Maine Governor Paul LePage has proposed legislation that would authorize the state to take over ownership of a dam and water storage project on the U.S.-Canada border.
As initially printed on June 1, 2017, LD 1626 would be a resolve authorizing a Maine state agency to assume ownership of the Forest City Project. The Forest City Project is located on the East Branch
of the St. Croix River which forms the international boundary between the United
States and Canada. It is currently owned by Woodland Pulp LLC, which operates it pursuant to a hydropower license issued in 2015 by the Federal Energy Regulatory Commission.
But the dam owner has applied to the Federal Energy Regulatory Commission for authorization to surrender the Forest City Project's license, on the grounds that conditions imposed in the project's 2015 new license render the project "uneconomical." The license surrender case remains pending at FERC.
Meanwhile, LD 1626 represents state legislative action that could affect the project. According to the bill's preamble, project owner Woodland Pulp LLC seeks to transfer to the State the Forest City
Project, together with associated flowage rights, easements and related
facilities, which would allow the State to regulate the level of water in East Grand Lake to ensure recreational and habitat-related purposes. LD 1626 would authorize the state to accept the Forest City Project as a donation. As described in the preamble, bill proponents say this "is necessary to expedite this authorization to stay
the proceedings related to the application to surrender the dam that is
pending at the Federal Energy Regulatory Commission."
Operationally, LD 1626 would authorize the Bureau of General Services within the state Department of Administrative and Financial Services to assume ownership of the U.S. portion of the project. It would direct the Department of Inland Fisheries and Wildlife to oversee the project's management after its acquisition by the state.
LD 1626 was set for public hearing and work session on June 6.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Atlantic Ocean oil development in Canada, U.S.
Canadian oil company Husky Energy has announced a decision to develop its West White Rose Project offshore Newfoundland and Labrador. Meanwhile the U.S. National Marine Fisheries Service has proposed authorizing the take of marine mammals incidental to geophysical surveys in the Atlantic Ocean relating to hydrocarbon development.
Husky Energy is a Canada-based publicly traded energy company. It is the operator of the White Rose field, discovered in 1984 about 350 kilometres east of St. John’s, Newfoundland and Labrador, in water depths of about 120 meters. Commercial oil production from the main White Rose field began in 2005; since then, over 275 million barrels of oil has been produced. Husky holds working interests in the main field as well as satellite fields.
The oil and gas industry is the largest contributor to Newfoundland and Labrador's gross domestic production. Husky's May 28, 2017 announcement relates to its West White Rose development. Husky says it and project partners Suncor Energy and Nalcor Energy – Oil and Gas will use a fixed wellhead platform, tied back to the SeaRose floating production, storage and offloading (FPSO) vessel. According to Husky, the tie-back to the SeaRose FPSO vessel "will enable the Company to maximize resource recovery," with "incremental operating costs are expected to be less than $3 per barrel over the first 10 years." Husky expects a net project cost of $2.2 billion to first oil in 2022, and a gross peak production rate of approximately 75,000 barrels per day (bbls/day) in 2025.
Meanwhile, U.S. regulators have proposed removing one obstacle to oil and gas prospecting in the Atlantic Ocean. The U.S. National Marine Fisheries Service has published notice of five proposed authorizations for harassment or take of marine mammals incidental to geophysical surveys in the Atlantic Ocean. The federal Marine Mammal Protection Act allows the Secretary of Commerce to permit the incidental, but not intentional, harassment or taking of small numbers of marine mammals by U.S. citizens who engage in a specified activity. In 2014-2015, NMFS "received five separate requests for authorization for take of marine mammals incidental to geophysical surveys in support of hydrocarbon exploration in the Atlantic Ocean." The applicants proposed "to conduct two-dimensional (2D) marine seismic surveys using airgun arrays" within the U.S. Exclusive Economic Zone "(i.e., to 200 nautical miles (nmi)) from Delaware to approximately Cape Canaveral, Florida and corresponding with BOEM’s Mid- and South Atlantic OCS planning areas, as well as additional waters out to 350 nmi from shore."
NMFS's proposal to issue the incidental take or harassment permits now faces public comment, before a final agency decision.
Husky Energy is a Canada-based publicly traded energy company. It is the operator of the White Rose field, discovered in 1984 about 350 kilometres east of St. John’s, Newfoundland and Labrador, in water depths of about 120 meters. Commercial oil production from the main White Rose field began in 2005; since then, over 275 million barrels of oil has been produced. Husky holds working interests in the main field as well as satellite fields.
