[USA] Entergy proposes $1B grid hardening program in New Orleans

On October 17, 2023, Entergy New Orleans launched a $1 billion grid hardening program called “Operation: Gridiron.” [1] The initiative aims to make the New Orleans, Louisiana, grid stronger and prepare for more frequent, stronger storms. It was developed in response to a request by the city council following Hurricane Ida in 2021, and the company is now seeking approval for its plan from the council. The company would file progress reports with the city council every six months if approved. The plan would be put in place in two five-year phases. The proposed first phase would save customers about $216 million in storm restoration costs over 50 years. The company plans to recover costs via a “resilience and storm hardening” cost rider added to customer bills. Entergy said the plan would cut outage times by more than half and save customers millions of dollars. The proposed plan will upgrade thousands of poles to withstand 150 mph winds and harden 650 miles of power lines.

[1] https://www.entergynewsroom.com/news/entergy-new-orleans-announces-operation-gridiron-making-new-orleans-grid-stronger/

[USA] Lawfirm files lawsuit alleging HECO powerlines started Hawaii wildfires

On August 14, 2023, Singleton Schreiber, a fire litigation firm, filed a lawsuit on behalf of an individual against Hawaiian Electric Industries (HECO), Hawai’i Electric Light Company, and Maui Electric Company, alleging that the utilities’ powerlines started wildfires in Maui, Hawaii.[1] The wildfires broke out in Lahaina in West Maui on August 8, 2023; as of August 17, at least 110 people have passed away due to the fires. Over 2,200 structures have been damaged or destroyed. The Maui Emergency Management Agency estimates rebuilding will cost $5.52 billion.

The lawsuit alleges multiple instances of negligence, trespass, and nuisance as contributing factors to the fires. According to the lawsuit, the utilities were warned of the threat of wildfires as early as August 6 but either left their powerlines energized or, after deenergizing them, re-energized them too soon. The complaint points to several factors contributing to the utilities’ “poorly made decisions,” including failure to maintain proper tension on power lines and failure to implement proper vegetation management.

[1] https://singletonschreiber.com/first-individual-maui-wildfire-lawsuit-against-utilities-filed-by-singleton-schreiber/

[USA] APS breaks peak demand record seven days straight

On July 20, 2023, during a record heat wave in Arizona, Arizona Public Service (APS) customers set a new record for peak energy use, with customer energy use reaching 8,193 MW.[1] The new record was the most recent in a string of record-setting days. The previous all-time peak was set on July 15, and starting July 14, APS customers recorded the seven highest peak days ever. The previous peak demand record was 7,660 MW, set on July 30, 2020. APS advised customers to conserve energy during peak hours from 4-7 p.m., noting that the peaks reached during the heat wave were between 5 p.m. and 6 p.m.

“Despite historic levels of energy usage, APS and its customers experienced no issues related to power supply; and that does not happen by accident. It takes years of planning, maintaining a diverse energy mix, investing in and strengthening the electric system, and most importantly teams of people who are dedicated to keeping the lights on for customers when they need us most,” APS president Ted Geisler said. The utility invests more than $1.5 billion annually to maintain and upgrade the grid to maintain reliable service. In addition, APS will not disconnect customers for past due residential accounts through mid-October 2023 and will waive late fees during this time period.

[1] https://www.aps.com/en/About/Our-Company/Newsroom/Articles/APS-Powers-Seven-Days-In-Row-Of-Highest-Customer-Electricity-Use-Ever

[USA] Policy brief: utilities see EVs as an opportunity for a resilient grid

According to a policy brief published July 24, 2023, by the Zero Emission Transportation Association (ZETA), many power providers believe electric vehicle (EV) growth could build grid resilience so long as the federal government and states create certainty through regulations and planning.[1] In its policy brief, titled  ‘Powering the EV Market: How Electricity Providers are Planning for the Future,’ ZETA found that between 2023 and 2050, utilities will need to add 15-27 terawatt-hours of generation (0.3-0.6% of U.S. current capacity) every year to keep up with EV growth and electrification.

