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APPA, Other Groups Urge Lawmakers to Appropriate $1 Billion for Distribution Transformers

November 21, 2022

by Paul Ciampoli
APPA News Director
November 21, 2022

Lawmakers should appropriate $1 billion this year for implementation of the Defense Production Act (DPA) to specifically address the supply chain crisis for electric distribution transformers, the American Public Power Association (APPA), the National Rural Electric Cooperative Association (NRECA), Edison Electric Institute (EEI), National Association of Home Builders (NAHB), Leading Builders of America (LBA), and Associated General Contractors of America (AGC), said in a Nov. 18 letter.

The letter was sent to Sen. Patrick Leahy, D-Vt., Chairman of the Senate Committee on Appropriations, Sen. Richard Shelby, R-Ala., Vice-Chairman of the Senate Committee on Appropriations, Rep. Rosa DeLauro, D-Conn., Chairwoman of the House Committee on Appropriations, and Rep. Kay Granger, R-Texas, Ranking Member, House Committee on Appropriations.

In June 2022, President Biden announced that he was invoking the DPA to accelerate the domestic production of certain clean energy technologies, which included grid components and distribution transformers. Under DPA authorities, DOE could rapidly support domestic manufacturing capacity through purchases of equipment or materials, financial assistance in capital to expand production lines, or making subsidy payments for the supply of high-cost materials. For DOE to utilize DPA authorities, it must receive a direct appropriation from Congress.

“Throughout 2022, the electric sector and representatives from residential and commercial building sectors have been calling attention to the unprecedented supply chain challenges both industries have been facing in procuring equipment used to maintain and grow the electric grid,” wrote APPA President and CEO Joy Ditto and leaders of the other groups.

“Specifically, electric utilities continue to have significant problems in procuring basic equipment – particularly distribution transformers – needed to operate the grid, provide reliable electric service, and restore power following severe storms and natural disasters. In housing construction, this is further exacerbating their ability to address the housing affordability crisis facing our nation.”

Due to the threats to reliability, the Electricity Subsector Coordinating Council (ESCC) established an industry “Tiger Team” to examine the supply chain crisis, the letter noted.

“Through this process, the electric industry has been able to report and confirm what individual utilities and the housing industry have been saying since late last year: that construction and electrification projects are now being deferred or canceled and that they are concerned about their ability to adequately respond to major storms due to depleted stockpiles,” the groups said.

The Tiger Team ultimately found that current transformer production is not meeting demand and that demand is expected to continue to increase in the coming years. Between 2020 and 2022, average lead times to procure distribution transformers across all segments of the electric industry and voltage classes rose 443 percent. The same orders that previously took two to four months to fill are now taking on average over a year. “This is a serious threat to reliability,” the groups said.

Among initial considerations for the federal government to address are labor shortages and material availability, which were identified as the most immediate short-term barrier to more manufacturing output. Additional long-term recommendations include building manufacturing capacity to support long-term demand and investing in domestic production of grain-oriented electrical steel (GOES), a key transformer component, the letter noted.

Usage of DPA authorities to address labor and material shortages, focused specifically on the production of distribution transformers, “is the most immediate way we can address this growing crisis. The upcoming work period is a critical opportunity to appropriate funds needed to help address these problems before the end of this year,” the letter said.

APPA is asking its members to reach out to their congressional delegation to support this appropriation request.

APPA Survey of Members Shows Distribution Transformer Production Not Meeting Demand and Shortages Pose an Urgent Threat

An APPA survey of its members shows that production of distribution transformers is not meeting current demand, “as evident in the significantly growing lead times, lack of stock in yards and the high number of project deferrals,” APPA said. Utilities are reporting low or near zero emergency stock, often used to recover post-disaster or do infrastructure maintenance. Electric reliability is under severe threat with demand increasing, lead times growing, and stockyards emptying.

APPA’s Joy Ditto Voices Concerns About Potential Railroad Strike in Letter to President Biden

November 21, 2022

by Paul Ciampoli
APPA News Director
November 21, 2022

In a Nov. 18 letter to President Biden, Joy Ditto, President and CEO of the American Public Power Association (APPA), voiced concerns about the potential for a strike by railroad workers, saying that a work stoppage would “seriously threaten” the reliability of electric grids in public power communities.

“I write to add the American Public Power Association’s (APPA) voice to the chorus of great concern being expressed regarding the ongoing railroad labor negotiations and the potential for a strike,” wrote Ditto.

