SAN ANTONIO — State regulators working to improve MISO–SPP interregional planning processes and seams issues drew more than three dozen interested onlookers to their latest committee meeting on Sunday.
Continuing a trend for much of the last year, the SPP RSC/Organization of MISO States Liaison Committee held its meeting in conjunction with a conference of the National Association of Regulatory Utility Commissioners (NARUC). But that may soon be changing.
During a discussion on timelines, North Dakota Commissioner Julie Fedorchak echoed the frustration of several members when she said, “We don’t move quickly enough.”
Kansas Corporation Commissioner Shari Feist Albrecht, who leads the SPP side of the committee, agreed the group’s progress is slow, hampered in part by insufficient face-to-face time between the RSC and OMS members.
“It’s moving too slow,” she said. “I’m hoping we can develop a regular schedule of meetings going forward.”
The committee intends to rectify that situation by scheduling at least one meeting in early 2020, albeit possibly through the web, for an education session on SPP’s and MISO’s planning processes before NARUC’s next meeting.
FERC Commissioner Richard Glick was among those who sat in on the Nov. 17 meeting, being granted a seat at the table while others lined the walls. He declined to offer comments during the discussion but did address the session two days later during NARUC’s annual meeting.
“I appreciated being invited. It was a very interesting discussion,” Glick said during a Q&A session with outgoing NARUC President Nick Wagner. “It’s pretty apparent that we’re not necessarily building the transmission system that might be needed for the grid of the future. We’re not going to resolve those issues today. If we can do a better job of planning between regions, that would really be helpful.”
Three separate coordinated studies between the ISOs have failed to yield a joint project. Stakeholders have laid much of the blame on differences in modeling and criteria between the grid operators, which has led to market inefficiencies. (See MISO, SPP to Ease Interregional Project Criteria.)
While meeting irregularly since last year’s creation, the liaison committee has gathered stakeholder feedback and commissioned the RTOs’ market monitors to analyze the seams issues. (See RSC, OMS Approve Monitors’ Seams Study.)
SPP’s Market Monitoring Unit finished a draft report on rate pancaking and unreserved transmission use in time for the meeting.
MISO’s Independent Market Monitor is scheduled to wrap a study on joint dispatch before year’s end. The IMM is also working on suggested changes to the market-to-market framework with the SPP-MISO joint operating agreement. The latter report may not be finalized until spring 2020.
The MMU’s analysis indicated removing duplicate transmission charges (rate pancaking) has a very limited effect on import and export volumes. The SPP Monitor said most transactions are “inelastic” to the market-clearing price and the majority of these transactions are already taking advantage of market import service in the SPP footprint and a comparable service in MISO.
Its study of SPP unreserved use charges since 2016 revealed they are unaffected by the SPP-MISO seam. The MMU said it could not quantify an impact of these charges on interchange volumes and “abstained” from providing an opinion on the current processes.
The work that lies ahead prompted Dana Murphy, chair of the Oklahoma Corporation Commission, to ask for clarification on just who various studies’ stakeholders are?
“My concern in general is who is asking the RTOs to do this background work?” Murphy said. “We have to be thoughtful in our communicating and what we are communicating.”
New Jersey doubled its offshore wind goal on Tuesday, committing the Garden State to develop 7,500 MW of generation by 2035 in hopes of becoming the “nexus of the global offshore wind industry.”
Gov. Phil Murphy, flanked by First Lady Tammy Murphy and former Vice President Al Gore, signed the executive order at the Liberty Science Center in Jersey City — the latest development in the state’s march toward 100% clean energy by 2050.
“There is no other renewable energy resource that provides us with either the electric-generation or economic-growth potential of offshore wind,” Murphy said. “When we reach our goal of 7,500 megawatts, New Jersey’s offshore wind infrastructure will generate electricity to power more than 3.2 million homes and meet 50% of our state’s electric power need.”
Offshore wind | Avangrid
In June, the New Jersey Board of Public Utilities selected Ørsted to develop the first 1,100 MW of offshore wind planned for the state. (See Orsted Wins Record OSW Bid in NJ.) Regulators will solicit bids for two more 1,200-MW projects in 2020 and 2022.
“As our federal government abdicates its responsibility to confront the climate crisis, our transition to a clean energy future is being led by states like New Jersey,” Gore said. “Today’s announcement couldn’t be more timely and more needed, as climate-related extreme weather events continue to wreak havoc on our communities. With this executive order, Governor Murphy is unleashing the unprecedented economic and job creating opportunities of clean, wind energy.”
The projects represent just a fraction of the potential researchers say offshore wind development holds along the Mid-Atlantic coast. University of Delaware Professor Willett Kempton said in April his analysis concludes a hypothetical buildout from New Jersey to North Carolina could add as much as 80 GW to the grid. (See Big Prospects for Offshore Wind in PJM.)
Companies, however, struggle with the logistics of building offshore wind generation in PJM. Anbaric Development Partners asked FERC on Monday to order the RTO to allow developers of offshore transmission “platforms” to obtain injection rights, saying PJM’s Tariff violates the commission’s open access requirements and is discriminatory. (See Anbaric Seeks FERC Help on OSW Tx.)
The transmission developer said it was forced to file its complaint after a stakeholder initiative to consider changing PJM’s rules stalled in September. (See “PJM Recommends Sunsetting Offshore Wind Special Sessions” in PJM PC/TEAC Briefs: Sept. 12, 2019.)
