Eversource, National Grid gas-reliant RFPs run afoul of state rules, greens say

Requests for proposals submitted by National Grid and Eversource run afoul of Massachusetts’ regulations requiring energy resources be considered on equal footing, according to a group of clean energy developers led by the Acadia Center, Smart Grid News reports…

AG report draws reactions along pipeline issue lines

The study shows that publicly funded natural gas pipelines in New England are unnecessary, said the Boston-based Acadia Center, one of more than a dozen energy, environmental and consumer groups that served as advisers. “This study is matched by facts on the ground,” said Peter Shattuck, Acadia’s Massachusetts director. “Common sense market reforms, improvements in energy efficiency, and new clean energy supplies coming online are already addressing winter price volatility, making it clear that massive outlays for subsidized gas pipelines are an unnecessary risk for Massachusetts citizens to bear.”

Report: New England Doesn’t Need More Natural Gas Pipelines

…Peter Shattuck says energy prices are coming down. He’s with the Acadia Center, a nonprofit think tank that advocates for clean energy solutions. He points out that Massachusetts’ electricity prices are about 25 percent lower than last year and it’s because of a combination of factors. “It’s better planning by the power plant owners, simply ensuring that their plants are ready to run, that they have adequate supplies of fuels and also significantly due to market reforms,” he says…

New Pipelines Unnecessary in New England: Facts Support Findings of MA Attorney General Study

BOSTON, MA – New publicly-funded natural gas pipelines in New England are unnecessary according to a new study by the Massachusetts Attorney General’s Office. This finding is validated by significant developments in the region’s energy markets, including:

  • Improved planning and market reforms that have avoided electricity price increases despite record cold weather
  • Expanded efficiency programs that are reducing energy demand cost-effectively
  • Large-scale procurement for natural gas alternatives such as wind and hydroelectric power
  • Backup generation that new natural gas power plants will install to reduce reliance on natural gas during infrequent peak demand periods

 

“Acadia Center has long argued that the public should not be forced into the novel role of underwriting expensive, risky, privately owned pipeline projects before a full and fair considerations of all viable alternatives,” said Daniel Sosland, President of Acadia Center. “The recommendations of this study prove the wisdom of not rushing to the conclusion that new pipelines are the only solution to a reliable and affordable energy system. It is encouraging to see that analysis is demonstrating that natural gas market reforms and clean energy alternatives offer better, more affordable options.”

 
Lower electric prices due to market reforms: Massachusetts’ electricity prices are declining due to improved planning and market reforms. Specifically, Eversource’s winter rate of 10.39 cents/kWh is 27% lower than last year’s rate, and National Grid’s rate of 13.03 cents/kWh is almost 25% lower than last year. Lower prices are due in part to market reforms implemented by the regional grid operator ISO-New England and planning requirements established by the Federal Energy Regulatory Commission. In conjunction these reforms are improving utilization of existing gas delivery infrastructure and leading power generators to develop plans for ensuring adequate fuel supplies during winter peak.

Energy efficiency reducing electricity demand: Massachusetts’ and other New England states’ aggressive energy efficiency programs are causing winter energy demand to decline, reducing the need for additional pipeline capacity and other energy infrastructure. Despite using conservative assumptions that overstate the cost and understate the impact of efficiency programs, ISO-NE predicts that winter peak demand will decline by 0.1% annually through 2024, and the actual impact of energy efficiency is likely far greater. Acadia Center has demonstrated that ISO-NE consistently overestimates energy consumption and peak demand: winter peak energy demand was 24% lower in 2014 than the 2006 projection, and total 2014 energy consumption was 17% lower than the 2006 projection. These inaccurate projections overstate the need for expensive energy infrastructure, including oversized natural gas pipelines that could be used to support gas exports overseas the majority of the year.

Clean energy procurement will displace gas generation: On November 12th Massachusetts, Connecticut and Rhode Island released a Request for Proposals (RFP) for significant quantities (up to 1,000MW plus) of hydroelectric, wind, and solar energy that will displace natural gas generation and reduce power sector natural gas demand. Legislative proposals in Massachusetts to procure additional hydroelectricity and wind could more than double the quantity of energy in the RFP, offsetting even more natural gas demand. It is worth noting that the costs for hydroelectricity and renewable energy are conservatively overstated in the Attorney General’s report, and actual prices for blended wind and hydroelectricity would have to be lower to compete in the regional electricity market.