“Public power utilities rely on railroads to receive fuel, chemicals, and other equipment necessary to provide their communities with essential electric service. A work stoppage would seriously threaten the reliability of the electric grids in their communities, as well as further pressure already strained supply chains and increase prices at a time of already high inflation,” she said.

For months, APPA has been calling attention to the enormous challenges our members are facing in procuring basic equipment to provide electric service and to restore service following storms and natural disasters.

“Distribution transformers pose a particularly acute problem; our members are now facing lead times of more than a year for delivery and, in many cases, are being limited in the number they are allowed to purchase,” wrote Ditto.

Transformers are also necessary to extend electric service to new homes, businesses, and communities, she noted. “Prices have also gone up precipitously. As not-for-profit electric utilities, increased equipment costs are shouldered directly by our customers. A rail work stoppage on top of these already formidable supply chain challenges would be calamitous.”

Ditto said APPA appreciates the hard work the Biden Administration put into averting a strike in September “and we urge all parties to redouble efforts to avoid a strike now.”

Columbus, Ohio, Unveils First Solar-Powered Microgrid

November 16, 2022

by Paul Ciampoli
APPA News Director
November 16, 2022

The City of Columbus, Ohio’s Department of Public Utilities recently put into operation its first-ever solar-powered microgrid.

The purpose of the microgrid, which is located at the Tussing Water Booster Station, is to serve as a backup power source to the main power grid.

If grid power is lost or disrupted, the microgrid will enter “island mode” and utilize the onsite solar and battery energy storage system to operate one of the three booster pumps at the station, ensuring residents continue to receive safe and clean drinking water, the city noted in a Nov. 3 news release.

The microgrid consists of two main components — a 100-kilowatt solar panel system and the battery energy storage system. The solar energy can be stored in the batteries or converted for use in island mode to power the pump station. The battery system has a power rating of 442 kW.

The water towers can supply drinking water for 1-2 days without electricity, but the microgrid is designed to extend its ability to supply water during an outage for a minimum of six hours with the potential to extend it for many days using energy supplied by the solar panels.

“This microgrid will support residents continuing to receive safe, clean drinking water during times of climate crisis and emergency situations,” said Kristen Atha, director of the Department of Public Utilities.

In an interview with Public Power Current, Phil Schmidt, project manager for the Division of Water Tussing Water Booster Station Solar Microgrid, detailed why the water booster station was chosen for the project’s location.

He noted that available space on the site was a key driver for the microgrid’s site selection. “About a decade ago we built a second water tower and as part of that process we acquired some additional land,” Schmidt said. “We had some green space available, and I think that was just the big driver for this project…we needed the footprint to be able to put these solar panels on the property, so this site was a good candidate.”

The city’s climate action plan commits Columbus to achieve carbon neutrality by 2050. One of the actions under the plan aims to evaluate microgrids and storage projects, with targets to complete a prioritization study by 2025 and implement five microgrid pilot projects by 2030. 

Erin Beck, Assistant Director in the city’s Sustainable Columbus office, told Public Power Current that the climate action plan “is really meant to be our roadmap” for how the city will achieve carbon neutrality by 2050 “and how we’re imparting equity and environmental justice to our residents here in Columbus.”

Beck noted that “another key goal in our climate action plan is we’re looking for at least a 45 percent reduction in emissions by 2030.” The plan includes five sections, 13 strategies and 32 distinct actions.

The microgrid project has been in development since 2019 and was supported through a funding initiative and partnership with investor-owned AEP Ohio.

When asked about where things stand with planning for the other microgrid pilot projects, Beck said, “From the wider community perspective, the goal is to do five by 2030 and that is across our entire community, so that could be either with” the city’s Division of Power or working again with AEP Ohio “to identify some potential other sites.”

She noted that “one other thing we’re really looking to do throughout the community is establish a network of resiliency hubs and so we’re really trying to tie some of the microgrid work into that resiliency hub work as well.”

The climate action plan notes that “every neighborhood is unique, and as such the needs of its members vary. The development of localized resilience hubs can respond to its community depending on the situation. Whether it is natural disasters or utility outages, a trusted community member will know how to reach and assist its most vulnerable citizens.”

