Category Archives: gas

CPES Policy Committee Update: October 11, 2016

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 Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.

This week’s features:

  • PURA Opens Docket on CT Gas Forecasting for 2017-2021
  • ISO Begins Winter Reliability Program
  • FERC Issues Notice of Inquiry (NOI) on Utility Transactions
  • Important Dates for CT and MA 2017 Legislative Sessions

 

REGULATORY DEVELOPMENTS

PUBLIC UTILITIES REGULATORY AUTHORITY NEW DOCKETS:

On September 30, 2016, Connecticut Natural Gas and Southern Connecticut Gas Company each submitted a Biennial Forecast of Natural Gas Demand and Supply and, on October 3, 2016, Yankee Gas Services Company submitted a Biennial Forecast of Natural Gas Demand and Supply, which may be of interest to you:

  • Docket No. 16-10-06:  PURA Review of the Connecticut Gas Utilities Forecasts of Demand and Supply 2017-2021

 

REGIONAL DEVELOPMENTS

ISO New England Begins Preparations for the 2016/2017 Winter Season

This winter, ISO New England will administer another winter reliability program to mitigate the reliability risks associated with inadequate fuel supplies during cold weather conditions. The program will run from December 1, 2016 to February 28, 2017 and include an oil inventory component, an LNG component, and a demand response component. Requests to participate in the program were due to ISO New England by October 1, 2016. For more information, visit ISO New England’s Winter Reliability Solutions for 2015/2016 to 2017/2018 key project page: https://www.iso-ne.com/committees/key-projects/winter-reliability-solutions.

 

FEDERAL ENERGY REGULATORY COMMISSION (“FERC”)

On September 22, 2016 FERC issued a Notice of Inquiry (“NOI”) on the issue of whether FERC should change its approach/involvement in public utility mergers, acquisitions and dispositions under the Federal Power Act (“FPA”).  The full text of the NOI can be found here: http://elibrary-backup.ferc.gov/IDMWS/common/OpenNat.asp?fileID=14360320

 

LEGISLATIVE AFFAIRS

CONNECTICUT LEGISLATION:

The 2016 Connecticut regular session ended on May 4, 2016.  The 2017 Connecticut regular session begins January 4, 2017.

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

 

MASSACHUSETTS LEGISLATION:

The 2015-2016 Massachusetts formal session ended on July 31, 2016.  The 2017-2018 Massachusetts session begins January 4, 2017.

Information about the Joint Committee on Telecommunications, Utilities and Energy, including hearings and bills in committee, is available at: https://malegislature.gov/Committees/Joint/J37.

CPES Policy Committee Update: August 23, 2016

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 Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.

This week’s features:

  • MA Supreme Court Strikes Down DPU Order on Authority
  • Op-Ed Block Island Wind Farms

 

Regional & Industry Developments

MA Supreme Court Pushes Back on DPU Authority

On August 17, 2016, the Massachusetts Supreme Judicial Court struck down an order issued by the Massachusetts Department of Public Utilities last October which found that the Department has pre-existing authority to review and approve contracts for natural gas pipeline capacity filed by electric distribution companies.  The Court ruled that the Department erred in interpreting Massachusetts law as authorizing it to review and approve ratepayer-backed, long-term contracts by electric distribution companies for natural gas capacity. The Court concluded that the order is invalid “because, among other things, it would undermine the main objectives of the [Restructuring Act of 1997] and re-expose ratepayers to the types of financial risks from which the Legislature sought to protect them.”

The Court’s decision is available at: http://www.mass.gov/courts/docs/sjc/reporter-of-decisions/new-opinions/12051.pdf

 

(CT/RI) Op-Ed: Block Island Wind Farm: Windfall for the politically connected

Under the deal engineered by Carcieri, Rhode Island’s regulated utility, National Grid, will be required to pay 24.4 cents per kilowatt hour for the windmill power — more than twice current market rates.

Sweetening the deal even more, there are price escalators of 3.5 percent a year, so that by the end of the 20-year contract period, National Grid will be paying 50 cents per kilowatt hour from the wind farm.

http://www.theday.com/local-columns/20160820/block-island-wind-farm-windfall-for-politically-connected

 

 

CPES Policy Committee Update: May 3, 2016

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 Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.