The oil and gas industry is the largest contributor to Newfoundland and Labrador's gross domestic production. Husky's May 28, 2017 announcement relates to its West White Rose development. Husky says it and project partners Suncor Energy and Nalcor Energy – Oil and Gas will use a fixed wellhead platform, tied back to the SeaRose floating production, storage and offloading (FPSO) vessel. According to Husky, the tie-back to the SeaRose FPSO vessel "will enable the Company to maximize resource recovery," with "incremental operating costs are expected to be less than $3 per barrel over the first 10 years." Husky expects a net project cost of $2.2 billion to first oil in 2022, and a gross peak production rate of approximately 75,000 barrels per day (bbls/day) in 2025.
Meanwhile, U.S. regulators have proposed removing one obstacle to oil and gas prospecting in the Atlantic Ocean. The U.S. National Marine Fisheries Service has published notice of five proposed authorizations for harassment or take of marine mammals incidental to geophysical surveys in the Atlantic Ocean. The federal Marine Mammal Protection Act allows the Secretary of Commerce to permit the incidental, but not intentional, harassment or taking of small numbers of marine mammals by U.S. citizens who engage in a specified activity. In 2014-2015, NMFS "received five separate requests for authorization for take of marine mammals incidental to geophysical surveys in support of hydrocarbon exploration in the Atlantic Ocean." The applicants proposed "to conduct two-dimensional (2D) marine seismic surveys using airgun arrays" within the U.S. Exclusive Economic Zone "(i.e., to 200 nautical miles (nmi)) from Delaware to approximately Cape Canaveral, Florida and corresponding with BOEM’s Mid- and South Atlantic OCS planning areas, as well as additional waters out to 350 nmi from shore."
NMFS's proposal to issue the incidental take or harassment permits now faces public comment, before a final agency decision.
US withdrawal from Paris climate agreement resources
Friday, June 2, 2017
President Donald Trump has announced that the U.S. will withdraw from the Paris climate agreement reached in 2015. Here is a quick roundup of relevant resources.
On December 12, 2015, the Parties to the United Nations Framework Convention on Climate Change adopted Decision 1/CP.21, adopting the Paris Agreement under that convention. The Paris climate accord calls for signatories to limit the increase in the global average temperature to "well below" 2 °C above pre-industrial levels (and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels), to support adaptation and resilience to climate change's impacts, and to align finance flows with a pathway towards low greenhouse gas emissions and climate-resilient development.
Since its adoption, 195 countries have signed off, including the U.S. President Obama announced U.S. ratification of the Paris agreement in September 2016, along with China. Among members of the U.N. Framework Convention on Climate Change, only Syria and Nicaragua are are not parties to the Paris Agreement.
But President Trump had criticized the deal, and on June 1, 2017, announced that "the United States will withdraw from the Paris Climate Accord... but begin negotiations to reenter either the Paris Accord or a really entirely new transaction on terms that are fair to the United States, its businesses, its workers, its people, its taxpayers."
According to President Trump's statement, "the United States will cease all implementation of the non-binding Paris Accord and the draconian financial and economic burdens the agreement imposes on our country. This includes ending the implementation of the nationally determined contribution and, very importantly, the Green Climate Fund which is costing the United States a vast fortune."
President Trump also addressed the integration of renewable energy sources into the grid, expressing skepticism that renewables could suffice in an era of increased U.S. economic expansion:
On December 12, 2015, the Parties to the United Nations Framework Convention on Climate Change adopted Decision 1/CP.21, adopting the Paris Agreement under that convention. The Paris climate accord calls for signatories to limit the increase in the global average temperature to "well below" 2 °C above pre-industrial levels (and to pursue efforts to limit the temperature increase to 1.5 °C above pre-industrial levels), to support adaptation and resilience to climate change's impacts, and to align finance flows with a pathway towards low greenhouse gas emissions and climate-resilient development.
Since its adoption, 195 countries have signed off, including the U.S. President Obama announced U.S. ratification of the Paris agreement in September 2016, along with China. Among members of the U.N. Framework Convention on Climate Change, only Syria and Nicaragua are are not parties to the Paris Agreement.
But President Trump had criticized the deal, and on June 1, 2017, announced that "the United States will withdraw from the Paris Climate Accord... but begin negotiations to reenter either the Paris Accord or a really entirely new transaction on terms that are fair to the United States, its businesses, its workers, its people, its taxpayers."
