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October 31, 2024

Panelists Discuss Electric, Election Security Intersections

MINNEAPOLIS — With widespread security concerns over next week’s U.S. presidential election and the Canadian federal elections in 2025, panelists at last week’s GridSecCon said the institutions serving electric reliability are “absolutely critical” for ensuring the elections remain safe and secure. 

The Electricity Information Sharing and Analysis Center (E-ISAC), which co-sponsored the 13th annual conference with the Midwest Reliability Organization, decided to hold an election security panel after repeated warnings about the “complex and dynamic” threat landscape facing U.S. and Canadian election infrastructure, according to E-ISAC Vice President of Security Operations and Intelligence Matt Duncan.  

“It’s more than just a presidential election that can be influenced,” Duncan said, reminding the audience of warnings from security experts and the federal government about cyber campaigns by foreign adversaries including China and Iran. (See Agencies Describe a Year of Iran Cyber Attacks.) “We have very close races in the House and Senate and state houses across the country, and our adversaries know that.” 

The links between election security and grid security go beyond the fact that both are critically important, panelists said. Timothy Davis, senior elections cyber threat analyst at the Elections Infrastructure ISAC (EI-ISAC), observed that threat actors “use a lot of similar tactics, no matter who they’re targeting,” which means security professionals in both sectors can share their experiences to strengthen each other. 

Spencer Wood, an election security adviser for the Cybersecurity and Infrastructure Security Agency (CISA), said physical security is as important as electronic hygiene. Describing the “horrid amounts of violence and rhetoric” that he has seen directed against election workers across the country, Wood added that state officials also need to be prepared for disruptions to the grid — both deliberate and accidental. 

“There will be power outages on election day. A squirrel will decide to jump on a transformer. There will be a tree that will fall somewhere, or an accident that will happen, or at a polling location, someone will plug in a Crock-Pot, and that will be enough to trip the breakers at the polling location,” Wood said. “That’s why you … have an incident response plan. But really the … trusted source of information is the state and local election officials.” 

Davis agreed with Wood’s recommendation for incident response plans, saying he and his colleagues at the EI-ISAC “hammer those over and over again.” Knowing whom to contact — especially on Election Day — is essential to resolve issues as quickly as possible. He said electric utilities should feel as comfortable interacting with the EI-ISAC as they do with its counterpart in their sector. 

Brandi Martin, assistant director of the Energy Security Policy and Partnerships team at the Department of Energy, said utilities should be prepared to coordinate with federal officials as well. She reminded attendees that a well-organized response plan can summon responses from a wide range of organizations, as happened during the recent reactions to Hurricanes Helene and Milton. 

“We have a lot of these practiced mechanisms, whether it’s a wildfire … hurricane, or polar vortex. So on Election Day, if we have a weather event, a cyber event or a physical event, we’re ready there to stand up those coordination calls and mechanisms as well,” Martin said. 

Gulf of Maine OSW Auction Results in Four Leases Worth $21.9M

The first-ever offshore wind lease auction for the Gulf of Maine resulted in the sale of four offshore lease areas to two developers, bringing in a total of about $21.9 million.

The auction offered eight lease areas in total, with the potential to provide 13 GW of power. (See BOEM Announces Gulf of Maine Offshore Wind Lease Sale.) The four sold lease areas could host enough offshore wind generation to power 2.3 million homes, the U.S. Department of the Interior said in the Oct. 29 announcement.

Avangrid Renewables and Invenergy NE Offshore Wind each provisionally won two lease areas, which range in size from 97,854 acres to 124,897 acres.

Avangrid CEO Pedro Azagra said the company’s leases provide for the potential development of about 3 GW of floating offshore wind.

“Securing these lease areas provides a unique opportunity to advance our growing business at a significant value and reinforces our unwavering commitment to helping the New England region meet its growing need for reliable, clean energy,” Azagra said.

“With today’s lease sale building on earlier deepwater auctions on the West Coast, the United States is truly on track to become a global leader in floating offshore wind technology,” said Anne Reynolds, vice president for offshore wind at American Clean Power.

While all commercial offshore wind farms currently under construction or in operation in the U.S. feature fixed-foundation technology, farms developed in the deeper waters in the Gulf of Maine will need to rely on floating technology.

Although floating offshore wind technology is in its early stages — the world’s largest floating installation has an 88-MW nameplate capacity — its development will be key to meeting state and federal clean energy goals, due to the limited availability of viable fixed-bottom locations.

The U.S. Bureau of Ocean Energy Management (BOEM) in August approved a floating wind research lease for the state of Maine, which eventually could provide the state with 144 MW of offshore wind. (See Maine Approved for Floating Wind Research Lease.)

The $21.9-million price tag is significantly less than BOEM’s 2022 California lease sale, which also was centered around floating technology. The California leases, which cover a smaller overall footprint than the Gulf of Maine leases, brought in $757 million. (See First West Coast Offshore Wind Auction Fetches $757M.)

The offshore wind industry’s struggles to scale up over the past two years may have cooled bidder interest in new lease areas. An Oregon offshore wind lease auction scheduled for Oct. 15 was postponed due to a lack of interest from potential bidders, while BOEM canceled a Gulf of Mexico auction planned for September. (See BOEM Postpones Oregon Offshore Wind Auction and BOEM Cancels Gulf of Mexico Wind Lease Auction.)

Avangrid’s lease areas (OCS-564 and OCS-568) are located about 34 miles from Massachusetts and feature “strong wind speeds” along with “relatively shallow waters within the limits of existing floating wind technology” and multiple potential interconnection points, Avangrid said.

