Pennsylvania report recommends increasing solar-plus-storage projects
April 25, 2021
by Peter Maloney
APPA News
April 25, 2021
Pennsylvania should pair grid-scale solar arrays with battery energy storage to help reduce carbon dioxide emissions and increase grid resilience, according to a report released by the state’s Department of Environmental Protection (DEP).
One way to encourage the growth of energy storage would be to set a state energy storage capacity target, the report, Pennsylvania Energy Storage Assessment: Status, Barriers, and Opportunities, said, noting that seven other states have already set energy storage targets.
The report’s aim, which was commissioned by the DEP’s Energy Programs Office and prepared by Strategen Consulting, was to determine the best path forward to increasing energy storage statewide. The report was funded by the U.S. Department of Energy’s State Energy Program.
Pennsylvania currently has about 1.5 gigawatts (GW) of energy storage capacity in the form of 22 operating or announced energy storage projects, including 1.07 GW of pumped hydro storage facilities, 18 megawatts (MW) of lithium-ion batteries, 12.5 MW of lead carbon batteries, 6 MW of ice and chilled water thermal storage, as well as smaller amounts of other technologies.
“Pennsylvania’s climate continues to get warmer, and we’ve already started seeing the impacts, with increasing swings in temperature and extreme weather,” Patrick McDonnell, DEP secretary, said in a statement. “Solar-plus-storage can help in two ways: It can help slow down climate change by incorporating more clean renewable energy into Pennsylvanians’ daily electricity use, and it can also make the grid more reliable during extreme weather events, better protecting Pennsylvanians’ health and safety as well as critical facilities.”
Strategen used two scenarios in conducting the analysis in the report. One involved utility scale solar-plus-storage systems to serve the grid, the other used stand alone behind-the-meter energy storage systems that provide electricity customers with direct savings on their bills.
The first scenario found the potential for “significant economic and environmental benefits,” particularly if solar-plus-storage projects are supported by public- or ratepayer-funded investments to buy down the incremental costs of adding storage to solar power purchase agreements. Strategen found that about $65 million of public investment in energy storage could be used to leverage private investment and yield $545 million annually in grid and environmental benefits.
In the second scenario, the report found that under current retail rate structures, energy storage provides very limited value to customers in the form of direct bill savings. Analyzing multiple configurations of energy storage sizes and durations, the report found that most resulted in negative payback.
The report also looked at barriers to energy storage development and, among other recommendations, said Pennsylvania should “establish a storage procurement goal or target.” As an example, the report said a storage target linked to 25 percent of the state’s Solar Future plan could “equate to 1,500 MW of storage by 2030 and yield an estimated benefit of about $273 million per year.
The report also said a target for behind-the-meter energy storage could build on existing energy peak reduction targets overseen by the Pennsylvania Public Utilities Commission.
Pennsylvania’s Solar Future plan calls for 10 percent, or about 11 GW, of the state’s electricity to come from solar energy by 2030.
The storage report also recommends 14 other measures to foster energy storage investment and integration, including convening a statewide storage issues forum, designating public funding to accelerate storage deployment, establishing incentive programs for storage projects, and accelerating microgrid deployment at critical facilities.
Virgin Islands Water and Power Authority board OKs wind power purchase agreement
April 25, 2021
by Paul Ciampoli
APPA News Director
April 25, 2021
The Virgin Islands Water and Power Authority’s (WAPA) governing board recently approved a wind power purchase agreement between WAPA and Advance Power LLC.
Under terms of the agreement, Advance Power will develop, finance, permit, design, construct, test, operate and maintain a wind farm at Bovoni Point on St. Thomas.
Project completion is expected within 24 months of the effective date of the contract.
The wind facility, comprised of six wind turbine generators, will produce approximately 10 MW of wind energy that will be sold to WAPA.
Advance Power was the most responsive bidder to a request for proposals issued in April 2017 and negotiations have been underway since August 2017, WAPA said in a news release.
