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FERC approves policy statement on state efforts to develop transmission facilities

June 22, 2021

by Paul Ciampoli
APPA News Director
June 22, 2021

The Federal Energy Regulatory Commission (FERC) on June 18 approved a policy statement that addresses state efforts to develop transmission facilities through voluntary agreements to plan and pay for those facilities. 

The policy statement, which was approved at the Commission’s monthly open meeting, notes that such voluntary agreements include agreements among: (1) two or more states; (2) one or more states and one or more public utility transmission providers; or (3) two or more public utility transmission providers, FERC staff noted in a presentation.

The policy statement also notes that voluntary agreements can further the Commission’s priority of developing cost-effective and reliable transmission facilities by, for example, providing states with a way to prioritize, plan, and pay for transmission facilities that, for whatever reason, are not being developed pursuant to the regional transmission planning processes required by Order No. 1000.  In Order 1000, which was issued in 2011, FERC reformed its transmission planning and cost allocation requirements.

The policy statement also clarifies that voluntary agreements are not categorically precluded by the Federal Power Act or the Commission’s existing rules and regulations. 

The policy statement provides an example of a recent Commission order accepting a study agreement that initiated a voluntary agreement process in the PJM regional transmission organization.

The statement notes that to the extent that states, public utility transmission providers, or other stakeholders believe that the relevant tariffs impose barriers to state efforts with respect to Voluntary Agreements, the Commission is open to filings to remove or otherwise address those barriers. 

Parties considering the use of such agreements are encouraged to contact Commission staff to discuss potential voluntary agreements, FERC staff noted.

FERC, NARUC unveil formation of federal/state task force on transmission

June 22, 2021

by Paul Ciampoli
APPA News Director
June 22, 2021

The Federal Energy Regulatory Commission (FERC) and the National Association of Regulatory Utility Commissioners (NARUC) on June 18 announced the formation of a joint federal-state task force on electric transmission, which FERC established through a related order issued at its monthly meeting.

“Members of this first-of-its-kind task force will explore transmission-related issues to identify and realize the benefits that transmission can provide, while ensuring that the costs are allocated efficiently and fairly,” FERC and NARUC said.

FERC’s order asks NARUC to nominate up to 10 state regulators to join FERC commissioners on the task force.  All task force meetings will be open to the public and will use a dedicated FERC docket for this process to provide stakeholders and the public with the opportunity to comment for the record.

Specifically, the task force will seek to identify barriers that inhibit planning and development of optimal transmission necessary to achieve federal and state policy goals, as well as potential solutions to those barriers, explore potential bases for one or more states to use FERC-jurisdictional transmission planning processes to advance their policy goals, including multi-state goals and explore opportunities for states to voluntarily coordinate to identify, plan and develop regional transmission solutions.

It will also review FERC rules and regulations regarding planning and cost allocation of transmission projects and potentially identify recommendations for reforms and examine barriers to the efficient and expeditious interconnection of new resources through the FERC-jurisdictional interconnection processes, as well as potential solutions to those barriers.

In addition, the task force will discuss mechanisms to ensure that transmission investment is cost effective, including approaches to enhance transparency and improve oversight of transmission investment including, potentially, through enhanced federal-state coordination.

Twenty-two individuals, eleven utilities earn national public power awards

June 22, 2021

by Paul Ciampoli
APPA News Director
June 22, 2021

Twenty-Two individuals and eleven utilities on June 22 were recognized for service to the American Public Power Association and the public power industry during APPA’s National Conference in Orlando, Florida. 

The individuals and utilities recognized at the ceremony were: 

Alex Radin Distinguished Service Award

This award is the highest award granted by the American Public Power Association. The award recognizes exceptional leadership and dedication to public power.

James D. Donovan Individual Achievement Award

This award recognizes people who have made substantial contributions to the electric utility industry, with a special commitment to public power. 

Larry Hobart Seven Hats Award

This award recognizes managers of small utilities serving fewer than 2,500 meters. These managers have a very small staff and must assume multiple roles.