According to President Trump's statement, "the United States will cease all implementation of the non-binding Paris Accord and the draconian financial and economic burdens the agreement imposes on our country. This includes ending the implementation of the nationally determined contribution and, very importantly, the Green Climate Fund which is costing the United States a vast fortune."
President Trump also addressed the integration of renewable energy sources into the grid, expressing skepticism that renewables could suffice in an era of increased U.S. economic expansion:
At 1 percent growth, renewable sources of energy can meet some of our domestic demand, but at 3 or 4 percent growth, which I expect, we need all forms of available American energy, or our country ... will be at grave risk of brownouts and blackouts, our businesses will come to a halt in many cases, and the American family will suffer the consequences in the form of lost jobs and a very diminished quality of life.At several times, the President expressed interest in renegotiating the terms of the Paris Agreement or some "new deal":
I’m willing to immediately work with Democratic leaders to either negotiate our way back into Paris, under the terms that are fair to the United States and its workers, or to negotiate a new deal that protects our country and its taxpayers... And we’ll sit down with the Democrats and all of the people that represent either the Paris Accord or something that we can do that's much better than the Paris Accord.A White House press release provided additional information from the administration's perspective. It calls the U.S. "already the world's energy leader," and cites an analysis prepared by NERA for the American Council for Capital Formation and the U.S. Chamber of Commerce's Institute for 21st Century Energy which found that "meeting President Obama’s commitment under the Paris Climate Accord would cost the United States nearly $3 trillion by 2040". The press release notes that under the Paris agreement "the United States would carry the burden while other countries would get the benefits," and that full international compliance with the Paris agreement "would barely impact the climate."
FERC's approach to EMP and GMD threats
Federal energy regulators have used both regulatory and more informal collaborative approaches to address the threat to the electric grid posed by electromagnetic pulses and geomagnetic disturbances, according to testimony delivered on May 4, 2017, to the U.S. Senate Committee on Energy and Natural Resources.
Last month, Federal Energy Regulatory Commission acting chairman Cheryl LaFleur spoke to the Senate committee on the Commission's work in protecting the reliability of the U.S. grid against naturally-occurring and manmade threats. In her testimony, she noted the Commission's role in approving mandatory reliability standards developed by the North American Electric Reliability Corporation (NERC), as well as its support for grid security through voluntary and collaborative efforts like sharing best practices, participating in grid reliability exercises, and briefing state policymakers.
Acting chairman LaFleur's testimony focused on the threats posed by man-made electromagnetic pulses (EMP) and naturally-occurring geomagnetic disturbances (GMD). As she categorized it, EMP are bursts of energy designed to disrupt, damage or destroy electronics such as those found in control systems on the electric grid. GMD are naturally occurring solar magnetic disturbances which periodically disrupt the earth’s magnetic field; these disturbances can induce currents on the electric grid that may simultaneously damage or destroy key transformers over a large geographic area. According to Commissioner LaFleur, a severe EMP or GMD event "has the potential to cause voltage problems and instability on the electric grid, which could lead to wide-area blackouts."
She next noted FERC's actions to address EMP threats, including both regulatory and informal approaches. Regulatory actions include FERC's direction and approval of NERC's two-stage GMD reliability standards, which require responsible entities to develop and implement operational procedures to mitigate the effects of GMDs and to conduct initial and on-going assessments of the potential impact of a benchmark GMD event on bulk-power system equipment and the bulk-power system as a whole and to mitigate any assessed vulnerabilities.
She also pointed to FERC's approval of NERC's physical reliability standard, which requires responsible entities to mitigate assessed vulnerabilities to critical transmission facilities through resiliency or security measures designed collectively to deter, detect, delay, assess, communicate, and respond to potential physical threats and vulnerabilities, as helping to address the use of small, portable EMP devices that require close proximity to their intended target. However, as she noted, "FERC has not directed NERC to develop a standard specifically targeting EMP."
Acting chair LaFleur also noted collaborative efforts, including coordination and information-sharing with the Department of Energy, Department of Homeland Security, Department of Defense, interagency task forces, and foreign governments.
Last month, Federal Energy Regulatory Commission acting chairman Cheryl LaFleur spoke to the Senate committee on the Commission's work in protecting the reliability of the U.S. grid against naturally-occurring and manmade threats. In her testimony, she noted the Commission's role in approving mandatory reliability standards developed by the North American Electric Reliability Corporation (NERC), as well as its support for grid security through voluntary and collaborative efforts like sharing best practices, participating in grid reliability exercises, and briefing state policymakers.
