Monthly Archives: March 2018

CPES Policy Committe Update: March 27, 2018

This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by the CPES New Energy Professionals Team. 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 Kathryn Dube, CPES Executive Director, via email: kdube@ctpower.org.

In this Update:

  • ISO New England Video Presentation: Demand Resources: Energy Market Offers & Asset Management
  • PURA Dockets Released on March 20
  • Meeting Minutes from the Energy & Technology Committee Meeting on March 20
  • Energy & Technology Committee Meeting on March 29 at 10:00AM in Room 1D

REGIONAL AND INDUSTRY DEVELOPMENTS

DEMAND RESOURCES: ENERGY MARKET OFFERS & ASSET MANAGEMENT
This ISO New England video presentation provides a demonstration of tasks in eMarket and in the Customer Asset Management System (CAMS) that demand resource operators will need to perform on a regular basis with the implementation of the Price-Responsive Demand project on June 1, 2018 (48 minutes; chapter markers in the video description that you can use to jump to any section).

CONNECTICUT
On March 20, 2018, PURA established the following dockets:

  • Docket No. 18-03-28:  2018 PURA Report to the General Assembly Concerning Lost and Unaccounted for Gas 
  • Docket No. 18-03-29:  2018 PURA Review of Connecticut Public Service Company Plans for Restoration of Service that is Interrupted as Result of an Emergency 
  • Docket No. 18-03-32:  Review of the 2017 System Expansion Reconciliation Mechanisms Filed By: Connecticut Natural Gas Corporation, The Southern Connecticut Gas Company and Yankee Gas Services Company 

2018 CONNECTICUT LEGISLATIVE SESSION
The 2018 Regular Session of the Connecticut General Assembly convened on February 7, 2018 and will adjourn on May 9, 2018.  General information about the Energy and Technology Committee is available here.

  • The Energy and Technology Committee held a committee meeting on March 20, 2018.  Meeting Minutes   
  • The Energy and Technology Committee will hold a committee meeting on March 29, 2018 in Room 1D to review bills. 

March 14, 2018 Dinner meeting with Jack Betkoski, III and Tracy Babbidge

WRAP UP: CPES Dinner Meeting

Speakers:  PURA Vice-Chairman and President of NARUC, Jack Betkoski, III; Tracy Babbidge, Bureau Chief of DEEP’s Bureau of Energy and Technology Policy

Moderated by: Kate Boucher, Associate at Locke Lord LLP, Member of CPES’ New Energy Professionals Group

On Wednesday, March 14th, CPES hosted Jack Betkoski III, PURA Vice-Chairman and President of NARUC and Tracy Babbidge, Bureau Chief of DEEP’s Bureau of Energy and Technology Policy for a dinner discussion on what’s happening and in the pipeline for 2018 at DEEP and PURA. 

DEEP Bureau Chief Babbidge started the discussion with an overview of DEEP’s 2018 Comprehensive Energy Strategy released in February and its eight main themes.  She noted the challenge in writing the CES to balance the document’s strategic and comprehensive goals while writing for an audience ranging from experts to lay readers.

PURA Vice-Chairman Betkoski followed, speaking on PURA’s focus areas for the year, such as a grid modernization, the ramifications of federal tax reform for the state’s utilities, and best practices for electrical suppliers. He also discussed the new statewide water plan, submitted February 1st to the legislature for review, which outlines water policy in Connecticut for the next 50 years and his work with NARUC nationally on the water-energy nexus. 

The speakers fielded questions from moderator Kate Boucher and attendees on a range of topics, from the role of climate policy in future editions of the CES, the state’s electric-vehicle deployment strategy, and position on fuel cells, to siting of renewable energy projects and water plan implementation. Throughout the night, both speakers emphasized the collaborative relationship between DEEP and PURA and the positive synergies that have come out of the 2011 consolidation of the state’s energy policy, environmental, and public-utility functions into one agency. 

When asked to identify the state’s biggest challenges in 2018, Bureau Chief Babbage noted the complexities of progressing on DEEP’s priorities in the uncertainty that comes with an election cycle.  Vice-Chairman Betkoski identified the state’s ongoing budget problems and personnel turnover as overarching challenges for PURA.

RTO Insider’s Article “Conn. Officials Talk State Policy, Wider Trends”

To read the newly released 2018 CES, click here.

