[USA] IRS releases draft notices on IRA tax incentives

On October 5, 2022, the Internal Revenue Service (IRS) issued six notices requesting comments on different aspects of extensions and enhancements of energy tax benefits under the Inflation Reduction Act (IRA).[1] The announcement is the first formal step in the process of implementing the IRA. Most of the IRA’s $369 billion for energy and climate efforts are in the form of tax credits. The value of these tax credits is estimated at $270 billion. The six notices focus on the production tax credit (PTC) and investment tax credit (ITC), credit enhancements that would boost the credit value for meeting certain prevailing wage and domestic content requirements, home and building incentives, clean vehicle credits, manufacturing credits to help build clean energy supply chains, and credit monetization.

The Treasury Department also released a fact sheet that outlined the IRS’s implementation process. The department said it will convene roundtables with industry, labor unions, and climate and environmental justice advocates over the coming weeks. The Treasury stated that it would ideally like comments from the public on the new notices within 30 days.

[1] https://www.irs.gov/newsroom/irs-asks-for-comments-on-upcoming-energy-guidance

[USA] Entergy Louisiana, Entergy New Orleans, and Diamond Offshore announce MOU on future offshore wind development in the Gulf of Mexico

Entergy Louisiana, Entergy New Orleans, and Diamond Offshore Wind announced on September 23, 2022, that they had signed a memorandum of understanding (MOU) regarding the evaluation and potential development of wind power generation in the Gulf of Mexico. [1] According to the press release, the MOU could put Entergy in a position to develop a new source of clean power for customers and also the region’s economic development. The agreement provides a legal framework for Entergy and Diamond Offshore Wind to work toward the development of potential offshore wind demonstration projects located in Louisiana waters and will focus on the evaluation of grid interconnectedness to determine the ideal size and locations for future offshore wind developments. In January 2022, Louisiana Governor John Bel Edwards (D) submitted the Climate Action Plan, which included a goal to achieve 5 GW of offshore wind generation by 2035. The companies said the development of wind energy in the Gulf of Mexico would accelerate the state’s role as a leader in renewable energy development and fit in with the governor’s plan.

[1] https://www.entergynewsroom.com/news/entergy-louisiana-entergy-new-orleans-diamond-offshore-wind-seek-evaluate-offshore-wind/

[USA] FHWA approves EV charging network plans for all 50 states, D.C., and Puerto Rico

On September 27, 2022, the Federal Highway Administration (FHWA) announced that it has approved the Electric Vehicle Infrastructure Deployment Plans for all 50 states, the District of Columbia, and Puerto Rico under the National Electric Vehicle Infrastructure (NEVI) Formula Program.[1] The NEVI program, which was established by the Bipartisan Infrastructure Law (BIL) in 2021, will provide $5 billion to states over five years to build EV charging stations every 50 miles along the federal highway system. With the FHWA’s approval, states now have access to all FY 2022 and FY 2023 program funding, totaling more than $1.5 billion. This will allow the buildout of EV chargers covering 75,000 miles of highway across the U.S. “We have approved plans for all 50 States, Puerto Rico and the District of Columbia to help ensure that Americans in every part of the country – from the largest cities to the most rural communities—can be positioned to unlock the savings and benefits of electric vehicles,” Transportation Secretary Pete Buttigieg said.

Projects that can be funded under the program include upgrades to existing and construction of new EV charging infrastructure; operation and maintenance costs of these charging stations; installation of on-site electrical service equipment; community and stakeholder engagement; workforce development activities; EV charging station signage; data sharing activities; and related mapping analysis and activities.

