Page 1614 – RTO Insider

August 29, 2016

ERCOT Technical Advisory Committee Briefs

AUSTIN, Texas — Acting on a request from Texas Gov. Greg Abbott’s office, ERCOT has drafted a revision to its planning guide requiring energy developers to notify the Department of Defense of any projects near military installations.

The planning guide revision request (PGRR 047) was unanimously approved by ERCOT’s Technical Advisory Committee last week and will be considered by the Board of Directors during its Oct. 11 meeting.

The revision requires developers seeking an interconnection agreement to include among their materials a signed affidavit that they have notified the department of its proposed project and requested its review. The declaration only requires the initiation of an informal review, not its completion.

The proposed change is in response to requests by the governor’s office and the Defense Department to require that any proposed construction covered under existing federal regulations “confirm that they have provided notice and obtained review from the [Federal Aviation Administration] and DOD to the extent required under federal law.”

Current federal regulations require any structure constructed above certain height limits (approximately 200 feet) or in proximity to military and civilian airports provide notice to the FAA and DOD siting clearinghouse.

Several projects have recently brought the issue of federal notification to the forefront.

Sheppard Air Force Base near Wichita Falls has said proposed wind developments nearby would interfere with its radar and flight training operations. A proposed wind farm near Corpus Christi in South Texas has drawn concerns that it could impact training missions at two nearby U.S. Navy airbases, despite FAA’s conclusion to the contrary. (See “FAA Stands by its Greenlight for Proposed Wind Farm,” Federal Briefs.)

Speaking before the Texas House of Representatives’ Defense and Veterans Affairs Committee on Aug. 24 in Wichita Falls, ERCOT Director of System Planning Warren Lasher said he wants to see “increased coordination and communication” between the military and wind energy developers to resolve conflicts. “This will ensure that all energy developers check with DOD well before” the developments are put into motion, he said, according to an account in the Times Record News.

The TAC ensured the proposed rule would only affect developments that are not already connected to the power grid. The committee set Nov. 1, 2016, as the effective date for the change, after staff tracked down Lasher at a Public Utility Commission of Texas meeting for his approval.

Related legislation is expected to be proposed when the Texas Legislature begins its 2017 session in January. A Wichita Falls representative is considering filing a proposal that would affect tax abatements for some wind projects near military bases, while a New Braunfels legislator has said she would intervene if an energy project endangered military missions, the Times Record News reported.

Changes in TAC Leadership

Last week’s meeting marked the end of Randa Stephenson’s tenure as TAC chair. Stephenson, of the Lower Colorado River Authority, was recently named the utility’s vice president of wholesale markets and support.

Stephenson said her new job came with additional responsibilities that would preclude her continued role as TAC chair. She said she was disappointed but would continue to participate through the end of the year.

ERCOT Technical Advisory Committee — Vice Chair Bob Helton, GDF Suez; Chair Adrianne Brandt, CPS Energy; ERCOT COO Cheryl Mele © *RTO Insider*

“Are you really disappointed?” asked ENGIE’s Bob Helton, to peals of laughter.

Stephenson “has been a workhorse for the TAC process for many, many years,” said CPS Energy’s Adrianne Brandt, who was unanimously approved as Stephenson’s replacement. “She’s given us almost five years of TAC leadership. It’s a lot of work and a thankless job.”

Helton was unanimously approved as the TAC’s vice chair, replacing Brandt.

TAC Sends 16 More Change Requests to Board

The committee sent 16 other revision requests to the board, endorsing eight Nodal Protocol revision requests (NPRRs) and eight revisions to the nodal operating guide (NOGRRs), the planning guide and the retail market guide (RMGRRs). All but one of the requests passed unanimously.

In addition, the TAC tasked the Wholesale Market Subcommittee to develop a long-term solution for reliability-must-run mitigated offers after a related rule change failed on appeal last month at the committee and this month before the board (NPRR 784). (See “Board Rejects RMR Mitigated-Offer Appeal, Lets Stakeholder Process Move Forward,” ERCOT Board of Directors Briefs.)

“In our discussions with stakeholders, it seems there’s general support for a long-term solution gravitating around placing RMR offers last in the stack,” said NRG Texas’ Bill Barnes, who has championed the revision request.

The 16 revision requests approved are:

NPRR 753: Gives non-modeled generators the option of using the advanced metering system data submittal process and requires the installation of ERCOT-polled settlement meters to ensure the energy flows are reflected in real-time initial statements.
NPRR 760: Ensures that operating days with no activity are captured in the denominator for calculations of credit variables. It received two no votes and three abstentions.
NPRR 778: Changes competitive retailer rules regarding move-in or move-out date changes to prevent an inadvertent error. The change should eliminate two-thirds of manual interventions currently required.

A companion change, RMGRR 139, modifies market processes to align with NPRR 778’s proposed changes.

