Biden visits ABB transformer factory

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U.S. Vice President Joe Biden visited the ABB distribution transformer factory in Jefferson City, Missouri, on April 16 to recognize the plant's contribution to a wind farm in the state.

Biden pointed to the Lost Creek wind project as a prime example of how funds from the U.S. federal stimulus package are creating green jobs while expanding the country's renewable energy portfolio.

The Vice President and the Secretary of Commerce, Gary Locke, were led around the facility by its manager, Jeff Weingarten. Enrique Santacana, President and CEO of ABB in North America, joined the tour with other key participants in the 150-MW wind project that is slated to begin construction in August, including developer Wind Capital Group, utility Associated Electric Cooperative, and general contractor RMT.

Biden praised ABB as a "steadfast" and "innovative" company when he addressed about 300 employees and guests after the tour. He also recognized the employees of the Jefferson City plant in particular for their continued hard work in the face of uncertain economic conditions.

A surprise feature of the event came when U.S. Secretary of Commerce Gary Locke used his time at the podium to announce the creation of a new White House task force on smart grid issues. The electricity network is expected to become progressively "smarter" through greater use of advanced technologies that provide more control over power flows and fluctuations in consumer demand. In this way, intermittent power sources such as wind and solar can be better integrated into the grid.

Specifically, Locke pointed to the need for common standards to bring to the power grid the same kind of interoperability that has made technologies like ATM machines and the Internet ubiquitous.

ABB is a global leader in smart grid technology, and has already been instrumental in developing the very standards that Secretary Locke called for.

Joining the Vice President and the Secretary on stage were Missouri Governor Jay Nixon, Congressman Ike Skelton, and ABB employees Le Ann Ritter, Danny Fecthal, Dave Edwards, Wayne Cayce and Charlie Fisher, who had the honor of introducing Biden.

After Locke's smart grid announcement, the Vice President focused squarely on jobs. He returned often to the theme of "non-exportable jobs" that provide a good living for workers and also help move the U.S. toward greater energy independence and away from fossil fuels. He also cited the Lost Creek project as an example of how to "connect the dots" so that investments in one area, such as power transmission, can leverage investments made in others such as wind power.

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Minnesota bill mandating 100% carbon-free electricity by 2040

Minnesota 100% Carbon-Free Electricity advances renewable energy: wind, solar, hydropower, hydrogen, biogas from landfill gas and anaerobic digestion; excludes incineration in environmental justice areas; uses renewable energy credits and streamlined permitting.

 

Key Points

Minnesota's mandate requires utilities to deliver 100% carbon-free power by 2040 with targets and EJ safeguards.

✅ Utilities must hit 90% carbon-free by 2035; 100% by 2040.

✅ Incineration in EJ areas excluded; biogas, wind, solar allowed.

✅ Compliance via renewable credits; streamlined permitting.

 

Minnesota Gov. Tim Walz, D, is expected to soon sign a bill establishing a clean electricity standard requiring utilities in the state to provide electricity from 100% carbon-free sources by 2040. The bill also calls for utilities to generate at least 55% of their electricity from renewable energy sources by 2035, a trajectory similar to New Mexico's clean electricity push underway this decade.

Electricity generated from landfill gas and anaerobic digestion are named as approved renewable energy technologies, but electricity generated from incinerators operating in “environmental justice areas”, reflecting concerns about renewable facilities violating pollution rules in some states, will not be counted toward the goal. Wind, solar, and certain hydropower and hydrogen energy sources are also considered renewable in the bill. 

The bill defines EJ areas as places where at least 40% of residents are not white, 35% of households have an income that’s below 200% of the federal poverty line, and 40% or more of residents over age 5 have “limited” English proficiency. Areas the U.S. state defines as “Indian country” are also considered EJ areas.

Some of the state’s largest electric utilities, like Xcel Energy and Minnesota Power, have already pledged to move to carbon-free energy, and utilities such as Alliant Energy have outlined carbon-neutral plans in the region, but this bill speeds up that goal by 10 years, Minnesota Public Radio reported. The bill calls for public utilities operating in the state to be 80% carbon-free and other electric utilities to be 60% carbon-free by 2030. All utilities must be 90% carbon-free by 2035 before ultimately hitting the 100% mark in 2040, according to the bill.  

