Category Archives: gas transmittion system

Natural Gas Representatives Share Latest Information on Infrastructure Projects Progressing in Connecticut and New England

Wrap Up: Natural Gas Infrastructure Project Updates: Transmission and LDCs
Courtyard Marriott Hotel, Cromwell, CT
Presentations

On June 14, 2017, the Connecticut Power and Energy Society (CPES) hosted representatives from Connecticut-based gas utilities and an interstate pipeline company to provide an update on the natural gas expansion projects progressing in Connecticut and the larger New England region.  Gregg Therrien, Assistant Vice President of Concentric Energy Advisors and member of the CPES Board of Directors, moderated the panel discussion, which included remarks by:

  • Michael J. Dirrane, Director of Marketing, Enbridge
  • Erik Robie, Manager for Commercial Sales, Connecticut Natural Gas and The Southern Connecticut Gas Company
  • Chris Luca, Program Manager for Gas Expansion, Eversource

 
Michael Dirrane provided an update on the interstate pipeline expansion projects completed and advancing in New England. Enbridge, a leader in the gathering, transportation, processing and storage of natural gas, merged with Spectra Energy on March 1, 2017, creating one of the largest energy infrastructure companies in North America. Dirrane is responsible for managing the commercial relationships between Enbridge pipelines in the Northeast, including the Algonquin Gas Transmission (AGT) pipeline system, and gas utilities in the region. He said that natural gas supplies from the Marcellus and Utica shale plays have been a “game changer” for the industry since they came on line in the 2010 timeframe. Today, six billion cubic feet of natural gas per day is supplied by the Marcellus and Utica shale formations, and this gas, he said, is being transported all across the country. Dirrane provided an update on the Algonquin Incremental Market (AIM) and Atlantic Bridge expansion projects. The AIM project, completed in January 2017, expanded the pipeline capacity of the existing AGT pipeline system by roughly 342,000 dekatherms of natural gas per day. The Atlantic Bridge project, scheduled for completion in 2018, is designed to provide additional capacity on both the AGT and Maritimes & Northeast pipeline systems.
 
Erik Robie discussed the key role the 2013 Comprehensive Energy Strategy (CES) has played in the expansion of the natural gas distribution system in Connecticut, calling it the “playbook” for gas utilities in the state. The CES, issued by the Connecticut Department of Energy and Environmental Protection in February 2013, made several recommendations to advance to the state’s vision for a cheaper, cleaner, and more reliable energy future. One of the central goals of the 2013 CES, Robie explained, was to increase customer choice by providing residents and businesses greater access to natural gas. The 2013 CES, and its enabling legislation passed in 2014, established new rate and cost-recovery mechanisms, among other tools, to help move natural gas expansion projects forward in Connecticut. Since the 2013 CES was issued, Connecticut Natural Gas and The Southern Connecticut Gas Company have added 153 miles of new main and supplied more than 34,000 new customers with natural gas. Their goal is to install 180 miles of new main by the end of 2017.
 
Chris Luca underscored the importance of the 2013 CES in the expansion of the natural gas distribution system in Connecticut. Luca also discussed the importance of working with municipalities to minimize the costs associated with permitting, policing the construction site, and restoring the site to its original condition after installing new pipeline. Luca highlighted the Ansonia residential expansion project, one of three major gas expansion projects for Eversource in 2016. The project involved 4.25 miles of new pipe and provided access to natural gas for more than 294 residential properties. Eversource’s communications strategy with the municipality and residents was key to the project’s success, Luca said.           
 
All of the panelists’ presentations are available on the CPES website.

 

CPES Policy Committee Update: November 1, 2016

This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by a team recently formed with support from CPES, known as the New Energy Professionals. If you are interested in learning more about the New Energy Professionals, the Policy Committee, or if you have ideas for future policy updates, we would welcome your input and feedback. Please send comments to Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.

