FERC approves settlement agreement for TrAIL

By Business Wire


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The Federal Energy Regulatory Commission (FERC) has approved a settlement agreement that establishes formula rates for the proposed Trans-Allegheny Interstate Line (TrAIL) and other related transmission projects.

The settlement agreement, filed earlier this year by Allegheny EnergyÂ’s subsidiary, Trans-Allegheny Interstate Line Company (TrAILCo), includes the following:

• an incentive return on equity rate of 12.7 percent for the TrAIL project; • an incentive return on equity rate of 12.7 percent for the static VAR compensator installed at the existing Black Oak Substation, and

• a return on equity rate of 11.7 percent for any other projects TrAILCo may undertake for which no incentive return has been requested.

The settlement agreement, called “fair and reasonable and in the public interest” by FERC in its order, resolves all issues associated with establishing the transmission cost of service formula for TrAILCo.

Incentive rate treatment is intended to encourage new investment in electric transmission projects that will improve the reliability of electric service.

The TrAIL project will span portions of southwestern Pennsylvania, West Virginia and Virginia. TrAILCo is seeking regulatory approvals from the utility commissions in those states and expects a decision by the West Virginia Public Service Commission by early August. State regulators in Pennsylvania and Virginia are also expected to issue decisions later this year.

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Cheap at Last, Batteries Are Making a Solar Dream Come True

Solar Plus Storage is accelerating across utilities and microgrids, pairing rooftop solar with lithium-ion batteries to enhance grid resilience, reduce peak costs, prevent blackouts, and leverage tax credits amid falling prices and decarbonization goals.

 

Key Points

Solar Plus Storage combines solar generation with batteries to shift load, boost reliability, and cut energy costs.

✅ Cuts peak demand charges and enhances blackout resilience

✅ Falling battery and solar costs drive nationwide utility adoption

✅ Enables microgrids and grid services like frequency regulation

 

Todd Karin was prepared when California’s largest utility shut off power to millions of people to avoid the risk of wildfires last month. He’s got rooftop solar panels connected to a single Tesla Powerwall in his rural home near Fairfield, California. “We had backup power the whole time,” Karin says. “We ran the fridge and watched movies.”

Californians worried about an insecure energy future are increasingly looking to this kind of solution. Karin, a 31-year-old postdoctoral fellow at Lawrence Berkeley National Laboratory, spent just under $4,000 for his battery by taking advantage of tax credits. He's also saving money by discharging the battery on weekday evenings, when energy is more expensive during peak demand periods. He expects to save around $1,500 over the 10 years the battery is under warranty.

The economics don’t yet work for every household, but the green-power combo of solar panels plus batteries is popping up on a much bigger scale in some unexpected places. Owners of a rice processing plant in Arkansas are building a system to generate 26 megawatts of solar power and store another 40 MW. The plant will cut its power bill by a third, and owners say they will pass the savings to local rice growers. New York’s JFK Airport is installing solar plus storage to reduce its power load by 10 percent, while Pittsburgh International Airport is building a 20-MW solar and natural gas microgrid to keep it independent from the local utility. Officials at both airports are worried about recent power shutdowns due to weather and overload-related blackouts.

And residents of the tiny northern Missouri town of Green City (pop. 608) are getting 2.5 MW of solar plus four hours of battery storage from the state’s public utility next year. The solar power won’t go directly to townspeople, but instead will back up the town’s substation, reducing the risk of a potential shutdown. It’s part of a $68 million project to improve the reliability of remote substations far from electric generating stations.

“It’s a pretty big deal for us,” says Chad Raley, who manages technology and renewables at Ameren, a Missouri utility that is building three rural solar-plus-storage projects to better manage the flow of electricity across the local grid. “It gives us so much flexibility with renewable generation. We can’t control the sun or clouds or wind, but we can have battery storage.”

