Our August 2022 Power Generation & Supply Market Recap is a snapshot of the data and information we curate. We share industry drivers, notable projects, recent mergers and acquisitions, interesting reads, and updates on upcoming meetings and conferences.
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Industry Drivers
Our data team tracks new and updated industry drivers. Here are some recent drivers we have been following this month:
Offshore Wind Energy Development off the California Coast
Status: Effective
Organization: California Energy Commission
Summary: On August 10, 2022, California Energy Commission (CEC) adopted a report establishing offshore wind goals to generate clean energy off California coastal areas. The CEC plans to develop 2,000 - 5,000 megawatts (MW) offshore wind power by 2030 and 25,000 MW by 2045. The CEC has prepared the report in coalition with federal, state, and local agencies and other stakeholders. In addition, the CEC will submit a report to the California Legislature by June 2020 concerning the economic benefits of offshore wind. The CEC has approved $10.5 billion in renovating offshore wind activities at the Port of Humboldt Bay.
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Missouri PSC Lets Algonquin Power Utility Securitize $290M in Coal Retirement, Winter Storm Uri Costs
Status: Effective
Organization: Missouri Public Service Commission (PSC)
Summary: On August 18, 2022, the Missouri Public Service Commission (PSC) approved the request of Algonquin Power & Utilities Corp. (AQN) and Empire District Electric Co. (EDN) to securitize utility tariff bonds. The bonds will be used to recover qualified extraordinary costs and energy transition costs under the enacted securitization law. The AQN will be able to securitize $290 million in costs from Winter Storm Uri and shut down its coal-fired power plant early. The EDE will be able to recover $81.2 million from the early retirement of its 200 megawatts (MW) coal-fired Asbury plant, plus $7.9 million in financing costs, as well as approximately $200 million in costs from Winter Storm Uri.
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California Legislature Approves Two-Year Extension for Solar Project Tax Exclusions
Status: Effective
Organization: California State Legislature
Summary: On August 23, 2022, the California State Legislature passed a bill to extend the exclusion of property tax for solar projects by two years. The bill would encourage and provide incentives for the development of active solar energy systems by extending the property tax exclusion through the 2025-2026 fiscal year and will remain effective until January 1, 2027. The bill puts California at the top to be a zero-emission and environmentally friendly state while driving more than $70 billion in the state’s economy.
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California Moves to Accelerate to 100% New Zero-Emission Vehicle Sales by 2035
Status: Effective
Organization: California Air Resources Board (CARB)
Summary: On August 25, 2022, the California Air Resources Board (CARB) approved the “Advanced Clean Car II” rule that accelerates the move of completely banning gasoline-powered vehicles by 2035 in California. The rule sets an aggressive year-by-year road map so all new cars and light trucks sold in California will be zero-emission vehicles (ZEV) and environmentally friendly by 2035. CARB sets an intermediate goal of 35% ZEV on automakers by the year 2026, increasing to 68% by 2030 and reaching 100% by 2035. In addition, the legislature has appropriated $2.7 billion for the fiscal year 2022-2023 and $3.9 billion over three years for investment in ZEV adoption and clean mobility options.
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New England Power Pool Participants Committee and Participating Transmission Owners Administrative Committee Order Accepting Tariff Revisions
Status: Effective
Organization: Federal Energy Regulatory Commission (FERC)
Summary: On August 26, 2022, Federal Energy Regulatory Commission (FERC) issued an order accepting proposed revisions to the transmission, markets, and service tariff to change the existing minimum offer price rule (MOPR) in the forward capacity market (FCM). The proposal was jointly submitted by ISO New England Inc. (ISO-NE) and the New England Power Pool Participants Committee (NEPOOL). These revisions institute an interim transition mechanism to phase out the MOPR rules for the ISO-NE’s 2022 and 2023 capacity auctions. The transition mechanism will be replaced by MOPR reforms in 2024, abolishing MOPR for the most capacity auction entrants and eliminating the currently applied bid mitigation on state-sponsored renewable resources. The approved mechanism applies to new or increased generation of at least 5 megawatts (MW).
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Notable Projects
We track notable projects from the proposal stage to becoming effective. Here are some of the recent notable projects we have been tracking.
$7.3 Billion Atlantic Shores Offshore Wind
Type: Generation - Offshore Wind
Status: Proposed
Organization: Atlantic Shores Offshore Wind, LLC
Region: New Jersey
Summary: On June 30, 2021, New Jersey Board of Public Utilities awarded Atlantic Shores Offshore Wind, LLC, a 50:50 partnership between EDF Renewables, Inc. and Shell New Energies US, to develop the Atlantic Shores Offshore Wind Project. The Project is a 1,510-megawatt (MW) offshore wind energy, approximately 20 miles off the coast of New Jersey, between Atlantic City and Barnegat Light. The construction will commence in 2026 and is expected to be completed in 2028. According to Power Technology, the Atlantic Shores Offshore Wind Project will cost $7.3 billion, bringing $848 million in guaranteed local economic benefits to New Jersey.
