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MMWEC expands residential demand management program to include thermostats

December 15, 2020

by Paul Ciampoli
APPA News Director
December 15, 2020

Massachusetts Municipal Wholesale Electric Company (MMWEC), the joint action agency for municipal utilities in Massachusetts, is expanding its residential demand management program, “Connected Homes.” Beginning this month, select wifi thermostats have been added to the program for all participating municipal light plants (MLPs).

Connected Homes allows residential customers to better manage wifi-connected devices in their homes while reducing their carbon footprint.

Connected Homes, launched in April 2020 with 11 MLPs, is offered through MMWEC’s residential energy conservation service, the Home Energy Loss Prevention Services (HELPS) program.

HELPS is working with the company Virtual Peaker, a software platform, to allow customers of the participating MLPs to leverage the technology of smart appliances and devices into energy and cost savings for the light department and its customers, MMWEC noted.

By enrolling a smart device in the Connected Homes program, customers agree to allow their light department to make brief, limited adjustments to their devices during times of peak electric demand, such as temporarily reducing the charging rate of an electric vehicle during peak hours. Customers will be informed of possible adjustments in advance via email and given the choice to opt out of each adjustment. Customers who participate are given a stipend or bill credit.

Starting in December, select wifi thermostats have been added to the program for all participating MLPs.

Other devices already in the program are home batteries, electric vehicle chargers, electric hot water heaters and mini-split controllers. Devices and incentive amounts may vary by MLP.

In addition, two additional MLPs have signed on to participate, bringing the total number of participating utilities to 13.

Beginning January 1, the municipal utilities in Belmont and Shrewsbury join those in the communities of Groton, Holden, Holyoke, Ipswich, Mansfield, Marblehead, Princeton, South Hadley, Sterling, Wakefield and West Boylston.

“Through participation in Connected Homes, the growing number of customers moving toward electrification can easily and conveniently manage their home’s energy use, by adjusting the device’s energy usage remotely, or by setting an automatic schedule,” MMWEC said in a Dec. 14 news release.

MMWEC is a non-profit, public corporation and political subdivision of the Commonwealth of Massachusetts, created by an Act of the General Assembly in 1975 and authorized to issue debt to finance a wide range of energy facilities.

MMWEC provides a variety of power supply, financial, risk management and other services to the state’s consumer-owned municipal utilities. It has 20 municipal utility members and 28 project participants.

Fitch says public power utilities are well positioned financially headed into 2021

December 14, 2020

by APPA News
December 14, 2020

U.S. public power utilities are well positioned financially headed into next year, as lower expenses have helped preserve margins and liquidity in the wake of pandemic-driven declines in electric demand and revenue, according to Fitch Ratings.

However, Fitch’s 2021 outlook report points to some concerns related to the lingering effects of the coronavirus pandemic and economic contraction, as well as more aggressive climate issues, the rating agency said on Dec. 9.

The rating outlook for the public power sector is stable.

“The operational and financial resilience exhibited by the public power sector through 2020, together with improving operating fundamentals, support Fitch’s stable outlook,” said Managing Director Dennis Pidherny.

Fitch said that electric demand is expected to stabilize in 2021 as the U.S. economy recovers from recession and achieves pre-pandemic gross domestic product levels.

“A continuance of low, stable energy prices and interest rates should also help preserve operating margins and affordability. These factors are to expected ease upward pressure on electric rates, support strong cash flow and moderate leverage throughout the sector,” Fitch said.

At the same time, uncertainty surrounding the lingering effects of the pandemic and the potential for more aggressive environmental mandates could disrupt longer term performance, according to the rating agency.

Greater support from public power systems may be required by local governments facing pandemic-related fiscal challenges, particularly those facing severe declines in tax revenue, Fitch said.

Meanwhile, Fitch said that an increased focus on carbon dioxide emissions reduction by federal leadership is expected to develop under President-elect Biden and could lead to more aggressive environmental policies with an evenly divided Senate.

“While many states continue to forge their own paths to address climate issues, the implementation of a national renewable standard could pressure operating costs, as well as the affordability metrics, at public power systems located in states with no standards or targets, or that have exemptions in place,” Fitch said.

Moody’s says 2021 outlook for public power is stable

Moody’s Investors Service this month said its outlook for the U.S. public power sector is stable because the rating agency expects the sector to be relatively resilient through the ongoing global recession.

