Reading Municipal Light Department Details New 5-MW Battery Storage Project
April 19, 2022
by Paul Ciampoli
APPA News Director
April 19, 2022
Reading Municipal Light Department’s (RMLD) Citizens’ Advisory Board and Board of Commissioners unanimously approved the RMLD to enter into a purchase power energy agreement with Kearsarge Energy for a battery storage system in Wilmington that will be capable of discharging five megawatts over two hours.
The system will be used to reduce costs related to peak demand and is projected to average $200,000 in annual savings for the RMLD during the 20-year project lifetime. The system is expected to be installed in 2023.
The battery project will be collocated with the existing 2.1-megawatt RMLD Community Solar array that is also owned and operated by Kearsage Energy.
This project adds to RMLD’s existing battery storage capability, including the Minuteman system, also a 5-megawatt, 2 hours system located in North Reading.
RMLD plans to add a total 30-megawatts/90 megawatt-hours of battery storage to RMLD’s service area over the next three years to further reduce costs and increase the resiliency of our distribution network.
The American Public Power Association’s Public Power Energy Tracker is a resource for association members that summarizes public power energy storage projects that are currently online. The tracker is available here.
Company Submits Lease Request For 2,000-MW Washington State Offshore Wind Farm
April 19, 2022
by Paul Ciampoli
APPA News Director
April 19, 2022
Trident Winds Inc. has submitted an unsolicited lease request to the U.S. Bureau of Ocean and Energy Management (BOEM) for a commercial lease to pursue the permitting, development, construction, operation, and maintenance of the first floating offshore wind farm off the coast of Washington State.
The Olympic Wind project is planned to be sited 43 miles off the coast of the Olympic Peninsula, taking advantage of an offshore wind resource that will deliver approximately 2,000 megawatts of energy.
With the submission of the request for the Olympic Wind Project, BOEM will conduct an initial review to confirm the applicant meets the agency’s legal, technical, and financial qualifications to hold a lease on the Outer Continental Shelf for commercial offshore wind energy development.
Following confirmation of qualifications, BOEM will issue a public notice of a request for interest to determine if competitive interest exists for the proposed site.
North American Solar And Wind PPA Offer Prices Increased 9.7% In Q1 2022
April 19, 2022
by Paul Ciampoli
APPA News Director
April 19, 2022
A rapidly growing imbalance between power purchase agreement (PPA) supply and demand, combined with skyrocketing development costs, has raised North American PPA prices 9.7% during the first quarter of 2022 to nearly $40 per megawatt hour, according to a new report from LevelTen Energy. Year-over-year, this represents a 28.5% increase.
Prices cited represent an average of the 25th percentile of PPA prices of each independent system operator on LevelTen’s Energy Marketplace.
According to LevelTen Energy, North American renewable energy developers are struggling to build solar and wind projects fast enough to keep up with demand because of the extremely difficult development landscape in the first quarter.
This is leading to a shortage of PPAs for corporations and other large energy buyers, which are critical to bringing new clean energy projects online and meeting corporate and federal net zero targets, LevelTen said.
Many developers rely on PPAs with corporations and other large-scale energy buyers in order to secure the financing required to construct new multi-million dollar solar and wind projects, LevelTen noted. “But the cost models used to price PPAs are becoming increasingly unwieldy as regulatory, interconnection, and supply chain challenges make it difficult to pin down costs and construction timelines.”
Supply chain issues have also taken a toll on developers in terms of rising costs and shipment delays. A LevelTen survey of 57 developers this quarter revealed that 40% said they were able to find new suppliers that can more reliably deliver components. However, 28% were unable to make changes to supply chain operations despite wanting to do so.
At the same time, corporations and other large energy buyers aren’t deterred by rising PPA prices, according to LevelTen. “Eager to meet their clean energy targets, energy buyers continue to pursue PPAs, which are delivering higher value as wholesale electricity prices also rise.”
Natural gas prices, which have been driven up in part by the conflict in Ukraine, have also contributed to rising PPA prices. When gas prices increase, the value of locking in renewable energy at a specific price increases, driving more demand to the market, it said.
APPA Supports EPA Finding Tied To Mercury and Air Toxic Standards
April 18, 2022
by Paul Ciampoli
APPA News Director
April 18, 2022
Citing the need for regulatory certainty, the American Public Power Association (APPA) is voicing support for the U.S. Environmental Protection Agency’s (EPA) finding in a proposed rule related to the agency’s Mercury and Air Toxic Standards (MATS) that it is “appropriate and necessary” under a section of the Clean Air Act to regulate hazardous air pollutant emissions from electric generating units.
