Category Archives: 2017

FERC Staff to Hold Technical Conference on Wholesale Markets and State Policies

On May 1-2, 2017, Federal Energy Regulatory Commission (FERC) staff will hold a technical conference to discuss the impact of state policies on wholesale energy and capacity markets operated by the Eastern Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs). According to the Notice of Technical Conference, “Over the years, the rules underpinning competitive wholesale markets have evolved to address a myriad of issues while ensuring the reliable delivery and sale of electricity at just and reasonable rates. In recent years, there has been increased interest by state policy makers to pursue policies that prioritize certain resources or resource attributes. Because the wholesale competitive markets, as currently designed, select resources based on principles of operational and economic efficiency without specific regard to resource type, there is an open question of how the competitive wholesale markets, particularly in states or regions that restructured their retail electricity service, can select resources of interest to state policy makers while preserving the benefits of regional markets and economic resource selection.”

The technical conference is intended to foster “further discussion regarding the development of regional solutions in the Eastern RTOs/ISOs that reconcile the competitive market framework with the increasing interest by states to support particular resources or resource attributes.” For more information, visit the FERC website. 

For information on the discussions taking place in New England on Integrating Markets and Public Policy (IMAPP), visit the New England Power Pool (NEPOOL) website. IMAPP discussions, launched by NEPOOL in August 2016, are intended to identify potential changes to the region’s wholesale electricity markets to accommodate the public policy goals of the New England states, namely their carbon reduction and renewable energy goals.

Last month, the Chair of NEPOOL’s IMAPP process announced that further meetings on IMAPP will be deferred until May 2017 to give ISO New England time to identify a conceptual market approach that could be implemented in the near term and to provide states additional time to further analyze the various long-term proposals discussed in the IMAPP process to date.        

Update on Connecticut’s Comprehensive Energy Strategy

 

DEEP Previews Much Anticipated Comprehensive Energy Strategy
March 23, 5:30 – 8:30 PM, Courtyard Marriott, Cromwell
Click here for the CES Presentation

On March 23, 2017, the Connecticut Power and Energy Society (CPES) hosted Mary Sotos and Tracy Babbidge from the Connecticut Department of Energy and Environmental Protection (DEEP) for an update on Connecticut’s latest Comprehensive Energy Strategy (CES). Mary Sotos, former Policy Lead for the U.S. Energy Program at World Resources Institute, was recently appointed Deputy Commissioner for Energy at DEEP. Tracy Babbidge is Chief of the Bureau of Energy and Technology Policy.

The CES is an assessment of future energy needs in the state and strategies for reducing costs to ratepayers, ensuring reliable power system operations, and mitigating the public health and environmental impacts of Connecticut’s energy use. DEEP is required to prepare a CES every three years. Babbidge informed attendees that DEEP expects to release a draft of the next CES in April, followed by technical meetings, public hearings, and a 60-day written comment period. DEEP plans to submit the final CES to the General Assembly’s Energy and Technology Committee before the end of the legislation session in June. The major topics to be reviewed in the CES include securing cheaper, cleaner, more reliable energy options in the following sectors: (1) electricity, (2) buildings, and (3) transportation. On the subject of electricity, Babbidge explained that DEEP’s analysis centers on ways to strategically and cost-effectively advance the deployment of clean energy to meet Connecticut’s public policy goals, with a continued focus on competitive procurement models and program costs.

Babbidge also provided updates on several programs and initiatives advancing under DEEP’s leadership, including the three-state Clean Energy Request for Proposals (RFP), the small-scale RFP for energy efficiency and renewable resources, the Connecticut microgrid program, and the Lead By Example program. Through the three-state Clean Energy RFP, the soliciting parties in Connecticut, Massachusetts, and Rhode Island collectively selected projects that represent approximately 460 MW of clean energy for the New England market, Babbidge explained. These projects have advanced to the contract negotiation stage with the states’ electric distribution companies. Through the small-scale RFP for energy efficiency and renewable resources, DEEP selected 25 projects, including 402 MW of wind and solar projects and 34 MW of energy efficiency projects. These projects have advanced to the contract negotiation stage with Connecticut’s electric distribution companies. Through the Connecticut microgrid program, more than $20 million in grants have been awarded to microgrid projects in the state, with three projects becoming operational since 2014. Finally, the Lead By Example program, which enables energy-efficiency upgrades in Connecticut’s state and local government buildings, is contributing to significant cost savings and helping Connecticut become one of the most energy efficient states in the nation.

