The holder of the U.S. federal hydropower license for a dam spanning the international border with Canada border has petitioned for approval to surrender that license, citing economic considerations.
At issue is the Forest City Project, located on the East Branch
of the St. Croix River which forms the international boundary between the United
States and Canada. The Project operates under conditions set by the International Joint Commission (IJC) in accordance with the Boundary Waters Treaty of 1909, as well as a license issued by the U.S. Federal Energy Regulatory Commission. The project currently operates under a license issued on November 23, 2015. That 30-year license expires on October 31, 2045.
Licensed by the Commission as Project No. 2660, the project includes the U.S. portions of a 540-foot-long,
12-foot-high earth dam, an impoundment spanning several lakes, and appurtenant facilities. There are no generating facilities located at the
project; rather, the Forest City Project operates as part of a headwater storage system along with two other projects licensed to Woodland Pulp -- West Branch Project No. 2618 and Vanceboro Project No. 2492. Two hydroelectric generation projects are located downstream on the St. Croix River from these storage facilities, the unlicensed Grand Falls and Woodland hydroelectric projects.
On December 23, 2016, Forest City Project licensee Woodland Pulp LLC applied to the Commission to surrender its license. A cover letter attached to that application states, "Woodland Pulp has determined that the high cost of operating the Project pursuant to the new FERC license renders the Project uneconomical." In the surrender application itself, the company cited license provisions including new operating restrictions on reservoir pool elevation, a reservation of the Commission’s authority to require additional fishways if so prescribed by the Secretary of the Interior, and a requirement to develop a Historic Properties Management Plan (HPMP), as adding risk or cost. As noted in the surrender application, "After a comprehensive review of the conditions in the License, the
minimal contribution to downstream power generation, and the significant
added cost and increased complexity of the License, coupled with the
loss of flexibility required to comply with the License, Woodland Pulp
has concluded that it is not economic for the company to continue to
operate the project.
As described by the Commission in an April 6, 2017 public notice of the surrender application, the licensee proposes to remove the gates on
the west side of the spillway. According to the licensee, removing these gates will return water flow to natural flow conditions, and the Forest
City Dam will no longer act as the water control structure for East
Grand Lake, nor will it use, obstruct, or divert international boundary waters.
The Commission has docketed the surrender application as P-2660-028, and set deadlines for comments, protests, and interventions in the case.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Maine community solar procurement bill, LD 1444
Wednesday, April 26, 2017
This week a committee of the Maine state legislature is scheduled to hold a public hearing on a bill that would direct state regulators to enter into long-term contracts to procure 120 megawatts of large-scale community solar distributed generation resources by 2022. While Maine law currently allows some community-scale solar development, LD 1444, An Act Regarding Large-scale Community Solar Procurement, would create new structures geared toward state-sponsored long-term contracts and could open the door to broader ownership of or participation in community-scale solar in Maine.
If enacted into law as drafted, the bill would direct the Maine Public Utilities Commission to hold a series of four annual competitive solicitations by January 1, 2022. Each solicitation would seek to procure 30 megawatts of large-scale community solar distributed generation resources.
Through an initial solicitation to be held by March 1, 2018, the Commission would set a uniform clearing price or "standard solar rate" for all awarded bids in the initial procurement. Subsequent procurements would be subject to a declining block contract rate, under which the Commission would reduce the rate relative to the previous procurement by up to 3%. But if the Commission were to conclude that a subsequent solicitation was not competitive, no bidders may be selected and the capacity available in that solicitation will be deferred to a subsequent solicitation.
Any resource selected for contracting would be offered a standard contract for a term of 20 years at the specified contract rate. The resources' counterparty would be a "standard buyer" whose mission would be to "aggregate the output of the portfolio of distributed generation resources procured pursuant to this chapter and sell or use the output of these resources in a manner that maximizes the value of this portfolio of resources to all ratepayers." Initially, the bill designates each investor-owned transmission and distribution utility as the standard buyer for its own service territory, but it would allow the Commission to designate another entity if doing so is in the best interest of ratepayers. The benefits and costs of the procurement, shall be tracked and reviewed annually, and any gains would be allocated to from ratepayers of the project's host utility -- just as any losses would be recovered from those ratepayers.
