Category Archives: Connecticut Power and Energy Society (CPES)

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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CPES Policy Committee Update: February 28, 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:

  • ISO New England Releases 2017 Regional Electricity Outlook
  • New Docket Established by PURA
  • Connecticut Legislative Update
  • Governor’s Bill includes an Act Promoting Fuel Cell Use

REGIONAL AND INDUSTRY DEVELOPMENTS

ISO New England Releases 2017 Regional Electricity Outlook

ISO New England has released the 2017 Regional Electricity Outlook (REO), an annual report that examines the challenges and trends impacting New England’s power system. The REO explains the innovative solutions the ISO and regional stakeholders are pursuing to ensure reliable electricity for the region’s homes and businesses—today and into the future.

The ISO has also created new webpages that highlight and expand on the information and statistics contained in the report.

PUBLIC UTILITIES REGULATORY AUTHORITY NEW DOCKETS:

On February 23, 2017, PURA established the following docket:

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/

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

  • Raised S.B. 777: AN ACT CONCERNING THE BIODIESEL BLEND REQUIREMENT FOR HEATING OIL.  To alter the timing and delay provisions concerning the biodiesel blend requirement for heating oil.
  • Raised S.B. 860: AN ACT CONCERNING CONTRACTS FOR ZERO EMISSION RENEWABLE ENERGY CREDITS AND LOW-EMISSION RENEWABLE ENERGY CREDITS.  To require electric distribution companies to solicit long-term contracts for zero emission renewable energy credits and low-emission renewable energy credits for an additional year.
  • Raised S.B. 861: AN ACT CONCERNING RATEPAYER IMPACT STATEMENTS.  To require a ratepayer impact statement on bills which, if passed, would have a financial impact on electric ratepayers.
  • Raised S.B. 862: AN ACT CONCERNING THE PUBLIC UTILITIES REGULATORY AUTHORITY’S REVIEW OF CLAIMS ARISING FROM CONTRACTS PREVIOUSLY APPROVED BY THE AUTHORITY.  To permit the Public Utilities Regulatory Authority to review claims arising from contracts the authority previously approved.
  • Raised S.B. 863: AN ACT REQUIRING A STUDY OF TRASH-TO-ENERGY FACILITIES AS A COMPONENT OF THE COMPREHENSIVE ENERGY STRATEGY.  To require the study of the viability of trash-to-energy facilities as a component of the Comprehensive Energy Strategy.
  • Raised S.B. 899: AN ACT CONCERNING PUBLIC UTILITIES REGULATORY AUTHORITY ADMINISTRATIVE HEARINGS FOR PURCHASED GAS ADJUSTMENTS, ENERGY ADJUSTMENT CHARGES OR CREDITS AND TRANSMISSION RATES.  To no longer require the Public Utilities Regulatory Authority to hold a hearing for certain adjustments, unless a hearing is requested by a company, interested person or member of the public.
  • Raised S.B. 900: 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.  To make minor changes regarding electric supplier compliance with environmental laws, renewable portfolio standards and advertising and contract requirements and the Public Utilities Regulatory Authority report regarding electric rates.
  • Raised H.B. 7012: AN ACT REQUIRING INFORMATION ON THE STATE’S ENERGY COSTS COMPETITIVENESS AS PART OF THE COMPREHENSIVE ENERGY STRATEGY.  To assess progress in reducing electricity and other energy costs and make recommendations to improve Connecticut’s competitive position.
  • Raised H.B. 7104: AN ACT CONCERNING RENEWABLE PORTFOLIO STANDARD COMPLIANCE REQUIREMENTS.  To no longer permit suppliers and electric distribution companies to make up renewable energy portfolio deficiencies within the first three months of the succeeding calendar year.
  • Raised H.B. 7107: AN ACT CONCERNING THE INVESTMENT AND USE OF REGIONAL GREENHOUSE GAS ACCOUNT FUNDS.  To broaden the types of energy investments authorized for the proceeds from the Regional Greenhouse Gas Initiative auctions.
  • Raised H.B. 7140: AN ACT REQUIRING A STUDY OF CLASS I RENEWABLE ENERGY SOURCES THAT SUPPORT THE STATE’S COMPREHENSIVE MATERIALS MANAGEMENT STRATEGY.  To require the Commissioner of Energy and Environmental Protection to conduct a study regarding the adequacy of baseload Class I renewable energy sources that manage the state’s biomass waste stream in accordance with the state’s Comprehensive Materials Management Strategy.