The policy brief examined case studies from seven utilities and electricity providers, examining how they prepare for more EVs on the road. The case studies provide insights into managed charging, demand forecasting, community incentive programs, and fleet electrification. For example, in California, where EV adoption is highest, Pacific Gas & Electric (PG&E) expects system demand to increase up to 70% over the next two decades as EV growth increases. The utility developed a forecasting tool to address this projected demand and integrated it into its distribution planning processes. Of the 3 million EVs that the utility expects in its footprint, 2 million will be integrated with the grid by participating in time-of-use rates, managed charging, or vehicle-to-grid bidirectional charging programs.

[1] https://www.zeta2030.org/policy-brief-powering-the-ev-market-how-electricity-providers-are-planning-for-the-future

[USA] PG&E launches two new programs to accelerate EV adoption in underserved communities

On July 18, 2023, Pacific Gas and Electric Company (PG&E) announced that it has launched two new programs in California designed to improve access to electric vehicle (EV) charging infrastructure for underserved communities as a way to increase EV adoption.[1] Citing a study from CalMatters that analyzed data from the California Energy Commission (CEC), PG&E pointed out that high upfront vehicle costs, lack of chargers for renters, and inadequate access to public charging stations in underserved communities are limiting EV expansion among these populations.

Through the Empower EV and Multifamily Housing and Small Business EV Charger pilot programs, the utility hopes to address the costs of installing chargers at single-family homes, multifamily housing units, nonprofit organizations, and small businesses in the region. The Empower EV program will provide income-eligible customers up to $2,500 in incentives to help cover the costs of installing EV charging infrastructure at single-family residences. In addition, Level 2 chargers will be provided free to approximately 2,000 eligible customers, and up to $2,000 in panel upgrades will be offered per eligible household, up to 800 homes. Through the Multifamily Housing and Small Business EV Charger Program, PG&E plants to install approximately 2,000 Level 1 and Level 2 EV chargers at 450 multifamily housing units, nonprofit organizations, and small businesses, with priority given to properties within low-income, rural, tribal, and other priority populations. The chargers will be provided at no cost to property owners, and the utility will cover two years of networking and software fees.

[1] https://www.pge.com/en_US/about-pge/media-newsroom/news-details.page?pageID=029f3373-c807-4cf1-bfbf-6c65ed571f48&ts=1689881980044

[USA] Duke Energy to sell unregulated distributed generation business to ArcLight affiliate

On July 5, 2023, Duke Energy announced that it has reached an agreement to sell its commercial distributed generation business to an affiliate of ArcLight Capital Partners, LLC, a middle market infrastructure investor, for an enterprise value of $364 million.[1] The utility expects approximately $259 million of proceeds from this transaction. Duke Energy intends to finalize the sales for its utility-scale and distributed generation businesses by the end of 2023 and will utilize the proceeds to strengthen its balance sheet and avoid additional holding company debt issuances associated with these assets. The distributed generation business being sold includes REC Solar operating assets, development pipeline, O&M portfolio, and distributed fuel cell projects managed by Bloom Energy. The transaction is subject to the satisfaction of customary closing conditions, including the expiration of the waiting period under the Hart-Scott-Rodino Act. In addition, approval from the Federal Energy Regulatory Commission (FERC) will be required for the sale of the Bloom Energy distributed fuel cell assets.

[1] https://investors.duke-energy.com/news/news-details/2023/Duke-Energy-to-sell-commercial-distributed-generation-business-to-ArcLight-for-364-million/default.aspx

[USA] EDF study finds utilities, fleet owners, consumers benefit when utilities cover infrastructure costs to support EV charging

According to a new report released on April 14, 2023, by the Environmental Defense Fund (EDF), an international nonprofit focused on solutions to environmental problems, utilities covering the cost of infrastructure upgrades needed for fleet charging can increase their revenue without raising electricity rates.[1] Large-scale electrification of medium- and heavy-duty vehicles is essential for the U.S. to meet its climate goals. However, the cost of upgrading the electrical infrastructure required to make a commercial site ready for EV charging, called “make-ready,” can account for up to 30% of the total cost of charging for fleets. Most U.S. utilities and regulators have been reluctant to finance these grid upgrades due to fears that it will lead to increasing everyone's electricity rates to pay for them.