Gas plants with limited backup generation: New power plants approved through the regional grid operator’s Forward Capacity Market Auction in early 2015 all include natural gas generation with oil backup. On the few coldest days when natural gas supplies are dedicated to meeting heating needs, these plants will run on oil. This modest, limited use of oil generation during winter peaks in the near term, before more renewable generation comes online, would have a far smaller impact on GHG emissions than new pipelines used year-round, and would be less expensive to consumers than pipeline expansion

“This study is matched by facts on the ground,” said Peter Shattuck, Massachusetts Director for Acadia Center who served on the report’s Study Advisory Group along with representatives from utilities, the natural gas industry, and clean energy and consumer groups. “Commonsense market reforms, improvements in energy efficiency, and new clean energy supplies coming online are already addressing winter price volatility, making it clear that massive outlays for subsidized gas pipelines are an unnecessary risk for Massachusetts citizens to bear.”

 
Peter Shattuck will be taking part in a press availability call at 11:30 EST today to discuss the findings of the report, joining leaders from the business, municipal, and health sectors, including:

  • Jed Proujansky, Selectman of Northfield, Massachusetts.
  • Andy Savitz, Director of Sustainability for the City of Newton and author of The Triple Bottom Line, a nationally-acclaimed handbook for business leaders seeking to embrace sustainable business practices.
  • Tedd Saunders, Chief Sustainability Officer at the Saunders Hotel Group.
  • Bill Ravanesi, Senior Energy Director with Health Care Without Harm.

 

CALL DETAILS:

Wednesday, November 18, 11:30 EST
Conference Call: 712-775-7031, PIN: 301-222-738.

 

Contact:

Peter Shattuck, Clean Energy Initiative Director
pshattuck@acadiacenter.org, (617) 742-0054 x103

Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107

 

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Acadia Center is a non-profit, research and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon and consumer-friendly economies. Acadia Center provides accurate and reliable information, and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.

Foul! National Grid, Eversource called on RFP

…A letter initiated by Acadia Center, non-profit clean energy research and advocacy organization, on behalf of clean energy developers calls for “fair consideration of alternatives to natural gas” in meeting the region’s electricity needs and a redrafting of the RFP to allow for participation of lower cost and lower risk clean energy options to meet the region’s clean energy needs…

Fair Competition Needed in Utility Energy Contracting

BOSTON, MA -Acadia Center joined with clean energy developers today in calling for fair consideration of alternatives to natural gas in meeting the region’s electricity needs. In a joint letter, Acadia Center and the other signatories request that utilities National Grid and Eversource redraft the solicitation to remove the current bias toward natural gas projects and ensure that a full array of cleaner, lower cost options are able to compete.

The letter is written in response to Requests for Proposals issued by the utilities on Friday October 23rd. The solicitation requires responses by November 13th – only a three week window – and seeks bids only from providers of liquefied natural gas, regional gas storage, and pipeline expansion projects. Eversource and National Grid are participants in at least one project that could qualify for contracts; the pipeline expansion and storage project Access Northeast.

The letter states: “In this RFP, the utilities limited their solicitation to a particular set of resources, gave notice to no other resources, and established a timeline so short, only their partners could submit timely responses. The RFP not only pre-judges the results by effectively barring competition, but also virtually guarantees that the Commonwealth’s ratepayers will pay more than necessary to achieve a reliable winter energy supply.”

The letter additionally notes that the proposed procurement does not appear to comply with Massachusetts Department of Public Utilities’ requirement that the proposed agreement compares favorably to “all energy resources reasonably available in the market that have the potential to address the objective of providing electricity at a reasonable cost and that compare favorably in terms of price and non-price factors.”

The procurement closes shortly before the expected release of a Regional Electrical Reliability Options Study undertaken by the Massachusetts Attorney General’s Office, and following the announcement of electricity rates for the winter of 2015-2016 that are lower than past years. Specifically, Eversource’s winter rate of 10.39 cents/kWh is 27% lower than last year, and National Grid’s rate of 13.03 cents/kWh is almost 25% lower than last year. In Rhode Island, National Grid’s proposed rate of 8.9 cents/kWh is over 20% lower than last winter’s basic service rates.

