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Power Generation and Supply Monthly Roundup, August 2020

By FirmoGraphs Staff

August 2020's Power Generation & Supply Roundup is snapshot of the insights our data is able to provide to our Power Industry clients. We share upcoming project alerts, drivers, recent mergers and acquisitions, and updates on upcoming meetings and conferences.

Industry Drivers and Alerts

Drivers Power Generation Roundup-min

Driver: EPA Issues Final Policy and Technical Amendments to the New Source Performance Standards for the Oil and Natural Gas Industry (Note to reader, it's not quite power...but it's close.)

Status: Proposed

Organization: U.S. Environmental Protection Agency (EPA)

Summary:

On August 13, 2020, the Environmental Protection Agency (EPA) declared two final regulation changing policies and technical elements to reduce compliance burdens linked with oil and gas New Source Performance Standards (NSPS). The first rule, Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources Review, will annul the NSPS methane requirements applicable to transmission, storage, production, and processing. The second rule, Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources Reconsideration, introduces amendments relating to fugitive emissions requirements, well site pneumatic pump standards, certification of closed vent systems, and use of an alternative means of emission limitation. These two rules are estimated at a profit of between $750 and $850 million from 2021 to 2030 or around $100 million per year. The final amendments will take effect 60 days after they are published in the Federal Register!

Click here for additional information.

Driver: Fact Sheet on the Revisions to Several Coal Ash Closure Requirements and Provisions that Enhance Public Access to Information

Status: Effective

Organization: U.S. Environmental Protection Agency (EPA)

Summary: In July 2020, the Environmental Protection Agency (EPA)  released the Final Rule fact sheet, which describes the action that finalizes changes to coal combustion residuals (CCR) regulations to implement the court’s ruling of certain closure requirements. Additionally, EPA added provisions that enhance access to information about the management of coal ash at electric utilities. Provisions include revising the annual groundwater monitoring and corrective action report requirements to make the data more accessible for the public to understand and review the CCR website requirements to make sure important information is available to the public promptly.

Click here for additional information.

Driver: Pre-Publication Copy of the Final Rule: A Holistic Approach to Closure Part A - Deadline to Initiate Closure and Enhancing Public Access to Information

Status: Proposed

Organization: Environmental Protection Agency (EPA)

Summary: On July 29, 2020, the Environmental Protection Agency (EPA) released a pre-publication of changes to the coal combustion residuals (CCR) regulations proposed on August 14 and December 2, 2019. The Final Rule addresses a revising of the date by which unlined surface impoundments and units that failed the aquifer location restriction must stop receiving waste, from October 31, 2020, to April 11, 2021. The Rule also includes provisions revising the annual groundwater monitoring and corrective action report requirements to make the data more accessible for the public to understand and review the CCR website requirements to make sure important information is available to the public immediately.

Click here for additional information.

Driver Update: The Building Initiative for Low-Emissions Development (BUILD) Program Implementation Plan Proposal

Status: Proposed

Organization: California Public Utilities Commission

Summary: On July 24, 2020, California Energy Commission Staff proposed an approach to administering the Building Initiative for Low-Emissions Development Program. The Plan gives information on expected program participation requirements, including program eligibility, incentive structure, the application process, eligible equipment, evaluation of new technology, bill savings calculation methodology, technical assistance and outreach, and the metrics to evaluate program performance. The Program's total budget is around $80 million for four years, from Fiscal Year (FY) 2019-2020 to FY 2022-2023. This proposed Plan is a consequence of a decision made in March 2020 to establish a framework and requirements for further designated the CEC as program administrator for the Building Initiative for Low-Emissions Development Program and as program administrator to develop an implementation plan for approval by the CPUC. The BUILD Implementation Plan is subject to update and approval by the CPUC every two years. The Program is one of two building decarbonization programs authorized by Senate Bill 1477, in 2018.

Click here for additional information

Driver Update: State of Virginia Joins RGGI

Status: Effective

Organization: Virginia Department of Environmental Quality

Summary: On July 8, 2020, the State of Virginia joined RGGI. The CO2 regulation has been finalized and became effective July 10, 2020. On January 1, 2021, Virginia will become a full participant in the Regional Greenhouse Gas Initiative (RGGI). Like all other RGGI participating states, Virginia will participate in the regional quarterly auctions, originating fully fungible CO2 allowances that may be used for compliance by regulated entities in any RGGI participating state. Also, Virginia will be a part of the RGGI program review process, a long-standing commitment to study potential improvements to RGGI’s design and propose changes to the program on a consensus basis.

