NERC Summer Assessment Sees ‘Elevated’ Reliability Risks In The West, MISO

May 21, 2022

by Peter Maloney
APPA News
May 21, 2022

Parts of western North America face an “elevated or high risk” of energy shortfalls this summer because of predicted above-normal temperatures and drought conditions and electric reliability in the Midcontinent ISO (MISO) is at “high risk” because of capacity shortfalls, according to the 2022 Summer Reliability Assessment released by the North American Electric Reliability Corp. (NERC).

The expected continuation of western drought conditions poses several threats to electric reliability, NERC said. Below normal snowpack can result in lower-than-average output from hydro generation in a region that depends on energy transfers to balance electric supply and demand.

In particular, the California-Mexico (CA/MX) assessment area and the Southwest Reserve Sharing Group (SRSG), depend on “substantial electricity imports” to meet demand on hot summer evenings and at times when wind and solar resources are low.

Texas, the Southwest Power Pool (SPP), and Saskatchewan, in particular, are at elevated risk of energy emergencies during extreme conditions, the NERC report said, pointing out that in addition to putting a strain on electrical equipment, high temperatures also contribute to high demand.

The report also noted that continuing drought conditions over the Missouri River Basin could adversely affect SPP thermal generators that use the Missouri River for cooling.

Drought conditions can also exacerbate wildfires, NERC said, noting that government agencies are warning of the potential for above-normal wildfire risk across much of Canada, the U.S. South Central states, and Northern California. Wildfires can affect the reliability of transmission lines and the smoke from wildfires can cause diminished output from solar power resources, NERC said.

NERC also warned that the risk of unexpected tripping of solar photovoltaic resources during grid disturbances continues to be a reliability concern. In May and June of 2021, Texas experienced widespread solar loss events like those previously observed in California and four additional solar loss events occurred between June and August 2021 in California. During these events, widespread loss of solar resources was coupled with the loss of synchronous generation, unintended interactions with remedial action schemes, and some tripping of distributed energy resources, NERC said.

NERC also singled out the risks facing MISO, saying the region is at “high risk” because it faces capacity shortfalls in its north and central areas during both normal and extreme conditions because of generator retirements and increased demand.

Load serving entities in four of 11 MISO zones entered the annual planning resource auction (PRA) in April 2022 without enough owned or contracted capacity to cover their requirements, and peak demand projections have increased by 1.7 percent since last summer due in part to a return to normal demand patterns that were altered during the pandemic.

Even more impactful, NERC said, is the drop in capacity in the most recent PRA. MISO will have 3,200 megawatts (MW), representing 2.3 percent, less generation capacity than in the summer of 2021.

In addition, at the start of the summer, MISO will be without a transmission line connecting its northern and southern areas as restoration continues on a four-mile section of a 500-kilovolt (kV) transmission line that was damaged by a tornado in December 2021.

MISO system operators “are more likely to need operating mitigations, such as load modifying resources or non-firm imports, to meet reserve requirements under normal peak summer conditions,” NERC said. If there are extreme temperatures, higher generation outages, or low wind conditions MISO’s north and central areas will be exposed to “higher risk of temporary operator-initiated load shedding to maintain system reliability,” the NERC report said.

Supply chain issues and challenges commissioning new resources are also a concern in areas where those resources are needed for reliability during summer peak periods, NERC said. The report identified CA/MX and SRSG as areas that have “sizeable amounts of generation capacity in development and included in their resource projections for summer.”

In addition, coal-fired generators are having difficulty obtaining fuel and non-fuel consumables as supply chains are stressed, NERC said.

While no specific reliability impacts are foreseen, coal stockpiles at power plants are relatively low compared with historical levels, and some operators report challenges in arranging replenishment due to mine closures, rail shipping limitations, and increased coal exports, the report said.

