Category Archives: pipelines

CPES Policy Committee Update: March 17, 2020

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 Committee or if you have ideas for future policy updates, we welcome your input and feedback. Please send comments to Kathryn Dube, CPES Executive Director, via email: kdube@ctpower.org.

In this Update:

  • PURA Directs Utilities to Cease Residential Shut-Offs During COVID-19 Outbreak
  • PURA’s 2020 Report to the General Assembly Regarding the CT Electric Efficiency Partners Program
  • Connecticut Cities, Solar Installers Locked in Legal Fight Over Property Taxes
  • Solar and Wind Power are Pushing Down Electricity Prices in New England, but Carbon Fuels Still Dominate          
  • 2020 Legislative Session Update
  • Sens. Manchin, Murkowski introduce American Energy Innovation Act
  • ISO-NE Releases the 2020 Regional Electricity Outlook: The Road to a Clean Energy Future
  • ISO’s Final Draft 2020 10-yr Forecasts for Heating Electrification and EVs
  • New England Sees Back-to-Back Afternoon Demand Lows 

CONNECTICUT

PURA Directs Utilities to Cease Residential Shut-Offs During COVID-19 Outbreak
Connecticut’s Public Utilities Regulatory Authority (PURA) announced that it issued a ruling directing all regulated electric, natural gas, and water companies in the state to cease residential service terminations for non-payment as a protective measure during the current public health emergency. Docket 20-03-15 

PURA Publishes the 2020 Report to the General Assembly Regarding the CT Electric Efficiency Partners Program

Connecticut Cities, Solar Installers Locked in Legal Fight Over Property Taxes
At least 15 municipalities in Connecticut are locked in court battles with solar companies who say they are wrongfully taxing residential solar installations. Since 2017, nearly 200 lawsuits involving hundreds of properties around the state have been filed in the state Superior Court. At the root of the challenges is a state statute granting a property tax exemption to renewable energy sources that generate electricity for “private residential use.” A

Solar and Wind Power are Pushing Down Electricity Prices in New England, but Carbon Fuels Still Dominate
Renewable energy is beginning to have an impact where it counts, in the cost of electricity, as generators pledge to sell power to the New England grid at prices that keep falling and will be down more than 70% over four years by 2023. As a result, consumers will likely pay less, but the dollar impact on electricity bills is not known because utilities will factor the costs differently in rates.

2020 Legislative Session
The state Capitol is currently closed due to COVID-19.  There is no information on how the extended closing will impact the legislative session or the legislative process. Legislative leaders plan to revisit the decision as they receive additional information. Information will be shared as it becomes available. COVID-19 updates are available here.

Energy and Technology Committee
March 5th Public Hearing: The agenda included the Governor’s bill, SB 10, which codifies the Governor’s Executive Order No. 3 to require a statewide zero carbon electric sector by 2040. The Committee has made electricity storage a priority this session. HB 5351 encourages 1,000 MW of storage by December 31, 2030 and shares similar language regarding storage with the Governor’s bill, SB 10. HB 5350, which concerns natural gas infrastructure connectivity, gained a lot of traction during Thursday’s public hearing. This bill, which has been referred to as “the gas bill,” repeals the gas pipeline tax to prevent natural gas expansion in addition to requiring PURA to establish a hurdle-rate utilizing a 25-year payback period to compare revenue requirements of connecting new customers to gas distribution systems. 

February 27th Public Hearing: This hearing was largely focused on the technology side regarding Public, Educational, or Government (PEG) Programming fees, and Net Neutrality. A Distributed Energy Resource bill, which helps the procurement process of natural gas from anaerobic digestion facilities, was discussed. View PURA’s testimony here and DEEP’s testimony here.  An energy efficiency bill also made an appearance again this year. This bill updates energy and water efficiency standards for common household and commercial appliances.