Click here for additional information.

Alert: City of Hamilton Proposes a $150,000 Transmission Pole Replacement Project

Type: Transmission line                                         

Status: Proposed

Organization: City of Hamilton, Ohio

Scale: 138 kilovolts (kV) and 15 kV

Construction Dates: August 2020 - March 2021

Summary: On August 4, 2020, the City of Hamilton, Ohio, filed a Construction Notice with the Ohio Power Siting Board to review Accelerated Certificate Applications. The City proposed to install new 138 kV transmission poles and one new 15 kV transmission pole in place of one existing 138 kV transmission pole in an existing utility. This is required to connect a current 129 kV circuit to a new substation between existing substations 11 and 15, on land owned by the City. The project will extend an existing transmission line close to 0.2 miles to connect to a new substation. The project is located in the City of Hamilton, Butler County, Ohio, around 20 miles Northwest of the City of Cincinnati. If approved, the construction will start in August 2020 with an in-service date by March 2021. The proposed project's cost is between $100,000 and $150,000 for the placement of new transmission poles and an additional $10,000,000 to $12,000,000 for the completion of the new substation.

Alert: Hawaiian Electric Applies for Funding of over $2.5 Million for Archer GIS Replacement Project

Type: Equipment replacement                                           

Status: Proposed

Organization: Hawaiian Electric Company, Inc.

Scale: 45 kilovolts (kV)

Data source: https://tinyurl.com/y5j6dxy4

Summary: On August 10, 2020, Hawaiian Electric Company, Inc., filed an application with Hawaii's Public Utilities Commission to commit funds in excess of $2.5 million for Archer Gas Insulated Switchgear (GIS) Replacement project. Since the Hawaiian Electric's Archer Substation reported facing component failures with its 46 kV GIS equipment, this project proposes to replace 30-year old GIS equipment  and 46 kV protective relays at Archer Substation, which were installed when the Archer Substation was originally constructed. The existing electromechanical relays are obsolete and will be replaced with new microprocessor relays, which will provide support for a future smart grid. The total estimated cost of the project is $32.9 million.

Alert: AEP Ohio Transmission Applies for an Amendment to the Ginger Switch - Vigo 138 kV Transmission Line Project

Type: Transmission Line                                           

Status: Proposed

Organization: AEP Ohio Transmission Company, Inc.

Scale: 138 kilovolts (kV)

Summary: On August 14, 2020, AEP Ohio Transmission Company, Inc. filed an Amendment Application in its Certificate of Environmental Compatibility and Public Need for the Ginger Switch - Vigo 138 kV Transmission Line Project with the Ohio Power Siting Board (OPSB). The purpose of this Amendment Application is to document changes to the Amended Preferred Route and seek OPSB approval of the revised alignment.  The Company has provided OPSB final locations of staging areas and laydown yards. American Electric Power Ohio Transmission Company, Inc. is proposing the Ginger Switch‐Vigo 138 kV Transmission Line Project, known as the Liberty 138 kV Transmission Line Rebuild Project. The Project is part of the Ross‐Jackson Area Improvements Project, whose purpose is to improve the reliability of the electric transmission grid in Ross and Jackson Counties, OH. The Project involves rebuilding around 7 miles of the existing Berlin‐Ross 69 kV transmission line to 138 kV standards. Construction of the Project started in the third quarter of 2020 and is expected to end in the third-fourth quarter of 2021. Once the new line is completed, the existing 69 kV transmission line is planned to be removed. 

Alert: Boardman Power Plant Application For Authority To Decrease Rates by $3.9 Million

Type: Rate decrease                                          

Status: Proposed 

Organization: Idaho Power Company

Summary: On August 21, 2020, Idaho Power Company applied to the Idaho Public Utilities Commission to decrease its rates for electric service for costs associated with the Boardman Power Plant. Idaho Power Company found that all actual Boardman power plant investments made from June 1, 2012, through June 30, 2020, were prudently incurred and decreased customer rates by $3.9 million to reflect full depreciation of all Boardman investments which equals a decrease of 0.33%. The Application included the tariff sheets specifying the proposed rates for providing retail electric service to its customers following the price decrease to remove Boardman levelized revenue requirement amounts for January 1, 2021, through December 31, 2021. The Company requests approval to reinvest the customer savings into energy efficiency to limit impacts to customer bills and facilitate a single rate change for customers.