Liz Burdock, CEO of the Business Network for Offshore Wind, said up to 8,240 MW of offshore wind projects are currently under development on the East Coast, with “steel in the water” promised by 2026. New Jersey’s latest commitment will further encourage investment in the industry’s component manufacturing inside the U.S. — a major boon for the national economy.
“This additional 3,500 MW will accelerate the development of the state’s offshore wind industry and supply chain, and will translate into more economic opportunities, and more jobs, up and down the New Jersey coastline,” she said.
Having become reliability coordinator of record for much of the West on Nov. 1, CAISO’s RC West is now taking on new responsibilities as time error and geomagnetic disturbance (GMD) monitor for the Western Electric Coordinating Council.
CAISO Operations Center | CAISO
“The transition [to RC of record] went very smooth,” Tim Beach, director of RC West operations, said Tuesday during a meeting of the RC West Oversight Committee. “We have not had any real events happen since then, so that’s good.”
“The communications with [balancing authorities] and [transmission operators] have been strong,” Beach added, noting that the RC now conducts a daily conference call with the Northwest region in addition to the one CAISO has held for the Southwest for years. The calls, which deal with path deratings, interconnection reliability operating limits (IROLs), major facility outages and remedial action scheme (RAS) outages, if they take place, “keeps everybody on the same page,” Beach said.
“It’s new to the folks in the Northwest. And a lot of times there isn’t a lot of discussion on these calls so there’s a question of value. But we are going to continue that call through the end of the year and we’ll reevaluate the process,” he continued. “We’ll always have some sort of call with regard to that because we do need to communicate those IROLs and path derates.
Beach said NERC became time error monitor for WECC at 10:30 a.m. on Nov. 18. “We haven’t had a manual time error for reliability reasons in the West in quite some time and frankly we don’t see that happening, but we have the process in place if it were to occur,” he said.
RC West will take its turn as the GMD monitor on Dec. 3 when SPP becomes RC of record for the remaining Peak Reliability area. It will serve in the role through 2020, with BC Hydro RC (BCRC) becoming the monitor for 2021. Transitions under the rotation, which will also include SPP and Alberta Electric System Operator, will occur at the same time as the Eastern Interconnection makes its switches, Beach said.
Proposed Metrics
Dede Subatki, director of operations engineering services, told members the deadline is Nov. 29 for comments on RC West’s proposed data metrics.
RC West has proposed continuing Peak Reliability’s practices of releasing some data publicly (such as state estimator quality and convergence) and keeping other data (e.g., load forecast accuracy) confidential.
Proposed metrics | West RC
The Real-Time Working Group will meet Dec. 5 to discuss the comments and Dec. 19 to finalize the metrics, with plans to start gathering data Jan. 1.
“I have a little bit of concern about whether [state estimator] quality should be public at this point given our confidence in it,” John Nierenberg of Tacoma Power said when Subatki opened the floor to comments.
Subatki said the public release would be a “generalized SE quality metric” for the RC West footprint. SE data for individual transmission operators, he said “is definitely confidential.”
That appeared to satisfy Nierenberg. “If we look at an overall generic [metric] maybe I’m not as concerned,” he said.
EHV Data Pool Closure, PMU Update
Officials warned members that companies needing to pull historical data from Peak must do so before Dec. 3, when it will shut down its IT infrastructure, including its EHV Data Sharing Pool. It is being replaced by the new Western Data Sharing Pool (WDSP), which has been available since the end of October.
PMU update | West RC
“The deadline is something that is beyond our control and is something that is not negotiable,” said Subatki. “I think it’s really important to get through the denial phase that some people think we can actually extend this beyond Dec. 3.”
Beach provided an update on the transition to the new Western Interconnection Synchrophasor Program (WISP), saying nine entities, including RC West, SPP, and BC Hydro have completed the transition with six others having completed circuits and ready for the cutover. PacifiCorp, Los Angeles Department of Water and Power and Tucson Electric Power are not yet ready.
Change to Leadership Terms
The committee agreed to eliminate staggered terms for its leadership to fix an unexpected problem.
Michelle Cathcart, BPA | BPA
Under the change, Chair Michelle Cathcart and Vice Chair Kristie Cocco will serve their terms through May 2020 instead of the original plan to have their terms end in March.
Cathcart, vice president of transmission system operations with the Bonneville Power Administration, was elected along with Vice Chair Steve Cobb, director of transmission and generation operations at Salt River Project (SRP), at the committee’s first meeting in March 2019.
Because Cobb is retiring at the end of the year, the committee at its last meeting elected Cocco, of Arizona Public Service, to replace him.
In June 2020, both the new chair and new vice chair will begin two-year terms.
“We realized that because we had said there were staggered terms, it made it so that the vice chair couldn’t become the chair because their term would be in the middle when the chair’s term started,” explained Cathcart. “Given the timeframe and making sure that Kristie has a little bit of time under her belt before she actually becomes chair, we thought that making the change in June would … give her a little bit of time. And then hopefully we can stay on a June schedule from here on out.”
Cathcart clarified after the meeting that “while Kristie is a strong candidate for chair at that point, there will be an election of both chair and vice chair.”
The committee also approved a resolution of appreciation for Cobb, who is retiring after almost 40 years with SRP.
Schedule
The committee will hold a webinar Dec. 17, at which it will review the wind down of Peak. The committee will meet quarterly or as needed in 2020. Meetings are currently set for: Feb. 27 (webinar); May 12 (in person and webinar); Aug. 19 (webinar) and Nov. 12 (in person and webinar).
Pacific Gas and Electric tried to convince a federal bankruptcy judge on Tuesday to help it escape inverse condemnation — the bane of California’s investor-owned utilities that holds them strictly liable for wildfires ignited by their equipment.
