Public Power Weekly
August 18, 2014: No. 33
Past Issues | Subscribe | Printer-Friendly | PDF | Advertise |
| Events Calendar | Classifieds
PublicPower.org | PublicPowerMedia.org | APPA Online Suppliers Guide | Public Power TV
In This Issue
Federal appeals court
upholds FERC's Order No.
1000 on transmission
planning
FERC is asked to reject
motion by New England
transmission owners, and to
set new 'just and reasonable'
incentives
APPA is pleased that the court said
Section 217(b)(4) of the Federal
Power Act "requires the Commission
to facilitate the planning of a reliable
grid"
Learn More
Watch
Missouri River Energy
Services breaks ground on
Red Rock Hydroelectric
Project
Consumer-owned utilities argue the
return on equity should be lowered
from 10.8 percent to no higher than
8.69 percent
Learn More
The project, which is due to be
completed in 2018, is expected to be
the second-largest hydropower
facility in Iowa
Learn More
APPA paper reviews smart
grid data privacy guidelines
APPA's headquarters will
move to northern Virginia
this week
The paper is meant to assist utilities
in developing their own individual
smart grid data privacy policies, said
the author, Paul Zummo
Learn More
Meet APPA's
Government Relations
Department
FERC "has a core statutory
obligation to protect consumers from
unjust and unreasonable rates"
Learn More
FMPA, Seminole ask FERC to
lower Duke Energy Florida
transmission rate of return
The new address will be on Crystal
Drive in Arlington, Virginia
Learn More
Arizona utilities form new
joint action agency
The Southwest Public Power
Agency "will be able to give
members economies of scale, in
terms of managing existing
APPA On Camera:
Some retiring plants may not
need to be replaced, Black &
Veatch says
The rise of distributed generation, in
particular, creates unique challenges
for utilities, the report said
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
resources and developing new
ones"
Learn More
Learn More
EPA denies requests to
reconsider RICE rule
Senators to request 60-day
extension of comment period
on EPA’s proposed CO2 rule
for existing plants
The agency's decision is a positive
outcome, said APPA's Alex
Hofmann
Learn More
States and stakeholders need time
to assess the effects the proposal
will have on the U.S. energy system,
the senators say in their draft letter
Learn More
National Electrical Safety
Code is 100 years old; public
comment invited on 2017
preprint
IEEE will accept public comment on
the 2017 "preprint" from Sept. 1 until
next May
Learn More
WAPA announces proposed
allocation of power from
Boulder Canyon Project
Western will accept comments on
the proposed allocation through
Sept. 19
Learn More
Short takes. . .
A financial breather for Puerto Rico
utility... New York governor applauds
state-owned utility for upgrade in
credit rating outlook
Learn More
Program announced for 2014
Legal Seminar
The Legal Seminar will be held Oct.
19-22 in San Antonio
Learn More
APPA offers Aug. 19
webinar on rate making
for utility boards and
councils
This is the fifth in a series of
seven accounting and finance
webinars designed to educate
public power professionals
involved in financial planning
Learn More
Aug. 20 DEED Webinar:
Customizable Weather
Database Helps Utilities
Handle Customers’ HighBill Complaints
This webinar will be offered at
no charge to members of
APPA's Demonstration of
Energy & Efficiency
Developments program
Learn More
APPA Product Store
offers Street Lighting
Package
Two manuals are included:
Street Lighting Best Practices,
and LED Street Lighting
Handbook: A Handbook for
Registration open for
2015 Joint Action
Workshop
The workshop will be held Jan.
11-13 in Key West
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
Learn More
Small Communities
Learn More
Federal appeals court upholds FERC's Order No. 1000 on
transmission planning
A federal appeals court on Aug. 15 upheld Order No. 1000, the sweeping rule issued
by the Federal Energy Regulatory Commission (FERC) in 2011 that requires utilities
and grid operators to conduct large-scale planning of the nation's electric grid and
share the cost of new transmission projects.
Dozens of petitioners — including APPA and a number of its member utilities — had
urged the court to review parts of the landmark 2011 order. In a unanimous ruling by a
panel of three judges last week, the U.S. Court of Appeals for the District of Columbia
Circuit rejected those petitions.
The D.C. Circuit held, among other things, that:
• FERC had authority, under Section 206 of the Federal Power Act, to require
transmission providers to participate in a regional planning process;
• the commission had authority under Section 206 to require the "up front" allocation
of the costs of new transmission facilities among beneficiaries;
• FERC reasonably determined that regional planning must include consideration of
transmission needs driven by public policy requirements; and
• the commission reasonably relied upon the reciprocity condition in Order 1000 to
encourage non-public utility transmission providers to participate in a regional planning
process.
In its brief to the court, APPA had raised only the issue concerning the "public power
requirements" provision in Order No. 1000, arguing that it ran afoul of FERC’s
obligations under Section 217(b)(4) of the Federal Power Act. That section of law
requires FERC to use its authority to facilitate the planning and expansion of the
transmission grid to meet the reasonable needs of load-serving entities.