The bill gives utilities some leniency if they demonstrate to state regulators that they can’t offer affordable power while working toward the benchmarks, acknowledging reliability challenges seen in places like California's grid during the clean energy transition. It also allows utilities to buy renewable energy credits to meet the standard instead of generating the energy themselves. 

Patrick Serfass, executive director of the American Biogas Council, said the bill will incentivize more biogas-related electricity projects, “which means the recycling of more organic material and more renewable electricity in the state. Those are all good things,” he said. ABC sees significant potential for biogas production in Minnesota, though the federal climate law has delivered mixed results for accelerating clean power deployment.

The bill also aims to streamline the permitting process for new energy projects in the state, even as some states consider limits on clean energy that would constrain utility use, and calls for higher minimum wage requirements for workers.

 

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Town of Gander forgives $250K debt from local curling club

Gander Curling Club Debt Forgiveness Agreement explained: town council tax relief, loan write-off conditions, community benefits, and economic impact, covering long-standing taxes and loans while protecting the facility with asset clauses and compliance terms.

 

Key Points

Town plan erasing 25 years of tax and loan debt, with conditions to keep the curling facility open for residents.

✅ Conditions: no borrowing against property without consent.

✅ Water and sewer taxes must be paid annually.

✅ If sold or use changes, debt due; transfer for $1.

 

Gander town council has agreed to forgive the local curling club's debt of over $250,000.

Gina Brown, chair of the town council's finance committee, says the agreement has been put in place to help the curling club survive, amid broader discussions on electricity affordability in Newfoundland and Labrador.

"When we took a look at this and realized there was a significant outstanding debt for Gander curling club … we have to mitigate," Brown told CBC Newfoundland Morning. "[Getting] what the taxpayers are owed, with also understanding and appreciating the role that that recreational facility plays in our community."

According to Brown, the debt comes from a combination of taxes and loans, going back about 25 years. She says the curling club understood there was debt, but didn't know the number was so high. The club has been in the black since 2007, but used their profits for other items like renovations.

"Like so many cases when you're dealing with an organization with a changing board, and the same for council … [people are] coming in and coming out," Brown said. "And as a result, my understanding from the curling club's perspective is they weren't aware of how much was outstanding."

Chris McLeod, president of the Gander Curling Club, told CBC the club had been trying to address the debt since he became president in 2014.

Terms of agreement
The town's agreement with the club comes with the following stipulations:

The club will not use the property as security for any form of borrowing without the town's consent.
 
The club will continue to pay water and sewer tax annually.
 
If the club sells the property, the town reserves the right to void the agreement and the debt will immediately become due in full.
 
If the club stops using the facility as a curling club, the property will be transferred to the town for $1.
McLeod says the club will not attempt to pay back the debt, as it is not part of the agreement. The only way the debt would be paid is if the building is sold, which McLeod says it won't be, and there are also no plans to use the building for anything other than a curling club.

"[The debt] is basically gone now," McLeod said.

McLeod says the move was made to help get the debt off the books, and make sure the curling club can be financially responsible in the future, similar to relief programs some utilities offered during the pandemic.

The curling club is something that encourages people. So we felt that this has to be maintained.
- Gina Brown

Brown says keeping the curling club in Gander is important for the town, and brings different benefits to the area, as regional power cooperation debates illustrate broader trends.

"They are servicing people from as young as Grade 1 to seniors," Brown said. "You need little to no equipment, you need no background. So for the town itself, for its social and health implications, as provinces advance emissions plans that can affect communities, is one. But the other thing is the economic benefit that comes from having this facility here."


The Gander Curling Club's debt forgiveness comes with several conditions. (Google Maps)
The curling club can help attract people into the community, as recreational facilities are often a key draw for families, she added, while other provinces are creating transition funds to support communities.

"When you're as a town, trying to attract people coming in … whether you're a doctor, nurse, anybody looking at the recreational facilities, the curling club is something that encourages people," Brown said. "So we felt that this has to be maintained."