The first solar-plus-storage installations started about a decade ago on a small scale in sunny states like California, Hawaii, and Arizona. Now they’re spreading across the country, driven by falling prices of both solar panels and lithium-ion batteries the size of a shipping container imported from both China and South Korea, with wind, solar, and batteries making up most of the utility-scale pipeline nationwide. These countries have ramped up production efficiencies and lowered labor costs, leaving many US manufacturers in the dust. In fact, the price of building a comparable solar-plus-storage generating facility is now cheaper than operating a coal-fired power plant, industry officials say. In certain circumstances, the cost is equal to some natural gas plants.

“This is not just a California, New York, Massachusetts thing,” says Kelly Speakes-Backman, CEO of the Energy Storage Association, an industry group in Washington. She says more than 30 states have renewable storage on the grid. Utilities have proposed and states have approved 7 gigawatts to be installed by 2030, and most new storage will be paired with solar across the US.

Speakes-Backman estimates the unit cost of electricity produced from a solar-plus-storage system will drop 10 to 15 percent each year through 2024, supporting record growth in solar and storage investments. “If you have the option of putting out a polluting or non-polluting generating source at the same price, what are you going to pick?” says Speakes-Backman.

She notes that PJM, a large Mid-Atlantic wholesale grid operator, announced it will deploy battery storage to help smooth out fluctuating power from two wind farms it operates. “When the grid fluctuates, storage can react to it quickly and can level out the supply,” she says. In the Midwest, grid-level battery storage is also being used to absorb extra wind power. Batteries hold onto the wind and put it back onto the grid when people need it.

While the solar-plus-storage trend isn’t yet putting a huge dent in our fossil fuel use, according to Paul Denholm, an energy analyst at the National Renewable Energy Laboratory in Golden, Colorado, it is a good beginning and has the side effect of cutting air pollution. By 2021, solar and other renewable energy sources will overtake coal as a source of energy, and the US is moving toward 30% electricity from wind and solar, according to a new report by the Institute for Energy Economics and Financial Analysis, a nonprofit think tank based in Cleveland.

That’s a glimmer of hope in a somewhat dreary week of news on carbon emissions. A new United Nations report released this week finds that the planet is on track to warm by 3.9 degrees Celsius (7 Fahrenheit) by 2100 unless drastic cuts are made by phasing out gas-powered cars, eliminating new coal-fired power plants, and changing how we grow and manage land, and scientists are working to improve solar and wind power to limit climate change as well.

Energy-related greenhouse gas emissions in the US rose 2.7 percent in 2018 after several years of decline. The Trump administration has rolled back climate policies from the Obama years, including withdrawing from the Paris climate accords.

There may be hope from green power initiatives outside the Beltway, though, and from federal proposals like a tenfold increase in US solar that could remake the electricity system. Arizona plans to boost solar-plus-storage from today’s 6 MW to a whopping 850 MW by 2025, more than the entire capacity of large-scale batteries in the US today. And some folks might be cheering the closing of the West’s biggest coal-fired power plant, the 2.25-gigawatt Navajo Generating Station, in Arizona, which had spewed soot and carbon dioxide over the region for 45 years until last week. The closure might help the planet and clear the hazy smog over the Grand Canyon.

 

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Portland General Electric Program Will Transform Hundreds of Homes Into a Virtual Power Plant

PGE Residential Energy Storage Pilot aggregates 525 home batteries into a virtual power plant, enabling distributed energy resources, smart grid control, renewable energy optimization, demand response, and backup power across Portland General Electric's area.

 

Key Points

A PGE program aggregating 525 batteries into a utility-run virtual power plant for renewables support and backup power.

✅ Up to 4 MW aggregated capacity from 525 residential batteries

✅ Monthly credits: $40 ($20 with solar) for grid services

✅ Enhances smart grid, DERs, resilience, and outage backup

 

Portland General Electric Company is set to launch a pilot program that will incentivize installation and connection of 525 residential energy storage batteries that PGE will dispatch, contributing up to four megawatts of energy to PGE's grid. The distributed assets will create a virtual power plant made up of small units that can be operated individually or combined to serve the grid, adding flexibility that supports PGE's transition to a clean energy future. When the program launches this fall, incentives will be available to residential customers across PGE's service area. Rebates will be available to customers within three neighborhoods participating in PGE's Smart Grid Test Bed, and income-qualified customers participating in Energy Trust of Oregon's Solar Within Reach offer.

