FERC approves settlement agreement for TrAIL

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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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Environmentalist calls for reduction in biomass use to generate electricity

Nova Scotia Biomass Energy faces scrutiny as hydropower from Muskrat Falls via the Maritime Link increases, raising concerns over carbon emissions, biodiversity, ratepayer costs, and efficiency versus district heating in the province's renewable mix.

 

Key Points

Electricity from wood chips and waste wood in Nova Scotia, increasingly questioned as hydropower from the Maritime Link grows.

✅ Hydropower deliveries reduce need for biomass on the grid

✅ Biomass is inefficient, costly, and impacts biodiversity

✅ District heating offers better use of forestry residuals

 

The Ecology Action Centre's senior wilderness coordinator is calling on the Nova Scotia government to reduce the use of biomass to generate electricity now that more hydroelectric power is flowing into the province.

In 2020, the government of the day signed a directive for Nova Scotia Power to increase its use of biomass to generate electricity, including burning more wood chips, waste wood and other residuals from the forest industry. At the time, power from Muskrat Falls hydroelectric project in Labrador was not flowing into the province at high enough levels to reach provincial targets for electricity generated by renewable resources.

In recent months, however, the Maritime Link from Muskrat Falls has delivered Nova Scotia's full share of electricity, and, in some cases, even more, as the province also pursues Bay of Fundy tides projects to diversify supply.

Ray Plourde with the Ecology Action Centre said that should be enough to end the 2020 directive.

Ray Plourde is senior wilderness coordinator for the Ecology Action Centre. (CBC)
Biomass is "bad on a whole lot of levels," said Plourde, including its affects on biodiversity and the release of carbon into the atmosphere, he said. The province's reliance on waste wood as a source of fuel for electricity should be curbed, said Plourde.

"It's highly inefficient," he said. "It's the most expensive electricity on the power grid for ratepayers."

A spokesperson for the provincial Natural Resources and Renewables Department said that although the Maritime Link has "at times" delivered adequate electricity to Nova Scotia, "it hasn't done so consistently," a context that has led some to propose an independent planning body for long-term decisions.

"These delays and high fossil fuel prices mean that biomass remains a small but important component of our renewable energy mix," Patricia Jreiga said in an email, even as the province plans to increase wind and solar projects in the years ahead.

But to Plourde, that explanation doesn't wash.

The Nova Scotia Utility and Review Board recently ruled that Nova Scotia Power could begin recouping costs of the Maritime Link project from ratepayers. As for the rising cost of fossil fuels, Ploude noted that the inefficiency of biomass means there's no deal to be had using it as a fuel source.

"Honestly, that sounds like a lot of obfuscation," he said of the government's position.

No update on district heating plans
At the time of the directive, government officials said the increased use of forestry byproducts at biomass plants in Point Tupper and Brooklyn, N.S., including the nearby Port Hawkesbury Paper mill, would provide a market for businesses struggling to replace the loss of Northern Pulp as a customer. Brooklyn Power has been offline since a windstorm damaged that plant in February, however. Repairs are expected to be complete by the end of the year or early 2023.

Ploude said a better use for waste wood products would be small-scale district heating projects, while others advocate using more electricity for heat in cold regions.

Although the former Liberal government announced six public buildings to serve as pilot sites for district heating in 2020, and a list of 100 other possible buildings that could be converted to wood heat, there have been no updates.

"Currently, we're working with several other departments to complete technical assessments for additional sites and looking at opportunities for district heating, but no decisions have been made yet," provincial spokesperson Steven Stewart said in an email.

 

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Hydro One announces pandemic relief fund for Hydro One customers

Hydro One Pandemic Relief Fund offers COVID-19 financial assistance, payment flexibility, and Winter Relief to Ontario electricity customers facing hardship, with disconnection protection and customer support to help manage bills during the health crisis.

 

Key Points

COVID-19 aid offering bill credits, payment flexibility, and disconnection protection for electricity customers.

✅ Financial assistance and bill credits for hardship cases

✅ Flexible payment plans and extended Winter Relief

✅ No-disconnect policy and dedicated customer support hours

 

We are pleased to announce a Pandemic Relief Fund to assist customers affected by the novel coronavirus (COVID-19). As part of our commitment to customers, we will offer financial assistance as well as increased payment flexibility to customers experiencing hardship. The fund is designed to support customers impacted by these events and those that may experience further impacts.

