Our February 2024 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 in February:
Oklahoma SB 1535: Oklahoma Low Carbon Energy Initiative
Status: Effective in November 2024
Organization: Oklahoma State Legislature
Summary: On February 5, 2024, the Oklahoma State Legislature introduced a bill aiming to amend the Oklahoma Low Carbon Energy Initiative, which is a strategic program to create, advance, and promote new and existing energy research and development, use, supply chain activity, and infrastructure related to Oklahoma’s core energy competencies. The bill seeks to:
- Modify the duties and membership of the Oklahoma Low Carbon Energy Initiative Board, which administers and governs the Initiative, by adding two new members representing an electric utility and the nuclear energy industry;
- Require electronic reporting and publishing of the annual progress of the Initiative and its programs;
- Update the statutory reference to the Oklahoma Energy Initiative Act; and
- Provide an effective date of November 1, 2024.
Click Here for More Information
Oklahoma SB 1712: An Act Relating to Nuclear Energy
Status: Effective in November 2024
Organization: Oklahoma State Legislature
Summary: On February 5, 2024, the Oklahoma State Legislature introduced a bill outlining regulations regarding the state's nuclear energy and coal-fired electric generation facilities. The act requires electric utilities that plan to retire coal-fired electric generation facilities to notify the Corporation Commission and submit a report on the replacement options, prioritizing advanced nuclear reactors. The act also authorizes qualified entities to construct nuclear power plants and secondary facilities for spent fuel, subject to approval by the Department of Environmental Quality and the Federal Nuclear Regulatory Commission. The act requires entities to submit a letter of intent and an application to the Department containing information on the proposed nuclear power plant and facility's construction, location, and benefits. The act directs the Corporation Commission and the Department to promulgate rules to create a regulatory environment for nuclear power in Oklahoma. The act takes effect on November 1, 2024.
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CPUC Drives California Toward a Clean Energy Future
Status: Proposed
Organization: California Public Utilities Commission (PUC)
Summary: On February 15, 2024, the California Public Utilities Commission (CPUC) announced a new plan to accelerate California's transition to clean energy while prioritizing affordability. This plan sets ambitious targets for reducing greenhouse gas (GHG) emissions, aiming for a 60 percent reduction compared to 2020 levels by 2035. The CPUC mandates the construction of over 56 gigawatts (GW) of new clean energy resources by 2035, including 4.5 GW of offshore wind power. The decision also recommends that the California Independent System Operator (CAISO) base transmission investments on the portfolio to achieve the GHG reduction goal.
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West Virginia HB 5528: Relating to the Renewable Energy Facilities Program
Status: Proposed
Organization: West Virginia State Legislature
Summary: On February 19, 2024, the West Virginia Legislature passed a bill that proposes modification of the renewable energy facilities program in the state, which would allow electric utilities to plan, design, construct, purchase, own, and operate renewable electric-generating facilities and energy storage resources on eligible sites. The bill aims to:
- Increase the maximum size of renewable electric-generating facilities from 50 to 100 megawatts for regulated utilities, subject to certain conditions and limits.
- Remove the program's expiration date, which is currently set to end on December 31, 2025.
- Provide a concurrent cost-recovery mechanism for the electric utilities to recover their capital investments and expenses associated with the program, subject to commission approval and oversight.
- Declare that the program is in the public interest and does not displace any current levels of coal-fired generation capacity.
- Allow exempt wholesale generators who produce electricity solely through solar methods to apply for a siting certificate under this section.
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Notable Projects
FirmoGraphs tracks notable projects from the proposal stage to becoming effective. Here are some of the recent notable projects we have been tracking.
$593 Million Westlands Daylight Legacy Solar Project
Type: Generation - Solar
Status: Proposed
Organization: Kings County, California
Region: California
Summary: Kings County Community Development Agency is proposing to construct, operate, and decommission a 300-megawatt (MW) commercial solar and battery storage facility to be located at 18352 Avenal Cutoff Rd., Stratford, Assessor’s Parcel Numbers 026-010-028, 026-300-004, -031, -032, -033, -043, -044, 026-320-002, and -003. The project proposal includes an electrical substation, battery storage, an Operations & Maintenance facility, telecommunication facilities, and a meteorological data collection system. The proposed battery storage consists of 300 battery containers and has a capacity of 1200 MW hours. In addition, a new 230-kV gen-tie line extends from the project substation 2.5 miles north to the existing PG&E Mustang switching station. The Project is planned to be constructed over a 12-month period in 2025 and 2026. According to the 2023 Annual Technology Baseline (ATB), Solar projects with energy storage systems will cost $1,975 per kW. Based on this value, FirmoGraphs estimates the Project will cost $592.5 million.
Contact FirmoGraphs to See the Document
$250 Million Fiddle Falls Solar Project
Type: Generation - Solar
Status: Proposed
Organization: Fiddle Falls Solar, LLC
Region: Mississippi
Summary: Fiddle Falls Solar, LLC submitted filings on February 02, 2024, to the Mississippi Public Service Commission for the Fiddle Falls Solar Project. The Project is a 200 megawatts (MW) solar electric generating facility with a 200 megawatt-hours (MWh) four-hour battery energy storage system on approximately 2,131.7 acres in Pontotoc County, Mississippi. The Project will connect to a newly constructed on-site substation where the energy will be sent downstream through an existing transmission line and connect with TVA's existing McGregor Chapel switching station and the Oxford 161kV substation. The capital investment necessary to develop and construct the Facility is estimated at least $250 million.