INDUSTRY

Sens. Manchin, Murkowski introduce American Energy Innovation Act
U.S. Sens. Joe Manchin (D-WV) and Lisa Murkowski (R-AK) released on Feb. 27, the text of the American Energy Innovation Act (AEIA), a compilation of more than 50 energy-related measures individually reported by the Senate Energy and Natural Resources Committee (ENR) last year. MORE

ISO-NE Releases the 2020 Regional Electricity Outlook: The Road to a Clean Energy Future
ISO-NE’s annual report looks at the trends affecting New England’s power system and the innovative solutions the ISO is pursuing to ensure reliable electricity for homes and businesses as the region moves along its decarbonization journey. See the press release and the report for more information.

ISO’s Final Draft 2020 10-yr Forecasts for Heating Electrification and EVs
ISO published its first Final Draft 2020 Heating Electrification Forecast and Final Draft 2020 Transportation Electrification Forecast to capture growth in air source heat pumps and light-duty electric vehicles and to quantify resulting increases in grid electricity demand. The ISO forecasts that by 2029 roughly 750,000 air source heat pumps will be installed in New England with a near 600 megawatt (MW) increase in load during the winter months. Light-duty electric vehicles (including cars and light-duty trucks) are estimated to number over 515,000 region-wide, adding up to 400 MW of load a month by the end of 2029. Learn more at ISO’s Newswire.

New England Sees Back-to-Back Afternoon Demand Lows 
February 22 and 23 solar generation lead to a mid-day drop in grid demand followed by a steep evening increase- see the charts and read more at ISO’s website.

CPES Policy Committee Update April 24, 2018

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:

  • FERC Issues Final Rules to Improve Regional Market Transparency, Interconnections
  • Connecticut Water Confirms Receipt of Unsolicited Acquisition Proposal from Eversource Energy
  • Upcoming Training and Webinars from ISO-NE
  • FERC Initiates Notice of Inquiry Into Pipeline Certificate
  • Millstone “At Risk” Determination
  • PURA Docket No. 13-08-14RE04 established on April 18, 2018:  PURA Development of the Administrative Processes and Program Specifications for Virtual Net Metering – Application Amendment 

REGIONAL AND INDUSTRY DEVELOPMENTS

FERC INITIATES NOTICE OF INQUIRY INTO PIPELINE CERTIFICATE 
The Federal Energy Regulatory Commission (FERC) launched an inquiry seeking information and stakeholder perspectives on whether and how to revise existing policies regarding the Commission’s review and authorization of interstate natural gas transportation facilities. For more information, see FERC’s website and the Notice of Inquiry.

FERC ISSUES FINAL RULE TO IMPROVE REGIONAL MARKET TRANSPARENCY, INTERCONNECTIONS
The Federal Energy Regulatory Commission (FERC) issued two final rules to improve transparency in organized electric power markets and make electricity interconnections more effective and efficient.

  • Transparency Final Rule: Addresses transparency regarding uplift payments, operator-initiated commitments and transmission constraint penalty factors in organized electric power markets.  The rule requires regional market operators to report, on a monthly basis: total uplift payments for each transmission zone, broken out by day and uplift category; total uplift payments to each resource; and the commitment size, transmission zone, commitment reason, and commitment start time of each operator-initiated commitment. The rule also requires regional market operators to include in their tariffs the transmission constraint penalty factors used in their market software, the circumstances under which those factors can set locational marginal prices, and any processes by which they can be changed.
  • Generator Interconnection Procedures and Agreements Final Rule: Addresses reform of generator interconnection procedures and agreements for generators of more than 20 megawatts, and adopts reforms designed to improve certainty for interconnection customers, promote informed interconnection decisions and enhance the interconnection process.

CONNECTICUT WATER CONFIRMS RECEIPT OF UNSOLICITED ACQUISITION PROPOSAL FROM EVERSOURCE ENERGY
Connecticut Service, Inc. plans to continue with its merger with San Jose Water Group, despite a proposal from Eversource Energy earlier this month. Eversource announced Thursday that it sent a proposal to Connecticut Water to acquire its outstanding shares for $63.50 per share in cash. Shareholders would also have the option to receive the equivalent shares in Eversource in lieu of a monetary payment. Connecticut Water, headquartered in Clinton, said it received Eversource’s “non-binding, unsolicited” proposal and the company’s board of directors unanimously decided to decline it.