Harold Kramer-John Preston Personal Service Award 

This award recognizes individuals for their service to the American Public Power Association.

Spence Vanderlinden Public Official Award

This award recognizes elected or appointed local officials who have contributed to the goals of the American Public Power Association.

Robert E. Roundtree Rising Star Award

This award is a scholarship presented to future leaders in public power. The recipient receives a stipend to travel to an Association conference or training program to advance their education and development in public power.

Mark Crisson Leadership and Managerial Excellence Award 

This award recognizes managers at a utility, joint action agency, or state or regional association who steer their organizations to new levels of excellence, lead by example, and inspire staff to do better.

E.F. Scattergood System Achievement Award

This award honors American Public Power Association member systems with outstanding accomplishments.

Sue Kelly Community Service Award

This award recognizes utilities for their “good neighbor” activities that demonstrate commitment to the local community.

Energy Innovator Award

The Association’s research program, Demonstration of Energy & Efficiency Developments (DEED), nurtures innovation in public power. Each year, the program recognizes innovative utility projects with this award.

APPA, other groups urge DOE to incorporate foundational principles for supply chain security

June 22, 2021

by Paul Ciampoli
APPA News Director
June 22, 2021

As the Department of Energy (DOE) considers further action on energy sector supply chain security, any new measures must be risked-based, directives should be clear, prospective, and scalable, there should be a DOE focus on vendor risks and directives must be cost-conscious, the American Public Power Association (APPA), the Large Public Power Council (LPPC), National Rural Electric Cooperative Association (NRECA), and the Transmission Access Policy Study Group (TAPS) recently asserted.

The June 8 comments submitted by the four trade associations responded to a DOE Request for Information (RFI) seeking input from stakeholders to inform future recommendations for supply chain security in U.S. energy systems.

The RFI was issued on April 20 in conjunction with an announcement by DOE that it was revoking the “Prohibition Order Securing Critical Defense Facilities,” which took effect on January 16, 2021, and prohibited utilities that supply critical defense facilities from procuring  China specific bulk power system (BPS) equipment that pose an undue risk to the BPS, the security or resilience of critical infrastructure, the economy, national security, or safety and security of Americans.

The prohibition order was associated with Executive Order (EO) 13920, Securing the United States Bulk-Power System, which President Biden suspended for a 90-day review upon entering office in January. EO 13920 was briefly reinstated following the 90-day suspension, but the emergency declaration of the EO expired on May 1. 

Four foundational principles

In their joint comments, the four trade associations said that as a replacement for EO 13920 is considered, DOE should incorporate into its thinking four foundational principles as follows: 

New measures must be risk-based: The consideration of any new standards, measures, or prohibitions must be calibrated to reflect the risk of the related infrastructure or activity to the nation’s security or public health, APPA and the other groups commented.

The definition of Critical Electric Infrastructure in Section 215A of the Federal Power Act (“Critical Electric Infrastructure Security”) provides an important touchstone for prioritization of these efforts, specifying that “Critical Electric Infrastructure” means “a system or asset of the bulk power system, whether physical or virtual, the incapacity or destruction of which would negatively affect national security, economic security, public health or safety or any combination of such matters,” the groups said.

“Key elements of this definition focus attention on the bulk power system (as opposed to distribution systems), and on the impact that the incapacity of such system may have on national (not local) security, economics and public health or safety.”  

 Directives should be clear, prospective, and scalable: APPA, LPPC, NRECA and TAPS said that clarity in connection with any directives, with respect specifically to the facilities that are addressed, and the nature of any activity prescribed or prohibited, is critical. “Ambiguity can be costly and time consuming and ultimately undermine the effectiveness of the directive. Further, directives should be prospective only, and effective only once all definitions and required regulations are in place. Again, ambiguity as to whether the directive applies to infrastructure already in place, or to activities and contracting already underway, will be both costly and may adversely affect grid reliability. Finally, where possible, directives should be scalable, in recognition of widely varying size and capabilities of affected electric utilities.”          

