U.S. energy regulators have asked for public comment on a rule proposed by the Secretary of Energy that would require organized grid operators to pay certain electric generators for their grid reliability and resilience benefits.
On September 28, 2017, Secretary of Energy Rick Perry directed the Federal Energy Regulatory Commission to consider a proposed rule on an expedited basis. The proposed rule defines an "eligible grid reliability and
resiliency resource" based on criteria including the ability to provide essential energy and ancillary reliability services and to have a 90-day fuel supply on site enabling it to operate during an emergency, extreme weather
conditions, or a natural or man-made disaster. It would requires independent system operators and regional transmission organizations to establish a tariff that provides a
" just and reasonable rate"
for the purchase of electric energy from such resources including recovery of costs and a return on equity
On October 2, the Commission issued a Notice Inviting Comments, asking interested persons to submit comments regarding the proposal on or before October 23, 2017. Two days later, Commission staff followed up with a series of questions for public comment. Questions in that document cover topics including the need for reform, eligibility, implementation, and rates, as well as impacts on consumers.
Some questions posed by the Commission staff in its October 4, 2017 document are general, such as, "What is resilience, how is it measured, and how is it different from reliability? What levels of resilience and reliability are appropriate?" Others ask for whether commenters agree with references in the proposed rule to the 2014 "Polar Vortex" and "other extreme weather events, specifically hurricanes Irma, Harvey, Maria, and superstorm Sandy," as well as "the retirement of coal and nuclear resources and a concern from Congress about the potential further loss of valuable generation resources" as justifying the need for action.
As previously noticed by the Commission, initial comments on the proposed Grid Reliability and Resilience Pricing Rule in Docket No. RM18-1-000 are due on or before October 23, 2017 and reply comments due on or before November 7, 2017.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Showing posts with label hurricane. Show all posts
Showing posts with label hurricane. Show all posts
Hurricane Sandy prompts Jones Act waiver
Friday, November 2, 2012
Hurricane Sandy's disruption of petroleum shipments and refining has led Secretary of Homeland Security Janet Napolitano to issue a temporary waiver allowing foreign oil tankers to enter ports in the northeastern United States.
The Jones Act, a federal law enacted as part of the Merchant Marine Act of 1920, limits who may carry on coastal shipping between domestic ports. This so-called cabotage law generally requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents.
Hurricane Sandy's impacts to northeastern energy infrastructure included disruption of oil and gasoline supplies in the area near New York City and New Jersey. Between reduced supply and concentrated demand, gasoline is reported to be in shortage conditions. Long lines are reported at gas stations, and demand at some stations has led them to run out of gasoline.
In an attempt to alleviate the shortage, today Secretary of Homeland Security Janet Napolitano issued a temporary, blanket waiver of the Jones Act. The waiver is designed to allow foreign-flagged oil tankers, that would otherwise be barred from the U.S. coastwise trade, to ship petroleum products from the Gulf of Mexico to Northeastern ports. The waiver will remain operative through November 13th.
The Jones Act, a federal law enacted as part of the Merchant Marine Act of 1920, limits who may carry on coastal shipping between domestic ports. This so-called cabotage law generally requires that all goods transported by water between U.S. ports be carried in U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents.
Hurricane Sandy's impacts to northeastern energy infrastructure included disruption of oil and gasoline supplies in the area near New York City and New Jersey. Between reduced supply and concentrated demand, gasoline is reported to be in shortage conditions. Long lines are reported at gas stations, and demand at some stations has led them to run out of gasoline.
In an attempt to alleviate the shortage, today Secretary of Homeland Security Janet Napolitano issued a temporary, blanket waiver of the Jones Act. The waiver is designed to allow foreign-flagged oil tankers, that would otherwise be barred from the U.S. coastwise trade, to ship petroleum products from the Gulf of Mexico to Northeastern ports. The waiver will remain operative through November 13th.
Assessing Hurricane Sandy's energy impacts
Tuesday, October 30, 2012
Yesterday Hurricane Sandy made landfall in New Jersey, but the magnitude of the storm meant that heavy winds, strong rains, and a powerful coastal storm surge affected a broad swath of the mid-Atlantic and northeastern parts of the United States.