WAPA Interim Executive Director and CEO Noel Hodge said the wind facility will compliment several other similar renewable projects the Authority is pursuing as part of a federally funded strategic transformation plan.
Hodge noted that WAPA has applied to the Federal Emergency Management Agency for approval of solar and wind projects “as we move the needle forward in diversifying our generation mix. We recognize the need for the Authority to reduce its reliance on fossil fuels to generate electricity, and where feasible, WAPA will pursue projects that allow harnessing energy from lower cost sources such as solar and wind.”
Hodge said that the reduction of reliance on fossil fuel for electrical generation will result in operational savings to WAPA and lower the cost of electricity to customers.
The approved agreement lays the foundation for the development of a wind farm capable of generating about a sixth of the total peak power consumption on St. Thomas, WAPA said.
A report by the National Renewable Energy Laboratory (NREL) identified the site for wind generation as early as 2012. The report estimated the total capacity of a Bovoni wind farm as between 7,000 and 29,000 megawatt hours per year.
“The wide range of potential energy generation represented by these estimates is a function of the total installed plant size, which is in turn limited by the number of turbines that can be placed on Bovoni Point and varying levels of productivity associated with specific turbine designs,” a summary of the report said.
WAPA said that the report also estimated that the cost of generation would be much lower than the cost of oil or liquid petroleum gas-based generation.
The governing board voted unanimously on March 25 to approve the agreement with Advance Power.
APPA receives third patent tied to machine learning techniques
April 25, 2021
by Paul Ciampoli
APPA News Director
April 25, 2021
The American Public Power Association (APPA) has received a patent related to protecting the ability of public power utilities to use machine learning techniques for advanced analytics and benchmarking to improve safety.
This is the third patent APPA has received in its work to help ensure that public power utilities have long-term access to advanced analytical technologies for business-related decision making.
The application was initially submitted to the U.S. Patent Office in March 2018.
While it is likely that utilities will increasingly use specialized machine learning techniques to predict and prevent outages and equipment failure, this application is focused on increasing the likelihood that maintenance actions are safe. “Using machines to help us see patterns that aren’t obvious is a great role for technology and can help keep us safe,” said Alex Hofmann, Vice President, Technical and Operations Services, APPA.
“Through the system we have designed, our systems and workers will be able to take actions that are safer for a given situation. How many times has the weather drastically changed and lineworkers keep working without adjusting to the new risk, leading to injury?” Though participation in our eSafety Tracker service, APPA is helping public power utilities work together to build and train machine learning models to predict the safety-related outcomes of planned future maintenance actions.
Hofmann is one of the inventors of the system that received the patents.
APPA praises Clean Energy for America Act for helping public power invest in clean energy
April 21, 2021
by Paul Ciampoli
APPA News Director
April 21, 2021
The American Public Power Association (APPA) on April 21 said it appreciates the work Senate Finance Committee Chairman Ron Wyden, D-Ore., and his staff have put into refining and improving federal energy tax incentives in the Clean Energy for America Act (CEA).
The CEA recognizes that tax-exempt entities are excluded from energy investment tax incentives, which are intended to promote non-emitting resources to address climate change. Lack of access to these incentives makes it difficult for public power utilities to make investments in clean energy resources.
This is a significant omission given that tax-exempt entities, including public power utilities, serve nearly 30 percent of the nation’s retail customers, or approximately 90 million Americans, APPA said in a news release.
APPA noted that the CEA encourages key investments by public power utilities and rural electric cooperatives by allowing these projects to be financed with taxable direct payment Clean Energy Bonds (CEBs).
Projects financed by a CEB would not qualify for either the investment or production tax credits. However, the federal government would reimburse the project owner by making payments of up to 70 percent of the interest paid on a CEB. These payments would provide a significant savings over the life of a project, APPA said.
