Senate Approves Bill That Makes Energy Tax Credits Available To Public Power
August 7, 2022
by Paul Ciampoli
APPA News Director
August 7, 2022
The U.S. Senate on Aug. 7 approved legislation that would extend and expand various energy tax credits, including by making them available for projects owned and operated by tax-exempt entities, including public power. The House is scheduled to take up the bill on Aug. 12.
The bill passed the Senate Sunday afternoon with a 50-50 party-line vote, with the tie broken by Vice President Kamala Harris. The vote on final passage came after the Senate worked overnight Saturday, voting on 36 amendments and procedural motions. All but two failed, and neither of the two would affect public power.The change related to energy tax credits is strongly supported by the American Public Power Association (APPA).
A last-minute change to the bill would protect these tax credit payments to public power utilities from the current 5.7 percent “Joint Select Committee” sequestration that is scheduled to remain in effect through 2031.
On Aug. 12, the House will vote on H.R. 5376, a bill which originally passed the House as the Build Back Better Act (BBBA), but which was renamed during Senate consideration as the Inflation Reduction Act (IRA).
The bill also includes increased funding for energy-related programs and to speed up much-needed siting and permitting of energy infrastructure.
Study Examines Balancing New England Energy Supply Adequacy, Renewables
August 5, 2022
by Peter Maloney
APPA News
August 5, 2022
Maintaining energy adequacy will be a challenge as non-dispatchable, renewable resources proliferate, according to a new study by ISO New England.
The study, 2021 Economic Study: Future Grid Reliability Study Phase 1, requested by the New England Power Pool (NEPOOL) stakeholders, evaluated how the region’s grid would perform under the double burden of increased levels of variable, i.e., renewable, generation sources and higher demand.
Five of the six New England states have committed to reducing their carbon dioxide emissions by at least 80 percent in the coming years and electrification of heating and transportation is rapidly accelerating, the report noted.
To ensure energy adequacy, the New England region would likely require significant dispatchable resources such as natural gas or stored fuels for periods when variable resources are unavailable, the report found. In addition, battery storage. which is often held up as a remedy for shortfalls in renewable generation, may have difficulty sufficiently charging under predicted system demand curves, the report’s authors said.
The authors also pointed out that the retirement of the region’s two remaining nuclear power plants, which has been assumed in some planning scenarios, would further challenge reliability and state decarbonization goals.
“The region may struggle to maintain necessary operating reserves in scenarios of high electrification and more aggressive retirements of existing resources,” the report’s authors said. “The reserve margin may need to increase by an order of magnitude by 2040.”
The authors also argued that higher levels of renewable resources that would be needed to decarbonize the region’s grid would increase the need for demand flexibility. That would translate into an increased need for regulation services as the flexibility of both generation and demand resources may be needed to maintain the balance of the region’s grid.
The report used several scenarios to study assumptions about the future of New England’s grid. The baseline, moderate and import-supported decarbonization scenarios all contained moderate amounts of renewables and met reliability criteria. The baseline and moderate scenarios, however, did not meet state electric sector environmental goals. The import-supported scenario met state electric sector environmental goals but did not include expected high levels electrification of heating and transportation.
The deep decarbonization scenario lowered production costs and met state electric sector environmental goals while supporting high electrification of heating and transportation, but did not meet required reliability criteria, the report found.
A modified version of the deep decarbonization scenario, resource-adequate deep decarbonization, was adapted to meet reliability criteria through a balanced mix of increased wind, solar, and storage – 89,000 megawatts (MW) versus the current roughly 5,600 MW – but would require such a large amount of wind and solar that it may present “significant challenges” to the region’s transmission system and require an “outsized amount of land or offshore areas to be sited and developed for the necessary wind and solar farms,” the report found. However, the substitution of 3,000 MW of dispatchable units would reduce the necessary new units of wind, solar, and storage by 19 percent, or 17,000 MW, illustrating “the importance of dispatchable resources to the future grid,” the authors said.
The Future Grid Reliability Study is “a turning point” for our region, the report’s authors said in conclusion. “Many existing long-term assumptions were called into question as part of this analysis, and results show that the methods by which the ISO and region at large evaluate future grids require an overhaul.”