UPCOMING TRAINING FROM ISO-NE
Intermediate Wholesale Electricity Markets (WEM 201)  May 15- 27, 2018.  This three-day course provides an intermediate-level treatment of energy market concepts, including unit commitment, locational marginal pricing (LMP), reserve co-optimization, market interactions, settlement mechanics, and Financial Transmission Rights (FTRs).  
PRD–Real-Time Operational Expectations, May 22, 2018 10:00 am. – 12:00 p.m. This webinar will focus on real-time operational expectations for demand response resources (DRRs) and demand designated entity (DDE) staff under price-responsive demand (PRD) effective on June 1, 2018.  Topics include expectations for (1) response to normal and emergency dispatch instructions, (2) DRR real-time re-submittals, and (3) communications with ISO New England system operators.  

ISO IS HOSTING TWO WEBINARS ON ITS FORWARD CAPACITY MARKETS
FCM New Capacity Qualification for Demand Resources, May 1, 2018, 10:00 a.m. – 12:00 p.m. This webinar will review the requirements associated with the submittal of the new capacity qualification package for demand resource projects requesting participation in the Forward Capacity Auction for the 2022-2023 Capacity Commitment Period (FCA #13).
FCM New Capacity Qualification for Generation and Imports, May 1, 2018, 1:30 – 3:30 p.m. This webinar will review the requirements associated with the submittal of the new capacity qualification package for generating and import capacity resource projects requesting participation in the Forward Capacity Auction for the 2022-2023 Capacity Commitment Period (FCA #13). It will also include a segment on import capacity resources with Elective Transmission Upgrades (ETU).

CONNECTICUT

MILLSTONE “AT RISK” DETERMINATION
Following the February decision under Executive Order 59 and June Special Session Public Act 17-3 by state regulators to allow nuclear plants to compete in an auction with new and existing solar, wind and hydropower energy producers for fixed-price contracts with state-regulated utilities. On April 4th DEEP and PURA issued a notice of request for written comments on their proposed procedure and criteria for determining if a power generating facility is at “at risk.”  Comments were due April 11 and a half dozen were filed.  An article from New London Day summarized the comments, including those from Dominion, Eversource, and NRG Energy.  According to DEEP and PURA’s notice, PURA proposed to initiate the “at risk” proceeding this April, with DEEP initiating an RFP proceeding before May 1.

PURA DOCKET ESTABLISHED ON APRIL 18, 2018

  • Docket No. 13-08-14RE04:  PURA Development of the Administrative Processes and Program Specifications for Virtual Net Metering – Application Amendment 

CONNECTICUT LEGISLATIVE SESSION
The 2018 Regular Session of the Connecticut General Assembly convened on February 7, 2018.  General information about the Energy and Technology Committee is available at: https://www.cga.ct.gov/et

 

 

 

 

CPES Policy Committee Update: November 8, 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:

                      • Connecticut Gas Companies Jointly Submit Forecast of Natural Gas Demand for Calendar Years 2017 – 2021
                      • PURA Opens Dockets to Review Standard Service and Supplier of Last Resort Service Rates for January 1, 2017
                      • Bloomberg News: World’s Priciest Gas Is Bound for One U.S. Region This Winter

PUBLIC UTILITIES REGULATORY AUTHORITY NEW DOCKETS:

On November 2, 2016, Connecticut Natural Gas Corporation, The Southern Connecticut Gas Company, and Yankee Gas Services Company d/b/a Eversource Energy jointly submitted the Connecticut Forecast of Natural Gas Demand for calendar years 2017 through 2021 in the following dockets:

On November 2, 2016, the following dockets were opened that may be of interest to you: 

REGIONAL DEVELOPMENTS

Bloomberg News: World’s Priciest Gas Is Bound for One U.S. Region This Winter

The global glut of natural gas still hasn’t reached one corner of the U.S.