Snohomish County PUD Marks Completion of Microgrid and Clean Energy Center

November 10, 2022

by Paul Ciampoli
APPA News Director
November 10, 2022

Washington State’s Snohomish County PUD recently hosted a ribbon-cutting to celebrate the completion of its Arlington Microgrid and Clean Energy Center.

The project is located near the Arlington Airport and demonstrates multiple uses of energy storage, including utility-scale battery energy storage, residential battery energy storage and vehicle-to-grid charging systems.

The PUD’s Arlington Microgrid is a combination of a 500-kilowatt solar array, 1-megawatt/1.4-megawatt-hour lithium-ion battery energy storage system and a pair of vehicle-to-grid charging stations. The group of interconnected loads and distributed energy resources focus on disaster recovery, grid resiliency and electric vehicle integration.

Washington’s Department of Commerce Managing Director Jennifer Grove stressed the importance of collaborating with forward-thinking utilities like the PUD in her remarks. The PUD received $3.5 million in funding from the Department of Commerce’s Clean Energy Fund.

Other attendees included U.S. Congresswoman Suzan DelBene, state Senator June Robinson, and Representatives Keith Goehner, Mike Steele and Carolyn Eslick, and members of the Arlington City Council.

John Haarlow, PUD CEO/General Manager, spoke about the project’s connection to the future and how the PUD is working to better understand new technology.

“The lessons the PUD is learning at this project every day are informing our future,” said Haarlow. “Battery energy storage will help make critical infrastructure impervious to outages and help us meet energy demand when customer usage is at its highest. Vehicle-to-grid charging will allow us to work with homeowners and business owners to leverage EVs as backup or grid-assisted power sources.”

The Arlington Microgrid was designed and sized to provide power to the Clean Energy Center and a future community office, which is currently under construction on the site, during an outage that could be caused by a major windstorm or earthquake.

PUD Generation Engineer Scott Gibson, who oversaw the Arlington Microgrid project, and Hitachi Energy General Manager of Grid Edge Solutions Antonio Verga both spoke on the complexity of the project and the key to collaboration between the PUD and the numerous vendors.

“The Arlington Microgrid provides a foundation for meeting both today’s emerging energy challenges and the future energy needs in Washington state and beyond,” said Verga.

One of the most impressive aspects of the project is the ability for the microgrid to disconnect from the electrical grid and transition to microgrid mode seamlessly, the PUD said.

“At most microgrids, the disconnection from the larger grid to microgrid mode is very noticeable and can result in a momentary power interruption lasting several seconds,” said Gibson. “At the Arlington Microgrid this transition is not noticeable to the eye or even the PUD’s metering equipment and has no effect on computer systems running in the Clean Energy Center. This is a significant achievement.”

The PUD plans to use the Clean Energy Center and accompanying solar tree to demonstrate microgrid technology and educate the public about battery energy storage and vehicle-to-grid technology.

For more on the Arlington Microgrid and Clean Energy Center, visit snopud.com/microgrid.

Oregon Department of Energy Awards Funds to Ashland for Resilience Project

November 6, 2022

by Paul Ciampoli
APPA News Director
November 6, 2022

The Oregon Department of Energy has awarded $940,000 in funds to pay 100% of the project costs for an energy resilience project designed by Stracker Solar for the public power city of Ashland, Ore.

Awards were chosen based on project feasibility and strength, cost savings, economic development, and equity goals such as environmental justice.

The proposed community resilience project will be built at a city service center where Ashland’s Police and Electric Departments as well as city vehicle fueling and charging stations are located.

The installation will consist of a 75kW elevated dual-axis solar tracker system along with a new Lithium-battery system to form a microgrid for the site. The installation will produce 170,000 kWh electricity annually and support continued operation of essential services for the Electric Department and Ashland Fiber Network building, as well as continued fueling of city vehicles (which include ambulance and fire trucks), in the event of power grid failures.

The project will also provide the city’s expanding electric vehicle fleet its first 480V Level 3 Electric Vehicle Charging Stations and will include provisions to allow the electric vehicle batteries to be used for additional electricity storage in the future. The project also includes social equity elements that helped gain the grant award.

APPA Comments on DOE Implementation Strategy for Grid Resilience Program

October 21, 2022

by Paul Ciampoli
APPA News Director
October 21, 2022

The American Public Power Association (APPA) recently submitted comments in response to a Department of Energy (DOE) Request for Information (RFI) on its implementation strategy for the Grid Resilience and Innovation Partnerships (GRIP) program.