The ISO said it would issue three technical appendices to the report covering production cost, ancillary services, and resource adequacy later this year. The ISO also said a second phase of the Future Grid Reliability Study would analyze how “future grid scenarios might operate under today’s wholesale electricity markets to ensure an economically sound future grid.”
Fayetteville Public Works Commission Lowers Customer Fees, Adopts Optional Electric Rates
August 5, 2022
by Paul Ciampoli
APPA News Director
August 5, 2022
North Carolina’s Fayetteville Public Works Commission (PWC) took action in late July that maintains PWC’s current base electric rates, reduces customer fees, introduces optional electric rates that will offer customers’ choice and continue to support PWC conservation efforts as well as support economic development.
PWC’s new optional whole home/business rate will provide additional incentive for off-peak energy use by introducing a new super-off-peak rate, that is 50% less that PWC’s current off-peak electric rate.
Available in February 2023, customers will have the option to sign up for the new rates, pay a slightly higher basic facility charge, but a pay a significantly lower rate for energy use weekdays from 9pm-5 am.
The rate supports PWC’s continuing efforts to reduce energy demand costs and provides options for electric vehicle owners to charge during low demand hours that lessen EV impacts on the electric system.
PWC introduced Time of Use electric rates in 2019 to help decrease energy demand costs and apply the same pricing structure to energy that PWC pays Duke Energy, its wholesale power-supplier. During ‘peak’ weekday usage on the electric system, power demand costs are significantly higher than other times of the day. Shifting energy use outside of the peak hours, helps PWC lower over-all power costs and maintain reasonable rates.
Also effective in February 2023, PWC will offer a new Renewable Energy Buy Back rider for customers who install rooftop solar. The rate will be available for residential and small power customers generating 10 kW or less of energy. The rate will accompany bi-directional metering and replace PWC’s current buy-all, sell-all rates for roof top solar.
PWC also adopted a new economic development rate for customers who bring 1,000 kW loads to the PWC system or 750-kW through expansion. The discounted rate, effective in September, includes employee and/or capital investments along with other requirements and adds another economic development tool for the community to attract new business or encourage expansion.
Also effective in September, PWC is changing its demand and energy rate for Medium Power Service customers to continue PWC efforts to manage high energy costs because of peak hour usage. The rate lowers the demand threshold from 200 to 150 kW and has a 15% lower kwh charge. Customers currently in the rate classification will have the option to enroll to the new rate in September. The new rate will be applied all Medium Power Service Customers in September 2023.
In other changes, PWC lowered fees for connection, reconnection, and meter testing, passing along savings achieved by new technology and operations.
California Regulators Vote To Allow Submetering Of Electric Vehicles
August 5, 2022
by Paul Ciampoli
APPA News Director
August 5, 2022
The California Public Utilities Commission (CPUC) on Aug. 4 made California the first state in the nation to allow electric vehicle (EV) owners to measure an EV’s energy use independently from the owner’s main utility meter through submetering.
Separately metering EV charging independently from a customer’s main utility meter is crucial because special rate structures apply to EVs that allow customers to buy less costly power during off-peak times, the CPUC said.
Those rate structures are often inappropriate for the entire home or commercial facility where the EVs are located, it noted.
The decision applies to the following utilities: Pacific Gas and Electric, Southern California Edison, San Diego Gas & Electric, Liberty Utilities, Bear Valley Electric Service Inc. and PacifiCorp.
“The inability to submeter has been a major barrier to the expansion of EVs because taking advantage of EV-specific rates significantly lowers the total cost of ownership of an EV but few customers are willing to invest in a separate utility-grade meter,” the CPUC said. Submetering will also allow EV charging to participate in demand response programs by decreasing the EV charging load or even feeding power back into the grid when it is needed most.
The decision also adopts communication protocols for EV chargers, which are often called EV Service Equipment (EVSE). The communication protocols are consistent with recent CPUC-approved utility EV programs, as well as with the California Energy Commission’s (CEC) recommendations for EVSE.