While Avangrid’s lease areas are located adjacent to each other east of Massachusetts, Invenergy’s lease areas bookend the northeast and southeast corners of the wind energy area. Invenergy’s southern lease (OCS-567) is located about 25 miles east of Massachusetts, while its northern lease (OCS-562) is located southeast of Portland, Maine, about 53 miles offshore.

Reynolds specifically praised Maine Gov. Janet Mills (D) for the state’s “proactive approach to floating offshore wind technology.”

In 2023, Maine passed legislation (LD 1895) authorizing the procurement of at least 3,000 MW of offshore wind power “in proximate federal waters” by the end of 2040. The law directs the Governor’s Energy Office to submit its first solicitation to the Public Utilities Commission by July 2025, with the PUC set to issue a request for proposals in January 2026.

Massachusetts also is well located to purchase power from the Gulf of Maine areas, and the state has indicated it will need to procure at least 10 GW of power from offshore wind in the Gulf of Maine to meet its climate targets.

Developers recently broke ground on a new offshore wind terminal in the city of Salem, Massachusetts, which is located in relatively close proximity to the southern Gulf of Maine lease areas. (See Mass. Breaks Ground on Salem Offshore Wind Terminal.)

The availability of future leases in the area could be affected by the outcome of the presidential election in November, as Republican nominee Donald Trump has expressed hostility toward offshore wind. The Department of the Interior has another lease auction scheduled for the Gulf of Maine in 2028.

Federal Judge Tosses Out Texas’ ROFR Law in Non-ERCOT Regions

A federal judge found Texas’ law instituting a state right of first refusal (ROFR) law violates the Commerce Clause and prohibited its enforcement in non-ERCOT regions, in an order issued Oct. 28. 

Judge Robert Pitman of the U.S. District Court for the Western District of Texas in Austin handed down the ruling on remand from the Fifth Circuit Court of Appeals in the case of NextEra Energy Capital Holdings v. Kathleen Jackson in her official capacity as a commissioner of the Public Utility Commission of Texas. (See 5th Circuit Finds in Favor of NextEra’s ROFR Appeal.) 

The Fifth Circuit decision also was appealed to the Supreme Court, which declined to take up the case in December 2023. (See SCOTUS Won’t Take up Texas Appeal of ROFR Law.) 

The Texas Legislature passed SB 1938 after FERC Order 1000 removed federal ROFRs but required ISO/RTOs such as MISO and SPP, which serve the parts of Texas in the Eastern Interconnection, to respect state ROFR laws. 

The law caused NextEra to lose a transmission project in East Texas that it had won in MISO’s competitive planning process and another project it had tried to buy from an incumbent in SPP’s territory.  

The Commerce Clause of the U.S. Constitution gives the federal government the power to regulate interstate commerce. State laws can get around it if they have legitimate policy reasons. But the judge knocked down all the arguments ROFR supporters brought up in the case. 

Texas claimed the law codified existing practices. But NextEra was able to build in the state prior to enactment of the ROFR law, as it did in the Competitive Renewable Energy Zone law. Another justification was to clean up statutory language after the CREZ lines were opened to out-of-state firms. The judge found that was not a valid reason to get around the Commerce Clause. 

Texas also wanted to avoid federal rate regulation, but the judge shot down that reasoning. 

“Balkanizing a state from interstate commerce is the very problem the Commerce Clause is meant to guard against… and so Texas’ desire to avoid the interstate market — and the federal regulation that comes with it — is not a legitimate local interest,” the court ruling said. 

The final reason was an alleged impact to reliability because the competitive bidding process adds time to transmission development. But SPP transmission lines that are needed quickly can get around the competitive process. And MISO does not have a competitive process for lines that are needed solely for reliability. 

“The federal bidding process does not undermine reliability by substantially delaying projects because these projects already take years to plan,” the court ruling said. “The type of transmission lines defendants are concerned about are proposed through federal regional planning bodies to promote long-term transmission development. Even without a competitive bidding process, the procedure for identifying those types of regionally planned transmission lines is time consuming.” 

Texas can ensure reliability with the PUC’s certificate process, and the regulator continues to have authority when lines are in service to ensure they are operated reliably, the judge said. 

“If those processes are insufficient to ensure reliability, then Texas could enact new laws that add reliability mandates,” the decision said. “The constitutional solution to Texas’ issue of ensuring reliability is to evenhandedly increase reliability standards, not to treat all out-of-state entities as necessarily unreliable.” 

When it comes to competitive processes, FERC requires transmission planners to consider reliability. MISO found NextEra’s proposal for the Hartburg-Sabine project had adequate plans and infrastructure in place to ensure reliable operation. NextEra has a pending case at the District of Columbia Circuit Court of Appeals to try to get that project back, though MISO and FERC have since said it is no longer needed. 

EPRI Launches DCFlex Initiative to Help Integrate Data Centers on the Grid

The Electric Power Research Institute has launched its “DCFlex” initiative that will explore how data centers can support the grid, enable better asset use and support the clean energy transition.

The initiative’s founding members include Compass Datacenters, Constellation Energy, Duke Energy, ERCOT, Google, Meta, New York Power Authority, NRG Energy, NVIDIA, Pacific Gas and Electric, PJM Interconnection, Portland General Electric, QTS Data Centers, Southern Company and Vistra.