GRIP is part of the Infrastructure Investment and Jobs Act (IIJA). It is aimed at enhancing grid flexibility and improving the resilience of the power system. Under GRIP, $10.5 billion in grants are available through three programs: Grid Resilience Grants ($2.5 billion), Smart Grid Grants ($3 billion), and Grid Innovation Program ($5 billion).

Among other things, DOE asked for feedback on what actions it can take to best achieve the benefits of coordinating applications to all three Grid Resilience and Innovation Partnerships topic areas at the same time.

In response, APPA said it supports DOE’s initiative to stage the application process so that applicants are able to submit a white paper before being asked to complete a full application.

“DOE could further reduce the barrier that exists for smaller entities by establishing teaming lists, as it has done for other opportunities, so that utilities may find technology partners who wish to demonstrate innovative approaches at scale, and by staggering the initial application windows by topic area,” APPA said.

A single application window for all three programs in GRIP could cause smaller entities wishing to apply to more than one topic to choose just one area, while larger utilities with more resources to direct to the application process would be able to mount multiple applications, APPA said.

“Further, DOE could provide more than 30 days between receipt of an Encourage notification to mount a completed application.”

APPA also addressed the question of how can funding from the GRIP program can best overcome challenges impeding the development of transmission, grid solutions, and interconnecting new generation and storage to improve grid resilience and reliability.

APPA believes that “these challenges may be overcome by encouraging joint action between smaller public power utilities to collectively deploy grid-edge solutions for grid resilience.”

It noted that many smaller public power utilities do not have the resources or volume of meters necessary to deploy advanced metering infrastructure (AMI) and distributed energy resource management systems (DERMS) at an affordable scale, nor the capacity to analyze the data and manage distributed energy resources (DERs) to maximize benefits and reduce impacts to the grid.

“By funding joint action agencies to deploy and manage these systems on communities’ behalf, it will enable a more resilient, modern grid within rural public power communities. Access to acreage for renewable energy deployment behind the community’s meter is not readily available in many communities.”

Instead, communities can utilize behind-the-retail meter assets, such as rooftop solar photovoltaic generation and energy storage, to help stabilize the grid and dispatch loads to meet local and regional intermittent carbon-free generation resource availability, thus mitigating the need for increased transmission infrastructure, the trade group said.

Additionally, GRIP should take into consideration the ongoing costs of maintaining the additional capabilities dedicated to resilience. Most of these capabilities are not cost advantageous nor cost recoverable from customers, and are not viewed as a valued investment by shareholders, APPA added.

DOE also asked for feedback on whether existing or expected supply chain concerns are anticipated to delay or impact development of potential applications or project implementation, if awarded.

“APPA and other industry groups have done extensive surveying of utility supply chain concerns. Lead times for transformers prior to the COVID-19 pandemic were typically three to four months, but now most utilities are experiencing lead times of over a year, and many are seeing lead times of as much as 18-24 months.”

APPA said there are also significant backlogs in other essential components, including meters. “Additionally, supply constraints are impacting goods associated with advances in grid infrastructure. The microchip shortage, as well as increased constraints related to lithium-ion batteries, mean that projects involving these components may experience significant delays.”

Labor issues are also a concern, “as almost all parties – utilities, suppliers, manufacturers – are having trouble in hiring and retaining employees. This is only exacerbating the supply chain issues almost all utilities face and may create further backlogs. An increased flow of money into this sector will also increase demand for components, furthering potential delays.“

DOE will need to factor project delays into its timetable and be flexible regarding project timetables, APPA said. “Flexibility can be defined as tolerance for a marked-up product price within a grant budget and a no-cost extension of the project work plan for up to one-year, when requested by the awardee, to accommodate the longer window of time for performance due to the delayed delivery of a product.”

APPA also addressed the timing related to the first application cycle for the GRIP program, saying it is concerned with the relatively brief turnaround time.

Having the application cycle open in November may be too soon for DOE to thoughtfully incorporate public comments from the RFI process (due October 14) into the final funding opportunity announcement (FOA), it said.

“Utilities may struggle to identify projects that are good candidates for grant funding, particularly under section 40101(c).  Most utilities have an existing backlog of dozens, if not hundreds of projects, that fit the descriptions in the program, but this backlog of necessary projects is in some tension with the requirement of additionality.”