Brown says the town understands they might be setting a precedent with other businesses in forgiving the debts of the curling club, as major infrastructure like B.C.'s Site C dam has faced budget overruns.

"That's another thing we had to consider, what kind of precedents are [we] establishing?" Brown said. "From our standpoint, I think one of the things about this agreement that we felt was beneficial to the town is that they have an asset, helping to avoid costly delays seen with large projects. And the asset is a great building. To us, the taxpayers are in a win-win situation."

 

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A new material made from carbon nanotubes can generate electricity by scavenging energy from its environment

Carbon Nanotube Solvent Electricity enables wire-free electrochemistry as organic solvents like acetonitrile pull electrons, powering alcohol oxidation and packed bed reactors, energy harvesting, and micro- and nanoscale robots via redox-driven current.

 

Key Points

Solvent-driven electron extraction from carbon nanotube particles generates current for electrochemistry.

✅ 0.7 V per particle via solvent-induced electron flow

✅ Packed bed reactors drive alcohol oxidation without wires

✅ Scalable for micro- and nanoscale robots; energy harvesting

 

MIT engineers have discovered a new way of generating electricity, alongside advances in renewable power at night that broaden what's possible, using tiny carbon particles that can create a current simply by interacting with liquid surrounding them.

The liquid, an organic solvent, draws electrons out of the particles, generating a current, unlike devices based on a cheap thermoelectric material that rely on heat, that could be used to drive chemical reactions or to power micro- or nanoscale robots, the researchers say.

"This mechanism is new, and this way of generating energy is completely new," says Michael Strano, the Carbon P. Dubbs Professor of Chemical Engineering at MIT. "This technology is intriguing because all you have to do is flow a solvent through a bed of these particles. This allows you to do electrochemistry, but with no wires."

In a new study describing this phenomenon, the researchers showed that they could use this electric current to drive a reaction known as alcohol oxidation—an organic chemical reaction that is important in the chemical industry.

Strano is the senior author of the paper, which appears today in Nature Communications. The lead authors of the study are MIT graduate student Albert Tianxiang Liu and former MIT researcher Yuichiro Kunai. Other authors include former graduate student Anton Cottrill, postdocs Amir Kaplan and Hyunah Kim, graduate student Ge Zhang, and recent MIT graduates Rafid Mollah and Yannick Eatmon.

Unique properties
The new discovery grew out of Strano's research on carbon nanotubes—hollow tubes made of a lattice of carbon atoms, which have unique electrical properties. In 2010, Strano demonstrated, for the first time, that carbon nanotubes can generate "thermopower waves." When a carbon nanotube is coated with layer of fuel, moving pulses of heat, or thermopower waves, travel along the tube, creating an electrical current that exemplifies turning thermal energy into electricity in nanoscale systems.

That work led Strano and his students to uncover a related feature of carbon nanotubes. They found that when part of a nanotube is coated with a Teflon-like polymer, it creates an asymmetry, distinct from conventional thermoelectric materials approaches, that makes it possible for electrons to flow from the coated to the uncoated part of the tube, generating an electrical current. Those electrons can be drawn out by submerging the particles in a solvent that is hungry for electrons.

To harness this special capability, the researchers created electricity-generating particles by grinding up carbon nanotubes and forming them into a sheet of paper-like material. One side of each sheet was coated with a Teflon-like polymer, and the researchers then cut out small particles, which can be any shape or size. For this study, they made particles that were 250 microns by 250 microns.

When these particles are submerged in an organic solvent such as acetonitrile, the solvent adheres to the uncoated surface of the particles and begins pulling electrons out of them.

"The solvent takes electrons away, and the system tries to equilibrate by moving electrons," Strano says. "There's no sophisticated battery chemistry inside. It's just a particle and you put it into solvent and it starts generating an electric field."

Particle power
The current version of the particles can generate about 0.7 volts of electricity per particle. In this study, the researchers also showed that they can form arrays of hundreds of particles in a small test tube. This "packed bed" reactor, unlike thin-film waste-heat harvesters for electronics, generates enough energy to power a chemical reaction called an alcohol oxidation, in which an alcohol is converted to an aldehyde or a ketone. Usually, this reaction is not performed using electrochemistry because it would require too much external current.