DCFlex will coordinate real-world demonstrations of flexibility in a variety of existing and planned data centers and electricity markets, creating reference architectures and providing shared learnings to enable broader adoption of flexible operations that benefit consumers.

The EPRI initiative announced Oct. 29 will set up five to 10 flexibility hubs, demonstrating strategies that enable operational and deployment flexibility, streamline grid integration and transition backup power solutions to grid assets. Demonstration deployment will start in the first half of 2025 with testing running through 2027.

“One of the key areas where people are talking a lot, but not doing a lot, is the area of understanding how flexible data centers can be, and how we actually make that happen,” EPRI’s Principal Technical Executive Tom Wilson said in an interview. “And so that was the motivation.”

EPRI is a nonprofit that works to address challenges in the energy industry. The DCFlex initiative was born out of discussions at the U.S. Secretary of Energy’s Advisory Board about how it could help power data centers. EPRI spoke with 50 experts from the power industry and the data center industry, Wilson said.

Data centers can respond to signals in the grid in two ways — some of their computational tasks can be shifted around in time and to other data centers, and backup power generation at the facilities can be used instead of the grid, Wilson said. Diesel generation dominates their backup power now, but cleaner options more regularly could respond to grid signals without violating state air permits.

“In terms of computational flexibility, I’d say, you know, if you’re at an ATM trying to get money out, and you get the answer that you can’t get your cash until the electricity prices are lower or there’s more electricity available, you won’t be happy,” Wilson said. “And so, there are a lot of functions of data centers that you do have to have real time. Basically the customer-facing things that data centers do. Other things like indexing the web and activities like that are potentially more flexible in where they occur and when they occur.”

The customer-facing aspects of artificial intelligence also need to be ready for use whenever, but AI models require training, and that energy-intensive process can be shifted in time, Wilson said.

Google, for example, has shifted computing demand to where cheap, clean power is available at its different data centers for the past five years, he added.

“At Google, we see this moment as a generational opportunity for the public and private sector to work together to meet energy demand responsibly and unlock significant benefits for people, the economy and the planet,” Google’s Global Head of Energy Market Development and Innovation Caroline Golin said in a statement. “Through the leadership, expertise and convening power of EPRI, DCFlex will be an important collaboration vehicle to align our common goals, as we work together to build a stronger electrical grid for all.”

Data centers have helped transform the demand for power. The U.S. had flat growth for roughly two decades, but with data centers being added in the hundreds of megawatts, reshoring of industry and efforts to electrify other uses of energy, that has changed dramatically in the past year, Wilson said.

It used to be easy to plug a data center into the grid, but the growing demand has slowed the process. In 2022, Dominion put a moratorium on new connections in its territory, which includes the largest concentration of data centers in the world, called Data Center Alley in Loudon County, Va., Wilson said.

A 500-MW data center is equivalent to tens of thousands of homes being added to the grid much more quickly than more granular demand growth from an expanding population or a growing economy. Flexibility can help the grid absorb major new loads more quickly.

“In many cases, if you have transmission issues, it may just be that I can provide the power you want for 350 days a year,” Wilson said. “For 15, I can’t guarantee it for every hour in those days because of congestion, peak temperatures or higher, low — different issues. And if you have that response, is there a way to get around providing that powerful 15 days for the data centers in order to connect it now?”

When it comes to data flexibility, being able to dial back the demand from a 500-MW data center offers a significant source of demand response for the grid, he added.

“Or if it’s able to turn on backup generation and take its load entirely off the grid, that’s a huge amount of capacity that can come online,” Wilson said. “Historically, we’ve seen this with aluminum smelters and other large industry right where they’ve traditionally gotten a phone call that said, ‘can you guys turn off these hours, these days?’”

Another key is better planning around when and where data centers want to connect to the grid, said Wilson. It takes time to stand up a new data center.

“Better coordinating those ramp up schedules is really important for an understanding where both parties really are in terms of their needs and ability to respond,” Wilson said. “Because, you know, if you’re talking a gigawatt data center or 500-MW data center that’s a large amount of load, and it can be in over eight years or three years or two years. It makes a big difference.”

Constellation, which has worked with Microsoft to reopen a Three Mile Island nuclear plant to serve a Microsoft data center and has discussed co-locating data centers at its other nuclear plants, welcomed EPRI’s initiative.

“Data centers are integral to our daily lives, economy and national security,” Constellation CEO Joe Dominguez said in a statement. “Our energy system is built to handle the extreme demands of our hottest summer days and coldest winter nights but is often underutilized. The real challenge isn’t a lack of energy for data centers but managing the peak demand hours. The ability of data centers to flex during these critical periods is crucial.”

MISO and TVA Strike Emergency Energy Purchase Agreement, Request FERC OK

MISO and the Tennessee Valley Authority hope to implement an emergency energy purchase framework by Christmas Eve.  

The two have filed an agreement before FERC for permission to be able to transact energy with one another during emergencies by Dec. 24 (ER25-197).  

MISO and TVA have never had an agreement to mutually supply the other with emergency power, and they said they traditionally had “other arrangements” that seemed sufficient to meet the needs of their regions.  

However, the two said the late December 2022 winter storm changed their views. 

“Due to the changing configuration of the grid and recent emergency events, like Winter Storm Elliott, MISO and TVA have become increasingly focused on the need for additional coordination and planning to better ensure reliability in an emergency,” MISO Managing Senior Corporate Counsel Amy Thurmond wrote to FERC in a transmittal letter. “To that end, each has identified the need to purchase emergency energy from the other to maintain the reliability of each individual transmission system and, more generally, the integrity of the Eastern Interconnection.”  

