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December 29, 2025

Vistra Hurries Joppa Retirement, Plans Renewable Developments

Vistra on Tuesday said that it will idle units at its coal- and gas-fired Joppa Power Plant next year, three years earlier than planned.

The Texas-based competitive supplier also said that, pending passage of legislation in Illinois, it will invest more than $550 million to develop about 300 MW of utility-scale solar and 175 MW of battery storage at nine former plant sites across the state by 2025. Vistra said the buildout would more than triple Illinois’ utility-scale solar generation and double its battery storage capacity.

Vistra said the accelerated retirement timeline settles a 2018 complaint the Sierra Club brought before the Illinois Pollution Control Board. The environmental group alleged that the Edwards, Coffeen and Joppa plants contaminated groundwater in excess of state standards prior to Vistra’s acquisition of Dynegy.

The settlement also has Vistra paying a portion of its property taxes for three years following the closure of Joppa and installing additional groundwater monitors at Edwards and Joppa.

Vistra Joppa Retirement
Joppa plant | Gibraltar Chimney

Vistra said that because of “mounting financial and legal pressures that now come from operating coal plants,” it’s calling for passage of the Illinois Coal to Solar and Energy Storage Act to help fund the repurposing of coal plant sites.

“We agreed to shut down the Joppa plant in light of the legal uncertainties and significant economic challenges facing the plant. First and foremost, we will work with our team members and the impacted communities to ensure a just transition, including our commitment to pay $1.1 million in incremental property taxes over three years,” Vistra CEO Curt Morgan said. “As part of this just transition, we remain focused on passing the Coal to Solar and Energy Storage Act, which will enable us to reinvest and repurpose sites like Joppa into zero-emission generation, using existing infrastructure, creating jobs and adding to the property tax base. We have a construction-ready plan to invest $550 million, including approximately $59 million at the Joppa location, to transform coal plant sites into renewable energy centers.”

Vistra said that if the bill passes, the Joppa site will house a standalone 45-MW battery storage facility. It said the land “does not have the site characteristics to support utility-scale solar.”

The approximately 65-year-old Joppa plant was included in a septet of retirement announcements from Vistra in October. (See Vistra Declares End of Midwest Coal Fleet.) The company initially said it would wind down Joppa’s six coal units (1 GW) and five gas units (239 MW) in 2025. The company’s seven-plant Midwest coal fleet will cease to exist by 2027, “or sooner should economic or other conditions dictate,” Vistra said at the time.

In its latest retirement announcement, Vistra again parceled out blame to a “dysfunctional” MISO capacity auction design that employs a vertical demand curve and prioritizes reliability over price signals.

MISO declined to comment on Vistra’s criticisms.

Morgan said the Joppa closure is an “unfortunate reminder that our remaining MISO fleet continues to face challenges and is at risk of rapid closure for a variety of factors, most notably legal and economic challenges — the latter due to the dysfunctional MISO market in Illinois and significant maintenance costs.”

The CEO said Vistra would like to “reinvest in and responsibly reuse its Illinois plant sites so local communities like Joppa and Massac County can economically benefit from the transition to renewable electricity generation rather than being left as a nonproductive former plant site.”

“The agreement will not only prevent millions of tons of dangerous air pollution from one of the oldest coal plants in Illinois, it will also require Vistra to install additional groundwater monitors that will help Sierra Club and our local members advocate for the safest coal ash closure plan under Illinois’ new coal ash regulations recently adopted by the Illinois Pollution Control Board,” Sierra Club Illinois Director Jack Darin said in a statement.

Darin also said the fast-tracked retirement spotlights the need for the Illinois legislature to pass the Clean Energy Jobs Act, which would help workers during Illinois’ transition from fossil fuels in the power sector.

MISO-SPP Targeted Interconnection Study Moves Forward

MISO and SPP told state regulators Monday that their joint targeted interconnection queue study has moved into its technical phase and promised more stakeholder involvement in the effort in the months ahead.

Speaking to the Organization of MISO States and SPP Regional State Committee’s Seams Liaison Committee (SLC), MISO’s Aubrey Johnson and SPP’s Antoine Lucas said RTO staff and study leaders have been meeting monthly since the effort was announced in September.