PGE will study the full benefits of energy storage that these distributed energy assets can provide the grid while also increasing resiliency for each participating customer. PGE will operate and test the benefits of using homes' batteries, each capable of storing 12 to 16 kWh of energy, to optimize the use of renewable energy and grid capabilities. In the event of a power outage, participating customers can rely on them as a backup power resource.

"Our vision for clean energy relies on a smart, integrated grid. One of the ways that we'll achieve that is through creative partnerships and diversified energy resources, including those behind-the-meter," said Larry Bekkedahl, vice president of Grid Architecture, Integration and Systems Operation. "This pilot project will allow PGE to integrate even more intermittent renewable energy and enhance grid capabilities while also giving participating customers peace of mind in the event of an outage."

Energy storage maximizes renewables and the grid, improves power quality

Energy storage, including long-duration energy storage solutions, is vital to help capture and store energy from renewable power sources, such as wind and solar, that are more variable. As a virtual power plant, the residential battery storage pilot will create a single resource that can help the grid balance energy production with energy demand, freeing up the generation resources that are typically held on standby, ready to kick in when the wind doesn't blow or the sun doesn't shine. As a clean energy option that takes the place of standby resources, the virtual power plant also gives customers access to reliable energy, even in the event of system outages.

The test program will also allow PGE to test new smart-grid control devices across its distribution system that will more effectively allow a two-way exchange between PGE and pilot participants. The new controls will more actively manage the way that electricity is distributed across PGE's system to incorporate energy that customers generate, such as through solar panels, while also meeting power demand that is less predictable, such as for charging electric vehicles, supporting EVs for grid stability strategies. The controls will allow PGE to more actively manage power distribution to improve power quality for all customers.

Select rebates and incentives will be available to participants, aligned with electric vehicle programs that encourage transportation electrification

When it launches in fall 2020, participation in the program will be available to residential customers, including:

* Those across PGE's service area who already have or are installing a qualifying battery. Participation will require an application, and in exchange for allowing PGE to operate their battery for grid services, similar to programs where EV owners selling power back for compensation, participating customers will receive a monthly bill credit of $40, or $20 if the battery is charged with solar power.

* Customers across PGE's service area who are participating in the Solar Within Reach offering from Energy Trust of Oregon. Participants will be eligible for a $5,000 instant rebate in addition to the monthly bill credits.

* Those living within the PGE Smart Grid Test Bed who purchase a battery will be eligible for an instant rebate, in addition to the monthly bill credit of $40 or $20, which will allow PGE to test the localized grid impact of having a large concentration of battery storage devices available on one substation and explore interfaces with vehicle-to-grid pilots in the region.

PGE is working with Energy Trust to cost-effectively procure the residential battery storage systems, as utilities invest in advanced storage solutions across the region, by leveraging the existing Solar incentive program infrastructure and trade ally contractor network. Customers who participate in the program will own their battery systems, and rebates will only be available for systems installed by an Energy Trust solar trade ally. The program may also accept customers with a qualifying battery that is was previously installed, following a process to ensure safe operation.

More information about Portland General Electric's energy storage program is available at PortlandGeneral.com/energystorage and will be updated with details about the residential battery storage pilot program.

 

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New England Is Burning the Most Oil for Electricity Since 2018

New England oil-fired generation surges as ISO New England manages a cold snap, dual-fuel switching, and a natural gas price spike, highlighting winter reliability challenges, LNG and pipeline limits, and rising CO2 emissions.

 

Key Points

Reliance on oil-burning power plants during winter demand spikes when natural gas is costly or constrained.

