Energy & Utilities – Page 10 – Global Power Law & Policy

FERC Finds ISO New England’s Formula Rates and Accompanying Tariff Provisions to be Unjust and Unreasonable

Jan 05 2016

On December 28, 2015, the Federal Energy Regulatory Commission (“FERC”) issued an order pursuant to Section 206 of the Federal Power Act (“FPA”)[1] finding that the ISO New England Inc.’s Transmission, Markets and Service Tariff (“Tariff”) is unjust, unreasonable, and unduly discriminatory or preferential. FERC’s determination was based on a finding that the Tariff lacks formula rate protocols and, by extension, lacks adequate transparency and challenge procedures with regard to the formula rates used by the ISO New England Participating Transmission Owners (“PTOs”).[2] FERC also found that the formula rates themselves may be unjust and unreasonable or otherwise unlawful because the formula rates appear to lack sufficient detail to accurately determine how certain costs are derived and recovered.

FERC Proposes Rule That Would Require Wind Generators to Provide Reactive Power as a Condition of Interconnection

Nov 24 2015

In a Notice of Proposed Rulemaking issued on November 19, 2015, the Federal Energy Regulatory Commission (the “Commission”) proposed to eliminate the exemption currently available to wind generators from the requirement to provide reactive power.[1] The proposed rule would require that all newly interconnecting synchronous and non-synchronous generators, including wind generators, provide reactive power pursuant to the terms of their interconnection agreements. Additionally, any existing wind generators will be required to provide reactive power if they propose facility upgrades requiring a new interconnection request. Comments on the NOPR are due by the end of January 2016.

Alabama Power Authorized to Procure 500 MW of Renewables

Oct 05 2015

The Alabama Public Services Commission (the “PSC”) has granted a petition filed by Alabama Power Company (“Alabama Power”) for a certificate of convenience and necessity to develop or procure 500 megawatts of capacity and energy from “renewable energy and environmentally specialized generating sources.” Docket No. 32382 (July 16, 2015) (order). The authorization will expire six years from the date of the order and includes several limitations, including a 30-day review process for each project submitted under the order to ensure that the project meets the specified eligibility criteria.

WUTC Investigation Shines the Spotlight on How to Value Energy Storage – Comments Due September 25, 2015

Sep 14 2015

The Washington Utilities and Transportation Commission (the “WUTC”) is in the midst of an investigation into methods for modeling the costs and benefits of energy storage in utility integrated resource plans (“IRPs”). During its review of the 2013 IRPs of Washington’s regulated utilities (Puget Sound Energy (“PSE”), Avista, and PacifiCorp), the WUTC directed the utilities to start considering how energy storage could be incorporated into future IRPs. As part of this effort, WUTC staff issued a white paper in May 2015: Modeling Energy Storage, Challenges and Opportunities for Washington Utilities. On August 7, the WUTC noticed a comment period on the white paper; the comment period closes on September 25, 2015. The WUTC will use the comments received during this period to determine whether it is necessary to give utilities direction on how energy storage should be treated in their planning and procurement processes, and may issue a policy statement at the end of the investigation to provide that guidance.

OPUC reschedules Community Solar Workshop 2 for September 22, 2015

Sep 09 2015

The second workshop in the Oregon Public Utility Commission (the “Commission”) Docket No. UM 1746 (HB 2941 Community Solar Program Design) has been rescheduled from Wednesday, September 23rd to Tuesday, September 22. The workshop was rescheduled in order to accommodate stakeholders who observe Yom Kippur and to encourage stakeholder participation.

Duke Energy Issues RFPs for Distributed Energy Resource Program

Aug 31 2015

Duke Energy Carolinas and Duke Energy Progress (collectively, Duke) recently issued two requests for proposals (RFPs) as part of the implementation of Duke’s Distributed Energy Resource Program (DERP). The DERP, which was developed pursuant to South Carolina’s Distributed Energy Resource Act of 2014 (Act 236), was approved by the South Carolina Public Service Commission earlier this year. (See more information about Duke’s program.)