In addition to this, we've also extended our Winter Relief program, aligning with our ban on disconnections policy so no customer experiencing any hardship has to worry about potential disconnection.

We recognize that this is a difficult time for everyone and we want our customers to know that we’re here to support them. We hope this fund and the added measures, such as extended off-peak rates that help provide our customers peace of mind so they can concentrate on what matters most — keeping their loved ones safe.

If you are concerned about paying your bill, are experiencing hardship or have been impacted by the pandemic, including electricity relief announced by the province, we want to help you. Call us to discuss the fund and see what options are available for you.


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KEEPING ONTARIANS AND OUR ELECTRICITY SYSTEM SAFE
We recognize the critical role we play in powering communities across the province and our support for the Province of Ontario during COVID-19. This is a responsibility to employees, customers, businesses and the people of Ontario that we take very seriously.

Since the novel coronavirus (COVID-19) outbreak began, Hydro One’s Pandemic Team along with our leadership, have been actively monitoring the issues to ensure we can continue to deliver the service Ontarians depend on while keeping our employees, customers and the public safe, even as there has been no cut in peak hydro rates yet for self-isolating customers across Ontario. While the risk in Ontario remains low, we believe we can best protect our people and our operations by taking proactive measures.

As information continues to evolve, our leadership team along with the Pandemic Planning Team and our Emergency Operations Centre are committed to maintaining business continuity while minimizing risk to employees and communities.

Over the days and weeks to come, we will work with the sector and government, which is preparing to extend disconnect moratoriums across the province, to enhance safety protocols and champion the needs of electricity customers in Ontario.
 

 

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Frustration Mounts as Houston's Power Outage Extends

Houston Power Outage Heatwave intensifies a prolonged blackout, straining the grid and infrastructure resilience; emergency response, cooling centers, and power restoration efforts race to protect vulnerable residents amid extreme temperatures and climate risks.

 

Key Points

A multi-day blackout and heatwave straining Houston's grid, limiting cooling, and prompting emergency response.

✅ Fourth day without power amid dangerous heat

✅ Grid failures expose infrastructure vulnerabilities

✅ Cooling centers, aid groups support vulnerable residents

 

Houston is enduring significant frustration and hardship as a power outage stretches into its fourth day amid a sweltering heatwave. The extended blackout has exacerbated the challenges faced by residents in one of the nation’s largest and most dynamic cities, underscoring the critical need for reliable infrastructure and effective emergency response systems.

The power outage began early in the week, coinciding with a severe heatwave that has driven temperatures to dangerous levels. With the city experiencing some of the highest temperatures of the year, the lack of electricity has left residents without essential cooling, contributing to widespread discomfort and health risks. The heatwave has placed an added strain on Houston's already overburdened power grid, which has struggled to cope with the soaring demand for air conditioning and cooling.

The prolonged outage has led to escalating frustration among residents. Many households are grappling with sweltering indoor temperatures, leading to uncomfortable living conditions and concerns about the impact on vulnerable populations, including the elderly, young children, and individuals with pre-existing health conditions. The lack of power has also disrupted daily routines, as morning routine disruptions in London demonstrate, including access to refrigeration for food, which has led to spoilage and further complications.

Emergency services and utility companies have been working around the clock to restore power, but progress has been slow, echoing how Texas utilities struggled to restore power during Hurricane Harvey, as crews contended with access constraints. The complexity of the situation, combined with the high demand for repairs and the challenging weather conditions, has made it difficult to address the widespread outages efficiently. As the days pass, the situation has become increasingly dire, with residents growing more impatient and anxious about when they might see a resolution.

Local officials and utility providers have been actively communicating with the public, providing updates on the status of repairs and efforts to restore power. However, the communication has not always been timely or clear, leading to further frustration among those affected. The sense of uncertainty and lack of reliable information has compounded the difficulties faced by residents, who are left to manage the impacts of the outage with limited guidance.

The situation has also raised questions about the resilience of Houston’s power infrastructure. The outage has highlighted vulnerabilities in the city's energy grid, similar to how a recent windstorm caused significant outages elsewhere, which has faced previous challenges but has not experienced an extended failure of this magnitude in recent years. The inability of the grid to withstand the extreme heat and maintain service during a critical time underscores the need for infrastructure improvements and upgrades to better handle similar situations in the future.

In response to the crisis, community organizations and local businesses have stepped up to provide support to those in need, much like Toronto's cleanup after severe flooding mobilized volunteers and services, in order to aid affected residents. Cooling centers have been established to offer relief from the heat, providing a respite for individuals who are struggling to stay cool at home. Additionally, local food banks and charitable organizations are distributing essential supplies to those affected by food spoilage and other challenges caused by the power outage.

