Maine utility storm damage and response in question

As Maine recovers from widespread power outages following a storm, what will the event mean for how its public utilities design, operate, and maintain their electric grids?

On October 30, 2017, a storm brought winds and heavy rain to much of New England. In Maine, about 500,000 people lost power, with the state's largest utility Central Maine Power Company reporting the largest number of outages in the company's history and Emera Maine reporting the most widespread outages since 1998.

The utilities had taken some steps to prepare for the storm, describing advance planning to "ensure that adequate resources are in place to restore power outages that might occur as a result of the storm." After the storm passed, line crews from out of state arrived to provide mutual aid. Maine Governor Paul LePage issued an emergency proclamation to allow drivers of electrical line repair vehicles to operate additional hours during storm restoration efforts. By November 5 -- about one week after the storm -- the utility reported that it had restored power to about 99 percent of customers who had lost service, with about 6,000 customers left to go.

A convoy of utility repair trucks after the storm.

Now that the lights are back on in most homes and businesses, most people have cleaned spoiled food from refrigerators and freezers and are back at work. But the storm and outage have thrown a spotlight on the reliability of Maine's electricity grid, and utility preparation and response to storms. Some customers are complaining, pointing to the loss to the state economy caused by the blackouts, on top of personal inconvenience. As with past storms and outages such as the 1998 New England ice storm, preparation, operational response, and communications with customers and policymakers are focal points for complaint.

Some of the present complaints focus on the fact that what has been called the worst power outage in Maine history comes just two years after CMP completed its $1.4 billion Maine Power Reliability Program transmission upgrades. Other complaints focus on the utility's communications with customers -- while CMP's website provided real-time outage information during the storm including estimates on when service will be restored, the Portland Press Herald reported that CMP has acknowledged problems with the web listings, causing customer frustration over inaccurate information.

The Bangor Daily News cites a Maine Public Utilities Commission spokesman as saying that, following further information gathering, the regulatory agency may consider changes to regulation to better hold transmission and distribution utilities accountable for outages and storm restoration efforts. Maine law also allows the Commission to institute a complaint or investigation proceeding into any matter affecting utility service, and requires the Commission to investigate if ten or more aggrieved people file a complaint against a utility.

Nova Scotia tidal turbine installed

A Canadian tidal power developer has installed a turbine at a test site in the Bay of Fundy. Cape Sharp Tidal's project off Nova Scotia could demonstrate the feasibility of larger-scale marine hydrokinetic power plants connected to the mainland electricity grid.

Cape Sharp Tidal is a joint venture between Canadian utility Emera Inc. and marine turbine manufacturer OpenHydro.  Its project entails a grid-connected 4-megawatt array consisting of two tidal turbines.  The project is located at the Fundy Ocean Research Center for Energy (FORCE) site.  Headquartered near Parrsboro, Nova Scotia, FORCE is Canada's leading research center for in-stream tidal energy, with demonstration berths, a grid interconnection capable of accepting tidal power, and environmental monitoring capabilities.

This week Cape Sharp Tidal deployed the project's first turbine-generator, a 2-megawatt OpenHydro unit.  In subsequent work, crews interconnected the turbine cable tail to the FORCE site's main interconnection cable, an existing 16MW subsea export cable connected to an onshore substation.

Previous efforts to develop hydrokinetic tidal energy projects in the Bay of Fundy have met with difficulty.  While the bay offers large and powerful tides, weather and sea conditions can prove challenging, as can obtaining environmental and regulatory approvals.  A test tidal turbine deployed in 2009 was quickly destroyed; the turbine installed this week was originally slated for installation earlier but was delayed due to concerns over impacts to fisheries and the environment.  This week's installation represents a concrete step forward for Canadian tidal power.

Cape Sharp Tidal intends to install and connect a second turbine at the FORCE site in 2017.  According to the developer, its future plans -- subject to regulatory and business approvals -- could include a commercial-scale project of up to 300 megawatts capacity within 15 years.