The D.C. Circuit’s opinion rejecting all of the challenges to FERC’s Order No. 1000
"comes as no real surprise" to the association, said APPA Regulatory Counsel Randy
Elliott, who argued APPA's case before the appeals court in March 2014. "Issues of
transmission planning and cost allocation are technical by their nature, and courts are
generally reluctant to second-guess the expert agency," he said.
"APPA is disappointed that the court rejected the argument that Order No. 1000 ran
afoul of FERC’s obligation under Section 217(b)(4) of the Federal Power Act," said
Elliott. However, he said, APPA is pleased that the court said the statute "creates a
requirement for the Commission."
In its Aug. 15 ruling, the court held that Section 217(b)(4) "requires the Commission to
facilitate the planning of a reliable grid," and added that this "is exactly what the
Commission has done" in Order No. 1000.
The D.C. Circuit's ruling "is significant because the court’s opinion will require FERC to
honor this statutory obligation as it implements Order No. 1000, and in all future cases
involving transmission planning and expansion," said Elliott.
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
1875 Connecticut Ave., NW
Suite 1200
Washington, DC 200095715
Voice : 202/467-2900
Fax : 202/467-2910
www.PublicPower.org
Public Power Weekly
Elliott said APPA also is pleased that the court rejected an argument by the Edison
Electric Institute saying that FERC was required to use Section 211A of the Federal
Power Act to mandate the participation by public power in the Order 1000 planning and
cost-allocation process.
"The court correctly held that Section 211A gives FERC discretionary authority," and
that the commission had no obligation to act in this instance, Elliott said. The court
"wisely left that issue to another day." —JEANNINE ANDERSON
Back To Top
FMPA, Seminole ask FERC to lower Duke Energy Florida
transmission rate of return
The Florida Municipal Power Agency and Seminole Electric Cooperative Inc. have
asked the Federal Energy Regulatory Commission to lower the rate of return on equity
in Duke Energy Florida's transmission formula rate from 10.8 percent to no higher than
8.69 percent. In their Aug. 12 joint complaint, FMPA and Seminole cite the guidelines
set forth in the commission’s recent Opinion No. 531. In that June 19 order, FERC
adopted a new methodology for determining the rate of return on equity (ROE) for
commission-jurisdictional electric utilities, and reversed its policy of adjusting ROEs to
reflect changes in capital markets. —R.V.
Back To Top
APPA paper reviews smart grid data privacy guidelines
A new paper by the American Public Power Association (APPA) consolidates smart
grid data privacy guidelines and recommendations from several different sources. The
model guidelines and recommendations center on consumer privacy protections
related to utilities sharing personal and energy usage information with third parties.
While not meant to be proscriptive or an exhaustive list of recommended policies, the
paper, Smart Grid Data Privacy Concerns: An Overview of Recommended Guidelines,
is intended to capture common principles that have emerged in the various model
guidelines thus far.
The paper by Paul Zummo, APPA’s manager of policy research and analysis, covers
guidelines that have been formulated by data privacy task forces established by the
North American Energy Standards Board and the Department of Energy, as well as the
University Vermont School of Law. California and Colorado rulemakings have also
been incorporated in the paper. The paper is meant to assist utilities in developing their
own individual smart grid data privacy policies, Zummo said. "A clearly established and
publicly available policy will mitigate at least some customer concerns about smart
meters in general, and will help clear the way for wider acceptance of smart meter
implementation," the paper notes.
Back To Top
Vice President, Integrated
Media and
Communications
Meena Dayak
202/467-2948
[email protected]
Editorial Director
Robert Varela
202/467-2947
[email protected]
Managing Editor
Jeannine Anderson
202/467-2977
[email protected]
Communications
Assistant
Fallon W. Forbush
202/467-2958
[email protected]
Manager, Integrated Media
David L. Blaylock
202/467-2946
[email protected]
Integrated Media Editor
Laura D’Alessandro
202/467-2955
LDAlessandro
@publicpower.org
Circulation
Susan Lynch
202/467-2970
[email protected]
Mali Liu
202/467-2987
[email protected]
Public Power Weekly is
published weekly except the
last week of the year by the
American Public Power
Association, 1875
Connecticut Ave. N.W.,
Washington, D.C. 200095715. Copyright © 2014,
American Public Power
Association.
Non-member subscriptions
to Public Power Weekly cost
$440. Non-member
subscriptions to Public
Power Daily cost $840. A
subscription to both
newsletters costs $995 per
year.
Advertising
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
FERC is asked to reject motion by New England transmission
owners, and to set new 'just and reasonable' incentives
A group of complainants led by the Massachusetts attorney general — including the
Massachusetts Municipal Wholesale Electric Company (MMWEC) — have asked the
Federal Energy Regulatory Commission (FERC) to reject a motion by transmission
owners in New England for clarification of two aspects of the commission's June 19
order on incentives for building transmission.
The American Public Power Association (APPA) and the National Rural Electric
Cooperative Association (NRECA), which both asked FERC last month for permission
to join the case as intervenors, joined in filing the Aug. 5 "answer of complainants" with
the commission. The case is Martha Coakley, Attorney General of the Commonwealth
of Massachusetts, et. al., v. Bangor Hydro-Electric Company, et. al.