The RTOs’ leadership has tasked staff with identifying “comprehensive, cost-effective and efficient” upgrade projects, with a focus on projects near their seam that support both organizations’ interconnection processes. (See MISO, SPP to Conduct Targeted Transmission Study.)

Johnson, MISO’s executive director of system planning, said sticky cost-allocation discussions have been pushed back in the schedule until staff come up with initial solutions.

“We certainly recognize that could take some time,” Johnson said.

“Once we can get some solutions we can really focus around on the table, that’s when we can have a lot more discussion around how to move those things forward,” said Lucas, SPP’s engineering vice president.

The two executives promised more stakeholder involvement, beginning with a joint stakeholder meeting June 25. Three additional meetings have been scheduled for Sept. 22, Oct. 18 and Dec. 13. The final report is scheduled to be presented during the December meeting.

Staff said they are developing common solutions and plan to use February’s arctic event to inform their work.

The authors of a recent report on planning improvements and the increased deployment of renewable resources told  regulators that the industry has “great hope” that the MISO-SPP study will result in new interregional projects and prove to be a best practice that would “improve each regions’ understanding of interactions and opportunities” with neighboring regions.

The report, produced by Concentric Energy Advisors for the American Council on Renewable Energy and released last month, was based on interviews with SPP, MISO and ACORE: Lack of Interregional Tx Planning Slowing Wind, Solar Development.)

“What’s been going on in the MISO-SPP seams study and what this committee is doing are all in line with the recommendations we have made,” said Concentric’s Julie Lieberman, the report’s lead writer.

With its work winding down, the SLC suggested meeting on a quarterly basis. The committee has recommended evaluating targeted market efficiency products (MISO’s TMEP projects) and has suggested a working group to inventory and measure interest in rate pancaking along the seam.

EPRI: No Time to Lose on Resilience Research

Energy resilience is an essential but still poorly understood concept, and considerable work is needed from all industry stakeholders in order to properly appreciate its value, according to a recent white paper from the Electric Power Research Institute (EPRI).

The organization published the “Value of Resilience” white paper both to highlight the importance of resilience — defined as “the ability to withstand and reduce the magnitude and/or duration of disruptive events,” according to FERC — and to warn that efforts to address the issue in the bulk power system have fallen far short of society’s needs.

Resilience and reliability — the latter of which the paper defines as “preparedness for challenges the system has historically faced” — are often conflated in the minds of both grid planners and society in general. But there are key differences; most notably, that resilience planning incorporates the impact of all threats, including those that have not been encountered before.

Major Weather Incidents on the Rise

Planning for unforeseen impacts is an undeniably challenging task, but it is also unavoidable in light of the growing incidence of high-cost extreme weather events over the last 40 years: EPRI cites data from the National Oceanic and Atmospheric Administration showing 22 billion-dollar disaster events in 2020, up from just three in 1980 (adjusted for inflation). February’s winter storm, which caused multiple megawatts of generation to trip offline in Texas and left 2.8 million ERCOT customers without power at the peak of the crisis, indicates that this trend is likely to continue. (See ERCOT was ‘Seconds and Minutes’ from Total Collapse.)

EPRI Resilience Research
Billion-dollar disaster events in the U.S., 1980-2020 (CPI-adjusted) | EPRI

The February “outage event is the most recent event to highlight the need for resilience planning,” the paper says. “Human perception of resilience is based largely on experience, and it’s likely that individuals living in Texas now perceive resilience very differently than prior to February 2021.”

However, even when the need for resilience planning is clear, reaching that goal is still a challenge. While a number of metrics exist for power system reliability — such as system average interruption duration and frequency indices (SAIDI and SAIFI, respectively), operating and planning reserve margins, and estimated unserved load — no such metrics have been described for resilience. This makes it difficult to predict the effectiveness of proposed resilience measures or to decide which should be given priority.

EPRI notes that some reliability metrics “may be indicators of resilience as well” but warns that changing climate and weather patterns, a rapidly evolving generation resource mix, and expansion in the use of electricity for transportation and heating mean utilities will need to be careful how they apply these measurements.

“Cost methods are typically retrospective and do not account for chronic, far-reaching impacts we are experiencing today,” Katie Jereza, vice president for corporate affairs at EPRI, said in the paper. “If extreme events intensify, we will be even further behind the curve. We need to focus on making tomorrow’s grid more resilient rather than fixing yesterday’s.”