Outside of MISO and the Western Interconnection, all other regions have sufficient resources to manage normal summer peak demand and are at low risk of energy shortfalls from more extreme demand or generation outage conditions, the report said.

The entire electric system, however, faces cyber security threats from Russia and other potential actors amid heightened geopolitical tensions in addition to ongoing cyber risks. “Russian attackers may be planning or attempting malicious cyber activity to gain access and disrupt the electric grid in North America in retaliation for support to Ukraine,” the NERC report said.

The Electricity Infrastructure Sharing and Analysis Center (E-ISAC) continues to exchange information on cyber threats with members and post communications and guidance from government partners.

E-ISAC members are “encouraged to check in regularly to receive updates and to actively share information regarding threats and other malicious activities with the E-ISAC to enable broader communication with other sector participants and government partners,” NERC said in its summer assessment.

Minnesota’s Brainerd Public Utilities Details Reliability Efforts, Cryptocurrency Response

May 10, 2022

by Paul Ciampoli
APPA News Director
May 10, 2022

Scott Magnuson, Superintendent for Minnesota public power utility Brainerd Public Utilities, recently detailed the steps that the utility has taken to maintain high levels of reliability and safety and explained how Brainerd Public Utilities is responding to cryptocurrency data mining operations.

“In the last several years, we have put a lot of effort into vegetation management and system protection. Making sure that when we do have an event, the damage is very limited, and crews are able to dispatch to the problem very efficiently, do some switching and get most, if not all, meters back on right away,” Magnuson noted in a Q&A with Public Power Current.

Brainerd Public Utilities has received a Reliable Public Power Provider designation from the American Public Power Association (APPA).

“Our crews, water, wastewater and hydro, along with the electric crew take great pride in our safety record,” he noted.

“We use the services of our state association, the Minnesota Municipal Utilities Association (MMUA), for our safety training for all employees, and also the JT&S for the electric crews. I am currently a MMUA board member, and my Operations Manager is on the JT&S committee, so we have direct input to what is needed for safety training, and the MMUA does an excellent job at it.”

Magnuson also provided details on cryptocurrency data mining operations being set up in the region served by Brainerd Public Utilities and detailed how Brainerd Public Utilities is responding to these operations.

“This is definitely a new one for us,” he noted.

Back in 2006, the utility started engineering a substation and feeder upgrade project. “At the time, we served a papermill in town, and population was supposed to triple by 2025. So, we decided on three 47 MVA transformers for the substation.”

However, in 2014, the papermill shut down and the population growth did not happen. “We ended up with 141 MW worth of transformers and a summer peak of 43 MW. That meant we had a lot of extra capacity. Word got out, and we were contacted by some parties interested in setting up crypto mining operations in Brainerd,” he said.

“We are currently working with one group for a 50 MW load, and a local company for a 20 MW load.  Contracts are signed, and both parties are procuring their equipment. One item both parties agreed to was they would be responsible for any upgrades, or new lines, that needed to be built for their loads, which we have completed,” Magnuson noted. 

He also addressed the topic of supply chain issues.

“We have not yet been impacted too bad by this dilemma,” he said. “Some equipment has been delayed a couple weeks, but we have been able to continue with our projects. Transformers are another issue; for now, we have a decent inventory, but we think single phase transformers may become an issue for us in 2023.  We have not seen the influx of home EV chargers yet, but we know it is coming and are making plans.”

Magnuson said his long-term goal for Brainerd Public Utilities “is to continue to move the utility forward in an everchanging environment, and provide our customers with safe, reliable and environmentally friendly utility services. Our team takes great pride in what they do, from the staff in the office, to the guys in the field, and everyone in between. We have really formed a good bond, and my goal is to keep it that way,” he said.

“Things are changing fast in all aspects of the utility business, from state and federal mandates, to technology, to customers, and what they expect from us. We need to stay on top of the changing landscape, and make sure we are giving the customers what they demand, while maintaining an affordable product, and protecting Mother Earth.”