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$5.5 Billion Ocean Wind II Project
Type: Generation - Onshore Wind
Status: Proposed
Organization: Ocean Wind II, LLC
Region: New Jersey
Summary: Ocean Wind II, LLC submitted filings on July 30, 2021, to the New Jersey Public Utilities Commission for the proposed Ocean Wind II Project. The Project is a new 1,200-megawatt (MW) offshore wind facility on approximately 160,000 acres of New Jersey coastline. The construction will start in 2028 and is expected to be completed in 2029, costing $5.5 billion.
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$3.9 Billion Park City Wind Project
Type: Generation - Offshore Wind
Status: Proposed
Organization: Avangrid, Inc.
Region: Connecticut
Summary: On August 19, 2020, Avangrid, Inc. submitted filings to the Connecticut Public Utilities Commission for the proposed Park City Wind project in the Atlantic Ocean, Connecticut, with 18.3 acres of site area. The project is an offshore wind project with a capacity of 804 megawatts (MW) at least 22 miles off the coast of Massachusetts. The project is being developed by Vineyard Wind and is co-owned by Avangrid Renewables and Copenhagen Infrastructure Partners KS with a 50% share each. The construction will start in 2024 and is expected to be completed in 2025. According to Power Technology, the Park City Wind Project will cost $3.9 billion.
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$2.8 Billion Seminoe Pumped Storage Project
Type: Generation - Hydro - Pumped Storage; Transmission - New
Status: Proposed
Organization: Black Canyon Hydro, LLC
Region: Wyoming
Summary: On June 6, 2022, Black Canyon Hydro, LLC described the proposed Seminoe Pumped Storage Project in Carbon County, Wyoming. The project will consist of a lower and an upper reservoir. The existing U.S. Bureau of Reclamation Seminoe Reservoir will serve as the lower reservoir, and the upper reservoir will support the 972-megawatt (MW) pumped storage facility exhibiting approximately 1,000 feet of head. Other features of the Project include a vertical shaft, underground water conveyance tunnels, a powerhouse with generator step-up, a switchyard, two 500-kilovolt (kV) transmission line circuits, an outdoor grid connection, and access roads and tunnels, a transmission cable tunnel, and other appurtenant facilities. The Project will also include a transmission line. The power input and evacuation will be by two 500 kV circuits from the underground gas-insulated switchgear, through the low-level cable tunnel, up the cable shaft to a take-off structure at the surface, and thence via two separate 500 kV overhead primary transmission lines extending to the 500 kV interconnection at Aeolus Substation, approximately 30 miles to the southeast of the project. The construction will start on October 1, 2026. It will be in service on September 30, 2031, with an estimated project cost of $2.8 billion for the hydroelectric pumped storage and $31 million for the transmission line.
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$1 Billion Oak Run Solar Project
Type: Generation - Solar
Status: Proposed
Organization: Oak Run Solar Project, LLC
Region: Ohio
Summary: Oak Run Solar Project, LLC plans to construct the proposed Oak Run Solar Project in Ohio. The Project will be one of the largest solar farms in the United States, in Madison County. It will be a 10,000-acre solar farm in the north of London near Plumwood. The construction will start on January 1, 2024, with an estimated cost of $1 billion.
Contact FirmoGraphs to See the Document
$762 Million Young Wind Project
Type: Generation - Wind
Status: Proposed
Organization: Oak Run Solar Project, LLC
Region: Texas
Summary: Oak Run Solar Project, LLC plans to construct the proposed Oak Run Solar Project in Ohio. The Project will be one of the largest solar farms in the United States, in Madison County. It will be a 10,000-acre solar farm in the north of London near Plumwood. The construction will start on January 1, 2024, with an estimated cost of $1 billion.
Contact FirmoGraphs to See the Document
$500 Million Grayson Repowering Project
Type: Decommission
Status: Proposed
Organization: Stantec Consulting Services, Inc.
Region: California
Summary: On 6 August, 2021, Stantec Consulting Services, Inc., submitted Partially Recirculated Draft Environmental Impact Report to City of Glendale Water and Power on Grayson Repowering Project. The project is a power plant repowering project that removes 219 MW of aging and inefficient generation equipment and replaces it with approximately gross 262 MW, state-of-the-art modern equipment. The Project is located within an industrial area of the City of Glendale, at 800 Air Way, Glendale, California 91201, just northeast of the Interstate 5 and Highway 134 interchange. The project is valued at an estimated $500 Million. The construction for the proposed project is expected to commence in March 2023, with an expected completion date in December 2024.
Contact FirmoGraphs to See the Document
Notable M&A
The following M&A transactions in the Power Generation and Supply Industry stand out in the month of August:
- On August 3, 2022, Berkshire Hathaway Energy announced that it will purchase 399 MW of wind generation in Montana from NaturEner.
- On August 9, 2022, Evergy announced that it will acquire 199 MW Persimmon Creek Wind Farm for $250 million.
