LS Power to Acquire 2.1 GW Natural Gas Generation Portfolio from Brazos Electric
May 8, 2023
by Paul Ciampoli
APPA News Director
May 8, 2023
LS Power on May 8 announced it has reached an agreement with Brazos Electric Power Cooperative to acquire 2,145 megawatts of natural gas generation in the ERCOT North region of Texas through a special purpose affiliate.
The portfolio features dual-fuel capability, meaningful on-site fuel oil storage and firm gas transport and storage arrangements, LS Power said.
The three generation projects are Jack County (Two baseload combined cycle blocks totaling 1,297 MW located in Jack County, TX); Johnson County (a 280 MW combined cycle plant located in Johnson County, TX); and RW Miller (Four peaking units totaling 568 MW located in Palo Pinto County, TX)
Johnson County and RW Miller are dual-fuel resources with on-site fuel oil storage that provides important fuel security during periods of gas scarcity, while Jack County benefits from firm gas transport as well as firm storage arrangements.
The transaction is expected to close in early June upon receipt of customary regulatory approvals.
Voters in El Paso, Texas, Reject Climate Proposal That Included Plan to Explore Public Power Utility
May 7, 2023
by Paul Ciampoli
APPA News Director
May 7, 2023
Voters in El Paso, Texas, on May 6 rejected a proposal that included exploring the creation of a public power utility.
Residents in the city rejected Proposition K, the “Climate Change and Climate Justice” Charter Amendment, which, among other things, called for the city to “employ all available efforts to convert El Paso Electric to municipal ownership.” El Paso Electric in March said it opposed the municipalization proposal included in Proposition K.
The ballot proposal also called for the City of El Paso to employ all available methods to require that energy used within the city is generated by clean renewable energy, with the goals of requiring 80% clean renewable energy by 2030 and 100% clean renewable energy by 2045.
Fitch Affirms Bond Ratings for CMEEC, Connecticut Transmission Municipal Electric Energy Cooperative
May 6, 2023
by Paul Ciampoli
APPA News Director
May 6, 2023
Fitch Ratings recently affirmed bond ratings for Connecticut Municipal Electric Energy Cooperative and Connecticut Transmission Municipal Electric Energy Cooperative at ‘AA-‘. The Rating Outlook is Stable.
Specifically, the rating agency affirmed the following ratings for Connecticut Municipal Electric Energy Cooperative: $11.4 million 2021 series A, transmission services revenue bonds; $19.3 million 2022 series A, power supply system revenue bonds; and Issuer Default Rating. Fitch also affirmed the AA- rating for Connecticut Transmission Municipal Electric Energy Cooperative’s $16.3 million 2021 series A, transmission system revenue bonds.
The Connecticut Transmission Municipal Electric Energy Cooperative was created by CMEEC in 2009. As a separate joint action agency, it acquired local transmission assets in order to provide transmission services required by CMEEC for its members and customers. It is governed by the same body as CMEEC. The management and staff of CMEEC operate Connecticut Transmission Municipal Electric Energy Cooperative and oversee its operations.
The ‘AA-‘ long-term bond ratings and IDR for CMEEC and Connecticut Transmission Municipal Electric Energy Cooperative “reflect very strong revenue defensibility, which is based on the long-term, all-requirements contracts and strong member credit quality that supports CMEEC’s consolidated revenue base, as well as CMEEC’s strong consolidated operating risk profile, and historically very low financial leverage,” Fitch said.
While operating income declined in fiscal 2022, resulting in an increase in leverage ratio for the year, Fitch noted that the weaker results stemmed from several non-recurring items including a restatement of the debt amortization associated with the refunded 2013 power supply bonds, a transmission revenue-true up credit for the year, and legal fees.
“Going forward, Fitch expects operating income and overall financial performance to return to pre-2022 levels, which should stabilize the leverage ratio at roughly 6.0x, a level supportive of the current rating.”
Operating costs are low, “although energy supply is concentrated in near-to-medium term market power purchases, subjecting CMEEC to variability in market pricing. In 2022, higher fuel costs and market energy prices led to a higher cost burden, but CMEEC’s comprehensive hedging policy helps mitigate this risk, and costs have decreased in 2023,” Fitch said.
Capital plans are limited to minor maintenance with no new debt requirements projected through 2027.
Gridscape to Develop Microgrids for California CCA East Bay Community Energy
May 5, 2023
by Paul Ciampoli
APPA News Director
May 5, 2023
Gridscape has been selected by California community choice aggregator East Bay Community Energy to develop microgrids for approximately 30 critical facilities.
The project will see Gridscape install 3.1 megawatts of solar PV systems and 6.2 megawatt hours of battery storage systems at 30 sites.
