New Rules for a Future Puerto Rico Microgrid Landscape

Cooperative Energy bond rating upgrade signals lower debt costs as Fitch lifts GO Zone Bonds to A, reflecting Kemper exit, shift to owned generation, natural gas, and renewable energy for co-op members and borrowing rates.

Key Points

Fitch raised Cooperative Energy's GO Zone Bonds to A, cutting debt costs after Kemper exit and shift to natural gas.

✅ Fitch upgrades 2009A GO Zone Bonds from A- to A.

✅ Kemper divestment reduced risk and exposure to coal.

✅ Shift to owned generation, natural gas, renewables lowers costs.

Cooperative Energy and its 11 co-op members will see lower debt costs on $35.4 million bond; similar to regional utilities offering one-time bill decreases for customers recently.

Bailing out of its 15 percent ownership stake in Mississippi Power’s Kemper gasification plant, amid debates over coal and nuclear subsidies in federal policy, has helped Hattiesburg-based Cooperative Energy gain a ratings upgrade on a $35.4 million bond issue.

The electric power co-op, which changed its name to Cooperative Energy from South Mississippi Electric Power Association in November, received a ratings upgrade from A- to A for its 2009 2009A Mississippi Business Finance Corporation Gulf Opportunity Zone Bonds, even as other utilities announced bill reductions for customers during 2020.

“This rating upgrade reflects the success of our strategy to move from purchased power to owned generation resources, and from coal to natural gas and renewable energy as clean energy priorities gain traction,” said Cooperative Energy President/CEO Jim Compton in a press release.  “The result for our members is lower borrowing costs and more favorable rates.”

An “A” rating from Fitch designates the bond issue as “near premium quality,” a status noted as utilities adapted to pandemic-era electricity demand trends nationwide.

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Maine Climate Council Act targets 80% renewable power by 2030 and 100% by 2050, slashing greenhouse gas emissions via clean electricity, grid procurement, long-term contracts, wind and hydro integration, resilience planning, and carbon sequestration.

Key Points

A Maine policy forming a Climate Council to reach 80% renewables in 2030 100% in 2050 and cut greenhouse gas emissions.

✅ 80% renewable electricity by 2030; 100% by 2050.

✅ 45% GHG cut by 2030; 80% by 2050.

✅ Utility procurement authority for clean capacity and energy.

The winds of change have shifted and are blowing Northward, as Maine’s Governor, Janet T. Mills, has put forth an act establishing a Climate Council to guide the state’s consumption to 80% renewable electricity in 2030 and 100% by 2050, echoing New York's Green New Deal ambitions underway.

The act, LR 2478 (pdf), also sets a goal of reducing greenhouse gas emissions by 45% in 2030 and 80% by 2050. The document will be submitted to the state Legislature for consideration.

The commission would have the authority to direct investor owned transmission and distribution utilities to run competitive procurement processes, and enter into long-term contracts for capacity resources, energy resources, renewable energy credit contracts, and participate in regional programs, as these all lead toward the clean electricity and emissions-reducing goals that mirror California's 100% mandate debates today.

The Climate Council would convene industry working groups, including Scientific and Technical, Transportation, Coastal and Marine, Energy, and Building & Infrastructure working groups, plus others as needed, where examples like New Zealand's electricity transition could inform discussions.

Membership within the council would include two members of the State Senate, two members of the House, a tribal representative, many department commissioners (Education, Defense, Transportation, etc.), multiple directors, business representatives, environmental non-profit members, and climate science and resilience representatives as well.

The council would update the Maine State Climate Plan every four years, and solicit input from the public and report out progress on its goals every two years, similar to planning underway in Minnesota's carbon-free plan framework. The first Climate Action Plan would be submitted to the legislature by December 1, 2020.

Specifically, the responsibilities of the Scientific and Technical Subcommittee were laid out. The group would be scheduled to meet at least every six months, beginning no later than October 1, 2019. The group would be tasked with reviewing existing scientific literature, including net-zero electricity pathways research, to use it as guidance, recognizing gaps in the state’s knowledge, and guiding outside experts to ascertain this knowledge.  The group would consider ocean acidification, and climate change effects on the state’s species; establish science-based sea-level rise projections for the state’s coastal regions by December 1, 2020; create a climate risk map for flooding and extreme weather events; and consider carbon sequestration via biomass growth.

The state’s largest power plants (above image), generate about 31% from gas, 28% from wood and 41% from hydro+wind. Already, the state has a very clean electricity profile, much like efforts to decarbonize Canada's power sector continue apace. Below, the U.S. Energy Information Administration (EIA) notes that 51% of electricity generation within the state comes from mostly wind+hydro, with a small touch from solar power. The state also gets 24% from wood and other biomass, which would lead some to argue that the state is already at 75% “renewable electricity”. The Governor’s document does reference wind power specifically as a renewable, however, no other specific electricity source. And there is much reference to forestry, agriculture, and logging – specifically noting carbon sequestration – but nothing regarding electricity.