The analysis, conducted for EDF by Synapse Energy Economics, uses two New York State utilities—Con Edison and National Grid—as case studies. It found that if utilities cover the make-ready cost for both private and municipal fleets, the investment will pay off for utilities and have a positive to neutral impact on ratepayers in both utility service areas. The study finds that with managed charging— the practice of aligning EV charging during times when clean, affordable electricity is most abundant — Con Edison’s make-ready program generates $1.1 billion in net revenue between 2023-2045, while National Grid’s program generates $141 million in the same time period. Managed charging is the practice of aligning EV charging during times when clean, affordable electricity is most abundant, reducing stress on the larger grid and mitigating pollution from power plants. Even without managed charging, the analysis found that investing in make-ready programs still had a positive to neutral impact. In addition, EDF contends that the results can be applied to states across the country due to the nature of the utilities studied; the two New York utilities are at opposite ends of the spectrum regarding grid costs, electricity demand profiles, and region.

[1] https://www.edf.org/media/worth-investment-report-finds-utilities-fleet-owners-consumers-benefit-when-utilities-cover

[USA] PG&E projects 32% percent higher gas and electricity bills this winter

On January 31, 2023, Pacific Gas and Electric Company (PG&E) warned its customers that the colder-than-normal temperatures mixed with increased costs of natural gas could lead to much higher energy bills this winter.[1] The utility said that compared to the same time last year, residential combined-use gas and electricity bills will be about 32% higher until March. PG&E cited higher demand and tighter supplies in the region. Natural gas prices have been much higher on the West Coast than in the rest of the U.S. since November 2022. Between January 19 and 25, California's average daily prices were five times higher than the U.S. benchmark prices. Residents are using more natural gas for heating during colder weather—customers have used more natural gas this winter than the past five-year historic average. In addition, power plants are utilizing more natural gas to meet electricity demand. However, the company noted that bill increases could be less severe if prices fall and the weather warms unexpectedly.

The utility said it supports the proposal to issue the annual April Climate Credit earlier this year, which would provide residential customers with credits of $91.17. The California Public Utilities Commission is scheduled to vote on February 2, 2023, on the proposal. Separately, more than 300,000 customers who experienced financial hardships during the pandemic will receive an automatic one-time bill credit before February 3, 2023, under the California Arrearage Payment Program.

[1] https://www.pge.com/en_US/about-pge/media-newsroom/news-details.page?pageID=57fb0682-a47e-4431-a678-7319d659e3ff&ts=1675355880012

[USA] Minnesota Power increases renewable energy targets for next 15 years

Based on an agreement reached with stakeholder groups as part of its latest Integrated Resource Plan (IRP) proceedings, Minnesota Power announced on November 7, 2022, that it will add up to 400 MW of wind energy and 300 MW of solar energy over the next 15 years as part of its EnergyForward plan.[1] The announcement is nearly double what the utility had initially proposed. The EnergyForward plan aims to help Minnesota Power achieve a full carbon-free energy system by 2050. According to the press release, over the next two weeks, the Minnesota Public Utilities Commission (PUC) will review the proposal negotiated with stakeholder groups, which included clean energy organizations, labor, and host communities. The PUC is expected to vote on the IRP on November 22, 2022. If approved, the utility will advance storage projects that support investment in its renewable portfolio and continue to evaluate the transition of its Boswell Energy Center, a coal-fired power plant. Other resource considerations, such as electric grid strengthening proposals and a previously approved natural gas power plant, have been deferred until future regulatory filings.

[1]https://minnesotapower.blob.core.windows.net/content/Content/Documents/Company/PressReleases/2022/PressRelease11072022.pdf

[USA] PG&E announces expansion of Enhanced Powerline Safety Settings technology following successful wildfire prevention in 2021 pilot

On April 5, 2022, Pacific Gas and Electric Company (PG&E), which serves over 5 million households in the northern two-thirds of California, announced that it will broaden the use of its Enhanced Powerline Safety Settings (EPSS) technology to all distribution powerlines in high fire-threat areas in 2022.[1] Launched as a pilot in July 2021, EPSS automatically shuts off power within one-tenth of a second if a potential threat to the electric system, such as a fallen tree branch, is detected. According to the press release, as of the end of 2021, the system successfully reduced reportable ignitions by 80% on affiliated circuits in High Fire-Threat Districts (HFTDs) compared to the previous three-year average across more than 11,500 HFTD miles of distribution lines.