The CEC has deemed these standards as vitally important to ensure interoperability with publicly funded EV charging infrastructure and to ensure the state achieves convenient, grid integrated charging.
The CPUC said that both aspects of the decision are crucial to enable widespread Vehicle-Grid Integration (VGI) and to capture the resulting grid benefits.
VGI refers to a suite of actions that shape vehicle charging behavior — such as changing the time or level of charging, or how power is sent back to the electric grid from vehicles — in ways that maximize both consumer and grid benefits.
“As the number of EVs in the state grows rapidly to meet our state’s climate goals, VGI will ensure that the electric grid is not stressed by the new load and will also allow customers to buy electricity at the cheapest times,” the CPUC said.
The proposal voted on is available at: docs.cpuc.ca.gov/PublishedDocs/Published/G000/M496/K405/496405751.PDF.
Department of Housing and Urban Development Issues Community Solar Guidance
August 5, 2022
by Paul Ciampoli
APPA News Director
August 5, 2022
The Department of Housing and Urban Development (HUD) recently issued new guidance that for the first time will help enable families in HUD-assisted rental housing to subscribe to local community solar where available.
In some programs, such as the Washington, DC Solar for All program, savings to households from subscribing to local community solar can reach up to 50% per year, the White House noted in a fact sheet.
The national guidance builds on recent state-specific guidance that HUD has provided to Illinois, Washington, DC and New York, that determined community-net-metering credits would be excluded from household income and utility allowance calculations and therefore not increase housing costs for residents in properties participating in HUD Multifamily, Public Housing and Housing Choice Voucher rental assistance programs, the fact sheet said.
HUD also announced that HUD regional offices will convene stakeholders in their regions over the next 90 days to highlight federal funding sources — including funding streams from the Bipartisan Infrastructure Law, and HUD programs such as the HOME Investment Partnerships program and the Community Development Block Grant — that can be used to support public facilities and increase affordable housing supply that improves energy efficiency.
Building on guidance from last year, HUD will also launch a new initiative to help small rural housing authorities make money-saving energy efficiency upgrades and retain the savings from those projects to reinvest in improvements to rural HUD supported rental housing.
Other Agencies Also Take Action Related To Solar Energy
In addition, the Department of Energy (DOE) and the Department of Health and Human Services (HHS) announced that Colorado, Illinois, New Jersey, New Mexico, New York, and Washington, D.C. have signed up to pilot the Community Solar Subscription Platform which is designed to connect community solar electric bill savings projects to households participating in the Low-Income Home Energy Assistance Program (LIHEAP).
DOE estimates that families in the pilot states and Washington, DC will see over $1 billion annually in combined electric bill savings.
DOE is announcing the Sunny Awards for Equitable Community Solar, a new awards program to recognize communities that are implementing best-in class community solar programs and projects that lower costs and increase access for families.
TVA Enters Agreement With GE Hitachi Related To Potential Deployment Of Small Modular Reactor
August 5, 2022
by Paul Ciampoli
APPA News Director
August 5, 2022
The Tennessee Valley Authority (TVA) has entered a two-party agreement with GE Hitachi to support TVA’s planning and preliminary licensing for a potential deployment of a BWRX-300 small modular reactor (SMR) at the Clinch River Nuclear site and provide additional information needed as TVA continues to analyze the viability of SMRs, subject to future TVA board approval.
This follows an April 2022 collaboration agreement with Ontario Power Generation (OPG) to support the development of small modular reactors as an effective long-term source of 24/7 carbon-free energy in both Canada and the U.S.
Such collaborations could help reduce the financial risk that comes from development of innovative technology, as well as future deployment costs, TVA said on Aug. 2 as part of its release of third quarter Fiscal Year 2022 financial results.
The TVA-OPG agreement allows TVA and OPG to coordinate their explorations into the design, licensing, construction and operation of small modular reactors.
OPG is moving forward with plans to deploy an SMR at its Darlington nuclear facility in Clarington, Ontario. The Darlington site is the only location in Canada licensed for new nuclear with a completed and accepted Environmental Assessment.