APPA, which outlined its position in April 11 comments submitted to EPA, noted that its members continue to utilize coal-fired power subject to MATS.
“The Association and our members have and continue to be dedicated to clean air in our communities and protection of the environment. Our members have made significant investments to reduce air toxics and become compliant with MATS,” APPA said.
“Many members continue to pay for those investments through loan obligations. For these reasons, APPA members have a significant stake in EPA’s Proposed Rule and the forthcoming residual risk and technology review (RTR) process,” it said.
Air emissions data from the utility sector show vast reductions in emissions and hazardous air pollutant emissions, APPA noted. “MATS compliance is a significant contributor to this result. These reductions provide important context for EPA’s reconsideration in the proposed rule and for the forthcoming RTR.”
Finalized in 2012, the MATS rule, paired with other rulemakings at the time, caused significant reductions in mercury and other hazardous air pollutants in the electric utility sector, the trade group pointed out. EPA estimates coal- and oil-fired electric generating units have reduced total hazardous air pollutant emissions by 96 percent since 2010.
These achievements have not been without expense to generators and end users, APPA said. Owners and operators of coal- and oil-fired electric generating units have spent more than $18 billion to comply with MATS, while concurrently retiring and investing in replacement generation, such as natural gas, renewables, hydro, and nuclear. Utilities opted to either retire affected units, based on economics often dictated by unit capacity, or install the control technologies required by the rule.
“APPA emphasizes that retirements to comply with MATS are part of the unprecedented investment to air quality made by numerous cities and municipalities. A decision to retire a coal facility is not reversable given permit restrictions, physical decommissioning, and the economics of the power market. Contemporaneous with retirements, public power made substantial new investments to replace the coal-fired baseload generation with lower or non-emitting generation resources,” the trade group said in the comments.
Regulatory Certainty Is Essential
“Regulatory certainty is essential to municipalities and cities,” APPA went on to say. “At this juncture, the electric utility industry has fully implemented MATS. States have relied on MATS-related ancillary benefits in their state plans for other Clean Air Act programs.”
Sources have also relied on these same controls to comply with other Clean Air Act obligations, such as requirements for non-hazardous air pollutant MATS surrogate pollutants.
Now that these capital expenditures are complete, sources are realizing the value of their investments and anticipate doing so in the future, APPA said. Electric generating units “have relied on MATS rulemakings when making these substantial financial commitments. Single unit and single plant owners cannot pivot quickly to regulatory change. Generation shifting is not an option.”
APPA noted that cities and municipalities are committed to the transition to cleaner energy. “Renewable energy projects require financial investment, asset procurement, and permitting. Commissioning clean energy requires time and money. If public power utilities must contend with unanticipated new environmental projects for MATS, resources may need to be diverted away from renewable projects to address new MATS-related environmental projects.”
APPA continues “to emphasize that public power has fully implemented MATS and has relied on previous investments to reduce” hazardous air pollutants in planning for future energy transitions. “Regulatory certainty is critical to ensuring future plans can be sustained to transition to a cleaner energy future. For these reasons, we ask EPA to consider the challenges that a change in MATS would have on this cost-sensitive subset” of electric generating units.
EPA’s proposed rule recommends revoking a prior finding that it is not “appropriate and necessary” to regulate electric generating units under Clean Air Act Section 112. The proposed rule instead finds that it is “appropriate and necessary” under Section 112(n)(1)(A) of the Clean Air Act to regulate hazardous air pollutant emissions from electric generating units. The proposed rule uses a new methodology to support its proposed “appropriate and necessary finding” the new approach considers the advantages of regulation (public health, environmental effects) and disadvantages of the regulation (costs, impacts to the EGU sector, and society). EPA has also offered an alternative methodology which compares the monetized benefits and consequences of the rule.
APPA said that the public power community has expended substantial resources to comply with MATS. “Notably, our support does not extend to all aspects of EPA’s ‘appropriate and necessary’ methodology and analysis in the proposed rule. We note that the Section 112(n)(1)(A) analysis is a one-time event and has no application in other Clean Air Act contexts. The proposed rule should have no precedential influence in other Clean Air Act regulatory frameworks.”
The BCA monetizes the benefits and consequences of the rule. The proposed rule, using the BCA approach, found that the benefits of MATS regulation far exceed costs, even without accounting for nonmonetized benefits of reduction.