Other complainants in the case are the Massachusetts Department of Public Utilities,
the Connecticut attorney general, Connecticut Public Utilities Regulatory Authority,
New Hampshire Office of the Consumer Advocate, Connecticut Office of Consumer
Counsel, Maine Office of the Public Advocate, Associated Industries of Massachusetts,
the Energy Consortium and Power Options Inc., Rhode Island Division of Public
Utilities and Carriers, Vermont Public Service Department, and the Industrial Energy
Consumer Group.
The requests for clarification by the New England transmission owners "are without
merit, and their efforts to limit the relief that may be afforded ratepayers under [FERC]
Opinion No. 531 should be denied," said Massachusetts and the other complainants.
FERC "has a core statutory obligation to protect consumers from unjust and
unreasonable rates. Any return on equity outside the zone of reasonableness is by
definition, unjust and unreasonable."
Opinion No. 531 implements a significant change in how FERC sets transmission base
returns on equity (ROE) for an electric utility. The order replaces the commission’s
longstanding use of a one-step discounted cash flow (DCF) methodology, which takes
into consideration only short-term growth projections, and will estimate a company’s
cost of equity through a two-step DCF methodology, which incorporates both shortterm and long-term dividend growth measures.
"Consistent with its pronouncements in Opinion No. 531, the Commission should find in
this proceeding that its determination of a new upper bound of the zone of
reasonableness serves as a cap on the New England Transmission Owners' overall
return on equity (i.e., base ROE plus incentives) for each and every transmission
project," said the petitioners. "The Commission should award refunds and set new just
and reasonable rates going forward."
On July 21, APPA and NRECA joined with MMWEC, New Hampshire Electric
Cooperative and others to seek rehearing of Opinion No. 531 (Docket No. EL11-66001).
The consumer-owned utility groups did not seek rehearing of FERC's decision to adopt
the two-step discounted cash flow methodology. Instead, they asked for rehearing for
the reason that FERC Commissioner John Norris identified in his partial dissent from
Opinion No. 531: "the decision to grant New England transmission owners an ROE at
the midpoint of the upper half of the zone of reasonableness is unjustified, lacks
reasoning to support it, and sets troubling precedent."
In their request for rehearing of the June 19 order, APPA and the others said Opinion
No. 531 would saddle New England customers "with hundreds of millions of dollars of
unjust and unreasonable charges." (See the July 23 Public Power Daily.) —JEANNINE
ANDERSON
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
For information on
advertising, contact Erik
Henson at Naylor LLC;
800/369- 6220 or
[email protected].
Classified Advertising
Go to Careers in Public
Power at
www.PublicPower.org or
contact Fallon W. Forbush
at APPA, 202/467-2958.
Public Power Weekly
Back To Top
Missouri River Energy Services breaks ground on Red Rock
Hydroelectric Project
Missouri River Energy Services (MRES), a joint action agency based in Sioux Falls,
S.D., broke ground Aug. 13 on the Red Rock Hydroelectric Project at Lake Red Rock
near Pella, Iowa.
The project is a retrofit of an existing Army Corps of Engineers dam on the Des Moines
River that will produce 36 megawatts of power and will have the ability to generate up
to 55 MW during peak seasons. MRES is building the project, which is being financed
by the Western Minnesota Municipal Power Agency (WMMPA). The project, which is
due to be completed in 2018, is expected to be the second-largest hydropower facility
in Iowa.
"The people of Iowa are thrilled the Red Rock Hydroelectric Project is moving forward,"
said Iowa Lieutenant Governor Kim Reynolds. He said the state "is leading the way in
finding the energy solutions that will power our economic growth."
"It is great to be here to celebrate the construction of a reliable, affordable, and
environmentally sustainable source of power," said Assistant Secretary of the Army JoEllen Darcy. "Today is a big step for this country's hydropower efforts."
"We are very excited about what this project means not only for the people of Pella
and the surrounding areas, but our municipal customers across Iowa, Minnesota, North
Dakota, and South Dakota," said MRES CEO Tom Heller. The project also is adding
renewable generation to the MRES energy portfolio while creating jobs in a four-county
area of Iowa, he said.
"Projects like the Red Rock Hydroelectric Project are major contributors to helping us
meet our future energy needs – both in Iowa and across the United States," said U.S.
Rep. Dave Loebsack.
MRES noted that the Red Rock project has been included in the Federal Infrastructure
Permitting Dashboard, which is designed to expedite the licensing process for critical
infrastructure projects. It is the only hydropower project on the "dashboard," MRES
said.
Voith Hydro will provide the turbines and generators for the project, while MWH
Americas will provide engineering services. Ames Construction is the general
contractor.
MRES has 61 member municipalities in Iowa, Minnesota, North Dakota, and South
Dakota that own and operate their own electric distribution systems. The Western
Minnesota Municipal Power Agency (WMMPA) is made up of MRES members in
Minnesota.
More information about the project is available at www.redrockhydroproject.com.
