, rendered the square as light as midday. Men fell on their knees, groans were uttered at the sight and many were dumb with amazement. We contemplated the new wonder in science as lightning brought down from the heavens.” – Museum of Electricity, citing an excerpt from a newspaper account in Men and Volts: The Story of General Electric
The Wabash City Council’s decision to own (instead of franchise) its new electric lighting system created America’s first municipal utility – a model that still thrives today. Wabash later relinquished the title of America’s oldest public power community to Butler, Missouri, when it sold its utility to a private company.
The City of Butler prides itself as “electric city.” A local delegation including Captain F.J. Tygard had attended the 1876 Philadelphia Centennial Exposition featuring the Corliss Centennial Steam Engine at the world’s fair. The Brush Electric Light and Power Company was later formed in Butler, with local financing.
Butler became the first city west of the Mississippi River to have electricity when, on the evening of December 6, 1881, an electric lighting plant powered four burners atop the copula of the Butler Courthouse, illuminating the town square and the buildings surrounding it. Reportedly, people would take the train from Kansas City just to see the Butler Courthouse lights. (Note that Thomas Edison’s commercial Pearl Street Station in New York did not become operational until nearly a year later, in September 1882.) Tygard later became Butler’s mayor and, in 1900, the city acquired the lights and the power plant.
Today, the Butler Electric Department is America’s oldest continuously operated public power utility.
“For the Benefit of the People”
The New York Power Authority was an early experiment in large-scale public power. In 1907, New York Governor Charles Evans Hughes first declared that the state’s undeveloped run-of-the-river waters “should be preserved and held for the benefit of the people and should not be surrendered to private interests.” Ultimately, it would take 25 years and then-Governor Franklin D. Roosevelt to gain public and political support for a Power Authority “to give back to the people the waterpower which is theirs.” On April 27, 1931, Roosevelt signed into law the Power Authority Act, declaring, “It is my earnest hope that this is the forerunner of cheaper electricity for the homes and farms and small business people of the state.” It led to the development of what is today known as the St. Lawrence-Franklin D. Roosevelt Power Project and the Niagara Power Project.
The Public Power Model Spreads Nationwide
Public power utilities were being formed at a rapid pace in the early 20th century. The “golden days” came in the early 1920’s, when more than 3,000 municipal utility systems were in operation, according to David Schap in “Municipal Ownership in the Electric Utility Industry: A Centennial View.”
Several factors led to the establishment of so many municipal utilities. In some communities, it was a practical decision made by local leaders who wanted to better the lives for local citizens. Smaller communities were simply not viewed as attractive, compared with the profit potential in larger cities, to private electricity companies. When the private sector failed to meet their needs, these communities took the task upon themselves. As a result, public power became a real threat to private electricity companies. The number of municipal utilities then shrank under the pressures of an aggressive private industry and rapidly changing technologies. By 1930, the number of public power utilities fell nearly 40%, to approximately 1,900, according to Schap. Still, public power utilities were able to survive in frequently unfavorable political and economic environments.
This downward spiral was reversed in the early 1930’s. By the end of that decade there were approximately 2,000 community-owned and operated electric utilities – a number that still stands today and is a continuing testament to the value of public power. Several factors contributed to this more modest wave of municipal ownership. The development of diesel technology made small-scale municipal generation more efficient. But the growing resentment against private utilities, with excessive rates and absentee owners who exported profits at the expense of the utility systems, also stood out.
The Federal Government Embraces “Public Power”
Increasingly active federal involvement also played a major role in promoting public power. In his famous “Portland Speech,” on September 21, 1932, now-President Franklin D. Roosevelt said that inexpensive public power would serve as a yardstick against which to judge private utilities.
“The very fact that a community can, by vote of the electorate, create a yardstick of its own, will, in most cases, guarantee good service and low rates to its population. I might call the right of people to own and operate their own utility something like this: a ‘birch rod’ in the cupboard to be taken out and used only when the ‘child’ gets beyond the point where a mere scolding does no good.” – President Franklin D. Roosevelt
With the backdrop of a nation suffering from the Great Depression – especially in the hard-hit Tennessee valley – the Tennessee Valley Authority (TVA) was created by congressional charter in 1933 to improve the quality of life of valley residents by modernizing a rural economy. In the 1940’s, with the world now engulfed in war, TVA embarked upon one of the largest hydropower construction programs ever created, providing desperately needed jobs along with the electricity necessary to power new industries.