One consequence of the storm is widespread power outages. As of 8:00 AM yesterday, about 36,000 electricity customers had lost power in Connecticut, Delaware, New Jersey, New York, North Carolina, Rhode Island, and Virginia. By 2:00 PM yesterday, outages were up to over 316,000, in the states listed above as well as in Maryland, Massachusetts, New Hampshire, and Pennsylvania. At that time, New York had the most outages (105,089 customers, or about 1%), but New Hampshire was the hardest hit in terms of percentage affected (18,190 customers, or about 3%). These reported outages came six hours before the storm officially made landfall, making outage numbers much higher today -- some reports indicating 8 million customers without power.
[Update: as of 9:00 AM this morning, the Department of Energy reports 8.1 million customers without electricity, including 62% of New Jersey, 31% of Connecticut, and 23% of Rhode Island.]
In addition to these power outages, some electricity generating facilities have shut down. The U.S. Nuclear Regulatory Commission (NRC) reports three nuclear power units in the Northeastern United States had to shut down and two units reduced as a result of impacts from Hurricane Sandy. Reasons range from water pump failure to encroaching high water to problems on the external power grid.
Another consequence of the storm is disruption to oil refineries. By 1:00 PM yesterday, two mid-Atlantic refineries had closed, with four more shutting down part of their production. In total, 1.1 million barrels per day of refining capacity had been disrupted due to the storm.
Today, as the storm has moved inland, crews are working hard to recover from the storm. It is still early to assess the total damage from the storm, as well as whether its disruption to energy infrastructure will be temporary or longer-lasting.
One consequence of the storm is widespread power outages. As of 8:00 AM yesterday, about 36,000 electricity customers had lost power in Connecticut, Delaware, New Jersey, New York, North Carolina, Rhode Island, and Virginia. By 2:00 PM yesterday, outages were up to over 316,000, in the states listed above as well as in Maryland, Massachusetts, New Hampshire, and Pennsylvania. At that time, New York had the most outages (105,089 customers, or about 1%), but New Hampshire was the hardest hit in terms of percentage affected (18,190 customers, or about 3%). These reported outages came six hours before the storm officially made landfall, making outage numbers much higher today -- some reports indicating 8 million customers without power.
[Update: as of 9:00 AM this morning, the Department of Energy reports 8.1 million customers without electricity, including 62% of New Jersey, 31% of Connecticut, and 23% of Rhode Island.]
In addition to these power outages, some electricity generating facilities have shut down. The U.S. Nuclear Regulatory Commission (NRC) reports three nuclear power units in the Northeastern United States had to shut down and two units reduced as a result of impacts from Hurricane Sandy. Reasons range from water pump failure to encroaching high water to problems on the external power grid.
Another consequence of the storm is disruption to oil refineries. By 1:00 PM yesterday, two mid-Atlantic refineries had closed, with four more shutting down part of their production. In total, 1.1 million barrels per day of refining capacity had been disrupted due to the storm.
Today, as the storm has moved inland, crews are working hard to recover from the storm. It is still early to assess the total damage from the storm, as well as whether its disruption to energy infrastructure will be temporary or longer-lasting.
Hurricane Sandy's effects on energy
Monday, October 29, 2012
Hurricane Sandy is expected to make landfall near the southern coast of New Jersey this evening. The storm has already dealt damage to Cuba, Jamaica, and Haiti, and is expected to carry significant storm energy northward into the mid-Atlantic and northeastern United States. Power outages are already being reported, but many more are expected: according to a Johns Hopkins engineering model, up to 10 million people may lose electricity in the mid-Atlantic over the next week. Utilities are already staffing up and hiring external contractors to assist in the storm recovery efforts. State governors are declaring a state of emergency to waive limits on how many hours utility workers can drive and work, to allow workers from other states and Canadian provinces to assist.
Hurricane Sandy's effects on energy are not limited to electric infrastructure. Petroleum refineries - and by extension oil and gas markets - will also be impacted by the storm. According to a situation report released this morning by the U.S. Department of Energy's Office of Electricity Delivery & Energy Reliability, at least one petroleum refinery has already shut down. Phillips 66's Linden, NJ refinery has shut down its production; the Linden refinery is capable of producing 238,000 barrels per day.