[1] https://www.transportation.gov/briefing-room/historic-step-all-fifty-states-plus-dc-and-puerto-rico-greenlit-move-ev-charging

[USA] 1.8 million customers in Florida without power after Hurricane Ian makes landfall

As of September 30, 2022, over 1.8 million customers were without power in Florida after Hurricane Ian made landfall as a Category 4 hurricane with sustained winds of about 150 mph.[1] Florida Power and Light (FPL), the state’s largest electricity provider, said it has restored power to more than a half million customers, but as of the morning of September 30, about 1 million of its 5.8 million customers are still without power.[2] Initial assessments show that the company did not lose any transmission structures during the storm. According to a news release, FPL’s restoration workforce has nearly 21,000 workers. Other utilities, such as Duke Energy and Tampa Electric, have also begun mobilizing workers to help with the recovery efforts, with 10,000 and 3,000 workers, respectively.[3][4] According to the Edison Electric Institute (EEI), nearly 44,000 workers from at least 31 states have mobilized to assist in the recovery.[5] The storm made a second landfall in South Carolina as a Category 1 hurricane on the afternoon of September 30.

[1] http://www.psc.state.fl.us/Home/HurricaneReport

[2] http://newsroom.fpl.com/news-releases?item=126315

[3] https://news.duke-energy.com/releases/duke-energy-crews-to-begin-power-restoration-damage-assessment-as-ian-exits-florida?_gl=1*1t6estd*_ga*MTI4NDQ1NDM4OS4xNjY0NDg0MzAw*_ga_HB58MJRNTY*MTY2NDQ4NDI5OS4xLjEuMTY2NDQ4NDMwOC4wLjAuMA..&_ga=2.251099590.1552157911.1664484300-1284454389.1664484300

[4] https://www.tampaelectric.com/mediacenter/2022/Tampa-Electric-Begins-Restoring-Power-After-Hurricane-Ian-Update-No-1/

[5] https://www.eei.org/mutual-assistance/Ian

[USA] Hertz plans to order up to 175,000 EVs from GM over the next five years

On September 20, 2022, car rental company Hertz Corp. announced that it has agreed to order up to 175,000 Chevrolet, Buick, GMC, Cadillac, and BrightDrop electric vehicles (EVs) from General Motors Co. (GM) over the next five years.[1] According to the press release, the companies believe that the plan is the largest expansion of EVs among fleet customers as well as the broadest because it spans a wide range of vehicle categories and price points. The agreement will include EV deliveries through 2027. During this period, Hertz estimates that its customers could travel more than 8 billion miles in these EVs, saving about 3.5 million metric tons of CO2 equivalent emissions compared to similar gasoline-powered vehicles.

The rental car company aims to create the largest EV rental fleet in North America, with thousands of EVs available at Hertz locations across 38 states. Currently, Hertz’s goal is for one-quarter of its fleet to be electric by the end of 2024. The company expects to begin taking Chevrolet Bolt EVs and Bolt EUVs in Q1 2023. GM’s deliveries are projected to increase as it rapidly scales its EV production between 2023 and 2025. The ramp up in EV production will largely be driven by the opening of Ultium Cells battery cell plants in Ohio, Tennessee, and Michigan. The company plans an annual production capacity of 1 million EVs in North America by 2025.

[1] https://newsroom.hertz.com/news-releases/news-release-details/hertz-and-gm-plan-major-ev-expansion

[USA] Senator Manchin releases permitting reform legislation

On September 21, 2022, Senator Joe Manchin (D-WV) released his long-awaited permitting reform legislation.[1] The permitting reform legislation follows a deal made between Senate Majority Leader Chuck Schumer, D-N.Y., House Speaker Nancy Pelosi, D-Calif., and President Joe Biden and Senator Manchin, wherein the Democratic leaders agreed to include permitting reform legislation in the upcoming continuing resolution (CR) in exchange for Manchin’s support for the Inflation Reduction Act (IRA) of 2022.

According to the bill summary, the legislation would require the president to designate 25 strategically important energy and mineral projects that would receive priority federal review. The bill also aims to speed up environmental reviews for major energy and natural resource projects under the National Environmental Policy Act (NEPA). Federal agencies would be required to finish environmental impact statements within two years and environmental assessments within a year. It would also require the issuance of all other permits within 180 days of finishing the NEPA process.