The move may have been a Hail Mary pass, however. PG&E and other IOUs have tried and failed for years to convince judges, lawmakers and state regulators that inverse condemnation isn’t fair because it holds them accountable even if they weren’t negligent.
So far, the IOUs haven’t made much of a dent in the age-old doctrine, which is embedded in the state constitution and applies to regulated monopoly utilities, according to the state appellate courts. The rationale is that because the utilities can exercise eminent domain to seize private property — to create power-line easements, for example — they are liable for damage to private property from their equipment.
The doctrine dates to the mid-1800s when California was trying to rein in the power of the Southern Pacific Railroad.
The Camp Fire, ignited by PG&E equipment, killed 85 residents and wiped out the town of Paradise on Nov 8, 2018. | NASA
This time, PG&E decided to try a somewhat different approach with U.S. Bankruptcy Court Judge Dennis Montali, who is overseeing the utility’s immense Chapter 11 reorganization in San Francisco. The company faces billions of dollars in liability for wildfires in 2017 and 2018 started by its equipment, including the Camp Fire, the deadliest and most destructive wildfire in state history.
Despite a number of court rulings to the contrary, PG&E’s attorneys argued Tuesday that inverse condemnation applies only to public entities and that the utility is not a public entity.
The spreading around, or socialization, of the costs of a wildfire works with a municipal utility, such as the Los Angeles Department of Water and Power, because the utility can raise its own rates to cover costs, PG&E lawyer Kevin Orsini told the judge. But PG&E and other IOUs depend on the California Public Utilities Commission to set rates, and regulators will only authorize wildfire-cost recovery if they find an IOU managed its system prudently, Orsini said.
“Inverse was developed and actually works in the context of a true public entity,” the lawyer said.
In their court filings and presentation, attorneys for wildfire victims called PG&E’s effort a blatant attempt at “forum shopping” after repeated failures in other courts and the State Capitol.
“PG&E has spent the past year complaining about the fact that it is subject to inverse condemnation liability under California law and furiously lobbying to change the law,” the victims’ lawyers argued in their brief. “Because its lobbying efforts have not met with success, PG&E now asks this court to do what California’s political branches have been understandably unwilling to do: bail out the utility from having to fully compensate the victims of fires caused by its equipment.”
Montali seemed to dislike PG&E’s suggestion that his judgment should overrule the state courts or the decisions of lawmakers. PG&E tried to convince lawmakers to modify inverse condemnation as recently as this summer without making much headway, he noted. (See Calif. Wildfire Relief Bill Signed After Quick Passage.)
“The California legislature all of three months ago decided not to change the law,” Montali said. “If that isn’t a significant marker, I don’t know what is.”
PG&E also argued that the application of inverse condemnation to IOUs might still be subject to review by the state Supreme Court, and they asked Montali to make findings to pave the way for an appeal.
Montali, however, said he doubted most of the high court justices would substitute their judgment for that of the legislature.
Montali said he would try to quickly issue a written ruling on the matter.
The Senate Energy and Natural Resources Committee on Tuesday voted to advance to the full Senate the nominations of James Danly as a FERC commissioner and Dan Brouillette as secretary of energy.
Danly passed the committee 12-8. Except for ranking member Joe Manchin (D-W.Va.), all Democrats — and independent Sens. Bernie Sanders (Vt.) and Angus King (Maine), who caucus with the party — voted against Danly, currently FERC general counsel.
Before the vote, Manchin bluntly said that “what the White House has done is wrong,” referring to President Trump declining to pair Danly’s nomination with that of Allison Clements, clean energy markets program director for the Energy Foundation and the Democrats’ choice for the party’s open seat on the commission. (See Danly Sails Through Hearing as Democrats Huff.)
“I will not withhold my vote for Mr. Danly, because then I’d be no better than they are,” Manchin said.
“I’m going to continue to implore the White House to give us a working FERC,” he said at the end of the meeting.
Brouillette, currently deputy secretary of energy, enjoyed more bipartisan support, passing 16-4. Sanders and Democratic Sens. Ron Wyden (Ore.), Mazie Hirono (Hawaii) and Catherine Cortez-Masto (Nev.) voted against him. (See Brouillette Poised to Become Energy Secretary.) Cortez-Masto cited the Energy Department’s secret shipment of plutonium to Nevada from South Carolina last year as the reason for her vote.
“My vote today is a vote of concern about the Department of Energy’s relationship with the state of Nevada. I am hopeful that it improves,” she said. “I hope I am wrong in my vote today: that Dan Brouillette will step up and work with the state of Nevada [and] will come back and earn the trust of Nevadans.”
The committee also advanced several bills to the floor at its meeting, including:
S.876, which would amend the Energy Policy Act of 2005 to require the secretary of energy to establish a program to prepare veterans for careers in the energy industry, including the solar, wind, cybersecurity, and other low-carbon emissions sectors or zero-emissions sectors;
S. 2368, which would amend the Atomic Energy Act of 1954 and EPAct05 to support licensing and relicensing of certain nuclear facilities and nuclear energy research, demonstration and development; (Hirono voted against this bill.)
S. 2508, which would require the secretary of energy to establish a council to conduct a survey and analysis of the employment figures and demographics in the energy, energy efficiency and motor vehicle sectors of the U.S.;
S. 2556, which would amend the Federal Power Act to provide energy cybersecurity investment incentives, and to establish a technical assistance program for cybersecurity investments; (See Senate ENR Seeks $250M for Utility Cyber Spending.)