The following Governor’s bill may be of interest to our membership:

  • Governor’s H.B. 7036: AN ACT PROMOTING THE USE OF FUEL CELLS FOR ELECTRIC DISTRIBUTION SYSTEM BENEFITS AND RELIABILITY.  To implement the Governor’s budget recommendations.

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

CPES Policy Committee Update: February 21, 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:

  • Consumer Liaison Group Meeting will Focus on the Role of Nuclear Power in New England
  • The Energy and Technology Committee will hold a public hearing at 1:00 PM on February 21, 2017

REGIONAL AND INDUSTRY DEVELOPMENTS:

Consumer Liaison Group Meeting Will Focus on the Role of Nuclear Power in New England

The first quarterly meeting of the New England Consumer Liaison Group (CLG) for 2017 will be held on March 2, from 12:00 p.m. to 3:30 p.m. at the DoubleTree Hotel in Westborough, Massachusetts. The meeting will focus on the role of nuclear power in New England, particularly its impacts on reliability, carbon reduction, and market prices. The meeting will feature Tracy Babbidge, Bureau Chief for the Bureau of Energy and Technology Policy for the Connecticut Department of Energy and Environmental Protection (DEEP) as the keynote speaker.

Panelists will include:

  • Kevin Hennessy, State Policy Director – New England, Dominion Resources, Inc.
  • William Berg, Vice President of Wholesale Market Development, Exelon Corporation
  • Peter Fuller, Vice President of Market and Regulatory Affairs, NRG Energy
  • Dr. Gilbert Brown, Emeritus Professor, University of Massachusetts Lowell

To register for the meeting, visit the Consumer Liaison Group webpage on the ISO New England website.

 CONNECTICUT LEGISLATION:

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

On February 21, 2017, the Energy and Technology Committee will hold a public hearing at 1:00 PM.  The agenda is available at: https://www.cga.ct.gov/2017/etdata/pha/2017PHA00221-R001300ET-PHA.htm

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

CPES 2017 Legislative Preview: Nuclear Power, the Utility of the Future, and the Affordability of Electricity

January 18, 2017 Legislative Preview: Nuclear Power, the Utility of the Future, and the Affordability of Electricity Are Considered Priorities This Session

On January 18, 2017,  the Connecticut Power and Energy Society (CPES), the Connecticut Bar Association’s (CBA) Energy, Public Utility and Communications Section, and the Renewable Energy and Efficiency Business Association (REEBA) hosted the annual Connecticut General Assembly legislative preview with leadership from the Energy and Technology Committee. House Chair Lonnie Reed, Senate Co-Chair Paul Formica, and Ranking Member Laura Hoydick participated on behalf of the committee, sharing insights on the upcoming legislative session and where they plan to focus their efforts this year. The legislators informed attendees that the committee will hold an informational session on January 24, 2017 to hear from key stakeholders on some of the pressing issues facing the state.

As for priorities, Senator Formica said that nuclear power and the viability of Millstone Nuclear Power Station will be a major area of focus this session. According to Formica, the 2,100 megawatt (MW) plant employs more than 1,000 employees and accounts for billions of dollars’ worth of economic benefits. Its carbon-free energy, he said, is an important part of the bridge to a renewable energy future. Addressing the changes affecting the traditional electric utility business model (dubbed “Utility 2.0”) and the affordability of electricity are also considered priorities this session. Representative Reed also spoke of plans to examine Connecticut’s energy “ecosystem” to determine where renewable resources and distributed forms of electricity can be better sited throughout the state.

Finally, the committee members all stressed the importance of working together and forming partnerships to advance the interests of Connecticut. They noted that solving the state’s budgetary issues and advancing a business-friendly atmosphere were important ways to grow jobs and attract investment in the state. According to the state’s Office of Fiscal Analysis, Connecticut faces an estimated $1.4 billion budget deficit for the 2017-2018 fiscal year.

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