MISO and TVA have contemplated an agreement since MISO supplied up to 5 GW at times during the storm Dec. 23, 2022, to the Tennessee Valley Authority, SPP, Associated Electric Cooperative Inc. and the Southeast planning region. MISO’s exports that day played a role in forcing its own maximum generation event. After, MISO leadership lamented that though MISO could assist TVA during dire straits, TVA was prohibited from returning the favor when MISO encountered precarious operations. (See MISO, TVA to Enter Agreement on Emergency Purchases; MISO Defends Energy Exports During December Storm.)  

TVA’s ability to provide power to parties outside of its service territory is limited by the TVA Act. The federal utility can supply power only to parties that held exchange power arrangements as of July 1, 1957, and their successors. TVA for years interpreted the TVA Act as a barricade to selling power directly to MISO.  

MISO is less restricted in the balancing authorities it can sell to or purchase emergency energy from. The RTO’s tariff requires only that there be an agreement between MISO and another BA.  

MISO noted that two of TVA’s neighboring electric systems included in the 1957 agreement — Ameren and Entergy — joined MISO years ago. MISO and TVA share a seam in Mississippi and along the Arkansas-Tennessee state line.  

Ameren and Entergy as Avenues for Trade

The freshly filed agreement involves Ameren and Entergy granting authority to MISO to act on their behalf to buy emergency energy from TVA. MISO said the emergency energy it coordinates and directs from TVA on behalf of Entergy and Ameren would be used for the “sole purpose of maintaining electric reliability.” 

Terms of the agreement stipulate that TVA and MISO can share power up to the transfer limits in use between the two when one is experiencing an emergency. The two said supply to the other shouldn’t come at the expense of the “safe and proper operation” of their own transmission systems and service to their own customers and shouldn’t impede obligations they might have with other parties.  

MISO and TVA said one or the other should be experiencing a NERC-defined Energy Emergency Alert Level 2 before an offer to supply emergency energy can be made. Offers would be recallable up to 10 minutes ahead of time, and MISO and TVA said they would make efforts to ensure that an emergency energy transaction “continues only until it can be replaced by a commercial transaction.” All emergency energy transactions would be metered and billed based on scheduled deliveries. Emergency energy charges from the delivering BA to the receiving BA would be calculated based on a two-part formula that includes an energy portion and any transmission charges to an agreed-upon delivery point.  

When MISO was the delivering BA, the rate per megawatt hour would be either 150% of the hourly locational marginal price at the buses near the point of exit, 110% of the verifiable cost of the resources used to supply the power or $100/MWh, whichever is greater. When TVA was delivering megawatts, the rate similarly would be the greatest of either 150% of the hourly LMP at the points of injection in either the Ameren or Entergy service territory, 110% of the verifiable cost of the resources used to supply the power or $100/MWh.  

MISO and TVA plan to use an invoice system with rules that allow one or the other to collect interest on delinquent payments or raise billing disputes. MISO added that though it would be sourcing emergency energy on behalf of Ameren and Entergy, under no circumstances would the two members be liable for the RTO’s obligations under the agreement.  

Company Briefs

Dominion Completes Sale of CVOW Stake, Acquisition of Kitty Hawk

Dominion Energy announced it has completed its $2.6 billion sale of a 50% noncontrolling stake in its Coastal Virginia Offshore Wind (CVOW) project to investor Stonepeak. 

Dominion will retain full operational control of construction and operations of the $9.8 billion project. As of August, the 50th monopile foundation of CVOW’s 174 turbines was installed and the project is expected to be completed in 2026. 

Dominion also announced the completion of its purchase of the Kitty Hawk North offshore wind lease area from Avangrid for $160 million. Avangrid will retain ownership and associated rights to the Kitty Hawk South lease and will continue the development of the area. 

More: Virginia Business, offshoreWIND.biz 

Tesla Reports Q3 Profit Increase

Tesla said its profits for the third quarter increased 17%. The company said it earned $2.2 billion from July through September, compared with $1.9 billion in the same period last year. Sales were $25.2 billion, compared with $23.4 billion a year earlier. Sales of storage batteries jumped 52% in the quarter, while revenue from services like charging climbed 29%. 

More: The New York Times 

Google Signs PPA for 350-MW Texas Solar Project

Google announced it has agreed to a deal with Engie North America to offtake 350 MW from the company’s Chillingham solar project in Texas. The solar farm is being installed north of Austin. Google will use the electricity to meet the demand of its state operations. 

More: Renewables Now 

State Briefs

CALIFORNIA 

Kern County Approves Carbon Capture, Storage Project

The Kern County Board of Supervisors unanimously approved the Carbon Terra Vault project that will capture carbon dioxide and inject it into the ground. 

The project by California Resources, the state’s largest producer of oil and gas, will capture and inject carbon dioxide into the ground at an oil and gas field in the San Joaquin Valley. The EPA would have to sign off on the project as well. 

Construction would take about two years for the carbon capture plants and a year for the pipelines. 

More: CalMatters 

FLORIDA 

FPL Hurricane Costs to Top $1B

Florida Power & Light expects to seek approval to collect about $1.2 billion from customers in 2025 to cover costs of restoring power after hurricanes Debby, Helene and Milton and to replenish a storm reserve fund. 

FPL will seek to recover about $800 million stemming from Hurricane Milton. FPL also had an estimated $300 million in costs from Debby and Helene. 

The Public Service Commission must sign off on the plan. 