S. 2657, intended to support innovation in advanced geothermal research and development;
S. 2668, which would establish a program for research, development and demonstration of solar energy technologies;
S. 2688, which would amend EPAct05 to establish an Office of Technology Transitions;
S. 2702, which would require the secretary of energy to establish an integrated energy systems research, development and demonstration program; and
S. 2714, which would amend the America COMPETES Act to reauthorize the Advanced Research Projects Agency – Energy program.
The bills passed by voice vote with no discussion, with much of the committee’s nearly two-hour meeting devoted to debating land-use and parks bills. Sen. Mike Lee (R-Utah) voted against all of the above bills.
Seven U.S. senators from New England on Monday urged ISO-NE to “return to the table with stakeholders” and more closely align its fuel security initiative with state policies seeking to speed the transition to renewable energy resources.
In a letter to the RTO, the senators criticized ISO-NE for “pursuing a patchwork of market reforms aimed at preserving the status quo of a fossil fuel-centered resource mix” and having “charted its own path forward and pursued unpopular initiatives” such as Competitive Auctions with Sponsored Policy Resources (CASPR) and the Inventoried Energy Program.
“ISO-NE should heed the call of the states, electricity generators and others to expand the dialogue beyond the current, too narrow fuel-security reforms to tackle the region’s pressing need to achieve the states’ ambitious climate goals,” they said. “To achieve these goals, ISO-NE should dedicate significant planning and markets resources in the coming months to evaluate, help develop and propose new electricity market structures that recognize, facilitate and are compatible with state policies.”
ISO-NE real-time data on Nov. 19 show 60% of the resource mix running on fossil fuels, predominantly natural gas. | ISO-NE
The signatories to the letter were Richard Blumenthal (D-Conn.); Ed Markey (D-Mass.); Chris Murphy (D-Conn.); Jack Reed (D-R.I.); Bernie Sanders (I-Vt.); Elizabeth Warren (D-Mass.); and Sheldon Whitehouse (D-R.I.).
State Climate Priorities
Dan Dolan, president of the New England Power Generators Association (NEPGA), said the senators’ correspondence follows two similar letters his organization has sent to ISO-NE in the last year.
“One area where we disagree with the senators’ letter, however, is … NEPGA believes that CASPR provides a viable pathway to integrate state-contracted electricity projects, while maintaining reliable though competitive markets,” Dolan said.
He said there are two important parts to reforming the region’s competitive electricity market to meet the needs of states, consumers and reliability criteria.
“First, state climate priorities should be integrated into the market through a meaningful price on carbon dioxide emissions on an economy-wide basis,” Dolan said. “This will both help support investments in clean electricity supplies, while also helping to drive needed electrification of the transportation and heating sectors, which together account for over two-thirds of all emissions in New England.
“Second, with large-scale state contracts driving increases in resources like offshore wind, the markets must be reformed to account for the changing nature of the electricity supply mix. The existing market design does not sufficiently value the performance that will be required to maintain reliability and resilience,” he said.
Collaborative Tradition
ISO-NE spokesperson Matt Kakley countered that the RTO is already heading in the direction advocated by the senators, including a move to allocate staff time and resources next year for stakeholder discussions on the future of the region’s power system — a measure set out in ISO-NE’s Annual Work Plan for 2020 presented to stakeholders in September.
“Over the past decade, ISO New England has worked tirelessly to incorporate renewable resources into system operations, short- and long-term planning procedures, and the region’s wholesale markets,” Kakley told RTO Insider. “These efforts have allowed the region to add thousands of megawatts of renewable energy, while maintaining reliable system operations, and have set New England up well to accommodate future renewable energy development.”
Kakley said those efforts required “countless hours” of stakeholder discussion “leveraging the region’s strong history of collaboration.”
ReliabilityFirst briefed members Monday on spot checks it plans for about 35 generation owners (GOs) and operators (GOPs) in 2020.
Brian Thiry, RF’s manager of operations and planning compliance monitoring, said the spot checks will focus on risks of insufficient long-term and operations planning that were identified in the 2019 and 2020 NERC Compliance Monitoring and Enforcement Program implementation plans. These include inadequate models, failure to report generator capabilities, resource adequacy and the ability to ride through grid disturbances.
Entities receive notice of the spot check five weeks in advance of when RF needs the evidence. During the first three weeks, the entity works with the RF team lead on collecting sampling data. “The team lead is there to help you — to walk you through the process,” Thiry said during RF’s monthly compliance call.
Some of the entities are subject to spot checks because of compliance oversight plans from audits in the last several years. For others, the notices are “unanticipated and unexpected,” he said.
Auditors testing GOs on PRC-019-2 R1 and PRC-024-2 R1 and R2 will review implementation plans, check to see whether all required testing was performed and whether the generator will trip in the “no trip” zone. They will test compliance with MOD-025-2 R1 and R2 by reviewing implementation plans and testing, and ensure there are no gaps in the information requested by transmission planners.
GOPs will be evaluated on VAR-002-4.1 R2. Auditors will be evaluating internal controls on situational awareness, alarming, notifications and training, and conducting sampling to ensure generators are operating within their voltage schedules.
“These are some of our most frequently violated requirements [for generators] over the last two years or so” as the generation mix has changed with the increase in renewables with inverter-based relays, Thiry said. “Even though [there’s] less … penetration in the Midwest, we still want to stay ahead of this risk.”
Thiry described spot checks as “a mini, more targeted audit.”
“It has a lot less moving parts than an audit. During an audit, it’s a longer period. We would take a harder look at your culture and your controls.”
