Regulators: Vogtle Nuclear Expansion Can Proceed

The Georgia Public Service Commission has voted to allow Georgia Power to continue work on the two-unit Vogtle expansion.

Regulators had called for more information on the expansion after the bankruptcy of former contractor Westinghouse threw the project into uncertainty, including scenarios for its total cancelation. The vote was originally scheduled for February, as a cancelation move before December 31 would have saved Georgia Power ratepayers $150 million.

The project has run into multiple delays and construction overruns, and could cost as much as $25 billion to finish. Georgia Power now anticipates the two units will be finished in 2022.

Toshiba, parent company of Westinghouse, agreed to pay the full balance of its $3.2 billion payment guarantee earlier this month. Also, Secretary of Energy Rick Perry has made available up to $3.7 billion in additional loan guarantees.

New Solar Project Signs Record Low PPA

A power purchase agreement for an in-development solar project has netted what the Rocky Mountain Institute has called the lowest reported contract for distributed photovoltaic solar energy in the United States.

The 3-MW Carrizozo project, developed and owned in New Mexico by SoCore Energy, signed a contract with the Otero County Electric Cooperative for less than 4.5 cents per kWh. RMI provided project analysis and supported the competitive procurement process.

Carrizozo is expected to come online in March 2018. The project does not receive tax credits or subsidies.

“The Carrizozo solar project allows us to deliver renewable energy to our members while also saving them money,” Mario Romero, chief executive of Otero County Electric Cooperative, said.

Northeast States Sue EPA Over Midwestern Pollution

A group of eight states in the northeast have sued the Environmental Protection Agency over air pollution originating from nine western and southern states.

The suit aims to force the EPA to impose tighter controls on emissions, which are coming from power plants and other sources in Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, Virginia and West Virginia, Reuters reported.

The coalition is being led by New York Attorney General Eric Schneiderman, who called for the nine states to be added to the Ozone Transport Region and its stricter pollution controls.

The states, including Connecticut, Delaware, Maryland, Massachusetts, New York, Pennsylvania, Rhode Island and Vermont originally made the request in 2013, resulting in a consent decree to force the EPA to make a decision whether to add the states to the Ozone Transport Region by October 2017. EPA head Scott Pruitt did not add the states.

Approval Sought for Gas Plant in Florida

Seminole Electric Cooperative officially filed plans with regulators for a 1,050-MW gas-fired power plant to be built in Putnam County, northeast Florida.

If approved, the plant would replace one of two 650-MW coal-fired units operating at the site, WJCT reported.

Seminole officials said the new plant is part of an effort to diversify Seminole’s portfolio, which includes less coal use and more solar generation.

Dominion Activates 81 MW of Solar in South Carolina

Dominion Energy announced it has activated two South Carolina solar projects totaling 81 MW, one of which is the largest in the state.

The company’s 71.4-MW Solvay Solar Energy-Jasper County, S.C., facility near Ridgeland has a long-term power purchase agreement with SCE&G. Solvay, an international chemicals and advanced materials company with sites in Charleston, Greenville, Piedmont, Rock Hill and Spartanburg will purchase all of the associated renewable energy credits for 15 years.

Dominion Energy’s 10-MW Ridgeland Solar project has both a PPA and REC agreement with SCE&G.

In total, Dominion Energy brought online 466 MW of solar generating capacity in 2017 in California, North Carolina, South Carolina and Virginia. The company invested more than $900 million in those projects.

Siemens Gamesa to Provide 23 Onshore Wind Turbines in Italy

Siemens Gamesa Renewable Energy has received orders for two new onshore wind projects in the Basilicata region of southern Italy.

The company will soon deliver 13 SWT-3.0-113 direct-drive units to European Energy’s 39 MW project in Tolve and 10 G97-2.0 MW turbines to a 20 MW project near Capoiazzo. The orders include long term service agreements including advanced remote monitoring and diagnostics.

Siemens will deliver the turbines to the Tole project in the third quarter of 2018. Featuring 113-meter rotors, the turbines are expected to perform reliably and flexibly in the demanding wind conditions of the Basilicata province.

Turbines for the Capoiazzo project, featuring 97-meter rotors, are also expected to be delivered in the third quarter of 2018.

Overall, the Italian government expects the share of renewables to increase from 17.5 percent now to 27 percent in 2030.