“Public power utilities’ business model inherently helps maintain stability; they provide essential services in a non-profit oriented manner, have strong liquidity and have self-regulated rate-setting ability to help manage cost recovery,” Moody’s said in a Dec. 7 report.

Vermont Public Power Supply Authority to bring mapping software, data analytics to members

December 14, 2020

by Paul Ciampoli
APPA News Director
December 14, 2020

Vermont Public Power Supply Authority (VPPSA) and mPower Innovations on Dec. 10 announced a strategic partnership to bring mapping software and data analytics to VPPSA’s 11 community-owned electric utilities.

The partnership is a key step in deploying future utility technology advancements, including VPPSA’s anticipated 2021 rollout of advanced metering infrastructure for Vermont’s smallest electric utilities, VPPSA noted.

VPPSA is a joint action agency that provides services and solutions to their member municipal electric utilities and their combined 30,000 customers. mPower Innovations is a GIS software developer.

Under the partnership, mPower and VPPSA will build and maintain a geographic information system (GIS) mapping program for each VPPSA member utility.

A services and software licensing agreement will allow VPPSA and its members access to mPower’s Integrator software, which retrieves data from AMI meters and enables geospatially-based load analysis, voltage analysis, interconnection studies, and insight into energy use trends.

VPPSA members can also use the software for multiple purposes including cost-effectively managing utility assets, preventative maintenance, vegetation management, and outage tracking and analysis.

“GIS mapping and circuit modeling provide a solid foundation from which to build out further technological innovations, but it’s a service that small utilities may struggle to afford on their own,” said VPPSA General Manager Ken Nolan in a statement. “VPPSA is constantly exploring opportunities to bring economies of scale benefits to our members. We are grateful to mPower for developing an accessible price structure and think this arrangement could serve as a model to joint action agencies around the country.”

VPPSA noted that as an indication of its commitment to the partnership, it has hired a full-time GIS Technician to work with member utilities and mPower to successfully deploy mapping software.

Boston to launch community choice electricity program in February

December 14, 2020

by Paul Ciampoli
APPA News Director
December 14, 2020

Boston Mayor Martin Walsh on Dec. 4 announced a series of milestones in the development of the City of Boston’s community choice electricity program, which will officially launch Feb. 1, 2021 and will be the largest municipal aggregation program in New England.

Boston has contracted with Constellation NewEnergy Inc. as the supplier and will offer three product options for customers.

“Designed as an opt-out program, CCE offers customers flexibility in their electricity choices without any change in delivery or any contractual commitments,” the mayor’s office said.

Investor-owned Eversource offers city residents a default electric supply option called basic service. The City of Boston recently began sending notices to residents on Eversource basic service. Those residents will be automatically enrolled in the program unless they actively choose to opt out.

The CCE effort is a key strategy in the city’s Climate Action Plan to lower emissions and achieve carbon neutrality by 2050, Walsh’s office noted.

Boston’s CCE program will offer the opportunity for more than 20,000 low-income customers to receive meaningful discounts on their electricity costs through the Commonwealth of Massachusetts’ Solar Massachusetts Renewable Target (SMART) Program.

The City of Boston has partnered with NextGrid Inc. which will build 100 megawatts of new solar PV modules within Massachusetts. When completed, the incentives from the new solar projects will result in an estimated $72 annual savings for the average low-income household, and more than $28 million over 20 years.

The city is seeking to contract with other developers for more solar energy capacity to increase low-income customer savings and spur job creation. 

Additional information about the CCE program is available here.

APPA weighs in on FEMA proposed rules tied to disaster grant closeout procedures

December 14, 2020

by Paul Ciampoli
APPA News Director
December 14, 2020

The American Public Power Association recently weighed in on proposed rules put forth by the Federal Emergency Management Agency (FEMA) related to disaster grant closeout procedures.

The Dec. 10 comments were submitted by Alex Hofmann, APPA’s Vice President, Technical and Operations Services.

“Every year, our member utilities critical facilities and infrastructure, including poles, lines, and transformers, are impacted by extreme weather events such as ice storms, fires, tornadoes, floods, hurricanes,” Hofmann noted.

When this damage comes as a part of a major disaster as declared by the President of the United States, public power response and recovery costs are eligible for reimbursement through FEMA.

These grants, authorized by the Robert T. Stafford Disaster Relief and Emergency Assistance Act and administered under FEMA’s Public Assistance Program, “can amount to tens of millions of dollars and are critical to the ability of our member utilities, cities, and towns to recover from disasters,” the comments said.

Therefore, FEMA’s development and application of the closeout procedures policy is of great interest to APPA.