For a spot check of VAR-02, for example, “we don’t look at every single one of your generators for every single day. We’d be looking at a sample scope of certain generators on certain days.”
Thiry suggested GOPs document the reasons for any excursions above or below their bandwidths and provide graphical representations in 10-minute increments.
“A picture’s worth 1,000 words. If it’s something that you could graph, that really helps us out and helps us [conduct] a fast, efficient review, so these spot checks can stay within that two-week time frame.”
Self-reports
Thiry said internal controls should be monitored continuously and that entities should self-report before the spot checks if they failed to meet an implementation milestone or perform required tests.
“We don’t want to wait until the spot check notification letter comes out to identify an issue. Because whatever this issue is, it can be identified, addressed and mitigated now. We don’t have to wait five months to put a control or mitigating plan in place,” Thiry said. “If you self-report it now, we can get to the bottom of it, [and] work with you on the fixes and the mitigation. And you get the credit for identifying it on your own without us having to find it.”
Thiry said self-reports should include the root cause of the problem. “That helps [enforcement] identify the extent of condition and what other risks may exist,” he said.
Thiry said he would provide additional communications on the spot checks during future reliability calls or in the RF newsletter.
PJM on Monday named former Direct Energy executive Manu Asthana as its choice for president and CEO, ushering in a new era of leadership at the RTO after a tumultuous year of internal reorganization and executive departures. He will join PJM on Jan. 1.
“We welcome Manu to lead PJM into the future,” PJM Chairman Ake Almgren said in a press release. “The electric industry is rapidly changing and PJM needs to continue to evolve. Manu comes to PJM with a wealth of experience from the electricity value chain and we are confident that he will bring new and important perspectives to the organization.”
Manu Asthana | PJM
Asthana’s two-decade career in the energy industry includes a stint as TXU Corp.’s chief risk officer and overseeing both power generation operations and energy trading for Direct Energy, a subsidiary of U.K.-based Centrica.
As president of Direct Energy Home in North America from 2015 through 2018, he led a staff of more than 2,600. The company, which offers retail electricity, home warranties, HVAC services and appliance rentals, claims to serve 3.4 million residential and small business customers in the U.S. and Canada.
Almgren said Asthana’s expertise will enhance PJM’s engagement with members and policymakers. Asthana has a bachelor’s degree in economics from The Wharton School at the University of Pennsylvania.
Asthana, his wife, Aparna, and their family will relocate to the Philadelphia area from Texas, where he served on the boards of Texas Children’s Hospital, the Houston Food Bank and Child Advocates.
Year of Change
PJM’s year of change began in February when longtime CFO Suzanne Daugherty announced her retirement amid the RTO’s overhaul of its credit policies and financial risk procedures following the default of GreenHat Energy.
Daugherty found herself the target of PJM members’ ire after GreenHat amassed 890 million MWh of financial transmission rights while putting up only $600,000 in collateral.
Manu Asthana (right) and then-Direct Energy CEO Badar Khan, (left) announce a $5 million donation to Texas Children’s Hospital in 2015. | Direct Energy
Her retirement was announced by CEO Andy Ott, who himself retired in May, two months after an independent probe into the GreenHat debacle concluded PJM staff ignored red flags about the company’s assets and exhortations from other members about the portfolio’s financial shortcomings. (See ‘Naive’ PJM Underestimated GreenHat Risks.)
The executive departures continued after interim CEO Susan Riley stepped in for Ott. In September, Riley announced the resignation of Vice President Denise Foster and the restructuring of the State and Member Services Division that she had headed. Foster had no role in the GreenHat episode. (See Stakeholders, States in Dark over PJM Personnel Moves.)
Last week, General Counsel and Senior Vice President Vince Duane resigned after more than 16 years “to pursue other opportunities.”
Almgren said Riley will resume her position with the board once Asthana assumes his role next year.
“We highly appreciate Sue Riley for her leadership during this challenging time,” he said. “She has been working with PJM management, members and policymakers in dealing with the many issues at hand at PJM and has laid a strong foundation for Manu to build on going forward.”
California officials hammered Pacific Gas and Electric executives on Monday over the utility’s mishandling of multiple public safety power shutoffs (PSPS) that left nearly 2.4 million residents in the dark last month.
PG&E, Southern California Edison and San Diego Gas & Electric all implemented PSPS events in October after the National Weather Service issued multiple red flag alerts that predicted dry, windy conditions at the height of the state’s wildfire season.
The California Senate Energy, Utilities and Communications Committee convenes Nov. 18 to discuss lessons learned from recent power shutoffs.
It was PG&E’s dereliction of long-established protocols for public notification and emergency preparedness, however, that set the investor-owned utility apart from the rest, officials told the Senate Energy, Utilities and Communications Committee during a six-hour hearing Monday.
“This was a world-class emergency response from the state of California,” California Public Utilities Commission President Marybel Batjer said. “I was also provided with insight into how a tool like PSPS intended to protect people and communities from harm can, when implemented haphazardly, generate the opposite effect.”
PG&E Response
California’s IOUs began using PSPS as a wildfire mitigation tool only within the last decade after damaged transmission lines sparked some of the deadliest blazes in state history, including last year’s Camp Fire that killed 85 people and leveled the town of Paradise.
Some officials, however, worry that utilities lean too much on the controversial practice to shield their companies from liability over faulty and neglected equipment. IOU shutoffs have nearly tripled since 2017, with 14 called so far this year.