The power outage and heatwave have also sparked broader discussions about climate resilience and preparedness. Extreme weather events and prolonged heatwaves are becoming increasingly common due to climate change, as strong winds knocked out power across the Miami Valley recently, raising concerns about how cities and infrastructure systems can adapt to these new realities. The current situation in Houston serves as a stark reminder of the importance of investing in resilient infrastructure and developing comprehensive emergency response plans to mitigate the impacts of such events.

As the outage continues, there is a growing call for improved strategies to manage power grid failures, with examples like the North Seattle outage affecting 13,000 underscoring the need, and better support for residents during crises. Advocates are urging for a reevaluation of emergency response protocols, increased investment in infrastructure upgrades, and enhanced communication systems to ensure that the public receives timely and accurate information during emergencies.

In summary, Houston's power outage, now extending into its fourth day amid extreme heat, has caused significant frustration and hardship for residents. The prolonged disruption has underscored the need for more resilient energy infrastructure, as seen when power outages persisted for hundreds in Toronto, and effective emergency response measures. With temperatures soaring and the situation continuing to unfold, the city faces a critical challenge in restoring power, managing the impacts on its residents, and preparing for future emergencies. The crisis highlights broader issues related to infrastructure resilience and climate adaptation, emphasizing the need for comprehensive strategies to address and mitigate the effects of extreme weather events.

 

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Heatwave Sparks Unprecedented Electricity Demand Across Eastern U.S

Eastern U.S. Heatwave Electricity Demand surges to record peak load, straining the power grid, lifting wholesale prices, and prompting demand response, conservation measures, and load shedding to protect grid reliability during extreme temperatures.

 

Key Points

It is the record peak load from extreme heat, straining grids, lifting wholesale prices, and prompting demand response.

✅ Peak electricity use stresses regional power grid.

✅ Prices surge; conservation and demand response urged.

✅ Utilities monitor load, avoid outages via load shedding.

 

As temperatures soar to unprecedented highs across the Eastern United States, a blistering heatwave has triggered record-breaking electricity demand. This article delves into the causes behind the surge in energy consumption, its impact on the power grid, and measures taken to manage the strain during this extraordinary weather event.

Intensifying Heatwave Conditions

The Eastern U.S. is currently experiencing one of its hottest summers on record, with temperatures climbing well above seasonal norms. This prolonged heatwave has prompted millions of residents to rely heavily on air conditioning and cooling systems to escape the sweltering heat, with electricity struggles worsening in several communities, driving up electricity usage to peak levels.

Strain on Power Grid Infrastructure

The surge in electricity demand during the heatwave has placed significant strain on the region's power grid infrastructure, with supply-chain constraints complicating maintenance and equipment availability during peak periods.

Record-breaking Energy Consumption

The combination of high temperatures and increased cooling demands has led to record-breaking energy consumption levels across the Eastern U.S. States like New York, Pennsylvania, and Maryland have reported peak electricity demand exceeding previous summer highs, with blackout risks drawing heightened attention from operators, highlighting the extraordinary nature of this heatwave event.

Impact on Energy Costs and Supply

The spike in electricity demand during the heatwave has also affected energy costs and supply dynamics. Wholesale electricity prices have surged in response to heightened demand, contributing to sky-high energy bills for many households, reflecting the market's response to supply constraints and increased operational costs for power generators and distributors.

Management Strategies and Response

Utility companies and grid operators have implemented various strategies to manage electricity demand and maintain grid reliability during the heatwave. These include voluntary conservation requests, load-shedding measures, and real-time monitoring of grid conditions to prevent power outages while avoiding potential blackouts or disruptions.

Community Outreach and Public Awareness

Amidst the heatwave, community outreach efforts play a crucial role in raising public awareness about energy conservation and safety measures. Residents are encouraged to conserve energy during peak hours, adjust thermostat settings, and utilize energy-efficient appliances to alleviate strain on the power grid and reduce overall energy costs.

Climate Change and Resilience

The intensity and frequency of heatwaves are exacerbated by climate change, underscoring the importance of building resilience in energy infrastructure and adopting sustainable practices. Investing in renewable energy sources, improving energy efficiency and demand response programs that can reduce peak demand, and implementing climate adaptation strategies are essential steps towards mitigating the impacts of extreme weather events like heatwaves.