"Because the packed bed reactor is compact, it has more flexibility in terms of applications than a large electrochemical reactor," Zhang says. "The particles can be made very small, and they don't require any external wires in order to drive the electrochemical reaction."

In future work, Strano hopes to use this kind of energy generation to build polymers using only carbon dioxide as a starting material. In a related project, he has already created polymers that can regenerate themselves using carbon dioxide as a building material, in a process powered by solar energy and informed by devices that generate electricity at night as a complement. This work is inspired by carbon fixation, the set of chemical reactions that plants use to build sugars from carbon dioxide, using energy from the sun.

In the longer term, this approach could also be used to power micro- or nanoscale robots. Strano's lab has already begun building robots at that scale, which could one day be used as diagnostic or environmental sensors. The idea of being able to scavenge energy from the environment, including approaches that produce electricity 'out of thin air' in ambient conditions, to power these kinds of robots is appealing, he says.

"It means you don't have to put the energy storage on board," he says. "What we like about this mechanism is that you can take the energy, at least in part, from the environment."

 

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Can the Electricity Industry Seize Its Resilience Moment?

Hurricane Grid Resilience examines how utilities manage outages with renewables, microgrids, and robust transmission and distribution systems, balancing solar, wind, and batteries to restore service, harden infrastructure, and improve storm response and recovery.

 

Key Points

Hurricane grid resilience is a utility approach to withstand storms, reduce outages, and speed safe power restoration.

✅ Focus on T&D hardening, vegetation management, remote switching

✅ Balance generation mix; integrate solar, wind, batteries, microgrids

✅ Plan 12-hour shifts; automate forecasting and outage restoration

 

When operators of Duke Energy's control room in Raleigh, North Carolina wait for a hurricane, the mood is often calm in the hours leading up to the storm.

“Things are usually fairly quiet before the activity starts,” said Mark Goettsch, the systems operations manager at Duke. “We’re anxiously awaiting the first operation and the first event. Once that begins, you get into storm mode.”

Then begins a “frenzied pace” that can last for days — like when Hurricane Florence parked over Duke’s service territory in September.

When an event like Florence hits, all eyes are on transmission and distribution. Where it’s available, Duke uses remote switching to reconnect customers quickly. As outages mount, the utility forecasts and balances its generation with electricity demand.

The control center’s four to six operators work 12-hour shifts, while nearby staff members field thousands of calls and alarms on the system. After it’s over, “we still hold our breath a little bit to make sure we’ve operated everything correctly,” said Goettsch. Damage assessment and rebuilding can only begin once a storm passes.

That cycle is becoming increasingly common in utility service areas like Duke's.

A slate of natural disasters that reads like a roll call — Willa, Michael, Harvey, Irma, Maria, Florence and Thomas — has forced a serious conversation about resiliency. And though Goettsch has heard a lot about resiliency as a “hot topic” at industry events and meetings, those conversations are only now entering Duke’s control room.

Resilience discussions come and go in the energy industry. Storms like Hurricane Sandy and Matthew can spur a nationwide focus on resiliency, but change is largely concentrated in local areas that experienced the disaster. After a few news cycles, the topic fades into the background.

However, experts agree that resilience is becoming much more important to year-round utility planning and operations as utilities pursue decarbonization goals across their fleets. It's not a fad.

“If you look at the whole ecosystem of utilities and vendors, there’s a sense that there needs to be a more resilient grid,” said Miki Deric, Accenture’s managing director of utilities, transmission and distribution for North America. “Even if they don’t necessarily agree on everything, they are all working with the same objective.”

Can renewables meet the challenge?

After Hurricane Florence, The Intercept reported on coal ash basins washed out by the storm’s overwhelming waters. In advance of that storm, Duke shut down one nuclear plant to protect it from high winds. The Washington Post also recently reported on a slowly leaking oil spill, which could surpass Deepwater Horizon in size, caused by Hurricane Ivan in 2004.

