November 2020's Power Generation & Supply Roundup is a snapshot for our Power Industry clients. We share industry drivers, notable projects, recent mergers and acquisitions, interesting reads, and updates on upcoming meetings and conferences.
Industry Drivers
Our data team tracks new and updated industry drivers. Here are some recent drivers we have been following this month:
New Jersey Offshore Wind Strategic Plan
Status: Effective
Organization: New Jersey Board of Public Utilities
Summary: On October 28, 2020, the New Jersey Board of Public Utilities adopted and issued the New Jersey Offshore Wind Strategic Plan originally filed on September 9, 2020. This document is a plan for reaching 7.500 megawatts (MW) of offshore wind energy by 2035. Also, it makes suggestions on establishing an offshore wind industry that delivers net economic benefits while also preserving the environment, commercial and recreational fishing interests, and decreasing the impacts of climate change. In the meantime, the state Department of Environmental Protection is tasked with prioritizing the research and monitoring the industry with ongoing habitat surveys and fish and wildlife studies. Ramboll U.S. Corp. developed the strategic plan with extensive public stakeholder input.
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Maryland, North Carolina, and Virginia Announce Agreement to Spur Offshore Wind Development
Status: Effective
Organization: States of Maryland, North Carolina, and Virginia
Summary: On October 29, 2020, the governors of Maryland, North Carolina, and Virginia declared a three-state collaboration to improve offshore wind projects in the region and support the Southeast and Mid-Atlantic United States as the core of offshore wind energy and industry. The states agreed to form a SMART-POWER Leadership Team with representatives from each signatory jurisdiction that will work to develop regional offshore wind resources. The main goal of this partnership is to enhance regulatory certainty, support the manufacturing of component parts, lessen project costs through supply chain development, share information and best practices, and promote synergy between industry and the signatory jurisdictions. According to the United States Department of Energy, the Atlantic Coast offshore wind project pipeline is estimated to create up to 86,000 jobs, $57 billion in investments, and provide up to $25 billion in economic output by 2030.
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Arizona Regulators Pass Rule for 100% Clean Energy by 2050
Status: Proposed
Organization: Arizona Corporation Commission
Summary: On November 13, 2020, the Arizona Corporation Commission approved amendments to its own energy rules, challenging the state's investor-owned utilities to phase out fossil fuels from the grid by 2050. Also, energy storage systems will need to make up 5% of those utilities' total grid range by 2035, and that 40% of that total be customer-owned or leased. The order for investor-owned utilities in the state is still subject to public comment and a final vote in early 2021 before it becomes effective.
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Bill Repealing Electricity Tax Exemption for New Wind Projects Advanced by Committee
Status: Proposed
Organization: Wyoming State Legislature
Summary: On November 11, 2020, Wyoming lawmakers passed a bill that would require wind energy producers to pay more in taxes in the first three years of new projects. The bill would remove a tax exemption on electricity generation that applies to new wind energy projects in their first three years of existence. Under current law, wind energy producers are taxed $1 per megawatt hour of wind energy produced upon expiration of the exemption. The lawmakers saw this exemption as an opportunity to bring additional revenue to the state, as it is facing a budget deficit of roughly $225 million for the 2021-2022 biennium.
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Bipartisan Legislation to Increase Use of Wind Energy Worldwide Introduced
Status: Proposed
Organization: House Committee on Foreign Affairs
Summary: On November 19, 2020, members of the House Foreign Affairs Committee introduced a law to reduce barriers to wind energy deployment to foreign partners. The legislation will use retired American turbine technology to help the development of renewable energy programs in developing countries, further improving the global renewable energy portfolio, diminishing unnecessary waste, and relieving taxpayers from the cost of new turbines. Under this legislation, cost barriers for developing nations to access clean energy will be reduced while enabling American wind companies to be generous global partners at the same time.
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Prince William County Passes Climate Resolution Committing to 100% Renewable Energy by 2035
Status: Proposed
Organization: Prince William County Board of Supervisors
Summary: On November 18, 2020, the Prince William County Board of Supervisors passed the county’s first climate resolution, which orders that government operations source 100% of their energy by 2030, with the entire county sourcing 100% of their energy from renewable sources by 2035. The resolution also commits to reaching 100% carbon neutrality by 2050 across all industries.
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Notable Projects
We track notable projects from proposal stage to becoming effective. Here are some of the recent notable projects we have been tracking.