The GREEN Act, which will be considered by the House of Representatives later this year, takes a different approach by allowing public power utilities to receive discounted tax credits and production tax credits on a refundable basis.
APPA said that it is pleased to see that Congress “is now considering how to best to ensure that all utilities are included in energy incentives, not stuck on whether to do it at all. With these incentives, not-for-profit utilities will be better positioned to finance and build clean energy resources to help face the challenges posed by climate change.”
Glendale Water & Power launches demand response program
April 21, 2021
by Paul Ciampoli
APPA News Director
April 21, 2021
California public power utility Glendale Water & Power (GWP) has launched a demand response program for residential and commercial customers, GWP reported on April 19.
Through the peak savings program, customers will receive incentives for reducing demand on the electric grid on days when demand is highest. The program will be run by Franklin Energy, a provider of energy efficiency and grid optimization solutions.
For residential customers, the program will automatically adjust customer smart thermostats by up to three degrees Fahrenheit on peak events. Participating customers receive $50 for enrolling, and $50 each year on their enrollment anniversary through a prepaid debit card. Customers who do not have a smart thermostat are eligible to receive a $100 instant rebate when purchasing a smart thermostat through GWP’s Energy and Water Efficiency Marketplace which will be launched in the coming weeks.
Commercial customers that participate in the program receive a complimentary site assessment to determine ways to reduce energy during peak events, GWP noted.
An energy advisor will provide a customized energy reduction plan which will be implemented on peak events to help reduce peak electric demand. Participating commercial customers can receive up to $250 per event.
Up to 15 peak events can be called each year. Residential customers can opt out of a maximum of two events without affecting their incentives. Commercial customers may opt out of any event, but will not receive incentives for the peak events they did not participate in.
The peak savings program is designed to deliver up to 10 MW of controllable demand by 2024
First phase of Virgin Islands Water and Power Authority microgrid plan receives funding
April 21, 2021
by Paul Ciampoli
APPA News Director
April 21, 2021
The first phase of the Virgin Islands Water and Power Authority’s (WAPA) plan to develop an 18-megawatt (MW) microgrid, complete with a battery storage system, for the west end of St. Croix, Virgin Islands, has received an initial allocation of federal funding, WAPA said on April 9.
The funds will cover costs associated with the design and engineering of the project.
WAPA Interim Executive Director Noel Hodge said that $4.4 million was approved by the Federal Emergency Management Agency on April 2.
“WAPA can now begin the engineering studies and design of the St. Croix microgrid, which encompasses one component of the Authority’s five-year Strategic Transformation Plan,” he said. “The entire project, which is federally funded, will total more than $129 million.”
WAPA said its plan calls for the development of a more efficient, reliable and resilient electrical system using federal funds that have been designated for hazard mitigation projects in the aftermath of hurricanes in 2017.
It includes the addition of new generation at the territory’s power plants, undergrounding of electrical equipment to at least 50% of utility customers, the addition of more wind and solar renewables and the installation of composite poles that can better withstand the effects of major windstorms.
As it relates to the St. Croix west end microgrid, the project includes construction of a solar generation plant and a battery energy storage system.
When completed, the 18 MW generated by the microgrid will be coupled with four megawatts of renewable energy produced by the solar facility at Spanish Town to represent 50% of the daily power generation by renewables produced on St. Croix, WAPA said.
The approval of funding for phase one of the St. Croix microgrid comes as work is about to commence on four electrical underground projects, three on St. Croix and one on St. John.
Additionally, at the end of March, approximately 3,400 of the newer composite poles have been installed across the territory. The pole project, which is slated for completion in 2024, is about 40% complete.
WAPA “is pursuing every opportunity for initiatives such as new and efficient power generation and the addition of solar and wind to reduce the utility’s operating costs. Reduced operating costs will translate to lowering the cost of electrical service to all of our customers,” Hodge said.