CPES Policy Committee Update: March 19, 2017

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.

This week’s features:

  • ISO New England Joins with Other Electric Grid Operators to Examine the Impact of Emerging Technologies
  • Connecticut Legislative Update
  • Energy and Technology Committee Meeting to JF bills on March 21st

REGIONAL AND INDUSTRY DEVELOPMENTS

ISO New England Joins with Other Electric Grid Operators to Examine the Impact of Emerging Technologies

A report from an affiliation of independent electric grid operators concludes that the future of the North American power grid depends on effectively adding renewables to the grid, the accuracy and availability of data from “behind-the-meter” resources and coordinating these distributed energy resources at the grid operator level to preserve reliability.

The report, “Emerging Technologies: How ISOs and RTOs can create a more nimble, robust electricity system,” was published March 16, 2017 by the ISO/RTO Council (IRC), an affiliation of nine non-profit independent system operators (ISO) and regional transmission organizations, including ISO New England. Collectively, IRC members serve two-thirds of electricity consumers in the United States and more than half in Canada.

In the report, the IRC defines a number of positions regarding policies, strategic approaches, worthy goals, and critical success factors members feel will either enable or hinder them in the near future.

Learn more by reading the press release, summary document, or full report.

CONNECTICUT LEGISLATIVE UPDATE:

Information about the Energy and Technology Committee, including committee meetings and public hearings, is available at: https://www.cga.ct.gov/et/

On March 16, 2017, the Energy and Technology Committee held a meeting to consider bills for Joint Favorable (JF) action.  The agenda is available at: https://www.cga.ct.gov/2017/etdata/ca/2017CA-00316-R001300ET-CA.htm. 

The current list of bills reported out of the Energy and Technology Committee is available at:  https://www.cga.ct.gov/asp/menu/CommJFList.asp?comm_code=et. 

The Energy and Technology Committee will hold its next meeting on Tuesday, March 21, 2017 at 2pm in Room 2B of the LOB to JF bills. The Committee’s JF deadline is March 23, 2017.   

CPES does not take a position on these legislative proposals; this is provided for informational purposes only to CPES members.

CPES Policy Committee Update: March 6, 2017

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 Kathryn Dube, CPES Executive Director, via email: kdube@ctpower.org.

This week’s features:

  • FERC Staff To Hold Technical Conference on Wholesale Markets and State Policies
  • Connecticut Legislative Update
  • Energy and Technology Committee to Hold Public Hearing on March 7th

REGIONAL AND INDUSTRY DEVELOPMENTS

FERC Staff To Hold Technical Conference on Wholesale Markets and State Policies

Federal Energy Regulatory Commission (FERC) staff will hold a 2-day technical conference on May 1 and May 2, 2017 to discuss the intersection of state policies and wholesale energy and capacity markets operated by the Eastern Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs). According to the Notice of Technical Conference, “Over the years, the rules underpinning competitive wholesale markets have evolved to address a myriad of issues while ensuring the reliable delivery and sale of electricity at just and reasonable rates. In recent years, there has been increased interest by state policy makers to pursue policies that prioritize certain resources or resource attributes. Because the wholesale competitive markets, as currently designed, select resources based on principles of operational and economic efficiency without specific regard to resource type, there is an open question of how the competitive wholesale markets, particularly in states or regions that restructured their retail electricity service, can select resources of interest to state policy makers while preserving the benefits of regional markets and economic resource selection.” According to the notice, the technical conference will foster “further discussion regarding the development of regional solutions in the Eastern RTOs/ISOs that reconcile the competitive market framework with the increasing interest by states to support particular resources or resource attributes.” For more information, visit the FERC website.