$550 Million 36-inch Mid-Michigan Pipeline
Type: Natural Gas Pipeline
Status: Effective
Organization: Consumers Energy Company
Summary: On November 19, 2020, the Michigan Public Service Commission adopted Consumers Energy Co.’s application to construct the Mid-Michigan Pipeline, a 36-inch natural gas pipeline, replacing the existing Line 100A between Ovid and Chelsea. The 36-inch pipeline is substituting the 20-inch existing pipeline, which will improve Consumers’ system resilience and eliminate a gas-supply bottleneck in the smaller pipeline. Construction of the new 56-mile pipeline is expected to happen in 2023 to 2024. The Commission’s order determined that the replacement pipeline will address corrosion issues and seam weld, and other irregularities on the pipeline, remove the bottleneck, and provide a more resilient and flexible natural gas system, therefore serving the public convenience and necessity. The estimated cost for this project is $550 million.
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Pacific Gas & Electric Co. Humboldt Bay-Humboldt No.1 60kV Reconductoring Project
Type: Transmission Line
Status: Proposed
Organization: Pacific Gas and Electric Company (PG&E)
Scale: 60 kilovolts (kV)
Summary: On October 6, 2020, Pacific Gas and Electric Company (PG&E) filed an application with the Public Utilities Commission of the State of California for a permit to construct, so that it can rewire 7.8 miles of the 60 kV transmission line between its Humboldt Bay and Humboldt substations located in Eureka, California, replace 120 wood poles and light duty steel poles, and co-locate 0.6 miles of the HB-H Line with 60 kV transmission line that is adjacent to the Humboldt Bay and Eureka substations. The resolution on this application is targeted for November 2020.
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$27.3 Million Mont Belvieu Reliability Upgrades
Type: Transmission Line
Status: Proposed
Organization: CenterPoint Energy Houston Electric, LLC
Scale: 138 kilovolts (kV)
Summary: On October 9, 2020, the CenterPoint Energy Houston Electric, LLC's Mont Belvieu Reliability Upgrades Project got accepted by the Electric Reliability Council of Texas, Inc. (ERCOT) as one of the three Tier 3 transmission projects. This project is the most cost-effective solution to eliminate potentially significant load loss concerns (300 MW or greater) due to maintenance outage scenarios in the Mont Belvieu area. This project also provides capacity for future area load growth, including a configuration that meets CenterPoint Energy Transmission System Design Criteria that minimizes the number of two-line, loop breakered substations between the major substations, and minimizes Iandowner impact. The estimated cost, including all the transmission upgrades as discussed in this report, is a bit over $27.2 million. The project is expected to be completed by December 2022.
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$119 Million Southline Transmission Project Amendment Application
Type: Transmission Line
Status: Proposed
Organization: Tucson Electric Power Company
Scale: 345 kilovolts (kV) and 115 kV
Summary: On October 23, 2020, Tucson Electric Power Company submitted a Supplement to their Joint Application to Amend Decision in connection with proceedings before the Arizona Power Plant and Line Siting Committee. The Southline Project involves the construction of around 370 miles of new and upgraded transmission lines and associated facilities in New Mexico and Arizona consisting of two sections. The Southline's CEC application only sought a Certificate of Environmental Compatibility (CEC) for the non-WAPA owned portions of the Southline Project located in Arizona and excluded the Upgrade Section because the Upgrade Section was to be wholly owned and operated by WAPA. As aresult, the WAPA-owned Upgrade Section was not covered by CEC 173, and is still subjected to a rigorous federal permitting process that required an Environmental Impact Statement (ElS) that gained final approval under Record of Decisions (RODS) issued by the Bureau of Land Management and by WAPA.
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125MW Wheatsborough Solar Project
Type: Solar Powered Electric Generation Facility
Status: Proposed
Organization: Wheatsborough Solar, LLC
Scale: up to 125 megawatts (MW)
Summary: On October 27, 2020, Wheatsborough Solar, LLC filed a pre-application notification letter with the Ohio Power Siting Board in the matter of the construction notice for a certificate of environmental compatibility and public regarding its proposed solar powered electric generation facility. The proposed facility, the Wheatsborough Solar Project, is a solar-powered electric generation facility located in Groton Township, Erie County, Ohio. The facility will be sited on around 1,515 acres and have a maximum total generating capacity of up to 125MW. The purpose of the facility is to maximize energy production from solar resources in order to deliver clean, renewable electricity to the Ohio bulk power transmission system to serve the needs of electric utilities and their customers. The Applicant anticipates filing its application with the Board within 90 days of the public information meetings. Construction is expected to begin as early as second quarter 2022, with an in-service date in second quarter 2023. On Tuesday, November 17, 2020, from 6 p.m. to 8 p.m., the Applicant will host a virtual public information meeting presenting proposed facility and approval process.