On the project side, LD 1444 would establish a sponsor/subscriber model for large-scale community solar distributed generation resources. A project sponsor would own or operate the resource. A customer could subscribe for a proportional interest in such a resource, sized to represent at least one kilowatt of the resource's generating capacity. Several additional requirements include:
LD 1444 is scheduled for a public hearing before the Committee on Energy, Utilities and Technology on April 27, 2017.
If enacted into law as drafted, the bill would direct the Maine Public Utilities Commission to hold a series of four annual competitive solicitations by January 1, 2022. Each solicitation would seek to procure 30 megawatts of large-scale community solar distributed generation resources.
Through an initial solicitation to be held by March 1, 2018, the Commission would set a uniform clearing price or "standard solar rate" for all awarded bids in the initial procurement. Subsequent procurements would be subject to a declining block contract rate, under which the Commission would reduce the rate relative to the previous procurement by up to 3%. But if the Commission were to conclude that a subsequent solicitation was not competitive, no bidders may be selected and the capacity available in that solicitation will be deferred to a subsequent solicitation.
Any resource selected for contracting would be offered a standard contract for a term of 20 years at the specified contract rate. The resources' counterparty would be a "standard buyer" whose mission would be to "aggregate the output of the portfolio of distributed generation resources procured pursuant to this chapter and sell or use the output of these resources in a manner that maximizes the value of this portfolio of resources to all ratepayers." Initially, the bill designates each investor-owned transmission and distribution utility as the standard buyer for its own service territory, but it would allow the Commission to designate another entity if doing so is in the best interest of ratepayers. The benefits and costs of the procurement, shall be tracked and reviewed annually, and any gains would be allocated to from ratepayers of the project's host utility -- just as any losses would be recovered from those ratepayers.
On the project side, LD 1444 would establish a sponsor/subscriber model for large-scale community solar distributed generation resources. A project sponsor would own or operate the resource. A customer could subscribe for a proportional interest in such a resource, sized to represent at least one kilowatt of the resource's generating capacity. Several additional requirements include:
- The total expected annual value of all of a customer's subscriptions must not exceed 120% of the customer's most recent annual electricity bill.
- At least 50% of the subscriptions to a large-scale community solar distributed generation resource must be for 25 kilowatts or less, unless a municipality accounts for more than 50% of the subscriptions to a large-scale community solar distributed generation resource.
- A municipality may not account for more than 70% of the subscriptions to a large-scale community solar distributed generation resource.
LD 1444 is scheduled for a public hearing before the Committee on Energy, Utilities and Technology on April 27, 2017.
Maine PUC releases 2015 renewable report
Wednesday, April 19, 2017
Maine energy regulators have released a report on the state's electricity renewable portfolio standard, presenting data from 2015. The Maine Public Utilities Commission's Annual Report on New Renewable Resource Portfolio Requirement - Report for 2015 Activity [PDF] provides a look at Maine's renewables law, now in its tenth year on the books. It may also inform legislative discussions later this spring about the future of Maine's renewable portfolio standard.
In 2007, the Maine legislature enacted a law requiring that specified percentages of electricity that supply Maine’s consumers come from “new” or Class 1 renewable resources, ranging from 1% in 2008 to 10% in 2017. The law also required the Commission to report annually to the legislative energy committee on the status of this requirement and related compliance matters.
According to the report, Maine suppliers sourced approximately 891,757 renewable energy certificates or RECs, from 30 facilities, to comply with the 2015 requirement. Of these, 20 facilities were fueled by biomass, 4 by hydropower, 3 by wind and 1 by landfill gas. 25 out of the 30 facilities were located in Maine, with 2 in New York, and one each in Connecticut, Massachusetts, and Vermont. By REC volume, 99% came from facilities located in Maine.