NPRR 779 and PGRR 048: Clarify references to the Texas Reliability Entity and the Independent Market Monitor. Current protocols refer to the Texas RE in both its capacity as the Regional Entity and the Public Utility Commission of Texas Reliability Monitor. The NPRR also removes the 24-hour deadline for ERCOT to notify the Reliability Monitor of a failure to provide ancillary services. The new language clarifies that the IMM is an included party in several provisions related to the ERCOT stakeholder process.
NPRR 782: Removes inconsistencies in protocol language by changing the equations governing the settlement of ancillary services. The change affects resources unable to deliver on their ancillary services obligations because of transmission constraints.
NPRR 785: Allows ERCOT to automatically prepopulate current operating plans (COPs) for wind and photovoltaic resources with the most recent forecast for the next 168 hours. Qualified scheduling entities representing these resources can either submit the prepopulated forecast as the COP by default or submit a lower number.
NPRR 786: Corrects the allocation of transmission losses, distribution losses and unaccounted-for energy (UFE) so that negative loads do not result in loss of UFE allocations.
NPRR 787: Removes the requirement that the qualified scheduling entity receiving a verbal dispatch instruction confirmation include the name of the individual that received the confirmation within the electronic acknowledgement.
NOGRR 150: Moves voltage-support obligation language to the Operating Guide so that the requirements are recognized as binding. It also allocates voltage-support responsibility to the appropriate entity, and clarifies that the ERCOT transmission operator has the authority to instruct a QSE to modify its resource’s voltage set point.
NOGRR 158: Modifies language in the nodal operating guide relating to limits on hydro resources’ responsive reserve to ensure consistency with NPRR 669.
PGRR 049: Removes the option to submit generation interconnection or change request (GINR) applications through standard mail or fax and updates the mailing address for GINR payments to the ERCOT treasury department.
RMGRR 134: Gives non-modeled generators the option to use the advanced metering system data-submittal process and clarifies processes for unregistered distributed generation versus registered non-modeled generators.
RMGRR 140: Removes the current date restrictions to give ERCOT increased flexibility when executing a competitive retailer’s acquisition of another retailer’s customers to prevent a “mass transition event.” The change will prevent end-use customers from being transitioned to provider-of-last-resort service and reduces associated uplift to the market.
RMGRR 141: Clarifies procedures during an extended unplanned system outage.

– Tom Kleckner

August 29, 2016

Wildlife Refuge Preps for Trial Against ATC Clear-Cut

By Amanda Durish Cook

A Wisconsin wildlife hospital’s dispute with American Transmission Co. over its “Grandfather Spruce” tree will go to trial after a judge this month denied the utility’s motion to dismiss the case.

Yvonne Wallace Blane and Steven Blane, founders of Fellow Mortals Wildlife Hospital in southeastern Wisconsin, filed the lawsuit in June against ATC after the company proposed to clear-cut a 50-foot easement into the 5-acre wildlife sanctuary for a 138-kV transmission line.

On Aug. 15, ATC’s motion to dismiss the case was denied by Walworth County Circuit Court, which also imposed a temporary restraining order preventing the company from cutting any trees or applying herbicides on the hospital’s property pending a four-day trial scheduled for Oct. 10.

Fellow Mortals’ lawyer Robert Kennedy, of law firm Rizzo & Diersen in Kenosha, said he plans to argue that the 1970 easement — between the property’s previous owners and ATC predecessor Wisconsin Power and Light — is ambiguous and intends that trees should be cut only if ATC’s lines are in danger.

A Wisconsin animal wildlife hospital won a temporary injunction to block American Transmission Co. from clear cutting trees along its 138- kV transmission line. The hospital says the trees provide their animals a “buffer” from the weather and traffic noise from the adjacent road. A 100-year-old Norway spruce towers above younger walnuts and other trees in summer (left), and winter (right).

‘Tough Case’

“We have a very tough case ahead because in one interpretation, we have a 50-year-old easement that does state that ATC can cut down any trees they want,” Kennedy said. “Our argument is the trees do not pose a threat.”

Kennedy said if ATC is allowed to clear-cut, it’s “very likely” that Fellow Mortals would have to shut down the sanctuary.

“ATC does not think Fellow Mortals is unique enough to warrant an exception, yet wildlife rehabilitation itself is an endangered resource,” said Yvonne Blane, who first opened the hospital with her husband, Steven, from their home in the mid-1980s before selecting the current location in 1994.

According to Blane, there were 229 licensed wildlife rehabilitators in Wisconsin in 2001; today there are 110. “Honestly, there aren’t a whole lot of wildlife hospitals like us left,” Blane said.

Blane said Fellow Mortals’ acreage used to be part of a farm that was split up following a house fire. “That simple farmer signed that easement so long ago because he had a kind heart. I don’t think he ever dreamed this would have happened,” she said. “I don’t think people think about easements, and this is a cautionary tale. Never ever find out later what contracts are tied to your property.”

Blane said she receives a letter from ATC “every few years” notifying them of trimming. Near the first of the year, Blane said she received another letter and assumed it was for routine trimming. “We worked with them in the past, and they’ve always been great,” she said.

However, Blane said she woke up one morning in February to see the area partitioned off with orange tape and blue X’s spray-painted on several trees.

“It’s a tremendous amount of wildlife habitat that they could be destroying,” said Kennedy, who first came across the hospital years ago when he brought in two orphaned woodchuck cubs.

Vegetation Management Plan

ATC says its vegetation management plan will minimize service interruptions and create access for maintenance, and that pruning trees, as has been done in the past, is less efficient than cutting the tall-growing vegetation on a regular rotation.

Fellow Mortals Wildlife Hospital (aerial) - ATC — Aerial view of Fellow Mortals Wildlife Hospital *Source: Google Maps*

The company, which spoke to local media earlier in the dispute, is no longer commenting because of the litigation. Spokesperson Alissa Braatz would only say that the company is “removing all incompatible vegetation from the easement area for safety and reliability purposes.”