 Applicants are not accustomed to prioritizing projects based on grant program guidelines and may benefit from reviewing a revised draft FOA for several weeks, after DOE has incorporated comments from stakeholders and before the application window opens, APPA said. “Releasing the FOA in December, with concept papers due at the end of January and full applications due at the end of April would minimize conflicts due to the holidays and allow applicants more time to convene partnerships and obtain letters of support.”

APPA also said that smaller public power utilities often lack dedicated staff to work through the application process. “DOE could consider covering the cost of grant writers and compliance managers as this would be helpful to public power utilities who lack the requisite staff resources. A shorter application could also be helpful to smaller public power utilities. Any sort of assistance from DOE could also be coordinated through JAAs.” 

APPA and its members are also concerned about the $100 million cap on the federal share of grant allocations. “While DOE has expressed that this is not intended to be the target amount awarded for each project, many potential applicants may interpret by this cap to mean that only the largest and most ambitious efforts will be awarded. Since the federal share is no more than half of the project cost, smaller utilities will perceive the effective project costs to be $200 million or greater, and very few, if any, small utilities could reach this amount.” 

Lowering the federal share cap would provide additional room to make a greater number of awards, including awards to smaller utilities and smaller projects. This would allow DOE to have a larger impact by supporting a greater number of utilities, and with a wider geographic distribution (and for other factors) as opposed to a consolidation of funding in only a few companies in a few regions. A lower cap may also assuage the concerns of potential applicants who do not think their own efforts will receive serious consideration, the trade group said.

Planning Meeting For Next Light Up Navajo Scheduled For Sept. 14

September 7, 2022

by Paul Ciampoli
APPA News Director
September 7, 2022

A virtual planning meeting for the next Light Up Navajo mutual aid initiative will take place on Sept. 14, 2022.

The meeting for Light Up Navajo IV is scheduled to start at 1 p.m. EST and will include remarks from Joy Ditto, President and CEO of the American Public Power Association (APPA), Walter Haase, General Manager, Navajo Tribal Utility Authority (NTUA), Srinivasa Venigalla, Deputy General Manager, NTUA, Shannon Burnette, Assistant Manager, NTUA, and Deenise Becenti, Public Affairs Manager, NTUA.

For more Information, contact Burnette at: shannonb@ntua.com, (928) 729-6248, Paulette Wauneka, paulettew@ntua.com;  (928)-729-6560 or Chelsea Zahne, chelseaz@ntua.com  (928) 729-6452.

APPA worked with NTUA on Light Up Navajo III to help volunteers continue to bring electricity to families in need.

During April-June 2022, 69 volunteers from 14 utilities in 10 different states worked to electrify 137 Navajo Nation homes.

Groups Argue For Flexibility In Revision Of Reliability Standard To Address Extreme Weather Events

September 2, 2022

by Paul Ciampoli
APPA News Director
September 2, 2022

The North American Electric Reliability Corp. (NERC) must be given flexibility for any revisions made to an existing reliability standard to address reliability concerns related to transmission system planning for extreme heat and cold weather events impacting the reliable operations of the bulk electric system, the American Public Power Association (APPA) and several other trade groups said in recent comments submitted to the Federal Energy Regulatory Commission (FERC).

The Aug. 26 comments were filed in response to a pending FERC notice of proposed rulemaking (NOPR) proposing to direct NERC to revise mandatory reliability standard TPL-001-5.1 (Transmission System Planning Performance Requirements) to address reliability concerns related to transmission planning for extreme heat and cold weather events. 

APPA was joined in the comments by the Edison Electric Institute, Large Public Power Council, National Rural Electric Cooperative Association, and Transmission Access Policy Study Group.

While the groups support addressing the planning for extreme heat and cold weather events in NERC reliability standards, “the variation in extreme weather events between regions and the highly varied system topologies of registered entities call for the Commission to vest NERC and the standard drafting team with flexibility in determining how to address the issues identified by the Commission, including potential corrective actions,” APPA and the others said.

The groups noted that they share the Commission’s desire to better address and respond to extreme heat and cold weather events and therefore support efforts to improve system planning specifically for these extreme heat and cold weather events.

“The manner and process required to achieve these goals is complex, requiring flexibility and multiple tools, if this effort is to be fully effective,” they said.

APPA and the other groups said that the purpose of the TPL standard is to establish transmission system planning performance requirements over a broad spectrum of system conditions, including extreme events, based upon operating experience that may result in wide-area disturbances and following a wide range of probable contingencies. 