FEMA’s proposal to allow unlimited tolling of the statute of limitations is not what Congress intended nor what the statute provides, APPA said in the comments.

FEMA argues that it can retain the right to toll the statute because seeking additional information “constitutes the beginning of an administrative action.”

However, the actual effect is to puts the grantee in a permanent state of limbo, APPA argued. “On the one hand the threat of clawback remains, but on the other, FEMA has taken no administrative action against which the grantee can seek relief.”

This is “precisely the kind of abusive situation” that Section 705(a) (Statute of Limitations) of the Stafford Act was intended to address, Hofmann wrote.

“It also subverts the fair trade-off intended by section 705(a) – the grantee must wait up to three years before it can be certain that FEMA will not take administrative actions to recover a public assistant grant; whereas FEMA has just three years to discover ‘an issue that the recipient and/or subrecipient needs to address’ and take administrative actions resulting from that issue.”

FEMA’s proposal “is all the more frustrating because it implies that as a regular course of business, FEMA will not really begin to review certified final expenditure reports until years after the fact and that grantees, when a request for information is made, should assume that they will have to wait more than three years to have such issues resolved,” Hofmann wrote.

“Again, that is not what Congress intended when it enacted section 705(a). What Congress intended was that FEMA would use the three-year period to complete its review of a completed report, to make requests for additional information, and to decide whether to seek administrative action.”

Moreover, there is nothing about the intended process — rather than the one proposed by FEMA — that puts FEMA at a disadvantage, the comments pointed out.

“For example, one of the more common reasons for taking administrative actions to recover is a grantee’s failure to adequately document a public assistance request. The intended process simply requires FEMA to decide sooner, rather than later, that a request is inadequately documented.”

APPA also argued in its comments that FEMA should not “re-open” a project after it has been approved and closed out to de-obligate funds.

Once FEMA has reviewed and closed a project, FEMA should not be allowed to later reopen the project to reverse these determinations to the detriment of a recipient or sub-recipient, the trade group said.

“Post approval and close out challenges to procurement should not be allowed, as proper procurement supports reasonableness of the costs, and FEMA’s closeout of a project includes confirmation that FEMA has determined a cost is reasonable – so procurement compliance at that point should be moot,” wrote Hofmann.

CISA urges affected organizations to take action in response to exploitation of SolarWinds software

December 14, 2020

by Paul Ciampoli
APPA News Director
December 14, 2020

The Cybersecurity and Infrastructure Security Agency (CISA) on Dec. 13 said that it is aware of active exploitation of a vulnerability in versions of the SolarWinds Orion Platform software.

Versions 2019.4 through 2020.2.1 of the software were released between March 2020 through June 2020.

CISA, which falls under the purview of the Department of Homeland Security (DHS), is encouraging affected organizations to read SolarWinds and FireEye advisories for more information and FireEye’s GitHub page for detection countermeasures. FireEye is a cybersecurity firm.

In its security advisory, SolarWinds said it was made aware that its systems “experienced a highly sophisticated, manual supply chain attack” on SolarWinds Orion Platform software builds.

“We have been advised this attack was likely conducted by an outside nation state and intended to be a narrow, extremely targeted, and manually executed attack, as opposed to a broad, system-wide attack,” SolarWinds said.

In the security advisory, SolarWinds offers several steps for parties to take related to use of the SolarWinds Orion Platform.

Meanwhile, DHS on Dec. 13 said that the relevant SolarWinds Orion products are currently being exploited by malicious actors. This tactic permits an attacker to gain access to network traffic management systems, DHS said. Disconnecting affected devices is the only known mitigation measure currently available, it said.

DHS said that CISA has determined that this exploitation of SolarWinds products poses an unacceptable risk to federal civilian executive branch agencies and requires emergency action.

This determination is based on: (1) Current exploitation of affected products and their widespread use to monitor traffic on major federal network systems; (2) High potential for a compromise of agency information systems; and (3) Grave impact of a successful compromise.

“CISA understands that the vendor is working to provide updated software patches. However, agencies must wait until CISA provides further guidance before using any forthcoming patches to reinstall the SolarWinds Orion software in their enterprise,” DHS said.

ESCC

“The electric power industry takes all vulnerabilities and threats to the energy grid and our supply chains very seriously, including the latest SolarWinds Orion Platform vulnerability that cuts across many sectors,” the CEO-led Electricity Subsector Coordinating Council (ESCC) said in a Dec. 14 statement.