PG&E CEO Bill Johnson
PG&E CEO Bill Johnson rejected that perception and said the utility has spent $30 billion over the last decade upgrading its transmission system. He blamed some of the company’s reliance on PSPS on the growth of high-risk fire areas within its 75,000-square-mile service territory — up from 15% in 2012 to more than 50% in 2019 — and predicted that the utility will continue the practice for another 10 years while it completes system-hardening initiatives.
“Let me emphasize the basic fact that should be obvious … we don’t actually want to turn anybody’s power off,” he said. “We recognize that living without power is more than just an inconvenience. For many, it’s a hardship. None of us want to live in that world, but we are doing this to prevent the spread of deadly catastrophic fires we’ve experienced in the last few years.”
But officials said PG&E seemed ill-prepared to manage the strategic shutoffs, despite months of preparation in coordination with state agencies.
Mark Ghilarducci, director of the governor’s Office of Emergency Services, said despite his office’s outreach to PG&E, the utility’s response during last month’s events lacked consistency and generated widespread confusion. He said PG&E didn’t provide detailed and timely notification of planned outages to its affected customers and couldn’t offer enough support via backup generators to critical medical baseline ratepayers or oversee other essential infrastructure during the three dayslong shutoffs that occurred on Oct. 9, 26 and 29.
“This was quite frustrating to us, particularly when we started to roll into these bigger problems, which we anticipated in those meetings that we talked about and wanted to address then,” he said.
Some of those bigger problems included widespread communications outages that prevented customers from contacting emergency services or accessing updates about the shutoffs. Residents in Mendocino and Marin counties lost complete access — via landlines, cell phones or internet — after 1,600 cell sites failed.
Ghilarducci said the issues suggest that privately owned and managed telecommunications companies lack appropriate battery backups for extended power outages. Regulatory hurdles thwarted attempts to ship diesel generators from other states, further slowing the restoration process, he said.
“Given the utility’s sole notification strategy for the public was to drive customers to a website that they couldn’t get on because they couldn’t get through the wireline system, it was a very frustrating loop of cascading failures that really created a major threat to life and safety,” he said. “We have seen this scenario over and over now following one disaster after another.”
Approximately 750,000 of PG&E customers de-energized during the Oct. 26 event went without power for a week or more, Ghilarducci said, because of the overlapping shutoffs implemented before the utility could clear the lines for restoration.
“The details here matter,” he said. “A detail about how you’re going to put a community resource center in place and what’s going to be there and how long it’s going to be open and what kind of demographics are going to be served there … those details matter. You can’t hit that with a 30,000-foot overview and then expect to have the ability to respond.”
Indeed, the state’s Government Operations Agency scrambled during the PSPS events called Oct. 26 and 29 to get PG&E’s website running again after it crashed following an uptick in traffic — an issue acting Secretary Julie Lee said the state warned the utility about in advance. Other officials said the number and availability of PG&E’s resource centers — where de-energized customers sought water, ice, blankets and power generation — fell short of best practices.
“These are fairly easy things that you think about ahead of time and you do well ahead of time and not at the moment of crisis,” Batjer said. “That was well pointed out to PG&E’s [officials], and they admitted it.”
Johnson painted a different picture of PG&E’s preparations, noting that the utility completed 18 months’ worth of line inspections within four months, trimmed 7 million trees and cleared vegetation — including 500,000 dead trees — from its lines. Although he admitted removing brush and debris does nothing to protect transmission lines against high winds, he said it’s a good start.
“Turning off power for safety is an effective tool and really only one of the many tools we are using,” he said. “We will get better at using it.”
Sumeet Singh, PG&E
Sumeet Singh, vice president of asset and risk management for PG&E’s Community Wildfire Safety Program, told the committee that the utility is indeed getting better at managing PSPS events. During the Oct. 26 shutoff, PG&E restored service to 970,000 customer accounts within 12 hours — a far cry from the 51 hours spent resupplying 60,000 customers during a shutoff last year.
He also said the grid’s design with long radial lines traversing high fire-risk areas presents challenges not faced in other service territories with higher customer densities. The structure means PG&E is focused on de-energizing lines with surgical precision and restoring power quickly to prevent more widespread impacts.
Still, officials insisted the utility should have done more.
“While PG&E spent significant resources warning the public about the risks of the power shutoff events and what the public should do to prepare for an event, it is not clear that PG&E spent the time it should have to make sure the utility was prepared,” Batjer said.
The SDG&E Model
Power shutoffs in SDG&E’s service territory carried far less impacts last month compared to outages in IOUs to the north thanks to years of planning and investment, COO Caroline Winn told the committee.
“I think what’s needed in California is to think beyond ourselves,” she said. “PSPS is the right solution for now, but what’s next? I’ve set that as an aspirational goal for our organization … how do we eliminate it? [At] SDG&E, that is our North Star.”
Winn said a devastating rash of wildfires in 2007 that “hit home” for the utility’s staff resulted in a cultural shift from reliability to public safety.
“Having gone through those experiences and saw those changes happen before my eyes, those were the fires that really changed the DNA of our company,” she said. “Back at that time, there was really no proscriptive plan of how we should engineer our system to protect our infrastructure from the increasing threat of violent wildfires.”
So, piece by piece, Winn said, SDG&E hardened its infrastructure: replacing bare wire and wooden poles with covered conductor and steel poles; hiring scientists and meteorologists to improve fire-risk forecasting; installing sectionalizing switches and weather stations on lines to monitor conditions; bolstering patrols of de-energized lines to ensure damage is mitigated before restoring power; and investing in falling conductor technology that will prevent broken wires from igniting.