Clean energy boosters have seized on those vulnerabilities.They say solar and wind, which don’t rely on access to fuel and can often generate power immediately after a storm, provide resilience that other electricity sources do not.

“Clearly, logistics becomes a big issue on fossil plants, much more than renewable,” said Bruce Levy, CEO and president at BMR Energy, which owns and operates clean energy projects in the Caribbean and Latin America. “The ancillaries around it — the fuel delivery, fuel storage, water in, water out — are all as susceptible to damage as a renewable plant.”

Duke, however, dismissed the notion that one generation type could beat out another in a serious storm.

“I don’t think any generation source is immune,” said Duke spokesperson Randy Wheeless. “We’ve always been a big supporter of a balanced energy mix, reflecting why the grid isn't 100% renewable in practice today. That’s going to include nuclear and natural gas and solar and renewables as well. We do that because not every day is a good day for each generation source.”

In regard to performance, Wade Schauer, director of Americas Power & Renewables Research at Wood Mackenzie, said the situation is “complex.” According to him, output of solar and wind during a storm depends heavily on the event and its location.

While comprehensive data on generation performance is sparse, Schauer said coal and gas generators could experience outages at 25 percent while stormy weather might cut 95 percent of output from renewables, underscoring clean energy's dirty secret about variability under stress. Ahead of last year’s “bomb cyclone” in New England, WoodMac data shows that wind dropped to less than 1 percent of the supply mix.

“When it comes to resiliency, ‘average performance’ doesn't cut it,” said Schauer.

In the future, he said high winds could impact all U.S. offshore wind farms, since projects are slated for a small geographic area in the Northeast. He also pointed to anecdotal instances of solar arrays in New England taken out by feet of snow. During Florence, North Carolina’s wind farms escaped the highest winds and continued producing electricity throughout. Cloud cover, on the other hand, pushed solar production below average levels.

After Florence passed, Duke reported that most of its solar came online quickly, although four of its utility-owned facilities remained offline for weeks afterward. Only one was because of damage; the other three remained offline due to substation interconnection issues.

“Solar performed pretty well,” said Wheeless. “But did it come out unscathed? No.”

According to installer reports, solar systems fared relatively well in recent storms, even as the Covid-19 impact on renewables constrained projects worldwide. But the industry has also highlighted potential improvements. Following Hurricanes Maria and Irma, the Federal Emergency Management Agency published guidelines for installing and maintaining storm-resistant solar arrays. The document recommended steps such as annual checks for bolt tightness and using microinverters rather than string inverters.

Rocky Mountain Institute (RMI) also assembled a guide for retrofitting and constructing new installations. It described attributes of solar systems that survived storms, like lateral racking supports, and those that failed, like undersized and under-torqued bolts.

“The hurricanes, as much as no one liked them, [were] a real learning experience for folks in our industry,” said BMR’s Levy. “We saw what worked, and what didn’t.”          

Facing the "800-pound gorilla" on the grid

Advocates believe wind, solar, batteries and microgrids offer the most promise because they often rely less on transmitting electricity long distances and could support peer-to-peer energy models within communities.

Most extreme weather outages arise from transmission and distribution problems, not generation issues. Schauer at WoodMac called storm damage to T&D the “800-pound gorilla.”

“I'd be surprised if a single customer power outage was due to generators being offline, especially since loads where so low due to mild temperatures and people leaving the area ahead of the storm,” he said of Hurricane Florence. “Instead, it was wind [and] tree damage to power lines and blown transformers.”

 

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Nova Scotia's last paper mill seeks new discount electricity rate

Nova Scotia Power Active Demand Control Tariff lets the utility direct Port Hawkesbury Paper load, enabling demand response, efficiency, and industrial electricity rates, while regulators assess impacts on ratepayers, grid reliability, mill viability, and savings.

 

Key Points

A four-year tariff letting the utility control the mill load for demand response, efficiency, and lower costs.

✅ Utility can increase or reduce daily consumption at the mill

✅ Projected savings of $10M annually for other ratepayers to 2023

✅ Regulators reviewing cost allocation, monitoring, and viability

 

Nova Scotia Power is scheduled to appear before government regulators Tuesday morning seeking approval for a unique discount rate for its largest customer.