In an appendix to the letter, Acadia Center provides supporting information on the cost-effectiveness of energy efficiency as an alternative to natural gas supply. New England’s investments in energy efficiency have already proven valuable in winter: without the demand reductions achieved since 2000, ratepayers would have paid an additional $1.46B in winter 2014 alone. The appendix also describes how the region’s grid operator has consistently over-estimated future energy demand, potentially contributing to overbuilding of natural gas pipeline and other energy infrastructure. Specifically, Acadia Center demonstrates that ISO-NE has consistently overestimated energy consumption and peak demand, with actual energy demand coming in 17% lower in 2014 than the 2006 projection, and summer peak demand falling 20% in 2014 from 2006 predictions.

The letter and appendix can be found at: http://acadiacenter.org/document/joint-comments-on-massachusetts-utilities-gas-procurement/

Contact:

Peter Shattuck, Clean Energy Initiative Director
pshattuck@acadiacenter.org, (617) 742-0054 x103

Kiernan Dunlop, Communications Associate
kdunlop@acadiacenter.org, (617) 742- 0054 x107

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Acadia Center is a non-profit, research and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon and consumer-friendly economies. Acadia Center provides accurate and reliable information, and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.

How to: Critically Review Technical Reports

Analytical studies play a crucial role in the energy policy world. They help decipher complex energy markets and technologies and often affect policy decisions. This makes it important for decision makers and other policy stakeholders to critically analyze these studies.

The following steps will help you critically analyze data whether you’re a policy stakeholder or an interested third party:

  • Find the Technical Details – Whenever you encounter any new results or conclusions in a study, the first thing to do is look for the technical details of the analysis. These could be part of the main report in the form of appendices or a separate document. Within the technical details it is important to focus on the following components: scope, assumptions or data variables, data sources, methodology, and results and conclusions.
  • Understand the Assumptions or Data Variables, Scope and Caveats – Assumptions or data variables, analysis scope and caveats set up the context in which the study was done and also decide its applicability as they represent subjective aspects of the analysis. It is important to go over them to understand the potential and limitations of the analysis’ findings.
  • Investigate the Reliability of Data Sources – The data used in a study significantly affects the quality of its results and conclusions, making it important to note the reliability of data sources used in the study. If data used in a study is not properly sourced or referenced or the source is not credible, it may require further investigation.
  • Review the Methodology – The methodology section of a study outlays the mathematical models used to analyze the respective problem. Reviewing the methodology helps us understand the sophistication and detail with which the problem has been analyzed.
  • Apply What you Learned to the Results and Conclusions – The results and conclusions of a study generally contain the information relevant to the policy stakeholders’ decision-making process. A better understanding of the data used in a study can help gauge the limitation or applicability of the results and make sure the conclusions made are realistic.

 

These steps can help anyone look at analytical studies with a critical mind and will lead to a deeper understanding of the results, which is especially important when those results influence policy decisions.

 

 

 

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Varun Kumar is Policy Data Analyst in Acadia’s Climate and Energy Analysis (CLEAN) Center. He assists in the analysis of energy, climate and economic information as part of Acadia Center’s advocacy and research efforts.

Connecticut Can Move Up Energy Efficiency Rankings with Two Policy Moves

Connecticut’s 6th place ranking in ACEEE’s 2015 State Energy Efficiency Scorecard is a strong achievement. However, holding steady remains a challenge for the Nutmeg State as other peer states, like Oregon and Maryland, continue to improve their efficiency efforts. So where can Connecticut find more points for next year and perhaps even climb in the rankings? Here are two suggestions for (nearly) immediate gains.

Building Energy Codes: Putting in place modern building energy codes is crucial because it ensures that new buildings start off highly efficient. Connecticut has unfortunately not yet implemented the 2012 International Energy Conservation Code (IECC), a leading model energy code for new residential and commercial construction. Most leading states have already adopted the 2012 IECC and Connecticut law even required the state to adopt the 2012 IECC within 18 months of its publication date, but Connecticut is now almost three years past that deadline with no clear adoption date in sight. If the 2012 IECC were already in place, it would not only have earned a full point under ACEEE’s scoring, but also would have locked in major energy savings as all new construction would have had to comply with this more stringent code level for the last three years. Connecticut should commit now to a firm adoption deadline in early 2016.