Roles for Utilities, Customers and Regulators

Suggestions of useful resilience metrics are not to be found in the white paper, which acknowledges that the stage of research into such valuation approaches is too early to be helpful. Instead, EPRI casts its report as a “foundational guide” to such research for academia and research organizations, as well as industry stakeholders such as utilities and state and federal regulators.

EPRI Resilience Research
U.S. state-level resilience activities | EPRI

The role of research organizations includes developing frameworks and models to analyze resilience that take into account the changing energy landscape; this can benefit smaller utilities, which may not have the resources to devote to such models. Researchers can also collaborate with small utilities to develop and perform customer surveys to evaluate losses from outages.

Residential, industrial and commercial customers have a role to play in resilience planning as well, by providing insight into their use of electricity that can determine which functions are most critical and should be restored first in an outage. This information may be especially important in situations like the COVID-19 pandemic, which led to an unprecedented amount of employees working from home in 2020, all of them needing electricity to keep connected to their virtual workplaces.

Because utilities may find it hard to justify investing in resilience measures with no apparent short-term profit, regulators may also need to step in to encourage such moves. This can take the form of financial incentives — such as those proposed by FERC last year for cybersecurity investments — or mandatory requirements. (See FERC Pushes Cybersecurity Incentives.) EPRI noted that regulatory resilience activities vary widely across the U.S., including directives from state public utility commissions, resilience legislation, incentives or a mixture. Many states have no resilience measures in place at all.

“We witness resilience in practice every day but may recognize the critical role it plays only in the face of things that test it,” EPRI said. “More importantly, it is often those tests of our resilience that allow us to understand when and where we are vulnerable and give us the opportunity to better prioritize and prepare for the next time.”

NY Pushes Electrification with Heat Pumps

New York state and its utilities are leveraging new support at the federal level and investing $700 million in a program to encourage energy efficiency measures and building electrification, primarily through clean energy heat pump technologies.

New York Electrification
NYSERDA CEO Doreen Harris | NY-GEO

“Heat pumps and electrification are some of our most pressing challenges, as buildings are responsible for approximately a third of New York’s energy-related greenhouse gas emissions,” New York State Energy Research and Development Authority CEO Doreen Harris said Tuesday.

Through the state’s Clean Heat program, NYSERDA alone is investing $230 million, Harris told over 160 participants at a webinar hosted by the New York Geothermal Energy Association (NY-GEO).

To achieve a carbon neutral building stock by midcentury, as required by the Climate Leadership and Community Protection Act, new construction projects will need to be all-electric, and existing buildings will need to be updated to all-electric demand, she said.

“We are moving the needle on both of these priorities, and just last month we awarded $13 million to 14 all-electric, energy-efficient, carbon-neutral, multifamily buildings throughout the second round of our $40 million Buildings of Excellence competition,” Harris said.

Sending Signals, Creating Jobs

The heating market needs strong signals to move away from its current fossil-fuel comfort zone, according to Bill Nowak, executive director of NY-GEO.

The organization has seen cost-competitive heat pump proposals that were turned down “seemingly on the basis of familiarity more than anything else,” Nowak said.

New York Electrification
The big picture in transitioning away from natural gas | NY-GEO

The Geothermal Exchange Organization was pleased with measures passed in the federal end-of-year budget bill that support geothermal, COO Ryan Dougherty said. The bill included a tax credit extension through 2023 and the classification of geothermal heat pumps as renewable energy technology.

“The Biden infrastructure plan goes much farther than highways and bridges. … [It] calls for a 10-year extension of both production and investment tax credits and makes at least a couple calls out to clean energy and electrification of two million buildings,” Dougherty said.

President Biden framed his $2 trillion infrastructure plan as the American Jobs Plan and referred to well-paying union jobs as a way to build support for the plan across a broad spectrum of voters. (See Biden Infrastructure Plan Would Boost Clean Energy.)

There is potential for geothermal development under the infrastructure plan, according to Steven Schunk, an energy specialist at SUNY Geneseo.

“We may need to expand our definition to include new kinds of infrastructure, such as low-temperature district heating, that we’ve never built in the past but should in the future,” Dougherty said. “There’s nothing in the plan that points specifically to district systems, but there’s certainly potential for funding within the rough parameters.”

The Department of Energy, he added, has reached out to SUNY for information on district geothermal heating, “so clearly the administration is starting to think about the potential.”