This week’s features:

  • New PURA Commissioner Named
  • DEEP Suspends Gas RFP
  • PURA Re-Opens Billing Docket for Business Customers
  • DEEP Selects Winning Bid for 2-20 MW Renewable Energy RFP
  • NE Clean Energy RFP Selects Proposals
  • ISO NE Discusses Winter Preparedness with FERC

 

REGULATORY DEVELOPMENTS

Malloy Nominates Katie Dykes as PURA Commissioner

On October 27, 2016, Gov. Dannel P. Malloy nominated Katie Dykes, deputy commissioner of the Department of Energy and Environmental Protection, to serve as a commissioner of the state’s Public Utilities Regulatory Authority. The press release is available by clicking here.

 

DEEP Suspends Gas RFP

On October 25, 2016, the Connecticut Department of Energy and Environmental Protection (“DEEP”) issued a Notice of Cancellation for its Natural Gas Capacity, Liquefied Natural Gas, and Natural Gas Storage procurement issued pursuant to Public Act 15-107 Section (1)(D). The notice indicates that DEEP may conduct similar solicitations in the future. The Notice is available by clicking here.

 

DEEP Notifies 2-20MW Bidders

DEEP has provided notice that it has selected winning bidders for its 2-20 MW Renewable Energy RFP issued pursuant to Public Act 15-107.  Winning bidders have not been publicly announced, however, all bidders have been contacted regarding their proposals. The RFP selection team has selected projects that represent approximately 375 megawatts (MWs) of clean energy for the state. The notice of selection is available by clicking here.

 

PUBLIC UTILITIES REGULATORY AUTHORITY NEW DOCKETS:

On October 26, 2016, the Public Utilities Regulatory Authority reopened the following proceeding, which may be of interest to you: 

 

REGIONAL DEVELOPMENTS

New England Clean Energy RFP Selects Proposals

The Soliciting Parties from the Commonwealth of Massachusetts and the states of Connecticut and Rhode Island have completed their evaluation of proposed projects received in response to the three-state Clean Energy RFP. The three states collectively selected projects that represent approximately 460 megawatts (MWs) of clean energy for the New England market. Information regarding the winning bidders is available by clicking here.

 

ISO New England Discusses Winter Preparedness Efforts with the Federal Energy Regulatory Commission

On October 20, 2016, Peter Brandien, Vice President of Operations for ISO New England, participated in a Federal Energy Regulatory Commission (FERC) panel discussion on winter preparedness in advance of the 2016-2017 winter season. Brandien discussed the ISO’s outlook on operations and market performance for the upcoming winter, highlighting the steps the ISO has taken to increase market efficiency and improve gas-electric coordination to address the challenges posed by the region’s constrained natural gas pipeline system. Brandien also discussed the winter reliability program in place to mitigate the reliability risks associated with inadequate fuel supplies during severe cold weather conditions.

A copy of the ISO’s remarks, filed with FERC, is available here.

 

LEGISLATIVE AFFAIRS

CONNECTICUT LEGISLATION:

The 2016 Connecticut regular session ended on May 4, 2016.  The 2017 Connecticut regular session begins January 4, 2017.

Information about the Energy and Technology Committee, including committee meetings and public hearings, is available at: https://www.cga.ct.gov/et/.

 

MASSACHUSETTS LEGISLATION:

The 2015-2016 Massachusetts formal session ended on July 31, 2016.  The 2017-2018 Massachusetts session begins January 4, 2017.

Information about the Joint Committee on Telecommunications, Utilities and Energy, including hearings and bills in committee, is available at: https://malegislature.gov/Committees/Joint/J37.

CPES Policy Committee Update: October 11, 2016

This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by a team recently formed with support from CPES, known as the New Energy Professionals. If you are interested in learning more about the New Energy Professionals, the Policy Committee, or if you have ideas for future policy updates, we would welcome your input and feedback. Please send comments to Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.