The Blanes say that mature trees and dense undergrowth on the easement are necessary to provide the animals a buffer against wind, snow and noise from the adjacent road.

They also say they are willing to pay for trimming. An estimated 100-year-old Norway spruce, or “Grandfather Spruce” as Fellow Mortals staff refer to it, has been periodically trimmed for the nearly 50 years the easement has been in place, most recently in 2009.

“The idea is to keep these animals segregated from humans as much as possible,” Kennedy said.

The Blanes posted photos on Facebook to show the spruce in winter, when it “alone buffers the wind and snow and noise and provides screening and privacy” for the wildlife. There is additional cover from young walnut trees and other vegetation “during the busy summer months, when traffic on rural Palmer Road is nearly constant,” they wrote.

Hawks, Woodchucks and Deer

Unlike other animal rescue facilities that transfer wildlife elsewhere for care and rehabilitation, Fellow Mortals keeps its animals from the time they are admitted to when they’re released. Over the years, its patient list has included owls, hawks, rabbits, woodchucks, beavers and deer. The Blanes and their small staff have treated 1,400 animals so far in 2016.

Blane said the hospital treats about five large birds per year, including cranes that are admitted with leg fractures from colliding with transmission lines. She said the hospital has spent about $25,000 in donations so far on the case, and she regrets it can’t be spent on the “hundreds” of animals currently in the hospital’s care.

“We bought [the property] for the trees and the location,” Blane said. “Everything has been built around the property we chose. We were offered other property for free and turned it down. We created a very special place here that we thought would be around for a long time.”

Room for Settlement?

The couple argues that no power interruption incidents have ever occurred on their premises.

According to the Blanes, the spruce was recently examined by a certified master arborist and given a low risk of falling. Kennedy said he is prepared to call on a tree expert who can testify the spruce is “solid as a rock” and any weather event that causes the tree to fall would also cause severe damage to ATC’s lines.

Their attorney says the only suggestion ATC has offered Fellow Mortals in the dispute is not much of a compromise: The company has offered to plant low-lying vegetation after the trees are removed. Kennedy says that is not an option.

“We would accept some trimming, but we have pictures of the clear-cutting they’ve done in other places. It looks like a Brontosaurus rampaged it,” he said.

“There’s no question that it’s more profitable for ATC to clear rather than trim periodically. If you clear-cut, you can wait 20 years before sending crews back out. But it’s a cost-saving measure on the backs of all these landowners with nice forested areas,” Kennedy said.

Town Weighs In

The hospital’s online petition protesting ATC’s plans has gathered more than 86,000 supporters, nearing their 90,000 goal. It also gained an ally in the town of Geneva, which has an ordinance that requires town approval for all tree cutting and sharply restricts clear-cutting.

“As I am sure you are also aware,” Town Attorney Richard W. Torhorst wrote in a June 9 letter to ATC, “the Federal Energy Regulatory Commission takes the position that best practices relating to vegetation management does not require clear-cutting along the right of way.”

ATC attorney Christopher Zibart fired back with a letter the following day saying that the company recognized the state Public Service Commission — and not the town — as having “the authority to regulate this core public utility function.”

Fellow Mortals Wildlife Hospital - ATC — Street view of Fellow Mortals Wildlife Hospital *Source: Google Maps*

Zibart also swatted away Torhorst’s reference to FERC, noting that ATC’s line X-55 is below FERC’s 200-kV voltage threshold.

“In any event, the FERC does not manage specific vegetation practices and has stated that it does not ‘mandate nor prohibit’ removal of trees,” Zibart continued. “Where, as here, the specific trees in the right of way are incompatible with the line (they will continue to grow back into the lines and would not likely survive whatever ‘trimming’ could be done), it is best to remove them.”

The town attorney acknowledged that the town’s ordinance does give public utilities an exemption from obtaining a permit for tree trimming, but he said ATC is “not exempt from the prohibition against clear-cutting,” which allows exceptions only for residential properties.

‘Positive Balance’

ATC’s Braatz told local website MyWalworthCounty.com in June that the company hopes to reach a settlement that would include “compatible vegetation and fencing to help create the privacy and noise buffering that they desire.” The company has a Web page illustrating the low-lying plants it recommends for rights of way.

“We believe this would accomplish a positive balance between ATC’s responsibility for ensuring safe and reliable electric service and the Fellow Mortals’ compassion and commitment for healing wildlife,” she said.

“I think what ATC is doing is unethical and not community-minded, and I think there are employees in the company who are uncomfortable with how far this has gone,” Blane said. “I don’t know why it’s so important for ATC to be right except they might be afraid that this is going to set a precedent.

“The voltage has remained the same. The poles have remained the same. The only thing that’s changed is ATC’s policy.”

August 29, 2016

NIPSCO Considers Closing 4 Coal Units in 7 Years

By Amanda Durish Cook

Northern Indiana Public Service Co. said last week it may shut down one coal-fired plant and partially close another.

Though nothing has been finalized, NIPSCO officials said they are considering closing the two-unit Bailly Generating Station on Lake Michigan as soon as mid-2018 and idling two of the four units at the R.M. Schahfer Generating Station in Wheatfield, Ind., by 2023. NIPSCO’s plan was unveiled last week at a public meeting on its biennial integrated resource plan, which is due to the Indiana Utility Regulatory Commission on Nov. 1.