Looking Ahead

As the Eastern U.S. navigates through this heatwave, stakeholders are focused on implementing lessons learned from California's grid response to enhance preparedness and resilience for future climate-related challenges. Collaborative efforts between government agencies, utility providers, and communities will be crucial in developing comprehensive strategies to manage energy demand, promote sustainability, and safeguard public health and well-being during extreme weather events.

Conclusion

The current heatwave in the Eastern United States has underscored the critical importance of reliable and resilient energy infrastructure in meeting the challenges posed by extreme weather conditions. By prioritizing energy efficiency, adopting sustainable energy practices, and fostering community resilience, stakeholders can work together to mitigate the impacts of heatwaves and ensure a sustainable energy future for generations to come.

 

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Portsmouth residents voice concerns over noise, flicker generated by turbine

Portsmouth Wind Turbine Complaints highlight noise, shadow flicker, resident impacts, Town Council hearings, and Green Development mitigation plans near Portsmouth High School, covering renewable energy output, PPAs, and community compliance.

 

Key Points

Resident reports of noise and shadow flicker near Portsmouth High School, prompting review and mitigation efforts.

✅ Noise exceeds ambient levels seasonally, residents report fatigue.

✅ Shadow flicker lasts up to 90 minutes on affected homes.

✅ Town tasks developer to meet neighbors and propose mitigation.

 

The combination of the noise and shadows generated by the town’s wind turbine has rankled some neighbors who voiced their frustration to the Town Council during its meeting Monday.

Mark DePasquale, the founder and chairman of the company that owns the turbine, tried to reassure them with promises to address the bothersome conditions.

David Souza, a lifelong town resident who lives on Lowell Drive, showed videos of the repeated, flashing shadows cast on his home by the three blades spinning.

“I am a firefighter. I need to get my sleep,” he said. “And now it’s starting to affect my job. I’m tired.”

Town Council President Keith Hamilton tasked DePasquale with meeting with the neighbors and returning with an update in a month. “What I do need you to do, Mr. DePasquale, is to follow through with all these people.”

DePasquale said he was unaware of the flurry of complaints lodged by the residents Monday. His company had only heard of one complaint. “If I knew there was an issue before tonight, we would have responded,” he said.

His company, Green Development LLC, formerly Wind Energy Development LLC, installed the 279-foot-tall turbine near Portsmouth High School that started running in August 2016, as offshore developers like Deepwater Wind in Massachusetts plan major construction nearby. It replaced another turbine installed by a separate company that broke down in 2012.

In November 2014, the town signed an agreement with Wind Energy Development to take down the existing turbine, pay off the remaining $1.45 million of the bond the town took out to install it and put up a new turbine, amid broader legal debates like the Cornwall wind farm ruling that can affect project timelines.

In exchange, Wind Energy Development sells a portion of the energy generated by the turbine to the town at a rate of 15.5 cents per kilowatt hour for 25 years. Some of the energy generated is sold to the town of Coventry.

“We took down (the old turbine) and paid off the debt,” DePasquale said, noting that cancellations can carry high costs as seen in Ontario wind project penalties for scrapping projects. “I have no problem doing whatever the council wants … There was an economic decision made to pay off the bond and build something better.”

The turbine was on pace to produce 4 million-plus kilowatt hours per year, Michelle Carpenter, the chief operating officer of Wind Energy Development, said last April. It generates enough energy to power all municipal and school buildings in town, she said, while places like Summerside’s wind power show similarly strong output.

The constant stream of shadows cast on certain homes in the area can last for as long as an hour-and-a-half, according to Souza. “We shouldn’t have to put up with this,” he said.

Sprague Street resident John Vegas said the turbine’s noise, especially in late August, is louder than the neighborhood’s ambient noise.

“Throughout the summer, there’s almost no flicker, but this time of year it’s very prominent,” Vegas added. “It can be every day.”

He mentioned neighbors needed to be better organized to get results.

“When the residents purchased our properties we did not have this wind turbine in our backyard,” Souza said in a memo. “Due to the wind turbine … our quality of life has suffered.”

After the discussion, the council unanimously voted to allow Green Development to sublease excess energy to the Rhode Island Convention Center Authority, a similar agreement to the one the company struck with Coventry, as regional New England solar growth adds pressure on grid upgrade planning.

“This has to be a sustainable solution,” DePasquale said. “We will work together with the town on a solution.”