 Directives must be cost-conscious: Closely related to the precept that any new measures must be calibrated to reflect varied risks, DOE must be mindful of the cost of any directives, the groups told DOE. “The cost of electric service is a key factor in the nation’s economic health, and the reality of varying, but finite resources and budgets suggests that over-spending on security measures may compromise grid reliability in other respects. This is especially important to consumer-owned, not-for-profit public power utilities and rural electric cooperatives, who are owned by the consumers they serve and must bear any new costs imposed by new requirements.“

DOE should focus on vendor risks: The groups said that the electric utility industry’s ability to influence the security measures undertaken by industry suppliers is limited, and particularly so for smaller utilities. Though vendors are outside the direct authority of the Federal Energy Regulatory Commission and the North American Electric Reliability Corporation, “DOE may use its influence to affect supplier practices by encouraging suppliers to adopt shared security practices, and to foster security certification upon which the industry can rely.”   

APPA, LPPC, NRECA, and TAPS also responded to a series of questions outlined in the RFI.

In conclusion, the Associations urged DOE “to directly engage with vendors that provide equipment to electric utilities to address any concerns the department may have about risks in the supply chain. The vendors are best suited to address such questions. Any new measures, directives, requirements, or prohibition authority that DOE chooses to pursue regarding electric infrastructure must be risk-informed, clear, prospective, and scalable, and take cost into account to avoid unintended consequences to grid security and reliability.”

San Diego city council members unveil plan that includes municipalization study

June 21, 2021

by Peter Maloney
APPA News
June 21, 2021

San Diego city council members Sean Elo-Rivera, Joe LaCava, and Monica Montgomery Steppe recently said that work has begun on an energy independence plan for the city that includes conducting a public power feasibility study.

A public power feasibility study would provide an analysis of the viability of municipalization for San Diego. The study would include an analysis of the costs, benefits, and process of creating an alternative to an investor-owned utility.

The scope of the study would include estimates of:

Additional items identified through a community engagement process could be included for analysis in the study.

The announcement of the energy independence plan came on the heels of a May 25 vote in which the city council approved a new franchise agreement between the city and SDG&E that could run for as long as 20 years. The agreement was ratified 6 to 3, just meeting the two-thirds super majority required for passage.

Council members LaCava and Montgomery Steppe voted against the measure. Council member Elo-Rivera voted in favor of it.

“On Tuesday, I voted in support of the Mayor’s proposed Franchise Agreement and committed to the community that I would take immediate action to ensure San Diego is better positioned the next time we determine our energy future,” Elo-Rivera said in a statement. “I’m proud to stand with two colleagues who fought hard for the best franchise deal possible as we look toward the future and begin the process of building a path toward energy independence.”

Another element of the energy independence plan calls for the creation of an energy independence fund. The three council members said they would work with Mayor Todd Gloria and the city’s Environment Committee to create an Energy Independence Fund that would allocate a minimum of $1.2 million of SDG&E’s franchise bid payments over the next five years.

The $1.2 million is the difference between the amount SDG&E will pay annually to the city over the first five years of the agreements, a total of $10 million, and the projected franchise revenue, $8.8 million, from the city’s proposed fiscal year 2022 budget.

The funds would create a pool of money for strategic investments, such as a refund payment to exit the agreement with SDG&E. The funds would create opportunities for alternatives that would make potential “off-ramps” from IOU electric service viable, the three council members said.

The franchise agreement runs for 10 years with an automatic renewable for another 10 years. But the agreement also gives the city the option to void the automatic renewal if that option is supported by a two-thirds of the city council. The extension can also be voided if the city decides to create a public power utility.

The new franchise agreement also includes accountability and transparency measures and the formation of a Compliance Review Committee to review audit findings, assess compliance with agreement terms, and provide input to the mayor and city council.

In an April 2020 consultant’s report, NewGen Strategies and Solutions estimated the capital costs of severing electric and gas systems in San Diego from SDG&E could run from $219 million on the low end to as much as $2.45 billion.