In addition, the legislation sets a 150-day statute of limitations for court challenges and requires courts to give agencies no more than 180 days to act on remanded or vacated permits. It also requires federal agencies to approve the Mountain Valley natural gas pipeline, which is set to run from West Virginia to southern Virginia. The bill would give the Department of Energy (DOE) secretary the ability to designate proposed transmission projects to be in the national interest and the Federal Energy Regulatory Commission (FERC) to approve them if they meet certain conditions. It also clarifies that FERC has jurisdiction over hydrogen pipelines.

Manchin’s proposed permitting reform could be included in a continuing resolution to keep funding the federal government after this fiscal year ends on September 30, 2022. Unlike the IRA, which was passed through a budget reconciliation measure[2], the continuing resolution will need at least 60 votes to pass, meaning that bipartisan support will be necessary.

[1] https://www.energy.senate.gov/services/files/EAB527DC-FA23-4BA9-B3C6-6AB108626F02?utm_source=DCS+Congressional+E-mail&utm_medium=Email&utm_term=https%3a%2f%2fwww.energy.senate.gov%2fservices%2ffiles%2fEAB527DC-FA23-4BA9-B3C6-6AB108626F02&utm_campaign=MANCHIN+RELEASES+COMPREHENSIVE+PERMITTING+REFORM+TEXT+TO+BE+INCLUDED+IN+CONTINUING+RESOLUTION

https://www.energy.senate.gov/services/files/92E7EAA5-E7BC-48E1-8E7F-FE688AE43252?utm_source=DCS+Congressional+E-mail&utm_medium=Email&utm_term=https%3a%2f%2fwww.energy.senate.gov%2fservices%2ffiles%2f92E7EAA5-E7BC-48E1-8E7F-FE688AE43252&utm_campaign=MANCHIN+RELEASES+COMPREHENSIVE+PERMITTING+REFORM+TEXT+TO+BE+INCLUDED+IN+CONTINUING+RESOLUTION

[2] Reconciliation is a special process used to quickly advance high-priority fiscal legislation. It can only be used for things that change spending or revenue. Reconciliation only needs a simple majority (51 votes) to pass through the Senate.

[USA] Two-thirds of Puerto Rican customers still without power five days after Hurricane Fiona hit the island

As of September 22, 2022, five days after Hurricane Fiona made landfall in Puerto Rico, roughly 958,500 customers, about two-thirds of subscribers, are without electricity. [1] Hurricane Fiona, a category 1 storm, made landfall in Puerto Rico on September 18, 2022, knocking out electricity to the entire island. Parts of southern and western Puerto Rico were hit hard by the hurricane, and recovery in those parts could take months. LUMA Energy, Puerto Rico’s private grid operator, said it is too early to estimate how long it will take to restore power to the entire island.

On September 21, 2022, President Biden issued a major disaster declaration on Wednesday for Puerto Rico, making federal funds available to the island on a cost-sharing basis for debris removal, emergency protective measures, and other services.[2] The following day, President Biden announced that the federal government will go one step further and pay 100% of the costs of Puerto Rico’s recovery from Hurricane Fiona for the next month.[3]

[1][1] https://poweroutage.us/area/state/puerto%20rico

[2] https://www.whitehouse.gov/briefing-room/presidential-actions/2022/09/21/president-joseph-r-biden-jr-approves-puerto-rico-disaster-declaration-2/

[3] https://www.cnbc.com/2022/09/22/hurricane-fiona-biden-promises-federal-funding-for-puerto-rico-aid.html

[Japan] Pattern Energy closes financing on Japan’s largest offshore wind power+storage project, begins construction

On September 9, 2022, Pattern Energy Group and its affiliate in Japan, Green Power Investment Corporation (GPI), announced it had completed financing and begun full construction of its 112 MW Ishikari Offshore Wind project. Ishikari Offshore Wind is located about 3 km from the shore of Ishikari Bay in Hokkaido, Japan, and will feature a battery storage component with 100 MW x 180 MWh of capacity. The project and associated battery storage are expected to reach commercial operation in December 2023. The project has a 20-year power purchase agreement (PPA) with Hokkaido Electric Power Network for 100% of the power output. Ishikari Offshore Wind will utilize 14 Siemens Gamesa 8.0 MW wind turbines. The turbines are designed to meet local codes and standards regarding typhoons, seismic activities, 50 Hertz operation, and operation in high and low ambient temperatures. The turbines and associated supporting structures received ClassNK certification, which confirms that they meet the technical standards required by the Japanese government to approve construction.