The utility intends to expand the program to 25,500 HFTD miles of distribution lines within the company’s service area and in select adjacent areas. According to the company, unlike Public Safety Power Shutoffs (PSPSs), which are a last resort when severe weather conditions are forecast, EPSS is effective any time when dry fuels make powerline faults more likely to start a fire. The EPSS will be paired with a more surgical approach to reducing the frequency and duration of outages and the number of customers impacted. PG&E also said it intends to increase the resources available to customers affected by any shutoffs.

[1] https://www.pge.com/en_US/about-pge/media-newsroom/news-details.page?pageID=d8b31ca1-2f94-4d86-ba5b-f62d87b063fc&ts=1649362205969

[USA] Dominion Energy agrees to sell Hope Gas to Ullico

On February 11, 2022, Dominion Energy announced that it will sell its West Virginia-based natural gas company Hope Gas, also known as Dominion Energy West Virginia (DEWV), to Ullico’s infrastructure fund for $690 million.[1] The sale is expected to close in late 2022, subject to closing conditions, including approval from the Public Service Commission of West Virginia and clearance under the Hart-Scott-Rodino Act. Ullico’s infrastructure business plans to integrate DEWV with Ullico’s subsidiary Hearthstone Utilities, which owns and operates gas utilities in five states.[2] As part of the sale, Hearthstone will move its headquarters to West Virginia after the merger. DEWV employs about 300 and serves 111,000 West Virginia customers. It oversees 3,200 miles of gas distribution pipelines and more than 2,000 miles of gathering pipelines. Dominion Energy will continue to own and operate Mt. Storm Power Station in Mt. Storm, West Virginia. The transaction is not expected to impact customer rates. In addition, Hearthstone will uphold the current collective bargaining agreement with Utility Workers Union of America (UGWU Local 69) workers.

[1] https://news.dominionenergy.com/2022-02-11-Dominion-Energy-Agrees-to-Sell-West-Virginia-Natural-Gas-Distribution-Company-to-Ullico

[2] Indiana, Maine, Montana, North Carolina, and Ohio

[USA] PSE announces new target of 63% clean energy by the end of 2025

On December 20, 2021, Puget Sound Energy (PSE), a utility based in Washington, announced a new goal of reaching 63% clean electricity by the end of 2025 and net-zero carbon by 2045.[1] In October 2021, PSE filed its draft plan to achieve those goals with the Washington Utilities and Transportation Commission (UTC). On December 17, 2021, the utility filed its final Clean Energy Implementation plan (CEIP), which further defines a course of action for clean electricity programs and investments for the next four years. The plans align with the state’s Clean Energy Transformation Act (CETA).

The updated plan projects that the utility will have 63% clean energy by the end of 2025, up from 59% in the October draft plan and 34% in 2020. The plan proposes removing coal as a source of electricity by the end of 2025. It also aims to ramp up utility-scale renewables like wind and solar generation and calls for nearly doubling the installation of distributed energy resources (DERs). The plan also creates more ways for customers to save energy and reduce costs through energy efficiency improvements. In addition, it introduces new programs and incentives to reduce or shift energy use during peak times. The PSE’s implementation plan is under review by the UTC, which will conduct a public comment period and review process before making a decision.

[1] https://www.pse.com/press-release/details/Puget-Sound-Energy-raises-target-for-expanding-clean-energy-goals

[USA] Exelon subsidiary announces goal to achieve net-zero emissions by 2050

Exelon Utilities, a subsidiary of Exelon Corporation, announced its "Path to Clean" goal on August 4, 2021, which includes reducing its operations-driven emissions by 50% by 2030 compared to 2015 levels, and reach net-zero by 2050 as part of its efforts to address climate change.[1] Exelon Utilities is comprised of six utilities: Atlantic City Electric, Baltimore Gas & Electric (BGE), Commonwealth Edison (ComEd), Delmarva Power, PECO, and Potomac Electric Power Company (PEPCO). Together, the utilities deliver electricity and gas to more than 10 million customers across five states and the District of Columbia. Exelon Corporation has previously met or exceeded three other emissions reduction goals spanning both its generation company and utilities.