✅ Driven by dual-fuel switching amid high natural gas prices

✅ ISO-NE winter reliability rules encourage oil stockpiles

✅ Raises CO2 emissions despite coal retirements and renewables growth

 

New England is relying on oil-fired generators for the most electricity since 2018 as a frigid blast boosts demand for power and natural gas prices soar across markets. 

Oil generators were producing more than 4,200 megawatts early Thursday, accounting for about a quarter of the grid’s power supply, according to ISO New England. That was the most since Jan. 6, 2018, when oil plants produced as much as 6.4 gigawatts, or 32% of the grid’s output, said Wood Mackenzie analyst Margaret Cashman.  

Oil is typically used only when demand spikes, because of higher costs and emissions concerns. Consumption has been consistently high over the past three weeks as some generators switch from gas, which has surged in price in recent months. New England generators are producing power from oil at an average rate of almost 1.8 gigawatts so far this month, the highest for January in at least five years. 

Oil’s share declined to 16% Friday morning ahead of an expected snowstorm, which was “a surprise,” Cashman said. 

“It makes me wonder if some of those generators are aiming to reserve their fuel for this weekend,” she said.

During the recent cold snap, more than a tenth of the electricity generated in New England has been produced by power plants that haven’t happened for at least 15 years.

Burning oil for electricity was standard practice throughout the region for decades. It was once our most common fuel for power and as recently as 2000, fully 19% of the six-state region’s electricity came from burning oil, according to ISO-New England, more than any other source except nuclear power at the time.

Since then, however, natural gas has gotten so cheap that most oil-fired plants have been shut or converted to burn gas, to the point that just 1% of New England’s electricity came from oil in 2018, whereas about half our power came from natural gas generation regionally during that period. This is good because natural gas produces less pollution, both particulates and greenhouse gasses, although exactly how much less is a matter of debate.

But as you probably know, there’s a problem: Natural gas is also used for heating, which gets first dibs. Prolonged cold snaps require so much gas to keep us warm, a challenge echoed in Ontario’s electricity system as supply tightens, that there might not be enough for power plants – at least, not at prices they’re willing to pay.

After we came close to rolling brownouts during the polar vortex in the 2017-18 winter because gas-fired power plants cut back so much, ISO-NE, which has oversight of the power grid, established “winter reliability” rules. The most important change was to pay power plants to become dual-fuel, meaning they can switch quickly between natural gas and oil, and to stockpile oil for winter cold snaps.

We’re seeing that practice in action right now, as many dual-fuel plants have switched away from gas to oil, just as was intended.

That switch is part of the reason EPA says the region’s carbon emissions have gone up in the pandemic, from 22 million tons of CO2 in 2019 to 24 million tons in 2021. That reverses a long trend caused partly by closing of coal plants and partly by growing solar and offshore wind capacity: New England power generation produced 36 million tons of CO2 a decade ago.

So if we admit that a return to oil burning is bad, and it is, what can we do in future winters? There are many possibilities, including tapping more clean imports such as Canadian hydropower to diversify supply.

The most obvious solution is to import more natural gas, especially from fracked fields in New York state and Pennsylvania. But efforts to build pipelines to do that have been shot down a couple of times and seem unlikely to go forward and importing more gas via ocean tanker in the form of liquefied natural gas (LNG) is also an option, but hits limits in terms of port facilities.

Aside from NIMBY concerns, the problem with building pipelines or ports to import more gas is that pipelines and ports are very expensive. Once they’re built they create a financial incentive to keep using natural gas for decades to justify the expense, similar to moves such as Ontario’s new gas plants that lock in generation. That makes it much harder for New England to decarbonize and potentially leaves ratepayers on the hook for a boatload of stranded costs.

 

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Hydro One extends ban on electricity disconnections until further notice

Hydro One Disconnection Ban Extension keeps Ontario electricity customers connected during COVID-19, extending the moratorium on power shutoffs and expanding financial relief programs amid ongoing pandemic restrictions and persistent hot weather across the province.