The BCA approach is “a reliable, analytic approach to tally benefits and costs of regulating EGUs under Section 112,” APPA said. APPA said it supports EPA’s decision in the proposed rule, reiterating the need for regulatory certainty.
APPA, Other Groups Send Letter To EPA
Meanwhile, in an April 11 letter to EPA, APPA and other trade groups and unions said that restoring the appropriate and necessary determination responds to the Supreme Court’s decision in Michigan v. EPA that EPA must consider costs in evaluating whether it is “appropriate and necessary” to regulate “and enables electric companies to remain focused on getting the energy we provide as clean as we can as fast as we can, while maintaining the reliability and affordability that our customers value.”
The groups also said that should EPA move forward with any reconsideration of the RTR, it should ensure that any new standards are consistent with the ongoing transition of the power sector and allow for companies to make holistic decisions as they deploy additional clean energy resources.
Along with APPA, the following groups signed on to the letter:
- The Edison Electric Institute
- The National Rural Electric Cooperative Association
- The Class of ’85 Regulatory Response Group
- The U.S. Chamber of Commerce
- The Large Public Power Council
- The International Brotherhood of Electrical Workers
- The International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers
EPA Releases 29th Annual U.S. Greenhouse Gas Inventory
April 18, 2022
by Paul Ciampoli
APPA News Director
April 18, 2022
The U.S. Environmental Protection Agency (EPA) recently released its 29th annual inventory of U.S. greenhouse gas emissions and sinks, which offers a national level overview of annual greenhouse gas emissions from 1990 to 2020.
EPA reported that net U.S. greenhouse gas emissions were 5,222.4 million metric tons of carbon dioxide equivalent in 2020, a nearly 11% decrease in emissions from 2019.
The sharp decline in emissions from 2019 to 2020 is largely due to the impacts of the coronavirus pandemic on travel and economic activity. “However, the decline also reflects the combined impacts of several factors, including population trends, energy market trends, technological changes including energy efficiency improvements, and the carbon intensity of energy fuel choices,” EPA said.
For the latest release, EPA said that it has made several important improvements. For example, EPA has added estimates for two important sources of methane: emissions from post-meter uses of natural gas, which includes leak emissions from residential and commercial appliances, industrial facilities and power plants, and natural gas fueled vehicles; and emissions from flooded lands such as hydroelectric and agricultural reservoirs.
Additionally, EPA worked with researchers to include estimates of methane emissions from large anomalous leak events, such as well blow-outs.
The GHG inventory covers seven key greenhouse gases: carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons, sulfur hexafluoride, and nitrogen trifluoride.
In addition to tracking U.S. greenhouse gas emissions, the inventory also calculates carbon dioxide that is removed from the atmosphere through the uptake of carbon in forests and other vegetation.
The report has been compiled annually since 1993 and submitted to the United Nations Framework Convention on Climate Change (UNFCCC).
The report is prepared by EPA in collaboration with numerous experts from other federal agencies, state government authorities, research and academic institutions, and industry associations.
Click here for additional details about the inventory.
Agencies Warn Of Cyber Threats Against ICS/SCADA Devices
April 18, 2022
by Paul Ciampoli
APPA News Director
April 18, 2022
The Department of Energy, Cybersecurity and Infrastructure Security Agency, National Security Agency and Federal Bureau of Investigation are warning that certain advanced persistent threat actors have shown the capability to gain full system access to multiple industrial control system/supervisory control and data acquisition devices.
Those devices include Schneider Electric programmable logic controllers (PLCs), OMRON Sysmac NEX PLCs, and Open Platform Communications Unified Architecture (OPC UA) servers, the agencies said in an alert.
The actors have developed custom-made tools for targeting industrial control system/supervisory control and data acquisition devices. The tools enable them to scan for, compromise, and control affected devices once they have established initial access to the operational technology (OT) network.
Additionally, the actors can compromise Windows-based engineering workstations, which may be present in information technology (IT) or OT environments, using an exploit that compromises an ASRock motherboard driver with known vulnerabilities, the agencies said.
By compromising and maintaining full system access to industrial control system/supervisory control and data acquisition devices, these actors could elevate privileges, move laterally within an OT environment, and disrupt critical devices or functions.
The agencies urged critical infrastructure organizations, especially energy sector organizations, to implement the detection and mitigation recommendations provided in the alert to detect potential malicious advanced persistent threat activity and harden their industrial control system/supervisory control and data acquisition devices.
The alert is available here.