Additional information about the utility is available here.

Nebraska Village Earns Award For Electric Distribution System Upgrade

May 4, 2022

by Paul Ciampoli
APPA News Director
May 4, 2022

The Village of Shickley, Neb., recently received a Project of the Year award from NMPP Energy for the village’s electric distribution system upgrade.

NMPP Energy presented its Project of the Year Awards to four communities at its annual conference in Lincoln, Neb., in late March.

The awards are presented annually to NMPP Energy communities to recognize projects or programs that create a more cohesive community, whether it was a project created for the entire community or one that makes it easier for city staff and employees to serve their customers. The award winners received $200 to be used for a community project of their choice.

The Village of Shickley’s project consisted of upgrading four blocks of the village’s 1950s-era electric distribution infrastructure to today’s modern standards. The project was completed in the summer of 2021.

“A safe and reliable electrical distribution system is very important to the Village of Shickley,” said Bart Brinkman, a village board member.

The village collaborated with Great Plains Power and local business Frieden Electric Company on the project.

The upgrade included installing a significantly higher voltage three-phase distribution system. Several secondary overhead wires were rerouted to clear buildings and new transformers, poles and other equipment installed that will improve system reliability and minimize maintenance for many years.

Nebraska-based NMPP Energy is a coalition of four organizations serving nearly 200 Midwest and Rocky Mountain communities.

NMPP Energy organizations include Nebraska Municipal Power Pool, Municipal Energy Agency of Nebraska, National Public Gas Agency and Public Alliance for Community Energy.

Washington State Governor Tours Seattle City Light Microgrid Site

May 3, 2022

by Paul Ciampoli
APPA News Director
May 3, 2022

Washington State Gov. Jay Inslee and Seattle Mayor Bruce Harrell recently toured Seattle City Light’s recently completed Miller Community Center Microgrid.

They were guided on the tour by Seattle City Light Energy Innovation and Resources Officer Emeka Anywanwu. 

The tour included a stop inside the center to discuss its importance to the neighborhood and view the artwork installed as part of the project. The group then moved outdoors to the secured area that houses the microgrid control system and battery storage for an in-depth look at the technology behind the project.

The project is a collaborative effort between Seattle City Light and Seattle Parks and Recreation. It was funded in part by a $1.5 million Clean Energy Fund grant from the Washington State Department of Commerce.

The Miller Community Center microgrid brings higher power reliability to the surrounding community by keeping the facility energized during a power outage. It also helps to meet the City of Seattle’s goals by reducing greenhouse gas emissions through renewable (solar) energy and enhances the resiliency of Seattle’s electricity grid.

The project includes the installation of 132 solar panels on the Miller Community Center’s roof, which send energy to a battery storage system. This system provides backup power storage for the community center during emergency events, such as a windstorm or unplanned power outage.

When the electric grid is down, the microgrid generates and supplies power to the community center to keep the center’s services and communications operational. Other energy conservation measures included in the project were improved LED lighting, sensors, and an energy-efficient boiler.

The microgrid’s battery storage system has a total capacity of 200 kilowatts/ 800 kilowatt hours to provide at least 16 hours of backup power for 100% of the loads at Miller Community Center when fully charged. City Light expects the batteries to provide at least 24 hours of power during an outage. Additional power can be captured as the panels will continue generating energy when the sun is up.

Included in the project was a new interior art piece installed through a partnership with the Seattle Office of Arts & Culture and City Light’s 1% for Art Fund. Artist Julia Harrison commissioned the piece with input from the Miller Park community. The artwork combines and celebrates solar energy and community.

Groups Want Federal Aviation Administration To Provide Guidance On Drone Use

March 29, 2022

by Paul Ciampoli
APPA News Director
March 29, 2022

The Federal Aviation Administration (FAA), which is part of the U.S. Department of Transportation, should provide guidance to the electric utility sector tied to the use of drones, the American Public Power Association (APPA), Edison Electric Institute (EEI) and the National Rural Electric Cooperative Association (NRECA) said in a recent letter to Secretary of Transportation Peter Buttigieg.