The state’s final 25% of electricity mostly comes from natural gas, even as renewable electricity momentum builds across North America, with this author choosing to put “other” under the fossil percentage noted above.

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Manitoba Hydro rate hikes face public hearings over electricity rates, utility bills, and debt, with impacts on low-income households, Indigenous communities, and Winnipeg services amid credit rating pressure and rising energy costs.

Key Points

Manitoba Hydro seeks 7.9% annual increases to stabilize finances and debt, impacting electricity costs for households.

✅ Proposed hikes: 7.9% yearly through 2023/24

✅ Driven by debt, credit rating declines, rising interest

✅ Disproportionate impact on low-income and Indigenous communities

Hearings began Monday into Manitoba Hydro’s request for consecutive annual rate hikes of 7.9 per cent.  The crown corporation is asking for the steep hikes to commence April 1, 2018.

The increases would continue through 2023/2024, under a multi-year rate plan before dropping to what Hydro calls “sustainable” levels.

Patti Ramage, legal counsel for Hydro, said while she understands no one welcomes the “exceptional” rate increases, the company is dealing with exceptional circumstances.

It’s the largest rate increase Hydro has ever asked for, though a scaled-back increase was discussed later, saying rising debt and declining credit ratings are affecting its financial stability.

President and CEO Kelvin Shepherd said Hydro is borrowing money to fund its interest payments, and acknowledged that isn’t an effective business model.

Hydro’s application states that it will be spending up to 63 per cent of its revenue on paying financial expenses if the current request for rate hikes is not approved.

If it does get the increase it wants, that number could shrink to 45 per cent – which Ramage says is still quite high, but preferable to the alternative.

She cited the need to take immediate action to fix Hydro’s finances instead of simply hoping for the best.

“The worst thing we can do is defer action… that’s why we need to get this right,” Ramage said.

A number of intervenors presented varying responses to Hydro’s push for increased rates, with many focusing on how the hikes would affect Manitobans with lower incomes.

Senwung Luk spoke on behalf of the Assembly of Manitoba Chiefs, and said the proposed rates would hit First Nations reserves particularly hard.

He noted that 44.2 per cent of housing on reserves in the province needs significant improvement, which means electricity use tends to be higher to compensate for the lower quality of infrastructure.

Luk says this problem is compounded by the higher rates of poverty in Indigenous populations, with 76 per cent of children on reserves in Manitoba living below the poverty line.

If the increase goes forward, he said the AMC hopes to see a reduced rate for those living on reserves, despite a recent appeal court ruling on such pricing.

Byron Williams, speaking on behalf of the Consumers Coalition, said the 7.9 per cent increase unreasonably favours the interests of Hydro, and is unjustly biased against virtually everyone else.

In Saskatchewan, the NDP criticized an SaskPower 8 per cent rate hike as unfair to customers, highlighting regional concerns.

Williams said customers using electric space heating would be more heavily targeted by the rate increase, facing an extra $13.14 a month as opposed to the $6.88 that would be tacked onto the bills of those not using electric space heating.

Williams also called Hydro’s financial forecasts unreliable, bringing the 7.9 per cent figure into question.

Lawyer George Orle, speaking for the Manitoba Keewatinowi Okimakanak, said the proposed rate hikes would “make a mockery” of the sacrifices made by First Nations across the province, given that so much of Hydro’s infrastructure is on Indigenous land.

The city of Winnipeg also spoke out against the jump, saying property taxes could rise or services could be cut if the hikes go ahead to compensate for increased, unsustainable electricity costs.

In British Columbia, a BC Hydro 3 per cent increase also moved forward, drawing attention to affordability.

A common theme at the hearing was that Hydro’s request was not backed by facts, and that it was heading towards fear-mongering.

Manitoba Hydro’s CEO begged to differ as he plead his case during the first hearing of a process that is expected to take 10 weeks.

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Russian cyberattacks on U.S. power grid exposed DHS warnings: Dragonfly/Energetic Bear breached control rooms, ICS networks, and could trigger blackouts via switch manipulation, phishing, and malware, threatening critical infrastructure and utility operations nationwide.

Key Points

State-backed breaches of utility ICS and control rooms enabled potential switch manipulation and blackouts.

✅ DHS: Dragonfly/Energetic Bear breached utility networks

✅ Access reached control rooms and ICS for switch control

✅ Ongoing campaign via phishing, malware, lateral movement

Russian hackers for a state-sponsored organization invaded hundreds of control rooms of U.S. electric utilities that could have led to blackouts, a new report says.