Bailly Generating Station (NIPSCO) -NIPSCO Considers Closing 4 Coal Units in 7 Years — Bailly Generating Station *Source: NIPSCO*

“Companies with aging coal-fired units are facing intense economic and environmental regulatory pressures that are driving important decisions today about how to meet the customer needs of tomorrow. Given these factors, we believe it may be in our customers’ best interests to retire some of NIPSCO’s coal-fired generation units,” Violet Sistovaris, NIPSCO executive vice president, said in a statement.

Sistovaris said NIPSCO would work closely with stakeholders to come up with a retirement strategy for inclusion in its IRP, which looks ahead 20 years.

The retirement dates coincide with the effective dates of EPA’s coal ash rule in 2018 and Effluent Limitations Guidelines in 2023.

Graycor Industrial Constructors completed a Wet Flue Gas Desulfurization system at NIPSCO's R.M. Schahfer Generating Station located in Wheatfield, Ind., in 2014 — Graycor Industrial Constructors completed a Wet Flue Gas Desulfurization system at NIPSCO’s R.M. Schahfer Generating Station located in Wheatfield, Ind., in 2014 *Photo Source: Graycor*

NIPSCO, which has invested more than $800 million in emission-reducing technologies for its coal-fired units, said compliance with the new rules would cost an additional $1 billion over seven years if it keeps its entire coal fleet operating.

Six years ago, 90% of NIPSCO’s generation capacity was coal-fired. Today, that figure is down to 72%. NIPSCO’s portfolio includes three coal-fired plants, one natural gas–fired station, two hydroelectric plants and purchased wind power.

The closures at Bailly and Schahfer would remove about 31% of NIPSCO’s total generating capacity. Bailly’s two units opened in 1962 and 1968; Schahfer’s four units were opened over 10 years beginning in 1976.

This month, the company said it would demolish its long-dormant Gary, Ind.-based Mitchell Generating Station over the next two years for $18 million. The plant was permanently closed in 2011.

August 24, 2016

UPDATED: California Legislature Approves Bill to Sharply Reduce GHG Emissions

By Robert Mullin

California lawmakers last week passed a bill to reduce the state’s greenhouse gas emissions to 40% below 1990 levels by 2030.

The State Assembly approved the measure on a 48-31 vote, largely along party lines. Two Democrats opposed the bill, with one abstaining, while just one Republican voted in favor. The bill breezed through the State Senate on a vote of 25-13 and is expected to be signed into law by Gov. Jerry Brown.

The bill builds on the California Global Warming Solutions Act of 2006, the landmark legislation that required the state to reduce its emission to 1990 levels by 2020. It also codifies an executive order issued last year by Brown, making it more difficult for a future governor to roll back efforts to reduce the state’s emissions.

“Today, the Assembly speaker, most Democrats and one brave Republican passed SB 32, rejecting the brazen deception of the oil lobby and their Trump-inspired allies who deny science and fight every reasonable effort to curb global warming,” Brown said in a statement in response to the Assembly’s vote.

“Today’s action sends an unmistakable signal to investors of California’s commitment to clean energy and clean air,” said Sen. Fran Pavley (D), author of the bill. “This will trigger more investment and more jobs in our thriving clean-energy sector and solidify California’s leadership in demonstrating to the world that we can combat climate change while also spurring economic growth.”

The bill affects the electric, manufacturing and transportation sectors. The state Air Resources Board (ARB) will determine specific reductions by industry.

Utilities — which could benefit from the electrification of the transportation fleet — have not opposed the bill and have been preparing for the change since last year’s executive order. The state’s renewable portfolio standard — 50% by 2030 — is expected to generate most of the needed reductions for the power sector. (See California Policy Goals to Require Significant Transmission Upgrades.)

california ghg emissions sb 32 — Oil industry lobbying efforts unexpectedly stalled SB 32 in California’s assembly last year, but supporters wrangled a comfortable margin to pass the bill during the current session. *Photo of Valero Benicia Refinery*

The oil industry lobbied hard against the legislation, which faced uncertainty since stalling in the Assembly last summer. Prospects soured after a group of Democrats representing low-income communities opposed the bill based on concerns that efforts to reduce the carbon content in gasoline would translate into higher fuel prices, which disproportionately affect people with lower incomes. Some lawmakers also complained that the bill provided the ARB with too much latitude to develop and implement emission-reduction programs without sufficient public oversight.

To address both concerns, the legislature last week passed a companion bill (AB 197) that will put two legislators on the ARB as nonvoting members and require the board to report annually to a newly created joint legislative committee on climate change policies. It also directs the ARB to prioritize emissions rules and regulations that limit economic impact on the state’s disadvantaged communities and regions reliant on agriculture.

Implementation of SB 32 was contingent on the passage of AB 197.

The current version of SB 32 does not extend the state’s cap-and-trade system, which is set to expire after 2020. The California Chamber of Commerce is challenging the program in court, contending that the emissions trading scheme constitutes a tax requiring approval by a two-thirds majority of the legislature.

That legal uncertainty has undermined investor confidence in the market for California carbon credits. The ARB-run auction Aug. 16 saw buyers pick up less than 35% of available allowances, following a dismal 10.5% showing in May. Previous auctions have typically been fully subscribed, providing significant revenues for the state.

Still, in light of last week’s Assembly vote, Brown expressed optimism about the program.

