Category Archives: Comprehensive Energy Strategy

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: October 24

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 Delays Release of Study on Regional Fuel Security
  • PURA Established a Docket on PURA’s Annual Review of the Purchased Gas Adjustment Clause Charges or Credits Filed by Connecticut Local Distribution Companies 
  • PURA Established a Docket for PURA’s Review of the LDCs’ Gas Supply Portfolio, Asset Strategies and Practices 
  • PURA Established a Docket for Review of LREC/ZREC Projects 
  • Potential Sweep of RGGI Funds
  • First Round Comments on DEEP’s Draft 2017 CES Available

REGIONAL AND INDUSTRY DEVELOPMENTS

ISO NEW ENGLAND DELAYS RELEASE OF STUDY ON REGIONAL FUEL SECURITY
ISO New England will delay the release of its Operational Fuel-Security Analysis pending resolution of the US Department of Energy (DOE) Notice of Proposed Rulemaking (NOPR) issued to the Federal Energy Regulatory Commission (FERC) on September 28, 2017. ISO New England intends to release the results of the analysis once the DOE NOPR is sufficiently resolved. For more information, see the ISO’s official statement.

CONNECTICUT

PUBLIC UTILITIES REGULATORY AUTHORITY NEW DOCKETS
On October 19, 2017, PURA established the following docket:
Docket No. 18-10-01:  PURA Annual Review of the Purchased Gas Adjustment Clause Charges or Credits Filed by Connecticut Local Distribution Companies 

On October 16, 2017, PURA established the following docket:
Docket No. 17-10-31:  PURA Review of the LDCs’ Gas Supply Portfolio, Asset Strategies and Practices 

On October 10, 2017, PURA established the following docket:
Docket No. 17-10-19:  Review of LREC/ZREC Projects 

POTENTIAL SWEEP OF RGGI FUNDS
The tentative budget agreement, which is still being negotiated, may include sweeps of the Energy Efficiency Fund, the Connecticut Green Bank, and the Regional Greenhouse Gas Initiative.  More information is available here.

CES FIRST ROUND COMMMENTS AVAILABLE
The first round of comments on the Department of Energy and Environmental Protection’s (DEEP) draft 2017 Comprehensive Energy Strategy were due September 25, 2017. The comments are available on the DEEP webpage at the following link: http://www.dpuc.state.ct.us/DEEPEnergy.nsf/$EnergyView?OpenForm&Start=1&Count=30&Expand=6.2&Seq=2

CPES Policy Committee Update: October 3, 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.

In this Update:

  • U.S. Department of Energy Proposes Grid Resiliency Rule for FERC Action
  • First Round Comments on DEEP’s draft 2017 Comprehensive Energy Strategy Available

REGIONAL AND INDUSTRY DEVELOPMENTS

U.S. Department of Energy Proposes Grid Resiliency Rule for FERC Action

On September 29, 2017, the U.S. Department of Energy (DOE) filed a Notice of Proposed Rulemaking (NOPR) directing the Federal Energy Regulatory Commission (FERC or Commission) to issue a final rule to “ensure that the reliability and resiliency attributes of generation with on-site fuel supplies are fully valued.” The NOPR pointed to the significant number of retirements of fuel-secure generation and stated that the rule must provide for “recovery of costs of fuel-secure generation units frequently relied upon to make our grid reliable and resilient.”

DOE is requiring the Commission to consider and take final action on the proposed rule within 60 days from the date of publication of the NOPR in the Federal Register. In the alternative, DOE urges the Commission to issue the rule as an interim final rule, effective immediately, with provision for later modifications after consideration of public comments.  

First Round Comments Available

The first round of comments on the Department of Energy and Environmental Protection’s (DEEP) draft 2017 Comprehensive Energy Strategy were due September 25, 2017. The comments are available on the DEEP webpage at the following link: http://www.dpuc.state.ct.us/DEEPEnergy.nsf/$EnergyView?OpenForm&Start=1&Count=30&Expand=6.2&Seq=2

CPES Policy Committee Update: September 18, 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.

In this Update:

  • New Clustering Methodology Proposed for ISO New England’s Interconnection Procedures
  • 2017 Draft Comprehensive Energy Strategy Comments due by September 25

REGIONAL AND INDUSTRY DEVELOPMENTS

NEW CLUSTERING METHODOLOGY PROPOSED FOR ISO NEW ENGLAND’S INTERCONNECTION PROCEDURES
Earlier this month, ISO New England, jointly with the New England Power Pool Participants Committee and the Participating Transmission Owners Administrative Committee, filed proposed tariff changes to incorporate a new clustering methodology in the ISO’s interconnection procedures. When specific conditions are present in the ISO’s interconnection queue, the proposed methodology would allow two or more interconnection requests to be analyzed in the same System Impact Study and for developers to share costs for certain interconnection-related transmission upgrades. Typically, each individual interconnection request involves complex and often lengthy engineering studies to identify the necessary system upgrades to accommodate the proposed resource. Therefore, at times, individual interconnection projects are not able or willing to make the necessary system upgrade investments.