This week’s features:

  • A Wealth of Competitive Products on EnergizeCT
  • MicroGrids, Net Metering and Green Bank subject of legislation that is on the move
  • New England gas pipeline expansion status

 

CONNECTICUT POLICY/REGULATORY UPDATE:  CT Public Utilities Regulatory Authority

Connecticut Energy Shopping Site Shows Opportunities for Savings; Majority Of Competitive Suppliers Provide Green Power, Value-Added Products

Under the auspices of the Public Utility Regulatory Authority, the State of Connecticut has established EnergizeCT, a robust, well-designed and consumer-friendly electricity shopping website that routinely posts competitive generation supply products offered by licensed retail electricity suppliers, the Retail Energy Supply Association said yesterday in announcing a review of the savings and value-added services available to customers

RESA’s review of EnergizeCT shows more than two dozen competitive retail energy suppliers actively posting 212 different product offerings at prices highly competitive with default rates offered by the state’s utility companies.

The review shows there are a significant number of competitive pricing plans with terms of service that vary from six to 12 months that offer Connecticut electricity consumers the opportunity to beat the current Standard Service rates by 20 percent, 25 percent and in some cases over 30 percent, RESA said

“A wealth of competitive electricity products offer Connecticut consumers the opportunity to realize savings on their bill,” observed Marc Hanks, RESA’s New England chairman. “But there are also a wide range of value-added product offerings, the most prominent among them being ‘green’ energy products that offer consumers an opportunity to buy electricity that meets their environmental preferences.”

http://www.energychoicematters.com/stories/20160428f.html

 

CONNECTICUT LEGISLATION:

Information about the Energy and Technology Committee, including committee meetings and public hearings, is available at: https://www.cga.ct.gov/et/.  The deadline to report bills out of the Energy and Technology Committee has passed.

On April 27, 2016, the Senate passed the following bills that may be of interest to you:

  • S.B. No. 272: Senate passed as amended by Senate Amendment Schedule A. (AN ACT CONCERNING THE USE OF MICROGRID GRANTS AND LOANS FOR CERTAIN DISTRIBUTED ENERGY GENERATION PROJECTS).
  • S.B. No. 366: Senate passed as amended by Senate Amendment Schedule A. (AN ACT CONCERNING ADMINISTRATION OF THE CONNECTICUT GREEN BANK, THE PRIORITY OF THE BENEFIT ASSESSMENTS LIEN UNDER THE GREEN BANK’S COMMERCIAL SUSTAINABLE ENERGY PROGRAM AND THE GREEN BANK’S SOLAR HOME RENEWABLE ENERGY CREDIT PROGRAM).

On April 28, 2016, the Senate passed the following bill that may be of interest to you:

  • S.B. No. 394: Senate passed as amended by Senate Amendment Schedule A. (AN ACT CONCERNING AUTHORIZATIONS RELATING TO VIRTUAL NET METERING FOR CERTAIN ZERO OR LOW EMISSION GENERATION PROJECTS).

On April 29, 2016, the Senate passed the following bill that may be of interest to you:

  • S.B. No. 344: Senate passed as amended by Senate Amendment Schedule A.  (AN ACT REQUIRING A STUDY OF THE ADEQUACY OF ENERGY SUPPLIES IN THE STATE).

 

Regional and Industry Developments

Maine Public Hearings on Pipeline Expansion

State utility regulators will begin public hearings Thursday on a three-year-old plan to expand pipeline capacity and potentially lower energy costs by committing ratepayers to spend up to $75 million annually on natural gas purchases.  But after three years of study, it’s still unclear how much money – if any – utility customers would save by helping to increase the supply of natural gas, which is used to generate half of New England’s electric power.

http://www.pressherald.com/2016/04/27/hearings-begin-thursday-on-plan-to-expand-natural-gas-pipeline-capacity/

CPES Policy Committee Update: April 15, 2016

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 Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.

This week’s features:

  • Summary of CPES Natural Gas Infrastructure Event
  • PURA Ends Notice Requirements for Retail Suppliers
  • Governor’s proposed budget does not include raiding funds from Regional Greenhouse Gas Initiative (RGGI)
  • Net metering bill raised in legislature
  • Nuclear Power Plant Announces Future Plans

 

Project Development: Natural Gas Infrastructure Projects Serving Customers in Connecticut

DSC03604On April 13, 2016, the Connecticut Power and Energy Society (CPES) heard from representatives of the natural gas industry on infrastructure projects progressing within Connecticut and throughout New England. As background, moderator Stephen Leahy, Vice President of Policy & Analysis for the Northeast Gas Association, explained that there are five interstate natural gas pipelines serving New England: (1) the Algonquin Gas Transmission Pipeline, (2) the Tennessee Gas Pipeline, (3) the Iroquois Gas Transmission System, (4) the Portland Natural Gas Transmission System, and (5) the Maritimes and Northeast Pipeline. There are also several liquefied natural gas (LNG) facilities serving the region, including Distrigas in Everett, Massachusetts and Canaport in Saint John, New Brunswick.