“Including extreme heat and cold weather as described by the Commission potentially could require adding numerous elements and specifics to a planning analysis,” they told FERC.

Given the wide set of issues and corresponding circumstances that a new or modified standard must entail, the groups recommended that the Commission “defer to the technical competence of the subject matter experts on a standard drafting team in order to develop a risk-based approach to the myriad issues raised in the NOPR.”

The groups also said that addressing challenges to electric system reliability posed by extreme heat and cold weather should be informed by the highly varied nature of risks and potential consequences to the electric system posed by these events. 

“Different parts of the country face different risks, in terms of both type and severity of weather events.  The risks faced by, and appropriate measures for, an entity in Florida may look very different from those of an entity in Texas, Wisconsin, or California; the risks may, moreover, change over time,” APPA and the other groups pointed out.

“Entities also vary in terms of the scope of their facilities. For example, some NERC-registered transmission owners own only one or two bulk electric system transmission lines, while others own extensive transmission systems covering a wide range of varying topography. The flexible approach proposed by the NOPR is thus imperative to help ensure that threats are assessed accurately and that selected corrective actions are suited to the region, system topography, and affected entities.”

Further emphasizing the need for flexibility in the approach to new or modified standards, many of the associations’ members currently assess risk to their systems due to extreme heat and cold weather effects in varying ways. 

“Some already have developed studies and implemented plans to maintain system performance in light of extreme weather. Electric utilities constantly evaluate and update these risks depending on their particular location and system topology,” the groups said.

Moreover, NERC registered entities have obligations under TPL-001-4 to include events that are expected to produce more severe system impacts on the bulk electric system in planning assessments.

“While NERC develops reliability standards that apply on a continent-wide basis, in some instances a regional variance may be developed if a standard cannot be met or complied with because of a physical difference in the Bulk-Power System or because of an operational difference,” APPA and the other groups said.

In the case of extreme heat and cold weather, “regional differences require some flexibility or customization because systems vary widely in their topology and electrical characteristics, as well as in the weather impacts they face.”

The standard drafting team “should determine the best possible approach for addressing a continent-wide extreme heat and cold weather planning standard that accounts for geographic, system topology, and other variations, as well as the best approach to accommodating such variations or determining if regional variances are necessary.”

Public Power Communities Recognized For Reliability, Safety Efforts By State Association

August 3, 2022

by Paul Ciampoli
APPA News Director
August 3, 2022

The Municipal Electric Systems of Oklahoma (MESO) has recognized public power members from Oklahoma and adjoining states for safety and reliability efforts.

Oklahoma’s Fairview Utilities Authority earned first place in MESO’s annual Electric Operations and Reliability Competition in the category for cities under 10,000 population and was cited for achieving the highest reported level of service reliability for public power cities in Oklahoma. The utility delivered an Average System Availability Index of 99.9988 percent in 2021.

Additionally, the utility had a perfect safety record for 2021. The utility’s personnel went a year without a reportable lost work time incident, either “days away from work,” “restricted light duty,” or “medical treatment” cases in 4,232-man-hours.

The City of Miami and Miami Electric in Oklahoma earned MESO’s Outstanding Achievement in the annual Electric Safety Competition in Oklahoma in the category for cities with over 10,000 population.

Miami employees delivered an exceptional safety record in 2021, MESO said. The utility’s personnel went the year with one reportable incident, resulting in no lost work time, either “days away from work,” “restricted light duty,” or “medical treatment” cases in 20,322-man-hours.

Coffeyville Municipal Light & Power in Kansas earned MESO’s Outstanding Achievement in the association’s annual Electric Operations and Reliability Competition. The utility was recognized in the category for cities with over 10,000 population and cited for achieving the second-highest reported level of service reliability for cities within MESO’s four-state member region. The utility delivered an Average System Availability Index of 99.9983 percent in 2021.

Oklahoma’s Prague Power, the city’s electric utility, earned Outstanding Achievement in MESO’s Operations and Reliability Competition in the category for cities under 10,000 population. The utility delivered an Average System Availability Index of 99.9933 percent in 2021. Additionally, Prague Power was recognized for having a perfect safety record for 2021 working without a reportable lost work time incident, either “days away from work,” “restricted light duty,” or “medical treatment” cases.