The report also estimates the cost to Maine ratepayers of Maine's new renewable resource portfolio requirement. According to the report, the cost of RECs used for compliance in 2015 ranged from "approximately $2.00 per MWh to $42.50 per MWh, with an average cost of $13.16 per MWh and a total cost of $11,738,174." Adding in $3,018 in alternative compliance payments by one supplier, the report estimates a total cost to ratepayers during 2015 of $11,741,192. The report translates this total cost into "an average rate impact of about one-tenth of a cent per kWh. This is equivalent to about 55 cents per month, or 1%, for a typical residential customer; $50 per month for a medium commercial customer that uses 50,000 kWh per month; and $500 per month for a large commercial/industrial customer that uses 500,000 kWh per month."
Maine law also includes a Class 2 renewable portfolio standard, requiring an additional 30% of electricity come from existing renewables and other Class 2 resources. According to the Commission's report, the average cost of a Class 2 REC in 2015 was $0.28 per MWh, with a total cost of $965,818. The report notes that this is "equivalent to about 5 cents per month for a typical residential customer, and $4 and $40 per month for medium and large commercial/industrial customers with the usage levels described above, respectively."
This session, the 128th Maine Legislature is considering several bills that could affect Maine's renewable energy laws, including LD 532, An Act To Remove the 100-megawatt Limit on Hydroelectric Generators under the Renewable Resources Laws, as well as LD 1185, a concept draft which "proposes to enact measures designed to update Maine's renewable portfolio standards."
In 2007, the Maine legislature enacted a law requiring that specified percentages of electricity that supply Maine’s consumers come from “new” or Class 1 renewable resources, ranging from 1% in 2008 to 10% in 2017. The law also required the Commission to report annually to the legislative energy committee on the status of this requirement and related compliance matters.
According to the report, Maine suppliers sourced approximately 891,757 renewable energy certificates or RECs, from 30 facilities, to comply with the 2015 requirement. Of these, 20 facilities were fueled by biomass, 4 by hydropower, 3 by wind and 1 by landfill gas. 25 out of the 30 facilities were located in Maine, with 2 in New York, and one each in Connecticut, Massachusetts, and Vermont. By REC volume, 99% came from facilities located in Maine.
The report also estimates the cost to Maine ratepayers of Maine's new renewable resource portfolio requirement. According to the report, the cost of RECs used for compliance in 2015 ranged from "approximately $2.00 per MWh to $42.50 per MWh, with an average cost of $13.16 per MWh and a total cost of $11,738,174." Adding in $3,018 in alternative compliance payments by one supplier, the report estimates a total cost to ratepayers during 2015 of $11,741,192. The report translates this total cost into "an average rate impact of about one-tenth of a cent per kWh. This is equivalent to about 55 cents per month, or 1%, for a typical residential customer; $50 per month for a medium commercial customer that uses 50,000 kWh per month; and $500 per month for a large commercial/industrial customer that uses 500,000 kWh per month."
Maine law also includes a Class 2 renewable portfolio standard, requiring an additional 30% of electricity come from existing renewables and other Class 2 resources. According to the Commission's report, the average cost of a Class 2 REC in 2015 was $0.28 per MWh, with a total cost of $965,818. The report notes that this is "equivalent to about 5 cents per month for a typical residential customer, and $4 and $40 per month for medium and large commercial/industrial customers with the usage levels described above, respectively."
This session, the 128th Maine Legislature is considering several bills that could affect Maine's renewable energy laws, including LD 532, An Act To Remove the 100-megawatt Limit on Hydroelectric Generators under the Renewable Resources Laws, as well as LD 1185, a concept draft which "proposes to enact measures designed to update Maine's renewable portfolio standards."