Including Ishikari Offshore Wind, Pattern Energy has eight renewable energy facilities in Japan, either in operation or under construction. The other facilities include three onshore wind power facilities and two solar power facilities in operation, and three wind power facilities under construction.

[USA] BP to acquire EDF Energy Services

On September 12, 2022, BP announced that it has agreed to acquire EDF Energy Services (EDF ES), a retail power and gas provider, for an undisclosed amount. Based in Houston, Texas, EDF ES is a supplier of power, natural gas, and related services to commercial and industrial customers across the U.S. EDF ES’s customers are primarily large corporations and public entities, including retailers, universities, manufacturers and producers, municipalities, and power generators. Notably, it does not supply residential customers. BP said the deal will let it increase its capacity for lower carbon energy solutions. It is also the next step in the company’s goal to become an integrated energy company. EDF will integrate with other BP businesses that support decarbonization goals, such as BP Wind Energy, BP pulse, and BP Launchpad.

[USA] DOE report: coal plant sites could host 265 GW of advanced nuclear

According to a new report released by the Department of Energy on September 13, 2022, about 80% of operating and recently retired coal-fired power plant sites could host an advanced nuclear power reactor, with nearly 265 GW in total potential nuclear capacity.[1] The report, titled Investigating Benefits and Challenges of Converting Retiring Coal Plants into Nuclear Plants, was prepared by researchers from the Argonne, Idaho, and Oak Ridge national laboratories and looked at the feasibility of a coal-to-nuclear (C2N) transition. The report identified 190 operating coal plant sites that could host 198.5 GW of nuclear capacity and 125 recently retired plant sites that could handle 64.8 GW of nuclear capacity. According to the Federal Energy Regulatory Commission (FERC), the U.S. has about 100 GW of existing nuclear capacity, accounting for 8.2% of all generating capacity in the U.S.

In a case study examining the impacts and potential outcomes of replacing a 1.2 GW coal plant with nuclear, the report found that reusing infrastructure from the coal plant sites could reduce the overnight cost of capital of a nuclear facility by 15% to 35% compared with a greenfield construction project. In the case study, the report also found that regional economic activity could increase by as much as $275 million and add 650 new, permanent jobs to the region of analysis.

[1] https://fuelcycleoptions.inl.gov/SiteAssets/SitePages/Home/C2N2022Report.pdf

[USA] New England states launch effort to connect offshore wind to the grid

On September 1, 2022, five New England states—Massachusetts, New Hampshire, Connecticut, Rhode Island, and Maine— launched an effort to help connect offshore wind projects and other carbon-free resources to the power grid over the next three decades.[1] In a joint request for information (RFI), the states requested comments on how to limit the costs of transmission for consumers, where new power lines should be located, and how environmental justice and equity impacts should be considered. The states hope to speed up the process for building new power lines and related infrastructure and to make use of funding programs established by the Bipartisan Infrastructure Law (BIL). Although Vermont, the only state in New England without a coastline, is not participating in the joint initiative, it will remain an observer and supports the objectives of the initiative.

Currently, the New England states have about 8.3 GW of offshore wind under construction or in the permitting process. However, the RFI cited a 2020 study conducted by ISO New England (ISO-NE) that indicated the region could only add up to 5.8 GW of offshore wind without major new transmission reinforcements on land. “Any significant quantity of offshore wind beyond that amount may not be able to interconnect into the regional grid without significant transmission upgrades,” the RFI said. “In addition, the most easily accessible interconnection points along the southern New England coast are already at or beyond their full capacity with those offshore wind projects under contract or review.” Comments on the RFI are due October 14, 2022.