Under the four-year plan, Nova Scotia Power would control the supply of electricity to Port Hawkesbury Paper, a move referenced in a grid operations report that urges changes, with the right to direct the company to increase or reduce daily consumption throughout the year.

The rate proposal is supported by the mill, which says it needs to lower its power bill to keep its operation viable.

The rate went into effect on Jan. 1 on a temporary basis, pending the outcome of a hearing this week before the Nova Scotia Utility and Review Board, amid broader calls for an independent body to lead electricity planning.

The mill accounts for 10 per cent of the provincial electricity load, even as a neighbouring utility pursues more Quebec power for the region, producing glossy paper used in magazines and catalogs.

Nova Scotia Power says controlling how much electricity the mill uses — and when — will allow it to operate the system much more efficiently, as it expands biomass generation initiatives, saving other customers $10 million a year until the rate expires in 2023.

Ceding control 'not an easy decision'
In its opening statement that was filed in advance, Port Hawkesbury Paper said ceding the control of its electrical supply to Nova Scotia Power was "not an easy decision" to make, but the company is confident the arrangement will work.

In September 2019, Nova Scotia Power and the mill jointly applied for an "extra large active demand control tariff," which would provide electricity to the mill for about $61 per megawatt hour, well below the full cost of generating the electricity.

The utility said "fully allocating costs" would result in "prices in excess of $80/MWh ... and [would] not [be] financially viable for the mill."

In its statement, Port Hawkesbury Paper said since the initial filing "there have been greater near term declines in market demand and pricing for PHP's product than was forecast at that time, continuing to put pressure on our business and further highlighting the need to maintain the balance provided for in the new tariff."

Consumer advocate sees 'advantage,' but will challenge
Bill Mahody represents Nova Scotia Power's 400,000 residential customers before the review board. He wants proof the mill will pay enough toward the cost of generating the electricity it uses, amid concerns over biomass use in the province today.

"We filed evidence, as have others involved in the proceeding, that would call into question whether or not the rate design is capturing all of those costs and that will be a significant issue before the board," Mahody said.

Still, he sees value in the proposal.

The proposed new rate went into effect on Jan. 1 on a temporary basis. (The Canadian Press)
"This proposed rate gives Nova Scotia Power the ability to control that sizable Port Hawkesbury Paper load to the advantage of other ratepayers, as the province pursues more wind and solar projects, because Nova Scotia Power would be reducing the costs that other ratepayers are going to face," he said.

Mahody is also calling for a mechanism to monitor whether the mill's position actually improves to the point where it could pay higher rates.

"An awful lot can change during a four-year period, with new tidal power projects underway, and I think the board ought to have the ability to check in on this and make sure that their preferential rate continues to be justified," he said.

Major employer
Port Hawkesbury Paper, owned by Stern Partners in Vancouver, has received discounted power rates since it bought the idled mill in 2012. But the "load retention tariff" as it was called, expired at the end of 2019.

Regulators have accepted Nova Scotia Power's argument that it would cost other customers more if the mill ceased to operate.

The mill said it spends between $235 million and $265 million annually, employing 330 people directly and supporting 500 other jobs indirectly.

The Nova Scotia government pledged $124 million in financial assistance as part of the reopening in 2012.

 

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Consumer choice has suddenly revolutionized the electricity business in California. But utilities are striking back

California Community Choice Aggregators are reshaping electricity markets with renewable energy, solar and wind sourcing, competitive rates, and customer choice, challenging PG&E, SDG&E, and Southern California Edison while advancing California's clean power goals.

 

Key Points

Local governments that buy power, often cleaner and cheaper, while utilities handle delivery and billing.

✅ Offer higher renewable mix than utilities at competitive rates

✅ Utilities retain transmission and billing responsibilities

✅ Rapid expansion threatens IOU market share across California

 

Nearly 2 million electricity customers in California may not know it, but they’re part of a revolution. That many residents and businesses are getting their power not from traditional utilities, but via new government-affiliated entities known as community choice aggregators. The CCAs promise to deliver electricity more from renewable sources, such as solar and wind, even as California exports its energy policies across Western states, and for a lower price than the big utilities charge.