“We have been very thoughtful about installing sectionalizing switches, which only limits shut offs to the most endangered communities,” Winn said.
The utility also turned community engagement into a year-round event, she said, noting that SDG&E hosts open houses and town halls to share information about how to prepare for a power outage. TV stations start broadcasting PSPS notices during red flag warnings, while the utility itself notifies customers at 48, 24, and one to four hours before a shutoff.
“Our goal is that no customer is surprised,” Winn said. “We want our customers to be able to plan around this.”
California Energy Czar Ana Matosantos
So, when Santa Anna winds triggered four red flag warning in SDG&E’s territory last month, the utility managed to de-energize just 25,000 customers, with outages resolved in less than 24 hours. Winn clarified that winds topped 80 mph in some areas, but no “major” fires tore through the territory either. For comparison, PG&E territory saw wind speeds exceed 100 mph.
Winn said the company’s PSPS wasn’t perfect: The event underscored the need for more backup generators and stronger coordination with nonprofit partners to speed up response time in vulnerable communities.
Ana Matosantos, California’s cabinet secretary and energy czar, said the utility’s actions — despite operating within the same regulatory scheme as PG&E — produced better outcomes for its customers.
“San Diego has made great strides in a much narrower way, for a much shorter period of time, impacting far fewer communities,” she said. “When you look at all three utilities, the use of PSPS in terms of size of event, the duration, the back-to-back outages, it’s a different story from all three.”
Southern California Edison
Like its IOU counterparts, Southern California Edison said its PSPS events only cut off power to a tiny fraction of its service area — less than 2% of its 5 million customers.
Phil Herrington, SCE
Phil Herrington, SCE’s vice president of transmission and distribution, said the utility develops its own fire-risk forecasts and uses high-definition cameras to monitor line conditions. Field workers will also install some 6,000 miles of covered conductor by 2023, three years ahead of schedule.
“We used granular real-time weather [information] to de-energize sections rather than entire lengths [of transmission line],” he said. “The ability to use the weather to make de-energization decisions and having the technology to do so, it serves a vital purpose.”
Both SCE and SDG&E said they deployed these more cost-effective mitigation tools to prioritize “undergrounding” where it’s most effective. The technique, which trenches electricity infrastructure below ground, costs approximately $3 million per mile — a pricey solution that IOUs say takes longer to build — and to troubleshoot during outages.
“It’s over eight times more expensive than covered conductor,” Herrington said. “There will be areas that are so consequential in the event of a wildfire that undergrounding is the best option and we will deploy it when necessary.”
Officials pushed Herrington on the utility’s responsiveness to cell tower outages during the shutoffs and pointed out that its process for registering medical baseline customers leaves out residents who aren’t account holders. He said the company offers zip code-based PSPS alerts to residents’ cell phones as a backstop — though such messages failed in some parts of the utility’s territory last month because of the outages.
“We do look at lines and if they have telecommunications; that is one of the many factors we consider in the restoration sequence,” he said. “PSPSes are just one of the many ways customers could lose power, so that is why we are encouraging customers to register as medical baseline customers. It could be an earthquake, it could be a major storm, where there won’t be warning.”
It’s not enough for Ghilarducci, who said bolstering cell sites will help assure a resilient system — something utilities have a stake in too.
“That means cell sites need to be hardened with battery or fuel backup beyond four hours to know they will sustain for multiple days,” he said. “Protecting the backline from fires or earthquake damage. It’s a simple request that we are asking and it’s a priority on the part of the utilities to do that.”
CPUC Action
Batjer said PG&E’s response provided a “sharper understanding” of how “one entity’s decisions can result in broad societal costs,” admitting that it’s her agency’s responsibility to prevent it from happening again.
Marybel Batjer, Calif. PUC
“Although the utilities are ultimately responsible for managing their electric systems, the CPUC cannot and should not stop demanding better ways to reduce the scope and impacts of power shutoffs without compromising public safety,” she said. “This cannot and should not be repeated.”
The CPUC launched an investigation into PG&E’s shutoffs last week to determine if the utility followed state law. (See Calif. PUC Orders Investigation of Power Shutoffs.) Batjer also issued a show-cause order and said a preconference hearing scheduled for Dec. 4 will give the utility a chance to convince the commission why it shouldn’t be sanctioned for its actions, though she doesn’t expect much in the way of changed behavior.
The commission will also work with utilities to expand their wildfire mitigation plans and create a Safety Policy Division dedicated to the enforcement of public safety during emergency events. It’s a conversation that must include telecommunications companies too, Batjer concluded.
“Despite the importance of the regulatory processes and actions we have put in motion, they are meaningless to the public unless they translate into real-world demonstrations that utilities are truly taking actions that prioritize the safety of the public,” she said.
State officials also won’t give PG&E another decade to harden its grid and discontinue power shutoffs. Matosantos said the state’s timeline “has been very clear.”
“We cannot have another year like this year,” she said. “We have to be looking at our goals and progress in a matter of days, weeks and months and what has to happen at every point in time before next fire season.”
VALLEY FORGE, Pa. — PJM staff told the Operating Committee last week that questions still remain about why their load forecast veered so far off course during a two-day spell of hot weather across the region last month.
Speaking at the committee’s Nov. 12 meeting, Rebecca Carroll, PJM’s director of dispatch, said staff’s backcasting analysis found that an early-arriving cold front in the ComEd and FirstEnergy zones on Oct. 2 impacted temperatures during the two-hour demand response event, accounting for a portion of the 4,500 MW of anticipated load that never materialized on the system. (See PJM, Stakeholders Baffled by DR Event.)