NYPA unveils five-year sustainability plan, first annual sustainability report
April 21, 2021
by Paul Ciampoli
APPA News Director
April 21, 2021
The New York Power Authority (NYPA) on April 20 unveiled a five-year plan that establishes goals and strategies to achieve the state’s climate goals through a comprehensive sustainability agenda.
Progress against NYPA’s sustainability plan will be measured with annual sustainability reports.
The 2021-2025 sustainability plan outlines the steps NYPA and its subsidiary, the New York State Canal Corporation, are committed to taking to advance sustainability efforts across 15 environmental, social and governance (ESG) focus areas.
The plan will evolve as the ESG initiatives advance to support VISION2030 implementation. The document complements NYPA’s first annual sustainability report, also released on April 20, which details the Authority’s progress in ESG areas in 2020.
NYPA noted that sustainability, measured through an ESG structure, is a foundational pillar of VISION2030, NYPA’s recently introduced strategic plan to help lead the state energy infrastructure’s transformation into a clean, reliable, resilient and affordable system over the next decade.
VISION2030 also sets NYPA on a path to support the state’s Climate Leadership and Community Protection Act’s (CLCPA) goal of achieving a net-zero carbon economy by 2050.
NYPA will assess its business through the ESG framework, which guides long-term business investments and shows transparency and accountability.
The sustainability plan describes NYPA goals and strategies that have been identified for 15 key sustainability focus areas, in alignment with VISION2030, the CLCPA, state energy programs and executive orders, and industry leading practices, NYPA said.
“The areas, ranging from renewable energy to employee development to risk management, are considered to have the greatest potential impact on NYPA’s business and to be of most importance to stakeholders. The plan has been developed with guidance and input from business units and department leaders across the organization, including Sustainability Advisory Council members, subject matter experts and other key stakeholders,” NYPA said.
The 2020 sustainability report outlines progress toward achieving the goals identified in the five-year plan to date.
Annual reports will disclose comprehensive data related to the implementation of sustainability goals that will be leveraged for decision-making across the organization. NYPA said its goal is to become one of the first U.S. utilities to issue an integrated report for the 2022 reporting cycle.
The report approved on April 20 highlights NYPA’s sustainability commitments and accomplishments in 2020, including:
- Work toward a 2035 target for eliminating carbon emissions from NYPA’s small clean power plant portfolio, which NYPA said is a significant step toward meeting the state goal of a carbon-free power system by 2040;
- The financing of hundreds of millions of dollars of customer energy efficiency and clean energy projects;
- Supporting 400,000 jobs across New York State through economic development programs;
- Supporting the development and engagement of a diverse workforce through a 10-Point Diversity, Equity and Inclusion Plan; and
- Continuing to fund a $300 million Reimagine the Canals initiative to revitalize the Erie Canal corridor as a prime tourism and recreation destination.
FERC issues policy statement on carbon pricing in organized wholesale markets
April 20, 2021
by Paul Ciampoli
APPA News Director
April 20, 2021
The Federal Energy Regulatory Commission (FERC) last week issued a policy statement clarifying how it will consider market rules proposed by regional grid operators that seek to incorporate a state-determined carbon price in organized wholesale electricity markets.
“Carbon pricing has emerged as an important market-based tool in state efforts to reduce greenhouse gas emissions, including in the electricity sector,” FERC noted in a related news release.
The policy statement, which was released at FERC’s April 15 monthly open meeting, takes effect immediately.
FERC in October 2020 proposed a policy statement to clarify that it has jurisdiction over organized wholesale electric market rules that incorporate a state-determined carbon price in those markets. The proposed policy statement also sought to encourage regional electric market operators to explore and consider the benefits of establishing such rules. In September 2020, FERC convened a technical conference at which panelists expressed support for the idea of a carbon dioxide pricing regime for organized wholesale power markets.