Georgia Allows Third Party Ownership (TPO) of Solar

Aug 14 2015

Recently, Georgia Governor Nathan Deal signed into law House Bill 57, known as the Solar Power Free-Market Financing Act of 2015 (the Solar Power Act). The Solar Power Act, which both houses of the state’s General Assembly passed unanimously, allows homes and businesses to install solar technology under third party ownership (TPO). Although it sailed through the General Assembly, the Solar Power Act is the product of detailed negotiations and compromise between lawmakers, electric service providers, and consumers. The introduction of TPO through the Solar Power Act is expected to provide a significant boost to the residential and commercial solar markets in Georgia. Read More

A new model for clean energy: Community solar gardens

Jul 31 2015

Declining prices for solar equipment and generous government incentives have broadened the appeal of community solar gardens. Community solar gardens, which are arrangements in which multiple users invest in and benefit from a solar array, provide a simple and cost-effective means for power consumers to acquire clean energy without having to bear the entire cost of purchasing or leasing a solar array. According to GTM Research, the community solar market is forecasted to grow fivefold in 2015.

For a variety of reasons, most energy consumers cannot own or lease a solar array—for example, they may not control the rights to their roof or their roof may be physically unsuitable. Community solar gardens offer these consumers the opportunity to invest in an offsite, local solar array in exchange for reductions in their energy bills. This new model expands consumer access to solar energy while also conferring a host of ancillary benefits.

This alert outlines the foundation of community solar gardens and describes their main legal considerations. While this alert cannot describe all the legal issues of community solar gardens nationwide, it covers common federal and state law issues that individuals involved with community solar gardens should anticipate.

Read the full alert here on K&L Gates Hub.

Oregon Moves Ahead on Energy Storage

May 26 2015

The Oregon Department of Energy (ODOE) recently announced that in June 2015 it will issue a request for proposals (RFP) for an electrical energy storage demonstration project. The U.S. Department of Energy will make $250,000 in federal funding available for the selected project, and ODOE and Oregon BEST will supply an additional $45,000. The RFP is intended to incent 500 kW or larger storage projects that “improve electric transmission and/or distribution system operations, service quality, and reliability.” The RFP will be technology neutral, and ODOE hopes to receive bids from “utilities, energy storage technology vendors, energy service suppliers and electric utility customers.” Applicants will need to have either a “committed utility partner” or a letter of support from the utility with which the project will interconnect—potential bidders may want to begin laying the groundwork for those arrangements pending the RFP’s issuance. The recipient of the award will be expected to provide a minimum 50% cost share and will need to “start” the project in 2015. (ODOE’s press release does not explain what will be required to “start,” and presumably the RFP will address that question.)

ODOE’s press release can be found here. The RFP announcement will appear on ODOE’s energy storage web site in June.

This announcement comes hard on the heels of news that the Oregon Senate Business and Transportation Committee passed H.B. 2193 out to the full Senate following a hearing on May 20. The proposed legislation would direct electric companies, if authorized by Oregon’s Public Utility Commission, to procure certain energy storage systems. The bill passed the Oregon House by a vote of 58-2. We’ll report on the final version of the bill if it is enacted, which seems likely—in the meantime, a summary of an earlier version of the legislation can be found here.

FERC Issues Rule to Reduce Regulatory Burdens for Generators That Own Generator Tie-Lines

Apr 30 2015

I. Introduction

Last month, the Federal Energy Regulatory Commission (“FERC”) issued its final rule on Open Access and Priority Rights on Interconnection Customer’s Interconnection Facilities (“Order No. 807” or “Final Rule”)[1]. Order No. 807 is intended to reduce the regulatory burdens for generators that own generation tie-lines (referred to in the Final Rule as “Interconnection Customer’s Interconnection Facilities” or “ICIF”)[2], and to promote the development of generation resources. The Final Rule makes three significant changes to the treatment of ICIF under FERC’s regulations. First, it establishes a blanket waiver of the Open Access Transmission Tariff (“OATT”), Open Access Same-Time Information System (“OASIS”) and the Standards of Conduct requirements for all ICIF owners who in the past were subject to such requirements solely as a result of their ownership of ICIF. Second, the Final Rule requires that all third-party requests for service on ICIF eligible for the blanket waiver be made pursuant to Sections 210, 211 and 212 of the Federal Power Act (“FPA”). Finally, the Final Rule establishes a five-year safe harbor period during which ICIF owners who are eligible for the blanket waiver will benefit from a rebuttable presumption that they or their affiliates have definitive plans to use any excess capacity available on the ICIF.

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