New York Electrification
Clockwise from top left: Michaela Ciovacco, NYCP; John Ciovacco, NY-GEO; Bill Nowak, NY-GEO; Ryan Dougherty, GeoExchange COO; and NYSERDA CEO Doreen Harris | NY-GEO

NYSERDA likes to cooperate with other states on policies, standards and timelines, which are helpful for heat pumps and electrification, Harris said.

The agency’s statewide heat pump implementation plan calls for increasing the pool of skilled labor needed to boost the industry by training 14,000 workers across the heat pump supply chain, including 4,200 workers to sell, design and install systems.

“We’re very serious about building an industry here that can serve not only our goals, but perhaps export to other states as well, so the workforce development programs that we’re implementing are intended to benefit New Yorkers,” she said.

Massachusetts City Puts Energy Coach to Work

The city of Newton, Mass., has created a new government position designed to bridge the gap between the city’s goals and residents’ actions to address climate change.

Newton has been developing a plan to significantly reduce greenhouse gas emissions by 2025. Along with building walkable neighborhoods and planting trees, the city’s Climate Action Plan introduced an “energy coach” to help individuals adopt renewable energy upgrades to their homes, businesses and vehicles.

Liora Silkes, who stepped into the role earlier this year, is working with residents, builders and contractors to reduce carbon emissions.

energy coach
Liora Silkes recently joined the Newton, Mass., city government as the first “energy coach,” a point person for individuals and businesses to contact with questions about energy efficiency upgrades and transitioning to renewable energy sources. | Asha Iyer

Residents can ask questions about everything from home retrofits and solar panels to electric vehicles and heat pumps and get free advice on how to make the transition.

“There’s been a lot of interest,” Silkes told NetZero Insider, “especially from individuals not well-versed in building science.”

Silkes has spent the past few weeks alternating between answering technical questions and guiding Newton residents through their first steps in understanding energy efficiency.

The benefit of consulting with an energy coach instead of a contractor is that the coach is not trying to sell a product, Silkes said.

There are a variety of programs and resources available to help residents convert to solar or improve home insulation, but the process of finding the right fit can be overwhelming. Some residents may not know these programs exist. Silkes said she connects residents to the resources they need to reduce emissions as much as possible in the most affordable way.

Newton’s residential and commercial buildings account for about 64% of the city’s GHG emissions. Helping Newton’s citizens with home energy upgrades is a vital part of achieving the statewide goal of net-zero emissions by 2050, Silkes said.

Local leadership believes the municipal energy coach position is the first of its kind in the U.S. In the face of rapidly approaching deadlines for emission reductions, it is also an important one, Jonathan Klein, a member of Newton Citizens Commission on Energy, told NetZero Insider.

The political environment for climate action is critical, but meeting the city’s goals is “up to many little decisions made by individuals,” Klein said.

energy coach
The city of Newton, Mass., is expanding its efforts to power city infrastructure like this elementary school with solar by creating an energy coach position to support residents’ energy goals. | City of Newton

He helped develop the full-time position, and he volunteers as a part-time energy coach for the community. Klein built a website to make it easier for Newton residents and businesses to schedule a free phone or video consultation. Other volunteer energy coaches available on the website include experts in solar, heating, insulation and electric vehicles.

One Newton woman bought a dental practice and knew it could be more energy efficient. The energy coaches connected her with a renovator who focuses on making small businesses environmentally sustainable. Another resident contacted Klein with questions about why the two bids he received on heat pumps were so different. Others reach out to make sure they are not being scammed by so-called solar energy companies offering lower energy bills.

“I truly believe that climate change is an existential threat, and I wanted to do something about it,” Klein said, but he also runs his own business and is raising a family. The full-time energy coach can make a stronger impact in the community because their workday and expertise are dedicated to helping individuals with the logistics of energy upgrades, he said.

Silkes graduated from Tufts University in 2019 with a bachelor’s degree in environmental studies and sociology; she previously worked for the energy efficiency incentives program, Mass Save.

She views her new role as a way to build on state and national programs like HeatSmart, which helps low-income households reduce energy use by advising them on how to change their heating habits and sources. Instead of advising individuals in a single area of energy use, Silkes has an opportunity to help individuals look at their insulation, heating and cooling, energy storage and transportation holistically.