Brewer Anheuser-Busch InBev sets global renewable electricity goal by 2025
Thursday, April 6, 2017
World’s largest brewer Anheuser-Busch InBev SA – parent to brands including Budweiser, Corona, Rolling Rock, Michelob, and Stella Artois – has committed to sourcing its electricity entirely from renewable sources by 2025. The move would make AB InBev the
largest corporate direct
purchaser of renewable
electricity in the global
consumer goods sector.
AB InBev makes 30% of the world’s beer, operating breweries in 50 countries. Collectively, these facilities consume 6 terawatt-hours of electricity a year, of which 7% is currently renewable-sourced. According to a March 28 press release, changing to 100% renewable electricity will reduce the company's carbon footprint by 30%, an estimated reduction of about 2 million tons of carbon dioxide a year.
While many multinational companies “invest” in renewables by buying renewable energy credits or certificates known as "RECs", AB InBev’s plan involves no REC-buying. The company reportedly intends to obtain 75 to 85 percent of its electricity through direct power purchases under a power purchase agreement or similar commercial arrangement, with remaining 15 to 25 percent coming from on-site distributed generation installations at its facilities, like solar panels. The company has committed to producing the energy in the country in which it is to be consumed.
Sourcing renewable energy is relatively easier in some countries, like Mexico. AB InBev announced that its largest facility, a Grupo Modelo brewery, had signed contracts to get all its electricity from wind power, including 220 MW to be built by Iberdrola SA in Puebla. Those new wind projects alone, destined to supply the brewery, represent a 5% increase to Mexico's renewable energy capacity. But in other countries, most notably in Africa, a lack of markets and infrastructure to connect industrial consumers with renewable energy may prove challenging. Also worth noting is that the company's commitment relates to electricity, and not directly to fuels or heat required for beer production and distribution.
Nevertheless, Anheuser-Busch InBev's commitment to sourcing 100% renewable electricity by 2025 across its global portfolio of facilities represents another data point in the trend of corporate direct investment in renewable energy. Corporations including Apple, Google, and Amazon have made a variety of commitments relating to renewable electricity, citing benefits ranging from environmental sustainability to locking in power pricing.
AB InBev makes 30% of the world’s beer, operating breweries in 50 countries. Collectively, these facilities consume 6 terawatt-hours of electricity a year, of which 7% is currently renewable-sourced. According to a March 28 press release, changing to 100% renewable electricity will reduce the company's carbon footprint by 30%, an estimated reduction of about 2 million tons of carbon dioxide a year.
While many multinational companies “invest” in renewables by buying renewable energy credits or certificates known as "RECs", AB InBev’s plan involves no REC-buying. The company reportedly intends to obtain 75 to 85 percent of its electricity through direct power purchases under a power purchase agreement or similar commercial arrangement, with remaining 15 to 25 percent coming from on-site distributed generation installations at its facilities, like solar panels. The company has committed to producing the energy in the country in which it is to be consumed.
Sourcing renewable energy is relatively easier in some countries, like Mexico. AB InBev announced that its largest facility, a Grupo Modelo brewery, had signed contracts to get all its electricity from wind power, including 220 MW to be built by Iberdrola SA in Puebla. Those new wind projects alone, destined to supply the brewery, represent a 5% increase to Mexico's renewable energy capacity. But in other countries, most notably in Africa, a lack of markets and infrastructure to connect industrial consumers with renewable energy may prove challenging. Also worth noting is that the company's commitment relates to electricity, and not directly to fuels or heat required for beer production and distribution.
Nevertheless, Anheuser-Busch InBev's commitment to sourcing 100% renewable electricity by 2025 across its global portfolio of facilities represents another data point in the trend of corporate direct investment in renewable energy. Corporations including Apple, Google, and Amazon have made a variety of commitments relating to renewable electricity, citing benefits ranging from environmental sustainability to locking in power pricing.
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