Maine PUC solicits standard offer proposals

The Maine Public Utilities Commission has issued Requests for Proposals for retail electricity standard offer service.  At stake is the right to supply default electricity service to customers of Maine's two largest utilities -- as well as the price those customers will pay for power.

Maine restructured its electricity sector in the late 1990s.  Formerly, utilities owned both power plants and the wires and other infrastructure needed to supply consumers with electricity.  But as of March 1, 2000, investor-owned transmission and distribution utilities may own and operate wires, but generally cannot have a financial interest in or otherwise control generation or generation-related assets.  Power plants became "deregulated" from the perspective of state retail rate regulation, and were sold off by the utilities.  At the same time, Maine law created a new kind of entity called a "competitive electricity provider" to perform the role of supplying electricity as a commodity.

Customers can choose among supply offers from competitive electricity providers.  Suppliers can offer specific types of product (e.g. 100% renewable power, locally-sourced) or particular contract terms (e.g. pricing schedules, payment terms).  Most large industrial energy consumers choose competitive electricity supply under this option, as do many commercial accounts and some homes.

If a customer does not choose a competitive electricity provider, that customer is placed on "standard offer service" by default.  Maine law requires the Maine Public Utilities Commission to arrange for standard offer service though a competitive bid process, and to ensure that standard offer service is available to all customers in Maine.

The pending RFPs cover retail electricity standard offer service for calendar year 2016 for all customer classes in the territories of Central Maine Power (CMP) and Emera Maine-Bangor Hydro District.  Collectively, CMP and Emera Maine deliver approximately eleven million megawatt hours annually, of which about 45% currently comes from standard offer service.

The RFPs and related materials are available on the MPUC website.  Initial proposals are due on October 6, 2015. Following negotiation of non-price terms and a submission of final bid prices, the Commission is expected to select one or more proposals,  Service terms will begin on January 1, 2016.

Exporting compressed natural gas from the US

In a divided opinion, the Federal Energy Regulatory Commission has found that it does not have jurisdiction over facilities proposed by Emera CNG, LLC to compress natural gas for export to the Bahamas by ship.

Natural gas is an important fuel used globally for electric power generation, heating, and industry.  Throughout most of the U.S., an abundant supply of natural gas means domestic pricing for gas is lower than overseas.  This creates a potentially profitable opportunity to export natural gas from the U.S., if regulatory conditions allow.

Natural gas can be exported by pipeline as a gas, or by truck or ship as either compressed natural gas (CNG) or liquefied natural gas (LNG). Liquefying natural gas enables massive quantities of gas to be transported anywhere in the world, but requires the construction of expensive facilities to liquefy and regasify the fuel.  The federal Natural Gas Act gives the Federal Energy Regulatory Commission jurisdiction over the siting and construction of most LNG facilities in the U.S., and authorizes FERC to issue certificates of public convenience and necessity for LNG facilities engaged in interstate natural gas transportation by pipeline.  For example, Dominion Cove Point LNG, LP recently secured the FERC's approval for its Cove Point LNG export facility.

By comparison, compressing natural gas to high pressures is a relatively lower-cost way to improve the energy density of the fuel and reduce its transportation costs, albeit not to the degree of LNG.  CNG exports are already happening, and may soon increase.

Emera recently proposed to construct a CNG compression and truck-loading facility at the existing Port of Palm Beach in Riviera Beach, Florida, in order to export CNG to the Commonwealth of the Bahamas.  At the site, Emera would draw natural gas from the Riviera Lateral, a pipeline owned and operated by Peninsula Pipeline Company.  Emera would then dehydrate and compress the gas to fill containers that would be loaded onto trucks.  The proposed CNG facility would initially be capable of loading 6 million cubic feet per day (MMcf/d) of CNG, with expansion capabilities up to 25 MMcf/d.  Once loaded onto trucks, Emera will haul the containers to a berth about a quarter mile away at the Port of Palm Beach.  At the port, the containers will be loaded onto a roll-on/roll-off ocean-going carrier and shipped to Freeport, Grand Bahama Island, where the containers would be unloaded, the CNG decompressed and injected into a pipeline for transport to electric generation plants owned and operated by Emera affiliate Grand Bahama Power Company and other customers on Grand Bahama Island.