The group, known as Dragonfly or Energetic Bear, infiltrated networks of U.S. utilities as part of an effort that is likely ongoing, Department of Homeland Security officials told the Wall Street Journal.

Jonathan Home, chief of industrial-control-system analysis for DHS, said the hackers “got to the point where they could have thrown switches” and upset power flows.

Although the agency did not disclose which companies were impacted, the officials at a briefing Monday said that there were “hundreds of victims” including breaches at power plants across the U.S., and that some companies may not be aware that hackers infiltrated their networks yet.

According to experts, Russia has been preparing for such attacks for some time now, prompting a renewed focus on protecting the grid among utilities and policymakers.

“They’ve been intruding into our networks and are positioning themselves for a limited or widespread attack,” said former Deputy Assistant Defense Secretary Michael Carpenter, now senior director at the Penn Biden Center at the University of Pennsylvania, per the Wall Street Journal. “They are waging a covert war on the West.”

Earlier this year, the Trump administration claimed Russia had staged a power grid hacking campaign against the U.S. energy grid and other U.S. infrastructure.

The report comes after President Trump told reporters last week during a joint press conference in Helsinki alongside Russian President Vladimir Putin that he had no reason not to believe the Russian leader's assurances to him that the Kremlin was not to blame for interference in the election.

Trump later admitted that he misspoke when he said he didn’t “see any reason why” Russia would have meddled in the 2016 election, and said he believes the U.S. intelligence community assessment that found that the Russian government did interfere in the electoral process.

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Maryland Community Solar Program enables renters and condo residents to subscribe to offsite solar, earn utility bill discounts, and support projects across BGE, Pepco, Delmarva, and Potomac Edison territories, with low to moderate income participation.

Key Points

A pilot allowing residents to subscribe to offsite solar and get bill credits and savings, regardless of home ownership.

✅ 5-10 percent discounts on standard utility rates

✅ Available in BGE, Pepco, Delmarva, Potomac Edison areas

✅ Includes low and moderate income subscriber carve-outs

Maryland has launched a pilot program that will allow anyone to power their home with solar panels — even if they are renters or condo-dwellers, or live in the shade of trees.

Solar developers are looking for hundreds of residents to subscribe to six power projects planned across the state, including recently announced sites in Owings Mills and Westminster. Their offers include discounts on standard electric rates.

The developers need a critical mass of customers who are willing to buy the projects’ electricity before they can move forward with plans to install solar panels on about 80 acres. Under state rules, the customer base must include low- and moderate-income residents, many of whom face energy insecurity challenges.

The idea of the community solar program is to tap into the pool of residential customers who don’t want to get their energy from fossil fuels but currently have no way to switch to a cleaner alternative.

That could significantly expand demand for solar projects, said Gary Skulnik, a longtime Maryland solar entrepreneur.

Skulnik is now CEO of Neighborhood Sun, a company recruiting customers for the six projects.

“You’re signing up for a project that won’t exist unless we get enough subscribers,” Skulnik said. “You’re actually getting a new project built.”

It could also stoke simmering conflicts over what sort of land is appropriate for solar development.

The General Assembly authorized the community solar pilot program in 2015. But not-in-my-backyard opposition and concerns about the loss of agricultural land have slowed progress.

Community solar could force more communities to confront those sorts of clashes — and to consider more carefully where solar farms belong.

“We are going to see a lot more solar development in the state,” said Megan Billingsley, assistant director of the Valleys Planning Council in Baltimore County. “One of the things we haven’t seen is any direction or thoughtful planning on where we want to see solar development.”

The General Assembly authorized about 200 megawatts in community solar projects — enough to power about 40,000 households — over three years.

Customers can sign up for projects built within the territory of their electric utility. About half of that solar energy load has been allotted for the region served by Baltimore Gas and Electric Co.

By subscribing to a community solar project, customers won’t actually be getting their electricity from its photovoltaic panels. But their payments will help finance it and, in some cases, complementary battery storage solutions as well.

The Public Service Commission has approved six projects so far: Two in BGE territory, in Owings Mills and near Westminster; one in Pepco territory, in Prince George’s County; two in Delmarva Power and Light territory, in Caroline and Worcester counties; and one in Potomac Edison territory, in Washington County where planning officials have developed proposed recommendations.

More projects are expected to win approval in the next two years.

But none of them can be built unless they catch on with electricity customers. The developers are looking for 2,600 customers statewide.

Skulnik would not say how many customers an individual project needs to get the green light. But he said that the Prince George’s proposal, a 25-acre array atop a Fort Washington landfill is the closest, with about 100 subscribers so far.

The terms of subscription vary by project, but discounts range from 5 percent to 10 percent off utility rates. Customers are asked to commit to the projects for as long as 25 years. (They can break the contracts with advance notice, or if they move to a different utility service area.)