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Bethel-Sawmill 138kV Pole Installation Project
Type: Pole Installation
Status: Proposed
Organization: AEP Ohio Transmission Company, Inc.
Scale: 138 kilovolts (kV)
Summary: On October 30, 2020, AEP Ohio Transmission Company, Inc. filed a pre-application notification letter with the Ohio Power Siting Board in the matter of the construction notice for a certificate of environmental compatibility and public need for the Bethel-Sawmill 138kV Pole Installation Project. AEP Ohio Transco proposes to install one structure and shift two previously approved structures along the approved Bethel-Sawmill 138 kV Transmission Line Project. AEP Ohio Transco expects that construction of the Project will begin in December 2020. The anticipated in-service date for the Project is around May 2021.
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414 MW Wind Energy Conversion System and 345 kV Transmission Line
Type: Wind Farm
Status: Effective
Organization: Minnesota Public Utilities Commission
Scale: 414 megawatts (MW)
Summary: On October 30, 2020, the Minnesota Public Utilities Commission issued a site permit to Plum Creek Wind Farm, LLC to construct and operate the Plum Creek Wind Farm, an up to 414MW nameplate capacity Large Wind Energy Conversion System (LWECS) and associated facilities in Cottonwood, Murray, and Redwood counties. The LWECS will consist of either 74 Vestas V162 5.6 MW turbines or 67 Siemens Gamesa SG170 6.2 MW turbines. The project also includes up to six alternate turbine locations for the Vestas model and 11 alternate turbine locations for the Siemens Gamesa model that can be used should any of the primary turbine locations be determined not adequate for construction or operation. The project area includes around 73,000 acres of land. The Permittee currently holds easements and participation agreements on up to 53,223 acres of land within the project area. Upon completion of project construction and restoration, the project site will include close to 113 acres of land converted to wind turbines and associated facilities approved by this site permit.
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$86.1 Million Red Rock Solar Project
Type: Solar Project
Status: Proposed
Organization: Red Rock Solar, LLC
Scale: 60 megawatts (MW)
Summary: In November, 2020, the Red Rock Solar, LLC, subsidiary of Apex Clean Energy Holdings, LLC, submitted a Site Permit Application to the Minnesota Public Utilities Commission. Red Rock Solar proposed to build a solar energy conversion facility with up to 60 MW alternating current nameplate capacity, in Midway Township, Cottonwood County, Minnesota. The solar facility will generate enough energy to provide electricity for roughly 12000 homes annually. Expected in-service date is by the end of 2022. The estimated cost for this project is a bit over $86.1 million.
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Utility Transmission and Distribution Investment Working Group Report
Type: Transmission
Status: Proposed
Organization: Utility Transmission and Distribution Investment Working Group
Summary: On November 2, 2020, Utility Transmission and Distribution Investment Working Group filed a report regarding the State of New York Public Service Commission's Motion to Implement Transmission Planning Under the Accelerated Renewable Energy Growth and Community Benefit Act. On May 14, 2020, the New York Public Service Commission issued the initiating order in this proceeding in response to environmental policy objectives and related requirements outlined in the Climate Leadership and Community Protection Act (CLCPA) and the Accelerated Renewable Energy Growth and Community Benefit Act (AREGCB Act). The CLCPA establishes aggressive targets for reducing greenhouse gas (GHG) emissions, renewable and emissions-free electric generation, and offshore wind development. The AREGCB Act directs the Commission to take actions to ensure that New York's electric grid will support the State's climate mandates. These actions include, among other things, initiating a proceeding to establish a planning process to guide future investments in local transmission and distribution and establishing an LT&D capital plan for each utility. The report contains the Utilities proposals and recommendations on these matters to fulfill the May Order requirements. The AREGCB Act and the May Order distinguish between distribution, local transmission, and bulk transmission assets. There are nine projects in total (3 in Phase 1 and 6 in Phase 2), with a total worth of $402 million for Phase 1 and $1.28 billion for Phase 2.