[1] https://newenglandenergyvision.files.wordpress.com/2022/09/transmission-rfi-notice-of-proceeding-and-scoping.pdf

[USA] MISO opens energy and operating reserves markets to storage

On September 6, 2022, the Midcontinent Independent System Operator (MISO) announced that Electric Storage Resources (ESRs) are now eligible to participate in its energy and operating reserve markets for the first time.[1] According to the press release, the new resource type has operational characteristics that support reliability and resilience. ESRs include batteries, pumped storage facilities, and compressed air energy storage. Although a “nominal” amount of storage capacity is currently registered, MISO’s generator interconnection queue shows that more than 150 energy storage projects (about 13,300 MW of capacity) are in development. “We are excited to see this space grow with increasing member interest and participation, particularly as we continue to adapt to the accelerating resource transition,” said Jessica Lucas, MISO’s executive director of system operations. “With the introduction of Electric Storage Resources to our market portfolio, we will continue to position MISO’s grid and its members for the Grid of The Future.”

The integration of these resources follows the Federal Energy Regulatory Commission’s (FERC) Order 841, which directed grid operators to remove barriers to market participation for storage resources. MISO had previously requested to delay the compliance deadline until 2025, but FERC denied that request.

[1] https://www.misoenergy.org/about/media-center/miso-introduces-electric-storage-resource-to-market-portfolio/

[USA] DOE announces initiative to cut enhanced geothermal costs by 90% by 2035

On September 8, 2022, Department of Energy (DOE) Secretary Jennifer M. Granholm announced the Enhanced Geothermal Shot, the fourth shot announced in the DOE’s Energy Earthshots Initiative.[1] The Enhanced Geothermal Shot aims to make enhanced geothermal systems (EGS) a widespread renewable energy option by cutting the cost of the technology by 90% to $45/MWh by 2035. EGS extracts heat by creating a subsurface fracture system to which water can be added through injection wells. Unlike present geothermal generation, which comes from hydrothermal reservoirs and is limited in geographic application, EGS could extend the use of geothermal resources to larger areas. According to the press release, more than five terawatts of heat resources exist in the U.S.

The DOE is investing in research and development to help reach the Enhanced Geothermal Shot goals. Recent investments include $44 million to help spur EGS innovations for DOE’s Frontier Observatory for Geothermal Energy Research (FORGE) field laboratory and up to $165 million to transfer best practices from oil and gas to advance both EGS and conventional geothermal. The Bipartisan Infrastructure Law (BIL) also included $84 million in funding to support four pilot EGS demonstration projects. Similar to its other Energy Earthshots Initiatives, the DOE plans to hold an Enhanced Geothermal Shot Summit.

[1] https://www.energy.gov/articles/doe-launches-new-energy-earthshot-slash-cost-geothermal-power

[USA] First Solar to invest $1.2B to expand its U.S. business following enactment of IRA

On August 30, 2022, First Solar said it will invest up to $1.2 billion to expand its U.S. manufacturing and grow its domestic footprint following the enactment of the Inflation Reduction Act (IRA), which included long-term tax incentives for solar energy.[1] “In passing the Inflation Reduction Act of 2022, Congress and the Biden-Harris Administration has entrusted our industry with the responsibility of enabling America’s clean energy future and we must meet the moment in a manner that is both timely and sustainable,” said Mark Widmar, chief executive officer of First Solar.

The company plans to scale up operations of its annual production capacity from 6 GW to over 10 GW by 2025. First Solar intends to build its fourth fully integrated domestic factory, with an annual capacity of 3.5 GW, in the Southeast. The company expects to invest up to $1 billion and start operations in 2025.  In addition, First Solar will invest $185 million in upgrading and expanding its Northwest Ohio manufacturing footprint by nearly 1 GW. It will also invest in expanding the capacity of its two operating facilities in Ohio and expand a third Ohio factory that is expected to be commissioned in the first half of 2023. The expansion will bring the company’s total investment in the state to more than $3 billion, with a cumulative annual production capacity of just over 7 GW by 2025.