The ESCC “is highly engaged and already has conducted a situational awareness call on this threat,” the ESCC said.

The North American Electric Reliability Corporation’s Electricity Information Sharing and Analysis Center (E-ISAC) also has provided potential indicators of compromise and other technical data that electric companies, public power utilities, electric cooperatives, and independent power producers in North America are utilizing to run comprehensive diagnostics of their systems to identify and to remediate any threat exposure, the ESCC noted.

“This information sharing is representative of the strong industry-government partnership that the ESCC embodies and is vital to guarding the energy grid from all possible threats,” the ESCC said.

Public power utilities should follow the guidance from the E-ISAC “as well as the Cybersecurity and Infrastructure Security Agency (CISA) as this situation unfolds,” said Sam Rozenberg, CPP and Director of Security and Resilience at the American Public Power Association.

Questions related to this development can be directed to: Cybersecurity@PublicPower.org.

Traverse City Light and Power becomes first utility to deploy SF6-free circuit switchers

December 11, 2020

by Peter Maloney
APPA News
December 11, 2020

Traverse City Light and Power (TCL&P) located in Traverse City, Michigan has installed circuit switchers that use clean dry air instead of traditional sulfur hexafluoride (SF6) insulating gas, making it the first utility in the United States to use the new technology.

The Blue Clean Air 72.5-kilovolt (kV) CPV2V Circuit Switcher was built by Siemens Energy in the company’s Richland, Mississippi plant and commissioned at TCL&P in October 2020.

The new switchers “provide more reliability to our customers and save maintenance costs along with being more environmentally friendly,” Tony Chartrand, system engineer at TCL&P, said In addition, SF6 will likely be outlawed at some point in the future – as many refrigerants have – and it is getting harder and harder to refill a bottle of SF6, he said.

TCL&P has set a goal of deriving 100% of its generation needs from renewable energy resources by 2040. The new switchers “match up with that goal by getting rid of devices that could leak greenhouse gases into the atmosphere,” Chartrand said.

Sulfur hexafluoride has a global warming potential 23,500 times that of carbon dioxide.

The clean air switchers use a vacuum tube to break the arc instead of SF6. The vacuum tube is surrounded by a normal air mixture that is dried and filtered in order to remove any possible contaminants that could cause an arc around the vacuum bottle. Clean air is readily available from industrial suppliers, but Siemens provided a G-size tank of air to fill the switchers that is expected to last as long as the switchers do. The new technology also eliminates the need to store and handle sulfur hexafluoride gas.

Siemens says its Blue Clean Air circuit switchers are capable of reliable short-circuit interruption at voltage levels above 69 kV and that it can in temperatures as low as -50° C (-58° F), thus eliminating the need for external heaters.

TCL&P has been upgrading its 69-kV distribution system. The two new switchers were installed to replace fuses that were protecting the transformers. It was the utility’s last substation that was still using transformer fuse protection, Chartrand said.

TCL&P has a number of other SF6 switchers, most of which are not even 20 years old and still have life in them, Chartrand said, adding that the utility is taking a phased approach to replacing them.

Eventually TCL&P plans to replace all its traditional SF6 switchers with clean air switchers, but they are more expensive, currently costing about 68% more than traditional technology, Chartrand said. On the other hand, the new switchers offer estimated life cycle cost savings of up to 40% over SF6 circuit switchers, and the new switchers have a longer expected operating life and have longer maintenance intervals. “We have no plan to buy any more SF6 devices; we plan to move exclusively to vacuum technology for all of our breakers and circuit switchers,” Chartrand said.

Grand Rapids Public Utilities collaborates on solar-plus-storage project

December 11, 2020

by Paul Ciampoli
APPA News Director
December 11, 2020

A solar-plus-storage project in the City of Grand Rapids, Minn., is the result of a collaboration between Minnesota public power utility Grand Rapids Public Utilities and several other parties.

US Solar is developing the two-megawatt solar array and one-megawatt/2.5-hour energy storage battery on city-owned land near the Grand Rapids/Itasca County Airport.

The solar array will include single-axis trackers and bifacial modules which significantly increase the efficiency of the solar array.

The project is expected to start producing energy for Grand Rapids Public Utilities customers by the end of 2021.

Along with US Solar and Grand Rapids Public Utilities, other parties involved in the project are Minnesota Power, a subsidiary of investor-owned Allete, the Itasca Clean Energy Team, and the City of Grand Rapids.