“With these bills, California’s charting a clear path on climate beyond 2020 and we’ll continue to work to shore up the cap-and-trade program, reduce super pollutants and direct more investment to disadvantaged communities,” Brown said.

August 24, 2016

Eversource, National Grid Withdraw Requests to Bill for Pipeline

By William Opalka

Eversource Energy and National Grid have withdrawn their requests to bill electric ratepayers for natural gas capacity from the proposed Access Northeast pipeline project, bowing to a ruling by the Massachusetts Supreme Judicial Court.

The filings made Monday for their four electric distribution companies followed the court’s Aug. 17 decision vacating an order by the state Department of Public Utilities approving pipeline capacity contracts. (See Mass. Supreme Court Vacates EDC-Pipeline Contract Order.)

Last week, state Attorney General Maura Healey filed a motion asking the DPU to dismiss the contracts.

Eversource spokesman Michael Durand said the companies’ filings with the DPU were a formality in light of the court’s decision. “This does not affect our commitment to the project. We remain committed to working with the New England states to provide the infrastructure so urgently needed to ensure reliable and lower-cost electricity for customers,” he said.

“The companies reserve the right to seek department approval of the same or similar agreements in the future to the extent that, in the future, there is a change in relation to the department’s legal authority to approve such agreements,” Eversource wrote. National Grid made an identical filing on behalf of its EDCs.

Eversource and National Grid are co-sponsors of Access Northeast, which developer Spectra Energy says will deliver 925,000 dekatherms/day of natural gas to the New England power market.

Spectra spokesman Creighton Welch said the company is not giving up on the pipeline. “There is a sizeable need for natural gas throughout New England that is unabated by the court’s decision,” Welch said. “Therefore, our path forward is clear and our mission to re-establish the Massachusetts contribution is full-speed ahead. We are confident that, ultimately, the interests of New England’s consumers will prevail with desperately needed gas supply made available by Access Northeast.”

The Conservation Law Foundation, the successful plaintiff in the case, said the EDCs had no choice. “The Massachusetts Supreme Judicial Court made it clear last week that electric companies can’t gamble on pipelines with the hard-earned money of businesses and families across our state. That is exactly what these contracts would have done, and so Eversource and National Grid had no choice but to face reality and withdraw their proposals,” spokesman Josh Block said.

August 22, 2016

Texas PUC Grants ERCOT, SPP More Time to Study LPL Move

By Tom Kleckner

The Public Utility Commission of Texas last week granted ERCOT and SPP staff’s request for a five-week extension before reporting back on how they will together study Lubbock Power & Light’s planned move to ERCOT.

Commission Chair Donna Nelson acknowledged the complexity of analyzing LP&L’s integration into ERCOT and its impact on SPP’s neighboring grid. “We have to assume [ERCOT and SPP] are moving as quickly as they can,” Nelson said during the PUC’s Aug. 18 meeting. “We’ll give you this extension, but don’t ask for another.”

The commission last month detailed specific issues the RTOs should analyze and asked them to produce a study scope before its August open meeting. The PUC has regulatory oversight of ERCOT and would have to approve LP&L’s migration to the Texas grid (Docket No. 45633). (See PUCT Asks ERCOT, SPP to Coordinate on Lubbock P&L Move.)

ERCOT’s director of system planning, Warren Lasher, and SPP’s vice president of engineering, Lanny Nickell, responded with a joint letter Aug. 11 saying they were “not yet able” to provide a firm schedule for completing the analyses. They promised a “more definitive response” for the commission’s Sept. 22 open meeting.

“At that time, ERCOT and SPP expect to be able to provide more information regarding the coordinated studies, including technical details and a more informed estimate of the study schedule,” they said.

“I look forward to hearing from them. Go forth and do good,” Nelson said.

According to the letter, staff have met four times since the July 20 PUC meeting, comparing their transmission-planning study processes and discussing study approaches and project schedules. Lasher and Nickell noted the two RTOs have not worked together on transmission-planning studies in the past and said differences in their study processes meant they would not be able to supply the requested details before last week’s PUC meeting.

The two officials said the study could be completed as early as the second quarter of 2017.

Last September, LP&L announced its intention to disconnect 430 MW of its load from SPP and join ERCOT in June 2019. An ERCOT study completed in June indicated it will cost $364 million and take 141 miles of new 345-kV right of way to incorporate LP&L.

El Paso Electric, SWEPCO Settlements

In other actions, the PUC approved a settlement with El Paso Electric allowing the utility to build a voluntary community solar pilot program (Docket No. 44800) and a settlement in which Southwestern Electric Power Co. will pay $23,000 for violating reliability and service standards when it fell behind in tree trimming (Docket No. 46117).

The SWEPCO order gave Commissioner Ken Anderson a chance to speak out on one of his pet peeves. “Tree trimming needs to be done on an annual basis,” he told SWEPCO representatives. “You’re in East Texas, where things actually grow.”

PUC staff are working on a study evaluating Texas utility tree-trimming practices.

Cost Allocation for Seams Projects

Nelson and Anderson also briefly discussed holding a special meeting involving MISO and SPP staff to gather their input on allocating costs for seams projects. Anderson, a member of the Organization of MISO States, said Missouri representatives have questioned whether the interregional planning changes FERC ordered for MISO and PJM should also apply to MISO’s seams with SPP and ERCOT.