The report also found that electric power customers would fare better under public ownership, compared with SDG&E ownership, under low- and base-case scenarios but would save money under the high-cost scenario.

Natural gas customers would enjoy “significantly lower rates” than SDG&E under all cost scenarios, if the city paid a purchase price that reflected the cost to replace and improve SDG&E’s assets less depreciation.

Work underway to develop a NAESB base contract for voluntary renewable energy certificates

June 21, 2021

by Paul Ciampoli
APPA News Director
June 21, 2021

Whether it is successfully responding to the COVID-19 pandemic and natural disasters or building a more united and comprehensive response to the evolving threat of cyberattacks, connectivity has provided the public power community with the ability to successfully respond to these challenges, said Joy Ditto, President and CEO of the American Public Power Association (APPA), at APPA’s National Conference in Orlando, Fla., on June 21.

Public power’s connectivity “is important because we are a community,” Ditto said. “That is an important part of who we are. I say that not just to tout the importance of APPA, although of course your membership and participation are crucial, but because it defines who we are as part of the broader electric sector.” 

For over 80 years, the entire public power community “has not only shared information and insights into best practices but have grappled with difficult federal policy issues. Issues such as transmission rates, regional transmission organizations and wholesale electricity markets, comparable tax incentives, environmental regulation, cyber security, and climate change policy, to name several.”

On the issue of climate change, “in early 2020 you all coalesced around a broad position that Congress should act on climate change in federal legislation. You’ve made it clear that that legislation should ensure that the affordability and reliability of electricity must be weighed equally with greenhouse gas emissions reductions – this is a three-legged stool.“

Ditto noted that she often remarks that public power utilities “are representatives of the variety of perspectives embodied in our great country – and if your blue, red and purple communities in large cities and very small towns can come together around difficult policy positions like this one, then anything is possible. It gives me hope.”

In addition to working through a myriad of COVID-19 related challenges this year public power’s connectivity “helped us through many natural disasters. The public power mutual aid network has been an enduring testament to our connection – one that some surmised might suffer in the pandemic.”

Joy Ditto speaking at Nat Con
APPA President and CEO Joy Ditto speaks
at first day of APPA National Conference on June 21

In addition, public power’s connectivity “helps us to have a more united and comprehensive response to another evolving threat: cyber-attacks. From threats garnering national headlines such as the SolarWinds compromise and the Colonial Pipeline ransomware attacks – our communities are seeing how critical infrastructure is threatened by cyber criminals and nation-state adversaries thousands of miles away,” Ditto said.

“As far as we know, a cyber-attack has not yet resulted in a power outage in the U.S. to date, but we do know that public power utilities are not immune to such attacks, and we are dedicated to helping you mitigate your risk.”

“By curating the most critical information, finding ways to tailor industry information for public power, and connecting regularly as a community – our connectivity helps to protect us,” Ditto said.

 A full, fair seat at the transition table

“We know that members, reflective of the country as a whole, approach climate change topics from very different angles depending on their resource mixes,” she said.

A CEO-led task force has created multiple working groups to determine if there are areas of consensus on federal climate legislation, such as a clean energy standard.

“It’s clear from the conversations thus far that most agree that a net-zero carbon emissions goal by 2035 is unachievable by the majority of public power utilities and that a 2050 goal would still be difficult, but perhaps more achievable if there are breakthroughs in technology and the siting and permitting process is reformed. Infrastructure buildouts are often hampered by lengthy federal permitting processes. Given the scale at which transmission and new generation will need to be built, Congress and the Administration need to address this significant obstacle to getting to net-zero emissions.”

But these discussions “have shown that public power has significantly reduced greenhouse gas emissions and will continue to do so if given additional time, comparable tax incentives, and stranded cost recovery — and assuming major technological breakthroughs that will help with maintenance of reliability and affordability,” Ditto went on to say. 