Combined Heat and Power: Combined heat and power (CHP) is a way to generate electricity and produce heat through the use of a single fuel, usually natural gas. CHP projects are highly efficient because they generate electricity on-site – rather than at remote power plants – and they use the waste heat for heating or industrial needs. Connecticut was an early leader in deploying CHP, but has stalled recently, installing only 3.7 MW of new capacity in 2013 and 2014 combined. The state’s 2013 Comprehensive Energy Strategy tentatively determined that 100 MW of cost-effective CHP was potentially available. By establishing a comprehensive CHP program that seeks to acquire significant new capacity and that also sets production goals for CHP generation, Connecticut could gain an additional point with ACEEE. More importantly, Connecticut could accelerate the deployment of this industry-friendly local energy resource at a time when the state needs to protect and grow its manufacturing base. Connecticut policymakers should set up a robust CHP program through new legislation in the upcoming 2016 session.

With these two reforms, Connecticut could have earned two more points with ACEEE and moved up to 4th place in the 2015 efficiency rankings. Perhaps the scoring methodology for 2016 will change – and certainly other states will continue to improve – but if Connecticut wants to keep pressing forward with energy efficiency policy innovation, it should take a hard look at energy codes and CHP.

 

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Bill Dornbos is the Director of the Connecticut Office and Senior Attorney for Acadia Center.  Bill focuses on advancing policy and regulatory solutions that seek to transform the energy system and move Connecticut towards a climate-safe, sustainable future. Recent work includes advocating for expanded investment in cost-effective energy efficiency for all fuels and analyzing greenhouse gas emissions trends in the Northeast

Lacking Natural Energy Resources, Nutmeggers Embrace Efficiency

…”Energy efficiency is about doing the same amount of work, with less energy,” said Bill Dornbos, director of the Acadia Center in Connecticut, a non-profit, that among other projects, is helping to design energy efficiency plans for the state Department of Energy and Environmental Protection. “But if you kind of think of it another way, it’s also about preventing energy waste, which is costly, right? People needlessly paying for more energy than they need to buy to power their homes is a drag on the economy…”

Acadia Center Applauds Rhode Island’s Nation-Leading Efforts on Energy Efficiency

Rhode Island is tied with Massachusetts for first place in the utility-sector energy efficiency programs and policy category of the 2015 State Energy Efficiency Scorecard, released today by the American Council for an Energy-Efficient Economy (ACEEE), a national nonpartisan organization. In terms of the overall ranking, Rhode Island is tied with Oregon for fourth place behind Massachusetts (#1), California (#2), and Vermont (#3). This is the third year that Rhode Island has ranked in the top five states.

Least Cost Procurement, first implemented 8 years ago and extended for another 5 years this summer, is largely responsible for Rhode Island’s continued leadership on energy efficiency. “Rhode Island continues to be a leader when it comes to energy efficiency,” said Daniel Sosland, Acadia Center’s President. “Investing in low-cost energy efficiency instead of expensive electricity and natural gas helps Rhode Islanders lower their energy bills and spurs economic growth,” said Sosland.

“Lower energy bills means more money is left at the end of the month to spend on other things, and most of that spending happens locally,” said Leslie Malone, Senior Analyst with Acadia Center. Since 2008, Rhode Island has invested over $558 million in energy efficiency and consumers have realized $1.99 billion in economic benefits. In its 2016 Energy Efficiency plan – recently filed with the Public Utilities Commission – National Grid proposes investing over $83 million in cost-effective efficiency programs to deliver electric savings that are 47% less expensive than the cost of supply, and natural gas savings that are 15% less than the cost of supply. The investments in 2016 will generate more than $256.1 million in direct benefits over the life of the efficiency measures, and add over $386.9 million to Rhode Island’s Gross State Product (GSP) and generate over 4,220 job-years of employment.

Acadia Center is a member of the Energy Efficiency Resource Management Council (EERMC), the stakeholder council charged with assisting with the development, implementation, and review of energy efficiency programs in Rhode Island. The EERMC is critical to the success of energy efficiency in the states, and Acadia Center looks forward to working with fellow members, utilities and other stakeholders to make sure that the plans are implemented effectively to deliver cost savings through lower utility bills, emissions reductions, and clean energy job growth, in addition to broader economic benefits.

See the Scorecard at: http://www.aceee.org/state-policy/scorecard

 

Contact:

Leslie Malone, Senior Analyst
401-276-0600, lmalone@acadiacenter.org

Kiernan Dunlop, Communications Associate
617-742-0054 x107, kdunlop@acadiacenter.org

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Acadia Center is a non-profit, research and advocacy organization committed to advancing the clean energy future. Acadia Center is at the forefront of efforts to build clean, low-carbon and consumer-friendly economies. Acadia Center provides accurate and reliable information, and offers a real-world and comprehensive approach to problem solving through innovation and collaboration.