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Archived Utility Notes
Published in 2020
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Federal Ruling Calls Into Question Ohio's Nuclear Plant Subsidies
by Dan Shingler
Federal regulators have taken issue with Ohio's subsidies for the Davis-Besse and Perry Nuclear plants — and may shut the plants out of the power grid's capacity auctions.
As a result of a Dec. 19 ruling by the Federal Energy Regulatory Commission (FERC), manufacturers and power experts say the windfall of 2019's HB6, which provides about $150 million per year in subsidies to the plants, will be blunted, if not wiped out completely.
"The FERC order tips House Bill 6 on its head," reads a statement provided by the Ohio Manufacturers' Association, which did a study of the ruling.
The OMA study was completed Jan. 30 by Columbus-based RunnerStone, OMA's energy technical consultant. It contends the actions of Ohio to subsidize the money-losing nuclear power plants helped to trigger FERC's action, which in turn puts those same plants at new risk.
Read full story at Crains Cleveland Business…
first published week of: 02/10/2020
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'Most Dangerous and Capable' Hacking Group Now Targeting Electric Sector, Dragos Report Finds
by robert walton
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Dragos' report doesn't attempt to link any of the hacking groups to nation states or specific actors, but does conclude electric sector attacks "can further an adversary's criminal, political, economic, or political goals." And as the groups invest more resources into developing hacking capabilities, "the risk of a disruptive or destructive attack ... significantly increases."
The electric sector has been on high alert this week, over concerns that escalating tensions between the United States and Iran could lead to a cyberattack.
Attacks on electric utilities can have "significant geopolitical, humanitarian, and economic impact. Thus, state-associated actors will increasingly target power and related industries like natural gas to further their goals," Dragos' report warns.
The report notes hackers are now targeting original equipment manufacturers, third-party vendors and telecommunications providers to create supply-chain compromises. Other security experts say this is a particular weakness for the industry.
Read full story at Utility Dive…
first published week of: 01/13/2020
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5 Technologies Propelling the Energy Transition
by Utility Dive Editors
As states continue efforts to pursue clean energy targets, new technologies are emerging to help usher sweeping changes.
Utility Dive spoke with a wide array of experts to identify five key technologies that will propel the power sector's transformation: green hydrogen, distributed energy aggregation, transmission development, fine-tuning wind and solar power, and power sector digitization.
This series is focused on technologies that could strengthen the grid, increasing reliability and making clean energy more affordable and available. Such developments are crucial to deploying higher levels of renewable energy onto the grid.
Energy markets are signaling interest in smarter applications of clean energy, by utilizing big data solutions in distributed or utility-scale renewable energy systems.
Read full story at Utility Dive…
first published week of: 08/31/2020
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FERC Launches Long-Delayed Revision of Transmission Incentives, Bringing Benefits Into the Equation
by Iulia Gheorghiu
All three FERC commissioners agree on the importance of upgrades to transmission incentives, but Glick said the comment period should be extended to 120 days.
"Suffice it to say, utilities and other interested parties have more important things on their plate at the moment," he wrote.
Regarding responses to the novel coronavirus, Glick believes FERC should extend deadlines and create more flexibility during this difficult period for other regulatory processes as well.
Chairman Neil Chatterjee wants to "keep the business of the commission going," though he added FERC expects requests for deadline extensions on some of its processes, as stakeholders need to prioritize a response to the spread of COVID-19.
Read full story at Utility Dive…
first published week of: 04/06/2020
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A Blow to Small Solar, a Win for States and Utilities?
by catherine morehouse
Regulators, analysts assess FERC's PURPA rule
Changes to the way a 40-year-old federal law is implemented could significantly benefit vertically-integrated utilities in non-competitive markets, while harming small-scale solar developers, stakeholders told Utility Dive.
"In my view, this recent FERC order is mostly in line with the changes that the electric utilities requested," Metin Celebi, a principal at Brattle, told Utility Dive."However, the impact on the renewable developers will really depend on how each particular state will choose among the options provided in the FERC order."