“We each have a deep commitment to our communities – wanting to be the best providers we can be, to embody environmental stewardship, to practice safety and reliability, and to uphold the tenets of the public power model. Acting on what the community wants means being nimble. That can be hard.”

Mitigating climate change “is one of the biggest issues of our time, and we are the ones on the ground who have to tackle it head on,” she said.

“We have been approached and asked for our position by policymakers, members of the media, and more. And while we share our perspective, we know that our position and actions are both aspirational and grounded – we need to be,” Ditto said.

“We are the ones who must temper the ideals of making a transition with the practical realities of where the technology and industry capabilities are in terms of cost and reliability. And we need a full, fair seat at the transition table. That’s why one of our top advocacy priorities is comparable tax incentives. Because you can’t leave out 30% of the industry, which is us combined with rural cooperatives, and still expect to get to 100% of anything.“

APPA is encouraged by the direction of policy discussions in Washington, D.C., on this issue, which is “a testament to our ongoing lobbying efforts. We’re on the brink of gaining access to a comparable tax incentive for clean energy development in the form of a direct-pay refundable credit.”

There is bipartisan support for the Clean Energy for America Act, which includes a provision for the credits, and the act has the backing of key leadership in both the House and Senate. When passed, this type of credit will allow public power utilities to directly own applicable energy projects and pass the savings from the incentives back to customers.

Work underway to develop a NAESB base contract for voluntary renewable energy certificates

June 17, 2021

by Paul Ciampoli
APPA News Director
June 17, 2021

Wholesale and retail entities have been holding a series of virtual meetings through the North American Energy Standards Board (NAESB) to develop a NAESB base contract for voluntary renewable energy certificates (RECs) and the technical implementation that could lead to the digitization of the contract.

Details of the effort were recently outlined by Elizabeth Mallett, Deputy Director of NAESB, in an Energy Central post and in a Q&A with Public Power Current.

In the May 25 post, Mallett points out that corporations worldwide are increasing their commitments to employ renewable energy in their day-to-day operations by procuring RECs to meet their renewable claims. RECs are market-based instruments that represent the right to one megawatt-hour of renewable generation.  RECs are purchased for state renewable portfolio standards to maintain compliance requirements, but there is also a growing market for voluntary RECs that has bloomed over the past decade as corporations strive to demonstrate their claims of renewable electricity usage and meet corporate goals, she noted in her post.

“As this market has grown, the need for standardization has become more apparent, as opportunities to increase efficiency and eliminate redundant terms and processes present appear throughout the industry. For example, standardization decreases the need for administrative staff to learn regional or state-by-state terms and improves the speed of transactions when consumers deal with multiple states or regions,” Mallett said in the post.

May 28 was the deadline to submit early comments regarding the NAESB Draft Base Contract for RECs. After approval of a final draft by the NAESB subcommittee later this year, a subsequent 30-day comment period will be announced. 

Mallett told Public Power Current that industry members that suggested the standardization of voluntary RECs provided several reasons, including:

NAESB REC Contract spurred by recommendation from TVA

The NAESB REC contract was spurred by a recommendation from Tennessee Valley Authority (TVA) that NAESB consider a REC contract for distributed ledger technology, or blockchain technology. 

Mallett notes in her post that the proposed development effort is divided into two parts. “First, NAESB considered the development of the contract general terms and conditions.  Next, the technical implementation for the contract is under consideration. The participants will identify the data elements and structures needed to execute the contract electronically, including the information needed to develop the terms and conditions for one or more ‘smart contracts’ to be utilized on distributed ledger technology.”

In December 2019, Joint Subcommittees held a kick-off meeting during which participants aimed to first gain consensus on definitions and use cases. Subsequent meetings continued to analyze terms and issues identified through subcommittee conversation, such as tracking through retirement, fundamental requirements of attestation declarations, billing details, etc., Mallett said in her post.  “To date, NAESB has hosted nineteen meetings to discuss the NAESB REC Contract and technical implementation and about thirty-seven entities have participated.”