Gas Plant to Replace Coal in Michigan’s Capital City

The Lansing Board of Water & Light announced plans to build a 250-MW gas-fired power plant at the site of one of the coal plants the utility plans to retire.

The plant will begin construction adjacent to the 155-MW Erickson Power Plant, which will be taken offline by 2025, the Lansing State Journal reported.

Additionally, the 375-MW Eckert Power Plant will shut down in 2020.

Dick Peffley, general manager of BWL, said the location was chosen to allow the utility to reuse existing infrastructure.

The closure of both plants will lower BWL’s carbon emissions by 80 percent, though the utility will still have a power purchase agreement with Detroit Edison Company’s coal-fired Belle River Plant.

Alliant Energy Purchases 170-MW Wind Project

Alliant Energy announced it has purchased the 170-MW English Farms Wind Farm under development in central Iowa.

Details of the transaction with developer Tradewind Energy were not announced. Alliant will build and own the 69-turbine project, with construction set to begin in 2018.

Alliant Energy has approval from state regulators in 2016 and 2017 to add up to 1 GW of wind energy in the state at a cost of $1.8 billion, which would be enough for the utility to generate one-third of its electricity from wind by the end of 2020.

Unit Closes at San Juan Generating Station

The first of two units to be shut down at a coal-fired power plant that has served customers throughout the American Southwest for decades is no longer in operation.

Officials with New Mexico’s largest electric utility say Unit 3 at the San Juan Generating Station was switched off just after midnight and the other unit will be turned off this weekend as Public Service Co. of New Mexico looks to meet a federally-mandated deadline.

It’s part of an agreement with state and federal regulators and other stakeholders to reduce haze-causing pollution in the Four Corners region, where New Mexico, Arizona, Colorado and Utah meet.

The rest of the San Juan plant could close as early as 2022 while another coal-fired plants in neighboring Arizona is scheduled to close in 2019.

SRP Rolls Out 1,300 Square-Mile Area Network

Salt River Project has begun rolling out a 1,300 square-mile Field Area Network project in Arizona in collaboration with their partner company, MiMOMax Wireless.

The ten-year rollout of radio communication solutions will provide visibility over SRP’s large-scale network of industrial infrastructure. Enabling centralized monitoring and control of its distributed water and power systems, SRP’s new FAN will also be used to monitor and control power flows into and out of the grid from a number of advanced solar installations.

SRP acquired 2 MHz of spectrum in the 700 MHz Upper A Block in 2015 and put out a tender for a partner to provide the communications infrastructure for the new FAN. With available spectrum being both scarce and expensive, the challenge for SRP was to find a partner who could maximize their data throughput in a narrowband channel — the key point of difference offered by the MiMOMax Wireless technology.  Utilizing MIMO (Multiple Input, Multiple Output) technology and offering very low latency, the MiMOMax Wireless solution optimizes data throughput and allows for rapid feedback on the state of the network.

Empire District Announces 800 MW of Wind

The Empire District Electric Company announced it would develop an additional ٨٠٠ MW of wind in its service territory, which covers six states.

The new wind generation is expected to be established by the end of 2020. Requests for approvals have been filed in Missouri, Kansas, Oklahoma and Arkansas.

In a press release, Empire said improved wind turbine technology and lower costs helped drive this additional development, which is expected to more than triple the amount of its wind generation.

Additionally, the Joplin Globe reported Empire’s Missouri application included the eventual closure of its ٢١٣-MW Asbury coal-fired power plant near Asbury, Missouri. No timetable was given for its closure.

SCE Proposes Methods to Meet Climate Goals

Southern California Edison proposed a suggested framework designed to help the state of California meet its strict emissions reduction goals.

SCE incorporated a dramatic increase of carbon-free electrical generation from 40 percent today to 80 percent by 2030. The utility said large-scale wind, solar and hydroelectric power would be used in conjunction with energy storage and distributed rooftop solar.

Other components of the framework include growing the use of electric vehicles, including passenger cars and heavy-duty vehicles, to more than 7 million by 2030, and increasing electrification of commercial and residential space and water heating.

The framework also supports California’s cap-and-trade system.

Military Spending on Microgrids to Surpass $1 Billion in 10 Years

The U.S. military is set to embrace microgrids in a big way, according to a new report.

Navigant research predicted microgrid spending by the Department of Defense is set to grow from $453.4 million in 2017 to $1.4 billion in 2026.

