Category Archives: Energy

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.

CPES Policy Committee Update: August 28, 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:

  • RGGI States Announced Proposed Program Changes Beginning in 2021
  • United State Department of Energy Releases Report on Electric Grid Reliability and Resilience
  • 2017 CES Technical Meeting: September 13

REGIONAL AND INDUSTRY DEVELOPMENTS

RGGI STATES ANNOUNCE PROPOSED PROGRAM CHANGES BEGINNING IN 2021
On August 23, 2017, the nine Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI) announced proposed changes to the program beginning in 2021. The proposed changes, stemming from a 2016 Program Review, include a regional cap of 75,147,784 tons of CO2 in 2021, which will decline by 2.275 million tons of CO2 per year through 2030, resulting in a 30% reduction in the regional cap from 2020 to 2030. Additional adjustments have been proposed to account for the full bank of excess allowances at the end of 2020, as well as other proposed modifications.

The RGGI states will seek stakeholder comment on the draft program elements in a public meeting scheduled for September 25. Materials, including a stakeholder meeting notice and a supplementary table of year-by-year regional numbers, are posted to the RGGI, Inc. website.

UNITED STATES DEPARTMENT OF ENERGY RELEASES REPORT ON ELECTRIC GRID RELIABILITY AND RESILIENCE
On August 23, 2017, the US Department of Energy (DOE) released a report focused on a variety of challenges impacting the reliability and resilience of the electric grid. The report was initiated by the Secretary of Energy in April, with a focus on the effects of various economic and political factors on electric grid operations, including baseload generation powered by nuclear and coal.

The report highlights the significant impact of lower-cost natural gas on the retirement of generators that previously operated as baseload generation. The report also discusses the impacts of lower electricity demand (in part due to investments in energy efficiency), increased output from renewable resources, and various environmental regulations on nuclear and coal-fired power plants. DOE makes several recommendations for ways to improve reliability and resiliency, including for the Federal Energy Regulatory Commission (FERC) to move forward with efforts to improve price formation in wholesale markets and potentially find ways to compensate assets providing important reliability characteristics.

The full report is available at: https://energy.gov/staff-report-secretary-electricity-markets-and-reliability

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.

NEP: Energy Legislation 101: The Process and What Passed in 2017


Half Day Event, 9am – Noon
Connecticut Legislative Office Building
Thursday, September 28, 2017
Lobbying 101 Presentation 

Wrap Up:

CPES Holds Second 101 Series Event for New Energy Professionals!

On September 28, 2017, the Connecticut Power and Energy Society’s New Energy Professionals Committee hosted “Energy Legislation 101: The Process and What Passed in 2017” at the Legislative Office Building and State Capitol in Hartford, Connecticut. Energy Legislation 101 is the second in a series of informational sessions established to assist recently joined CPES members and those new to the industry as they become acclimated and involved within the organization. The overarching goal of the 101 series is to provide a meaningful overview of state agencies and businesses with whom professionals in the industry interact. While the event was geared toward New Energy Professionals, many established professionals were also in attendance.

The day began with an overview of the legislative process in Connecticut from Melissa Biggs, a partner at DePino, Nunez & Biggs, LLC, and Christopher Cordima, an attorney in the Connecticut Legislative Commissioners’ Office.

The overview was followed by a timely discussion of energy legislation that passed during the 2017 legislative session and what issues may arise next session. Joining the conversation were Senator Bob Duff, Representative Tim Ackert, Representative Holly Cheeseman, Representative Mike Demicco, Representative Stephen Harding, and Representative Jonathan Steinberg.  All serve on the General Assembly’s Energy & Technology Committee, Environment Committee, or both!

The day ended with a tour of the Legislative Office Building and State Capitol.

Blurb:
Please join us as Connecticut’s key energy and environment legislative staff and leaders offer a three-part Energy Legislation 101 to CPES New Energy Professionals*!  Come brush up on all the details of the legislative process.  Continue into a timely discussion of the bills which become effective as of October 1st.  Finish with a tour of the Legislative Office Building and Capitol.

This is a free event, but please register at your earliest convenience as space is limited.

Agenda:
9:00am – Networking, Coffee and Danish
(Second Floor Atrium of the Legislative Office Building)

9:30am – Energy Legislation 101:  Basics and Procedures (Hearing Room 2E)
Melissa Biggs, DePino, Nunez & Biggs, LLC
Christopher Cordima, CT Legislative Commissioners’ Office

10:00am – Current and Future Legislation Discussion: A detailed and timely conversation about the energy bills that just passed and become effective as of October 1st. (Hearing Room 2E)

11:15am: (Optional) The League of Women Voters is offering a tour of the Legislative Office Building and Capitol

*This group is not limited to age range or years of experience.  We welcome everyone to reach out to us.

The goal of the 101 series is to provide a meaningful overview of state agencies and businesses with whom professionals in our industry interact.  While this series was established with our New Energy Professionals in mind, all are welcome.” – Alex Isaac, NEP Group Member