“As the owners and operators of critical infrastructure, electric utilities operate and maintain the electric grid and are working to build out the additional infrastructure needed to meet our collective clean energy goals,” the groups said in their March 17 letter to Buttigieg.

“Both manned and unmanned aircraft systems (drones) play a critical role in these efforts, helping electric companies to inspect transmission infrastructure safely and efficiently. In addition, drones play a growing role in our efforts to reduce wildfire risks and can help electric utilities restore power as safely and as quickly as possible following major storms and hurricanes,” the letter noted.

In April 2019, APPA, EEI, and NRECA submitted joint comments on the Safe and Secure Operations of Small Unmanned Aircraft Systems Advanced Notice of Proposed Rulemaking issued by the FAA. Those comments advocated for an additional rulemaking that would allow the integration of drones into the nation’s airspace, including for utility operations beyond visual line of sight (BVLOS).

The recent joint letter builds off those comments, as well as a recent FAA-convened Aviation Rulemaking Committee for BVLOS operations, which includes electric utilities.

In early March, the Aviation Rulemaking Committee concluded nine months of discussion, deliberation, and consensus building and provided the FAA with its final report and recommendations for performance-based regulatory requirements to normalize safe, scalable, economically viable, and environmentally advantageous BVLOS operations. 

In their letter, the trade groups said that among the most critical recommendations provided by the Aviation Rulemaking Committee are minor changes to right-of- way rules for low altitude operations, particularly shielded operations under 400 feet.

Under the recommended changes, drones being operated by electric companies within 100 feet of their electric lines would be given right-of-way over all other manned aircraft. “This change recognizes the importance of critical infrastructure inspections and would allow electric utilities to perform these inspections in a more efficient manner, while also recognizing the low likelihood of manned aircraft operating in the same airspace. This recommended change does not absolve electric utilities operating drones of their duty to detect and avoid other aircrafts, but rather gives them the priority in the airspace while performing inspections of their critical infrastructure in their own rights-of-way,” APPA, EEI and NRECA said.

The Committee also recommended providing a path forward for extended visual line of sight operations (EVLOS), where a visual observer other than the remote pilot ensures the airspace is clear of hazards.

Currently, the remote pilot must be able to personally see the drone through the entire flight. Adopting EVLOS operations would provide an alternative route for linear infrastructure inspections by using visual observers to ensure the airspace remains clear. This option, which already is being employed by some electric companies operating under waivers, presents lower barriers to entry than BVLOS operations and requires visual observers and the remote pilot to remain in constant communication regarding hazards, ensuring a safe operating environment.

“Providing a regulatory pathway for the expanded use of drones BVLOS is a priority for us and our members,” APPA, EEI and NRECA said in encouraging the FAA to prioritize a rulemaking that codifies the Aviation Rulemaking Committee recommendation.

The groups also also encouraged the FAA to issue interim guidance on BVLOS operations to allow electric utilities to operate BVLOS and EVLOS to perform critical infrastructure inspections now “while we collectively work toward the promulgation of a final rule.”

Public Power Utilities Recognized By APPA For Reliable And Safe Electric Service

March 28, 2022

by Paul Ciampoli
APPA News Director
March 28, 2022

Fifty-four of the nation’s more than 2,000 public power utilities earned the Reliable Public Power Provider (RP3) designation from the American Public Power Association (APPA) for providing reliable and safe electric service.

The RP3 designation, which lasts for three years, recognizes public power utilities that demonstrate proficiency in four key disciplines: reliability, safety, workforce development and system improvement. Criteria include sound business practices and a utility-wide commitment to safe and reliable delivery of electricity.

This year, 54 utilities earned the designation and, in total, 275 of the more than 2,000 public power utilities nation-wide hold the RP3 designation.