Critics say states' ability to set prices paid to small solar at varying levels with no guaranteed long-term contract could allow some to set policies that harm independent power producers.
Read full story at Utility Dive…
first published week of: 08/03/2020
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A Closer Look at Power-to-Gas Technologies
by Yoana Cholteeva
Power outages could affect the energy grid at any time and cause severe damage, but what are the backup options capable of maintaining consistent energy supplies? Yoana Cholteeva take a look at the power-to-gas method.
With back-up power typically generated by fuel-operated peaker plants, the industry has been on the search for more environmentally friendly backup sources, which could also react quickly if the regular power stream is interrupted.
As Ed Reid, head of strategy for Centrica Business Solutions says: “The latest gas turbine technology is designed for maximum efficiency and natural gas is likely to play a key role in backing up intermittent renewable power generation over the next 10 to 15 years.”
Recent demands have led to an elevated interest in power-to-gas technologies partially operating with traditional fuels as well as batteries.
What do power-to-gas technologies have to offer?
The short term operating reserve market has until recently mainly relied on fuel-generated back-up sources, but the use of combined power-to-gas technologies seems to be a promising and sustainable alternative.
While this method has existed since the nineteenth century and experimental pilot plants were developed in the 1990s, the potential for commercial deployment has only come to the foreground in the last five years.
As power-to-gas engines convert surplus renewable energy into hydrogen gas by electrolysis, splitting water into hydrogen and oxygen, then the generated hydrogen can be conveniently used as a back-up energy source.
Read full story at Power Technology…
first published week of: 04/27/2020
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AEP to Switch 100% of Cars and Light-Duty Truck Fleet to Electric Vehicles by 2030
by AEPPress Release
American Electric Power announced that it will accelerate its electric vehicle purchases with the goal of replacing 100% of its 2,300 cars and light-duty trucks with EV alternatives by 2030. AEP’s total fleet is composed of nearly 8,000 vehicles, including medium- and heavy- duty vehicles. By converting medium- and heavy-duty vehicles as electric or hybrid models become available, AEP will achieve its goal of electrifying 40% of its entire on-road vehicle fleet in less than 10 years
“AEP has made great progress in reducing the carbon dioxide output of our power generation fleet, cutting emissions by 65% since 2000 and setting a goal to achieve a more than an 80% reduction, and aspiring to be net-zero, by 2050,” said Nicholas K. Akins, AEP chairman, president and chief executive officer. “Through our commitment to transitioning to electric vehicles, we will cut tailpipe emissions, reduce operating costs, and encourage other companies that rely on large vehicle fleets to switch to battery or hybrid vehicles.”
AEP estimates that it will avoid using more than 10 million gallons of fuel, amounting to a $40 million savings in fuel costs over the life of the vehicles.
AEP has made great progress in reducing the carbon dioxide output of our power generation fleet, cutting emissions by 65% since 2000 and setting a goal to achieve a more than an 80% reduction, and aspiring to be net-zero, by 2050 Nicholas K. Akins, AEP chairman, president and chief executive office
Transitioning light-duty vehicles to EVs has been part of AEP’s fleet strategy and will now become the standard across its subsidiaries. AEP will begin to transition medium- and heavy-duty vehicles, as well as off-road equipment, as electric and hybrid alternatives become available. In addition, AEP will electrify 50% of its forklifts by 2030.
Encouraging the Switch to EVs
AEP’s fleet currently consists of 85 EVs, and employees are able to utilize more than 230 charging ports installed at locations throughout its 11-state service territory.
AEP is also working with customers and communities to share the benefits of electric transportation and support EV adoption. The company has created programs, such as incentives for charging station installations, off-peak charging programs, energy efficiency rebates, and consultative services to encourage electrification.
Read full story at AEP…
first published week of: 11/16/2020
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Alabama Power Ranks Highedst in Customer Digital Experience; Utilities Lag Behind Other Industries
by TD World
Editor's note: As a long time customer of Alabama Power, I totally agree.