—JEANNINE ANDERSON
Back To Top
APPA's headquarters will move to northern Virginia this week
The American Public Power Association (APPA) is moving this Friday (Aug. 22) to a
new office across the Potomac River from where we are now. Starting on Aug. 22, our
new mailing address will be:
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
American Public Power Association
2451 Crystal Drive, Suite 1000
Arlington, VA 22202
Please send all correspondence, including applications for the Reliable Public Power
Provider (RP3) program, to the new address (but continue to mail checks and
payments only to our lockbox at P.O. Box 418617, Boston, MA 02241-8617).
The new location is still in the Washington, D.C. metro area, minutes from Reagan
National Airport and a short cab or Metro ride to Capitol Hill. APPA welcomes
members to visit us when you are in the area.
APPA’s other contact information remains the same. For more information, you may
visit our website, www.PublicPower.org, email us at [email protected], or call us
at 202/467-2000. Please bear with us, as there may be brief phone, email, and web
service interruptions between Aug. 22 and Aug. 25, while we relocate resources.
Back To Top
Arizona utilities form new joint action agency
Eighteen public and tribal utilities in Arizona are entering into an agreement to operate
a new joint action agency, the Southwest Public Power Agency (SPPA). The joint
action agency – authorized by state law – will manage, through a formal pool, all or
most of its members’ power resources and facilitate the supply of additional energy
needed to meet their customers’ loads, the utilities said. The initial pool members
include irrigation and electrical districts, municipal electric utilities and tribal utilities.
"The formation of SPPA will allow its participants to enhance the value of their power
supply and transmission resources and improve access to additional energy
resources," said Electrical District No. 3 General Manager Bill Stacy, the president of
the new agency’s board. "SPPA will be able to give members economies of scale, in
terms of managing existing resources and developing new ones. We see a lot of
benefits for our customers, particularly those in Arizona’s rural or tribal areas."
The new ED5-Palo Verde transmission project, to be operational in January 2015, is
an example of a project jointly undertaken by many of its members, SPPA said. A 25year 271-MW power purchase agreement and a proposed energy management
service agreement with Sempra Generation are additional examples of joint projects,
SPPA said.
The members of SPPA are: Aguila Irrigation District, Ak-Chin Energy Services,
Buckeye Water Conservation and Drainage District, Electrical District Number Two of
Pinal County, Electrical District Number Three of Pinal County, Electrical District
Number Four of Pinal County, Electrical District Number Five of Pinal County, Electrical
District Number Six of Pinal County, Electrical District Number Seven of Maricopa
County, Electrical District Number Eight of Maricopa County, Gila River Indian
Community Utility Authority, Harquahala Valley Power District, Maricopa County
Municipal Water Conservation District Number One, McMullen Valley Water
Conservation & Drainage District, Ocotillo Water Conservation District, Roosevelt
Irrigation District, Tonopah Irrigation District, and Town of Thatcher.
More information is available on www.SPPA.biz.
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
Back To Top
Senators to request 60-day extension of comment period on EPA’s
proposed CO2 rule for existing plants
Senators Deb Fischer, R-Neb., and Heidi Heitkamp, D-N.D., are inviting Senate
colleagues to sign on to a letter to Environmental Protection Agency (EPA)
Administrator Gina McCarthy. The letter requests that the comment period on the
proposed existing source performance standards (ESPS) to reduce carbon dioxide
emissions be extended by 60 days beyond the current deadline of Oct. 16, 2014. The extension is critical to ensure that state regulatory agencies and other
stakeholders have adequate time to fully analyze and comment on the complex rule
proposed by the EPA, the senators say. "If you are truly interested in detailed and
thoughtful comment in order to produce a rule that will actually work as intended, then
it is important to note that this cannot be adequately accomplished in only 120 days,"
they write in the draft letter.
States and stakeholders must have time to fully analyze and assess the sweeping
impacts of the proposal on the nation’s energy system, including dispatch of generation
and energy efficiency, the letter states. State environmental agencies must coordinate
their comments across multiple state agencies and stakeholders, including public utility
commissions, regional transmission organizations, transmission and reliability experts,
and others, the lawmakers point out.
The level of coordination required to comment is "unprecedented, extraordinary, and
extremely time consuming," say Sens. Fischer and Heitkamp. To provide detailed
assessments on how to meet emission reduction targets while maintaining the
reliability of the grid, states and utilities must thoroughly evaluate intra- and inter-state,
regional, and in some cases, international energy generation and transmission, the
senators write.
Senate offices have until the week of August 25 to sign on to the letter. The letter is
intended to be sent to Administrator McCarthy in the first week of September.
—MEENA DAYAK
Back To Top
WAPA announces proposed allocation of power from Boulder
Canyon Project
The Western Area Power Administration (WAPA) has announced its proposed
allocation of power from the Boulder Canyon Project (BCP) Post-2017 Resource Pool
in the Aug. 8 Federal Register. Western will accept comments on the proposed
allocation through Sept. 19, 2014, and announce the final allocation later this year.
WAPA said it received 107 applications for more than 590 megawatts from the
available resource pool of only 80.6 megawatts. The BCP Proposed Allocation was
determined by applying marketing criteria developed through a public process to the
applications, Western said.