Public power’s strong ties to hydropower development – and economic advancement across America – had extended west as well.
What is now known as Hoover Dam was dedicated on September 30, 1935, spurring significant growth across the southwest. The United States Congress had authorized the “Boulder Canyon Project Act,” signed into law by President Calvin Coolidge in 1928, after significant advocacy efforts by local public officials, including with the City of Los Angeles, which had founded its own utility in 1902. Hoover Dam was completed in 1936 and was the largest hydroelectric plant in the world until 1948. From 1936 to 1987, the Los Angeles Department of Water and Power along with a collection of other power utility companies ran the dam’s power generators under contract with the U.S. Bureau of Reclamation. Today, those units supply hydropower to predominantly public power and tribal contractors across Southern California, Arizona, and Nevada.
The Future Is Bright
Public power utilities in the 20th century were integral parts of the nation’s electric utility infrastructure. Now they have capitalized on new techniques and technologies to provide low-cost, superior service to their communities. As President Franklin D. Roosevelt had envisioned nearly 90 years ago, public power systems have consistently served as the yardstick by which the performance of other utilities have been measured.
In Part 2, we will explore public power’s many successes to date – how the business model has continued to adapt to changing times while maintaining traditional “public good” values. Through the ongoing efforts of dedicated public power boards and city councils, employees, citizen owners, and advocates, public power utilities must continue to lead the industry by acting in the best interests of their customers, reflecting the needs of the communities they serve, and remaining strongly competitive. This continued competition benefits all electric customers, not just those served by public power.
LIPA, PSEG Long Island reach agreement on contract reforms in response to tropical storm failures
June 30, 2021
by Paul Ciampoli
APPA News Director
June 30, 2021
The Long Island Power Authority (LIPA) on June 28 announced that it has reached an agreement with PSEG Long Island on a set of contract reforms that will provide LIPA and the New York State Department of Public Service (DPS) with greater oversight authority and resolve pending litigation related to PSEG Long Island’s failures to meet contract standards during Tropical Storm Isaias.
LIPA owns the Long Island electric grid and contracts with PSEG Long Island, a subsidiary of Public Service Enterprise Group Incorporated, to operate the grid on a day-to-day basis.
Under the settlement, PSEG Long Island will forfeit $30 million for Tropical Storm Isaias-related failures.
Specifically, the agreement calls for:
- $6.6 million to reimburse customers without power for more than 72 hours for food and medicine spoilage;
- $19.5 million in payments and credits to LIPA towards the cost of upgrading the information technology and communication systems that failed during the storm; and
- $3.9 million in contributions to Long Island-based charities
On the afternoon of Tropical Storm Isaias, all of PSEG Long Island’s restoration and communications systems failed, leaving over 500,000 customers unable to communicate with their electric utility and hampering restoration efforts.
Over one million customer calls received busy signals, 300,000 text messages bounced back, and web services and mobile phone applications failed. Customers were unable to report critical emergencies, and those that could get through received inaccurate restoration times, LIPA said.
Hurricane Isaias made landfall at around 11:10 pm EDT on August 3, 2020, near Ocean Isle Beach, N.C., as a category 1 storm with maximum sustained winds of 85 mph. It then weakened to a tropical storm while proceeding north-northeastward inland along the Eastern Seaboard, reaching near Albany, N.Y., by 5:00 p,m. EDT on August 4.
Investigations by LIPA and DPS ordered by New York Gov. Andrew Cuomo determined that PSEG Long Island management was aware that critical information technology systems were not working before the storm, had inadequate business continuity plans, and had not maintained or rigorously stress tested systems.
The investigations led to the adoption by PSEG Long Island of 85 specific recommendations by the LIPA Board to correct information technology, management, and emergency management deficiencies, which are all in addition to the penalties and contract reforms announced on June 28.
Agreement creates stronger protections for customers
The agreement will also create stronger protections for customers, LIPA noted.