Navigant indicated microgrid use will reduce the military’s heavy reliance on fossil fuel imports and improve physical and cyber energy security. Additionally, microgrids can help reduce the $Ù¤ billion the military spends annually on its ٥٢٣ installations and ٢٨٠,٠٠٠ buildings.

“The DOD has played a remarkably consistent role in commercializing new technologies that provide tremendous social benefits within the larger civilian realm of society, including microgrids,” said Peter Asmus, principal research analyst at Navigant Research.

Navigant noted the Trump administration’s desire to increase military spending as well as tensions with North Koria could also provide more opportunities for microgrid investment.

NextEra Plans Two 20-MW Solar Facilities in Maine

NextEra is in the planning stages of two solar facilities in Main, each of which will have a capacity of ٢٠ MW, the Press Herald reported.

One of these would be on 150 acres in the town of Clinton, while the second would be on 240 acres in Fairfield. The Clinton facility is being developed under the name of Winslow Solar, a subsidiary of NextEra.

Both facilities are set for activation by the end of 2019.

Additionally, the Press Herald said NextEra is planning a solar facility of an unspecified size in Moscow, and a 75-MW facility in Farmington.

New Mexico Seeks More Generation to Replace San Juan

New Mexico’s largest electric provider on Monday put out a request for proposals for hundreds of megawatts of power to fill a future void as the utility plans ahead for weaning itself from coal-fired generation over the next several years.

Public Service Co. of New Mexico plans to close two units at the San Juan Generating Station in northwestern New Mexico before the end of the year to meet a federal mandate aimed at reducing haze-causing pollution in the region. By ٢٠٢٢, the rest of the plant could close.

In an announcement late last week, the utility said it is looking for a combination of sources that can ensure the reliability of a system that serves a half-million customers around New Mexico. It pegged the amount at 456 megawatts.

The utility also is encouraging renewable and battery-storage options.

Vistra, Dynegy Announce Merger

Previous speculation concerning Vistra and Dynegy was on the money, as the two companies announced they plan to merge.

The boards of directors of both companies approved an all-stock merger plan that would give Dynegy shareholders 0.652 shares of Vistra Energy stock for each share of Dynegy common stock they own, creating a single company projected to have a combined market capitalization of over $10 billion.

In the joint press release, the companies said the merger would combine Dynegy’s generating capacity and retail footprint with Vistra’s integrated ERCOT model, creating the lowest-cost integrated power company in the industry and position the company as the leading integrated retail and generation platform throughout key competitive power markets in the U.S.

The combined company would serve 240,000 commercial customers and 2.7 million residential customers in five states, and own 40 GW of generating capacity.

U.S. Wind Development Reaches Highest
Recorded Levels

A combined 29,634 MW in new U.S. wind facilities are either under construction or in advanced development, which is the highest level recorded by the American Wind Energy Association.

That total is also a 27 percent gain in the amount of wind capacity under development as of the third quarter of 2016, the association said in its U.S. Wind Industry Third Quarter 2017 Market Report. Approximately 30 percent of the new construction is in the Midwest, with another 23 percent in Texas, 20 percent in Mountain West states and 18 percent in Plains states.

Wind developers finished 534 MW of wind capacity during the third quarter, bringing year-to-date installations to 2,892 MW. Of that total, 98 percent was installed by GE Renewable Energy, Siemens Gamesa Renewable Energy and Vestas.

Grand River Dam Authority Dedicates New Unit

In October, Officials with the Grand River Dam Authority dedicated its new power unit, which incorporates the first J-class turbine to become operational in the Americas, according to Mitsubishi Hitachi Power Systems.

The $500 million project at the Grand River Energy Center began construction in January 2015 after the adoption of GRDA’s new, long-term electric generation plan. GRDA’s Unit 3, which replaced a coal-fired generator, includes an M501J advanced-class gas turbine, the first to be constructed by Mitsubishi Hitachi Power Systems at its Savannah Machinery Works facility in Georgia, and an MHPS steam turbine.

The MHPS turbine was delivered on time to the site and achieved First Fire on March 14 in its first attempt. During the startup process, the M501J turbine exceeded its performance guarantee and GRDA was able to sell power to the grid ahead of schedule.

“We’re proud to announce that the first J-series in the Americas beat our performance guarantee and achieved 62 percent combined cycle efficiency. GRDA now owns the first 60 hertz combined cycle power plant in the world to make this claim,” said Paul Browning, president and CEO of MHPS Americas.

