This afternoon, the Massachusetts Department of Energy Resources (DOER) released the much-anticipated results of the competitive procurement that will set the base compensation rates for the SMART program. The base compensation rates range from $0.17 in the NSTAR and Nantucket Electric territories to about $0.14 in WMECO. In Massachusetts Electric territory, the non-Nantucket territory served under the National Grid umbrella, the base compensation rate is about $0.16. A DOER summary table of the procurement is below. … More
Yesterday, FERC terminated the docket it opened in response to DOE Secretary Perry’s September proposal to compensate generators who maintain a 90-day fuel supply on-site. The intent of the proposal was to compensate generators who provide reliability and resilience attributes to the grid.
The decision was unanimous, though there were several concurrences. The commissioners were not persuaded that there is a reliability problem that requires immediate,… More
The Houston Chronicle reported that electric generation capacity from wind now exceeds that of coal in Texas. That’s not even counting Vistra’s recent announcement that it intends to close three coal-fired plants.
To those who might point out that wind is intermittent and it thus has lower capacity factors, the same Chronicle story reports at least one expert prediction that wind generation will exceed that of coal by 2019.… More
On October 3, 2017, the Massachusetts Department of Public Utilities (“DPU”) opened a new docket (D.P.U. 17-146) to investigate two issues: whether energy storage systems paired with net metering facilities are eligible for net metering and what should be done to clarify the rights of net metering facilities to participate in the Forward Capacity Market (“FCM”).
These issues have been percolating for years. In fact, D.P.U.… More
On September 28, 2017, Secretary of Energy Rick Perry sent a letter to FERC enclosing a Notice of Proposed Rulemaking (NOPR), which Secretary Perry asserts “requires the Commission-approved organized markets to develop and implement market rules that accurately price generation resources necessary to maintain the reliability and resiliency of our Nation’s electric grid.” Both the timing and substance of the proposal have been criticized by energy industry representatives,… More
Stakeholders have been following the development of “SMART” as a successor to the SREC program in Massachusetts for more than a year. (See our previous posts on the development process here, here, and here.) As it stands, SMART reflects a determined effort by the Department of Energy Resources (“DOER”) to craft a program that balances multiple interests and sets a sustainable path for solar development in Massachusetts. … More
Last week, the 10th Circuit Court of Appeals reversed and remanded a District Court decision approving a decision by the Bureau of Land Management to approve new leases on mines that account for 20% of U.S. coal production. The decision is just the latest in a series of cases making clear that courts will not approve new – or renewed – energy production that does not appropriately address the impacts of a project on climate change.… More
Earlier this month, State Street Global Advisors joined the chorus of money managers urging corporate boards, particularly those in “high-impact sectors” – meaning “oil and gas, utilities and mining” – to do a better job reporting risks related to climate change. SSGA’s recent “Perspective on Effective Climate Change Disclosure” is a serious document. To put it in formal technical jargon, SSGA whacks the heck out of most companies in high-impact sectors,… More
Recently, Massachusetts and the eight other New England and Mid-Atlantic states that participate in the Regional Greenhouse Gas Initiative announced a proposed plan for the continued implementation of RGGI (the region’s cap-and-trade program) between the years 2020 and 2030. The plan calls for an additional reduction of GHGs by 30% by 2030, beyond the RGGI 2020 levels. Emissions would be capped at about 75 million tons in 2021,… More
Initiative petition proponents filed with the Massachusetts Attorney General’s Office earlier this week 28 proposed initiative petitions that, if certified by the AG and endorsed by the requisite number of registered voters, could appear on the November 2018 ballot. (See this post for more details on the ballot initiative process.) Interested parties have until Friday, August 11 to (1) submit memoranda setting forth why the AG should or should not certify the measure,… More