The President and Chief Operating Officer of PSEG Long Island will have full and final operational decision-making authority and the local executive team will be strengthened with new positions in information technology, cybersecurity, emergency response, business services, and human resources.
“To avoid the lack of accountability for local operations that was evident in the company’s response to Tropical Storm Isaias, all Long Island employees will report to managers on Long Island. Additionally, the compensation for all PSEG Long Island employees will be linked to the performance of Long Island operations,” LIPA said.
There will also be a strengthening of long-term planning, budget development, and cost management. New standards will require greater long-term planning, transparency, and accountability for delivering projects and services on time and within budget that meet the needs and deliver value for customers.
In addition, the reformed management contract increases the amount of PSEG Long Island’s annual compensation at risk from $10 million to $40 million, including automatic reductions for failures to meet minimum emergency response, customer satisfaction, and reliability standards and a new DPS investigative process to reduce compensation for failures to provide safe, adequate, and reliable service to customers.
PSEG Long Island will be subject to detailed performance requirements set annually by the LIPA board and DPS to ensure the company meets industry best practices across all the services provided to LIPA and its customers.
The agreement also calls for stronger oversight protections for LIPA and DPS.
The agreement requires timely, affirmative disclosure to LIPA and DPS of issues, such as those that occurred before and during Tropical Storm Isaias, that significantly impair PSEG Long Island’s ability to provide reliable service, emergency response, cybersecurity, financial impairment, noncompliance with laws, or circumstances that may endanger public health, safety, and welfare.
LIPA said new provisions will ensure that PSEG Long Island’s decisions to hire affiliates to perform services, including information technology services, at customer expense will deliver better quality and lower cost than competing vendors.
The agreement-in-principal, when finalized, will be presented to the LIPA Board of Trustees for their consideration.
Public power utilities play key role in Pacific Northwest’s response to historic heat wave
June 30, 2021
by Paul Ciampoli
APPA News Director
June 30, 2021
Public power utilities and their customers have played a key role in helping to maintain a reliable supply of power in the face of a historic heat wave that gripped the region in recent days and in turn placed power demand pressure on regional grids.
Several major cities in the Pacific Northwest have experienced temperatures over 100 degrees, shattering records for several days in a row.
Seattle City Light
One of those cities is Seattle, Washington, where public power utility Seattle City Light on June 28 noted that it was carefully monitoring external conditions and its systems to maintain reliable power to customers in Seattle and our surrounding communities. “We have brought in extra crews to respond to unplanned outages and we have postponed planned outages at least through Tuesday, June 29 to minimize the impact on customers,” Seattle City Light said in a post on its website.
Seattle City Light noted that it was participating in daily calls with the Northwest Power Pool (NWPP), which manages resource adequacy across the region. While utilities in the Northwest typically see their highest demand in the winter, not the summer, the NWPP continues to report adequate resources to meet the demands of this sustained heat wave, Seattle City Light said on June 28. “The fact that we are a hydropower region, not overly dependent on intermittent resources like solar and wind, is very helpful in this situation,” the utility noted.
At the peak on Sunday, June 27, Seattle City Light had about 1,700 customer meters without power at one time. “We expect we could see similar outages with the heat continuing through today and we are prepared to respond as quickly as is safely possible,” it said on June 28.
Snohomish County PUD
As with other public power utilities responding to the heat wave, Washington State’s Snohomish County PUD called on customers to do their part in helping to keep power demand down by making small changes to conserve energy like closing blinds and using small appliances in their kitchens.
In a June 25 tweet, Washington State’s Snohomish County PUD noted that “Some have asked if our power supply is at risk due to this heat. The short answer is no. We expect that energy demand on June 28 will be its highest ever in June. Fortunately, above-average water supply and snowpack this spring have us well-positioned going into summer. But when demand for power is high, we sometimes have to buy power on the market, & prices are high right now! Help us keep costs and rates low by conserving energy between noon and 10 p.m. Wash dishes, run laundry & take showers in the morning or late at night.”
BPA
As record-breaking heat bore down on the Pacific Northwest this past weekend, the Bonneville Power Administration (BPA) detailed several steps to position the federal power and transmission system to serve its customers during the weather event.