In a June 1 meeting, the participants dived further into the technical implementation, such as common datasets and data dictionaries. “As the technical implementation development proceeds, aspects of the contract may need to be revisited, especially in light of the informal comments received on the contract before the June meeting,” Mallet noted.

NAESB is divided into three quadrants that represent the wholesale and retail gas and electric industries: the Wholesale Electric Quadrant (WEQ), the Wholesale Gas Quadrant (WGQ), and the Retail Gas and Electric Markets Quadrant (RMQ). 

The “Joint Subcommittees” refers to the WEQ Business Practices Subcommittee and the RMQ Business Practices Subcommittee — two separate NAESB subcommittees which have been holding joint meetings since December 2019 to draft the NAESB Base Contract for RECs.

Mallett told Public Power Current that during the June 1, 2021 meeting, participants discussed the informal comments received on the draft contract. Informal comments were submitted from Bonneville Power Administration (BPA), J. Weinstein Law and Southern Company. Additionally, work papers from TVA were posted for the meeting. The entirety of the June 1 meeting comprised a review of the informal comments from BPA, she said. These comments suggested modification to the terms and conditions, section number updates, and basic formatting changes. 

The Joint Subcommittees held another meeting on June 8, 2021. During this meeting, additional comments were considered and participants continued to discuss the BPA and J. Weinstein informal comments.

“Looking ahead, after the review of informal comments on the draft contract, the subcommittees will focus on the development of technical implementation documents, such as addressing data dictionaries, and data sets for invoicing and other aspects of the transactions to support the contract,” Mallett said. She noted that the technical implementation will be technology neutral, allowing for the use of the contract in its paper form, or electronically — for example, on a distributed ledger, also known as blockchain.

Per the NAESB process, if the subcommittees vote to adopt the NAESB REC Base Contract, then a thirty-day formal comment period will be held to solicit further comments from any interested parties.  Next, the RMQ and WEQ Executive Committees will determine whether to adopt, remand, or reject the effort, after reviewing the draft NAESB REC base contract along with any comments received during the thirty-day formal comment period. If approved by the Executive Committees of the RMQ and WEQ, the draft NAESB REC base contract will be posted for ratification by the NAESB WEQ and RMQ membership. Once ratified, it will be made available to the industry.

NAESB is a nonprofit 501(c)(6) standards development organization. NAESB has about 300 member entities whose volunteers develop gas and electric commercial business practice standards to support industry priorities. The NAESB process is accredited by the American National Standards Institute (ANSI) and, therefore, remains an independent body that is open to and inclusive of all interested industry parties.

NAESB follows a balanced voting procedure to reach consensus-based decisions and to maintain a balance of interests within the organization and NAESB has a strict no advocacy policy, Mallett noted.

If ratified by the NAESB membership, NAESB will publish the NAESB REC base contract in the next version of its WEQ and RMQ business practice standards and, as with all NAESB work products, the NAESB REC base contract will be copyrighted, she said.

Maine’s House of Representatives passes bill that would create state consumer-owned utility

June 16, 2021

by Paul Ciampoli
APPA News Director
June 16, 2021

Maine’s House of Representatives on June 15 voted 76-64 in favor of a bill that would create a consumer-owned utility in the state called Pine Tree Power. The bill now moves on to a vote in the Maine Senate.

The Maine Legislature’s Energy, Utilities, and Technology Committee on June 1 voted to advance the legislation, LD 1708. 

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.

LD 1708 passed the committee with minor revisions suggested by state utility regulators and should go to the Senate for initial floor votes in the next week, according to a group called Our Power, which supports the creation of a consumer-owned utility in the state.

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.

Poll finds strong support for the creation of a consumer-owned utility in Maine

Meanwhile, newly conducted public opinion polling shows that 75% of registered voters from across the state of Maine say they support the idea of replacing Central Maine Power and Versant with a local non-profit consumer-owned utility, according to research conducted by SurveyUSA.

According to SurveyUSA, 38% strongly support the idea; 37% say they somewhat support. Just 10% are opposed to the idea, while 7% somewhat oppose and 3% strongly oppose.