Western will host three public information forums on the BCP proposed allocation on
Aug. 26, 27 and 28 in Las Vegas, Nevada; Ontario, California; and Tempe, Arizona,
respectively, followed by public comment forums on Sept. 16, 17 and 18 at the same
locations.
More information is available on the Boulder Canyon Project Remarketing website.
Back To Top
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
Program announced for 2014 Legal Seminar
The program has been announced for the 2014 Legal Seminar, the American Public
Power Association’s annual conference for attorneys representing public power
systems (including both in-house and outside counsel). The Legal Seminar will be held
Oct. 19-22 in San Antonio, Texas.
Topics on the 2014 Legal Seminar agenda include:
• Federal Legislative Update
• Water, Water Quality and Supply, and Potential Regulations Impacting Public
Power Utilities
• Internal Personnel Investigations: Nuts and Bolts to Achieve Results
• CFTC Regulations: New Developments for Public Power
• NERC Update: Reliability Assurance and Risk-Based Registration Initiatives
• Sharing Sensitive Information with Federal Agencies
• Insurance Topics for Public Power Utilities
• FERC Regulatory Update
• FERC Order No. 1000: Regional Transmission Planning Impact
• Dormant Commerce Clause Issues
• Utility 2.0: Opportunities and Challenges for the Public Power Business Model
• The Impact of EPSA v. FERC on Demand Response and FERC-State Jurisdiction
• Which Hat Am I Wearing? Considerations for In-House Counsel with Multiple
Responsibilities
• Ethical Considerations When Open Records Laws and Data Protection Collide
The Legal Seminar agenda will also include breakout sessions on:
• Engineering, Procurement and Construction Contracting Trends and Models:
What’s Best for Your Utility
• Making the FERC Hydro Process Work for Public Power
• Developments in Community Broadband
• Implications of a Western Imbalance Market for Public Power
• Contract, Rate, Service, and Security Issues Affecting Captive Rail Customers
• Federal Compliance on Lobbying Disclosures
Attendees will also have an opportunity to attend pre-seminar workshops on capacity
markets and resource adequacy, and environmental regulations for public power
utilities.
Detailed information about all these sessions is available on the Legal Seminar
website.
APPA will apply for Continuing Legal Education accreditation in mandatory CLE states.
For complete program and registration information, please visit
www.publicpower.org/LegalSeminar. —LEANNE NIENHUIS
Back To Top
Some retiring plants may not need to be replaced, Black & Veatch
says
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
Many retiring nuclear and coal power plants may not need to be replaced on a
megawatt-to-megawatt basis, according to Black & Veatch’s 8th annual Strategic
Directions: U.S. Electric Industry report. New technologies and distributed generation,
coupled with soft energy demand growth, enable utilities to replace retiring plants with
ones that produce less energy, the consulting firm said.
"This year’s Strategic Directions: U.S. Electric Industry report finds many utilities at a
crossroads," said Dean Oskvig, president of Black & Veatch’s energy business. "The
influx of new technologies, new energy sources and new generation approaches,
create immense challenges and opportunities for utilities. What has not and will not
change, however, is the mandate to deliver the ‘always on’ reliable electric service the
industry has provided for more than 100 years."
The report found that the rise of distributed generation in particular creates unique
challenges for utilities, requiring rapid changes to the grid to integrate new resources
and the ability to ramp up capacity to account for varying renewable energy output.
Where distributed generation reduces demand, utilities will have to revisit their current
revenue structure to ensure continued reliable service, Black & Veatch said.
"Every kilowatt that is now being produced by a third party or a consumer is a kilowatt
not being sold by the utility," said John Chevrette, president of Black & Veatch’s
management consulting business. "At the same time, utilities still carry the burden of
building, maintaining and operating the bulk of the power delivery system. Given the
high cost of maintaining these assets, we expect to see more utilities making the case
with regulators to adjust their business models."
The report also found that concern for cyber and physical security is growing.
Cybersecurity is among the top five industry issues, as ranked by utility survey
participants, Black & Veatch said, even though cybersecurity did not make the industry
top 10 list as recently as 2012.
Some other key findings in the report include:
• Half of the respondents said their company is planning to replace retiring coal and
nuclear power plants with gas generation. Natural gas will also be used as backup
power for renewable generation.
• Nearly 60 percent of utilities are updating emergency response plans in order to
improve resiliency to weather and unanticipated events.
• Utilities are working to provide consumers with resources to better manage energy
consumption. Almost one-third of utility respondents said their organization is offering
home area network solutions, such as smart thermostats, to support demand response
programs.
• More than 60 percent of utility leaders believe distributed generation will grow beyond
its current 5 percent market share of U.S. power generation by 2020.
The full Black & Veatch report is available as a free download at www.bv.com/reports.
Back To Top
EPA denies requests to reconsider RICE rule
The Environmental Protection Agency said Aug. 6 it has decided not to propose any
changes to its 2013 final amended rule governing emissions from reciprocating internal
combustion engines (known as the RICE rule). In response to requests for
reconsideration, the agency had considered changes in three areas: ultra-low sulfur
diesel fuel; reporting requirements; and conditions for operation for up to 50 hours per
year in non-emergency situations. The decision by EPA is a positive outcome, said
APPA Energy and Environmental Services Manager Alex Hofmann.
