[USA] Biden picks two-term Michigan Governor Granholm to lead DOE

According to Politico on December 15, 2020, President-elect Joe Biden will pick former Michigan Governor Jennifer Granholm to be the head of the Department of Energy (DOE).[1] Granholm, who served two terms as Governor of Michigan from 2003 to 2011, has been a strong advocate for zero-emissions vehicles and has argued that the U.S. risks being left behind by other countries if it does not develop alternative energy technologies. In an op-ed in the Detroit News, Granholm wrote, “[T]he private sector needs greater support and political will from our policymakers to help us fully realize the potential of a zero-carbon future. The economics are clear: The time for a low-carbon recovery is now.”

Picking Granholm for DOE secretary is a clear sign that Biden wants the department to play a central role in achieving the targets of Biden’s climate plan. While the DOE’s budget is primarily devoted to maintaining the U.S.’s nuclear weapons arsenal, it also operates 17 national labs that help develop advanced technology used in renewables, nuclear energy and fossil fuel production. Under the Obama administration, the DOE oversaw tens of billions of dollars in loan guarantees and grants that expanded the adoption of solar and wind power and helped drive down the costs of renewables. The DOE also sets appliance standards, conducts research on innovations like electric heat pumps, and oversees building and residential energy efficiency programs, all of which will be key to reducing emissions from buildings.

[1] https://www.politico.com/news/2020/12/15/biden-to-tap-former-michigan-gov-granholm-to-lead-energy-department-445782

[USA] GE Renewable Energy announces first U.S. wind turbine blade recycling program

On December 8, 2020, GE Renewable Energy announced that it has signed a multi-year agreement with Veolia North America (VNA), a consulting firm that provides solutions to promote sustainability and a circular economy, to recycle blades removed from its onshore turbines in the U.S. during upgrades and repowering efforts, the first program of its kind in the U.S.[1] GE plans to use this agreement to recycle the majority of blades that are replaced during repowering efforts. Once the blades are removed from the turbines, they will be shredded at VNA’s processing plant in Missouri and then used as a replacement for coal, sand, and clay at cement manufacturing facilities. Nearly 90% of the blade material, by weight, will be reused as repurposed material for cement production. More than 65% of the blade weight will replace raw materials and about 28% of the blade weight will provide energy for the chemical reaction that takes place in the kiln. Environmental impact analysis by Quantis U.S. found that the process will make while reducing CO2 emissions from cement production by a net 27%. According to the GE press release, similar recycling processes in Europe have been effective at a commercial scale. GE has committed to reducing the environmental impacts of its products throughout their life cycles. To this end, GE announced a pledge in 2019 to decarbonize its operations and achieve carbon neutrality by the end of 2020.

[1] https://www.ge.com/news/press-releases/ge-renewable-energy-announces-us-blade-recycling-contract-with-veolia

[USA] NRDC Report: LNG as bad for climate as coal over next 20 years

According to a report released on December 8, 2020 by the Natural Resources Defense Council (NRDC), a non-profit environmental advocacy group, projected increases in U.S. exports of liquefied natural gas (LNG) are likely incompatible with holding the rise in global temperature at 1.5° Celsius.[1] [2] The report, titled “Sailing to Nowhere: Liquefied Natural Gas Is Not an Effective Climate Strategy”, found that although greenhouse gas (GHG) emissions from U.S. LNG are lower than coal over a 100-year time span, methane’s more immediate impact compared to CO2 means the "near-term" climate effect of LNG over the next 20 years is similar to coal. The emissions from the LNG industry will generate up to 213 million metric tons of new GHG emissions by 2030, which is equal to the annual emissions of 28 to 45 million fossil fuel-powered cars, according to the report. Much of LNG’s climate impact also comes from the extraction, transport, liquefaction, and re-gasification of LNG. The report also emphasized that the long lifespan of LNG infrastructure “locks in” fossil fuels instead clean energy which prevents of clean energy technologies like wind and solar, which produce significantly lower life-cycle GHG emissions, from expanding. The report concluded that the estimated social cost of U.S. LNG exports was $8.1 billion in 2019 and would be $30.5 billion per year by 2030.