US Solar plans to install a mix of pollinator-friendly, low lying, deep-rooted plants throughout the array. This native pollinator habitat supports bees, butterflies, and other local wildlife. This vegetation has also been proven to decrease stormwater runoff and improve the quality of soil, water, and air, US Solar said in a Dec. 10 news release.

A recent article in Public Power Daily detailed how public power utilities across the country are working hard on biodiversity efforts in their communities and one example of these efforts can be found in their support of pollinator populations.

In terms of positive economic benefits, Grand Rapids Public Utilities ratepayers “will receive affordable, reliable, clean energy throughout the 25-year life span of the project,” US Solar noted. The project represents over $6 million in private investment and will support over 25 construction jobs.

Over the course of the project term, it will generate over $465,000 in local tax revenue and land lease payments that will benefit the City of Grand Rapids and its residents.

NYPA board OKs new strategic plan, as well as diversity and inclusion effort

December 11, 2020

by Paul Ciampoli
APPA News Director
December 11, 2020

The New York Power Authority’s (NYPA) Board of Trustees on Dec. 8 approved a new strategic plan, VISION2030, which focuses on five strategic priorities to achieve the clean energy goals of NYPA’s customers and the state.

NYPA said that the strategic priorities to achieve the clean energy goals include NYPA’s intention to:

Partnering with customers

NYPA said that it will partner with its customers and the state to meet their individual energy goals in alignment with the state’s Climate Leadership and Community Protection Act “by providing clean and affordable energy, along with innovative, integrated customer solutions.”

NYPA will help its customers decarbonize by working with them to realize climate leadership projects in energy efficiency, renewables generation, optimized electrification and digitization. There will be a 70% renewable energy supply provided by 2030 in a cost-effective manner.

NYPA will also enable 325 megawatts of distributed and customer-sited solar by 2025 and facilitate 450 MW of storage projects by 2030.

In addition, NYPA noted that the transition to electric vehicles is being accelerated through the installation of charging stations for EV drivers, including chargers built for transit agencies to electrify buses, and through EVolve NY, NYPA’s public fast charging network.

Decarbonization

NYPA said that in order to lead the transition from natural gas to even cleaner electricity, it will be a first mover in developing and demonstrating new low-to-zero carbon technologies and short- and long-duration battery storage.

NYPA will evaluate the economic performance of its gas fleet “and pursue a collaborative approach with policy makers, community members and the private sector as it advocates for market rules and policies and aims to achieve zero-carbon emissions by 2035,” ahead of New York Gov. Andrew Cuomo’s 100% zero-emission electricity by 2040  goal. NYPA also will commit to supplying its customers with carbon-free electricity by 2035.

NYPA recently signed an agreement with environmental justice groups to assess how its natural gas-fired peaker plants, six in New York City and one on Long Island, can be transitioned to utilize clean energy technologies while continuing to meet the unique electricity reliability and resiliency requirements of New York City.

Potential siting of battery storage and hydrogen blending at the plants is under consideration.

Growing transmission to connect renewables

As part of VISION2030, NYPA aims to be the leading transmission developer, owner and operator for New York State.

Building new transmission infrastructure to move distant renewable energy resources is critical to the integration of renewables, such as land-based and off-shore wind and solar, into the bulk power system and achieving the goal of 70% renewable electricity by 2030, it said.

Three major projects to help the state meet its changing transmission needs are currently underway:

Hydropower

NYPA said it will preserve and enhance the value of NYPA’s hydropower assets, which account for approximately 25 percent of New York State’s electricity, as a continued core source of carbon-free power and as a source of flexibility and resilience as the state’s grid evolves.

“Retaining assets in good repair, actively advocating for policy and market rules recognizing hydro benefits to the grid and evaluating alternative contracting or offtake arrangements will help optimize the benefit of hydropower for New Yorkers,” it said.

A 15-year, $1.1 billion life extension and modernization program, first announced in July 2019, is currently underway to significantly extend the operating life of NYPA’s flagship Niagara Power Project, one of the largest hydroelectric projects in the U.S.

Canals

Meanwhile, NYPA said it will continue to reinvigorate the New York State canal system primarily through the Reimagine the Canals initiative announced by Cuomo earlier this year. Simultaneously, NYPA and the Canal Corporation will work to ensure that these investments safeguard the Canal’s role as a driver of economic growth for New York State.

Priorities will be supported by four-year financial plan

The Authority said that the strategic priorities will be supported by NYPA’s recently approved four-year financial plan.