That same analysis, however, revealed that temperatures in the Mid-Atlantic and AEP zones were higher than initially forecast — meaning the missing load and unusual price signals have a different, unknown cause.
“According to all of our data, the load in AEP should have come in higher and quicker and more significant than what it did, even though we called the pre-load management in this area,” she said. “There’s several hundred megawatts we can’t account for.”
The trouble began Oct. 1, when PJM’s peak load exceeded its forecast by 5,500 MW, knocking the RTO into a spinning reserves event and triggering shortage pricing for three five-minute intervals. Carroll said PJM also called upon 800 MW of shared reserves from the Northeast Power Coordinating Council to compensate.
The following morning, operators lost a 765-kV line in the AEP zone, and 2,000 MW of generation called upon the day before failed to start. Those losses, in combination with a peak load forecast of 131,000 MW and anticipated congestion over the Hyatt transformer and the Peach Bottom-Conastone 500-kV line, prompted staff to call up 725 MW of long-lead DR resources for a pre-emergency load management event. The decision triggered a performance assessment interval (PAI) that lasted from 2 p.m. until approximately 4 p.m. in the AEP, Dominion, Pepco and BGE zones.
What should have happened next, according to several stakeholders, was a rise in LMPs for those zones, set by DR operating during the PAI. Instead, prices in the AEP zone tanked, and 4,500 MW of load never came onto the system.
PJM had hoped backcasting could solve the mystery of the missing megawatts, but Carroll said last week that more answers will likely come when the official DR data become available next month.
“I don’t buy this missing load argument,” said Dave Mabry, of McNees Wallace & Nurick. “I’m not sure we’ve got a missing load issue as much as we have a forecast issue. It seems like there is something else going on with the backcasting.”
Zonal contribution to load forecast error on Oct. 2, 2019 | PJM
Mabry suggested that a large industrial-use customer participating in DR could account for the “missing nodal load” — a possibility that Joseph Mulhern, a senior engineer at PJM, said staff were still considering.
“That’s one of the things that we are trying to look into now … mapping the nodes where we see this behavior to demand response customers,” he said. “It’s the first time we’ve looked into anything like this, so we aren’t sure what we will get or what the outcome will look like.”
He said staff attribute “a significant amount of missing load to DR,” but not all of it. He also said a lack of visibility at the distribution level and the rarity of 90-degree weather in October may also have played a role.
“When there is an unusual day that’s not got a lot of history, that can lead to errors,” he said.
Black Start Packages Anticipated in ‘Early 2020’
PJM’s Janell Fabiano said that stakeholders will present new rules for black start resource fuel requirements in “early 2020.”
Stakeholders began meeting in July 2018 to reconsider whether the existing fuel requirement of 16 hours proved sufficient given PJM’s focus on resilience in recent years. The group is also considering ways to mitigate high-impact, low-frequency events across all black start resources and fuel types.
The D.C. Office of the People’s Counsel, Calpine, PJM and Monitoring Analytics continue to work on four similar plans to define fuel assurance and tweak the hourly reserve requirement. Fabiano said stakeholders will bring the finalized packages to both the OC and the Market Implementation Committee for votes early next year. Changes will not move forward without support from both committees, she said.
Winter Weekly Reserve Target Endorsed
The OC endorsed weekly winter reserve targets for 2019 that remain unchanged from last year. The targets for December, January and February are 22%, 28% and 24%, respectively.
Part of the reserve requirement study, the targets help staff coordinate planned generator maintenance scheduling during the winter and cover against uncertainties associated with load and forced outages.
PJM also sets a 0% goal for its loss-of-load expectation (LOLE) in the winter, preferring instead to expect higher LOLEs throughout the summer.
The committee also endorsed PJM’s new day-ahead scheduling reserve requirement (DASR) of 5.07%.
The DASR is the sum of the requirements for all zones within PJM and any additional reserves scheduled in response to a weather alert or other conservative operations.
PJM will seek endorsement for the change at the Markets and Reliability Committee and implement the new requirement in Manual 13 revisions.
Stakeholders Sunset NERC Ratings Initiative Task Force
Stakeholders approved PJM’s request to sunset the 2011 NERC Ratings Initiative Task Force.
The group held more than 30 webinars over three years to address a NERC alert that asked RTOs to “verify that field conditions are consistent with established ratings.”
The task force created an automated process to notify members of pending NERC outages. Since adopting the new procedures, PJM has received 1,386 outage and derate tickets, completing about 65% of submitted requests. About 9% impacted the system, according to PJM’s data.
OC Meetings Moving to Thursday in 2020
PJM’s standing committee week will look a little different in 2020.
The OC will convene on Thursdays, while PJM’s Planning Committee and Transmission Expansion Advisory Committee will move to Tuesdays. The MIC will remain on Wednesdays.
PJM Manuals Endorsed
Manual 03A: Energy Management system (EMS) Model Updates and Quality Assurance (QA) — Cover-to-cover periodic review. Adds a new section on PJM’s modeling philosophy.
Manual 3: Transmission Operations — Cover-to-cover periodic review. Updates dozens of terms and values in sections 1, 3, 4 and 5 and Attachments A and B.
Manual 14D: Generator Operational Requirements — Minor changes identified through the Distributed Energy Resources Ride Through Task Force that apply to distribution-connected generators connected to radial distribution lines of voltage less than 50 kV. The revisions also direct DERs to appropriate transmission owner engineering and construction standards, a standalone document on PJM’s website. The term “generating facilities” was also added in section 7.1.1: Generator Real-Power Control.