Ann Berwick, Newton’s co-director of sustainability and former chair of the department of public utilities, said both policymakers and individuals have an obligation to work at attaining carbon neutrality. But there is a “general recognition that people need help figuring out how to address climate change, even people who want to.”

Berwick and Klein said they hope the energy coach model is replicated in other municipalities.

“We’re having this technological shift on the residential side of things,” Berwick said, so the introduction of an energy coach is “remarkable.”

Bill Would Make NV Energy Aim Higher on EE

A Nevada bill calls on the state’s investor-owned electric utility to set more ambitious targets for its energy efficiency programs and direct more energy-savings efforts to low-income customers.

Senate Bill 382 would require NV Energy to meet an energy savings target equal to 1.3% of retail sales. That would be an increase from the 1.1% target now set by regulation and would bring the requirement more in line with states such as Arizona and Colorado, proponents said.

The utility would be required to spend at least 10% of its energy efficiency budget on programs for low-income customers, twice the current level of 5%.

Nevada energy efficiency
NV Energy headquarters | Reliathon, CC BY-SA 3.0, via Wikimedia Commons

SB382’s sponsor, the Senate Committee on Growth and Infrastructure, held a hearing on the bill Monday but took no action.

The benefits of energy efficiency include reduced energy costs, the creation of local jobs and a more resilient grid, said Ellen Zuckerman, co-director of the utility program at the Southwest Energy Efficiency Project.

“The cheapest energy is the energy that we never have to generate at all,” Zuckerman said in presenting SB382 to the committee.

Under the bill, the Public Utilities Commission of Nevada could increase the 1.3% energy-savings target if doing so seemed reasonably achievable and cost-effective. On the other hand, the utility could ask to lower the target if economic factors such as a recession make it harder to meet.

The bill would allow the utility to recover costs of the program and counteract disincentives it may create.

Nevada energy efficiency
Ellen Zuckerman, SWEEP | State of Nevada

“We’re asking NV Energy to sell less of their product,” Dylan Sullivan, a senior scientist with the Natural Resources Defense Council (NRDC), told the committee. “They’re a utility. Utilities almost by definition economically have a lot of fixed costs. We need to address that.”

Sullivan said current regulations allow the utility to collect an amount to offset lost revenue. But if the utility is over-earning, it can’t recover the revenue, he said. SB382 would remove the restrictions related to general-rate revenue or rate-of-return limits.

SB382 would also give the utility an incentive, to be determined by the PUC, for exceeding the 1.3% energy-savings target.

The Bureau of Consumer Protection within the state Attorney General’s Office objected to some of the bill’s financial provisions.

Nevada energy efficiency
Dylan Sullivan, NRDC | State of Nevada

The bill “essentially appropriates hard-earned ratepayer money to incentivize the utility to do what it already has the duty to do, which is to follow the law,” said Ernest Figueroa, consumer advocate and chief deputy attorney general. “The language is not necessary and allows the utility to over-earn.”

NV Energy also opposed the bill as written.

Marie Steele, electrification director at NV Energy, said it’s unclear what the impact of SB382 would be when combined with other energy efficiency legislation introduced this session.

The other bills include Assembly Bill 383, sponsored by Assemblymember Howard Watts (D). AB383 would require the state Office of Energy to set energy efficiency standards for a wide range of appliances.

Steele also said the PUC already has authority to implement many of the changes called for in the legislation.

Nevada energy efficiency
Sen. Dallas Harris | State of Nevada

Sen. Dallas Harris, who chairs the Committee on Growth and Infrastructure, raised a similar issue, asking why SB382 is needed when another energy efficiency bill, SB150, was passed in 2017. SB150 requires the electric utility to implement a cost-effective energy efficiency plan that meets annual energy-savings goals set by the PUC.

“Can you explain a little bit about why that process isn’t working, or how we already know it’s not working, given that we’re just getting started with these kinds of new regs in place?” said Harris, who worked as an administrative attorney with the PUC.

Sullivan said the NRDC’s recent “Pathway” analysis pointed to energy efficiency measures as a key to meeting climate goals. They can also help the state be more resilient in facing climate change events, such as the heat wave that struck last summer, he added.

“The sort of urgency about addressing climate change wasn’t the same in 2017 as it is now,” Sullivan said. “The climate crisis has only gotten more severe since then.”