The report also cites trade press reports indicating reduced production at two other mid-Atlantic oil refineries, Philadelphia Energy Solutions’ Philadelphia, PA refinery (335,000 b/d capacity) and PBF Energy’s Delaware City refinery (182,200 b/d capacity). Hurricane Sandy's impacts to refineries are not limited to those processing crude oil; the report also cites reduced production rates at Hess Corporation’s Port Reading, NJ facility (70,000 b/d capacity), which processes gas oils to produce petroleum products.
Collectively, these refineries do not account for a significant portion of the nation's refining capacity. However, the impacted facilities' concentration in the mid-Atlantic may temporarily raise gasoline prices in the mid-Atlantic and northeastern U.S. A key factor affecting the extent of this price bump will be how quickly the refineries can return to full production.
When tomorrow morning comes, the storm's direct impacts will be well underway, as will restoration efforts. Last year's October storm, Hurricane Irene, left many electric utility customers without power for over a week. How will Sandy compare to Irene?
Hurricane Sandy's effects on energy are not limited to electric infrastructure. Petroleum refineries - and by extension oil and gas markets - will also be impacted by the storm. According to a situation report released this morning by the U.S. Department of Energy's Office of Electricity Delivery & Energy Reliability, at least one petroleum refinery has already shut down. Phillips 66's Linden, NJ refinery has shut down its production; the Linden refinery is capable of producing 238,000 barrels per day.
The report also cites trade press reports indicating reduced production at two other mid-Atlantic oil refineries, Philadelphia Energy Solutions’ Philadelphia, PA refinery (335,000 b/d capacity) and PBF Energy’s Delaware City refinery (182,200 b/d capacity). Hurricane Sandy's impacts to refineries are not limited to those processing crude oil; the report also cites reduced production rates at Hess Corporation’s Port Reading, NJ facility (70,000 b/d capacity), which processes gas oils to produce petroleum products.
Collectively, these refineries do not account for a significant portion of the nation's refining capacity. However, the impacted facilities' concentration in the mid-Atlantic may temporarily raise gasoline prices in the mid-Atlantic and northeastern U.S. A key factor affecting the extent of this price bump will be how quickly the refineries can return to full production.
When tomorrow morning comes, the storm's direct impacts will be well underway, as will restoration efforts. Last year's October storm, Hurricane Irene, left many electric utility customers without power for over a week. How will Sandy compare to Irene?
Hurricane Isaac disrupts Gulf energy production
Tuesday, August 28, 2012
Hurricane Isaac has already disrupted energy production in the Gulf of Mexico -- and is likely to cause further damage when it makes landfall late tonight or tomorrow morning.
As I noted yesterday, the storm's path across the Gulf as Tropical Storm Isaac has already caused most oil and natural gas producers in the Gulf to shut in their wells; temporarily halting the production of these fuels from the Gulf. As of yesterday, producers had shut in 78% of Gulf oil production and 48% percent of natural gas production. Data released today by the federal Bureau of Safety and Environmental Enforcement shows about 93.28% of the current daily oil production in the Gulf of Mexico has been shut-in, as has about 66.7% of the current daily natural gas production in the Gulf.
Offshore hydrocarbon resources in the Gulf of Mexico play a significant role in U.S. fuel production. According to the U.S. Energy Information Administration (EIA), about 23% of all U.S. crude oil production comes from the Gulf, as does about 7% of U.S. dry natural gas production.
Subject to tropical storms and hurricanes, Gulf oil and gas production is periodically interrupted due to severe weather. For example, EIA data shows that at its peak, 2005's Hurricane Katrina caused producers to shut in 539,074 barrels of oil production per day -- about half the amount of shut-in production as Tropical Storm Isaac caused yesterday. EIA data also shows that up to 3,228 cubic feet per day of natural gas production was shut in as a result of Katrina, or about one-and-a-half times as much gas per day as has been shut in due to Isaac so far. Four months after Katrina hit, 2,155 oil and gas wells, or 36.2 percent of the wells in the region, reportedly remained shut-in and incapable of producing. Understanding the full comparative impact of these storms will require knowing when the production shut-in by Isaac can come back online, but it is clear that Hurricane Isaac is a force to be reckoned with.