On the Power Services side of BPA, BPA said these factors were helping:
- The Columbia Generating Station, a nuclear plant owned by Energy Northwest that produces power marketed by BPA, recently returned online from a spring refueling outage, adding over 1,100 megawatts of generation in the Northwest and the West;
- Programmed fish spill on the lower Columbia and Snake rivers transitioned from spring to summer operations, increasing the federal hydropower generation from those facilities;
- The Bureau of Reclamation has the Grand Coulee reservoir well positioned to meet its refill target in early July, freeing up the remaining water flow to pass through the system for both power and non-power purposes.
BPA said that despite the lower-than-average water year, there is plenty of water behind Grand Coulee Dam and some snowpack left in the Canadian Rockies. Unlike 2015 and 2001, years with a similar volume of water, the shape of this year’s runoff has been slower with snow gradually melting above Grand Coulee, it noted.
On the transmission side, BPA said it was taking measures to ensure the safe and reliable flow of electricity over the weekend of June 26-27. BPA owns and operates more than 15,000 circuit miles of transmission lines across the Northwest and small amounts in Nevada, Utah and California.
Last Thursday, BPA restricted planned maintenance on its transmission grid from 6 a.m. Monday, June 28 through Tuesday, June 29 at 10 p.m., so the federal agency would be able to leverage the system to its greatest use when load was expected to increase with the start of the workweek.
“Having all of our lines available will help relieve congestion on the system,” said BPA Vice President of Transmission Operations Michelle Cathcart. “With these unprecedented temperatures, we want to ensure electricity can move freely and reliably meet customer demands.”
On June 29, BPA said in a tweet that it expected energy use in the Tri-Cities area of Washington State to peak between 5 and 7 p.m. “Please do what you can to reduce electricity use today. Thanks for helping us get through the heat of the day yesterday,” BPA said in the tweet.
City of Richland, Wash.
BPA transmits electricity to Richland Energy Services (RES) and other Tri-Cities utilities through a transmission system designed to meet peak and above-peak demand for power throughout the region.
BPA informed the City of Richland, Wash., that the week’s extreme heat was straining the regional electric energy transmission system. If total load approaches maximum system capacity, BPA will require RES to shift or shed load on its distribution system, the city noted on June 28.
RES “will do everything it can to manage load by shifting customer loads when possible. This is done behind the scenes and transfers electrical connections between distribution lines with little to no impact on citizens,” the city said in a news release.
Shedding load occurs when the demand for electricity approaches supply and BPA is forced to reduce power demand by temporarily removing some customers. This would require RES to disconnect power to some customers and result in short-term, rolling power outages, the city noted.
If shedding load is required by BPA, the city said it would focus on maintaining essential businesses and services. At that time customers will likely see some power outages from a half hour up to four hours. REs intends to minimize the duration of these outages by rotating them through the city, Richland said on June 28.
BPA’s notification to utilities to shed load can occur quickly, so it is unlikely that customers will be notified before an outage is implemented, the city noted.
Benton PUD
Meanwhile, Benton PUD on June 29 said in a tweet that it had not been asked, nor was it planning, to shed load.
“We are asking customers to work together to conserve energy. Collectively as a community, we can make a difference. This will help in preparing in the event one of BPA’s major lines or critical equipment fails,” it said.
Benton PUD serves over 50,000 customers in Kennewick, Finley, Benton City, Prosser, and outlying areas in Washington State.
Heat wave extends to Canada, pressuring grid
In Canada, the province of Alberta’s power grid came under pressure in the wake of extreme heat.
In response to the ongoing heat wave across the province in Western Canada, the Alberta Electric System Operator (AESO) on June 29 asked Albertans to help conserve energy to ensure adequate supply and reduce the possibility of power outages.
“Yesterday we saw an unprecedented jump in energy use, reaching 11,512 MW, beating our previous summer peak demand record of 11,169 MW,” says Dennis Frehlich, Vice President, Grid Reliability, at AESO. “We’re on track to break that record for a second day in a row and so we’re asking Albertans to play their part to conserve energy.”