EPA’s decision not to revise the final amended rule is separate from ongoing litigation
over the RICE rule. APPA has intervened in that case (Delaware v. EPA, before the
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
U.S. Court of Appeals for the District of Columbia Circuit) in support of EPA (see
Public Power Daily, May 13, 2013).
Back To Top
National Electrical Safety Code is 100 years old; public comment
invited on 2017 preprint
For 100 years, the National Electrical Safety Code (NESC) has provided best practices
for the safety of electric supply and utility communication systems at both public and
private utilities.
"Steadily refined over 100 years, the NESC is a fundamental element in the culture of
safety that has gathered across electric power utilities," said Mike Hyland, NESC chair
and senior vice president of engineering services at the American Public Power
Association (APPA). "The work to enhance and update the code continues today, and
the success of the effort is quantifiable." Read more about the utility culture of safety in
Hyland's blog post.
See an infographic that outlines the NESC development timeline and history. The
NESC is a collaborative work, and is frequently revised with significant input from the
businesses and industries it serves.
The Institute of Electrical and Electronics Engineers (IEEE), the secretariat of the
NESC since 1972, facilitates a structured five-year process that invites open input on
the NESC’s ongoing refinement. From Sept. 1, 2014 through May 1, 2015, IEEE will
accept public comment on the 2017 "preprint" of the NESC. The preprint includes
proposals for changes in the code that are submitted by interested parties and
reviewed by a NESC subcommittee. This eight-month open commentary period allows
any interested party to review, affirm or suggest additional changes. The relevant
NESC subcommittees consider the proposed revisions and comments.
To learn more about how to participate in the ongoing open-commentary period and
submit input electronically, visit the NESC website. IEEE especially seeks the input of
consulting and specifying engineers to ensure that the NESC remains practical,
relevant and up to date. —MEENA DAYAK
Back To Top
Short takes. . .
Banks that are providing a line of credit to the Puerto Rico Electric Power
Authority gave the island utility a breather, The New York Times reported Aug.
14. The banks said PREPA has until March 31, 2015, to make good on principal
repayments that originally came due at the end of July. That announcement "is an
important milestone in the transformation of PREPA, and gives us a clear line of sight
to the future," said Harry Rodríguez, president of the authority’s board. The utility said
it would continue to pay interest on the total amount due, $671 million. —J.A.
Fitch Ratings has revised its credit rating outlook for the New York Power
Authority in New York state from stable to positive and has affirmed NYPA’s AA
rating. New York Gov. Andrew Cuomo on Aug. 15 applauded the Fitch move, along
with other recent upgrades in the state's ratings. "Following the recent 'triple play' of
upgrades to the state’s overall credit rating from Standard & Poor’s and Moody’s as
well as Fitch Ratings, this positive assessment of NYPA is a testament to the progress
we have made over the last few years to put the state’s fiscal house in order," Cuomo
said. "I am especially proud of the exceptional leadership shown by NYPA President
and CEO Gil Quiniones and NYPA Chairman John Koelmel, which helped make this
upgrade possible." —J.A.
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
Back To Top
APPA offers Aug. 19 webinar on rate making for utility boards
and councils
On Tuesday, August 19, from 2 to 3:30 p.m. Eastern time, APPA will hold a
webinar on "Electric Rate Designs – Rate Structures to Promote Financial
Stability or Energy Conservation." This is the fifth in a series of seven accounting
and finance webinars designed to educate public power professionals involved in
financial planning (including general managers, finance and accounting personnel
and rate analysts) about timely issues while earning CPE credits.
Electric utilities tend to be a fixed-cost industry and fluctuations in sales due to
the economy or weather can often result in problems with cash flows, debt
covenants or result in the utility not achieving its financial targets. This webinar
will cover rates that promote financial stability and potential political, social and
environmental issues, as well as rates that promote energy conservation and
issues the utility should be aware of when considering conservation rates. The speaker, Mark Beauchamp, president of Utility Financial Solutions in Holland,
Mich., will discuss the following topics:
• Declining block rates;
• Increased customer (facilities) charges;
• Decoupling distribution charges;
• Power cost adjustments;
• Standby rates;
• Distribution rates that reflect cost of service;
• Inclining block;
• Feed in rate tariffs;
• Net metering; and
• Seasonal rates.
Upcoming webinars will address: rate structures to promote financial stability or
energy conservation, line extension policies, and performing a utility financial
check-up. Each webinar is worth 0.2 continuing education units, 1.5 professional
development hours and 1.5 continuing professional education credits. Webinars
can be taken individually or as a series for a discounted rate. All webinars are
recorded and previous events can be purchased from the APPA Product Store.
For more information, visit www.APPAAcademy.org or contact Meghan Riley at
202/467-2919 or [email protected]. —LEE KRINZMAN
Back To Top
APPA Product Store offers Street Lighting Package
The APPA Product Store now offers two publications as part of the Street
Lighting Package, a package designed to help your utility manage street lighting
operations.