Twelve states now impose some version of carbon pricing, with numerous additional states considering them, the final policy statement said. Various entities, including regional grid operators, are examining approaches to incorporating state-determined carbon prices into wholesale electricity markets.
The policy statement explains that wholesale market rules incorporating a state-determined carbon price can fall within the Commission’s jurisdiction under section 205 of the Federal Power Act (FPA).
The policy statement presents a framework for the Commission to exercise its jurisdiction when it reviews any future proposals under FPA section 205 while making clear that the Commission will evaluate any proposal based on the facts and circumstances presented in each proceeding, FERC said.
At the same time, the policy statement does not indicate a preference for carbon pricing over any other state policy. It affirms that whether and how a state chooses to address greenhouse gas emissions is a matter exclusively within that state’s jurisdiction, FERC said.
Danly, Christie weigh in
FERC Commissioners James Danly and Mark Christie concurred in part and dissented in part from the policy statement.
Commissioner Danly noted that any party with a rate on file can submit a Federal Power Act section 205 filing at any time. “I therefore cannot oppose the policy statement’s effective acknowledgement that section 205 has yet to be repealed and thus the Commission is obligated to consider such filings, including those related to carbon pricing initiatives,” he wrote.
“So, as seemingly unnecessary as it may be to announce a policy of ‘non-binding . . . potential considerations,’ I see no basis upon which to oppose that aspect of the policy statement.”
He noted that “non-binding” is the majority’s view of FERC’s jurisdictional powers as they memorialize them in the policy statement.
“I accordingly dissent from the policy statement to the extent it attempts to prejudge the jurisdictional merits of any future section 205 proposals. Congress grants our jurisdiction, and the courts decree its limits when we overstep it. Anyone considering a section 205 filing following this issuance would be well-advised to read the courts’ decisions in order to inform themselves as to the proper bounds of a legitimate tariff proposal; interested parties should do the same when formulating protests,” he said.
Christie concurred that any filing under section 205 proposing some form of carbon pricing will be evaluated on the facts and circumstances attendant to that filing.
“I dissent from those parts of the Policy Statement to the extent those provisions may be interpreted to appear to invite proposals for carbon pricing that are inconsistent with the following general principles,” he wrote.
He said it is important “to be straightforward with the public about what is being considered in this proceeding. For a government to retain the trust of the people, it is imperative to avoid what George Orwell criticized as language that disguises the truth about government actions behind euphemisms and other distortions.”
Christie said the term carbon “price” as used in this docket “and by many commenters advocating for it, is a carbon tax. This is not just a matter of semantics. Using terms accurately will not only better serve and inform the public, but is essential to clarify, and avoid obfuscating, the legal – including constitutional – questions regarding this Commission’s authority.”
Christie emphasized “that simply labeling a carbon tax proposal accurately does not determine whether it is good or bad public policy, at either federal or state levels. Indeed, that’s not for an administrative agency to decide.”
He said that the broader question providing context for this and future proceedings goes to the heart of democratic government itself and, that is — Who should have the power to tax?
“And we don’t have to answer that question because the Constitution already has. It makes it clear that only those elected by the people to the legislative branch have this power. Congress can legislate to grant this power to an administrative agency through a clear and specific statute – and take accountability for its decision – but in the case of taxing carbon no one has made a convincing case that Congress has granted this power to FERC,” he wrote.
Christie outlined general questions that he said are pertinent to the proceeding and implicitly raised by the Policy Statement and which have been alluded to by the many commenters:
- Can states impose carbon taxes? “As the Policy Statement notes, the answer is clearly yes, under their plenary police powers, as long as they don’t attempt to tax transactions where federal law has explicitly pre-empted them. They don’t need FERC’s permission to impose carbon taxes on retail sales or energy production, if they choose; they can do it now.”
- Can FERC impose a carbon tax at the wholesale level through its power to regulate RTOs/ISOs? Congress would have to empower FERC by a clear and specific statute to impose carbon taxes in RTO/ISO markets “and no one in this record has presented a convincing argument that Congress has done so,” Christie said.