“Running a reliable and safe utility has never been as important as it is today,” said Aaron Haderle, Chair of APPA’s RP3 Review Panel and Manager of Transmission and Distribution Operations at ‎Kissimmee Utility Authority, Florida, in a statement. “Utilities that have earned this designation have demonstrated commitment to serving their communities and constantly looking to improve.”  

This is the seventeenth year that RP3 recognition has been offered.

A full list of designees is available at www.PublicPower.org.

Public Power Lineworkers Earn Trophies At APPA National Rodeo

March 28, 2022

by Paul Ciampoli
APPA News Director
March 28, 2022

Twelve teams and 14 individuals won awards at the American Public Power Association’s (APPA) twentieth annual Public Power Lineworkers Rodeo, held March 25-26, in Austin, Texas.

Fifty-five teams and 96 apprentices from not-for-profit, community-owned electric utilities across the nation participated. The rodeo is a series of competitive events demonstrating lineworker skills and safe work practices.

“I don’t think you’ll find anyone prouder of their craft than lineworkers,” said Alex Hofmann, vice president of technical and operations services at APPA. “Seeing them out there demonstrating their skill with a focus on safety is awesome. The rodeo promotes comradery and helps support mutual aid,” he added.

The awards honor lineworkers’ expertise, and the events are judged based upon safety, work practices, neatness, ability, equipment handling, and timely event completion.

All safety rules established by APPA’s Safety Manual were observed during events.

There are two levels of competition within the rodeo — journeyman and apprentice. The journeyman teams consist of three members — two climbers and a ground person — and can include an optional alternate.

Journeymen have years of experience within the electric utility trade, while an apprentice lineworker is newer to the craft.

2022 PUBLIC POWER LINEWORKERS RODEO WINNERS

Apprentice – Overall

1st – Bynjamin Cropley, SMUD, California

2nd – Thomas Steverson, City of Tallahassee Electric Utility, Florida

3rd – Matthew Coakley, OUC, Florida

4th – Drew Wingington, SMUD, California

5th – Dustin Pearce, SMUD, California

Apprentice – 90-Degree Crossarm Relocation

1st – Evan Englert, OUC, Florida

2nd – Carlton Blake Paul, Lafayette Utilities System, Louisiana

3rd – Ethan Shellabarger, Kissimmee Utility Authority, Florida

Apprentice – Hurtman Rescue

1st – Carlton Blake Paul, Lafayette Utilities System, Louisiana

2nd – Matthew Barlow, Roseville Electric, California

3rd – Seth Kelley, Lafayette Utilities System, Louisiana

Apprentice – Double Dead-End Bell Change-Out

1st – Zan Habetz, Lafayette Utilities System, Louisiana

2nd – Karl Glass, Kissimmee Utility Authority, Florida

3rd – Jordan Reddick, City of Tallahassee Electric Utility, Florida

Apprentice – Pole Top Pin Insulator Change-Out

1st – Carlton Blake Paul, Lafayette Utilities System, Louisiana

2nd – Zan Habetz, Lafayette Utilities System, Louisiana

3rd – Jordan Reddick, City of Tallahassee Electric Utility, Florida

Apprentice – Written Test

1st – Bynjamin Cropley, SMUD, California

2nd – Jack Schintz, Shakopee Public Utilities Commission, Minnesota

3rd – Thomas Steverson, City of Tallahassee Electric Utility, Florida

Journeyman – Overall

1st – Nashville Electric Service, Tennessee: Adam Harris, Josh Jones, Derek Pennington, and Mike Shannon

2nd – Turlock Irrigation District, California: Raphael Battig, Josh Klikna, and Dustin Krieger

3rd – Colorado Springs Utilities: Tyler Dimenza, John Rombeck, Mario Sanchez, and Cody Strong