The customers may not be fully aware they’re served by a CCA because they’re still billed by their local utility. But with more than 1.8 million accounts now served by the new system and more being added every month, the changes in the state’s energy system already are massive.

Faced for the first time with real competition, the state’s big three utilities have suddenly become havens of innovation. They’re offering customers flexible options on the portion of their power coming from renewable energy, amid a broader review to revamp electricity rates aimed at cleaning the grid, and they’re on pace to increase the share of power they get from solar and wind power to the point where they are 10 years ahead of their deadline in meeting a state mandate.

#google#

But that may not stem the flight of customers. Some estimates project that by late this year, more than 3 million customers will be served by 20 CCAs, and that over a longer period, Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric could lose 80% of their customers to the new providers.

Two big customer bases are currently in play: In Los Angeles and Ventura counties, a recently launched CCA called the Clean Power Alliance is hoping by the end of 2019 to serve nearly 1 million customers. Unincorporated portions of both counties and 29 municipalities have agreed in principle to join up.

Meanwhile, the city of San Diego is weighing two options to meet its goal of 100% clean power by 2035, as exit fees are being revised by the utilities commission: a plan to be submitted by SDG&E, or the creation of a CCA. A vote by the City Council is expected by the end of this year. A city CCA would cover 1.4 million San Diegans, accounting for half SDG&E’s customer demand, according to Cody Hooven, the city’s chief sustainability officer.

Don’t expect the big companies to give up their customers without a fight. Indeed, battle lines already are being drawn at the state Public Utilities Commission, where a recent CPUC ruling sided with a community energy program over SDG&E, and local communities.

“SDG&E is in an all-out campaign to prevent choice from happening, so that they maintain their monopoly,” says Nicole Capretz, who wrote San Diego’s climate action plan as a city employee and now serves as executive director of the Climate Action Campaign, which supports creation of the CCA.

California is one of seven states that have legalized the CCA concept, even as regulators weigh whether the state needs more power plants to ensure reliability. (The others are New York, New Jersey, Massachusetts, Ohio, Illinois and Rhode Island.) But the scale of its experiment is likely to be the largest in the country, because of the state’s size and the ambition of its clean-power goal, which is for 50% of its electricity to be generated from renewable sources by 2030.

California created its system via legislative action in 2002. Assembly Bill 117 enabled municipalities and regional governments to establish CCAs anywhere that municipal power agencies weren’t already operating. Electric customers in the CCA zones were automatically signed up, though they could opt out and stay with their existing power provider. The big utilities would retain responsibility for transmission and distribution lines.

The first CCA, Marin Clean Energy, began operating in 2010 and now serves 470,000 customers in Marin and three nearby counties.

The new entities were destined to come into conflict with the state’s three big investor-owned utilities. Their market share already has fallen to about 70%, from 78% as recently as 2010, and it seems destined to keep falling. In part that’s because the CCAs have so far held their promise: They’ve been delivering relatively clean power and charging less.

The high point of the utilities’ hostility to CCAs was the Proposition 16 campaign in 2009. The ballot measure was dubbed the “Taxpayers Right to Vote Act,” but was transparently an effort to smother CCAs in the cradle. PG&E drafted the measure, got it on the ballot, and contributed all of the $46.5 million spent in the unsuccessful campaign to pass it.

As recently as last year, PG&E and SDG&E were lobbying in the legislature for a bill that would place a moratorium on CCAs. The effort failed, and hasn’t been revived this year.

Rhetoric similar to that used by PG&E against Marin’s venture has surfaced in San Diego, where a local group dubbed “Clear the Air” is fighting the CCA concept by suggesting that it could be financially risky for local taxpayers and questioning whether it will be successful in providing cleaner electricity. Whether Clear the Air is truly independent of SDG&E’s parent, Sempra Energy, is questionable, as at least two of its co-chairs are veteran lobbyists for the company.

SDG&E spokeswoman Helen Gao says the utility supports “customers’ right to choose an energy provider that best meets their needs” and expects to maintain a “cooperative relationship” with any provider chosen by the city.

 

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