GE, New York Power Authority Partner on “World’s First Digital Utility”

GE announced a wide-ranging software and professional services agreement with the New York State Power Authority to advance NYPA’s goal to be the world’s first fully digital utility.

NYPA intends to work with GE to explore the digitalization of every aspect of its operations, from its 16 generating facilities and 1,400 miles of electricity transmission network, to the more than 1,000 public buildings it monitors throughout the state. NYPA’s goal is to use digital solutions to optimize its entire electricity value network, from generation to consumption, for reliability, affordability, and the lowest possible carbon footprint.

“NYPA is committed to the further build-out of our vision to become the first digital utility, creating a real-time digital replica of our assets and automating many back-office processes,” said Gil C. Quiniones, president and CEO of the New York Power Authority, “As we move forward in this journey and embrace best practices, we will look to become the first digital utility, end-to-end, which will better enable us to achieve Gov. Andrew M. Cuomo’s goal of New York generating 50 percent of its electricity from renewable resources by 2030.”

Lawmakers Pass Bill Supporting Millstone

Connecticut lawmakers have given final legislative approval to a bill that could potentially change the rules for how the Millstone Nuclear Power Station sells the electricity it generates.

The House voted 75-66 on Thursday in favor of the bill, which allows state regulators to determine whether the power should be sold on the clean energy market like solar, wind and hydroelectric.

The bill previously passed the Senate and now moves to the governor.

Eastern Connecticut legislators, both Democrats and Republicans, praised the bill’s passage, saying it will help protect jobs and solidify the region’s economy. Dominion Energy, which owns the power plant in Waterford, has warned it needs the legislation to help ensure the financial viability of the plant.

Michigan Regulators Approve Two Gas Plants

State regulators have approved a utility’s plan to build two natural gas-fueled power plants in the Upper Peninsula.

The Michigan Public Service Commission on Wednesday endorsed Upper Michigan Energy Resources Corp.›s plan to build the plants in Negaunee and Baraga Townships at a cost of $٢٧٧ million.

The plants that would produce a combined 183 megawatts are expected to go into service in 2019 and replace the Presque Isle Power Plant, which is scheduled to close in 2020.

The Federal Energy Regulatory Commission last week cut by nearly $23 million the costs associated with the Presque Isle power plant that can be passed on to Upper Peninsula electric ratepayers.

Gov. Rick Snyder, the Michigan Agency for Energy and Attorney General Bill Shuette praised the action by the commission.

Siemens Gamesa to Provide 67 Turbines to Norway Wind Project

Siemens Gamesa Renewable Energy will supply wind turbines to Nordlicht, a 281-MW wind project being developed west of the city of Tromsภin northern Norway. The order calls for 67 SWT-DD-130 OptimaFlex wind turbines rated at 4.2 MW.

Siemens Gamesa will also provide service and maintenance for more than 20 years.

Nordlicht is the largest onshore wind project being developed in Europe this year. Once commissioned in summer 2019, it will supply clean energy for approximately 50,000 Norwegian households.

The major investor in the project is the German pension fund à„rzteversorgung Westfalen-Lippe, the transaction has been structured and is managed by Prime Capital. à„VWL is an institution of the Medical Association of Westphalia-Lippe and is one of Germany’s largest occupational pension funds. Prime Capital AG is an independent financial services provider and asset management firm, specialized in Alternative Investments, in particular in Absolute Return, Infrastructure Investments and Private Debt. In the role of a co-investor, Siemens Financial Services Division is supporting the project.

GenOn to Shut Down Oxnard Plant

One week after receiving word that its plan to build a new gas plant in Oxnard, California was blocked, a subsudiary of NRG has announced it will shut down its existing gas plant in the city.

The 560-MW, gas-fired Mandalay Generating Station operated by GenOn will cease operations by Dec. 31, NRG told the Ventura County Star. The plant was not selected by a bidding process with Southern California Edison two weeks ago, and would no longer have a contract with a utility.

David Knox, a spokesman for the company, said operating the plant is no longer financially feasible, especially since two of the three units at the plant are due for inspections.

A motion to close the plant has been filed with the Public Utilities Commission. Knox said there are no plans to demolish the plant at this time.

Wartsila to Supply Smart Generation for Arizona Plant

Wartsila has signed a contract to provide smart power generation equipment for a ٢٠٠ MW natural gas power plant under development in Arizona.