Acting on a complaint by Northern Indiana Public Service Co., the commission in April ordered MISO to reduce its minimum voltage threshold for interregional economic transmission projects from 345 kV to 100 kV and to eliminate the $5 million cost threshold for such projects. It also ordered the removal of the requirement for a third, separate benefit-cost analysis for the combined regions (EL13-88). (See FERC Orders Changes to MISO-PJM Interregional Planning.)

August 22, 2016

Federal Briefs

Deepwater Wind announced it has completed the 30-MW, five-turbine Block Island Wind Farm, an announcement that drew the praise of the National Ocean Industries Association and others, including the Sierra Club.

“The completion of any offshore energy project is no small feat; the road from concept to completion can be very lengthy and rife with challenging regulatory hurdles, unanticipated permitting delays, and vocal environmental opposition alongside enthusiastic public support,” NOIA President Randall Luthi said.

“Our untapped offshore wind energy potential is enormous and it holds the key to creating thousands of good paying clean energy careers, cleaning up the dangerous fossil fuel pollution endemic in many our coastal cities, and provides another effective solution to addressing the climate crisis,” said Mary Anne Hitt, director of Sierra Club’s Beyond Coal Campaign.

More: Morning Consult; USA TODAY

EIA: CO2 from Natural Gas to Surpass Coal

For the first time in more than 40 years, carbon emissions from natural gas this year are expected to exceed those from coal, according to data released last week by the Energy Information Administration.

Though natural gas is less carbon-intensive, Americans are using more of it, as the country eases its reliance on coal-fired generation.

At the same time, annual carbon intensity rates have been decreasing, in part because of the growing consumption of carbon-free generation such as nuclear and renewable power.

More: StateImpact

DOE: US a World Leader In Wind Generation

The U.S. remains No. 1 in the world for electricity generated by wind power and No. 2, behind China, for wind power capacity, according to an annual report released last week by the Energy Department and its Lawrence Berkeley National Laboratory.

Nearly 8,600 MW of wind capacity were installed in the U.S. in 2015, a 77% increase over the previous year’s installations.

By comparison, China installed 30,293 MW of wind capacity last year.

More: Windpower Engineering & Development

River Group Sues Portland General over Dam Operation

An Oregon environmental group has sued Portland General Electric in federal court, alleging that the utility’s dam operations along the Deschutes River are violating the Clean Water Act.

The focus of the lawsuit is a $100 million, 273-foot underwater tower and fish-collection facility that PGE built in 2009 in partnership with the Confederated Tribes of Warm Springs, co-owner of the Round Butte Dam.

The Deschutes River Alliance alleges the tower’s operation violates standards for water temperature and dissolved oxygen, while also contending that the Oregon Department of Environmental Quality is not enforcing water quality standards. The utility countered that the facility is intended to restore salmon and steelhead runs and that restoration will entail a long-term effort.

More: The Bulletin

NASA Study Shows Methane Hot Spot Comes from Natural Gas Leaks

Researchers say an unusual concentration of the atmospheric methane over the Southwest appears to come mostly from leaks in natural gas production.

NASA’s Jet Propulsion Laboratory and the California Institute of Technology released a report Aug. 15 that listed more than 250 sources of a methane hot spot over the Four Corners region, including gas wells, storage tanks, pipelines and processing plants. Only a handful were natural seeps from underground formations, according to researchers. The study said about 25 locations are responsible for most of the methane leaks.

Evidence of the hot spot dates back to 2003, and a satellite image released in 2014 showed it in vivid color, but the origin wasn’t clear until recently. The new study identified the sources with spectrometers aboard aircraft that flew 3,000 to 10,000 feet above the ground over about 1,200 square miles in the Four Corners in April 2015.

More: The Associated Press

Dakota Access Says It Will Halt Until Hearing

Developers of the Dakota Access Pipeline said last week they will halt construction on the $3.8 billion oil pipeline that is to run from North Dakota to Illinois pending a hearing in federal court in D.C. this week. The Standing Rock Sioux Tribe is suing regulators for issuing permits for the pipeline that the tribe says goes through sacred land and poses a threat to its drinking water.

Members of the tribe and its supporters blocked construction equipment last week while it waited for its request for a temporary injunction, which was approved this week.

More: The Associated Press

Judge Erred in Blocking BLM Fracking Rules, Law Profs Charge

Law professors arguing for the Obama administration said that a judge was mistaken when he ruled against the Bureau of Land Management’s rules concerning fracking on federal land.

The bureau in 2015 issued rules that would have required energy companies to disclose what materials they used in the fracking process. District Judge Scott Skavdahl of Casper, Wyo., vacated the rules, saying the bureau didn’t have the authority to regulate fracking.

In his ruling, Skavdahl pointed to an article written by Florida State University professor Hannah Wiseman to support his conclusion. Wiseman, however, joined 35 other law professors in a brief filed with the 10th U.S. Circuit Court of Appeals, saying the judge misinterpreted her piece.

More: The Associated Press

NRC Reports Violations at Entergy’s FitzPatrick Plant

The Nuclear Regulatory Commission released a report citing Entergy’s James A. FitzPatrick nuclear plant for two violations of “very low safety significance,” including sending workers into high radiation areas without first meeting with the plant’s radiation protection department and for failing to address a long-term radioactive leak.

The report, which covered the second quarter of 2016, said an atmospheric control system failed and was not addressed within the required 30 days. It also cited the plant for allowing radioactive material to escape from a filter sludge tank in the radioactive waste building, though no radiation was leaked into the atmosphere.