The heating fuel may surge to $20 to $25 per million British thermal units in New England this winter, the highest in the world, as pipeline bottlenecks limit supplies during frigid weather, traders including Consolidated Edison Inc.’s ConEdison Energy said. Prices have collapsed across the rest of the globe amid tepid demand growth, rising exports and a plunge in crude oil prices earlier this year.

Competition for pipeline access into New England is poised to intensify as the power grid, already getting more than half of its supply from gas, becomes even more reliant on the fuel as coal-fired plants shut. Opposition from environmental and consumer groups threatens to delay and derail new lines, including a $3 billion Spectra Energy Corp. project.

“New England remains pipeline constrained, so if bouts of very cold weather move in this winter, you could certainly see prices spike,” Alex Tertzakian, an analyst with Energy Aspects Ltd. in London, said in an e-mail Oct. 28. “This would likely make New England briefly the world’s premium market.”

To view the full article: http://www.bloomberg.com/news/articles/2016-11-01/world-s-priciest-gas-is-bound-for-one-u-s-region-this-winter

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: 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: June 21, 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:

  • ISO New England Prepares for Summer
  • FERC’s Clark comments on hybrid markets
  • Comments on the 2016 Comprehensive Energy Strategy

 

Connecticut Policy/Regulatory Update: Connecticut Department of Energy and Environmental Protection

Scoping comments for the 2016 Comprehensive Energy Strategy were due to be filed with the Department of Energy and Environmental Protection on June 14, 2016. The comments filed by various stakeholders are now available for review at the following link.

 

Regional and Industry Developments

Beating the Heat: How ISO New England Prepares for Summer Peak Demand

As the region enters the summer season, ISO New England prepares for conditions unique to the hot, humid summer months. Peak demand brought on by warmer weather and an increased reliance on energy-intensive technologies, such as air conditioning, can create complex challenges for the grid operator. According to the ISO’s summer outlook, New England is expected to have adequate electricity supplies to meet consumer demand this summer under normal weather and power system conditions. However, work on Spectra Energy’s Algonquin Incremental Market (AIM) natural gas pipeline expansion project may limit delivery of natural gas to some power plants in the region.

To maintain a reliable supply of electricity to New England’s residents and businesses, the ISO’s System Operations team must rely on carefully planned procedures to increase power generation and curb consumption during periods when demand for electricity threatens to exceed available capacity and reserves. High consumer demand or unplanned resource outages—when a transmission line or generator suddenly goes offline—are typically the reasons for these procedures to be enacted.

For more information on how ISO New England prepares for summer peak demand, see the ISO Newswire.

 

FERC’s Clark sees ‘really unsustainable future’ in hybrid markets

BISMARCK, N.D. — Disputes playing out in deregulated states like Illinois and Ohio over proposed subsidies for aging power plants highlight a key challenge facing the electricity industry at a critical juncture in its evolution, said Federal Energy Regulatory Commissioner Tony Clark.  “This issue is one that is going to be a huge issue between FERC and the states in those regions of the country that not only have real-time markets, but that have also chosen to restructure their electricity industry,” said Clark, whose term ends at the end of the month.  The former North Dakota utility regulator was back in his home state this week for the Mid-America Regulatory Conference, an association of regulatory commissioners and staff from 14 central states. He was the featured speaker at yesterday morning’s wrap-up session.  Clark said the tension between states and FERC doesn’t affect most central states, where vertically integrated utilities have retail electric rates set by state commissions. But the issue looms large in restructured states where FERC-regulated wholesale markets are relied upon to signal when to invest in or close old power plants or build new ones.

There is an ongoing debate in states including Illinois and Ohio over keeping certain unprofitable coal and nuclear plants running to preserve jobs and taxes and other policy reasons.  Clark said those out-of-market solutions pose a problem: specifically that those states have previously chosen to let the market dictate investment decisions.  “If you have lots and lots of out-of-market constructs that basically negate the price formation that’s happening in the market, you end up with a really, really unsustainable future,” he said.  http://www.eenews.net/stories/1060038896