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Alamito Creek to Alpine 69 kV Line Rebuild Transmission Project
Type: Transmission line
Status: Proposed
Organization: American Electric Power Service Corporation (AEPSC)
Scale: 69 kilovolts (kV)
Summary: On November 2, 2020, the Electric Reliability Council of Texas, Inc. (ERCOT) issued its Notice of Acceptance of three Tier 3 transmission projects, among which American Electric Power Service Corporation (AEPSC) Alamito Creek to Alpine 69 kV Line Rebuild Transmission Project drew attention. The Project involves the rebuilding of the existing Alamito Creek to Del Nolte to Alpine 69-kV transmission line along the existing easement and route. AEPSC, on behalf of AEP Texas, is proposing to rebuild the existing 22.45-mile Alamito Creek to Alpine 69 kV line to improve its reliability. The majority of the Alamito Creek to Alpine line was constructed in 1946 with wood pole construction, and most of the structures are from the original install date. This Project is being submitted as a Tier 3 project. There will be some encroachment issues to address, but the Project is not expected to require a Certificate of Convenience and Necessity (CCN). The recommended Project has an estimated completion date of December 2023. The total project cost is expected to be $37 million.
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Birch Solar 300-MW Project
Type: Solar Generation
Status: Proposed
Organization: Birch Solar, LLC
Scale: 300 megawatts (MW)
Summary: On November 3, 2020, Birch Solar, LLC, a Lightsource bp subsidiary, filed Preapplication Notification Letter with the Ohio Power Siting Board about its proposed solar-powered electric generation facility. The proposed facility, the Birch Solar Project, is a solar-powered electric generation facility located in Shawnee Township, Allen County, Ohio, and Duchouquet and Logan Townships, Auglaize County, Ohio. The facility will be sited on roughly 2,600 acres and have a maximum total generating capacity of up to 300 MW. The purpose of the facility is to create electricity to PJM. The Applicant anticipates filing its application with the Board within 90 days of the public information meetings. Construction is expected to launch as early as the fourth quarter of 2021, resulting in commercial operations in the second quarter of 2023.
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$172.3 Million LNG Tank Upgrade
Type: Tank Upgrade
Status: Proposed
Organization: Boston Gas Company
Summary: On November 13, 2020, Boston Gas Company, doing business as National Grid LNG, described its reliability projects for CY 2021 through 2026. One of the projects stands out. The South Yarmouth LNG Plant essential equipment and infrastructure are in urgent need of an upgrade. The LNG tank is a pre-stressed concrete outer with stainless steel inner tank and suspended deck. The Tank is at risk of failure due to its age. This project will evaluate plants' LNG tank and balance to determine whether to upgrade or replace the facility systems. The systems include LNG Storage Tank, Vaporization System, Control Room Building, Truck Station, Pumps, Piping, and Security System. The estimated cost for this project is $172.3 million.
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$22.5 Million Tall City - Telephone Road 138-kV Line Rebuild Project
Type: Transmission Line
Status: Proposed
Organization: Oncor Electric Delivery Company, LLC
Scale: 138 kilovolts (kV)
Summary: On November 21, 2020, Oncor Electric Delivery Company LLC’s Tall City - Telephone Road 138-kV Line Rebuild Project got accepted by the Electric Reliability Council of Texas, Inc. (ERCOT) as one of the three Tier 3 transmission projects. This project includes the rebuild of the existing 11.9-mile Tall City - Telephone Road 138-kV Line, using double-circuit capable structures with a single circuit in place, and the upgrade of the terminal equipment at Tall City Switch and Telephone Road Switch. This is a $23.5 million worth project in Midland County and is recommended for construction to meet a fall 2021 in-service date.
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Notable M&A
The following M&A transactions in the Power Generation and Supply Industry stand out in the month of November:
- November 2, 2020, KKR and NextEra Energy’s subsidiaries announced a $1.4 billion worth deal for acquisition of certain renewable energy assets.
Click here for more information. - November 10, 2020, BlackRock acquired the remaining stake in Distributed Solar Development from GE Renewable Energy.
Click here for more information. - November 20, 2020, Boralex agreed to acquire the remaining 49% in three wind farms in Quebec for $121.5 million.
Click here for more information. - November 23, 2020, Boralex agreed to acquire controlling interests in seven solar power plants in the United States for $216.5 million.
Click here for more information. - November 24, 2020, Entergy Louisiana purchased Washington Parish Energy Center, a 361 MW facility.