DOE Offers Funding For EV Charging, Other Transportation Activities
August 4, 2022
by Peter Maloney
APPA News
August 4, 2022
The Department of Energy (DOE) recently announced a $96 million funding opportunity to support decarbonizing the U.S. transportation sector.
The funding will focus on expanding access to electric vehicle charging stations, creating cleaner non-road vehicles through electrification and the use of alternative fuels, and developing electric drive components and materials to maximize electric vehicle efficiency and affordability.
Non-road vehicles, including agricultural and construction equipment, rail, marine and aviation, are a major source of pollution, emitting more carbon pollution than any other sector of the economy, the DOE said.
While decarbonizing on-road vehicles is critical to fighting climate change, it is equally important to research, develop, and deploy clean engines and fuel technologies for non-road vehicles, the DOE said in the funding announcement. The federal agency said the new funding opportunity aims to support research on non-road engine technologies that are less harmful to the environment and develop electric, natural gas, and other alternatives for fueling and powering non-road engines.
DOE’s funding for on-road electric vehicles is aimed at helping to support President Biden’s call for electric vehicles to make up half of all automotive sales by 2030 by ensuring that the nation’s charging infrastructure is prepared to meet increased demand.
The new $96 million opportunity complements the $5 billion made available under the new National Electric Vehicle Infrastructure Formula Program, established by the Bipartisan Infrastructure Law, to build out a national electric vehicle charging network.
The DOE also said it is committed to developing solutions in underserved areas and for drivers who do not have access to charging at home and would invest in projects that create regional refueling infrastructure plans for zero-emission medium- and heavy-duty vehicles powered by electricity and hydrogen fuel.
The DOE is also seeking to fund projects to develop novel multi-functional materials for electric vehicles and improve powertrain performance in electric vehicles for increased functionality and reliability.
New materials and advanced electric drive systems are key to developing next-generation electrified vehicle platforms, including full battery electric and fuel cell electric vehicles with smaller, more affordable electric systems for improved performance and durability, the DOE said.
Applicants for the new funding opportunity must submit a concept paper by Aug. 25 and register and submit application materials through the DOE online application portal by Nov. 10.
U.S. Power Grid Added 15 GW Of Utility-Scale Generating Capacity In First Half Of 2022
August 4, 2022
by Paul Ciampoli
APPA News Director
August 4, 2022
The Energy Information Administration (EIA) on August 3 reported that 15 gigawatts (GW) of new utility-scale electric generating capacity came online in the United States during the first half of 2022.
Based on the most recently reported plans, developers could add another 29 GW of capacity in the second half of the year, it said.
EIA’s Preliminary Monthly Electric Generator Inventory compiles information on all U.S. utility-scale power plants — plants with a nameplate capacity of at least 1 megawatt (MW) — that are currently operating, planning to come online, or retired. The inventory includes all utility-scale plants that have retired since 2002.
EIA updates this inventory once a month with preliminary data and then finalizes that data annually with a survey that provides additional information about the power plants.
With respect to operating capacity, EIA reported that wind generation accounts for the largest share, 34%, of the 15.1 GW of capacity that came online in the United States during the first half of 2022, followed by natural gas, solar, and battery storage.
More than 40% of the wind capacity added so far in 2022 is located in Texas, 2.2 GW of the 5.2 GW wind total.
In terms of planned capacity, developers and project planners reported plans to add 29.4 GW of new capacity in the United States in the second half of 2022. Nearly half of that planned capacity is from solar (13.6 GW), followed by wind (6.0 GW). As in previous years, many projects plan to come online in December because of tax incentives.
Respondents to EIA’s survey currently plan to add 3.7 GW less solar capacity in 2022 than what they had expected at the beginning of the year. Pandemic-related challenges in supply chains and a U.S. Department of Commerce tariff investigation are likely causes for this decrease, the agency said.
As for retired capacity, of the 15.1 GW of electric generating capacity that U.S. operators plan to retire during 2022, more than half (8.8 GW) was retired in the first half of the year. Coal-fired power plants will account for 76% of the retirements this year, followed by natural gas (12%) and nuclear (9%).