[1] https://investor.firstsolar.com/news/press-release-details/2022/First-Solar-to-Invest-up-to-1.2-Billion-in-Scaling-Production-of-American-Made-Responsible-Solar-by-4.4-GW/default.aspx

[USA] Maine Supreme Court rules in favor of Avangrid’s transmission project

In a unanimous decision, the Maine Supreme Court ruled on August 30, 2022, that the November 2021 Maine referendum blocking the New England Clean Energy Connect (NECEC) is likely unconstitutional.[1] The NECEC is a $1 billion, 145-mile electric transmission line project that will carry Canadian hydropower through Maine to Massachusetts. Project developer Central Maine Power Co. (CMP), a subsidiary of Avangrid, had to stop construction of the transmission line project after 59% of Maine voters approved a referendum blocking the project in November 2021. The law bans major transmission lines from the area where the project would be built and requires two-thirds legislative approval for projects on state land retroactive to 2014.

In its decision in NECEC Transmission LLC, et al., v. Bureau of Parks and Lands, et al., the court said the ballot violated the developers’ constitutional rights by retroactively imposing new requirements on a permit previously issued by the Maine Public Utilities Commission. If Avangrid can show that it engaged in substantial construction on NECEC before voters approved the ballot, it can move ahead with the project. The Maine Supreme Court remanded the case back to a lower court to decide whether Avangrid meets the conditions for having the right to build the project.

[1] https://law.justia.com/cases/maine/supreme-court/2022/2022-me-48.html

[USA] WPP files with FERC to approve resource adequacy program

On August 31, 2022, the Western Power Pool (WPP) filed with the Federal Energy Regulatory Commission (FERC) to approve the Western Resource Adequacy Program (WRAP).[1] The WRAP is the region's first region-wide reliability planning and compliance program. Southwest Power Pool (SPP) will be the program operator, providing technical support. So far, 26 utilities from the northwest, parts of the desert southwest, Canada, and northern California have joined the non-binding program. These utilities include Avangrid, NVEnergy, PacifiCorp, and Portland General Electric. Together, these utilities have a 72,000 MW summertime peak load across ten states and one Canadian province. Participants can enter the binding program starting in Summer 2025.

The WRAP will set a regional reliability metric and use a consistent approach for accounting resources. Participants must show they have brought their “fair share” of regional capacity for the upcoming season seven months in advance. The program also includes a real-time component to be used during critical conditions. Through this, participants with excess capacity, based on near-term conditions, will share resources with those with a deficit. WPP hopes that FERC will give its approval by the end of 2022.

[1] https://www.westernpowerpool.org/news/western-power-pool-marks-major-milestone-files-wra

[USA] FERC approves extension for Mountain Valley pipeline

On August 18, 2022, the Federal Energy Regulatory Commission (FERC) extended the permit for the Mountain Valley natural gas pipeline project by four years.[1] The $6.6 billion project is being built by a joint venture of Equitrans Midstream, NextEra Energy, Consolidated Edison, AltaGas, and RGC Resources. The pipeline will run 304 miles from northwestern West Virginia to southern Virginia and deliver 2 billion cubic feet of gas daily to the Southeast. Construction on the project has been slowed by several court decisions rejecting federal permits. When FERC initially approved the pipeline in 2017, it said the project had to be operating by October 2020. However, in August 2020, FERC extended the permit deadline to October 13, 2022. With the most recent extension, the project must be completed by mid-October 2026. In its decision, FERC unanimously ruled that the basis for its findings in its initial 2017 approval remained the same. The commission rejected calls to conduct a supplemental environmental analysis. Equitrans now expects to complete the Mountain Valley project in the second half of 2023. Currently, the project is roughly 94% complete.