Previous storms, such as Hurricane Katrina, also caused significant damage to onshore energy infrastructure like oil refineries. At its peak, Katrina reportedly caused 4.5 million barrels per day of refining capacity to be shuttered; four months later, refinery shutdowns in the Gulf of Mexico region still totaled 367,000 barrels per day.
In preparation for Hurricane Isaac's landfall, several large Gulf Coast refineries have announced closures, with estimates suggesting a total of 1.1 million barrels per day of shutdown refining capacity or about half of the refining in the storm's path. While Isaac is expected to remain a Category 1 hurricane, and thus may pack less of a punch than Category 3 Katrina, Isaac's impending landfall comes swiftly on the heels of a significant refinery explosion and fire in Venezuela. Consumers can expect gasoline prices to trend higher in the near term.
As I noted yesterday, the storm's path across the Gulf as Tropical Storm Isaac has already caused most oil and natural gas producers in the Gulf to shut in their wells; temporarily halting the production of these fuels from the Gulf. As of yesterday, producers had shut in 78% of Gulf oil production and 48% percent of natural gas production. Data released today by the federal Bureau of Safety and Environmental Enforcement shows about 93.28% of the current daily oil production in the Gulf of Mexico has been shut-in, as has about 66.7% of the current daily natural gas production in the Gulf.
Offshore hydrocarbon resources in the Gulf of Mexico play a significant role in U.S. fuel production. According to the U.S. Energy Information Administration (EIA), about 23% of all U.S. crude oil production comes from the Gulf, as does about 7% of U.S. dry natural gas production.
Subject to tropical storms and hurricanes, Gulf oil and gas production is periodically interrupted due to severe weather. For example, EIA data shows that at its peak, 2005's Hurricane Katrina caused producers to shut in 539,074 barrels of oil production per day -- about half the amount of shut-in production as Tropical Storm Isaac caused yesterday. EIA data also shows that up to 3,228 cubic feet per day of natural gas production was shut in as a result of Katrina, or about one-and-a-half times as much gas per day as has been shut in due to Isaac so far. Four months after Katrina hit, 2,155 oil and gas wells, or 36.2 percent of the wells in the region, reportedly remained shut-in and incapable of producing. Understanding the full comparative impact of these storms will require knowing when the production shut-in by Isaac can come back online, but it is clear that Hurricane Isaac is a force to be reckoned with.
Previous storms, such as Hurricane Katrina, also caused significant damage to onshore energy infrastructure like oil refineries. At its peak, Katrina reportedly caused 4.5 million barrels per day of refining capacity to be shuttered; four months later, refinery shutdowns in the Gulf of Mexico region still totaled 367,000 barrels per day.
In preparation for Hurricane Isaac's landfall, several large Gulf Coast refineries have announced closures, with estimates suggesting a total of 1.1 million barrels per day of shutdown refining capacity or about half of the refining in the storm's path. While Isaac is expected to remain a Category 1 hurricane, and thus may pack less of a punch than Category 3 Katrina, Isaac's impending landfall comes swiftly on the heels of a significant refinery explosion and fire in Venezuela. Consumers can expect gasoline prices to trend higher in the near term.
Tropical Storm Isaac threatens energy production in Gulf
Monday, August 27, 2012
Tropical Storm Isaac is bearing down on the U.S. Gulf Coast -- and whether or not it becomes Hurricane Isaac, the storm is already impacting energy production across the Gulf of Mexico.
Isaac is currently about 300 miles south of the mouth of the Mississippi River and is expected to become a hurricane before reaching the northern Gulf Coast late Tuesday. Concern over human and environmental safety has led oil and gas production and drilling companies to pull their personnel off remote structures in the Gulf. According to the federal Bureau of Safety and Environmental Enforcement or BSEE, personnel have been evacuated from 346 production platforms across the Gulf of Mexico -- more than half of the 596 manned platforms in the Gulf. Personnel have also been evacuated from 41 out of the 76 exploration and drilling rigs currently operating in the Gulf.