The initiative is part of EBCE’s Resilient Municipal Critical Facilities Program, which aims to bundle small community projects into a larger portfolio to achieve economies of scale and viability.
Gridscape will oversee all aspects of this project. Alok Singhania, partner, Gridscape, says that the program’s unique business model bundles sites from multiple cities into one portfolio to achieve economies of scale in project financing, legal, procurement, and construction.
Vipul Gore, CEO of Gridscape, says the project is likely to take around 18 months to complete, with the main barriers being permit approval delays, utility interconnection delays, and supply chain delays, although these are improving and may not pose a delay to this project.
The project will mark Gridscape’s largest deployment of microgrids under a single third-party financed PPA agreement, demonstrating how bundling small community projects can achieve economies of scale, making local power plant projects viable, the company said.
The program received a $2 million grant from Congress.
EBCE operates a community choice energy program in the California Bay Area for Alameda County and fourteen incorporated cities, serving more than 1.7 million residential and commercial customers.
EBCE initiated service in June 2018 and expanded to Tracy in neighboring San Joaquin County in 2021 and will expand service to Stockton in 2024.
Texas Grid Expected to Experience Greater Reliance on Renewable Energy This Summer
May 5, 2023
by Paul Ciampoli
APPA News Director
May 5, 2023
The Texas power grid is expected to see a greater reliance on renewable energy this summer, the chairman of the Texas Public Utility Commission and the CEO of the Electric Reliability Council of Texas said on May 3.
ERCOT on May 3 released its Seasonal Assessment of Resource Adequacy for the ERCOT Region for this summer and Texas PUC Chairman Peter Lake and ERCOT CEO Pablo Vegas held a news conference that same day related to the summer outlook for the state’s grid.
Lake underscored the point that the SERA report is not a forecast. “This is a scenario analysis that evaluates a range of potential outcomes. It is not a prediction of what will actually happen,” he said.
“Operationally, the ERCOT grid is ready for this summer. The reliability reforms that were put in place have been tested and continue to work,” Lake said. Reforms passed in the last session of the Texas Legislature “have been utilized and put in place to ensure our grid operates more reliably now than it ever has in the past.”
At the same time, he said that the Texas grid “faces a new reality. Data shows for the first time that the peak demand for electricity this summer will exceed the amount we can generate from on demand dispatchable power, so we will be relying on renewables to keep the lights on. On the hottest days of summer, there is no longer enough on demand dispatchable power generation to meet demand in the ERCOT system,” Lake said.
He said that from 2008 to 2022, Texas on demand dispatchable power supply grew only 1.5%. “In that same timeframe, our population grew 24 percent. The increase in demand for electricity is outpacing the supply of on demand dispatchable power,” Lake said.
“In this new reality, our risk goes up as the sun goes down because it’s still hot at 9 p.m.,” he said. “The sun sets faster than the atmosphere cools and our solar generation is all gone, so at that point in the day, we will be relying on wind generation on our hottest days. If the wind does not pick up, we will have to rely on our on demand dispatchable generators and the data is showing us that on our hottest days,” under a certain set of circumstances, “we may not have enough on demand dispatchable generation to cover the gap between when the sun sets – we lose the solar – and when our wind generation picks up.”
For his part, Vegas noted that “we saw several peak demand records set last year. Our all-time peak was set last summer on July 20 at over 80,000 megawatts of demand. And as we continue to experience substantial growth in population with more businesses moving to Texas, and a rapidly growing economy, the demand for energy is growing at a rapidly increasing pace.”
Compared to last year, “our models estimate that this summer’s peak could be about 6,000 megawatts greater than last summer’s. However, we’re only expecting a nominal increase of about 850 megawatts of thermal capacity since last summer.”
He said that the majority of new generation capacity that has been added since last summer in ERCOT continues to come from intermittent resources.
“On the renewables front, we’re expecting about a thousand more megawatts of wind capacity and about 3,400 megawatts of solar capacity compared to last summer’s SERA,” Vegas said.
“As a result, we are expecting to have to rely more on renewables during peak conditions than we ever have before,” Vegas said. “And as a result of this dynamic, this summer could have tighter hours than last summer with a higher risk of emergency operations.”
Details from SERA report
Assuming that the ERCOT region experiences typical summer grid conditions, ERCOT anticipates that there will be sufficient installed generating capacity available to serve the system-wide forecasted peak load for the upcoming summer season, the grid operator said on May 3.
The base summer peak load is 82,739 MW. This load amount is based on average weather conditions at the time of the summer peaks for years 2007 through 2021 and does not incorporate ERCOT’s summer 2023 weather outlook.
The peak load also incorporates load adjustments to account for incremental solar rooftop system additions as well as the interconnection of large loads (such as crypto-mining facilities) to Transmission Service Provider networks and individual generating units.