For information on the discussions taking place in New England on Integrating Markets and Public Policy (IMAPP), visit the New England Power Pool (NEPOOL) website. IMAPP discussions, launched by NEPOOL in August 2016, are intended to identify potential changes to the region’s wholesale electricity markets to accommodate the public policy goals of the New England states, namely their carbon reduction and renewable energy goals.      

 

CONNECTICUT LEGISLATIVE UPDATE:

Information about the Energy and Technology Committee, including committee meetings and public hearings, is available at: https://www.cga.ct.gov/et/

On Tuesday, March 7, 2017 at 11:00 AM in Room 2E of the LOB, the Energy and Technology Committee will hold a public hearing.  The agenda is available at: https://www.cga.ct.gov/2017/etdata/pha/2017PHA00307-R001100ET-PHA.htm

The following raised bills may be of interest to our membership:

  • S.B. No. 860 (RAISED) AN ACT CONCERNING CONTRACTS FOR ZERO EMISSION RENEWABLE ENERGY CREDITS AND LOW-EMISSION RENEWABLE ENERGY CREDITS. (ET)
  • S.B. No. 861 (RAISED) AN ACT CONCERNING RATEPAYER IMPACT STATEMENTS. (ET)
  • S.B. No. 862 (RAISED) AN ACT CONCERNING THE PUBLIC UTILITIES REGULATORY AUTHORITY’S REVIEW OF CLAIMS ARISING FROM CONTRACTS PREVIOUSLY APPROVED BY THE AUTHORITY. (ET)
  • S.B. No. 863 (RAISED) AN ACT REQUIRING A STUDY OF TRASH-TO-ENERGY FACILITIES AS A COMPONENT OF THE COMPREHENSIVE ENERGY STRATEGY. (ET)
  • S.B. No. 899 (RAISED) AN ACT CONCERNING PUBLIC UTILITIES REGULATORY AUTHORITY ADMINISTRATIVE HEARINGS FOR PURCHASED GAS ADJUSTMENTS, ENERGY ADJUSTMENT CHARGES OR CREDITS AND TRANSMISSION RATES. (ET)
  • S.B. No. 900 (RAISED) AN ACT CONCERNING MINOR REVISIONS TO ELECTRIC SUPPLIER COMPLIANCE REQUIREMENTS REGARDING ENVIRONMENTAL LAWS, RENEWABLE PORTFOLIO STANDARDS AND ADVERTISING AND CONTRACT PROVISIONS AND THE PUBLIC UTILITIES REGULATORY AUTHORITY’S REPORTING OF ELECTRIC RATES. (ET)
  • Raised S.B. 936: AN ACT CONCERNING TECHNICAL AND CONFORMING CHANGES TO THE ENERGY AND TECHNOLOGY STATUTES.  To make technical and conforming changes to the energy and technology statutes.
  • Raised S.B. 973: AN ACT CONCERNING A RESIDENTIAL SUSTAINABLE ENERGY PROGRAM.  To establish a state residential sustainable energy program for the purpose of financing energy improvements.
  • Raised S.B. 974: AN ACT REQUIRING THE STUDY OF ENERGY SOURCES.  To require the chairperson of the Public Utilities Regulatory Authority to conduct a study regarding energy sources.
  • H.B. No. 7104 (RAISED) AN ACT CONCERNING RENEWABLE PORTFOLIO STANDARD COMPLIANCE REQUIREMENTS. (ET)
  • H.B. No. 7105 (RAISED) AN ACT CONCERNING WATER COMPANY RATE ADJUSTMENT MECHANISMS. (ET)
  • H.B. No. 7106 (RAISED) AN ACT CONCERNING AUDIT REPORTS FILED WITH THE PUBLIC UTILITIES REGULATORY AUTHORITY. (ET)
  • H.B. No. 7107 (RAISED) AN ACT CONCERNING THE INVESTMENT AND USE OF REGIONAL GREENHOUSE GAS ACCOUNT FUNDS. (ET)
  • H.B. No. 7140 (RAISED) AN ACT REQUIRING A STUDY OF CLASS I RENEWABLE ENERGY SOURCES THAT SUPPORT THE STATE’S COMPREHENSIVE MATERIALS MANAGEMENT STRATEGY. (ET)
  • Raised H.B. 7208: AN ACT CONCERNING THE COMMERCIAL PROPERTY ASSESSED CLEAN ENERGY PROGRAM.  To make changes to the commercial property assessed clean energy program.
  • H.B. No. 7232 (RAISED) AN ACT REQUIRING THE STUDY OF THE USE OF TECHNOLOGY IN THE STATE. (ET)