Exelon Utilities' plans to meet the new goal include electrifying 30% of its vehicle fleet by 2025 and 50% by 2030, concentration technology and infrastructure investments on increasing energy efficiency and utilizing clean electricity for operations, and modernizing natural gas infrastructure to reduce methane leaks and increase safety and reliability. In addition, Exelon Utilities will aim to reduce emissions beyond its company by continuing to advocate for climate policies, partnering with state and local leaders to achieve community emissions goals, and piloting new grid technologies. The company will also continue to prioritize energy efficiency programs, which it says helped customers save money on their energy bills and reduced usage by 22.3 million MWh in 2020.

[1] https://www.exeloncorp.com/newsroom/exelon-utilities-announces-goal-to-achieve-net-zero-emissions-by-2050

[USA] South Carolina regulators reject Duke IRPs

On June 17, 2021, the South Carolina Public Service Commission (PSC) voted 4-2 to reject the integrated resource plans (IRP) submitted by two Duke Energy subsidiaries, Duke Energy Carolinas and Duke Energy Progress.[1] The decision comes ten months after Duke filed its IRPs with regulators in North and South Carolina. The IRPs outlined six pathways for its electricity mix under different carbon policy scenarios. Duke favors the base case without strict carbon regulations. Under this pathway, Duke would add about 8.6 GW of solar and more than 1 GW of storage by 2035. The utility would also add 9.6 GW of new natural gas and close its remaining coal plants.

According to the PSC, Duke’s IRPs failed to meet the standards set in the state’s 2019 Energy Freedom Act, which aims to boost clean energy technologies by requiring utilities to consider procuring all sources of electricity generation. The commission questioned the modeling Duke used to project future natural gas prices as well as its estimation of the ability of solar to meet the state’s energy needs. The PSC’s directive asks the utility to make several changes to its plan related to modeling and energy price forecasts. The PSC requests that Duke’s assessments include 20-year Purchase Power Agreements for third-party solar priced at $38/MWh as a selectable resource, with additional PPA pricing at $36/MWh and $40/MWh. These prices are roughly on par with other 20-year PPAs in the region. A more detailed order is expected in the coming weeks. Once the order is out, Duke will have 60 days to file its modified IRP, followed by a 60-day comment and review period. The PSC then has 60 days to approve or reject the modified IRP.

[1] https://dms.psc.sc.gov/Attachments/Matter/f30b83c7-3382-4d64-b0b6-b59712378b3d

[Japan] Chugoku Electric Power Invested in Live Smart KK

Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.) announced on January 14, 2021 that it has invested in Live Smart KK (Live Smart, Headquarters: Tokyo), a venture company established in 2016 that provides smart home devices and service platforms based on Artificial Intelligence (AI) and Internet of Things (IoT) to support customers’ convenient and comfortable living. The investment amount has not been disclosed. This is the fifth time that EnerGia has invested in a start-up company.

A smart remote controller developed by Live Smart can control a wide variety of home appliances and equipment. Through EnerGia’s IoT platform, the controller can provide users with various AI-powered energy management services, such as setting individualized preferences for air conditioners.

Smartphones and smart speakers have become essential devices for many people, and the smart home market is expected to grow in the future. EnerGia sees this growth as an opportunity for Live Smart’s service platform, which can improve user’s lives and energy efficiency, to grow significantly in the future. Therefore, the company decided to invest in Live Smart and will consider future collaborations.[1]

[1] https://www.energia.co.jp/press/2021/12917.html

[Japan] Federation of Electric Power Companies Established the 2050 Carbon Neutral Realization Promotion Committee

On December 18, 2020, the Federation of Electric Power Companies (FEPC, Headquarters: Tokyo[1])[2] announced that it has established the 2050 Carbon Neutral Realization Promotion Committee. FEPC is an industry organization of the electric utilities in Japan that supports the harmonization of electric development planning. The committee will consider and discuss solutions to overcome various barriers for electric power businesses to achieve Japan’s 2050 carbon neutrality goal, which was announced by the Suga administration in October 2020.