Notable M&A

roundup

The following  M&A transactions in the Power Generation and Supply Industry stand out in the month of August:

  • August 01, 2020, Hydro One Limited acquired the business assets of Peterborough Distribution Inc.

Click here for more information.

  • August 03, 2020, CenterPoint Energy combined Indiana Electric and Houston Electric into one organization.

         Click here for more information.

  • August 03, 2020, Enviva Partners, LP acquired a world-class, industrial scale wood pellet production plant in Waycross, Georgia.

Click here for more information.

  • August 17, 2020, Dominion Energy acquired the 62.5-megawatt (AC) Madison Solar generating facility in Orange County, Virginia, from Cypress Creek Renewables.

Click here for more information.

Meeting Planner

Meeting Power Generation Roundup-min

In this over-digitized age, there is no place for face-to-face meetings with your prospects and customers!  However due to the impact of the COVID19, the following organizations have updated their meetings approach. 

Meetings in September & October, 2020

  • (Virtual Conference) AESP Summer Conference & Expo, Sep.  1 to Sep.  3, 2020, Philadelphia, Pennsylvania, http://ow.ly/Gd6p50BdCMP
  • (Canceled) CAER/ACAA CCP Workshop, Sep.  8 to Sep.  11, 2020, Birmingham, Alabama, http://ow.ly/U75g50BdCQ5
  • (Virtual Conference) The International Pittsburgh Coal Conference, Sep.  8 to Sep.  11, 2020, Pittsburgh, Pennsylvania, http://ow.ly/kZPx50BdD4l
  • (Virtual Conference) A Virtual Leadership Summit, Sep.  9 to Sep. 10, 2020, http://ow.ly/zFx150BdD8D
  • (Canceled) EGSA Fall Conference, Sep.  13 to Sep.  15, 2020, Louisville, Kentucky, http://ow.ly/Zpwa50BdDbO
  • (Virtual Conference) Fuel Ethanol Workshop & Expo, Sep.  15 to Sep.  17, 2020, Omaha, Nebraska, http://ow.ly/qI7650BdDdW
  • (Canceled) EEI Fall Occupational Safety And Health Committee Conference, Sep.  20 to Sep.  23, 2020, New Orleans, Louisiana, http://ow.ly/sVoP50BdDjl
  • (Virtual Conference) NESEA Building Energy NYC, Sep.  23 to Sep.  24, 2020, New York, New York, http://ow.ly/thaL50BdDnP
  • (Virtual Conference) ICMA Annual Conference, Sep.  23 to Sep. 26, 2020, http://ow.ly/bVWs50BdDpK
  • (Virtual Conference) Energy Storage in Canada Conference, Sep.  23 to Sep.  24, 2020, Toronto, Ontario, http://ow.ly/PLiM50BdDtg
  • (Virtual Conference) NASEO Annual Meeting, Oct. 6 to Oct. 8, 2020, Portland, Maine, http://ow.ly/Jub550BdDv8
  • (Canceled) IEEE PES Transmission and Distribution Conference and Exposition, Oct. 12 to Oct. 15, 2020, Chicago, Illinois, http://ow.ly/wz3L50BdDwz
  • (Virtual Conference) MnSEIA Gateway to Solar Conference, Oct. 12 to Oct. 13, 2020, Minneapolis, Minnesota, http://ow.ly/SpIX50BdDyj
  • ACAA's Fall Committee Meeting, Oct. 27 to Oct. 28, 2020, French Lick, Indiana, http://ow.ly/n1VN50BdDzW

Early Bird Registration Deadlines

  • Event:  Behavior, Energy, and Climate Change - 2020 (Virtual Conference)
  • URL:  http://ow.ly/N0bI50BdDEo
  • Dates:  Dec. 6 to Dec. 9, 2020
  • Date Early Registration:  Sep. 11, 2020

  • Event:  The APPA Public Power Forward Summit - 2020 (Virtual Conference)
  • URL:  http://ow.ly/FnjR50BdDGI
  • Date:  Nov. 10, 2020
  • Date Early Registration:  Oct. 9, 2020

None of the information we provide may be taken as legal advice. Please consult an attorney if you require a legal interpretation of this information. 

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