4th – Santee Cooper, South Carolina: Austin Griswold, Dow Hardee, Joe Sawyer, and Chad Williams

5th – City of Tallahassee Electric Utility, Florida: Randall Crum, Josh Helton, Justin Johnson, and Coy Judd

Journeyman – 4kV Crossarm Change-Out

1st – Roseville Electric, California: Kyle Giesser, Phillip Hartnett, Robert Myles, and Tom Pontes

2nd – Santee Cooper, South Carolina: Austin Griswold, Dow Hardee, Joe Sawyer, and Chad Williams

3rd – JEA, Florida: Chance Jones, Caleb Macabitas, Cody Stokes, and Adam Strickland

Journeyman – Obstacle Course

1st – Nashville Electric Service, Tennessee: Tommy Barksdale, Durwood Burks, Daniel Pease, and Cody Roberts

2nd – Santee Cooper, South Carolina: Jamie Anderson, Drew Boatwright, Josh Sawyer, and Charlie Thompkins

3rd – SMUD, California: Tanner Barnes, Justin Estes, and Colt Hodgkin

Journeyman – Hurtman Rescue

1st – JEA, Florida: Chance Jones, Caleb Macabitas, Cody Stokes, and Adam Strickland

2nd – Ponca City Energy, Oklahoma: Tomas Alvarez, Chris Crain, and Cory Waite

3rd – Roseville Electric, California: Kyle Giesser, Phillip Hartnett, Robert Myles, and Tom Pontes

Journeyman – Suspension Insulator Change-Out

1st – Santee Cooper, South Carolina: Jamie Anderson, Drew Boatwright, Josh Sawyer, and Charlie Thompkins

2nd – City of Tallahassee Electric Utility, Florida: Randall Crum, Josh Helton, Justin Johnson, and Coy Judd

3rd – JEA, Florida: Dan Baye, Kelvin Jasper, Gregory Scott Johnson, and Franklee Taylor

Journeyman – Transformer Banking

1st – Santee Cooper, South Carolina: Austin Griswold, Dow Hardee, Joe Sawyer, and Chad Williams

2nd – Nashville Electric Service, Tennessee: Tommy Barksdale, Durwood Burks, Daniel Pease, and Cody Roberts

3rd – City of Tallahassee Electric Utility, Florida: Randall Crum, Josh Helton, Justin Johnson, and Coy Judd

JEA Recognized As Outstanding Utility By Florida Urban Forestry Council

March 22, 2022

by Paul Ciampoli
APPA News Director
March 22, 2022

The Florida Urban Forestry Council (FUFC) recently recognized Florida public power utility JEA as the state’s 2021 outstanding utility for being a champion in protecting and advancing the urban forest industry in Florida.

The awards program recognizes achievements of organizations and individuals in their efforts to manage urban forests in their communities, JEA noted.

FUFC also recognized City of Jacksonville Urban Forester Dalton Smith as Outstanding Professional of 2021 and the Jacksonville Equestrian Center for Outstanding Project.

The Outstanding Utility Award recognizes JEA’s commitment to “a sustainable and resilient tree canopy” as part of its mission to build a better community.

JEA’s service territory covers more than 918 square miles which incorporates 7,000 miles of electrical transmission and distribution lines. JEA’s professional foresters, vegetative specialists, certified arborists and engineers work to build utility infrastructure compatible with a sustainable and resilient urban tree canopy.