The Committee will discuss five significant issues for achieving carbon neutrality: 1) Maximizing the use of nuclear power; 2) Making renewable energy Japan’s main energy source; 3) Promoting the development of low-carbon thermal power generation and decarbonization technologies; 4) Innovating new technology development (technologies include hydrogen, ammonia, Carbon Capture Utilization and Storage (CCUS)), carbon recycling, and next-generation furnaces); and 5) Promoting electrification. Based on the discussions, the committee will create and publish a roadmap and action plan.

The major members of the committee include Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[3]), Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture), Tokyo Electric Power (TEPCO, Headquarters: Tokyo), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Pref.), Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Pref.), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Pref.), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.), Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Pref.), Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Pref.), Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Pref.), Japan Nuclear Fuel (JNFL, Headquarters: Aomori Pref.[4]), Japan Atomic Power Company (JAPC, Headquarters: Tokyo), and J-Power (Headquarters: Tokyo).[5][6]

[1] https://www.fepc.or.jp/about_us/outline/soshiki/index.html

[2] https://www.fepc.or.jp/about_us/pr/oshirase/__icsFiles/afieldfile/2020/12/18/press_20201218.pdf

[3] http://www.hepco.co.jp/english/company/corporateprofile.html

[4] https://www.jnfl.co.jp/ja/company/about/

[5] https://www.fepc.or.jp/about_us/outline/soshiki/index.html

[6] https://www.fepc.or.jp/about_us/pr/oshirase/__icsFiles/afieldfile/2020/12/18/press_20201218.pdf

[Japan] JERA Released its Vision for the Digital Transformation of Power Plants

On October 1, 2020, JERA released its vision to implement "Digital Power Plants,” which describes the firm’s plans to integrate digital technology to optimize the operation and maintenance (O&M) of thermal power plants. JERA is one of Japan’s major energy companies and was established through a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture). JERA has established a Digital Power Plant Promotion Office within its O&M Engineering Department to spearhead this initiative. 

JERA's broad vision for the realization of digital power plants is as follows:
·       Facilities and equipment will continue to evolve by adopting shared data platforms, standardization, and advancing their operational processes.
·       World-class O&M professionals will transform the way that power plants operate.
·       Power plant workers will shift their focus from time-consuming work to data-driven innovations.

JERA has already taken actions to digitalize its power plant O&M prior to the release of its digital power plants vision. Since January 2018, JERA has been remotely monitoring for signs of abnormalities at power plants through utilizing Internet of Things (IoT) sensors, which has resulted in fewer shutdowns and forced outages. In April 2020, JERA implemented an Artificial Intelligence (AI) solution to optimize the operation of a boiler at Hitachinaka Thermal Power Plant in Ibaraki Prefecture, which has reduced the plant’s environmental impact and fuel consumption.

JERA’s vision anticipates that future improvements to power plant operations will link real-time data collected from plant operations with the technology expertise and “Kaizen know-how” (continuous improvement) that JERA has developed over the years. Specifically, JERA’s digital improvements will enable existing plants to 1) improve operations through automated, remote inspections, 2) reduce O&M costs and enhance equipment reliability by optimizing the planned outages schedule and incorporating predictive maintenance, and 3) improve the power generation efficiency and reduce the consumption of chemical agents and electricity. JERA will offer its digital power plant solutions to power generation companies in Japan and overseas.[1] [2]

[1] https://www.jera.co.jp/information/20201001_535

[2] https://www.jera.co.jp/english/information/20201001_535

[USA] APS proposes plan to give $144 million to Arizona tribes and others affected by coal plant closures

According to The Arizona Republic, Arizona Public Service (APS), Arizona’s largest electric utility and a subsidiary of Pinnacle West Capital Corporation, is proposing a plan to offer $144 million to aid three coal country and Native American communities where the company plans to close its remaining coal-run power plants.[1] Under the plan, APS would increase investments in Navajo Nation, Hopi Tribe and Joseph City area while retaining workers, providing electricity to regions in the Navajo Nation that are off the power grid, and developing renewable energy projects. APS is the majority owner of the Four Corners Power Plant on Navajo land which employs 327 people, 80% of them Native American. 350 people work at a Navajo Nation-owned coal mine next to the plant. Four Corners is scheduled to close by 2031. APS is also the majority owner of the Cholla Power Plant in Joseph City, which employs roughly 200 people and is scheduled to close by 2025, with one of the three remaining units closing in 2020. According to the CEO of APS Jeff Guldner, APS is trying to prevent layoffs with the 2020 closure.