The filing parties propose to first implement the clustering methodology to help move forward the backlog of interconnection requests experienced in Northern and Western Maine, where more than 5,800 megawatts of proposed new resources, mostly wind, are seeking to interconnect to the regional grid. For more information, visit the ISO Newswire.

2017 DRAFT COMPREHENSIVE ENERGY STRATEGY COMMENTS DUE 9/25

The Connecticut Department of Energy and Environmental Protection (DEEP) released a draft of the 2017 Comprehensive Energy Strategy (CES) on June 26th. Comments are due by September 25th. Visit the DEEP website for more information.

CPES Policy Committee Update: September 11, 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.

In this Update:

  • Senate Energy and Natural Resources Committee Holds Nomination Hearing to Consider FERC Nominees
  • EIA: Electricity Prices Reflect Rising Delivery Costs, Declining Power Production Costs
  • 2017 CES Technical Meeting on September 13: Agenda

REGIONAL AND INDUSTRY DEVELOPMENTS

U.S. SENATE ENERGY AND NATURAL RESOURCES COMMITTEE HOLDS NOMINATION HEARING TO CONSIDER FERC NOMINEES

On September 7, 2017, the U.S. Senate Energy and Natural Resources Committee held a nomination hearing to consider the nominations of Richard Glick and Kevin McIntyre to fill the two remaining seats on the Federal Energy Regulatory Commission (FERC).

The nominations of Neil Chatterjee and Robert Powelson were confirmed by the U.S. Senate in August, restoring a quorum to FERC for the first time since early February.  For more information, visit the FERC website.

EIA: ELECTRICITY PRICES REFLECT RISING DELIVERY COSTS, DECLINING POWER PRODUCTION COSTS

Over the past decade, retail electricity prices have not closely followed the costs of fuels used to generate electricity, such as coal or natural gas, mainly because of changes in the other costs involved with producing and delivering electricity in the United States.

The average retail price of electricity in the United States has risen about 1.5% per year between 2006 and 2016, about the same as the 1.6% per year general rate of inflation over those years. In contrast, natural gas prices for U.S. electric generators, a key component in the cost of generating electricity, have fallen at an average rate of 8.4% per year since 2006.

The cost of electricity reflects money spent on generation, transmission, distribution, and other plant-in-service additions, as well as plant operation and maintenance. Over the past decade, the portion of total electricity costs attributed to power production for most utilities has decreased from 69% to 54%, while the portion associated with delivering that electricity to customers has risen. These costs are based on financial reports filed with the Federal Energy Regulatory Commission by major utilities and represent about 70% of all electric utility spending.

Power production costs incurred by utilities include fuel costs; nonfuel costs, including the costs of building, upgrading, operating, and maintaining generators; and the costs of purchasing power from independently-owned generators or from power markets. While the fuel and purchased power costs have decreased over the decade with the decrease in natural gas prices, nonfuel costs have increased slightly.

Electricity delivery costs have increased in real 2016 dollar terms from 2.2 cents per kilowatthour (kWh) in 2006 to 3.2 cents/kWh in 2016, roughly offsetting the decrease in the generation cost. Delivery costs include:

  • Transmission expenses such as towers, poles, wires, substations, and communications equipment necessary to ensure reliable transmission of electricity from generators to neighborhoods
  • Expenses for distribution equipment to deliver electricity at lower voltages to households and businesses
  • Distribution expenses to install, operate, and maintain meters and sensors
  • Customer billing, education, relations, and other services that allow customers to participate in utility programs such as energy efficiency, rebate, and time-of-use pricing programs

Transmission and distribution costs have risen for several reasons. In many areas, aging electric infrastructure has been replaced with new equipment that allows utilities to repair faults on transmission lines remotely, to read meters remotely, and to more quickly find, repair, and communicate with customers about neighborhood reliability problems and outages. Other infrastructure has been built to improve reliability and resiliency, to connect to new sources of electricity generation (including wind and solar), and to reduce transmission-line congestion in quickly growing areas.

Other costs associated with electricity, such as administrative and general expenses, have also risen by 20% in real dollar terms since 2006, but these costs account for a smaller portion of the overall costs of providing electricity

https://www.eia.gov/todayinenergy/detail.php?id=32812
http://www.theenergycollective.com/todayinenergy/2412322/electricity-prices-reflect-rising-delivery-costs-declining-power-production-costs

CONNECTICUT

DATES SET FOR THE DRAFT 2017 COMPREHENSIVE ENERGY STRATEGY TECHNICAL HEARINGS
The Connecticut Department of Energy and Environmental Protection (DEEP) released a draft of the 2017 Comprehensive Energy Strategy (CES) on June 26th. They will hold a technical meeting on September 13, 2017 at 11:00 a.m. in Hearing Room 1, at DEEP’s New Britain Office, Ten Franklin Square, New Britain, Connecticut Directions to DEEP’s New Britain Office. The purpose of the technical meetings are to allow stakeholders an opportunity to present oral comments and to pose questions to DEEP staff and consultants involved in the preparation of the analytics and the findings in the draft Strategy. DEEP requests that you RSVP and send your questions to DEEP.EnergyBureau@ct.gov three business days prior to the scheduled date if you plan on attending and/or participating in any of the scheduled technical meetings. Visit the DEEP website for more information.