Acting chairman LaFleur's testimony focused on the threats posed by man-made electromagnetic pulses (EMP) and naturally-occurring geomagnetic disturbances (GMD). As she categorized it, EMP are bursts of energy designed to disrupt, damage or destroy electronics such as those found in control systems on the electric grid. GMD are naturally occurring solar magnetic disturbances which periodically disrupt the earth’s magnetic field; these disturbances can induce currents on the electric grid that may simultaneously damage or destroy key transformers over a large geographic area. According to Commissioner LaFleur, a severe EMP or GMD event "has the potential to cause voltage problems and instability on the electric grid, which could lead to wide-area blackouts."
She next noted FERC's actions to address EMP threats, including both regulatory and informal approaches. Regulatory actions include FERC's direction and approval of NERC's two-stage GMD reliability standards, which require responsible entities to develop and implement operational procedures to mitigate the effects of GMDs and to conduct initial and on-going assessments of the potential impact of a benchmark GMD event on bulk-power system equipment and the bulk-power system as a whole and to mitigate any assessed vulnerabilities.
She also pointed to FERC's approval of NERC's physical reliability standard, which requires responsible entities to mitigate assessed vulnerabilities to critical transmission facilities through resiliency or security measures designed collectively to deter, detect, delay, assess, communicate, and respond to potential physical threats and vulnerabilities, as helping to address the use of small, portable EMP devices that require close proximity to their intended target. However, as she noted, "FERC has not directed NERC to develop a standard specifically targeting EMP."
Acting chair LaFleur also noted collaborative efforts, including coordination and information-sharing with the Department of Energy, Department of Homeland Security, Department of Defense, interagency task forces, and foreign governments.
New England regional renewables procurement
Thursday, June 1, 2017
As states enact and pursue energy policy goals such as sourcing power from solar, offshore wind, or other "clean energy" resources, here's a quick look at some of the regional renewable procurement activity ongoing in New England:
New England Clean Energy RFP: This "three-State Clean Energy RFP" focused on Massachusetts, Connecticut, and Rhode Island. Although each state enacted its own statutory framework for procurement, soliciting parties including the Connecticut Department of Energy and Environmental Policy and utilities in Massachusetts and Rhode Island released a joint Request for Proposals in September 2015. Bids were due by January 28, 2016. Following an evaluation period, bidders were selected for contract negotiation and notified on October 24, 2016. The states collectively selected the following proposals representing approximately 460 megawatts in total:
Massachusetts Section 83D RFP for Long-term Contracts for Clean Energy: On March 31, 2017, the Massachusetts Electric Distribution companies, in coordination with the Massachusetts Department of Energy Resources, issued a Request for Proposals for Long-term Contracts for Clean Energy Projects pursuant to Section 83D of Chapter 169 of the Acts of 2008, as amended by chapter 188 of the Acts of 2016, An Act to Promote Energy Diversity. Bids are due by July 27, 2017, with project selection expected in January 2018.
New England Clean Energy RFP: This "three-State Clean Energy RFP" focused on Massachusetts, Connecticut, and Rhode Island. Although each state enacted its own statutory framework for procurement, soliciting parties including the Connecticut Department of Energy and Environmental Policy and utilities in Massachusetts and Rhode Island released a joint Request for Proposals in September 2015. Bids were due by January 28, 2016. Following an evaluation period, bidders were selected for contract negotiation and notified on October 24, 2016. The states collectively selected the following proposals representing approximately 460 megawatts in total:
Massachusetts/Connecticut/RIMassachusetts Section 83C RFP for Long-term Contracts for Offshore Wind Energy: A 2016 state law requires utilities to competitively solicit and contract for approximately 1,600 megawatts of offshore wind, starting by June 30, 2017. On April 28, 2017, submitted their proposed RFP to the Massachusetts Department of Public Utilities for review and approval. Through the RFP, the utilities will seek proposals for “Offshore Wind Energy Generation” and associated transmission necessary to deliver such generation to the mainland ISO New England, Inc. grid. According to the proposed timeline, bids would be due in December 2017, with project selection in May 2018.
