Category Archives: natural gas

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 26, 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:

  • U.S. Supreme Court Weighs In On Wholesale Energy Markets
  • Kinder Morgan Halts Pipeline Expansion into the Region
  • RESA Explains Why Comparing Retail Products to Standard Service Is Improper
  • Long-Awaited NYGATS is Launched
  • Five Energy Related Bills Progressing In the CT Legislature

 

Regional and Industry Developments

FERC has Exclusive Jurisdiction

In a unanimous decision Tuesday morning, the U.S. Supreme Court handed down an 8-0 ruling which found that Maryland’s program to incentivize new in-state generation capacity intruded on the Federal Energy Regulatory Commission’s exclusive jurisdiction over wholesale energy markets under the Federal Power Act. Maryland’s controversial program required Maryland’s utilities to enter into contracts-for-differences (CFDs) with new in-state power generation resources to ensure those resources cleared wholesale market auctions. The Court rejected the Maryland program, finding the contracts “intrude on FERC’s authority over interstate wholesale rates.” While the Court found the Maryland program impermissible, the justices appear to have left the door open for other state generation incentives more squarely aimed at environmental objectives. The Court’s ruling is available at the following link.

 

Kinder Morgan Suspends Further Work and Expenditures on Northeast Energy Direct Project

On April 20, 2016, Kinder Morgan issued the following statement on the Northeast Energy Direct project: “As a result of inadequate capacity commitments from prospective customers, Kinder Morgan, Inc., (NYSE: KMI) and its subsidiary, Tennessee Gas Pipeline Company (TGP), have suspended further work and expenditures on the Northeast Energy Direct (NED) project.” The NED project was a proposed natural gas pipeline expansion project aimed at upgrading natural gas infrastructure in Pennsylvania, New York, Massachusetts, New Hampshire, and Connecticut to help meet increased demand for natural gas in the northeast. Kinder Morgan filed its certificate application for the NED project with the Federal Energy Regulatory Commission on November 20, 2015. The project had a planned in-service date of 2018. For more information on the proposed project, see Kinder Morgan’s NED website.

 

Retail Energy Supply Association Is Critical of Report by CT Consumer Counsel

On April 20, 2016, the Retail Energy Supply Association (RESA) explained why Consumer Counsel’s comparison of utility Standard Service electric rates and the complex product offerings of competitive retail suppliers is an unfair comparison.  RESA explains that there are various value-added products offered by suppliers that a consumer cannot obtain from the distribution electric utility company.  http://resausa.org/news-events/resa-responds-connecticut-consumer-counsel%E2%80%99s-press-release.  (Links: CT Office of Consumer Counsel Fact Sheet: Electric Supplier Market and OCC Press Release)

 

NYSERDA Launches NYGATS

The New York Generation Attribute Tracking System (NYGATS), a web-based tracking system that will record electricity generation attribute information within New York State, and process generation attribute information from energy imported and consumed within the state, as a basis for creating tradable generation attribute certificates. NYGATS is being launched in two phases; Phase 1 for Account Holder and Project Registration and Phase 2 for Certificate Creation. During Phase 1, all users of NYGATS are required to register their projects or accounts. During Phase 2, certificates will be created and available for generation back to January 1, 2016.  Please refer to the NYGATS informational web site http://www.nyserda.ny.gov/NYGATS for access to the NYGATS registry, trainings and documents including the final NYGATS Operating Rules. Users may also register for a free NYGATS Account Registration and User Training Webinar on April 26 or May 2.

 

Connecticut Legislation

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 19, 2016, the Senate passed the following bill that may be of interest to you:

·         S.B. No. 334:  Senate passed.  (AN ACT CONCERNING REVISIONS TO CERTAIN ENERGY PURCHASING POOL AND LIFE-CYCLE COST ANALYSES STATUTES).

On April 20, 2016, the Senate passed the following bill that may be of interest to you:

  • S.B. No. 103:  Senate passed as amended by Senate Amendment Schedule A.  (AN ACT CONCERNING MINOR REVISIONS TO ENERGY-RELATED STATUTES).

On April 20, 2016, the House of Representatives passed the following bill that may be of interest to you:

  • H.B. No. 5309:  House passed as amended by House Amendment Schedule A.  (AN ACT CONCERNING FACILITATION OF THE MUNICIPAL RESIDENTIAL SOLAR APPLICATION PROCESS).

On April 21, 2016, the House of Representatives passed the following bill that may be of interest to you:

  • H.B. No. 5496:  House passed as amended by House Amendment Schedule A.  (AN ACT CONCERNING BIOMASS FACILITIES AND CERTAIN VIRTUAL NET METERING FACILITIES).

On April 22, 2016, the House of Representatives passed the following bill that may be of interest to you:

  • H.B. No. 5427: House passed as amended by House Amendment Schedule A.  (AN ACT CONCERNING THE SHARED CLEAN ENERGY FACILITY PILOT PROGRAM). 

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/.