More: WFOR 

IOWA 

Clinton Expands Wind Turbine Moratorium

The Clinton County Board of Supervisors has placed a moratorium on applications for MET towers, sodar equipment and any other equipment related to the development of utility-scale wind turbine developments, effective until Dec. 31. 

There currently is a moratorium on applications in the county for utility-scale wind turbine developments, also effective until Dec. 31. 

Discussions on revisions to the county’s ordinances are set to resume Oct. 30. 

More: Clinton Herald 

KANSAS 

Evergy Plans to Build Two New Natural Gas Plants by 2030

Evergy CEO David Campbell said the company plans to build two 705-MW combined-cycle natural gas plants in Sumner and Reno counties in 2029 and 2030, respectively. 

In its long-range plan filed in 2022, Evergy planned to exclusively add wind and solar facilities over the coming decade. A year later, it scaled back the planned renewable energy facilities, forecasted plans to add natural gas plants, and delayed the retirement of the Lawrence coal plant. Evergy’s latest update, filed earlier this year, almost doubles the amount of natural gas generation it will add between now and the early 2030s. 

More: Kansas Reflector 

KENTUCKY 

LG&E and KU: Less Power from Coal, More from Natural Gas

In its integrated resource plan filed before the Public Service Commission, Louisville Gas and Electric and Kentucky Utilities outlined the steps to meet demand by replacing coal-fired power with natural gas. 

The plan anticipates adding no new coal-fired generation while building as many as four natural gas-fired plants plus battery storage systems for solar energy — in addition to a natural gas plant already slated for construction.  

The PSC will consider the plan over the coming months. 

More: Kentucky Lantern 

LOUISIANA 

Solar Farm Unveiled in Franklinton

D.E. Shaw Renewable Investments unveiled its 50-MW solar facility on about 447 acres of private farmland near Franklinton. The Sunlight Road Solar facility boasts new technology in the form of all-terrain, sun-tracking sensors. The farm will sell electricity to Entergy Louisiana. 

More: Louisiana Illuminator 

MASSACHUSETTS 

Vineyard Wind to Resume Pile Driving for Turbine Foundations

Even as it prepares to take down additional defective blades, repair others and retrieve the remaining debris from the July 13 blade failure, Vineyard Wind will forge ahead with the construction of its 62-turbine wind farm. 

The company announced the crane vessel Orion would return to the area to conduct pile driving and installation of the remaining monopile foundations within the lease area.  

While Vineyard Wind remains under a suspension order from the Bureau of Safety and Environmental Enforcement stemming from the blade failure in July, the agency subsequently modified the order to allow Vineyard Wind to resume installing towers and nacelles. 

More: Nantucket Current 

MINNESOTA 

PUC Approves Minnesota Power Rate Increase

The Public Utilities Commission unanimously approved a 4.9% rate increase for residential customers of Minnesota Power. 

The company initially asked for a 12% rate increase, worth $89.1 million, but will have to accept an increase that will raise residential customers’ bills about $5 a month. It also will raise rates by 4.4% for industrial and large commercial customers. 

Minnesota Power said the rate increase would help it recruit and retain its workforce during the transition from fossil fuels, spend money on infrastructure, and address inflation and supply chain issues. 

More: The Minnesota Star Tribune 

NORTH CAROLINA

Duke University Becomes Carbon Neutral

Duke University announced it has fulfilled its pledge to become carbon neutral by 2024. It is one of only 14 U.S. colleges and universities to reach the milestone. 

The achievement was made possible by reductions in energy use and investment in renewable sources, as well as the purchase of $4 million worth of “high-quality” carbon offsets. Duke originally made the commitment in 2007 when then-President Richard Brodhead signed the American College and University Presidents’ Climate Commitment. 

More: Duke Chronicle 

OHIO 

Madison County to Appeal Solar Project Construction

Madison County commissioners said they will appeal the approval of a solar project to the state Supreme Court. 

The Power Siting Board voted 7-2 to approve the Oak Run solar project in March. Earlier this month, county commissioners voted 2-1 to pursue legal counsel to appeal the project. This project, once constructed, would be the largest agrivoltaic project in the U.S. The appeal could take up to two years before the court hears it. 

More: WYSO 

SOUTH DAKOTA

Supreme Court Rejects Summit’s Request for Rehearing

The South Dakota Supreme Court has rejected Summit Carbon Solutions’ petition for a rehearing to reconsider its conclusion that Summit failed to prove its theory that whether a substance is a “commodity” does not turn on its intended use. 

The court rejected Summit’s argument in August that carbon forever captured and buried underground in North Dakota is a commodity no different than CO2 put to a commercial productive use. The court also ruled that Summit is not empowered to use eminent domain to seize property against landowners’ wishes in South Dakota for its proposed CO2 pipeline. 

When the case returns to a lower court, Summit can present new evidence. 

More: Dakota News Now 

VIRGINIA 

Appalachian Power Approved for Battery Storage System

The State Corporation Commission approved Appalachian Power to build its first battery energy storage system to serve outage-prone customers in Southwest Virginia. The $57.3 million project would create two battery storage sites totaling 7.5 MW. It’s unclear when construction will begin or when the project is anticipated to be complete. 

More: Cardinal News 

Federal Briefs

DOI Approves Nevada Lithium Mine

The Department of the Interior has approved a permit for a new lithium-boron mine in Nevada. The Rhyolite Ridge mine will help expedite production of lithium, which is a key component in EV batteries. Construction of the mine should begin in 2025. 