[1] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20220823-3076&optimized=false

[Japan] PM Kishida considers development of new nuclear reactors

On August 24, 2022, Japanese Prime Minister Fumio Kishida said the country will restart more idled nuclear power plants and consider developing safer, smaller nuclear reactors, signaling a renewed emphasis on nuclear energy a decade after the Fukushima disaster.[1] PM Kishida also said the government would look at extending the lifespan of existing reactors. The prime minister made the announcement at a "green transformation" conference focused on the country’s efforts to meet its environmental goals. The statement represents a policy shift; previously, the Japanese government has said it was not considering building new plants or replacing aging reactors.

Following the Fukushima nuclear plant disaster in 2011, most of Japan's nuclear power plants were taken offline for safety checks under tightened standards. Since then, utilities have set more than 20 reactors for decommissioning. Of the 33 reactors, 25 have been screened for safety checks by the Nuclear Safety Authority (NRA). Seventeen have been approved, but only ten have restarted. Japan’s government has previously announced plans to speed up restarts. It aims to have up to nine reactors restarted by winter 2022 to cope with energy constraints and to restart seven other reactors after summer 2023. The government also aims to extend the life of aging reactors to beyond 60 years from the initial 40 years.

[1] https://www.reuters.com/world/asia-pacific/japan-pm-call-development-construction-new-generation-nuclear-power-plants-2022-08-24/

[USA] Dominion threatens to abandon 2.6 GW offshore wind project

In a rehearing request filed with the Virginia State Corporation Commission (SCC) on August 22, 2022, Dominion Energy Virginia said it will abandon its planned 2.6 GW offshore wind farm if regulators do not reverse their decision to set a performance guarantee requirement for the project.[1] The 2.6 GW Coastal Virginia Offshore Wind project will include 176 wind turbines located about 27 miles off the coast of Virginia Beach and has an expected capital cost of $9.8 billion. On August 5, 2022, the SCC approved the project with a rate rider for recovering the cost of the project and related onshore transmission facilities. Under this decision, Dominion’s customers must be held harmless for any shortfall in energy production below the project’s expected 42% average annual capacity factor, measured on a three-year rolling average. According to the utility’s filing, “There is no precedent in the record of any utility being forced to take on an obligation of this nature to guarantee a capacity factor for its generating units over their entire life or, equally importantly, to insure against the risk of events beyond the utility’s control and its reasonable or unreasonable conduct.”

The SCC accepted Dominion’s rehearing request on August 24, 2022, and said the utility could begin recovering costs related to the project using a special rate rider. Opposing parties in the proceeding must respond to the rehearing request by September 13, 2022. The utility can reply to these submissions by September 22, 2022.

[1] https://scc.virginia.gov/docketsearch/DOCS/7ndt01!.PDF

[USA] California governor proposes keeping Diablo Canyon nuclear plant open an additional five to ten years

On August 12, 2022, California Governor Gavin Newsom (D) officially proposed keeping the two units of the Diablo Canyon nuclear power plant online until 2029 and 2030, with the possibility of extending the plant’s life through 2035.[1] The 2.2 GW Diablo Canyon Power Plant is California’s only nuclear power plant and provides nearly a tenth of the state’s electrical power. In 2018, state regulators approved a plan to retire the units in 2024 and 2025. However, stakeholders have recently been exploring the benefits of keeping the plant open longer. According to the governor’s office, a limited term extension for the nuclear plant is necessary to ensure reliability as the state achieves its goal to decarbonize its grid by 2045.

The proposed legislation would direct the California Public Utilities Commission to keep the plant’s two units online through 2029 and 2030 and decide by 2026 whether to keep the plant open longer. The proposed legislation includes a $1.4 billion loan from California’s general fund to Pacific Gas & Electric (PG&E), the plant’s operator, to cover the cost of relicensing the plant. It also outlines the terms of the loan agreement, including conditions under which PG&E would have to repay the loan.

[1] https://apnews.com/article/california-legislature-gavin-newsom-climate-and-environment-4968ee9da7fd1d10ad67bfdf03950873