Federal Nuclear Regulators Authorize Fuel Loading And Operation At New Georgia Unit
August 4, 2022
by Paul Ciampoli
APPA News Director
August 4, 2022
The Nuclear Regulatory Commission (NRC) has authorized Southern Nuclear Operating Company to load nuclear fuel and begin operation at Vogtle Unit 3 in Georgia, the first reactor to reach this point in the agency’s combined license process.
The NRC’s decision moves Vogtle Unit 3, adjacent to the operating Units 1 and 2, near Waynesboro, Georgia, out of the construction reactor oversight program and into the operating reactor oversight process.
Plant Vogtle Units 3 and 4 are two 1,100-megawatt Westinghouse AP1000 nuclear reactors being constructed in Burke County, Ga.
“The team at the site continues working diligently to make final preparations for Unit 3 fuel load, initiate startup testing and bring the unit online,” Southern, an investor-owned utility, noted on Aug. 3.
“Over the next several weeks, well-trained and highly qualified nuclear technicians will continue work required to support loading fuel, which is already onsite, into the unit’s reactor. This will be followed by several months of startup testing and operations,” the utility said.
Startup testing is designed to demonstrate the integrated operation of the primary coolant system and steam supply system at design temperature and pressure with fuel inside the reactor. Operators will also bring the plant from cold shutdown to initial criticality, synchronize the unit to the grid and systematically raise power to 100%.
Florida public power utility JEA, the City of Jacksonville and the Municipal Electric Authority of Georgia (MEAG Power) in 2020 announced a settlement of all disputed issues relating to the new Units 3 and 4 of the Alvin W. Vogtle Electric Generating Plant and an amended and restated power purchase agreement.
The Vogtle Electric Generating Plant is jointly owned by Georgia Power (45.7%), Oglethorpe Power Corporation (30%), Municipal Electric Authority of Georgia (22.7%) and Dalton Utilities (1.6%).
Additional information about Plant Vogtle Units 3 and 4 is available here.
DOE Issues Notice Of Intent For Potential Hydrogen Research Funding
August 4, 2022
by Peter Maloney
APPA News
August 4, 2022
The Department of Energy (DOE) recently issued a notice of intent for a potential funding opportunity to accelerate the research, development, and demonstration (RD&D) of clean-hydrogen technologies and grid resilience.
The potential funding would advance the DOE’s goal of reducing the cost of clean hydrogen to $1 per 1 kilogram in 1 decade that is central to the agency’s Hydrogen Shot initiative. It would also support the DOE’s H2@Scale initiative to develop clean and affordable hydrogen across multiple sectors in the economy and improve energy resilience.
The DOE said the goals would be advanced through RD&D efforts in several areas, including advanced pathways for solar-based hydrogen fuel production; technologies for high-resolution hydrogen sensing; demonstrations of materials-based hydrogen storage and transport systems; and development of high-performance, durable, low-cost fuel cell components for medium- and heavy-duty vehicles.
The potential funding opportunity would also seek to establish a grid resilience university consortium with agreements between universities in the United States, Canada, and Mexico to foster information sharing on best practices and cross-border dependencies. The consortium would work collaboratively with tribes, states, regions, industry, utilities, and other stakeholders to support grid resilience planning and pilot projects that can serve as a model for others.
In the Notice of Intent, the DOE said it envisions awarding multiple financial assistance awards in the form of cooperative agreements, with the performance period running from two to four years. DOE is encouraging applicants that include stakeholders in academia, industry, and national laboratories across multiple technical disciplines.
Teams are also encouraged to include representation from diverse entities such as minority-serving institutions or through linkages with Opportunity Zones.
The DOE said the potential funding opportunity would advance the Biden administration’s goals of achieving carbon-free electricity by 2035 and net-zero carbon emissions across the entire economy by 2050.
In February, the DOE announced two requests for information to collect feedback from stakeholders to inform the implementation and design of the Bipartisan Infrastructure Law’s Regional Hydrogen Hub and the Electrolysis and Clean Hydrogen Manufacturing and Recycling Programs.
In June, the DOE closed on a $504.4 million loan guarantee to the Advanced Clean Energy Storage project in Utah.