Cooling Urban Heat Islands with ‘Smart Surfaces’

Take a look at two maps of the nation’s capital: one charting upper- and lower-income neighborhoods, and one charting surface temperatures in those areas. An unsettling pattern emerges.

Wealthier areas of D.C. are cooler than lower-income areas, where asphalt, concrete and the lack of trees and green space create heat islands, with temperatures potentially 10 to 15 degrees higher than neighborhoods with tree-lined streets and parks.

Smart Surfaces
Temperatures in low-income areas of a city, like D.C., can be 10 to 15 degrees hotter than in well-off neighborhoods. | Smart Surfaces Coalition

“We’ve spent two centuries as a country mistreating low-income areas and making them miserable and hot and polluted. It’s time to change that, and we know how to do it,” said Greg Kats, founder and CEO of the nonprofit Smart Surfaces Coalition (SSC). Kats and the coalition are passionate promoters of a range of “smart” urban technologies — green roofs, porous pavements and community gardens — and the multiple benefits they offer low-income communities.

He and other speakers at a recent Atlantic Council webinar on smart surfaces believe that greening city roofs, sidewalks and other street-level infrastructure should be an integral part of President Biden’s $2 trillion infrastructure plan.

“Adopting cooler surfaces and smart surfaces, you bring down energy bills, which are a very large part of the disposable income of people who are less well-off,” Kats said. “You’re improving air quality and decreasing flooding and risk, and those have real costs.”

A recent study co-authored by Kats and posted to the SSC website suggests that adopting smart surfaces can reduce cities’ risk to extreme weather events and thus improve their credit ratings and access to low-cost capital.

Other research has firmly established the connections between dark urban roofs, roads and other surfaces, and a number of health, environmental and equity concerns, said Jennifer Roberts, the former mayor of Charlotte, North Carolina. “In hotter areas, there are more incidents of aggression and violence,” she said. “We know that children don’t learn as well. We have documented research showing that learning goes down and test scores go down. We know that in our public schools, 40% of them don’t have air conditioning.”

Similarly, the impact of smart surfaces on individual and community health is huge, said Surili Patel, director of the American Public Health Association’s Center for Climate, Health and Equity.

“Decreasing urban heat and flooding while improving air quality [can] have the largest benefits not just across the low-wealth neighborhoods but across the entire city, making a city more equitable and livable, not to mention improving social cohesion and building avenues to psychosocial resilience,” Patel said. “It’s hard to overstate these interconnections between climate change, health and equity.”

Hiding Behind Air Conditioning

The basic idea behind smart surfaces, said Kats, is that cities have done a “terrible job” of managing the sunshine and rain that are part of the urban environment. Dark, impermeable surfaces raise temperatures and cause run-off, pollution and contamination, making many U.S. cities generally unlivable during the summer months, he said. Furthermore, most infrastructure managers or city planners make decisions based primarily on cost.

“We hide behind air conditioning,” Kats said. “Smart surfaces are saying, look, the selection that we make on our surfaces — is it a green or dark surface, does it reflect sunlight back into space or absorb all the heat — those design choices have not been conscious choices. We can do better.”

The SSC website particularly calls out “cool roofs” that are light colored and reflect light back into the atmosphere rather than absorbing it; porous, permeable pavements that avoid runoff and flooding and recharge ground water; and green roofs, covered in vegetation, that lower building costs, pollution and greenhouse gas emissions.

Solar panels and urban trees are also included, and the group has developed a cost-benefit tool for calculating the long-term savings possible for cities adopting a mix of smart surfaces.

Smart Surfaces
| Shutterstock

“When you look at smart surfaces through a city lens, it’s correcting that long-term structural injustice,” Kats said. “Some of the communities we’re working with have 5% tree cover, which means kids are not in shape. They don’t see birds. They don’t play on grass, and that’s wrong.”

Similarly, Roberts sees green space and smart surfaces addressing multiple community needs. Parking lots turned into community gardens can not only help lower temperatures and pollution, but also provide fresh food in inner-city food deserts, she said.

She also emphasized the need for public-private partnerships. The private sector has “a lot of surfaces as well, a lot of private parking lots and parking decks” that should be considered in climate risk assessments, Roberts said. “A lot of cities have reworked the way they require developers to put grass islands in the middle of parking lots and have certain impermeable surfaces that are reflective.”