Street Lighting Best Practices provides guidelines and a training program for
street light design, construction, operation, and maintenance. Purchasers will
receive via email a link to the five-module training tutorial that accompanies the
book. This publication was sponsored by American Municipal Power, Inc.
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
LED Street Lighting Handbook: A Handbook for Small Communities is written for
utilities considering an LED street light retrofit. Readers will learn how to analyze
the costs and benefits of an LED streetlight retrofit, how to prepare bid
documents, and what other small communities discovered through their own
projects. This publication was prepared by the Iowa Association of Municipal
Utilities (IAMU) with funding by the American Public Power Association’s
Demonstration of Energy & Efficiency Developments (DEED) program and the
Iowa Energy Center.
To purchase the package or these publications individually, visit
PublicPower.org/store or e-mail [email protected]. —MATTHEW
KONJOIAN
Back To Top
Aug. 20 DEED Webinar: Customizable Weather Database Helps
Utilities Handle Customers’ High-Bill Complaints
APPA is offering a webinar on Aug. 20 called "Customizable Weather Database
Helps Utilities Handle Customers’ High-Bill Complaints." The webinar will take
place from 2 to 3:30 p.m., Eastern time.
Weather data (temperatures and/or degree days) can be very useful to customer
service representatives when talking to customers with high-bill complaints. While
daily weather data is available on the internet any utility wanting to use this data
must create and constantly update a database that contains this information.
A recently completed project by the Oklahoma Municipal Power Authority’s
created a weather database that can be customized by any utility to help
customer service representatives when talking to customers about high-bill
complaints. It generates a report for any billing cycle as opposed to calendarmonth periods, and compares recent actual and long-term average weather data
for the billing period.
The speakers will be Roger Farrer, energy services manager, Oklahoma
Municipal Power Agency (OMPA); and Palma Lough, energy services specialist,
with OMPA.
This webinar will be offered at no charge to members of APPA's Demonstration
of Energy & Efficiency Developments (DEED) program; $89 for APPA members
who are not members of DEED; and $179 for others. To find out if you are a
DEED member, click here.
For more information, or to register, go to APPA's website.
Back To Top
Registration open for 2015 Joint Action Workshop
Registration is now open for the American Public Power Association's 2015 Joint
Action Workshop. The Joint Action Workshop is an annual event for joint action
agencies and their members to meet informally and discuss emerging policy,
regulatory, and power supply issues, and other topics related to the governance
and management of joint action agencies.
The Joint Action Workshop will be held January 11-13, 2015, at the Marriott Key
West Beachside Hotel in Key West, Fla. The Joint Action Workshop is open
exclusively to CEOs and senior management of joint action agencies, their board
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
and commission members, and public power utilities who are members of joint
action agencies. The agenda for the Joint Action Workshop will be available in
September.
To make hotel reservations or to register, go to
www.publicpower.org/JointActionWorkshop. —LEANNE NIENHUIS
Back To Top
CLASSIFIEDS
Generating station shift supervisor— Due to the pending retirement of two longterm employees, the Burlington Electric Department in Vermont is seeking to fill a
full-time position at its 50-megawatt, wood-fired generating station: McNeil
Generating Station. This position is responsible for the overall operation of the
McNeil Generating Station, utilizing wood, oil, or gas during the assigned 12-hour
rotating shift. Qualifications: The ideal candidate will possess a high school diploma
with additional vocational or technical training, and prior experience in a solidfueled, steam-electric generating plant. Burlington, Vermont, is located on the shore
of Lake Champlain and has highly accredited schools, a great outdoor sports and
hunting, and excellent nearby ski areas, including Stowe, Sugarbush, and
Smuggler’s Notch—to name a few. Compensation: This position provides an
excellent benefits and compensation package, including up to $35.37 per hour,
Blue Cross-Blue Shield health insurance, a traditional pension, and extremely
generous time off benefits. Apply: For a complete job description and city of
Burlington application, visit our website at www.burlingtonvt.gov/hr, or contact
Human Resources by phone at 802/865-7145. If interested, send a resume, cover
letter, and a completed city of Burlington application by Sept. 4 to: City of
Burlington, Human Resources Department, 179 S. Winooski Ave., Burlington, VT
05401. EOE. Women, minorities, and persons with disabilities are highly
encouraged to apply.
Vice president of business operations— The American Municipal Power, Inc.,
(AMP) in Columbus, Ohio, is seeking a vice president of business operations to
oversee all AMP-owned properties, vehicles, and equipment. The individual will be
responsible for the budgets of all phases of these business operations. The
candidate will oversee the Forestry Program and AMPO, Inc., and assist the
president in strategic planning and program/project development. Qualifications:
The candidate must possess excellent leadership, organizational, and
communications skills, and demonstrate the ability to make decisions and take
appropriate actions. The candidate should have superior educational credentials
and experience in public power and risk hazards. Apply: For the complete
description of this position, please visit our website at www.amppartners.org. EOE.