CPES Policy Committee Update: March 19, 2018

This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by the CPES New Energy Professionals Team. 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 Kathryn Dube, CPES Executive Director, via email: kdube@ctpower.org.

In this Update:

  • FERC Issues Order Accepting ISO-NE’s CASPR Revisions
  • ISO-NE’s Grid Resilience Filing with FERC
  • ISO New England Market Training
  • New England’s Wholesale Electricity Prices in 2017 were the Second-Lowest Since 2003
  • The Energy and Technology Committee will hold a public hearing on March 20.

REGIONAL AND INDUSTRY DEVELOPMENTS

FERC ISSUES ORDER ACCEPTING ISO-NE’s CASPR REVISIONS
The Federal Energy Regulatory Commission (“Commission”) issued an order late Friday, March 9, 2018 accepting the Competitive Auctions with Sponsored Policy Resources (“CASPR”) filing. FERC concludes that the CASPR proposal is consistent with the primary principles of capacity markets and appropriately addresses the potential of resources receiving out-of-market state revenues to undermine these principles. The Commission notes that out-of-market state revenues can result in building more capacity than a region needs, overpayment by consumers for capacity, inefficiently low capacity market prices and the erosion of investor confidence. The Commission concludes that the CASPR proposal, along with the New England region’s minimum offer price rules (MOPR), appropriately addresses the issues associated with out-of-market state revenues while ensuring that the overall capacity market can continue to attract and maintain appropriate levels of new resource investment. For more details, read the order here.  To learn more, view the CASPR project page on ISO New England’s website.

ISO-NE’s GRID RESILIENCE FILING WITH FERC
ISO New England filed with the Federal Energy Regulatory Commission its response to the January 8, 2018 Order Terminating Rulemaking Proceeding, Initiating New Proceeding, and Establishing Additional Procedures in Docket No. AD18-7. The ISO’s response focuses on the most significant challenge for the New England bulk power system’s resilience – fuel security.  In its response, the ISO requests the Commission afford the ISO time to work with regional stakeholders to develop a long-term solution to the fuel-security challenges facing the region. 

ISO NEW ENGLAND MARKET TRAINING
ISO New England released two new video trainings available online:

  • Pay-for-Performance Introduction – A short introduction to the new pay-for-performance (PFP) incentive program effective as of June 1, 2018 (7 minutes).
  • Pay-for-Performance Overview and Settlement – An overview of the Forward Capacity Market performance incentives known as pay for performance.  It explains what triggers the incentives and shows how performance payments are calculated.  It also includes information on settlements reports that have changed or are new for pay for performance (20 minutes, includes the seven-minute Pay-for-Performance Introduction video.)

NEW ENGLAND’S WHOLESALE ELECTRICITY PRICES IN 2017 WERE THE SECOND-LOWEST SINCE 2003
New England’s wholesale electricity prices in 2017 were the second-lowest in 15 years, following 2016, which holds the record for the lowest average annual price since 2003, according to ISO New England.  Get more details from ISO’s press release here.

2018 CONNECTICUT LEGISLATIVE SESSION
The 2018 Regular Session of the Connecticut General Assembly convened on February 7, 2018.  General information about the Energy and Technology Committee is available here.

  • The Energy and Technology Committee will hold a committee meeting on March 20, 2018 to review bills.  The meeting agenda is available here.

CPES Policy Committee Update: March 6, 2018

This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by the CPES New Energy Professionals Team. 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 Kathryn Dube, CPES Executive Director, via email: kdube@ctpower.org.

In this Update:

  • ISO New England files FCA #12 finalized results with FERC
  • Ninth Annual CLG Report Highlights 2017 Activities and Other Consumer-Related, Wholesale Electricity Industry Topics 
  • FERC Staff Inquiry Finds No Withholding of Pipeline Capacity in New England Markets
  • The Energy and Technology Committee will hold a public hearing on March 6 and March 8.

REGIONAL AND INDUSTRY DEVELOPMENTS

ISO NEW ENGLAND FILES FCA #12 FINALIZED RESULTS WITH FERC
Finalized results from the 12th Forward Capacity Auction (FCA #12) confirm that the auction, conducted on February 5 and 6, concluded with sufficient resources to meet electricity demand in 2021–2022, at the lowest price in five years. While the auction closed with enough resources to meet demand, the ISO rejected two bids from resources looking to withdraw from the capacity market for the one-year capacity commitment period. The ISO’s mandatory transmission reliability review showed that transmission lines in Greater Boston could be overloaded if the resources, Mystic 7 and Mystic 8, were not available during 2021-2022. ISO New England filed the results with the Federal Energy Regulatory Commission (FERC) on February 28. The FERC filing includes a list of resources that have an obligation to be available in that capacity commitment period. Read the press release.