Another question is whether FERC can allow an RTO/ISO to impose a carbon tax on wholesale sales of power.
“To a certain extent, this question implicates the broader question about the nature of RTOs/ISOs. Some argue that they are merely private utilities and FERC’s only role is to review a rate filing from an RTO/ISO and to approve the filing unless FERC finds it to be ‘unjust, unreasonable or unduly discriminatory,’” Christie said.
“Rather than being little more than private utilities, however, RTOs/ISOs in their present incarnation were essentially created by FERC, as part of the ‘restructuring’ era of the late 1990s/early 2000s, to carry out FERC-driven rate policies,” he said.
RTOs and ISOs “have evolved to resemble somewhat more the hybrid entities that the British not so lovingly call ‘QANGOs’ (quasi-autonomous non-governmental organizations) than they do purely private utilities. This is especially true with regard to multi-state RTOs/ISOs, in which utilities from many different states participate and in which the interests and policies of those multiple states are implicated. Over the past two decades these organizations have taken on various regulatory roles that are more governmental in nature than private, in some cases literally displacing state regulatory authority,” wrote Christie.
“So, just as FERC cannot directly impose a carbon tax without a clear grant of congressional authorization, arguably it would be a distinction without a difference for FERC to approve a proposal from an RTO/ISO to impose a carbon tax.”
This would include efforts by a multi-state RTO/ISO and its market participants to address “leakage” by penalizing resources in states within the RTO that have not imposed a carbon tax, such as, for example, attempting to levelize the costs of state-imposed carbon taxes by imposing a higher offer floor on untaxed resources from the non-conforming “leakage” states in the RTO/ISO, he said.
A fourth question is whether FERC can allow an RTO/ISO to recognize carbon taxes imposed by one or more states.
“If a state has used its sovereign authority to impose a carbon tax, directly or indirectly, and that tax is simply incorporated into the production costs of a resource from that state offered into the RTO/ISO markets, there is no reason for FERC to intervene. State-imposed regulatory costs, which of course differ from state to state, are already “baked in” to a bidder’s costs and present no cause for FERC’s concern,” Christie said.
“Just as with proposals to accommodate other state policies, however, consideration of each specific proposal will be highly fact-intensive and one key question will be to determine whether the line has been crossed between simply recognizing an individual state’s carbon tax versus imposing that state’s tax on generating resources – and consumers – in other states that have not consented to be taxed, an especially salient question in multi-state RTOs/ISOs.”
All future proceedings under Section 205, 206 or other statutory provisions “will, of course, come with their own individual evidentiary records and will be judged individually at that future time. To the extent, however, the Policy Statement may be interpreted to invite proposals inconsistent with the general principles stated above, I respectfully dissent.”
DOE moves to modernize cybersecurity defenses and secure energy sector supply chain
April 20, 2021
by Paul Ciampoli
APPA News Director
April 20, 2021
The U.S. Department of Energy (DOE) on April 20 launched an initiative to enhance the cybersecurity of electric utilities’ industrial control systems (ICS) and secure the energy sector supply chain.
The plan is a coordinated effort between DOE, the electricity industry and the Cybersecurity and Infrastructure Security Agency (CISA).
Over the next 100 days, DOE’s Office of Cybersecurity, Energy Security, and Emergency Response (CESER), in partnership with electric utilities, will continue to advance technologies and systems that will provide cyber visibility, detection, and response capabilities for industrial control systems of electric utilities, DOE said in a news release.
DOE said the initiative modernizes cybersecurity defenses and:
- Encourages owners and operators to implement measures or technology that enhance their detection, mitigation, and forensic capabilities;
- Includes concrete milestones over the next 100 days for owners and operators to identify and deploy technologies and systems that enable near real time situational awareness and response capabilities in critical ICS and operational technology (OT) networks;
- Reinforces and enhances the cybersecurity posture of critical infrastructure information technology networks; and
- Includes a voluntary industry effort to deploy technologies to increase visibility of threats in ICS and OT systems.