Michael Dirrane, Director of Marketing for Spectra Energy, discussed the infrastructure projects in progress and proposed along the Algonquin and Maritimes transmission systems, including the Algonquin Incremental Market (AIM) project, the Atlantic Bridge project, and the Access Northeast project. According to Dirrane, the AIM project will add 20% more gas capacity to the Algonquin pipeline, enabling additional supplies of Marcellus Shale gas to reach customers in Connecticut. The project has an in-service date of November 2016.

Cynthia Armstrong, Director of Marketing & Business Development for Portland Natural Gas Transmission System (PNGTS), provided background on PNGTS, which began serving New England in 1999 and now consists of more than 300 miles of pipeline. She explained that PNGTS delivers gas into the Algonquin and Tennessee pipelines, back-feeding the region’s natural gas transmission system from the east.

Rob Perless, Project Development Manager for Iroquois Gas Transmission System, provided background on the Iroquois system, which commenced operations in 1991 and was designed to bring Canadian gas down to the New York and New England markets. Perless provided an update on the Constitution Pipeline project, which has faced significant regulatory delays in the State of New York. Perless also provided an update on the project Iroquois plans to submit in response to the Connecticut Department of Energy and Environmental Protection’s Request for Proposals (RFP) for natural gas expansion projects.

Gregg Therrien, Director of Gas Construction for Connecticut Natural Gas and The Southern Connecticut Gas Company, discussed expansion projects on the local gas distribution system in Connecticut. Many of these projects, he explained, were made possible by the 2013 Comprehensive Energy Strategy and legislation passed in 2014 to enable the recovery of costs associated with gas expansion projects over a 25-year period.

Christopher Lucca, Program Manager of Gas Expansion for Eversource, discussed the Wilton, Connecticut expansion project, a 3.6-mile distribution system expansion project which began on August 1, 2014 and concluded on October 24, 2014. The project involved extensive community engagement to ensure construction met the Town’s desired timeline, particularly for a local school and the downtown business district. This project would not have been possible, Lucca said, without the Comprehensive Energy Strategy and the legislation passed to implement it.

 

CONNECTICUT POLICY/REGULATORY UPDATE:  CT Public Utilities Regulatory Authority

The Connecticut PURA has formally terminated the requirement for retail suppliers to file quarterly notices with PURA. In a letter dated April 11, 2016, after receiving notices from multiple suppliers, PURA acknowledged the required information contained in the quarterly notices has since been incorporated into residential bills provided by the electric distribution companies, pursuant to PURA’s Decisions in Docket Nos. 14-07-19, PURA Investigation Into Redesign of the Residential Electric Billing Format and 14-07-19RE01, PURA Investigation Into Redesign of the Residential Electric Billing Format – Billing Format Clarifications. Consequently, PURA determined the notices are no longer required. The letter is available at the following link.

 

CONNECTICUT LEGISLATIVE UPDATE

Last week, we reported that the legislature proposed raiding $20M in funds from the Regional Greenhouse Gas Initiative (RGGI).  On April 12, 2016, Governor Malloy released his budget proposal, which did not include a provision raiding the RGGI funds.  http://www.hartfordbusiness.com/article/20160412/NEWS01/160419987/officials-raiding-carbon-funds-will-increase-power-costs

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

The deadline to report bills out of the Energy and Technology Committee has passed.  On April 12, 2016, the House of Representatives passed the following bill that may be of interest to you:

  • H.B. No. 5242 (RAISED) ENERGY AND TECHNOLOGY . ‘AN ACT CONCERNING AGRICULTURAL VIRTUAL NET METERING’, to allow agricultural customers to lease or enter into long-term contracts for an agricultural virtual net metering facility. 
    REF. ENERGY AND TECHNOLOGY

 

Regional and Industry Developments

Entergy Announces Plans to Operate Pilgrim Nuclear Power Station through May 2019

Entergy Corporation, owner and operator of Pilgrim Nuclear Power Station in Plymouth, Massachusetts, has announced plans to refuel in 2017 and continue operating the power plant until May 31, 2019. For more information, see Entergy’s official operational update: http://www.pilgrimpower.com/operational-update/.