This week’s features:

  • PURA Opens Docket on CT Gas Forecasting for 2017-2021
  • ISO Begins Winter Reliability Program
  • FERC Issues Notice of Inquiry (NOI) on Utility Transactions
  • Important Dates for CT and MA 2017 Legislative Sessions

 

REGULATORY DEVELOPMENTS

PUBLIC UTILITIES REGULATORY AUTHORITY NEW DOCKETS:

On September 30, 2016, Connecticut Natural Gas and Southern Connecticut Gas Company each submitted a Biennial Forecast of Natural Gas Demand and Supply and, on October 3, 2016, Yankee Gas Services Company submitted a Biennial Forecast of Natural Gas Demand and Supply, which may be of interest to you:

  • Docket No. 16-10-06:  PURA Review of the Connecticut Gas Utilities Forecasts of Demand and Supply 2017-2021

 

REGIONAL DEVELOPMENTS

ISO New England Begins Preparations for the 2016/2017 Winter Season

This winter, ISO New England will administer another winter reliability program to mitigate the reliability risks associated with inadequate fuel supplies during cold weather conditions. The program will run from December 1, 2016 to February 28, 2017 and include an oil inventory component, an LNG component, and a demand response component. Requests to participate in the program were due to ISO New England by October 1, 2016. For more information, visit ISO New England’s Winter Reliability Solutions for 2015/2016 to 2017/2018 key project page: https://www.iso-ne.com/committees/key-projects/winter-reliability-solutions.

 

FEDERAL ENERGY REGULATORY COMMISSION (“FERC”)

On September 22, 2016 FERC issued a Notice of Inquiry (“NOI”) on the issue of whether FERC should change its approach/involvement in public utility mergers, acquisitions and dispositions under the Federal Power Act (“FPA”).  The full text of the NOI can be found here: http://elibrary-backup.ferc.gov/IDMWS/common/OpenNat.asp?fileID=14360320

 

LEGISLATIVE AFFAIRS

CONNECTICUT LEGISLATION:

The 2016 Connecticut regular session ended on May 4, 2016.  The 2017 Connecticut regular session begins January 4, 2017.

Information about the Energy and Technology Committee, including committee meetings and public hearings, is available at: https://www.cga.ct.gov/et/.

 

MASSACHUSETTS LEGISLATION:

The 2015-2016 Massachusetts formal session ended on July 31, 2016.  The 2017-2018 Massachusetts session begins January 4, 2017.

Information about the Joint Committee on Telecommunications, Utilities and Energy, including hearings and bills in committee, is available at: https://malegislature.gov/Committees/Joint/J37.

CPES Policy Committee Update: August 23, 2016

This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by a team recently formed with support from CPES, known as the New Energy Professionals. If you are interested in learning more about the New Energy Professionals, the Policy Committee, or if you have ideas for future policy updates, we would welcome your input and feedback. Please send comments to Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.

This week’s features:

  • MA Supreme Court Strikes Down DPU Order on Authority
  • Op-Ed Block Island Wind Farms

 

Regional & Industry Developments

MA Supreme Court Pushes Back on DPU Authority

On August 17, 2016, the Massachusetts Supreme Judicial Court struck down an order issued by the Massachusetts Department of Public Utilities last October which found that the Department has pre-existing authority to review and approve contracts for natural gas pipeline capacity filed by electric distribution companies.  The Court ruled that the Department erred in interpreting Massachusetts law as authorizing it to review and approve ratepayer-backed, long-term contracts by electric distribution companies for natural gas capacity. The Court concluded that the order is invalid “because, among other things, it would undermine the main objectives of the [Restructuring Act of 1997] and re-expose ratepayers to the types of financial risks from which the Legislature sought to protect them.”

The Court’s decision is available at: http://www.mass.gov/courts/docs/sjc/reporter-of-decisions/new-opinions/12051.pdf

 

(CT/RI) Op-Ed: Block Island Wind Farm: Windfall for the politically connected

Under the deal engineered by Carcieri, Rhode Island’s regulated utility, National Grid, will be required to pay 24.4 cents per kilowatt hour for the windmill power — more than twice current market rates.