The research was conducted by SurveyUSA for Our Power.

California, Texas grid operators respond to soaring temperatures, resulting stress on supplies

June 16, 2021

by Paul Ciampoli
APPA News Director
June 16, 2021

Power grid operators in California and Texas this week responded to soaring temperatures and the resulting spike in power demand through a number of steps. The California Independent System Operator (CAISO) called for the deferral of scheduled maintenance on generators or transmission lines, if possible, while the Electric Reliability Council of Texas (ERCOT) issued a call for energy conservation at the start of the week.

With extreme heat expected to break temperature records and linger over much of California and the West for the remainder of the week, the California Independent System Operator (ISO) on June 15 said that it is asking consumers to be prepared to conserve energy to help avoid the possibility of rotating power outages.

Those steps would include setting thermostats to 78 degrees or higher, if health permits, avoiding use of major appliances and turning off unnecessary lights.

CAISO said that if it issues a Flex Alert calling for voluntary conservation between the hours of 4 p.m. to 9 p.m. on Wednesday and possibly Thursday, consumers would be encouraged to take other steps to manage their electricity usage to maintain comfort prior to an alert taking effect.

The grid operator said that an abnormally strong ridge of heat is forecast to bring temperatures as high as 115 degrees to the California interior that could last until the weekend. “Because of the extreme heat and nighttime lows expected to cool off only between 78 and 83 degrees, the state’s electric grid will be straining to meet evening demand when air conditioners are in heavy use and solar energy generation is waning.”

The ISO’s own projections currently show electricity demand exceeding power supplies that are guaranteed under the state’s Resource Adequacy (RA) requirements for several days this week. The biggest deficit is projected for Thursday between 8 p.m. and 9 p.m. when demand is forecasted to be 43,261 megawatts (MW), including required contingency reserves, or 3,374 MW more than expected to be available under the RA program.

The ISO noted it has steps it can take to close that gap, including demand response programs that utilities use to provide incentives for customers to conserve, but one regularly relied on asset — imported electricity from neighboring states — could be affected.

“That’s because the National Weather Service is now forecasting that extreme heat is expected to engulf much of the Western United States. Triple-digit heat is forecast from the deserts east of Los Angeles all the way north to the Canadian border, resulting in tight energy supplies over a large geographic area,” CAISO said.

To help prepare for the heat and heightened stress on the grid, the ISO declared a grid Restricted Maintenance Operation for noon to 10 p.m. for June 15 through Friday. The directive cautions energy generators that all available resources are needed, and to defer scheduled maintenance on generators or transmission lines, if possible.

If a Flex Alert is called this week, consumer conservation can make a big difference, as it has during past heat waves when such concerted action helped avoid grid emergencies, including rotating outages, the grid operator said.

Texas

Meanwhile, the Electric Reliability Council of Texas (ERCOT) on June 15 said that when it issued a call for conservation on Monday, Texans responded strongly by reducing electric demand during the late afternoon. ERCOT continues to encourage Texans to conserve power each afternoon during the peak hours of 3 to 7 p.m. through this Friday.

“The grid is operating exactly as it was designed and intended. The issuance of conservation notices is a common practice and prevents ERCOT from entering emergency conditions. Conservation efforts combined with the changes in procedures and processes implemented by ERCOT and the PUC following the winter storm prevented the possibility of rotating outages yesterday and ensured that no Texans lost power,” ERCOT said.

ERCOT said it has been leveraging every resource at its disposal, including activating all available generating units to help serve customer demand before calling for conservation. Approximately 1,200 MW of power was regained overnight Monday when some repairs were completed.

On June 14, ERCOT set a new June record for electricity demand. Based on preliminary data, the new record is 69,943 MW, which exceeds the 2018 June record by approximately 820 MW.

Power plant owners continue repairs of unexpected equipment failures, “and ERCOT is using all the tools in its toolbox to maintain reliability in the face of potential record-setting electricity demand,” it said.