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What We Are Reading
- AEP Will Shutter Nearly Half Its Giant Coal Power Fleet—5.6 Gw—by 2030, Https://tinyurl.com/y58u9z6c
- Talen Energy Announces Transformational Move Toward a Sustainable, Esg-Focused Future, Https://tinyurl.com/y64o7maf
- Gexa Energy Achieves Ambitious 100% Renewable Energy Goal, Https://tinyurl.com/y329frxw
- Proposed New Standards for Renewable Energy Projects to be Judged in a Virtual Public Hearing, https://tinyurl.com/yy4xgq45
- NYC-Area Nuclear Plant Sale for Decommissioning is Approved, https://tinyurl.com/y3lfhgmq
- N.Y. Gov. Cuomo Announces Completion of $16 Million Project to Install Smart Energy-Saving Streetlights in Syracuse, https://tinyurl.com/yypq4bky
- Three Coal-Burning Power Plants in Colorado Face Orders to Close Early. Their Owners Aren’t Happy About It, https://tinyurl.com/y27k5769
- Hinkley Point B to be loCsed by 2022, https://tinyurl.com/y5ytl8qu
- California PUC Issues Dec. 3 Agenda Item Involving Five Companies, https://tinyurl.com/y6spjgn3
- DOE Announces $35 Million in Funding for Hydrokinetic Turbine Development, https://tinyurl.com/y2bhrz94
Meeting Planner
Organizations have shifted their event strategies during the COVID-19 pandemic. We are tracking these changing meeting plans.
Meetings in December 2020 and January 2021
- (Virtual Event) - AESP Annual Conference & Expo - 2021, Jan. 25 to Jan. 28, https://tinyurl.com/y3hj987p
- (Virtual Event) - Behavior, Energy, and Climate Change - 2020, Dec. 07 to Dec. 10, 2020, https://tinyurl.com/y2v648ar
- (Virtual Event) - AWEA CLEANPOWER Strategy Summit 2020, Dec. 02, 2020, https://tinyurl.com/y67cy44m
- (Virtual Event) - RMEL’s Power Plant Cycling and Flexibility Roundtable Series - 2020, Dec. 11, 2020, https://tinyurl.com/y44lkf8x
- (Virtual Event) - RMEL’s Long Duration Bulk Energy Storage Roundtable Series - 2020, Dec. 10, 2020, https://tinyurl.com/yxqee9fa
- (Virtual Event) - 2021 ABMA Annual Meeting, Jan. 12 to Jan. 13, 2021, https://tinyurl.com/y59a8kzz
- (In-Person & Virtual) - 2021 ABMA Annual Meeting, Jan. 15 to Jan. 18, 2021, https://tinyurl.com/y59a8kzz
- (Virtual Event) - Energy Efficiency and Climate Policy Forum - 2020, Dec. 3, 2020, https://tinyurl.com/y46qodwf
- (Virtual Event) - 2021 Presentation to CFA Society New York, Jan. 27, 2021, https://tinyurl.com/yyvko444
- (Virtual Event) - AESP 31st Annual Conference - Charging Forward in 2021 - 2021, Jan. 25 to Jan. 28, 2021, https://tinyurl.com/y3hj987p
Call for Papers Deadlines
- Event: 2021 Summer Study on Energy Efficiency in Industry
URL: https://tinyurl.com/y48wlu9g
Dates: July 13 to July 15, 2021
Date Call for Paper: Jan. 8, 2020
Early Bird Registration Deadlines
- Event: (APPA) Joint Action Virtual Conference
URL: https://tinyurl.com/yy3ndffz
Dates: Feb. 04 to Feb. 05, 2021
Early Registration Expires: Jan. 1, 2021 - Event: AESP 31st Annual Conference - Charging Forward in 2021
URL: https://tinyurl.com/y3hj987p
Dates: Jan. 25 to Jan 28, 2021
Early Registration Expires: Jan. 7, 2021 - Event: PowerGen International - 2021
URL: https://tinyurl.com/yxpe5f3q
Dates: Mar. 30 to Apr. 01, 2021
Early Registration Expires: Jan. 22, 2021 - Event: POWERGEN International & DistribuTECH International Are Being Held Side by Side in Orlando in 2021
URL: https://tinyurl.com/zvfj5jc
Dates: Mar. 30 to Apr. 01, 2021
Early Registration Expires: Jan. 22, 2021