When production platforms and drilling rigs are evacuated, companies are required to close safety valves located below the surface of the ocean floor to prevent the release of oil or gas. This "shut-in" process is designed to protect the environment, but it has obvious consequences for the production of energy resources like oil and gas. The BSEE estimates that 1,076,642 barrels of oil production per day has been shut-in as a result of Isaac (about 78.02 percent of the current daily oil production in the Gulf of Mexico), as has 2,165.94 million cubic feet per day of natural gas production (about 48.13 percent of the current daily natural gas production in the Gulf).
Provided the storm leaves Gulf production and drilling assets unharmed, these platforms and rigs may resume operations after the storm has passed (and after they have passed inspection). But the disruption to offshore petroleum and natural gas production will already have affected the markets, driving short-term prices upward.
Particularly if it intensifies into Hurricane Isaac, Tropical Storm Isaac may also damage onshore energy assets, ranging from local electric distribution lines to major transmission lines, and from distributed generation projects like rooftop solar panels to utility-scale nuclear or other power plants. Wind, rain, flooding, and a significant storm surge of 6 to 12 feet are all expected for southeast Louisiana, Mississippi, and Alabama.
NOAA forecasts call for the storm to have passed New Orleans by Thursday, by which time the extent of any damage may begin to be apparent -- and the process of restoration and recovery will begin.
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| Satellite image of Tropical Storm Isaac, courtesy of the U.S. National Oceanic and Atmospheric Administration (NOAA). |
Isaac is currently about 300 miles south of the mouth of the Mississippi River and is expected to become a hurricane before reaching the northern Gulf Coast late Tuesday. Concern over human and environmental safety has led oil and gas production and drilling companies to pull their personnel off remote structures in the Gulf. According to the federal Bureau of Safety and Environmental Enforcement or BSEE, personnel have been evacuated from 346 production platforms across the Gulf of Mexico -- more than half of the 596 manned platforms in the Gulf. Personnel have also been evacuated from 41 out of the 76 exploration and drilling rigs currently operating in the Gulf.
When production platforms and drilling rigs are evacuated, companies are required to close safety valves located below the surface of the ocean floor to prevent the release of oil or gas. This "shut-in" process is designed to protect the environment, but it has obvious consequences for the production of energy resources like oil and gas. The BSEE estimates that 1,076,642 barrels of oil production per day has been shut-in as a result of Isaac (about 78.02 percent of the current daily oil production in the Gulf of Mexico), as has 2,165.94 million cubic feet per day of natural gas production (about 48.13 percent of the current daily natural gas production in the Gulf).
Provided the storm leaves Gulf production and drilling assets unharmed, these platforms and rigs may resume operations after the storm has passed (and after they have passed inspection). But the disruption to offshore petroleum and natural gas production will already have affected the markets, driving short-term prices upward.
Particularly if it intensifies into Hurricane Isaac, Tropical Storm Isaac may also damage onshore energy assets, ranging from local electric distribution lines to major transmission lines, and from distributed generation projects like rooftop solar panels to utility-scale nuclear or other power plants. Wind, rain, flooding, and a significant storm surge of 6 to 12 feet are all expected for southeast Louisiana, Mississippi, and Alabama.
NOAA forecasts call for the storm to have passed New Orleans by Thursday, by which time the extent of any damage may begin to be apparent -- and the process of restoration and recovery will begin.