A few of the best practices that earned JEA’s recognition by FUFC include:

• Vegetative Management team of professional foresters and arborists: JEA’s vegetative management team includes degreed foresters and ISA certified arborists. International Society of Arboriculture Arborist certification also is a condition of employment for team members.
• Storm Preparation and Response: JEA has a “Restoration 1-2-3” rapid restoration program that allows the utility to assess and repair our facilities and restore power across our territory as quickly and safely as possible.
• Communication and Public Education: Communication and tree-based public education is at the root of JEA’s success with vegetative management. JEA has established a JEA TREECARE customer service line, accessible by phone or online. Tree-related inquiries or issues are separated from the utility’s general customer care communication channels and are promptly referred to a utility forester or arborist.
• Safety: Utility arboriculture demands particular emphasis on safety. The occupation combines the dangers of working in close proximity to high-voltage and other utility hazards with the high-risks of tree work.
• JEA Ambassador Program: All JEA foresters and arborists are enrolled in JEA’s Ambassador Program in which they incorporate tree-related utility issues and messaging into community engagement activities. 
• Recognition by national Arbor Day Foundation: JEA learned last month that it has been recognized as a Tree-Line-USA utility for its quality tree care, training, and public education related to utility arboricultural practices. This is the eleventh consecutive year JEA has received this recognition from the Arbor Day Foundation.

Missouri’s Kirkwood Electric Outage Management System Highlighted As Key Project

March 4, 2022

by Paul Ciampoli
APPA News Director
March 4, 2022

Missouri public power utility Kirkwood Electric has a lot on its plate these days when it comes to projects that will benefit the utility and its customers including an outage management system, said Mark Petty, Electric Director for Kirkwood Electric, in a recent interview with Public Power Current.

Petty, who has been in his current position at Kirkwood Electric for 16 years, said that the outage management system involves “putting all the pieces together,” including Supervisory Control and Data Acquisition (SCADA) and advanced metering infrastructure (AMI) that will detail where outages are occurring in real time.

“We want to combine that with GIS and have a system operator dashboard that gives us this ability to have an operations center” that will provide analytics to help with the dispatching of resources and crews, Petty said.

The outage management system project is a “big deal for us,” he said.

Petty underscored the importance of having a load flow circuit analysis program. Utilities need to have a strong handle on load flows, he said. Petty noted, for example, that with the growth of electric vehicles “and people charging at home,” utilities will see a change in load profiles.

Petty also noted that the utility is taking a closer look at energy storage.

Kirkwood Electric is going to try and take some lessons learned from a storage project at City Utilities of Springfield, Mo., a fellow public power utility.

“We have a one-megawatt project that we’re talking about doing at a substation,” he said. The utility wants to “program the inverter and take a look at how things are going to perform because all we really” have to do is “get a trailer full of batteries and put that thing in there.” The utility plans to have the storage project in its capital program and “over the next couple of years we’ll take a look at when we can get that built and put in.”

In the area of financing, the utility plans to issue a bond in April. “This is a great time to borrow money,” Petty said. “I think that for utilities that have been gauging whether or not this is a good time to do some modernization of your distribution systems and reduce losses and improve reliability…this is a good time to think about borrowing some money” with the low interest rate environment.

Proceeds from the bond issuance are expected to be $15 million over 20 years and will be used for distribution system improvements including overhauling a substation, as well as the outage management system.

Petty also noted that Kirkwood Electric has a workforce plan because the utility wants to keep an eye on staffing and creating positions such as the system operator.

The utility has been “looking at this whole idea about COVID causing a lot of resignations and trying to continue to be a competitive employer of choice,” Petty said.

As an offshoot of this effort, Kirkwood Electric is moving to a defined benefits plan that Petty thinks will attract some people to work at the utility.

Petty also discussed what public power utilities can do to take a more modern approach to managing reliability.

“You’ve got to be a smart utility,” he said. “You’ve got to have that AMI system that gives you the information real time on your outages and then helps you to fold that in for your analytics later on. You’ve got to have a GIS system.”

Moreover, utilities need to “train your people to be able to use the analytics or the information. You get to those things — I think today that means you’ve been able to pivot from being reactive to starting to be analytical and it certainly helps during outages.”

Kirkwood Electric has been designated as a Reliable Public Power (RP3) provider by the American Public Power Association (APPA).

The RP3 program recognizes utilities that demonstrate high proficiency in reliability, safety, workforce development, and system improvement.