More: The Associated Press 

FAA Issues Final Rule on Air Taxis

The Federal Aviation Administration has issued the final rule for air taxis and other electric-powered aircraft, calling the regulations the “final piece in the puzzle” to introducing the aircrafts. 

The final regulation lays out the qualifications and training required for instructors and pilots to fly aircraft in the “powered lift” category, along with the operational requirements for the electric-powered aircraft, the FAA said. 

FAA Administrator Mike Whitaker noted the powered lift category is the first new aircraft category in nearly 80 years. 

More: The Hill 

US Installs 5 GW of Storage So Far in 2024

The U.S. has installed 5 GW of battery storage nationally through July, according to the EIA. As of July, more than 20.7 GW of battery storage capacity was available in the country. The EIA predicts the capacity could double again to 40 GW by 2025 if further planned expansions occur. 

More: The Guardian 

Changing Dynamics of Clean Energy Transition Debated at Aurora Energy Conference

NEW YORK — Despite some recent hiccups with supply chains and higher interest rates, the clean energy transition is set to accelerate with long-term policy support, panelists said Oct. 24 at the Aurora Energy Transition Forum. 

The offshore wind industry in the U.S. has had issues with project delays and cancellations and the recent construction accident at Vineyard Wind 1, but the industry has moved projects through the permitting process, and construction is due to pick up soon, Vineyard Offshore CEO Alicia Barton said. 

“We’ve seen setbacks, no doubt about it,” Barton said. “When we look ahead, though, over the next — and I’m not talking like the 10 years; I’m talking about 2025 — we are going to see something like 8 GW of projects actively under construction in the United States.” 

The industry is starting to put steel into the Outer Continental Shelf, but it already has gotten eight to 10 projects through the permitting process, and it will start sending significant power to the grid in two to three years. 

“We actually are seeing this industry, I think, at a very different scale,” Barton said. “And I think that actually does get lost, even on people that are spending all their time on energy, because you hear so much negative news about offshore wind.” 

Some projects have had to cancel their initial contracts, but they have been able to sign new ones for higher returns because many of the East Coast states supporting offshore wind need the power, Barton said. 

“In New England, increasingly, there is a recognition that offshore wind is the resource that will address long-term winter reliability,” she added. “But of course, we need to start showing up sooner … in terms of the number of years that it has taken thus far to get projects done.” 

Solar and batteries have come to dominate interconnection queues, but the economic issues of the past few years have impacted them as well, as 2022 and 2023 saw slight price increases because of the supply chain, said Samuel Scroggins, managing director of Lazard’s Global Power, Energy & Infrastructure Group, which tracks the levelized cost of energy (LCOE) for different generation technologies in annual reports.

The latest LCOE numbers declined slightly, though the days of regular cost declines are in the past. 

“The costs have come down so much for wind and solar in particular that we’re at a point now where there needs to be some incremental technology advancement to see continued cost decline,” Scroggins said. “The model is relatively straightforward. The inputs are pretty clear.” 

Bringing down capital expenditure is getting difficult because the industry already has used many of the best sites, so those that remain are not the “nice, flat, square” pieces of land that are easy to develop, he added. 

The Inflation Reduction Act has given financers and developers a long enough runway to get projects with 10 years of certainty for tax subsidies, which in the past sunsetted much sooner than that, said Allan Marks, a partner with law firm Milbank. It has spread the money around enough that the policy likely will survive regardless of what happens in the elections Nov. 5. 

“If you look at congressional districts, two out of the three jobs created in the manufacturing plants are in red or red-leaning congressional seats,” Marks said. “So, there are good reasons why 18 Republican members of Congress wrote a letter to the speaker and said, ‘Please do not repeal IRA.’” 

While the money likely still will flow from tax credits, the White House switching parties would lead to changes on how the law is implemented with changes at federal agencies, he added. 

Nora Mead Brownell, co-founder of consultancy Espy Energy Solutions and a former FERC commissioner, also noted the IRA’s funding of major projects in conservative states gives it staying power, but she also argued that other policies need changes. 

“We did not change the regulatory model at the federal and the state level,” Brownell said. “We are not rewarding the right things. We have evasive utilities who are terrified of change, who are not introducing their own solutions [and] adding technology efficiency that would give more transparency.” 

That can change with the rate structure of utilities, with Brownell saying performance-based rates should be widely adopted to encourage utilities. 

“We reward great, honking projects that may or may not solve the solution,” Brownell said. “We do not reward innovation. We do not allow people to take risks. We do not enforce data to be shared with people who could create those demand response programs, both at the commercial and retail level, that could make a huge difference.” 

Ideally, more power over the industry would be shifted to the federal level, and states would have more uniform rules because a patchwork makes things harder, she said. 

“I think we have to have a larger conversation about, ‘Yes, this is going to be expensive, but we’re making it more expensive,’ and we need to speak in terms that real people can understand,” Brownell said. 

The Rapid Growth of Batteries in the 2020s

Just a few years ago, the grid hardly had any storage capacity, but now it makes up about 40% of the queues across the country, with significant deployments in CAISO and ERCOT, Jupiter Power CEO Andy Bowman said. 

“It’s become the kind of firm dispatch that we have traditionally looked for natural gas plants to provide,” Bowman said. “And I think the growth opportunity for storage increasingly is not as some kind of ancillary renewable technology; it is for firm clean power. Firm clean power that can be dispatched very quickly. Firm green power that can provide a lot of valuable grid services.” 

