In December 2014, the EPA finalized a rule that nationally establishes minimum criteria for the safe disposal of coal combustion residuals (CCRs) in landfills and surface impoundments. The rule establishes requirements for both existing and new CCR landfills and surface impoundments, including lateral expansions of any existing unit (expansions of existing landfills).
On January 6, 2015, National Grid and NStar terminated power purchase agreements (PPAs) with Cape Wind, a proposed 468 MW offshore wind facility in the Nantucket Sound. The future of the project is uncertain, as Cape Wind has yet to secure financing to begin construction. Obtaining project financing will now be extremely difficult, if not impossible, with the loss of the PPAs.
On December 29, 2014, Entergy permanently shut down the reactor at its 604.3 MW Vermont Yankee nuclear generating plant located in Vernon, Vermont. Though the facility was licensed to operate until 2032, it was closed for economic reasons, specifically “… sustained low natural gas prices and wholesale energy prices caused by a transformational shift in supply due to the impacts of shale gas.”
In November 2014, the Minnesota Department of Commerce released an engineering study that concludes Minnesota can reliably integrate renewable energy to meet 40% of annual retail sales by 2028. This scenario would require $373 million in transmission investments beyond current transmission expansion and upgrade plans.
On October 21, 2014, the American Council for an Energy-Efficient Economy (ACEEE) released the eighth edition of the State Energy Efficiency Scorecard. The report provides an annual benchmark of the progress of state energy efficiency policies and programs. The report estimates total energy efficiency budgets were $7.7 billion in 2013; this figure includes $6.3 billion for electricity efficiency programs and $1.4 billion for natural gas program budgets.
In August 2014, the U.S. Department of Energy (DOE) released the sixth iteration of the Energy Savings Forecast of Solid-State Lighting in General Illumination Applications. The study provides predictions on light-emitting diodes (LED) market penetrations and energy savings compared to conventional lighting. The DOE forecasts LED lighting will represent 84% of all sales by lumen-hours in 2030 (compared to 3% in 2013) and reduce energy consumption in the lighting sector by 40% compared to a “no-LED” scenario.
Since the May 2014 decision by the DC Court of Appeals (“EPSA decision” or “EPSA”), which vacated FERC Order No. 745 mandating that RTOs and ISOs compensate demand response resources at the same locational marginal price (LMP) as other energy products, a number of parties have advocated differing positions on how demand response should be handled. Most recently,
Continue reading
The Energy Information Administration recently reported that energy-related carbon dioxide emissions in the United States declined 15% in absolute terms from 2005 to 2013. Emissions were 27% lower in 2013 than were projected (based on 2005 demand growth and carbon intensity trends). Three fundamental changes in the electric power sector are driving the reductions: declining demand growth, ongoing switch from coal to less-carbon-intensive natural gas, and growth in non-carbon generation (e.g., solar and wind).
In September 2014, Lazard published its annual levelized cost of energy (LCOE) report. The analysis calculates the LCOE of renewable technologies in the absence of subsidies, such as the federal Investment Tax Credit or the Production Tax Credit. Lazard finds the LCOE of wind and utility-scale solar PV is competitive with coal and becoming competitive with combined cycle natural gas.
On September 24, 2014, Southern California Edison (SCE) unveiled the Tehachapi Energy Storage Project, the largest battery energy storage system (BESS) in North America. The 32-MWh demonstration project will use lithium-ion batteries to evaluate the ability of BESSs to improve grid performance and assist in the integration of large-scale variable renewable energy resources like wind and solar power.
On August 26, 2014, the Hawaiian Electric Companies (HECO) submitted updated integrated resource plans to the Hawaii Public Utilities Commission (PUC). The resource plans for Hawaii Electric Light, Hawaiian Electric Power, and Maui Electric call for a resource mix by 2030 with nearly triple the current rooftop solar capacity and an overall generation mix of more than 65% energy from renewable resources. HECO anticipates the plans will reduce customer bills by 20%.
Policy makers and utility company executives have put out a call for more sophisticated rate designs to address the growing disconnect between the evolving grid and traditional residential and commercial rate structures. With the growing adoption of Distributed Energy Resources (DERs), regulators and utility companies are faced with taking a more creative approach to electricity pricing.
Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.