[1] https://www.azcentral.com/story/money/business/energy/2020/11/06/arizona-public-service-co-offering-144-million-tribes-coal-country/6180829002/

[Japan] Hokkaido Electric Power’s First LNG Cargo from the United States arrived at Ishikari LNG Terminal, Hokkaido Prefecture

On September 21, 2020, Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[1]) announced that its first Liquefied Natural Gas (LNG) cargo ship, the Shinshu Maru, has arrived at the Ishikari LNG terminal at Ishikari Bay, Hokkaido Prefecture from Freeport City, Texas in the United States.

The newly arrived LNG will fuel HEPCO’s Ishikari Bay New Port Power Plant. The 70,000-ton LNG order is based on an LNG spot sales contract between HEPCO and JERA Global Markets (JERAGM, Headquarters: Singapore[2]), a group company of JERA (Headquarters: Tokyo) that specializes in LNG trades. JERA is a joint venture between Tokyo Electric Power Fuel & Power (headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture).

The Ishikari LNG terminal is operated by Hokkaido Gas (Headquarters: Sapporo City, Hokkaido Prefecture) and is shared with HEPCO. At the terminal, HEPCO owns the No. 3 tank, which was completed in July 2018, and the No. 4 tank, which is scheduled to be completed in October 2020. Once the No. 4 tank is completed, HEPCO will be able to accept imported fuel at a wide range of time periods, which will enable more flexible fuel purchases.

HEPCO decided to choose the U.S. as its LNG importer based on their desire to work with an attractive LNG supplier. Their decision took into account factors such as country’s stable political situation and its steady productivity of LNG, according to a Japanese media outlet. HEPCO will continue to combine long-term contracts with spot sales in order to ensure the stability of future fuel supplies.[3]

[1] http://www.hepco.co.jp/english/company/corporateprofile.html

[2] http://www.jeragm.com/contactus

[3] https://www.hepco.co.jp/info/2020/1251027_1844.html

[Japan] Shikoku Electric Power and Norinchukin Bank will Jointly Establish an Agricultural Technology Solutions Company

Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Prefecture) and Norinchukin Bank (Headquarters: Tokyo) announced on September 25, 2020, that they will establish Aitosa (Headquarters: Nankoku City, Kochi Prefecture), an agricultural technology solutions company, on November 2, 2020. The total investment in Aitosa is 25 million yen (approximately $237,000).[1] Yonden will own 95% of the shares of the company, and Norinchukin Bank will own the remaining 5% of the company. This marks the second time that Yoden has participated in an agricultural business since its entry into the agricultural sector in 2018. Yoden has also participated in a strawberry production project in Miki Town, Kagawa Prefecture, Shikoku.

Agriculture is the primary industry of the Shikoku region. However, the region’s agricultural industry has been facing many challenges, such as an aging workforce, a reduction in the total number of workers, and an increase in abandoned farms. Yonden and Norinchukin Bank believe that cutting-edge agriculture technologies like smart agriculture have the potential to address these issues. Smart agriculture technologies include robotic, Artificial Intelligence (AI), and Internet of Things (IoT) products.

Aitosa aims to develop smart agriculture technologies that will help the region revitalize its agriculture industry by addressing labor shortages. The company will build two green-housing facilities in Nankoku City, Kochi Prefecture, and will contribute to keeping and expanding the regional farming area for shishito pepper, which is a major local agricultural commodity. Aitosa will collaborate with Kochi Prefecture's Internet of Plants (IoP) project, a private-public partnership initiative, to develop an efficient cultivation method that utilizes environmental data inside the facilities, along with biological plant data.[2]

[1] ¥ 1 = $ 0.0095 USD. Based on the exchange rate as of October 18, 2020.

[2] https://www.yonden.co.jp/press/2020/__icsFiles/afieldfile/2020/09/25/pr010.pdf