California’s Peninsula Clean Energy To Buy Energy From Geothermal Facility
April 15, 2022
by Paul Ciampoli
APPA News Director
April 15, 2022
Ormat Technologies has signed a 15-year power purchase agreement (PPA) with Peninsula Clean Energy, a California community choice aggregator, under which the CCA will purchase 26 megawatts (MW) of energy from Ormat’s Heber 2 geothermal facility located in Imperial Valley, Calif., effective January 1, 2023.
The PPA marks the successful completion of Ormat’s first ever solicitation for bids, with a request for bids (RFB) on the Heber 2 facility issued in July 2021.
The RFB was published immediately after the California Public Utilities Commission (CPUC) issued its Mid-Term Reliability decision, requiring the procurement of 1,000 MW of weather invariant, zero-emission, 80% capacity generation by all California load serving entities by 2026.
Power from the Heber 2 facility complies with related guidelines, making it the first geothermal PPA to meet the new CPUC requirements, Ormat said on April 14.
The American Public Power Association has initiated a new category of membership for community choice aggregation programs.
South Dakota Cities Find Success With Water Heater Programs
April 15, 2022
by Paul Ciampoli
APPA News Director
April 15, 2022
The cities of Volga and Howard, S.D., are finding success with water heater programs, with customers in both cities taking advantage of rebates on water heaters offered by Heartland Consumers Power District.
Volga and Howard offer Rheem Marathon water heaters for sale at the local utility.
Heartland began offering rebates to residential and commercial customers in 2015 for installing electric water heaters with a lifetime warranty. Marathon water heaters are the most popular brand fitting that description.
The program was developed because it was seen as a win-win: the customer had an efficient water heater with a lifetime warranty and the utility saw an increased electric load. They are also a great fit for a load management system.
Currently, Heartland offers a $200 rebate for the purchase of a water heater 50 to 79 gallons. For water heaters 80 gallons and larger, a $400 rebate is available.
Since Heartland began offering rebates on water heaters, customers in both Volga and Howard have qualified for a proportionately large number of rebates.
Heartland provided rebates for the installation of 291 water heaters from 2015 through 2021. Of those heaters installed, 89 were in Howard and 76 in Volga. The installations in those communities represent 56% of total installations, with 30% in Howard and 26% in Volga.
The city of Volga has been selling Marathon water heaters as far back as 2010.
The city offers both 50- and 85-gallon models, offering discounts to the customer on both. Fifty-gallon water heaters are offered at a price of $768.50, a discount of $368.50 from the city’s cost to purchase. With the $200 rebate from Heartland, the customer pays $568.50. The 85-gallon water heaters are sold for $1,165.50, which includes a discount of $365.50. After the rebate, the final cost to the customer is $765.50.
The city attributes the success of the program mostly to word-of-mouth. While the information is available on the city’s website, they don’t actively promote it.
To make it as convenient as possible, the city will deliver the water heater at no extra cost.
To get the discounted pricing, the customer must have the water heater hooked up to the city’s load management system. This helps keep the city’s peak demand down, which keeps the city’s costs down.
City Electric Superintendent Chad Collins says the program is worth continuing because minimal time is taken by city staff to run it. The city orders water heaters as needed, more when they know a new development is in the works. Because the tanks are so efficient, they don’t get complaints about them being controlled through load management.
Howard has also been selling Marathon water heaters for over ten years. The city originally started the program with the idea that it was a good customer service — since customers purchase both water and electricity from the city, efficient water heaters seemed like a good product to sell at a discount.
Like Volga, the city of Howard doesn’t advertise the Marathon program. Word-of-mouth is the main advertising tool. Local plumbers are aware of the program so when they get a call from someone needing a new water heater, they refer them to the city.
Including the rebates offered by Heartland, Howard sells the water heaters for about half price. A 50-gallon heater costs the purchaser $487.77 after rebate while an 85-gallon model costs $576.
In order to qualify for the discounted pricing, the water heater must be hooked up to the city’s load management system.
Public Power Utilities Eligible To Participate In DOE Clean Energy Innovator Fellowship
April 15, 2022
by Paul Ciampoli
APPA News Director
April 15, 2022
The Department of Energy (DOE) recently launched a Clean Energy Innovator Fellowship that recruits talent from diverse backgrounds to spend up to two years supporting the work of eligible host organizations, which include electric public utility commissions and public power utilities. The deadline for applying is May 6, 2022.
Innovator Fellows receive a stipend and an educational allowance to support host institution projects that will help decarbonize the power system, electrify transportation and industry, and make the U.S. power system more equitable and inclusive, DOE said.