Utilities are among the lowest-performing industry groups when it comes to delivering distinct digital customer experiences, but some pioneers have found the secret to digital success, according to the J.D. Power 2018 Utility Digital Experience Study.
The inaugural study evaluates customer perceptions of the websites, mobile apps, social, chat, email and text functions of the 67 largest electric, natural gas and water utilities in the United States. It is the first-ever J.D. Power customer satisfaction study to incorporate biometric analyses (which tracks eye movements, facial emotions and voice tone), video verbatim interviews and detailed surveying to extract real-world customer perceptions. The study was conducted in collaboration with Centric Digital, a leader in measuring and navigating digital transformations. Centric Digital is contributing an expert assessment to the study, including industry benchmarking, digital experience analysis and cross-industry insights.
“Consumers have grown accustomed to receiving up-to-the-minute alerts on the status of at-home deliveries and being able to make checking account deposits with the cameras on their phones, but interacting with their utilities—whether to check usage, pay a bill or report an outage—often seems like a step back into the dark ages of technology,” said Andrew Heath, Senior Director of the Utilities Practice at J.D. Power. “Utilities know this is a problem, and many have put in place initiatives to address it. But, until now, there hasn’t been a reliable playbook for what works. By probing deeper than ever before into real-world customer interactions with their utility’s digital platform, we’ve been able to spotlight best practices.”
Following are some of the study’s key findings:
... Standouts are emerging: ... The highest-ranked utility in the study, Alabama Power, has a J.D. Power customer satisfaction score of 879, which is a significant 40 points higher than industry average.
Read full story at TD World…
first published week of: 07/20/2020
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Alliant Energy Announces Plans To Shutter Edgewater Coal Plant
by Danielle Kaeding
Announcement Follows Plans To Invest 1K Megawatts Of Solar By 2023
Madison-based Alliant Energy announced Friday it's shuttering its roughly 400-megawatt Edgewater coal plant in Sheboygan by the end of 2022.
The utility said in a news release the move is being made to align with the company's plans to deliver "cleaner, more cost-effective energy."
"Closing the coal-generating facility is necessary as we transition towards more renewable energy resources, such as solar," said David de Leon, president of Wisconsin Power and Light, a subsidiary of Alliant.
Alliant announced last fall its plans to generate up to 1,000 megawatts of solar by the end of 2023, which would power about 260,000 homes. The company said the decision to shutter the plant was part of a year-long process and the next phase in transitioning to renewable energy.
Alliant has around 3,600 employees, and about 80 workers will be impacted by the closure. About 40 percent of employees are eligible for retirement, and the company plans to provide career assistance to employees, including tuition reimbursement and resume-writing.
Read full story at Wisconsin Public Radio…
first published week of: 06/01/2020
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Amazon Commits to Five New Utility-Scale Solar Projects
by ben moore
Amazon has committed to five new renewable energy projects in China, Australia and the U.S. that further support Amazon’s commitment to reach 80% renewable energy by 2024 and 100% renewable energy by 2030 (and potentially as early as 2025), as well as to reach net-zero carbon by 2040.
Amazon profits have skyrocketed during the COVID-19 pandemic as consumers have moved their purchasing online.
The company has come under steady criticism over the last several years for the working conditions in its fulfilment centres and refusal to provide paid sick leave to employees during the pandemic which, astoundingly, is still not a right for the majority of US Americans.
As Jeff Bezos has risen to the top of the wealthiest people list, this juxtaposition of his own net worth and what the company provides to employees is largely the cause of this widespread disapproval.
Amazon’s first renewable energy project in China is a 100 megawatt (MW) solar project in Shandong. Once complete, the project is expected to generate 128,000-megawatt-hours (MWh) of clean energy annually.
Amazon’s second renewable energy project in Australia is a 105 MW solar project in New South Wales.
This project will have the capacity to generate 250,000 MWh of clean energy each year, which is enough to power the equivalent of 40,000 average Australian homes.
Amazon’s newest renewable energy projects in the U.S. include two new projects in Ohio, a 200 MW solar project and an 80 MW solar project.
Read full story at Data Center News…
first published week of: 06/01/2020