 

Key Points

An open-ended Ontario utility moratorium preventing residential power shutoffs and offering bill relief during COVID-19.

✅ No residential disconnections until further notice

✅ Extended bill assistance and flexible payment options

✅ Response to COVID-19 restrictions and extreme heat

 

Ontario's primary electricity provider says it's extending a ban on disconnecting homes from the power grid until further notice.

Hydro One first issued the ban towards the beginning of the province's COVID-19 outbreak, saying self-isolating customers needed to be able to rely on electricity while they were kept at home during the pandemic.

A spokesman for the utility says the ban was initially set to expire at the end of July, but has now been extended in a manner similar to winter disconnection bans without a fixed end-date.

Hydro One says the move is necessary given the ongoing restrictions posed by the pandemic, and notes it has supported provincial COVID-19 efforts in recent months, as well as persistent hot weather across much of the province.

It says it's also planning to extend a financial relief program to help customers struggling to pay their hydro bills, reflecting demand for more choice and flexibility among ratepayers.

The province also extended off-peak electricity rates to provide relief for families, small businesses and farms during this period.

 

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A new nuclear reactor in the U.S. starts up. It's the first in nearly seven years

Vogtle Unit 3 Initial Criticality marks the startup of a new U.S. nuclear reactor, initiating fission to produce heat, steam, and electricity, supporting clean energy goals, grid reliability, and carbon-free baseload power.

 

Key Points

Vogtle Unit 3 Initial Criticality is the first fission startup, launching power generation at a new U.S. reactor.

✅ First new U.S. reactor to reach criticality since 2016

✅ Generates carbon-free baseload power for the grid

✅ Faced cost overruns and delays during construction

 

For the first time in almost seven years, a new nuclear reactor has started up in the United States.

On Monday, Georgia Power announced that the Vogtle nuclear reactor Unit 3 has started a nuclear reaction inside the reactor as part of the first new reactors in decades now taking shape at the plant.

Technically, this is called “initial criticality.” It’s when the nuclear fission process starts splitting atoms and generating heat, Georgia Power said in a written announcement.

The heat generated in the nuclear reactor causes water to boil. The resulting steam spins a turbine that’s connected to a generator that creates electricity.

Vogtle’s Unit 3 reactor will be fully in service in May or June, Georgia Power said.

The last time a nuclear reactor reached the same milestone was almost seven years ago in May 2016 when the Tennessee Valley Authority started splitting atoms at the Watts Bar Unit 2 reactor in Tennessee, Scott Burnell, a spokesperson for the Nuclear Regulatory Commission, told CNBC.

“This is a truly exciting time as we prepare to bring online a new nuclear unit that will serve our state with clean and emission-free energy for the next 60 to 80 years,” Chris Womack, CEO of Georgia Power, said in a written statement. 

Including the newly turned-on Vogtle Unit 3 reactor, there are currently 93 nuclear reactors operating in the United States and, collectively, they generate 20% of the electricity in the country, although a South Carolina plant leak recently showed how outages can sideline a unit for weeks.

Nuclear reactors, which help combat global warming and support net-zero emissions goals, generate about half of the clean, carbon-free electricity generated in the U.S.

Most of the nuclear power reactors in the United States were constructed between 1970 and 1990, but construction slowed significantly after the accident at Three Mile Island near Middletown, Pennsylvania, on March 28, 1979, even as interest in next-gen nuclear power has grown in recent years. From 1979 through 1988, 67 nuclear reactor construction projects were canceled, according to the U.S. Energy Information Administration.

However, because nuclear energy is generated without releasing carbon dioxide emissions, which cause global warming, the increased sense of urgency in responding to climate change has given nuclear energy a chance at a renaissance as atomic energy heats up again globally.