Tahlequah Public Works Authority (TPWA), serving the citizens of Tahlequah, Okla., earned First Place in MESO’s Electric Operations and Reliability Competition in the category for cities with a population over 10,000. TPWA achieved the highest reported level of service reliability for cities within Oklahoma with an Average System Availability Index of 99.994 percent in 2021.

The Town of Olustee in Oklahoma earned First Place in MESO’s Electric Operations and Reliability Competition in the Town Category with an Average System Availability Index of 99.9995 percent in 2021. Additionally, Olustee was recognized for having a perfect safety record for 2021. The Town’s employees working a year (or 7,251-man-hours) without a reportable lost work time incident, either “days away from work,” “restricted light duty,” or “medical treatment” case.

The City of Marlow, Okla., was recognized for Outstanding Achievement in MESO’s annual Electric Operations and Reliability Competition. The utility was recognized in the category for cities under 10,000 population and delivering an Average System Availability Index of 99.9964 percent in 2021.

Other cities that were recognized by MESO were: Siloam Springs, Arkansas: Reliability – 1st, over 10,000, four-state region; Tecumseh, Okla. – Outstanding Achievement; Duncan, Okla.: Reliability – Outstanding Achievement; and Comanche, Okla: Safety – First Place.

NERC Report Sees Weather, Cyber, Inverter Based Resource Threats To Reliability

July 29, 2022

by Peter Maloney
APPA News
July 29, 2022

Grid operators were able to maintain electric system reliability in 2021 with one notable exception, the February extreme cold weather event that affected Texas and parts of south-central United States, according to a new report from the North American Electric Reliability Corp. (NERC).

The cold weather event resulted in the largest controlled load shed event in U.S. history and the nation’s third largest load loss event, according to NERC’s 2022 State of Reliability report.

The February cold weather event, among other things, confirmed that interdependencies between the electricity and natural gas industries are a major new reliability risk that must be explicitly managed, NERC said in its report.

Last year also saw the rise of reliability threats from cyber attacks from nation-state adversaries and organized cyber criminals, who demonstrated they have “the ability and willingness to disrupt critical infrastructure,” NERC said.

Cyber-attacks “routinely targeted the digital supply chain and reports of suspicious cyber incidents (including vulnerability exposure, phishing, malware, denial of service, and other cyber-related reports) increased significantly in 2021,” the report found.

The NERC report also noted that there were several widespread solar photovoltaic loss events in 2021, two in Texas and four in California. Although reliability was maintained, those events highlighted the importance and urgency of expanding and accelerating ERO Enterprise and industry efforts to address them, the report said.

ERO Enterprise comprises NERC and the six North American regional electric reliability entities.

Conversely there are diminished levels of flexible generation, such as fuel-assured, weatherized, and dispatchable resources, in many parts of the nation, increasing the risk of energy shortfalls. “No longer is the peak demand period the only clear risk period; instead, risks can emerge when weather-dependent generation is impacted by abnormal atmospheric conditions or when extreme conditions disrupt fuel supplies,” the NERC report said.

Overall, the events of the past year have led the ERO Enterprise to begin reassessing how best to measure the overall reliability performance objectives for the industry, NERC said.

The report noted that NERC also has begun to address several of the growing threats. The ERO Enterprise, for instance, is implementing the recommendations in a report on the February cold weather event done by staff at NERC, the ERO Enterprise and the Federal Energy Regulatory Commission.

When implemented, those actions will provide bulk electric system (BES) “planners and operators with additional tools to avoid a recurrence of BES reliability threats arising from extreme cold weather events and address energy availability standards development for long-term planning and operational planning/operations time frames,” NERC said.

Regarding electric-gas interdependency, NERC said its “forward-looking Reliability Assessment Program continues to emphasize the risk of increased reliance on natural gas generation,” and the ERO Enterprise is “actively encouraging registered entities to conduct studies to model plausible and extreme natural gas disruptions” set forth in its March 2020 reliability guideline.

NERC also said it is drafting supply chain requirements and guidance to reduce vulnerabilities and better protect industry systems and infrastructure.

And to address the intermittency of inverter based resources, NERC said the ERO Enterprise and industry are implementing recommendations set forth in reports on the solar power loss events in Texas and California.

In a recent episode of the American Public Power Association’s Public Power Now podcast, Jim Robb, President and CEO of NERC, detailed NERC’s 2022 summer reliability assessment and discussed supply chain challenges facing the power sector.