Showing posts with label boundary. Show all posts
Showing posts with label boundary. Show all posts

FERC sets carbon pricing and offshore wind tech conferences

Thursday, June 18, 2020

U.S. federal electricity regulators have scheduled technical conferences for this autumn to discuss issues related to two major policy initiatives: carbon pricing in organized wholesale electricity markets, and offshore wind integration in regional transmission organizations and independent system operators (RTOs/ISOs). The Federal Energy Regulatory Commission's scheduling of two technical conferences on these topics signals its interest in exploring the interplay between state energy and environmental policies and federally jurisdictional markets.

One technical conference regarding Carbon Pricing in Organized Wholesale Electricity Markets (Docket No. AD20-14-000) will be held on September 30, 2020, "to discuss considerations related to state adoption of mechanisms to price carbon dioxide emissions, commonly referred to as carbon pricing, in regions with Commission-jurisdictional organized wholesale electricity markets." The case has its genesis in a request for such an event, filed on April 13, 2020, by a broad coalition including Advanced Energy Economy, the American Council on Renewable Energy, the American Wind Energy Association, Brookfield Renewable, Calpine Corporation, Competitive Power Ventures, Inc., the Electric Power Supply Association, the Independent Power Producers of New York, Inc., LS Power Associates, L.P., the Natural Gas Supply Association, NextEra Energy, Inc., PJM Power Providers Group, R Street Institute, and Vistra Energy Corp. A number of other utilities, RTOs, and state interests also expressed support, prior to the Commission's issuance of a public notice on June 17 scheduling the event.

Another technical conference regarding Offshore Wind Integration in RTOs/ISOs (Docket No. AD20-18-000), to be held October 27, 2020, will be convened "to discuss whether existing Commission transmission, interconnection, and merchant transmission facility frameworks in RTOs/ISOs can accommodate anticipated growth in offshore wind generation in an efficient and effective manner that safeguards open access transmission principles and to consider possible changes or improvements to the current framework should they be needed to accommodate such growth."

Beyond the fact that the Commission issued notices of both technical conferences on June 17, 2020, the proceedings also share a common focus on the effects of state energy and environmental policies on federally-jurisdictional activities. For now, the prevailing carbon pricing mechanisms -- such as the Regional Greenhouse Gas Initiative adopted by many northeastern states -- and the strongest policies favoring or requiring offshore wind development are arising as a matter of state law and policy, as opposed to federal law.

The boundaries between federal and state jurisdiction are viewed by many as long-settled, although a series of federal court and agency decisions have found specific state electricity procurement and subsidy laws to be preempted by federal regulation, and a case pending before the Commission asks it to find that most state net metering programs are preempted by federal law. Whether the Commission grants or denies the pending request, the June 17 notices of technical conferences on carbon pricing and offshore wind integration suggest continued federal interest in exploring the implications of state policies on FERC-jurisdictional markets.

Vanceboro Dam Storage Project relicensed

Tuesday, March 22, 2016

The Federal Energy Regulatory Commission has issued a new license to Woodland Pulp LLC to continue operating and maintaining the Vanceboro Dam Storage Project.  Located on the East Branch of the St. Croix River along the Canadian border in Washington County, Maine, the FERC-licensed project operates as a water storage facility that provides flood storage and flow releases for downstream hydroelectric generation.

The 469-foot-long, 16-foot-high Vanceboro Dam and 178,000 acre-foot project impoundment span the U.S.-Canada border.  The project is subject to the Boundary Waters Treaty of 1909 which established the International Joint Commission (IJC), a bi-national agency with the mission of preventing and resolving disputes between the United States and Canada over boundary waters.

The Vanceboro project is part of the larger St. Croix River headwater storage system.  This system also includes the Forest City Project, located about 24 miles upstream on the East Branch of the St. Croix, as well as the West Branch Project.  Water flows into the Vanceboro project’s impoundment from the Forest City Project. The project operates in a store-and-release mode whereby water is stored during periods of high flow to reduce downstream flooding, and then released during periods of lower flow to increase generation at the downstream hydroelectric projects.   Generation associated with these projects occurs at the unlicensed Grand Falls and Woodland hydroelectric projects located downstream on the St. Croix River.  Collectively, these storage projects provide flood storage and helps to regulate and augment flows, resulting in increased generation at Woodland Pulp’s downstream hydroelectric projects.

The Federal Energy Regulatory Commission issued an original license for the United States portion of the Vanceboro project on April 4, 1966.  The project is docketed as No. 2492.  That original license expired February 29, 2016, so two years earlier the licensee filed an application to the Commission for a new license to continue operating and maintaining the project.  In the interim, Woodland Pulp operated the project under an annual license pending resolution of its FERC relicensing process. 

On March 22, 2016, the FERC released an order issuing a new license for the Vanceboro Project. The new license authorizes no new capacity, and requires what the Commission characterized as "a moderate amount of new environmental mitigation measures."  These include a mandatory prescription issued under section 18 of the Federal Power Act, relating to new upstream fish passage facilities for American eel, river herring, and landlocked Atlantic salmon.

Given the fact that the Vanceboro Project is operated in coordination with the recently-relicensed West Branch Project No. 2618 and Forest City Project No. 2660 which each received 30-year license terms within the past 5 months, the Commission similarly relicensed the Vanceboro project for a 30-year license term to allow coordination of all three projects during any future relicensing.

Based on the large number of FERC-licensed hydropower projects whose licenses will expire in the near future, regulators expect to see an uptick in relicensing activity for hydroelectric projects and dams.