Community engagement at all stages of planning and decision-making is also imperative, particularly to ensure that upgrading community infrastructure does not result in higher property values and residents being priced out of their neighborhoods, Roberts said.

“We have to be conscious about eco-gentrification,” she said. “But there are solutions. I’ve seen low-income housing with solar panels on the roof, gardens in the back. We can absolutely walk and chew gum at the same time.”

Biden’s American Jobs Plan does not specifically designate ­­smart surfaces for federal programs and funding. But the plan includes $213 billion to “produce, preserve and retrofit more than 2 million affordable and sustainable places to live,” as well as money for retrofitting schools, Veterans Administration hospitals and federal buildings — all potential opportunities for incorporating smart surfaces.

Roberts sees the plan’s community block grants as an effective means for getting federal money to a range of infrastructure projects, including smart surfaces, that are developed by and benefit local communities.

Kats is hopeful that the plan will give “cities for the first time the opportunity … to make a conscious decision about their surfaces. We want green surfaces so that the air is clean; we want trees so that people get shade, and they can be outside in a vibrant environment. So, build back better; it really starts with saying, ‘We have a choice.’”

Stakeholder Soapbox: Berkshire’s Proposal Will Prevent Another Texas Power Catastrophe

Texas Power
Chris Brown | vestas

By Chris Brown, CEO, BHE Infrastructure Group

A recent column by Steve Huntoon regarding Berkshire Hathaway Energy’s proposed power solution for Texas included inaccuracies that completely misrepresent our proposal. His comments align with the disingenuous arguments shared by other critics of our proposal, who despite their criticisms have yet to offer a viable solution. (See Counterflow: Beware Those Bearing Gifts.) We believe our proposal brings real benefits to Texans — an emergency power reserve is the lowest cost, most effective way to ensure Texans never again face catastrophic blackouts.

For context, I’d like to provide background on the solution we have introduced to prevent future prolonged blackouts. Berkshire Hathaway Energy is proposing to fund $8.3 billion for the construction of the Texas Emergency Power Reserve, which would include 10 new 1,000-MW gas-fueled generating stations that are available to run during times of an emergency. This power would effectively act as blackout insurance, ensuring that future extreme hot or cold weather does not result in blackouts of longer than three hours.

Contrary to Mr. Huntoon’s view, our proposal does not make the claim that 10,000 MW would alleviate the peak load shed of 20,000 MW that Texas recently experienced. Instead, adding the 10,000 MW of reliable emergency power reserve generation fueled by on-site liquified natural gas (LNG) would have provided sufficient generation to prevent rolling blackouts lasting for longer than three-hour periods, which would have maintained heat in homes and helped avoid the loss of more than 100 lives caused by winter storm Uri.

Moreover, if this emergency power reserve were available during winter storm Uri, the units would have generated over 1,000,000 MWh during the five-day event, resulting in revenues in excess of $9 billion ($9,000/MWh x 1,000,000 MWh = $9 billion), all of which would have been returned to Texas customers — fully paying for the entire cost of the facilities.

Mr. Huntoon surprisingly states that a performance guarantee of up to $4 billion isn’t such a good deal. What’s missing from this opinion is that, as is typical in traditional rate-regulated structures, financing is done on a 50/50 debt to equity method. As such, Berkshire Hathaway Energy is putting 100% of its equity at risk with the guarantee to Texas if we fail to deliver. To our knowledge, no other generators in Texas provide a guarantee that they will start — in fact, 30,000 MW did not perform during winter storm Uri when called upon, and no generators paid damages as a result.

Texas Power
Structure of the TEPR | Berkshire Hathaway Energy

In his column, Mr. Huntoon also asks how a project costing $8.3 billion has a lifetime cost of $3.55 billion. The answer is simple: the net cost of the project factors in the benefits that the plants provide when operating for testing (two weeks per year (336 hours)) over their 40-year design life. The proposal ensures that 100% of all revenue received during testing flows back to customers as a credit on their bill, which reduces the lifetime cost of the project to $3.55 billion.

Mr. Huntoon wrongly asserts that winterizing will cost a “pittance.” In reality, estimates for fully winterizing thermal power plants will cost an estimated $3 billion and result in most units being offline for two months. Additionally, winterizing power plants does not add a single megawatt of new capacity to the system. Even if 100% of the thermal units were operating at full load during winter storm Uri, there still would have been load shedding, as there was not sufficient dispatchable capacity to meet demand. Our proposal fixes this problem.