NINTH ANNUAL CLG REPORT HIGHLIGHTS 2017 ACTIVITIES AND OTHER CONSUMER-RELATED, WHOLESALE ELECTRICITY INDUSTRY TOPICS
ISO New England and the Consumer Liaison Group (CLG) Coordinating Committee recently issued the 2017 Report of the Consumer Liaison Group, which summarizes the activities of the CLG during 2017. The ISO and regional electricity market stakeholders created the CLG in 2009 to facilitate the consideration of consumer interests in determining the needs and solutions for the region’s power system. The CLG is open to the public. Participants generally include consumers and consumer representatives (including state consumer and ratepayer advocates), state business and industry associations, chambers of commerce, individual businesses, trade groups, nonprofit organizations, and other end users. The CLG meets quarterly, and each meeting addresses various regional electricity and consumer issues. About 75 to 100 participants attend each meeting, both in person and via teleconference. To learn more, visit the CLG page on the ISO website.

FERC STAFF INQUIRY FINDS NO WITHHOLDING OF PIPELINE CAPACITY IN NEW ENGLAND MARKETS
A Federal Energy Regulatory Commission (FERC) staff inquiry has revealed no evidence of anticompetitive withholding of natural gas pipeline capacity on Algonquin Gas Transmission by New England shippers. The inquiry arose out of allegations made by the Environmental Defense Fund (EDF) in an August 2017 white paper, which asserted that local gas distribution companies in New England had engaged in practices to withhold pipeline capacity on the Algonquin system in order to drive up gas and/or power prices in the region. Commission staff took these allegations very seriously and conducted an extensive review of both publicly available and non-public data. On the basis of that review, staff determined that EDF’s study was flawed and led to incorrect conclusions about the alleged withholding. Commission staff found no evidence of capacity withholding and will take no further action on the matter.

2018 CONNECTICUT LEGISLATIVE SESSION
The 2018 Regular Session of the Connecticut General Assembly convened on February 7, 2018.  General information about the Energy and Technology Committee is available here.

  • The Energy and Technology Committee will hold a public hearing on March 6 and March 8. The hearing agenda for March 6 is available here and the hearing agenda for March 8 is available here.

WRAP UP: 2018 Annual Legislative Preview

Hosted by CPES and Connecticut Bar Association’s (CBA)
Energy, Public Utility and Communications Section

 

Speakers:  Co-Chair – Representative Lonnie Reed;  Co-Chair – Senator Paul Formica;  Vice Chair – Senator Tony Hwang; Ranking Member – Representative Tim Ackert

Moderated by: Alex Judd, Vice Chair of the CBA’s Energy, Public Utility and Communications Law Section, Member of CPES’ New Energy Professionals Group, and Energy Associate at Day Pitney LLP,

Nearly 100 attendees joined CPES for its Annual Legislative Preview to hear from Energy and Technology Committee leadership on what to expect in the 2018 legislative session. The session started on February 7 and was followed by DEEP’s released of the 2018 Comprehensive Energy Strategy the next day, teeing up a busy year for the committee. CPES hosted the program in collaboration with the Connecticut Bar Association’s Energy, Public Utility and Communications Law Section.

The night’s conversation was wide ranging, but throughout, the committee members kept returning to the state’s fiscal problems as a driving force in this year’s session – a reality they said affects their ability to develop rational policy recommendations on energy issues.

The night kicked off with discussion highlighting the need for a diversity of energy resources and a long-term strategic plan to reliably and cost-effectively satisfy the state’s energy needs. Legislators noted that opposition to siting new resources can be a barrier to future development.

The committee members identified a range of anticipated topics for discussion this session, including the state’s renewable portfolio standard and funding for energy efficiency and the Green Bank, and urged attendees to weigh in on these matters at upcoming public hearings.

Throughout the discussion, legislators emphasized the committee’s commitment to working in a bipartisan, collaborative way to best leverage a range of expertise and resources.