 

 

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Electricity Payouts on Biggest U.S. Grid Fall 64 Per Cent in Auction

PJM Capacity Auction Price Drop signals PJM Interconnection capacity market shifts, with $50/MW-day clearing, higher renewables and nuclear participation, declining coal, natural gas pressure, and zone impacts in ComEd and EMAAC, amid 21% reserve margins.

 

Key Points

A decline to $50 per MW-day in PJM capacity prices, shifting resource mix, zonal rates, and reserve margins.

✅ Clearing price fell to $50/MW-day from $140 in 2018

✅ Renewables and nuclear up; coal units down across PJM

✅ Zonal prices: ComEd $68.96, EMAAC $97.86; 21% reserves

 

Power-plant owners serving the biggest U.S. grid will be paid 64% less next year for being on standby to keep the lights on from New Jersey to Illinois.

Suppliers to PJM Interconnection LLC’s grid, which serves more than 65 million people, will get $50 a megawatt-day to provide capacity for the the year starting June 2022, according to the results of an auction released Wednesday. That’s down sharply from $140 in the previous auction, held in 2018. Analysts had expected the price would fall to about $85.

“Renewables, nuclear and new natural gas generators saw the greatest increases in cleared capacity, while coal units saw the largest decrease,” PJM said in a statement.

The PJM auction is the single most important event for power generators across the eastern U.S., including Calpine Corp., NRG Energy Inc. and Exelon Corp., because it dictates a big chunk of their future revenue. It also plays a pivotal role in shaping the region’s electricity mix, determining how much the region is willing to stick with coal and natural gas plants or replace them with wind and solar even as the aging grid complicates progress nationwide.

The results showed that the capacity price for the Chicago-area zone, known as ComEd, was $68.96 compared with $195.55 in the last auction. The price for the Pennsylvania and New Jersey zone, known as EMAAC, fell to $97.86 percent, from $165.73. All told, 144,477 megawatts cleared, representing a reserve margin of 21%.

Exelon shares fell 0.4% after the results were released. Vistra fell 1.5%. NRG was unchanged.

Blackouts triggered by extreme weather in Texas and California over the last year have reignited a debate over whether other regions should institute capacity systems similar to the one used by PJM, and whether to adopt measures like emergency fuel stock programs in New England as well. The market, which pays generators to be on standby in case extra power is needed, has long been a source of controversy. While it makes the grid more reliable, the system drives up costs for consumers. In the area around Chicago, for instance, these charges total more than $1.7 billion per year, accounting for 20% of customer bills, according to the Illinois Clean Jobs Coalition.

In the 2018 auction, PJM contracted supplies that were about 22% in excess of the peak demand projection at the time. This year, the grid is projected to start summer with a reserve margin of about 26%, as COVID-19 demand shifts persist, according to the market monitor -- far higher than the 16% most engineers say is needed to prevent major outages.

“This certainly doesn’t seem fair to ratepayers,” said Ari Peskoe, director of Harvard Law School’s Electricity Law Initiative.

Fossil-Fuel Advantage
Heading into the auction, analysts expected coal and gas plants to have the advantage. Nuclear reactors and renewables, they said, were poised to struggle amid coal and nuclear disruptions nationwide.

That’s because this is the first PJM auction run under a major pricing change imposed by federal regulators during the Trump administration. The new structure creates a price floor for some bidders, effectively hobbling nuclear and renewables that receive state subsidies while making it easier for fossil fuels to compete.

Those rules triggered contentious wrangling between power providers, PJM and federal regulators, delaying the auction for two years. The new system, however, may be short lived. The Biden administration is moving to overhaul the rules in time for the next auction in December.

Also See: Biden Climate Goals to Take Backseat in Biggest U.S. Power Grid

Dominion Energy Inc., one of the biggest U.S. utility owners, pulled out of the market over the rules. The Virginia-based company, which has a goal to have net-zero carbon emissions by 2050, said the new PJM format will “make renewables more expensive” than delivering clean energy through alternative markets.

Illinois, New Jersey and Maryland have also threatened to leave the capacity market unless the new price floor is eliminated, and Connecticut is leading a market overhaul in New England as well. PJM has already launched a process to do it.

PJM is already one of the most fossil-fuel intensive grids, with 60% of its electricity coming from coal and gas. Power plants that bid into the auction rely on it for the bulk of their revenue. That means plants that win contracts have an incentive to continue operating for as long as they can, even amid a supply-chain crisis this summer.

 

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