Over 97,000 MW of summer-rated resource capacity is expected to be available for the summer peak load. This includes 688 MW of planned thermal resources and 372 MW of planned solar resources forecasted to be available by July 2023. The total resource amount also includes 3,544 MW of installed battery storage capacity, with 447 MW of the installed total assumed to be available for dispatch prior to the highest summer net load hours.
This capacity estimate serves as a proxy for the amount expected during a tight reserve hour for the upcoming summer and is an interim availability assumption to be used until a formal capacity contribution method is adopted for future SARA reports.
ERCOT noted that a 568 MW coal unit changed its operations from year-round to summer only. The total amount of capacity associated with units operating only during the summer now stands at 704 MW, which is the highest amount since summer 2016.
ERCOT and thermal generation owners are closely monitoring the potential impacts of the U.S. Environmental Protection Agency’s March 15th approval of its “Good Neighbor Plan” for reducing cross-state emissions of ozone-forming nitrogen oxides.
Several generation owners in the ERCOT region indicated the potential that certain generators may face operational constraints in complying with the program’s provisions as soon as July 2023.
Texas, Louisiana and other parties filed a motion with the Fifth Circuit court to stay the EPA’s regulatory action due to potential reliability impacts. On May 1, 2023, the court granted the motion to stay the EPA action.
The summer SARA includes a typical thermal generating unit outage assumption of 5,034 MW. This outage assumption is based on historical outage data for the last three summer seasons (2020, 2021, 2022).
The summer SARA includes two Risk Scenario tabs: Base & Moderate Risk Scenarios, and Extreme Risk Scenarios. The most severe Risk Scenario assumes a high peak load, extreme unplanned thermal plant outages based on historic observations, and extreme low wind power production.
Northeast Power Coordinating Council Sees Adequate Summer Power Supply
May 5, 2023
by Paul Ciampoli
APPA News Director
May 5, 2023
The Northeast Power Coordinating Council’s annual reliability assessment forecasts the NPCC region will have an adequate supply of electricity this summer, NPCC said on May 3.
The overall NPCC coincident electricity summer peak demand is forecasted to be around 105,200 megawatts, which is slightly higher than last summer. A total capacity of about 163,300 MW is projected to be in place to meet electricity demand in the region.
Forecasts also indicate sufficient transmission capability and adequate capacity margins to meet peak demand and required operating reserves. NPCC’s spare operable capacity (over and above reserve requirements) this summer is estimated to range from approximately 7,200 MW to over 17,000 MW.
“Over 6,000 MW of estimated peak load reduction is reflected in the NPCC demand forecast due to expected behind-the-meter generation, such as rooftop solar, energy efficiency and other initiatives,” said Charles Dickerson, President and CEO of the NPCC. “In addition, planned area transmission improvements will provide for increased power system flexibility and reliability, as they are completed.”
New England, the state of New York and the Canadian Provinces of Ontario, Québec and the Maritimes are forecasted to have adequate supplies of electricity this summer.
Due to its winter peaking nature, Québec is expected to meet forecast electricity demand by a wide margin enabling transfers of surplus electricity supplies to other areas of the region, if needed.
The assessment considered a wide range of conditions including forecast demand uncertainty; unexpected generator plant outages; transmission constraints both between neighboring regions and within NPCC; the implementation of operating procedures; estimated impact of demand response programs; and additional capacity unavailability coupled with reduced transfer capabilities.
“Approximately 1,400 MW of new renewables resources is expected to be in-service over the course of the summer period, including both land-based and offshore wind generation,” said Phil Fedora, NPCC’s Chief Engineer and Vice President Reliability Services. “Noteworthy is the expected commercial operation of the first major offshore windfarm, connecting to Long Island.”
Throughout the summer, NPCC will continue to monitor the operating conditions on the bulk power system.
As part of these efforts, NPCC conducts daily and week-ahead calls between NPCC system operators and neighboring regions to communicate current operating conditions, coordinate planned maintenance, and facilitate the procurement of assistance under emergency conditions.
In addition, NPCC supports industry-wide reliability and security coordination efforts to promote communications, awareness, and information sharing.
Columbus, Ohio, Officials Break Ground on Solar Energy Project
May 5, 2023
by Paul Ciampoli
APPA News Director
May 5, 2023
Officials with the City of Columbus, Ohio, broke ground on May 4 on the Parsons Avenue solar project, one of two new solar projects that will provide 45 megawatts of additional renewable energy to Division of Power customers.
Both projects are being developed and constructed by NextEra Energy.
The Parsons Avenue solar project will generate 27 MW, while the Jackson Pike solar project, which is also beginning construction, will provide an additional 18 MW.
The Jackson Pike project is being developed on a former city landfill site.