Antrim Wind
Ranger Solar
Cassadaga Wind
RES Americas – Both Submissions(1 and 2)
Massachusetts/RI
Deepwater Wind
Ameresco
Massachusetts Section 83D RFP for Long-term Contracts for Clean Energy: On March 31, 2017, the Massachusetts Electric Distribution companies, in coordination with the Massachusetts Department of Energy Resources, issued a Request for Proposals for Long-term Contracts for Clean Energy Projects pursuant to Section 83D of Chapter 169 of the Acts of 2008, as amended by chapter 188 of the Acts of 2016, An Act to Promote Energy Diversity. Bids are due by July 27, 2017, with project selection expected in January 2018.
Three Mile Island nuclear plant to close in 2019 absent policy reforms
Wednesday, May 31, 2017
Exelon Corporation has announced that it will retire its Three Mile Island Generating Station on or about September 30, 2019, unless energy policies change.
Located in Pennsylvania, the Three Mile Island plant Unit 1 features a nuclear pressurized water reactor, feeding steam to generation with a net capacity of 837 megawatts. Its license issued by the Nuclear Regulatory Commission allows operation until 2034. Unit 1 is now over 40 years old, with construction having started in in 1968 and the plant being placed in-service in 1974. (The former Unit 2 reactor partially melted down in 1979 and was closed; the Unit 2 complex is now owned by an affiliate of FirstEnergy Corporation.)
While the Three Mile Island plant has previously earned revenue by providing capacity to the PJM wholesale market, Exelon says the plant has not cleared in the past three PJM base residual auctions. PJM's most recent capacity auction results, for the 2021/2021 delivery year, were announced last week, and came in below the previous year's results. For generators, demand resources, and other sources of capacity bidding into the market, this means more expensive resources did not clear -- and those that did clear will receive lower revenues than if the auction yielded a higher price.
On May 24, shortly after the PJM auction results were announced, Exelon noted that Three Mile Island's failure to clear in the auction placed it "at risk of early retirement":
Six days later, Exelon announced that "it will prematurely retire its Three Mile Island Generating Station (TMI) on or about September 30, 2019, absent needed policy reforms." Exelon announced that it is "taking the first steps to shut down the nuclear plant," including sending deactivation and shutdown notifications, terminating capital investment projects required for long-term operation of the plant, and canceling 2019 fuel purchases and outage planning.
In its statement, Exelon noted that nuclear power is emissions-free, but is not included in Pennsylvania's Alternative Energy Portfolio Standard (AEPS). The AEPS requires that 18 percent of the electricity supplied by Pennsylvania’s electric distribution companies and electric generation suppliers come from qualified alternative energy resources by 2021. Under the current AEPS, eligible resources include solar PV, solar thermal, wind, low-impact hydro, geothermal, biomass, biologically derived methane gas, coal-mine methane and fuel cell resources, new and existing waste coal, distributed generation (DG), demand-side management, large-scale hydro, municipal solid waste, wood pulping and manufacturing byproducts, and integrated gasification combined cycle (IGCC) coal facilities, with specific set-asides for some categories of resources -- but not nuclear. Exelon suggested that potential solutions could include amending the AEPS to include nuclear resources, or establishing a zero emissions credit (ZEC) program similar to the approach being implemented in Illinois and New York, among others.
Located in Pennsylvania, the Three Mile Island plant Unit 1 features a nuclear pressurized water reactor, feeding steam to generation with a net capacity of 837 megawatts. Its license issued by the Nuclear Regulatory Commission allows operation until 2034. Unit 1 is now over 40 years old, with construction having started in in 1968 and the plant being placed in-service in 1974. (The former Unit 2 reactor partially melted down in 1979 and was closed; the Unit 2 complex is now owned by an affiliate of FirstEnergy Corporation.)
While the Three Mile Island plant has previously earned revenue by providing capacity to the PJM wholesale market, Exelon says the plant has not cleared in the past three PJM base residual auctions. PJM's most recent capacity auction results, for the 2021/2021 delivery year, were announced last week, and came in below the previous year's results. For generators, demand resources, and other sources of capacity bidding into the market, this means more expensive resources did not clear -- and those that did clear will receive lower revenues than if the auction yielded a higher price.
On May 24, shortly after the PJM auction results were announced, Exelon noted that Three Mile Island's failure to clear in the auction placed it "at risk of early retirement":
TMI remains economically challenged as a result of continued low wholesale power prices and the lack of federal or Pennsylvania energy policies that value zero-emissions nuclear energy. Exelon has been working with stakeholders on options for the continued operation of TMI, which has not been profitable in five years.Exelon pointed to the "challenge nuclear energy continues to face without compensation for its ability to produce electricity without harmful carbon and air pollution and to contribute to grid resilience."
