Category Archives: RGGI

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.

CPES Policy Committee Update: May 17, 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:

  • Final legislation passed during the regular legislative session and look into the special session
  • DEEP’s issues notices on 2016 Connecticut Comprehensive Energy Strategy

 

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 2016 regular session ended on May 4, 2016.  The following bill that passed both chambers during the regular session and that may be of interest to you received a public act number:

  • H.B. No. 5242:  AN ACT CONCERNING AGRICULTURAL VIRTUAL NET METERING.  PUBLIC ACT 16-46.
  • H.B. No. 5427:  AN ACT CONCERNING THE SHARED CLEAN ENERGY FACILITY PILOT PROGRAM.  PUBLIC ACT 16-116.

Both chambers passed a budget and budget implementer bill during the 2016 special session.  Section 183 of the budget implementer bill diverts to the General Fund in fiscal year 2017 the first $3.3 million of proceeds from Regional Greenhouse Gas Initiative auctions that take place on or after January 1, 2017.  Links to the budget and budget implementer are as follows:

  • S.B. No. 501:  AN ACT ADJUSTING THE STATE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2017.
  • S.B. No. 502:  AN ACT CONCERNING REVENUE AND OTHER ITEMS TO IMPLEMENT THE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2017.

 

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

On May 6th, the Connecticut Department of Energy and Environmental Protection (DEEP) issued a Notice of Proceeding and Scoping Meeting regarding the 2016 Connecticut Comprehensive Energy Strategy (CES). The notice is available at the following link. Section 16a-3d of the Connecticut General Statutes requires DEEP to prepare a CES every three years. DEEP issued its first CES in 2013. Pursuant to the notice, DEEP is holding a meeting to deliver a presentation and receive stakeholder comments on the scope of 2016 CES on Tuesday, May 24, 2016, at 9:00 AM in Hearing Room 1 at DEEP’s New Britain Office located at 10 Franklin Square, New Britain, Connecticut. The objective of the scoping meeting will be to provide an overview of, and seek public input on, the expected structure, schedule, and topics for the CES. The major topics identified in the notice include:  (1) Buildings and Industrial Processes; (2) Electricity Supply; and (3) Transportation. Written comments may be filed electronically on DEEP’s website or submitted directly to DEEP at DEEP.EnergyBureau@ct.gov on or before June 14, 2016, by 4:00 p.m. EDT.

 

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 Policy Committee Update: April 12, 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’s Cybersecurity Action Plan
  • Legislature proposes raiding $20M in funds from Regional Greenhouse Gas Initiative (RGGI)
  • ISO NE report on falling wholesale prices

 

CONNECTICUT POLICY/REGULATORY UPDATE:  CT Public Utilities Regulatory Authority

On Wednesday, April 6, 2016, Governor Malloy announced the release of PURA’s Cybersecurity Action Plan.  The press release is available at: http://portal.ct.gov/Departments_and_Agencies/Office_of_the_Governor/Press_Room/Press_Releases/2016/04-2016/Gov__Malloy_Announces_Release_of_PURA_s_Cybersecurity_Action_Plan/

 

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 deadline to report bills out of the Energy and Technology Committee has passed.  There have been no significant actions to the bills previously reported out of the committee that may be of interest to you.

 

Regional and Industry Developments

Average Price of Wholesale Electricity in 2015 Fell to Second-Lowest Level Since 2003

At the end of March, ISO New England issued a press release detailing average wholesale electricity prices for 2015, based on preliminary figures. According to the press release, low natural gas prices during most of the year pushed the average price of wholesale electricity down to the second-lowest level since 2003. 2015’s average power price of $41.00/MWh was down 35% from 2014’s average price of $63.32/MWh. The lowest annual average wholesale electricity price was in 2012, at $36.09/MWh.