“The Department of Public Utilities and our Division of Power is embracing and forging a clean energy future,” said Director of Public Utilities Kristen Atha in a statement. “We are rising to meet the goals within the Columbus Climate Action Plan and understand the critical role our department plays in creating an equitable future for Columbus.”
The Columbus Climate Action Plan commits to achieving carbon neutrality by 2050 and includes a strategy to transition to clean energy sources with specific targets to achieve 200 MW of municipal onsite solar by 2030 and 100% municipal clean energy procurement by 2030.
The city’s Division of Power serves nearly 17,000 accounts and currently provides over 50% clean energy through its power purchase contracts for residents and businesses.
The two projects will increase the division’s provision of clean energy to nearly 60%.
Energy from Solar Project is Now Available to Members of Utah Associated Municipal Power Systems
May 5, 2023
by Paul Ciampoli
APPA News Director
May 5, 2023
Energy from the Red Mesa Tapaha Solar Project in Utah is now available to members of Utah Associated Municipal Power Systems.
The power purchase agreement between UAMPS and Navajo Tribal Utility Authority Generation-Utah, LLC., a subsidiary of Navajo Tribal Utility Authority, makes solar energy available to 15 UAMPS members for 25 years.
The Red Mesa Tapaha Solar Resource is a 72 MW solar photovoltaic generation facility located on the Navajo Nation reservation in southeastern Utah. The project went into commercial operations on April 20, 2023.
UAMPS will purchase power from Red Mesa at $37 per megawatt hour, including renewable energy credits. This gives UAMPS the opportunity to diversify its power sources and provides members with a low-cost, long-term supply of renewable energy.
“The Red Mesa project is a valuable asset to UAMPS members looking to expand their access to clean energy at a competitive price,” said Mason Baker, UAMPS CEO. “This is a valuable alternative energy project that supports both UAMPS and the Navajo Nation community with the possibility of leading to additional projects and partnerships in the future.”
The Red Mesa solar farm is another milestone in the Navajo Nation’s transition to clean, renewable energy.
NTUA has developed two utility scale solar projects within the last three years on the Navajo Nation and is in the process of developing additional solar resources on and off the Navajo Nation reservation.
NTUA will use a significant amount of its proceeds from the proposed project to support electrification on the Navajo Nation, such as its Light Up Navajo mutual aid initiative.
“This project will serve both UAMPS and NTUA customers,” NTUA General Manager Walter Haase said. “UAMPS will be able to add another clean, carbon-free energy asset to their portfolio, while the project has created much needed jobs for the Navajo Nation, will keep NTUA electric rates stabilized, and brings opportunity for electric connection to families who have not had access. It is a win-win situation for everyone.”
CPS Energy Issues Solicitation for Up to 700 Megawatts of Solar Energy
May 4, 2023
by Paul Ciampoli
APPA News Director
May 4, 2023
Texas public power utility CPS Energy recently issued the first request for proposals as part of the utility’s previously approved generation plan to obtain up to 700 megawatts of additional solar energy for its generation portfolio.
The RFP is the first of a two-part effort to increase solar generation and diversify community solar options for CPS Energy customers. A separate RFP for community solar is under development and will be released in the coming months.
CPS Energy has 551 MW of existing solar capacity and in Fiscal Year 2023, CPS Energy secured an additional 580 megawatts (MW) of solar, along with 50 MW of storage and 500 MW of natural gas firming capacity. The utility has 1,131 MW of solar generation already under contract.
In January of this year, the utility’s Board of Trustees also voted on and approved a blend of gas, solar, wind and energy storage as part of the generation planning process, aimed at how to power San Antonio into the future.
When the RFP is complete, CPS Energy expects to have over 1,800 MW of solar generation operational or under contract to serve the community in the future.
The deadline to submit proposals in response to the RFP is June 1. After the closing date, CPS Energy will begin evaluations with a goal of making selections in the summer of 2023.
Respondents can view the RFP and must submit information through this link.
Florida’s Lakeland Electric Taps Burns & McDonnell to Design and Build New Substation
May 4, 2023
by Paul Ciampoli
APPA News Director
May 4, 2023
Florida public power utility Lakeland Electric has selected Burns & McDonnell to design and build a new greenfield substation in Lakeland.
The firm will implement a design-build approach to keep project deliverables on budget and on time, the utility said.
Construction design-build will allow Burns & McDonnell and Lakeland to collaborate on everything from planning and design through construction and commissioning. Construction is expected to begin this October and be completed in spring 2024.
The substation will feature a six-breaker ring bus with three transmission lines, two transformers and two 13-kV bays, as well as a new control house.
Along with other projects, the region’s expanded manufacturing presence includes Amazon Air announcing a recent expansion of runway/airplane parking to increase capacity within the company’s existing facility. Such new ventures will be powered by the new substation.