Entergy says it has developed a corrective action that will be implemented within the next month.

More: CNY Central

August 22, 2016

Vice President of Finance Biggers Exits MISO

Vice President of Finance Jo Biggers has left MISO after 16 years, the RTO announced last week.

MISO CEO John Bear and Biggers in 2015 (MISO) MISO CEO John Bear and Biggers in 2015 (MISO) - vice president of finance jo biggers exits miso — MISO CEO John Bear and Biggers in 2015 *Source: MISO*

MISO said Biggers exited her position “to pursue other opportunities” and that it is beginning a search for a replacement. Biggers was responsible for procurement, facilities, accounting and FERC financial reporting. She joined MISO in August 2000, remaining in the same position throughout her tenure.

Until a replacement is found, MISO has delegated corporate service tasks to Senior Vice President of Compliance Services Steve Kozey. Finance and corporate planning responsibilities will be handled by Vice President of Strategy and Business Development Wayne Schug.

MISO declined to comment further on the departure. Beyond its short announcement, spokesman Jay Hermacinski said the RTO did not “have anything else to add.” Biggers could not be reached for comment.

— Amanda Durish Cook

August 22, 2016

5 Resource Scenarios Presented to ISO-NE Planning Advisory Committee

By William Opalka

WESTBOROUGH, Mass. — ISO-NE last week presented the five scenarios it will evaluate in its 2016 Economic Study, which envisions continued reliance on natural gas, renewables, energy efficiency and demand response.

The RTO is in the early stages of Phase I of the two-phase study, which will look at projected needs for 2025 and 2030.

The draft study will analyze the following futures:

The generation fleet meets existing renewable portfolio standards, with natural gas combined cycle units replacing any retiring units and filling any installed capacity requirement shortfalls.
The same as Scenario 1 except that all additional capacity needs, including retirements, are met with new renewable/clean energy resources, including nuclear power.
The “RPS-plus scenario” assumes additional renewable/clean energy resources above existing RPS requirements.
The “no retirement scenario” is the same as Scenario 1, except that RPS requirements are met by renewable/clean energy resources that are interconnected to the system, under construction or approved as of April 1, 2016, with alternative compliance payments — which would support renewable energy projects — used to meet any remaining RPS requirements. Combined cycle plants meet any installed capacity shortfalls.
The same as Scenario 4, except that retired units are replaced with combined cycle plants to meet installed capacity requirements.

Most of the scenarios reflect the region’s commitment to renewable generation and its shift away from coal and oil. “We see little to no generation from oil-fired units,” Michael Henderson, ISO-NE director of regional planning and coordination, told the Planning Advisory Committee on Wednesday.

In Scenarios 1, 4 and 5, fossil-steam resources burn oil, coal and natural gas at existing locations. Scenarios 2 and 3 have very large amounts of zero-dispatch-cost resources such as wind, energy efficiency and solar photovoltaic. And while Scenario 3 adds new import capability, energy imports are about the same as the other scenarios for 2030 because of the large-scale addition of zero-cost resources.

That is especially pertinent following Massachusetts’ approval of legislation requiring the procurement of large amounts of Canadian hydropower and offshore wind. (See Massachusetts Bill Boosts Offshore Wind, Canadian Hydro.)

Phase I will consist of traditional economic study analyses, with an emphasis on production costs.

Phase II will supplement Phase I by discussing several market and operational issues, including Forward Capacity Auction clearing prices, intra-hour ramping, regulation and reserve requirements and access to natural gas.

A draft report is expected to be completed in the fourth quarter.

August 22, 2016

California Policy Goals to Require Significant Transmission Upgrades

By Robert Mullin

California must significantly upgrade its transmission system in order to meet its 2030 target of generating 50% of its electricity from renewable resources, according to an interagency study.

“We have either the seventh or eighth largest economy in the world — we need a grid to match that,” state Secretary for Natural Resources John Laird said during an Aug. 15 workshop to discuss the second iteration of the state’s Renewable Energy Transmission Initiative (RETI 2.0). The first initiative focused on helping the state meet a 33% renewable portfolio standard.

But there is uncertainty about the amount of new renewables needed to fulfill the 50% RPS — as well as the most cost-effective transmission solutions required to reach whatever resources are selected.

“It’s very difficult to predict what load will be” in the future, said California Energy Commission Chair Robert Weisenmiller, pointing out that demand for renewables — like other types of generation — will ultimately be driven by economic growth, the penetration of vehicle electrification and the success of the state’s “very aggressive” energy efficiency goals.

State officials conceived RETI 2.0 to determine what combination of renewable resources could meet their environmental goals most cost-effectively and what transmission will be needed to deliver their output. The initiative also seeks to identify the land use and environmental issues that could constrain development and access to resources.

The intended result: an “accelerated, agency-driven, high-level assessment to inform future planning and regulatory proceedings,” according to project director Brian Turner, of the state’s Natural Resources Agency.

Two Policy Developments

Two major policy developments last year drove the development of the initiative.

The first was Gov. Jerry Brown’s executive order directing California agencies to reduce the state’s greenhouse gas emissions to 40% below 1990 levels by 2030. That goal has so far failed to win legislative backing to become codified into law.

The second development was passage of SB 350, which not only increased the state’s RPS to 50% by 2030, but also set higher standards for energy efficiency in buildings, ensured utility progress toward GHG reductions, expressed intent to expand CAISO into other areas of the West and encouraged electrification of the state’s transportation fleet.