RFI
In addition, DOE released a request for information (RFI) to seek input from electric utilities, energy companies, academia, research laboratories, government agencies, and other stakeholders to inform future recommendations for supply chain security in U.S. energy systems.
The comments received in response to the RFI will enable DOE “to evaluate new executive actions to further secure the nation’s critical infrastructure against malicious cyber activity and strengthen the domestic manufacturing base,” it said.
Accordingly, DOE expects that, during the period of time in which further recommendations are being developed, “utilities will continue to act in a way that minimizes the risk of installing electric equipment and programmable components that are subject to foreign adversaries’ ownership, control, or influence.”
The RFI is available on the DOE Office of Electricity’s web page, www.energy.gov/oe/securing-critical-electric-infrastructure.
“Ensuring the cyber and physical security of our nation’s electric grid is a top priority for APPA and its industry and government partners. As threats to our electric system continue to evolve, we are encouraged to see the Administration take action to engage industry in an effort to continuously improve our collective posture,” the American Public Power Association (APPA) said.
“We see this action as complementary to the existing partnership between APPA and DOE-CESER to help smaller public power utilities improve their security by implementing hardware, firmware and software to detect and respond to adversarial activity through information sharing; provide advanced analytics for pinpointing when and where a system was compromised; and employ autonomous defense at remote endpoints,” APPA said.
Glick discloses that FERC is in discussions with state regulators on transmission issues
April 19, 2021
by Paul Ciampoli
APPA News Director
April 19, 2021
The Federal Energy Regulatory Commission (FERC) is in discussions with the National Association of Regulatory Utility Commissioners (NARUC) to develop a formal approach between the states and FERC “that will allow us to jointly tackle” transmission issues head on, FERC Chairman Richard Glick said on April 15.
At the Commission’s monthly open meeting, Glick said he believes that FERC must make changes to its regulations and policies “to improve the way electric transmission is planned, paid for and operated.”
At the same time, “we also need to improve the process for interconnecting new generation to the transmission grid,” he said.
In addition, he said it is time to revisit the Commission’s oversight of transmission investment to “make certain captive customers aren’t paying for unneeded or unwise transmission projects.”
He said he plans “to sit down with my colleagues over the coming weeks to finalize a plan of action for moving forward with these much-needed changes” on transmission policy.
“It is also important that we recognize that the states are also going to play a very important role in building out the grid to accommodate the transition to the clean energy future,” Glick said.
He noted that FERC is currently in talks with NARUC to develop a more formal approach between the states and FERC that will allow FERC and the state utility commissions to jointly tackle transmission issues.
He hopes to have an announcement on the FERC-NARUC collaboration soon.
At the same time, he said that although substantial investments in new transmission capacity are needed, “we also must focus on making more efficient use of the existing grid.”
He argued that the current approach to utility regulation “often incentivizes more capital-intensive investments” in new steel in the ground “when more economical investments aimed at increasing the efficiency of the existing facilities could offer substantial benefits.”
Therefore, Glick announced a workshop on a shared savings approach for incentivizing technologies that will help increase the use of the existing grid.
“This is an idea presented in an earlier technical conference,” he noted.
“I am glad the Chairman has decided to hold a workshop on grid-enhancing technologies to further explore whether a shared savings type approach is viable,” said Commissioner Neil Chatterjee.
“That’s a step in the right direction when it comes to needed grid reforms,” Chatterjee said.
On April 19, FERC issued a notice establishing September 10, 2021 as the date of the workshop.
According to the notice, the workshop “will discuss issues related to shared savings approaches for transmission technologies seeking incentives under Federal Power Act section 219.”
Additional details concerning topics of discussion at the workshop are included in the notice.