To reduce regulatory uncertainty, Emera petitioned the Federal Energy Regulatory Commission for a declaratory order that its project will not be subject to the Commission’s jurisdiction under the Natural Gas Act.  Last month, a majority of the FERC Commissioners found that the construction and operation of the CNG facility described by Emera would not be subject to FERC's authority over natural gas exports under the Natural Gas Act.  In particular, the majority opinion held that Emera’s facilities to compress and load CNG onto trucks are not jurisdictional export facilities.

In reaching this conclusion, the majority found that the proposed CNG facilities were unlike the border-crossing pipelines and coastal LNG terminals that the Commission traditionally has regulated under section 3 as import/export facilities, and more like existing, unregulated facilities that deliver LNG into trucks which are subsequently driven across the border into Canada or Mexico.  Indeed, the opinion cites the example of Xpress Natural Gas, which has a CNG plant in Maine that receives gas from an interstate pipeline and loads CNG containers onto trucks for delivery to customers in Canada and in New England.  The Commission does not regulate the CNG facility under either section 3 or 7, nor does it exercise jurisdiction over the trucks’ passage across the border under section 3.

The majority opinion similarly found that because Emera said that all of the natural gas to be compressed at Emera’s planned facility will be exported in foreign commerce to the Commonwealth of the Bahamas, the Commission’s section 7 jurisdiction over transportation and sales of gas for resale in interstate commerce would not be implicated by Emera’s proposal.

Notably, new Commissioner Norman Bay dissented from the majority opinion.  Noting language in section 3 of the Natural Gas Act giving FERC jurisdiction over natural gas exports, Commissioner Bay's dissent describes the majority’s argument as that because the CNG will leave Emera’s facility by truck and travel a quarter of mile before being loaded onto ocean-going carriers for export – rather than by a pipeline running across a border or to a tanker – the facility is not an “export facility” under section 3 of the Natural Gas Act. In Commissioner Bay's words, "It cannot be that the Commission’s jurisdiction turns on this 440-yard truck journey."

With FERC regulation under the Natural Gas Act behind it, Emera will still need other approvals to export CNG; for example, Emera has filed an application with the U.S. Department of Energy's Office of Fossil Energy for authorization under Section 3 of the Natural Gas Act for export of natural gas.

What role will CNG exports play in the U.S.'s energy future?

2/3/10: wind in the news in Maine and Nova Scotia

First Wind is considering developing another wind site in Maine, this time on Bowers Mountain in Carroll Plantation. First Wind is already Maine's largest wind operator, with 42 MW at Mars Hill and 57 MW online at Stetson Mountain sites -- plus 26 more MW at Stetson II coming online this spring, and DEP approval secured for a proposed 51 MW project in Oakfield. Next steps include compiling the data from the three test towers on the site, and engaging in a dialogue with the people living in the area. If you look at the map of Bowers Mountain, you can see that it's north of the Grand Lakes system, just south of Route 6, about halfway between Lincoln and the Canadian border at Vanceboro. From satellite photos, the area seems to have been mostly cut over relatively recently.

Wind's the thing today in Atlantic Canada, with reports that Bangor Hydro's parent Emera (also owner of Nova Scotia Power) has gobbled up the remaining shares of the Digby, NS wind project -- 20 turbines, with a 20-year power purchase agreement with Nova Scotia Power. Emera projects that the generators will be online by the end of 2010 and will produce enough energy to serve 10,000 homes. Nova Scotia Power also has a stake in two other wind projects being developed in Nova Scotia: a 49% interest in the Point Tupper project on the southwest tip of Cape Breton Island, and the entire Nuttby Mountain project in the Cobequid Mountains.

Maine's Governor Baldacci has traveled to Washington, DC to meet with President Obama and ten other governors on energy issues. His stated priorities include deepwater offshore wind and other ocean energy technologies, residential weatherization, and the potential for a federal climate change bill. Meanwhile, state representative Alexander Cornell du Houx, a young military veteran, has made his own trip to DC to work on energy issues.