September 1, 2010 update - storm tracking
Wednesday, September 1, 2010
Resources for tracking the incoming Hurricane Earl (currently blowing 135mph, category four status, 23 foot swell):
- NOAA report for Bath, ME
- NOAA marine point forecast for Small Point, ME
- MagicSeaweed surf forecast for Higgins (currently peaking 7 AM Saturday at 7.5 feet, 12 seconds)
- MSW's Hurricane Earl Alert
- Matt Noyes's New England weather analysis
- USGS real-time streamflow data for Maine
- Maine tropical weather discussion
- NWS Portland KGYX forecast discussion
June 1, 2010 - Update: news roundup
Tuesday, June 1, 2010
Baxter State Park: An Ohio hiker was rescued after being missing for two days in the Park. Michael Hays of Stow, Ohio, was spotted by helicopter. He had been immobilized by a crushed kneecap and was covered in insect bites. (No joke: this time of year, the bugs in Baxter are fierce. As is the fishing, thanks to those bugs.) After Mr. Hays failed to sign out on a trail register and his rental car was found in a parking lot, the search began. Hays had a cell phone with him, but had no reception. This was Baxter State Park's largest missing person search since the 1970s involving about 40 people, six dogs as well as Maine Forest Service aircraft. Park Director Jensen Bissell warns hikers not to rely on cell phones, and to stay on trail.
Forest fires in Quebec are affecting northern New England. More than 50 fires are burning about 100,000 acres of forest, mostly started by a May 25 thunderstorm and the dry conditions. The U.S. National Weather Service has issued an air quality alert for northern Vermont and New Hampshire and all but extreme eastern Maine.
The Atlantic hurricane season has begun. NOAA predicts 23 tropical storms, 8 to 14 of which may form into hurricanes.
Site restoration for the former Cascade Woolen Mill in Oakland has been complicated by the discovery of asbestos in the ruins.
Forest fires in Quebec are affecting northern New England. More than 50 fires are burning about 100,000 acres of forest, mostly started by a May 25 thunderstorm and the dry conditions. The U.S. National Weather Service has issued an air quality alert for northern Vermont and New Hampshire and all but extreme eastern Maine.
The Atlantic hurricane season has begun. NOAA predicts 23 tropical storms, 8 to 14 of which may form into hurricanes.
Site restoration for the former Cascade Woolen Mill in Oakland has been complicated by the discovery of asbestos in the ruins.
May 27, 2010 - TransCanada sues Massachusetts over local aspect of renewable portfolio standard
Thursday, May 27, 2010
In Massachusetts: TransCanada has sued the Commonwealth (and named officials) over the Green Communities Act. Specifically, TransCanada is asserting that the statute's requirement that utilities enter into long-term contracts to buy power from Massachusetts generators including local solar PV projects is unconstitutional. TransCanada claims that this discrimination against out-of-state renewable energy producers not only violates the Commerce Clause of the US Constitution, but results in higher prices to ratepayers. The New England Power Generators Association agrees that it is illogical to insist that clean energy originate locally, given our regional transmission grid and unpredictable electron flows.
Massachusetts Attorney General Martha Coakley is trying to negotiate a settlement with TransCanada.
Interestingly, TransCanada is challenging the Green Communities Act: the same statutory framework into which the Cape Wind contract with National Grid fits.
Are electrons a fungible commodity? Are the electrons produced by a renewable project inherently more valuable than electrons produced by (for example) coal-fired generation? Even if they are, doesn't the great mixing bowl that is the transmission grid eliminate any uniqueness those renewable electrons had? Is there any real meaning to the kind of financial (contractual) fictions that Consumer A is buying Generator B's renewable electrons?
Weather news: NOAA predicts an "active" to "extremely active" hurricane season this year, with between 14 and 23 named storms forming in the Atlantic Ocean, Caribbean Sea and Gulf of Mexico.
BP's top kill of the Deepwater Horizon oil well appears to have worked.
Massachusetts Attorney General Martha Coakley is trying to negotiate a settlement with TransCanada.
Interestingly, TransCanada is challenging the Green Communities Act: the same statutory framework into which the Cape Wind contract with National Grid fits.
Are electrons a fungible commodity? Are the electrons produced by a renewable project inherently more valuable than electrons produced by (for example) coal-fired generation? Even if they are, doesn't the great mixing bowl that is the transmission grid eliminate any uniqueness those renewable electrons had? Is there any real meaning to the kind of financial (contractual) fictions that Consumer A is buying Generator B's renewable electrons?
Weather news: NOAA predicts an "active" to "extremely active" hurricane season this year, with between 14 and 23 named storms forming in the Atlantic Ocean, Caribbean Sea and Gulf of Mexico.
BP's top kill of the Deepwater Horizon oil well appears to have worked.
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