Six days later, Exelon announced that "it will prematurely retire its Three Mile Island Generating Station (TMI) on or about September 30, 2019, absent needed policy reforms." Exelon announced that it is "taking the first steps to shut down the nuclear plant," including sending deactivation and shutdown notifications, terminating capital investment projects required for long-term operation of the plant, and canceling 2019 fuel purchases and outage planning.
In its statement, Exelon noted that nuclear power is emissions-free, but is not included in Pennsylvania's Alternative Energy Portfolio Standard (AEPS). The AEPS requires that 18 percent of the electricity supplied by Pennsylvania’s electric distribution companies and electric generation suppliers come from qualified alternative energy resources by 2021. Under the current AEPS, eligible resources include solar PV, solar thermal, wind, low-impact hydro, geothermal, biomass, biologically derived methane gas, coal-mine methane and fuel cell resources, new and existing waste coal, distributed generation (DG), demand-side management, large-scale hydro, municipal solid waste, wood pulping and manufacturing byproducts, and integrated gasification combined cycle (IGCC) coal facilities, with specific set-asides for some categories of resources -- but not nuclear. Exelon suggested that potential solutions could include amending the AEPS to include nuclear resources, or establishing a zero emissions credit (ZEC) program similar to the approach being implemented in Illinois and New York, among others.
Maine tidal pilot project not seeking new license
Tuesday, May 30, 2017
The holder of a federal pilot license for a Maine tidal energy project has told regulators that it does not intend to relicense the project beyond the pilot license's expiration in 2022, pointing to tidal current velocities at the project site as inadequate to justify pursuing a commercial license.
At issue is the Cobscook Bay Tidal Project. On February 27, 2012, the Federal Energy Regulatory Commission issued a pilot project license to ORPC Maine, LLC for the project for a period of eight years. Later that year, it became the first grid-tied commercial tidal power plant in the U.S.
The Commission later granted a subsequent request by ORPC to extend its license term for the Cobscook Bay Tidal Energy Project from eight years to ten years, until January 31, 2022. In that order extending the pilot license term, the Commission noted "the experimental nature of hydrokinetic devices, the licensee’s dedication to expanding and improving the technology and design of its project, and the insignificant or no impact to the surrounding environment by extending the license term two years."
Because the FERC licensing process can take years to complete, licensees are required to make public filings between 5 and 5-and-a-half years in advance of license expiry. On March 14, 2017, ORPC made such a filing. In that March 14 letter, ORPC noted some project successes:
At issue is the Cobscook Bay Tidal Project. On February 27, 2012, the Federal Energy Regulatory Commission issued a pilot project license to ORPC Maine, LLC for the project for a period of eight years. Later that year, it became the first grid-tied commercial tidal power plant in the U.S.
The Commission later granted a subsequent request by ORPC to extend its license term for the Cobscook Bay Tidal Energy Project from eight years to ten years, until January 31, 2022. In that order extending the pilot license term, the Commission noted "the experimental nature of hydrokinetic devices, the licensee’s dedication to expanding and improving the technology and design of its project, and the insignificant or no impact to the surrounding environment by extending the license term two years."
Because the FERC licensing process can take years to complete, licensees are required to make public filings between 5 and 5-and-a-half years in advance of license expiry. On March 14, 2017, ORPC made such a filing. In that March 14 letter, ORPC noted some project successes:
The Cobscook Bay Tidal Energy site has served a pivotal role in the advancement of ORPC’s technology specifically and the domestic marine hydrokinetic industry generally. ORPC anticipates that the project infrastructure in place, the environmental monitoring and data analysis efforts, resource information documentation, and collaborative relationships with existing marine users will continue through the duration of the existing pilot license term. With concurrence of the Project Adaptive Management Team, we will be testing new generations of system components and assembled systems at the project site and will keep FERC informed regarding these efforts.But then ORPC noted an intent not to seek a commercial license for the project after the pilot license's expiration:
While the project site serves as an excellent testing area, ORPC considers the tidal current velocities at the Project site inadequate to justify pursuing a commercial license. Therefore ORPC does not intend to file a NOI or PAD for the Project at this time.In a May 25, 2017 letter to the licensee, Commission staff characterized the licensee's March 14 filing as "a notice of intent not to relicense the Cobscook Bay Tidal Project," citing the licensee's position on tidal velocities, and noting the licensee's stated intent to continue operating the project until the pilot license expires on January 31, 2022.
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