Those overlapping objectives are creating challenges for resource planners.

“How do you translate the high-level goals for SB 350 and the executive order into quantifiable objectives?” Turner asked. “How much [renewable resources] might we need to meet the 50% [RPS] by 2030?”

The initiative’s findings indicate that an additional 25 to 108 TWh of renewables will be needed, depending on growth in vehicle electrification, adoption of behind-the-meter solar and the success of energy efficiency programs.

That translates into 7,000 to 31,000 MW of new capacity, assuming a 40% average capacity factor — or 9,000 to 41,000 MW assuming a 30% capacity factor.

Adding to the uncertainty is that a 40% economy-wide GHG reduction could require the equivalent of a 55 to 60% RPS for the state.

Planners working on the initiative found that “environmental and land use constraints tend to favor in-state solar and out-of-state wind” for meeting mandates, but “determining the environmental and transmission access feasibility for in-state wind may [also] be a priority,” according to Turner.

He also said that while low-cost solar is “ubiquitous” in California, a focus on resource and technology diversity would be more cost-effective because of the “long-term integration challenges” posed by an overreliance on solar. Geothermal may offer “important benefits” by 2030, but more investigation is needed into the costs, benefits and transmission access to those resources.

‘Broad Support’

The planners also found “broad support” among industry participants for further assessing procurement of out-of-state resources, with a focus on high-quality, low-cost options that would be complementary to in-state resources. That task is made difficult by a lack of information about the potential for developing the resources themselves and the transmission options for reaching them absent a broader study in cooperation with other Western states, an issue the initiative is seeking to address.

The subject of transmission access fell to the RETI 2.0 Transmission Technical Input Group (TTIG), led by Neil Millar, CAISO’s executive director of infrastructure development.

Fully Deliverable

Millar said that California has sufficient transmission capacity to fulfill the state’s 33% by 2020 RPS, but more will be needed to meet the 50% RPS with “full deliverability” for additional renewable resources. While the TTIG estimates that there is “significant transmission available to accommodate resources beyond 33% on an ‘energy only’ basis” — which would allow for quicker and less costly interconnection — those resources would be subject to curtailment.

Under California regulations, a generating resource is considered “fully deliverable” if its output can reach its intended load sink without hitting constraints — which typically requires a contracted path from a generator to a utility service area. The state’s rules also allow a utility to count those resources toward its resource adequacy requirement. “Energy-only” resources have no such requirements for deliverability and cannot be counted as capacity.

“The sufficiency of [energy-only resources] from a policy perspective is yet to be determined,” the group found.

To explore potential transmission solutions, the group evaluated seven internal and four transmission assessment focus areas to determine what transmission upgrades would be necessary to make new renewables fully deliverable into each area’s load centers.

For example, the San Joaquin focus area can currently handle 1,823 MW of deliverable and 3,131 MW of energy-only capacity, but developing another 5,000 MW of deliverable capacity to accommodate new resources would require upgrades costing about $440 million. Some areas — like the Tehachapi — would require few upgrades, while other areas require much more to open up renewable development.

Sushant Barave, a lead transmission engineer with CAISO, pointed out that transmission capacity is dynamic.

“Resource additions in one area may impact availability in other areas,” Barave said, adding that mitigating a constraint that limits flows through multiple focus areas would be the most cost-effective approach to planning.

Barave noted that energy-only resources might require less extensive upgrades, prompting CAISO CEO Steve Berberich to ask that a comparison between energy-only and fully deliverable requirements be made explicit in the group’s final report, to be published later this year.

The group also concluded that any out-of-state resources being delivered into California will be injected into one of the focus areas, subjecting new imports to the same transmission constraints as those faced by internal resources.

The potential for renewable imports from other areas of the West is still something of a blind spot for California grid planners. To remedy that, RETI 2.0 created the Western Outreach Project to “gather stakeholder input from across the Western Interconnection regarding the availability of renewable energy and transmission that could contribute to meeting California’s renewable goals,” according to Keegan Moyer, an Energy Strategies consultant working on the project — a collaboration with the Western Interstate Energy Board.

Key Questions

The project is looking to answer a number of key questions, including:

How much additional renewable development is likely in the West?
Where — and in which technologies — is development of renewables likely to occur over the next 15 years?
How will the future mix of renewables affect daily and seasonal power flows in the Western Interconnection?
What load centers could potentially import surpluses from California?

The project also seeks to determine the existing load capacity to deliver power from high-quality renewable areas into California — and what constraints limit additional deliveries.

“How would different expansion options affect deliverability to and from California?” Moyer said.

Another project task is to gain insight into generation fleet trends, including coal plant closures that could free up transmission capacity in the interior West and possible changes to hydroelectric utilization in the Northwest.

The project will also seek to answer the question of how increased use of dynamic scheduling, conditional firm and energy-only resources, and other renewable procurement arrangements will impact transmission availability and needs.

“It’s pretty clear that we have a lot of options,” Weisenmiller said. “We have to do it in a way that minimizes environmental and economic impacts.”

“I think significant progress is being made,” said Michael Picker, president of the California Public Utilities Commission. “The goal here, I think, is to reuse as much as we can, so we don’t have to go new.”

“In the old paradigm we were looking at renewables. Now we’re looking at greenhouse gases,” Weisenmiller said. “We’re in a brave new world that will require a lot of new thinking about how the pieces fit together.”