Vice president of generation services and operations— The American
Municipal Power, Inc., (AMP) in Columbus, Ohio, is seeking a senior vice president
of generation services and operations to oversee all functions of the Power
Generation Group, including all generation resources. The position provides the
overall executive oversight and strategic planning of the organization’s generation
portfolio. Qualifications: The candidate must possess excellent leadership,
organizational, and communications skills. The candidate should have superior
educational credentials and experience in the public generation field. The candidate
should have knowledge of electrical engineering and maintenance procedures and
practices. Apply: For the complete description of this position, please visit our
website at www.amppartners.org. EOE.
Technical services superintendent— The Oberlin Municipal Light and Power
System (OMLPS) in Ohio is accepting applications for the position of full-time
technical services superintendent in the Electric Technical Services Division. Duties
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
include supervision, planning, and coordination of the activities of the Electric
Technical Services Division staff within the Electric Department. Minimum
qualifications: Candidates must possess a bachelor's degree with three years
relevant work experience or a high school diploma, or equivalent, that is
supplemented with electrical engineering or related courses, and seven or more
years of relevant work experience, or an equivalent combination. Candidates must
also possess a valid state of Ohio class "A" commercial driver's license.
Compensation: The salary range is $56,591 to $98,924 per year, depending on
qualifications. Apply: Application packets are available at the Oberlin City Hall (85
S. Main St., Oberlin, OH 44074) and online at www.cityofoberlin.com. The closing
date for the position is Monday, Aug. 25, at 4:30 p.m. The city of Oberlin is an equal
employment opportunity employer and a drug-free workplace.
Distribution superintendent— The Oberlin Municipal Light and Power System
(OMLPS) in Ohio is accepting applications for the position of full-time distribution
superintendent in the Electric Distribution Division. Duties include supervision,
planning, and coordination of the activities of the Electric Distribution Division staff
within the Electric Department. Minimum qualifications: A bachelor's degree is
preferred, but candidates must possess a high school diploma or equivalent that is
supplemented with electrical engineering or related courses, and seven or more
years relevant work experience, or an equivalent combination. Candidates must
also possess a valid state of Ohio driver’s license. Compensation: The salary range
is $56,591 to $98,924 per year, depending on qualifications. Apply: Application
packets are available at the Oberlin City Hall (85 S. Main St., Oberlin, OH 44074)
and online at www.cityofoberlin.com. The closing date is Monday, Aug. 25, at 4:30
p.m. The city of Oberlin is an equal employment opportunity employer and a drugfree workplace.
Engineering and electric operations manager—Lebanon Utilities in Indiana
currently has a job opening for an engineering and electric operations manager.
The position, under the direction of the general manager, is responsible for the
planning, engineering, designing, and managing of projects for electric
transmission, distribution, and substation facilities in a safe and environmentally
responsible manner. Qualifications: A bachelor's degree in electrical engineering is
preferred; civil engineering considered. Strong written and verbal communication
skills are also necessary in order to deal with a wide range of personalities, both
inside and outside of the organization. Apply: If interested, please call 765/4828395 for a complete job description.
Check out APPA's career services on the Web
Visit the Career Center at PublicPower.org. Our career center allows job seekers to
upload resumes, and recruiters to obtain resumes from job seekers. Classified ads
in Public Power Daily and Public Power Weekly cost 70 cents per word for APPA
members, and 80 cents per word for nonmembers, for a one-week run. Job posting
subscriptions are available in packages of five, 10, or unlimited for a full year. The
weekly deadline for placing a classified ad is every Thursday at 12 p.m. (Eastern
time). If you have questions about classified ads, please write to
[email protected], or call 202/467-2958.
Back To Top
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
EVENTS CALENDAR
Webinar – Electric Rate Designs: Rate Structures to Promote Financial Stability or Energy
Conservation
August 19
DEED webinar – Customizable Weather Database Helps Utilities Handle Customers'
High-Bill Complaints
August 20
Webinar – Line Extension Policies: Contributions in Aid of Construction
September 9
Webinar – Using Advanced AMI Technology to Move from AMR to AMI
September 10
Business and Financial Conference
Portland, Oregon
September 14-17
Webinar – Smart Grids Enable Smart Cities: Insights into the Benefits New Technologies
Offer Public Power Communities
September 23
NERC Critical Infrastructure Protection (CIP) Version 5 Compliance Program Development
Workshop
Scottsdale, Arizona
September 29-30
Fall Education Institute
Scottsdale, Arizona
September 29-October 3
Webinar – Achieving Excellence in Public Power Governance
September 30
Public Power Leadership Workshop
Scottsdale, Arizona
October 1-3
Webinar – Performing a Utility Financial Check-Up
October 16
Legal Seminar
San Antonio, Texas
October 19-22
DEED webinar – Measuring Energy Savings Using Non-Intrusive Devices Inside
Residential Customer Homes
October 23
Customer Connections Conference
Jacksonville, Florida
October 26-29
Grid Security Summit
Arlington, Virginia
November 12-13
Webinar – It's a Wrap: A Look Back at Legislative, Regulatory, and Political Developments
in 2014
December 9
For a full APPA Events Calendar, visit Publicpower.org.
Back To Top
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]
Public Power Weekly
Copyright © 2014, American Public Power Association
http://www.naylornetwork.com/app-ppw/newsletter-v3.asp?issueID=30582[8/18/2014 12:09:52 PM]