Tucson Electric Power, a subsidiary of Fortis Inc., is building the plant on the site of an existing generating station that currently consists of both natural gas-fired and renewable energy assets. TEP selected ten Wartsila 50SG gas-fueled engines offering fast-start flexibility, which will address intermittency and other challenges associated with an expanding renewable energy portfolio. TEP’s goal is to generate at least 30 percent of its power from renewable sources by 2030.

The Wartsila engines will replace two of the existing plant’s older steam generators and improve the plant’s overall efficiency. This will also reduce the plant’s emissions of nitrogen oxides by approximately 60 percent, or 350 tons per year.

Dominion Energy to Purchase SCANA

Dominion Energy and SCANA Corporation have reached an agreement for the two companies to merge in a $14.6 million deal.

The stock-for-stock merger would give SCANA shareholders 0.669 shares of Dominion Energy stock for every share of SCANA stock, the equivalent of $55.35 per share. The stock swap is valued at $7.9 billion, with the remaining $6.7 billion coming from the assumption of debt.

Dominion’s deal includes a $1.7 billion write-off of assets from the failed V.C. Summer 2 and 3 expansion, which would allow the utility to eliminate costs to customers over 20 years rather than the previously-proposed 50-60 years. Overall, customers will experience a five percent rate reduction, or an average of $7 per month.

SCANA continued to struggle in the wake of the August cancellation of the project, with CEO Lonnie Carter announcing his retirement, large financial losses and government investigations.

Santee Cooper Chairman Resigns Under Pressure

A nearly month-long effort by South Carolina Governor Henry McMaster to fire Leighton Lord, chairman of state-owned Santee Cooper, ended last week with Lord’s voluntary resignation.

Lord is the fifth utility executive to resign in the wake of the failed V.C. Summer nuclear expansion, The State reported.

McMaster officially began his efforts to fire Lord in a December 8 letter to Lord that accused him of failing to cooperate with the governor’s office on the fallout of the Summer cancellation, which cost Santee Cooper and SCE&G $9 billion.

Specifically, McMaster accused the company of resisting the release of a February 2016 report that indicated critical problems with the Summer expansion, as well as earlier drafts of the report. The project was not abandoned until August 1, 2017.

A week after McMaster’s letter, Lord sued to block efforts to fire him and claimed the governor’s charges were false.

OSHA: Florida Utility Ignored Rules in Deadly Accident

A federal agency says Tampa Electric Company ignored its own rules when performing a dangerous maintenance job at one of its plants that left five workers dead.

On Thursday, the Occupational Safety and Health Administration slapped the company with its most serious citation – a willful violation.

The Tampa Bay Times reports the company was also fined $126,749 for the June 29 incident. OSHA will also review whether to refer the case to the U.S. Department of Justice to consider criminal charges.

The utility has 15 days to contest the filings. Company spokeswoman Cherie Jacobs said in a statement that while they respect the process, they disagree with the “suggestion that we were willful or deliberately indifferent to the safety of workers.” She said they haven’t decided whether to contest the citations.

Public Service Co. of New Mexico Seeks Legislation to Ease Coal Closure Costs

New Mexico’s largest electric provider plans to get out of the coal business sooner rather than later and is proposing legislation that could ease the sting of closing a coal-fired power plant that has served customers around the Southwest for decades.

Public Service Co. of New Mexico wants legislative approval for a mechanism that would address how the utility recovers hundreds of millions of dollars in stranded costs that will result from closing the San Juan Generating Station earlier than planned.

The utility closed two units at the plant in December as part of an agreement to curb haze-causing pollution in the Four Corners region. It plans to close the remaining units in 2022, citing market conditions as a wave of utilities across the country look to divest their coal resources.

The New Mexico utility expected to recover as much as $560 million over the course of two decades through traditional financing, but an early closure changes the equation. By financing undepreciated capital through the highest rated bonds possible, utility officials say shareholders could still collect nearly 60 percent of that while saving customers $160 million.

The method has been used in other states, including in Florida where lawmakers passed a measure in 2015 that cleared the way for a utility to recover costs associated with the premature retirement of a nuclear power plant.

Whether the legislation makes it onto the agenda for the upcoming 30-day session is unclear as New Mexico lawmakers will be focused on budget issues and whatever else Gov. Susana Martinez deems a priority.