Meanwhile, Petty was asked to detail what he sees as the biggest challenges facing the electricity sector over the next five to 10 years and how Kirkwood Electric is preparing to meet these challenges.

He said that the “the regulatory game is always one of those things that can throw you a loop or two, depending on the way the customers are thinking or the way the legislators are thinking. You always have these things that can come from left field from the regulatory game — you always have to be involved and at the table so that you’re not on the menu with that.”

In addition, energy markets are also a challenge “and they continually evolve. Some of their rules for capacity or for the way that they’re dealing with some market pricing are continuing to evolve,” he noted.

Kirkwood Electric is a market participant in the Midcontinent Independent System Operator, with Petty noting that “We have good representation at the table through our joint action agency.”

Regulatory and market issues “are probably the biggest challenges,” he said.

Petty said that regardless of the particular challenge that Kirkwood Electric may face, APPA and the Missouri Public Utility Alliance are valuable partners for the utility in terms of helping to navigate those challenges.

Additional information about the utility is available here.

Paper Outlines Approaches To Valuing Resilience

February 28, 2022

by Peter Maloney
APPA News
February 28, 2022

A new paper by the National Association of Regulatory Utility Commissioners (NARUC) the National Association of State Energy Officials (NASEO), and Converge Strategies that details approaches to estimating the value of resilience.

The paper, Valuing Resilience for Microgrids: Challenges, Innovative Approaches, and State Needs, summarizes new approaches to valuing resilience that can be used by utilities and regulators and applied to proposed investments in microgrids and other resources.

While reliability has been measured for decades using widely accepted metrics, resilience, utilities, policymakers, and regulators have not agreed upon a universal definition of resilience.

In 2013, NARUC proposed a definition of resilience for state utility regulators and the White House released a definition focusing on critical infrastructure protection.

In 2018, the Federal Energy Regulatory Commission put forward a definition. And in 2019 the National Renewable Energy Laboratory provided a definition that highlighted the importance of multi-stakeholder planning. To fill in the gaps, state regulators have also stepped in to provide their own definitions of resilience.

Although the definitions overlap, they differ in scope and specificity even though resilience has emerged as an important concept as utilities invest billions of dollars to strengthen generation, transmission and distribution infrastructure in the face of high-impact, low-frequency events, including extreme cold, droughts, heat waves, and cyber and physical attacks, the paper’s authors said.

“Developing tools and methods to accurately assess the costs and benefits of resilience investments is a critical step toward the goal of mitigating the impacts of outages on customers and society,” the paper said.

Traditionally, utility expenditures have been guided by “imprecise approaches that fail to account for the impacts of outages or anticipate” high impact low frequency events, the paper said. However, new approaches to analyzing the costs and benefits of resilience investments, such as microgrids, can enable more efficient use of ratepayer and taxpayer resources to deliver better outcomes, according to the paper.

In an effort to share practices and find common ground, state energy policymakers and regulators joined the NASEO-NARUC Microgrids State Working Group to explore benefits and costs of microgrids, identify challenges and barriers to microgrid development, and to share successful approaches.

And while the NARUC-NASEO paper was written with Microgrids State Working Group members in mind, the authors said it may be useful to utilities, emergency management agencies, community development organizations, municipal governments, and other stakeholders.

Specifically, the NARUC-NASEO paper summarized five new and pending resilience valuation approaches developed by Lawrence Berkeley National Laboratory; the Edison Electric Institute and Commonwealth Edison; the National Renewable Energy Laboratory; Sandia National Laboratories and the University of Buffalo; and the Federal Emergency Management Agency.

NARUC and NASEO said they would continue “to promote sharing of knowledge across states and innovative approaches to common challenges in forums such as the NASEO-NARUC Microgrids State Working Group.”

“Future research may provide updates on resilient microgrid approaches in progress and on lessons learned from initial deployments,” the authors said.