Contact FirmoGraphs to See the Document
$250 Million Forgeview Solar Project
Type: Generation - Solar
Status: Proposed
Organization: NextEra Energy Resources
Region: Arkansas
Summary: Forgeview Solar, LLC, a subsidiary of NextEra Energy Resources, will construct the proposed Forgeview Solar Project. The Project is a solar facility with 200 megawatts (MW) of alternating current on approximately 1,800 acres in Mississippi County, Arkansas. The Project is scheduled to begin operations by the end of 2025. According to the 2023 Annual Technology Baseline (ATB), Solar projects will cost $1,248 per kW. Based on this value, FirmoGraphs estimates the Project will cost $249.6 million.
Contact FirmoGraphs to See the Document
$243 Million Potomac Hills Solar Generation Facility
Type: Generation - Solar
Status: Proposed
Organization: Potomac Hills Energy, LLC
Region: West Virginia
Summary: Potomac Hills Energy, LLC submitted filings on February 8, 2024, to the West Virginia Public Service Commission for the Potomac Hills Solar Generation Facility. The Project is a 100-megawatt (MW) generating facility and a 200-megawatt-hour (MWh) battery energy storage system on approximately 650 acres in Mineral County, West Virginia. The construction will commence in late 2026 and conclude in 2027, with a general construction timeline of six to nine months. The Applicant estimates that the Facility represents an investment of approximately $243 million.
Contact FirmoGraphs to See the Document
$218 Million Renegade Solar Project
Type: Generation - Solar
Status: Proposed
Organization: Upper Michigan Energy Resources, Corp
Region: Michigan
Summary: Upper Michigan Energy Resources, Corp submitted filings on December 1, 2023, to the Michigan Public Service Commission for the Renegade Solar Project. The Project is a 100 megawatts (MW) solar electric generating facility on approximately 4,000 acres of privately owned land in Delta County, Michigan. The Project will be interconnected with American Transmission Company’s 138 kilovolt (kV) transmission system. The construction will commence on October 15, 2024, and is expected to be completed on December 31, 2026, costing $217.5 million.
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 February:
- On February 12, 2024, Diamondback Energy, Inc. and Endeavor Energy Resources, L.P., announced that they entered into a definitive merger agreement under which Diamondback and Endeavor will merge in a transaction valued at approximately $26 billion, inclusive of Endeavor’s net debt. The combination will create a premier Permian independent operator.
- On February 14, 2024, Connor, Clark & Lunn Infrastructure announced that it has entered into an agreement to acquire a majority stake in the Sharp Hills wind farm), a subsidiary of EDP Renewables for an estimated Enterprise Value of approximately $0.6 billion for an 80% stake and inclusive of investment tax credits.
- On February 20, 2024, CenterPoint Energy, Inc. announced the sale of its Louisiana and Mississippi natural gas LDC businesses to Bernhard Capital Partners, a services and infrastructure-focused private equity management firm, for $1.2 billion.
What We Are Reading
Here are some recent articles our team has been reading:
- Consumers Energy's last coal-fired power plant is closing. Some want Ottawa County to buy it
- Ameren Illinois upgrades 140-mile stretch of transmission line
- Xcel proposes 3.6 GW renewables, 600 MW storage in Midwest but spurs concerns with gas plans
- Biden-Harris Administration Requests Proposals to Expand and Modernize the Nation’s Electric Grid
- DTE wants 15 years to close coal ash landfill along Lake Erie
- FirstEnergy increases 5-year spending plan 44%, to $26B, drops 2030 carbon goal
- Salt River Project seeks 2.5 GW clean power, 1.2 GW peak capacity amid rapid Phoenix-area growth
- PGE and Orsted Sign Contracts for the Offshore Part of the Baltica 2 Wind Farm Project
- EPA RELEASES 2023 POWER PLANT EMISSIONS DATA
- With FERC approval in hand, Vistra poised to close on $6.3B Energy Harbor buy
- RETIREMENTS OF U.S. ELECTRIC GENERATING CAPACITY TO SLOW IN 2024
- New York's First Offshore Wind Farm Completed
- TYPE ONE ENERGY WANTS TO BUILD A STELLARATOR AT RETIRED COAL PLANT
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. Also, FirmoGraphs has recently implemented a free-of-charge service for tracking notable infrastructure events.
Meetings in March and April 2024
|
Name Organization |
Name Meeting Key |
Date Start |
Date End |
| American Council for an Energy-Efficient Economy | ACEEE Hot Water Forum & Hot Air Forum | 2024-03-12 | 2024-03-14 |
|
Edison Electric Institute |
2024-04-15 |
2024-04-19 |
|
|
Microgrid Knowledge |
2024-04-22 |
2024-04-24 |
Early Bird Registrations
- Event: EEI 2024
Dates: June 18, 2024 - June 20, 2024
Deadline for Early Registration: March 8, 2024 - Event: ACAA World of Coal Ash
Dates: May 13, 2024 - May 16, 2024
Deadline for Early Registration: April 1, 2024 - Event: IEEE - PES Transmission and Distribution Conference and Exposition
Dates: May 6 , 2024 - May 9, 2024
Deadline for Early Registration: April 5, 2024 - Event: ACORE Finance Forum
Dates: June 4, 2024 - June 5, 2024
Deadline for Early Registration: April 12, 2024