Maryland joins more than a dozen states in advancing community solar projects, as scientists work to improve solar and wind power technology.

Corey Ramsden is an executive for Solar United Neighbors, a nonprofit that promotes the solar industry in eight states and the District of Columbia.

He said potential customers are often confused by the mechanics of subscribing to community solar, or hesitant to commit for years or even decades. The industry is working to answer questions and get people more comfortable with the idea, he said.

But it has been a challenge across the country, including debates over New England grid upgrades, and in Maryland. Advocates for solar say there is broad support for renewable energy generation. The state has set goals to increase green energy use and reduce greenhouse gas emissions.

Still, many Marylanders don’t welcome the reality when a project attempts to move in.

Rural land is often the most desirable for solar developers, because it requires the least effort to prepare for an array of panels. But community groups in those areas have asked whether land historically used for farming is right for a more industrial use.

“People are very much in favor of going for a lot more renewables, for whatever reason,” said Dru Schmidt-Perkins, the former president of the land conservation group 1,000 Friends of Maryland. “That support comes to a screeching halt when land that is perceived to be valuable for other things, whether a historic view­shed or farming, suddenly becomes a target of a location for this new project.”

Such concerns have at least temporarily stalled the momentum for solar across the state. Anne Arundel County had at least five small community solar projects in the pipeline in December when officials decided to pause development for eight months. Baltimore County officials imposed a four-month moratorium on solar development before passing an ordinance last year to limit the size and number of solar farms.

Billingsley said the Valley Plannings Council, which advocates for historic and rural areas in western Baltimore County, is frustrated that there hasn’t been more discussion about which areas the county should target for solar development — and which it shouldn’t.

She said she fears that pressure to expand solar farms across rural lands is only going to grow as community solar projects launch, and as lawmakers in Annapolis talk about more policies to promote investment in renewable energy.

Schmidt-Perkins called community solar “an amazing program” for those who would install solar panels on their roofs if they could. But she said its launch heightens the importance of discussions about a broader solar strategy.

“Most communities are caught a little flat-footed on this and are somewhat at the mercy of an industry that’s chomping at the bit,” she said. “It’s time for Maryland to say, ‘Okay, let’s come up with our plan so that we know how much solar can we really generate in this state on lands that are not conflict-based.’”

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Substation Automation Services help electric utilities modernize through integration, EPC engineering, protective relaying, communications and security, with CAPEX and OPEX insights and a growing global market for third-party providers worldwide rapidly.

Key Points

Engineering, integration, and EPC support modernizing utility substations with protection, control, and secure communications

✅ Third-party engineering, EPC, and OEM services for utilities

✅ Integration of multi-vendor devices and platforms

✅ Focus on relays, communications, security, CAPEX-OPEX

The Newton-Evans Research Company has released additional findings from its newly published four volume research series entitled: The World Market for Substation Automation and Integration Programs in Electric Utilities: 2017-2020.

This report series has observed four major types of professional third-party service providers that assist electric utilities with substation modernization. These firms range from (1) smaller local or regional engineering consultancies with substation engineering resources to (2) major global participants in EPC work, to (3) the engineering services units of manufacturers of substation devices and platforms, to (4) substation integration specialist firms that source and integrate devices from multiple manufacturers for utility and industrial clients, and often provide substation automation training to support implementation.

2016 Global Share Estimates for Professional Services Providers of Electric Power Substation Integration and Automation Activities

The North American market report (Volume One) includes survey participation from 65 large and midsize US and Canadian electric utilities while the international market report (Volume Two) includes survey participation from 32 unique utilities in 20 countries around the world. In addition to the baseline survey questions, the report includes 2017 substation survey findings on four additional specific topics: communications issues; protective relaying trends; security topics and the CAPEX/OPEX outlook for substation modernization.

Volume Three is the detailed market synopsis and global outlook for substation automation and integration:

Section One of the report provides top-level views of substation modernization, automation & integration and the emerging digital grid landscape, and a narrative market synopsis.

Section Two provides mid-year 2017 estimates of population, electric power generation capacity, transmission substations, including the 2 GW UK substation commissioning as a benchmark, and primary MV distribution substations for more than 120 countries in eight world regions. Information on substation related expenditures and spending for protection and control for each major world region and several major countries is also provided.

Section Three provides information on NGO funding resources for substation modernization among developing nations.

Section Four of this report volume includes North American market share estimates for 2016 shipments of many substation automation-related devices and equipment, such as trends in the digital relay market for utilities.

The Supplier Profiles report (Volume Four) provides descriptive information on the substation modernization offerings of more than 90 product and services companies, covering leading players in the transformer market as well.

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