Essential News for Corporate Energy Risk Managers
Author: Graham Foster
Overview: The Texas Public Utility Commission (PUC) recently approved new rules requiring large computational loads, such as data centers and crypto-mining facilities, to remain connected and stable during grid disruptions. These modern computational loads are designed to protect sensitive equipment, which may lead them to temporarily disconnect during voltage dips. This poses a reliability issue for the grid. When large numbers of these loads disconnect at once, it can create a sudden and significant drop in demand on the grid. Key Insights: The new PUC rules address the frequency stability and reliability of the grid as large computational loads increase.…
The California Public Utilities Commission (CPUC) is now accepting public comments regarding a proposed settlement with Pacific Gas and Electric Co. (PG&E), which could result in a $22 million penalty for the Mosquito Fire that occurred in 2022 in Placer County. This fire caused extensive damage, burning more than 75,000 acres and destroying numerous buildings. An investigation carried out by the CPUC revealed that PG&E violated state regulations concerning the design, construction, and maintenance of their overhead electrical lines. In their announcement, the CPUC explained that the proposed settlement holds PG&E accountable and mandates a thorough review of their Centralized…
David LaCerte, a commissioner at the Federal Energy Regulatory Commission (FERC), highlighted significant concerns about PJM Interconnection, stating that the current situation is “untenable.” Speaking at a WIRES meeting in Philadelphia, he noted that PJM’s stakeholder process has become bogged down in gridlock. FERC is set to hold a technical conference on July 23 to address PJM’s governance issues. This meeting aims to explore actionable reforms that could improve the stakeholder process, making it more efficient for critical matters. LaCerte pointed out that some participants use the stakeholder process to prioritize their own business interests, which can negatively impact the…
A recent draft report from the U.S. Department of Energy highlights that enhancing interregional transmission and collaborations among grid operators can significantly reduce transmission congestion and improve resource availability. The report noted that congestion costs across the U.S. rose to $12 billion in 2024 from $11 billion the previous year, although this figure is down from a peak of $21 billion in 2022, partly due to high gas prices and extreme weather events. The DOE anticipates that these costs will continue to climb. The analysis in the report, sourced from the Lawrence Berkeley National Laboratory, emphasizes the value of establishing…
The independence of the Federal Energy Regulatory Commission (FERC) could face significant changes following the Supreme Court’s decision in the case of Trump v. Slaughter, which enhances the president’s authority to remove regulators at will. This ruling has raised concerns among former FERC commissioners from both political parties. In the court’s ruling, a 6-3 majority decided that the president was within his rights to dismiss Commissioner Rebecca Kelly Slaughter from the Federal Trade Commission. Legal experts believe this interpretation could extend to FERC and other federal agencies. Former commissioners fear this ruling might lead to a lack of quorum at…
Todd Snitchler, president and CEO of the Electric Power Supply Association, recently addressed some critical issues in the competitive power markets, especially within the PJM Interconnection. His insights indicate that suggestions of reverting to reregulation and utility-owned generation are misguided and could hinder progress at this crucial time. Currently, PJM is witnessing a significant development with over 55 gigawatts (GW) of new generation capacity cleared and poised for construction. An additional 220 GW has entered the latest review cycle. Furthermore, when PJM inquired about direct contracts with large consumers, over 130 GW of interest was shown. This clearly demonstrates that…
New York has successfully installed 8 gigawatts (GW) of distributed solar energy, as announced by Governor Kathy Hochul on July 2. This achievement positions the state ahead of its goal to deploy 10 GW by 2030. This 8 GW of solar energy can power around 1.3 million homes and businesses, supported by over 276,000 projects. Furthermore, an additional 2.7 GW is currently under development. The growth has been attributed to community solar initiatives and the NY-Sun program. The NY-Sun program, managed by the New York State Energy Research and Development Authority, offers financial incentives for various solar projects, including those…
Illinois Approves New Virtual Power Plant Initiative The Illinois Commerce Commission has granted approval for Commonwealth Edison’s new initiative, the “scheduled dispatch virtual power plant” (SDVPP). This program aims to utilize battery storage to enhance energy efficiency in the Chicago area. This new program replaces a previous proposal that was withdrawn by ComEd last November after Illinois enacted the Clean and Reliable Grid Affordability Act. This law focuses on increasing battery storage and managing energy supply more effectively as demand rises in the region. Andrew Plenge, ComEd’s vice president, stated that the SDVPP is a significant step forward. It will…
Key Highlights: Eversource Energy, National Grid, and Unitil have submitted long-term contracts for three energy storage projects that aim to deliver 1,068 MW/4,472 MWh of capacity in Massachusetts by 2030, as reported by the utilities and the Massachusetts Department of Energy Resources. The projects consist of Jupiter Power’s 700 MW/2,800 MWh Trimount, alongside Flatiron Energy’s 250 MW/1,000 MWh Energizar and 168 MW/672 MWh Salt Cod projects. When completed, these projects will provide clean energy during peak times and help ease transmission issues in Greater Boston and southeastern Massachusetts, where Eversource is testing localized virtual power plants to manage power supply…
California Extends Emissions Reporting Deadline California’s Air Resources Board (CARB) has announced a change to the deadline for businesses to comply with the state’s emissions disclosure law known as Senate Bill 253. This new deadline provides companies an additional three months to report their scope 1 and scope 2 greenhouse gas emissions, moving the deadline from August 10 to November 10. This extension not only offers extra time for compliance but also comes with plans for CARB to propose “limited changes” to the regulation. Earlier this year, CARB approved these regulations, part of a push to require certain companies to…