CPES does not take a position on these legislative proposals; this is provided for informational purposes only to CPES members.

February 15, 2017: Energy Procurement Strategies: Business and Government Insights

 

WRAP UP:
February 15, 2017: CPES Hosts Discussion on Energy Procurement Strategies
Click here for David Ferro’s Presentation

On February 15, 2017, the Connecticut Power and Energy Society (CPES) hosted a discussion on energy procurement strategies featuring government and business insights from Jeffrey Gaudiosi, Power Procurement Manager for the State of Connecticut, and David Ferro, Director of Energy Management Services and Business Development for Pennoni Associates.

Jeffrey Gaudiosi opened the discussion with a look back at how energy was procured in the state of Connecticut after the electricity market deregulated in 1998. Deregulation allowed retail customers to choose a competitive supplier of electricity, but required the state’s electric distribution companies to continue to provide “Standard Service” and “Supplier of Last Resort Service” to customers who did not choose a competitive supplier. He explained that the legislature dictated how electricity was procured for these customers, requiring the utilities to employ a three-year laddering model for Standard Service power procurements. This procurement method involved a series of overlapping wholesale contracts extending over several years, which kept retail electricity prices relatively stable for consumers. This method worked well for many years, Gaudiosi explained, but fell out of favor when Standard Service rates reached record levels and prevented retail customers from taking advantage of declining wholesale electricity prices in the 2009-2010 timeframe.

When the Department of Public Utility Control (DPUC) and the Department of Environmental Protection (DEP) merged in 2011, a power procurement manager position was created and a power procurement plan was put in place to address many of the shortfalls associated with the former procurement process. According to Gaudiosi, the plan was built to be flexible and allow the state’s utilities to adjust to market conditions. Power supply rates were fixed from January through June and from July through December, splitting up the winter months to moderate prices. The timing for power purchases was also adjusted, he explained. The state moved away from long-term contracts and instead purchased power four times a year through short-term contracts to allow customers to benefit from current market prices. The approval process for power procurements was dramatically improved as well, according to Gaudiosi. Instead of waiting 30 hours for bids to be approved, the new power procurement manager could now act with the authority of a public utility commissioner and approve bids within a few hours in consultation with the utilities and the Office of Consumer Counsel. With this improved procurement process, Gaudiosi explained, the state of Connecticut is now enjoying the lowest Standard Service rates since 2004.    

 David Ferro rounded out the discussion with a look at how consultants and brokers are changing their power procurement strategies based on what is happening in the marketplace. He highlighted natural gas storage volumes as one of the primary drivers of wholesale electricity prices in the U.S. In New England, he pointed to increasing capacity and transmission costs impacting wholesale electricity prices, and discussed the significant turnover in the generation fleet away from coal- and oil-fired generation toward natural-gas fired generation. This, he said, will put additional pressure on the natural gas infrastructure serving the region, which can have a significant impact on wholesale electricity prices. He concluded with a list of seven steps for developing an energy supply strategy – for facility managers, supply chain professionals, and those involved in managing energy procurement strategies. Technology advancements, he said, will be extremely important in creating a “sustainable energy community” where consumers have more control over their energy supply.   

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