Sweetening the deal even more, there are price escalators of 3.5 percent a year, so that by the end of the 20-year contract period, National Grid will be paying 50 cents per kilowatt hour from the wind farm.

http://www.theday.com/local-columns/20160820/block-island-wind-farm-windfall-for-politically-connected

 

 

CPES Policy Committee Update: June 21, 2016

This update features policy, regulatory, legislative, and regional developments in Connecticut and New England. The policy updates are compiled by a team recently formed with support from CPES, known as the New Energy Professionals. If you are interested in learning more about the New Energy Professionals, the Policy Committee, or if you have ideas for future policy updates, we would welcome your input and feedback. Please send comments to Paul Brady, CPES Executive Director, via email: pbrady@ctpower.org.

This week’s features:

  • ISO New England Prepares for Summer
  • FERC’s Clark comments on hybrid markets
  • Comments on the 2016 Comprehensive Energy Strategy

 

Connecticut Policy/Regulatory Update: Connecticut Department of Energy and Environmental Protection

Scoping comments for the 2016 Comprehensive Energy Strategy were due to be filed with the Department of Energy and Environmental Protection on June 14, 2016. The comments filed by various stakeholders are now available for review at the following link.

 

Regional and Industry Developments

Beating the Heat: How ISO New England Prepares for Summer Peak Demand

As the region enters the summer season, ISO New England prepares for conditions unique to the hot, humid summer months. Peak demand brought on by warmer weather and an increased reliance on energy-intensive technologies, such as air conditioning, can create complex challenges for the grid operator. According to the ISO’s summer outlook, New England is expected to have adequate electricity supplies to meet consumer demand this summer under normal weather and power system conditions. However, work on Spectra Energy’s Algonquin Incremental Market (AIM) natural gas pipeline expansion project may limit delivery of natural gas to some power plants in the region.

To maintain a reliable supply of electricity to New England’s residents and businesses, the ISO’s System Operations team must rely on carefully planned procedures to increase power generation and curb consumption during periods when demand for electricity threatens to exceed available capacity and reserves. High consumer demand or unplanned resource outages—when a transmission line or generator suddenly goes offline—are typically the reasons for these procedures to be enacted.

For more information on how ISO New England prepares for summer peak demand, see the ISO Newswire.

 

FERC’s Clark sees ‘really unsustainable future’ in hybrid markets

BISMARCK, N.D. — Disputes playing out in deregulated states like Illinois and Ohio over proposed subsidies for aging power plants highlight a key challenge facing the electricity industry at a critical juncture in its evolution, said Federal Energy Regulatory Commissioner Tony Clark.  “This issue is one that is going to be a huge issue between FERC and the states in those regions of the country that not only have real-time markets, but that have also chosen to restructure their electricity industry,” said Clark, whose term ends at the end of the month.  The former North Dakota utility regulator was back in his home state this week for the Mid-America Regulatory Conference, an association of regulatory commissioners and staff from 14 central states. He was the featured speaker at yesterday morning’s wrap-up session.  Clark said the tension between states and FERC doesn’t affect most central states, where vertically integrated utilities have retail electric rates set by state commissions. But the issue looms large in restructured states where FERC-regulated wholesale markets are relied upon to signal when to invest in or close old power plants or build new ones.

There is an ongoing debate in states including Illinois and Ohio over keeping certain unprofitable coal and nuclear plants running to preserve jobs and taxes and other policy reasons.  Clark said those out-of-market solutions pose a problem: specifically that those states have previously chosen to let the market dictate investment decisions.  “If you have lots and lots of out-of-market constructs that basically negate the price formation that’s happening in the market, you end up with a really, really unsustainable future,” he said.  http://www.eenews.net/stories/1060038896