The financial plan includes five foundational pillars:

Board approves diversity, equity and inclusion plan

In other action, the Board of Trustees at its Dec. 9 meeting, approved a Diversity, Equity and Inclusion plan that NYPA said will expand customer energy products and services in underserved and environmental justice communities to help customers lower utility costs and meet their environmental and sustainability goals.

The approvals support development, retention, promotion and engagement of staff through training, career and leadership programs, and support hiring of a workforce that reflects the diverse communities NYPA serves, the Authority said.

NYPA said that through the plan, students of color will have more opportunities to join and advance in the clean energy sector. A recent article in Public Power magazine also outlined NYPA’s diversity, equity and inclusion efforts in further detail.

Also, in order to further meet Cuomo’s goal for procuring at least 30% of products and services from minority and women owned businesses (MWBEs), NYPA will increase funding to its supplier diversity programs – through mentoring, outreach and education initiatives – to drive up participation of MWBEs in the organization’s supply chain.

Additional details on the plan are available here.

Plan for Southeast energy exchange market previewed for regulators in the Carolinas

December 11, 2020

by Paul Ciampoli
APPA News Director
December 11, 2020

A group of Southeast energy companies on Dec. 11 offered a courtesy preview to state utility regulators in North and South Carolina of a filing the group plans to submit to the Federal Energy Regulatory Commission for the creation of a centralized, automated, intra-hour energy exchange called the Southeast Energy Exchange Market (SEEM).

The companies involved intend to file for approval from FERC by the end of the year and to begin operations as early as fourth quarter 2021.

Founding members of SEEM are expected to include:

Participation in SEEM is open to other entities that meet the appropriate requirements. Some utility commitments will take place following FERC approval.

SEEM is a 15-minute energy market, the first of its kind for the region, that will use technology and advanced market systems to automatically match participants with low-cost energy to serve customers across a wide geographic area, according to a news release related to the market.

The new SEEM platform will facilitate sub-hourly, bilateral trading, allowing participants to buy and sell power close to the time the energy is consumed, utilizing available unreserved transmission.  The exchange is an extension of the existing bilateral market.

As part of their evaluation, SEEM members performed a detailed study to assess the costs and benefits of forming such a platform.

An independent third-party consultant estimated the platform’s total benefits to members and their retail customers range from $40 million to $50 million annually in the near-term, potentially growing to $100 million to $150 million annually in later years as more solar and other variable energy resources are added.

After validating the concept of forming this market with the study, SEEM members discussed the potential structure and benefits with numerous energy regulators, policy makers, consumer advocates, non-governmental organizations, energy associations, solar developers and business customers. Feedback helped strengthen the platform agreement by adding more transparency measures, according to the news release.

SEEM members will maintain local control of their generation and transmission assets and participation is voluntary.

Many of the member companies operate within state guidelines and directives, so having full control over their respective generation and transmission resources is an important governing requirement.

“TVA continues to actively work with other utilities on the proposed Southeast Energy Exchange Market, which offers the potential of lower costs and optimized renewable energy resources that both support TVA’s mission of serving the Tennessee Valley,” said Jim Hopson, TVA Public Information Officer.

“The courtesy preview of the upcoming FERC filing shared today is another important milestone in SEEM’s formation,” he said.

“Santee Cooper will take up our required SEEM approval process after FERC has reviewed and made its decision on the proposed platform,” said Mollie Gore, Corporate Communications Director at Santee Cooper. “We do believe there is an opportunity for real, meaningful savings for customers here, plus the ability to better integrate renewables – which is helpful given Santee Cooper’s aggressive plans for new solar over the next decade. It is also very low risk, which is important.”

“We are pleased to be part of this effort to bring benefits to the southeast and our customers,” said Drew Elliot, Manager, Government Affairs at ElectriCities. “SEEM will maximize the investment in the transmission system and should allow better integration of renewables in the region. We see this as a no-regrets strategy to lower costs for customers due to the relatively quick set-up and low costs – both start-up and ongoing – compared to other wholesale market concepts.”

In a recent blog, Elise Caplan, Director, Electric Market Analysis, at the American Public Power Association, notes that the Southeast is the largest geographic area without some form of a centrally dispatched energy market.

“It is therefore no surprise that various entities are giving attention to the development of a coordinated energy market in the Southeast,” she wrote, noting the significant benefits that can be achieved.

While APPA does not have a position on whether some form of organized energy market should be adopted in the Southeast, Caplan said that there are some important lessons to be learned from other regions, which she details in her blog.