Years ago the price for batteries was $4,000/kW, which made them irrelevant, but by 2019 that came down to $400/kW, said Spearmint CEO Andrew Waranch. With tax subsidies and plenty of financing available, the price of a 100-MW, two-hour battery in Texas is down to just $10 million. 

“I’ve always said that batteries will be as prevalent as cell phone towers,” Waranch said. “They will be everywhere. They’ll be on every corner. Because even if they’re big or they’re small, they’re affordable. And when you look at how they compete with other assets, relative to CTs [combustion turbines], they’re cheaper, faster, cleaner and stronger and a lot quicker to build.” 

So far, batteries have had major impacts in California and Texas, Bowman said. 

“California, as with just about every new energy technology, leads the way,” he said. “Texas comes in close behind, surpasses them, and I think we’ll be doing that shortly with batteries.” 

But with how quickly the grid is changing and how disruptive batteries have become, Bowman expects energy storage assets will start to grow in every market eventually. Jupiter is working in MISO, ISO-NE, NYISO and PJM on changes that will help grow and integrate batteries into their systems. 

Spearmint is building 1,200 MW of batteries in ERCOT, but its largest development portfolio is in MISO because it and SPP have the most acute needs for the technology now. 

“If they’re telling you that they’re unsolvable in a few years from now, you usually want to listen,” Waranch said. “But at the same time, in between 1997 and 2002, we did build 225 GW of gas in five years, and so you can solve problems with building quickly.” 

The supply-and-demand picture always is important, but EnCap Investments Managing Partner Kellie Metcalf said that to really roll out the technology, the right market designs are needed. 

“That’s what’s so good about California: The resource adequacy charge is huge,” Metcalf said. “In ERCOT, it’s been the ancillary services and the volatility top to bottom that [cause] revenue.” 

MISO does not have anything like those revenue streams, and other markets like ISO-NE have clean peak programs, but that still is in its early days, she added. 

While MISO is not quite ready to see major investments in batteries because it lacks any real construct that can make storage profitable, Waranch argued that could be solved quickly. “Even if they don’t have a construct yet, when the need arises and they are deficient, they will have to create a construct that works.” 

Mass. Clean Energy Permitting, Gas Reform Bill Back on Track

After negotiations extending well past the end of the formal legislative session, Massachusetts lawmakers are nearing passage of a wide-ranging climate and energy bill including provisions to expedite clean energy siting and permitting, reform gas utility regulation and authorize the procurement of 5,000 MW of energy storage resources.

The 139-page bill, dubbed “An act promoting a clean energy grid, advancing equity and protecting ratepayers,” passed in the Senate on Oct. 24. The bill now sits in the House, where Republicans have stalled its passage by calling for a roll-call vote. Gov. Maura Healey (D) has indicated her support for the bill.

The major focus of the legislative session — and one of the key components of the resulting bill — has been the overhaul of the state’s energy permitting and siting processes.

The bill would consolidate state and local permitting for renewable energy projects and grid infrastructure into a single review process and would cap the review timeline at 15 months for large projects and 12 months for smaller projects.

The permitting reforms “are taking a process that has gone seven to 10 years and bringing it down to 12 to 15 months,” said Rep. Jeff Roy (D), the lead House negotiator on the bill.

Long permitting and siting timelines have slowed the development of clean energy in the state, and reforming the process has been a key priority for a broad coalition of interests.

Following the publication of recommendations from the Massachusetts Commission on Energy Infrastructure Siting and Permitting, top legislators and Healey’s administration reached a general agreement on the permitting language, which was included in separate bills passed in the Senate in late June and House in mid-July. (See Mass. Commission Issues Recs on Energy Project Siting, Permitting.)

In the updated process, the state’s Energy Facilities Siting Board (EFSB) would coordinate and issue consolidated permits for all large projects, which would encompass all required state and local permits. For smaller projects not in the EFSB’s jurisdiction, the bill would allow developers to challenge the denial of a local permit to the EFSB, which could overrule the local decision. (See Mass. Legislature Faces Looming Deadline to Pass Permitting Reform.)

Dan Dolan, president of the New England Power Generators Association, expressed strong support for the bill’s siting and permitting provisions.

“I appreciate that siting remains the centerpiece of this legislation,” Dolan said. “It is a testament to the commitment from the governor to get this done that the legislature is taking extraordinary procedural steps to bring this over the finish line.”

While the permitting and siting agreement largely was in place in time for the end of formal session on July 31, the Senate and the House could not overcome their differences on several key issues prior to the deadline. (See Mass. Lawmakers Fail to Pass Permitting, Gas Utility Reform.)

However, lawmakers continued to work behind the scenes to reach a compromise throughout the summer and into the fall and now say they are happy with the bill that has emerged.

The Senate reconvened a formal session to pass the bill 38-2 on Oct. 24. While the House leadership has attempted to pass the bill via informal session, House Republicans have stalled its passage by challenging the presence of a quorum. Despite the short-term challenges, House leaders have expressed optimism they eventually will send the bill to Healey.

Gas Utility Reform

One of the key disagreements that held up the bill in July centered around how aggressively the state should move away from natural gas.

“We had some differences in opinion as to what should happen with the decommissioning of the gas system,” Roy told RTO Insider. “We thought that the Senate was moving too quickly to decommission gas, so we had differences there that we eventually ironed out. Once we ironed out those differences, it made it easier to come together on everything else.”

Throughout the negotiations, Sen. Mike Barrett (D), the lead Senate negotiator on the bill, emphasized that the permitting and siting reforms could lead to an expensive expansion of the electrical system and therefore must be coupled with efforts to rein in costs from the gas system.

