This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by a team recently formed with support from CPES, known as the New Energy Professionals. If you are interested in learning more about the New Energy Professionals, the Policy Committee, or if you have ideas for future policy updates, we would welcome your input and feedback. Please send comments to Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.
This week’s features:
- DEEP presents its 2016 Connecticut Comprehensive Energy Strategy
- 2016 Legislation Summary
- ISO New England’s 2015 Annual Markets Report released
Connecticut Policy/Regulatory Update: Connecticut Department of Energy and Environmental Protection
On May 25, 2016, DEEP held a scoping and public input session on the its 2016 Connecticut Comprehensive Energy Strategy. The key topics focused on the electricity, building & processes and transportation sectors. Comments are due June 14, 2016. The PowerPoint presentation can be found here.
CONNECTICUT LEGISLATION:
Information about the Energy and Technology Committee, including committee meetings and public hearings, is available at: https://www.cga.ct.gov/et/.
The 2016 regular session ended on May 4, 2016. The following bills that passed both chambers during the regular or special session and that may be of interest to you received a public act number:
- S.B. No. 272: AN ACT CONCERNING THE USE OF MICROGRID GRANTS AND LOANS FOR CERTAIN DISTRIBUTED ENERGY GENERATION PROJECTS. PUBLIC ACT 16-196.
- S.B. No. 334: AN ACT CONCERNING REVISIONS TO CERTAIN ENERGY PURCHASING POOL AND LIFE-CYCLE COST ANALYSES STATUTES. PUBLIC ACT 16-173.
- S.B. No. 366: AN ACT CONCERNING ADMINISTRATION OF THE CONNECTICUT GREEN BANK, THE PRIORITY OF THE BENEFIT ASSESSMENTS LIEN UNDER THE GREEN BANK’S COMMERCIAL SUSTAINABLE ENERGY PROGRAM AND THE GREEN BANK’S SOLAR HOME RENEWABLE ENERGY CREDIT PROGRAM. PUBLIC ACT 16-212.
- S.B. No. 394: AN ACT CONCERNING AUTHORIZATIONS RELATING TO VIRTUAL NET METERING FOR CERTAIN ZERO OR LOW EMISSION GENERATION PROJECTS. PUBLIC ACT 16-216.
- S.B. No. 501: AN ACT ADJUSTING THE STATE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2017. MAY SPECIAL SESSION, PUBLIC ACT 16-2.
- S.B. No. 502: AN ACT CONCERNING REVENUE AND OTHER ITEMS TO IMPLEMENT THE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2017. MAY SPECIAL SESSION, PUBLIC ACT 16-3.
Regional and Industry Developments
New England’s Wholesale Electricity Markets Operated Competitively Last Year According to the 2015 Annual Markets Report
On May 25, 2016, ISO New England’s Internal Market Monitor released the 2015 Annual Markets Report which found that wholesale power markets in New England operated competitively last year, bringing lower average power prices that reflected lower natural gas prices in 2015. The average real-time price of wholesale electric energy in 2015 fell by more than a third, or more than $22 per megawatt-hour (MWh), to $41.00/MWh as a result of natural gas prices that were 41% lower than their 2014 average. The prices of both natural gas and wholesale power were the lowest since 2012. The price of natural gas is a key factor in the price of wholesale power because the fuel generates 49% of the electricity produced in New England. The cost of fuel is the largest input into the cost of electricity production.
ISO New England issued a press release with highlights from the report, available here.
Anne George spoke of the dramatic shift toward natural gas-fired generation over the last 15 years and the significant number of new gas-fired generators looking to interconnect to the system. When asked about the most pressing challenge facing the region, George pointed to the balancing of public policy objectives with the administration of competitive wholesale electricity markets in New England.
Camilo Serna identified inadequate natural gas infrastructure as the region’s greatest challenge, pointing to the Access Northeast pipeline expansion project as a potential solution to that problem. He also discussed the challenge of meeting the region’s clean energy goals without imposing too many costs on electric ratepayers. He supported a diverse portfolio of resources to achieve these goals, including large-scale hydropower from Eastern Canada and other cost-effective clean energy resources. Dan Dolan discussed turnover in New England’s generation fleet and the resources that stand ready and willing to replace those that are retiring. He noted that more than 1,400 MW of new generation cleared in the most recent Forward Capacity Auction out of more than 6,000 MW of new resources that qualified to participate in the auction. Rebecca Tepper spoke of the region’s thriving wholesale electricity market, which is producing some of the most cost-effective resources in the country. She said that the Attorney General’s Office has not been supportive of out-of-market solutions, like funding natural gas pipeline expansion projects through electric ratepayers. This risky and untested plan, she said, is being challenged in the Massachusetts court system.
GAS GENERATION PERSPECTIVE:
MODERATOR:
The panelists provided their thoughts on developments taking place within their respective states and around the region, including energy efficiency investment, renewable energy development, grid modernization, and natural gas pipeline expansion.