The cost associated with building nuclear reactors is a major barrier to a potential resurgence in nuclear energy, however, even as nuclear generation costs have fallen to a ten-year low. And the new builds at Vogtle have become an epitome of that charge: The construction of the two Vogtle reactors has been plagued by cost overruns and delays.
 

 

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Tories 'taking the heart out of Manitoba Hydro' by promoting subsidiaries, scrapping low-cost pledges: NDP

Manitoba Hydro Privatization Debate centers on subsidiaries, Crown corporation governance, clean energy priorities, and electricity rates, as board terms shift oversight and transparency, sparking concerns about sell-offs and government control.

 

Key Points

A dispute over Hydro's governance, subsidiaries, electricity rates, and clean energy amid fears of partial privatization.

✅ Rewritten terms allow subsidiaries and shift board duties.

✅ Low rates and clean energy mandates softened in guidance.

✅ Govt cites Hydro Act; NDP warns of sell-off risks.

 

The board of Manitoba Hydro is being reminded it can divvy up some of the utility's work to subsidiaries — which the NDP is decrying as a step toward privatization. 

A sentence seemingly granting the board permission to create subsidiaries was included in the board's new terms of reference, which the NDP raised during question period Wednesday. 

The document also eliminated references asking Manitoba Hydro to keep electricity rates low, even as rate hike hearings proceed, and supply power in an environmentally-friendly fashion.

NDP raises spectre of Manitoba Hydro's privatization with new CEO
"They're essentially taking the heart out of Manitoba Hydro," NDP leader Wab Kinew said.

Cheap, clean energy is the basis by which the Crown corporation was formed, even as scaled-back rate increases are planned for next year, he said. 

"That's the whole reason we created this utility in the first place."

Another addition to the board's guidelines include stating the corporation is responsible to the government minister, who must be "proactively informed" when significant issues arise. 

The provincial government, however, says the rewritten terms of reference was the directive of the Manitoba Hydro board and not itself.

CBC's requests to the government for an interview were directed to Manitoba Hydro.

In an interview, Manitoba Hydro spokesperson Scott Powell said the energy utility has undergone no legislative changes, and is still governed by the Manitoba Hydro Act. 

The terms of reference were altered to align the board's duties with the new act overseeing Crown corporations, Powell said.

"Whether you have one or two words different in the terms of reference, the essence of the company hasn't changed."

While the new terms of reference no longer instructs the corporation to ensure an "environmentally responsible supply of energy for Manitobans," it encourages the board to "promote economy and efficiency in all phases of power generation and distribution."

On the cost to ratepayers, the updated directions asks the utility to deliver "safe, reliable energy services at a fair price," a standard clarified by a recent appeal court ruling on First Nations rates, but the board is not specifically instructed with keeping electricity rates low. 

Kinew contends the added sentence on subsidiaries permits Hydro to be broken off and sold for parts, although the terms of reference does not specify if any subsidiary would be wholly owned by Hydro or contracted to a private company.

Powell said Manitoba Hydro has been permitted to create subsidiaries since 1997, and nothing has changed since.

Kinew warned about Hydro's privatization last week when Jay Grewal was announced as Hydro's incoming CEO and president.

She was employed with B.C. Hydro when then-premier Gordon Campbell — hired by the Manitoba government to investigate costly overruns on two electricity megaprojects — sold off segments of the utility.

She then became managing director of Accenture, a global management consulting firm, which acquired several B.C. Hydro departments.

During question period Wednesday, Pallister disputed that Manitoba Hydro is bound to be sold.

He slammed the NDP's "Americanization strategy" of producing more electricity than it is capable of selling, which has saddled ratepayers with billions in debt and prompted proposed 2.5% annual increases in coming years. 

The makeup of the Hydro board has undergone a complete turnover in under a year, a contrast to Ontario's Hydro One shakeup vow during that period.

Nine of the 10 members resigned en masse this March over an impasse with the Pallister government. The lone holdover, Cliff Graydon, was dismissed from his post last month after the Progressive Conservatives removed him from caucus. 

 

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