What We Are Reading
Here are some recent articles our team has been reading:
- Lendlease breaks ground on $1.15B San Francisco tower
- DOE extends $2.5B loan to build 3 EV battery factories
- Energy storage strategies for island power
- Avangrid will take over operation of Vineyard Wind, nation’s 1st large-scale offshore wind facility
- California energy agency urges raised 25GW floating offshore wind target
- Biden EPA plans to tackle coal industry by enacting new limits on other pollutants
- Delaware coal plant closure delayed four years
- Ameren seeks FERC rate approval for N.M. transmission lines to ship power from 680-MW Clearway wind project
- Virginia regulators approve Dominion Energy’s 2.6-GW, $9.8B offshore wind farm
- Charah Solutions Awarded Multiple Remediation & Compliance Services and Byproduct Services Contracts from Three Southeast Utilities
- Biden-Harris Administration Launches New Offices to Lower Energy Costs and Deploy Clean Power Nationwide
- As of September, Hawaii power generation goes coal-free
- Ford unveils largest-ever renewable energy purchase from a US utility with 650-MW DTE Energy deal
- $2.3B GreenCity to break ground in 2023 near Richmond, Virginia
- US generating capacity additions expected to double in H2 to 29.4 GW, led by solar and wind: EIA
- New York regulators OK key National Grid, Invenergy transmission projects, reject NextEra solar farm
- Xcel Energy expects to build $1.2B in power line projects under MISO’s new $10.3B transmission plan
- U.S. electricity sales to increase 2.5% this year, with average residential prices jumping 6.1%: EIA
- $1.4 billion loan for nuclear plant proposed by California governor
- Evergy eyes 199 MW Oklahoma wind farm for $250 million
- District of Columbia regulators approve $92M energy efficiency program with focus on low- and moderate-income residents
- Xcel Energy seeks FERC approval to buy 120 MW of Minnesota wind from Allete in $216M deal
- US utility plans 3.9GW New York offshore wind transmission project
- Florida Power & Light constructing a record 16 new solar energy centers across state
- Steuben County wind farm gets important final approval
- Another Coal Plant Wins Lifeline Despite Biden’s Green Push
- Skanska tapped to work on largest US offshore wind project
- DOE to attack CO2 emissions with billions in funding from inflation reduction, infrastructure laws
- Federal court reinstates ban on new coal sales on public land
- A former West Virginia coal ash landfill is going to be replaced by a solar farm
- The TVA is dumping a mountain of coal ash in Black south Memphis
- FERC gives builders 4 more years to finish $6.6B Mountain Valley gas pipeline
- The ‘bonus’ tax deduction in the Inflation Reduction Act for construction firms
- Ameren Missouri to delay retiring 1,195-MW Rush Island coal plant under MISO reliability contract
- Top developers plan 92.1 GW of wind, solar projects in U.S. through 2026
- New proposal challenges Gavin Newsom’s $1.4 billion plan to keep Diablo Canyon open
- Inflation Reduction Act will attract an extra $270 billion in US wind and solar investments by 2030
- In 'aggressive' step toward clean energy, Hawaii is closing its only coal power plant
- Daily U.S. electricity generation from natural gas hit a record in mid-July
- Pueblo County power plant settlement outlines plans for economy's future
- Renewables provided over 25% of total US electrical generation in first half of 2022
- There is a place for natural gas on a zero-carbon grid: EPRI
- Clean Energy Continues to Decarbonize Transportation With New Fuel Contracts, Blazes Ahead With Renewable Natural Gas Development
- ComEd joins with CloudHQ to build $2.5B data center in northern Illinois
- Otter Tail and Montana-Dakota Utilities open new transmission line
- DOE begins accepting applications for $425M in major boost to state clean energy funding
- Entergy Corporation - Entergy begins major transmission project in southwest Louisiana
- NREL Study Identifies the Opportunities and Challenges of Achieving the U.S. Transformational Goal of 100% Clean Electricity by 2035
Meeting Planner
In this over-digitized age, there is no replacement for face-to-face meetings with your prospects and customers! We track meetings of interest to our customers serving the US power generation and supply industry so you won’t miss upcoming meetings and deadlines.
Meetings in September and October 2022
- EGSA Fall Conference - Sept. 11 - Sept.13, 2022
- NCTA Annual Business Meeting and Conference - Sept. 12 - Sept. 14, 2022
- ICMA Annual Conference - Sept. 17 - Sept. 21, 2022
- SEPA RE+ - Sept. 19 - Sept. 22, 2022
- AEE World Energy Conference & Expo - Sept. 21 - Sept. 23, 2022
- ACAA Fall Membership Meeting - Sept. 27 - Sept. 28, 2022
- EUEC Energy, Utility & Environment Conference - Oct. 5 - Oct. 7, 2022
- RMEL Fall Conference - Oct. 10 - Oct. 12, 2022
- IEEE - PES Fall Transformers Committee Meeting - Oct. 16 - Oct. 20, 2022
- AFPM Summit - Oct. 18 - Oct. 20, 2022
- PTDA Industry Summit - Oct. 26 - Oct. 29, 2022