Ultimately, the Senate and House agreed to add language amending the definition of a gas distribution company, explicitly authorizing gas utilities to “make, sell or distribute utility-scale non-emitting thermal energy, including networked geothermal and deep geothermal energy.”

The bill also would update the state’s gas system enhancement program (GSEP), which is intended to reduce leaks from the gas system. GSEP costs have increased in recent years — with an expected total price tag of about $34 billion according to one consultant — spurring concerns from climate and consumer advocates that the new pipes installed under the program will become stranded assets.

While the existing GSEP statute centers around pipe replacement, the bill would authorize pipe retirement as part of the program.

Barrett added that the legislation would amend the “right to gas” in state law, which allows customers to petition for gas service.

This right “was the primary tool used to keep gas infrastructure in place, even as people have started to migrate to cleaner alternatives like heat pumps,” Barrett said, noting that right could enable a single customer to hold up the retirement of an entire segment of the gas distribution system.

“We’ve changed that,” Barrett told RTO Insider. “You can no longer be the hold-out on your block — if you do hold out, you could keep the entire block’s worth of natural gas infrastructure in place at great expense to ratepayers, even if everyone else has migrated to something better.”

The statutory changes were developed in coordination with the Massachusetts Department of Public Utilities (DPU), which ruled in 2023 that the decarbonization of the state’s gas network should center around electrification. (See Massachusetts Moves to Limit New Gas Infrastructure.)

Under the new rules, the DPU would be able to consider the public interest, “including the public interest in reducing greenhouse gas emissions,” when evaluating petitions for gas service.

Cumulative Impact Analysis

The bill would require project developers to submit a cumulative impact analysis, which would consider “any existing environmental burden and public health consequences impacting a specific geographical area in which a facility, large clean energy infrastructure facility or small clean energy infrastructure facility is proposed.”

This requirement was a key priority of environmental justice advocates in the state, who said it is a necessary safeguard to ensure the new permitting and siting process does not exacerbate existing energy infrastructure burdens on vulnerable communities in the state.

While advocates previously expressed concern that the cumulative impact analysis definition included in a prior iteration of the bill fell short, the new bill features “a robust definition of a cumulative impact analysis,” said Claire Karl Müller, coordinator of the Mass Power Forward coalition.

“We got to a good definition through really persistent, thoughtful advocacy,” Müller said. “We’re excited about the bill — it has some really good pieces.”

Clean Energy Procurement

The legislation would authorize a massive procurement of energy storage resources — it directs the state’s electric utilities to contract for 5,000 MW of storage by mid-2030, including 750 MW of 10- to 24-hour storage and 750 MW of storage with a duration greater than 24 hours. The minimum storage duration for the procurement would be set at four hours.

For offshore wind, the legislation would increase the potential length of long-duration contracts, allowing contracts from 15-30 years. Offshore wind contracts currently are capped at 20 years in the state.

It also would enable the state to coordinate with other New England States “to consider competitive solicitations for long-term clean energy generation,” including generation from the region’s two existing nuclear plants.

This provision comes during ongoing discussions about Massachusetts buying power from the Millstone Nuclear Power Plant, which is propped up by Connecticut, in exchange for the state buying power associated with the recent multistate offshore wind solicitation. (See Multistate Offshore Wind Solicitation Lands 2,878 MW for Mass., RI.)

This language also would enable the state to contract for onshore renewable energy in northern Maine. Government officials in Maine are preparing to issue procurements for renewable generation and associated transmission in the northern part of the state. Massachusetts previously committed to buying power from an onshore wind solicitation which later was terminated by Maine. (See Long Road Still Ahead for Aroostook Transmission Project)

While the Senate advocated for a more expansive procurement proposal to give the Department of Energy Resources significant latitude to procure clean energy as needed, these changes ultimately were left out of the compromise bill.

“That’s a compromise in which the House won some important concessions,” Barrett said.

Electric Vehicles

Regarding electric vehicles, the bill directs state agencies to conduct a 10-year forecast of EV demand, enabling the evaluation of sites for charging hubs. After the assessments are complete, the electric utilities would be required to submit infrastructure plans to meet demand.

The legislation would authorize municipalities to buy chargers and electric vehicles, including electric school buses.

It also would direct the state Division of Standards, which regulates gas stations, to develop regulations for electric vehicle chargers “to make sure these charging stations are delivering what they say,” Roy said.

Odds and Ends

The wide-ranging bill includes several other notable provisions, including:

    • Requiring electric utilities to consider advanced transmission technologies (ATTs) and other non-wires alternatives when planning new infrastructure and directing the DPU to investigate the use of ATTs.
    • Adding fusion energy to the state’s definition of clean energy.
    • Creating a commission to study how the clean energy transition is impacting the fossil fuel workforce.
    • Authorizing regulators to update appliance standards “to facilitate the deployment of flexible demand technologies.

There are several key proposals not included in the bill, including regulations targeting predatory competitive electricity supply companies, updates to the state bottle bill and a requirement for commuter rail electrification.

While the Senate and the state Attorney General’s Office have pushed for a full ban on retail third-party electricity suppliers, the House has argued for a more scaled-back reform package.

Larry Chretien, executive director of the Green Energy Consumers Alliance, expressed disappointment about the lack of action regarding competitive retail suppliers, and said reform will be a key priority for the next session.

“Every day that goes by there are more people that are going to be overcharged,” Chretien said.