CPES: Natural Gas Infrastructure Projects Serving Customers in Connecticut

April16_newsletter

On 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.

DSC03604
Left to Right:
Michael Dirrane, Steve Leahy, Cynthia Armstrong, Gregg Therrien,  Robert Perless,  Chris Luca

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 Luca, 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, Luca said, without the Comprehensive Energy Strategy and the legislation passed to implement it.

CPES Policy Committee Update 3.11.16

Constant Contact Banners2.19.16Connecticut Power and Energy Society Holds its Annual Conference with Remarks from Governor Dannel Malloy

On March 9, 2016, the Connecticut Power and Energy Society held its annual Energy, Environment and Economic Development Conference. The conference began with keynote remarks from Fred Carstensen, Professor of Finance and Economics at the University of Connecticut School of Business, who provided an overview of Connecticut’s economic outlook. Carstensen stressed Connecticut’s need for a more holistic vision and integrated approach to stimulating economic growth in the state. The conference also featured a keynote presentation by Daniel Sosland, President of Acadia Center, who discussed the shift toward a lower-carbon, consumer-focused energy future. Sosland stressed the importance of grid-modernization efforts to empower energy consumers and integrate greater levels of distributed energy resources. The conference also featured panel discussions on energy leadership at the local level, advanced technology in energy storage, and regional energy solutions to address challenges facing the electric grid.

After an update from Katie Scharf Dykes, Deputy Commissioner for Energy at the Department of Energy and Environmental Protection, Governor Malloy addressed attendees on the efforts made at the state and regional level to achieve a cheaper, cleaner, more reliable energy future for Connecticut. Malloy highlighted the 2011 merger of the Department of Environmental Protection and Department of Public Utility Control to form the new Department of Energy and Environmental Protection with a coordinated approach to energy and environmental challenges confronting the state. Malloy also championed the creation of the Connecticut Green Bank, which expects to attract $500 million in private investment for clean energy projects by the end of the fiscal year. Finally, Malloy highlighted Connecticut’s leadership role in regional discussions on the need for additional investments in energy infrastructure in New England.

 

Connecticut DEEP Issues RFP

Connecticut DEEP has issued its final RFP for the 2-20 MW Renewable, Passive Demand Response & Energy Storage procurement. DEEP has also issued its Draft RFP for Natural Gas Capacity, LNG and Natural Gas Storage. The documents are available at the following links: Gas, 2-20 MW Renewables

 

Regional and Industry Developments:

ISO-NE Consumer Liaison Group Meets in Connecticut

On March 10, 2016, the Consumer Liaison Group (CLG) met in Cromwell, Connecticut to discuss “Solar Development in New England:  Consumer Protection, Costs and Benefits, and What Does it Mean for the Wholesale Market?”

 The CLG is a forum for sharing information between ISO New England and those who ultimately use and pay for electricity in New England—residential, commercial, and industrial customers. It was formed in 2009 to meet the need, as cited in Federal Energy Regulatory Commission (FERC) Order No. 719, for heightened communication between Regional Transmission Organizations and their stakeholders, with a particular focus on electricity consumers, consumer advocates, and state government regulators.  The CLG organizes four quarterly meetings a year and is governed by a Coordinating Committee, which selects the topics and speakers for all of the meetings.

 The meeting featured keynote speaker Elin Swanson Katz, Connecticut’s Consumer Counsel, who discussed the growth of solar in Connecticut and the need to continually analyze the suite of incentives supporting solar development in Connecticut. Solar policy, she said, impacts virtually every aspect of the electric industry, including cost, emissions, customer choice, economic development, and jobs.

Joseph Rosenthal, Principal Attorney for the Connecticut Office of Consumer Counsel, moderated a panel of energy industry and ISO representatives to discuss solar development in Connecticut and the New England region. Panelists included:

  • Camilo Serna, Vice President, Strategic Planning & Policy, Eversource Energy
  • Dan Hendrick, Director of External Affairs, NRG Energy
  • Mackey Dykes, Vice President, Commercial & Industrial Programs, Connecticut Green Bank
  • Carissa Sedlacek, Director of Resource Adequacy, System Planning, ISO New England
  • Paul Peterson, Principal Associate, Synapse Energy Economics, Inc.

The meeting concluded with an update from Anne George, Vice President of External Affairs & Corporate Communications for ISO New England, who discussed the results of Forward Capacity Auction #10, the U.S. Supreme Court’s ruling on demand response, and wholesale electricity costs for 2015.

 All of the speaker presentations are available on the CLG website. The next quarterly CLG meeting will be held at the DoubleTree Hotel in Westborough, Massachusetts on June 17, 2016.

Connecticut Energy Evolution Grabs Headlines

The Hartford Business Journal examines Connecticut’s energy evolution – http://www.hartfordbusiness.com/article/20160307/PRINTEDITION/303039927

New York Public Service Commission’s Rules Governing Electric Service Companies Challenged in Court

http://www.rtoinsider.com/court-delays-new-york-rules-22943/