“All of our local plants are up and running, and virtually all of them are at full capacity,” said Rudy Garza, Chief Customer & Stakeholder Engagement Officer for San Antonio, Texas public power utility CPS Energy, on June 14. “We’re asking our other customers to help even further by conserving energy to support the grid.”

CPS Energy also provided a set of actions that residential and business customers can take to conserve energy.

Austin, Texas public power utility Austin Energy on June 14 noted that its staff works year-round to maintain and monitor a diverse mix of power generation plants to ensure peak performance during extreme conditions. The utility also employs various demand response programs that help lower electric use during strained grid conditions.

In 2020, Austin Energy rolled out Weekly Electricity Update and High Bill Alert emails providing customers with electricity usage details and energy-efficiency tips. These emails help customers learn more about their electricity usage patterns and trends. They also contain insights and tips to help customers lower their electricity usage and save on their bills.

The Weekly Electricity Updates email compares energy usage rates from week to week, while the High Bill Alerts email lets customers know when their usage is higher than compared to the same monthly cycle from the previous year.

These notifications are a free and optional service automatically provided to eligible City of Austin customers with an advanced meter at their location and an email address on file. Customers can unsubscribe at any time.

Austin Energy this week also provided tips for Austin Energy customers to help conserve energy.

North Carolina executive order sets target for 8 GW of offshore wind by 2040

June 15, 2021

by Peter Maloney
APPA News
June 15, 2021

Roy Cooper, North Carolina’s Democratic governor, recently issued an executive order highlighting the state’s commitment to offshore wind power and setting a target to procure 8 gigawatts (GW) of offshore wind energy by 2040.

Executive Order No. 218 also establishes an interim offshore wind development target of deploying 2.8 GW of wind energy plants off the North Carolina coast by 2030 and directs the state’s Secretary of Commerce to establish the N.C. Taskforce for Offshore Wind Economic Resource Strategies (TOWERS) to advise on programs and policies to advance offshore wind projects.

The order also directs the state’s Department of Environmental Quality and Department of Military and Veterans Affairs to designate offshore wind coordinators and take steps to support offshore wind and calls for quarterly meetings of the North Carolina Offshore Wind Interagency Workgroup to ensure offshore wind activities are well coordinated among relevant agencies.

In addition to creating economic benefits in the state, the executive order aims to help achieve the North Carolina Clean Energy Plan goal of a 70 percent reduction in power sector greenhouse gas emissions by 2030 and carbon dioxide neutrality by 2050.

Wind power projects off the Atlantic Coast have the potential to create 85,000 jobs and attract $140 billion in capital investment over the next 15 years, according to the executive order.

The executive order follows a bipartisan memorandum of understanding (MOU) among the governors of North Carolina, Maryland and Virginia in October 2020 that created the Southeast and Mid-Atlantic Regional Transformative Partnership for Offshore Wind Energy Resources (SMART-POWER).

The SMART-POWER MOU provides a framework for the three states to promote, develop and expand offshore wind energy and the accompanying industry supply chain and workforce.

Several Mid-Atlantic states have already taken steps to encourage offshore wind development. Connecticut in late 2019, through a competitive solicitation, selected Vineyard Wind to develop 804 megawatts (MW) of offshore wind. Earlier in 2019, Massachusetts approved long-term contracts for 800 MW of offshore wind between Vineyard Wind and investor-owned electric utilities in the state.

In 2018, New Jersey Gov. Phil Murphy signed an executive order directing the state’s Board of Public Utilities to fully implement legislation to begin the process of moving the state toward a goal of having 3,500 MW of offshore wind in place by 2030.

More recently, the Biden administration and California Gov. Gavin Newsom identified regions off the California coast that could support White House’s goal of deploying 30 GW of offshore wind energy by 2030.

And in March, the New York State Public Service Commission, along with the Long Island Power Authority and other stakeholders adopted a plan to build a 7.6-mile transmission line to connect the proposed 132-MW wind farm in offshore New York waters.