While Mr. Huntoon offers “modest” proposals at the end of his article, they are lacking substance.

Our proposed emergency power reserve plants will not rely on critical gas infrastructure. They will be fueled by on-site LNG facilities with sufficient capacity to operate the plants at full load for seven days.

We agree the winterization of existing plants is something that should be done. But Mr. Huntoon does not mention that even if all the assets in Texas were winterized, there still would not have been enough generation during winter storm Uri.

In regard to Mr. Huntoon’s proposal to add a dual-fuel capability (like diesel or LNG), it is not possible to simply add diesel fuel to existing power plants without significant modifications to the air permit, and no existing facility is likely to add a 10-million-gallon diesel fuel tank with the expectation to never or rarely use it. Additionally, adding LNG to existing facilities does not add any desperately needed dispatchable generation to the Texas market. Our solution provides both: 10 GW of new, reliable natural gas generation and fuel resilient LNG facilities to be there when needed most.

We echo Mr. Huntoon’s best wish for Texas as it recovers from this tragedy. We strongly believe the Texas Emergency Power Reserve we’re proposing will prevent a similar event from ever happening again. Our proposal greatly serves the needs of Texans, and we have not seen any other proposals to date that truly solve the problems in the state. We are here and ready to serve as good stewards of these assets on behalf of Texans.

PJM to File Black Start Proposal Without Members’ Endorsement

PJM intends to unilaterally file a proposal with FERC regarding the contentious black start unit testing issue, without the endorsed of the Members Committee.

PJM Black Start Proposal
PJM CEO Manu Asthana | © RTO Insider LLC

In a letter issued Monday, PJM CEO Manu Asthana said the RTO will file the proposal, sponsored by the PJM Industrial Customer Coalition and Exelon, “with the recognition” that it failed to reach the necessary 66% sector-weighted threshold for endorsement at the MC on March 29. The proposal — aimed at addressing black start unit involuntary termination, substitution rules, capital recovery factor (CRF) and minimum tank suction level — received a vote of 3.17 (63.4%). (See Black Start Fails in Final PJM MC Vote.)

Asthana was responding to a separate letter sent to the PJM Board of Managers on March 31 by Old Dominion Electric Cooperative and American Municipal Power. The groups said they supported aspects of the proposal that provide reliability improvements to black start service.

“Stakeholders across the spectrum concurred with your perspective that the reliability aspects of the proposal were improvements and should be approved,” Asthana said in his letter.

ODEC and AMP ultimately voted against the proposal at the MC meeting because, they said, of its treatment of capital recovery factors (CRFs) is “unduly discriminatory.”

The CRF issue was the most disputed in discussions throughout the stakeholder process, as members voted to amend the issue charge at the December Operating Committee meeting to align with language in the problem statement after it was discovered the two documents did not match, leading to heated debates. (See Vote on PJM Black Start Compensation Deferred.)

Independent Market Monitor Joe Bowring said the CRF table was originally created in 2007 and included incorrect assumptions. Stakeholders argued the CRF values are higher than they should be under the lower corporate tax rate under the 2017 federal tax law, leading to overcompensation for black start units.

Black start unit owners and other stakeholders asserted that any changes to the CRF table should only be applied prospectively and any rates currently in place should remain changed.

Asthana said PJM and the board was conscious of the “controversy” of the proposal “regarding the application of the new rules to units that had previously received a black start commitment.”

PJM Black Start Proposal
Tasley, a single-unit 33 MW industrial gas turbine that began commercial operation in 1972 in Tasley, Va., is a black start-capable unit. | Calpine

There was “significant” discussion among members regarding the application of the new rate and commitment period to the existing black start resources in the stakeholder process, Asthana said, with many black start service providers asserting that they had “relied upon the existing CRF rate in making their investment decisions and that there was insufficient indication that the CRF would change and under what circumstances.”

“PJM was persuaded by the arguments advanced by the black start service providers that the new rate should be applied only to the new black start units but understands that it is important to get these issues before FERC for resolution,” Asthana said in his letter.

At Tuesday’s Planning Committee meeting, Mike Bryson, PJM’s senior vice president of operations, said the RTO will submit the proposal to FERC this week.