“The goal of the program is to increase access to clean energy career opportunities across the country and accelerate the national transition to resilient and affordable clean energy,” the federal agency noted.
Host institutions and fellowship candidates must each apply separately to participate in the program. DOE will facilitate the process of matching host institutions and fellows.
Projects may address a wide range of topics, including, but not limited to, grid modernization, equitable and affordable access to clean energy and energy efficiency, integration of electric vehicles and building electrification, resilience planning, interconnection, and rate design.
Projects are defined up front, but they have the flexibility to evolve over the fellowship period, DOE said.
Additional details are available here.
Solar Energy Innovators Program
DOE launched the innovator fellowship due to the success of its Solar Energy Innovators Program (SEIP), which was launched in 2017.
SEIP supports qualified candidates at all career levels as they spend one to two years developing and executing research projects with host institutions pursuing solutions to solar energy deployment challenges. Many the program’s alumni have accepted permanent jobs at their host institutions, and others got permanent jobs doing similar work.
Dr. Paul Brooker was a professor at Central Florida University conducting research on fuel cells, electric vehicles, and solar energy when he applied to the SEIP fellowship.
Brooker spent his fellowship at the Orlando Utilities Commission (OUC), a public power utility, simulating the impact of a 108-megawatt solar project on OUC’s operations. He liked the work so much he changed his career. OUC hired Brooker for a full-time job as a supervisor of engineering and research in emerging technologies.
Brooker’s fellowship mentor, Justin Kramer, a manager at OUC in emerging technologies, says, “Being a host organization was extremely convenient and valuable. This program really helps OUC bridge the gap between academia and industry. Our participation brought a new perspective to the team and innovative approaches as to how we pursue new technologies and engage with universities in a way that benefits both parties.”
San Francisco PUC Helps To Cut Emissions, Promote Equitable Access To Clean Energy
April 13, 2022
by Paul Ciampoli
APPA News Director
April 13, 2022
San Francisco Mayor London Breed on April 7 announced a series of new programs that her office said will reduce carbon emissions and promote equitable access to clean energy in San Francisco, two priorities highlighted in San Francisco’s recently updated climate action plan.
The initiatives, which are being managed by the San Francisco Public Utilities Commission (SFPUC), include discounts for 100% renewable energy for low-income customers, rebates to replace fossil fuel powered appliances, and incentives for installing electric vehicle (EV) charging infrastructure.
Together, the programs will help the city make further progress in reaching Breed’s climate action goals, including achieving net-zero emissions by 2040.
Last year, the mayor and the SFPUC announced that CleanPowerSF will provide all customers with 100% renewable electricity by 2025, five years ahead of the city’s goal of 2030 and twenty years ahead of the State’s goal of 2045. The SFPUC launched CleanPowerSF in 2016 with a mission to provide San Francisco residents and businesses with clean, renewable electricity at competitive rates.
Breed’s office noted that the SFPUC has launched a slate of new programs that support a faster transition to renewable energy and more equitable access for communities most impacted by climate change:
- Two new programs offer 100% clean electricity for low-income San Franciscans. The SuperGreen Saver program will offer 100% renewable electricity and a 20% discount on eligible CleanPowerSF customer bills. A newly revamped customer assistance program for Hetch Hetchy Power customers living in affordable and public housing will provide 100% clean electricity at a 30% discount;
- Eligible low-income residents with rooftop solar provided through the GoSolarSF program may receive up to $3,000 for the inspection, repair, and replacement of their solar system inverter, a crucial component that may only function for about half the expected lifespan of the entire solar system;
- CleanPowerSF customers and approved contractors can take advantage of new incentives when installing a heat pump water heater, an all-electric heating technology that can replace natural gas water heaters. CleanPowerSF residential customers who work with an approved contractor can stack new and existing rebates to receive up to $5,600 in incentives toward the installation of a new heat pump water heater;
- Building upon the mayor’s goals to expand EV adoption, a new program provides up to $120,000 in financial incentives for installing EV charging infrastructure in eligible new construction projects.
The San Francisco Public Utilities Commission currently operates two retail electricity services: Hetch Hetchy Power and CleanPowerSF. Together, these programs serve nearly 390,000 customer accounts in San Francisco and meet over 70 percent of the electrical demand in the City.
Hetch Hetchy Power is San Francisco’s publicly owned-utility, which provides 100 percent greenhouse gas-free energy to public facilities such as City Hall, schools and libraries, some private commercial developments, and affordable housing.