[1] https://www.nrdc.org/resources/sailing-nowhere-liquefied-natural-gas-not-effective-climate-strategy

[2] https://www.nrdc.org/sites/default/files/sailing-nowhere-liquefied-natural-gas-report.pdf

[USA] LBNL releases annual studies on wind and solar, solar gaining ground

The Lawrence Berkeley National Laboratory (LBNL) released its annual wind energy data update in August 2020 and its annual utility-scale solar data update in November 2020.[1] [2] During a webinar on December 8, 2020 that compared the data from these studies, Mark Bollinger, one of the lead authors on the studies, concluded that solar is gaining ground on wind and natural gas in terms of projects seeking approval to connect to the grid.[3] On average, although solar is still more expensive, it delivers a greater net financial benefit to customers on average, according to Bollinger.

LBNL noted that new solar projects are benefiting from a growing trend toward "hybrid" combinations of renewable generation with battery storage which help with the “duck curve” challenge. This growing trend is helped by the federal investment tax credit, for which solar and battery hybrid projects are eligible while wind and battery pairings are not. However, whether wind or solar power is cheaper depends heavily on the region due to varying environmental conditions. The lab also emphasized that wind and solar still total no more than 10% of U.S. electricity output and there are several issues that could slow renewable market growth. Phaseouts of federal tax credits could significantly slow down market growth. Bollinger also added that in regions where the two power sources compete, "they tend to cannibalize their own market value” which could further slow down renewable growth.

[1] https://eta.lbl.gov/publications/wind-energy-technology-data-update

[2] https://eta.lbl.gov/publications/utility-scale-solar-data-update-2020

[3] https://www.youtube.com/watch?v=gUXDG7SzIl8

[USA] Vineyard Wind selects GE as wind turbine supplier; puts project on hold

On December 1, 2020, Vineyard Wind, a joint venture between Avangrid Renewables and Copenhagen Infrastructure Partners (CIP), announced that it has selected General Electric (GE) as the supplier of wind turbine generators for its Vineyard Wind 1 project.[1] Vineyard Wind 1 is an 800MW project located off the coast of Martha’s Vineyard, Massachusetts and will be the first large-scale offshore wind farm in the U.S. As a part of this decision, Vineyard Wind has decided to temporarily withdraw its Construction and Operations Plan (COP) from further review by the Bureau of Ocean Energy Management (BOEM) in order to conduct a final technical review associated with the inclusion of GE Renewable Energy’s Haliade-X wind turbine generators. According to Vineyard Wind’s CEO, Lars T. Pedersen, the company believes that the move will avoid more federal delays and provide the shortest timeline for delivering the project. Vineyard Wind expects the review to take several weeks after which it will continue the permitting process with BOEM. The company still plans to reach financial close in the second half of 2021 and begin delivering energy to Massachusetts in 2023.

[1] https://www.vineyardwind.com/press-releases/2020/12/1/vineyard-wind-selects-ge-renewable-energy-as-preferred-turbine-supplier

[USA] Senate Votes to Confirm Christie and Clements to FERC

The Senate voted on November 30, 2020 to confirm the nominations of Republican-pick Mark Christie and Democrat-pick Allison Clements to the Federal Energy Regulatory Commission (FERC).[1] Clements, who will be filling the spot left by Commissioner Cheryl LaFleur in July of 2019, will serve on the commission until 2024 and Christie, who will fill the spot left by Commissioner Bernard McNamee in June 2020, until 2025. Clements has over two decades of experience in federal energy regulation for the public and private sector. Christie has served as the chairman of the Virginia State Corporation Commission, a state regulatory agency whose authority includes utilities, since 2004. The pair was nominated by the White House in July 2020 and advanced by the Senate Committee on Energy and Natural Resources in November 2020. Their confirmation by the Senate means FERC will have a full quorum for the first time since before the departure of Commissioner Robert Powelson in 2018. The other members of FERC are Chairman James Danly (Republican), former Chairman Neil Chatterjee (Republican), and Commissioner Richard Glick (Democrat). FERC will be a majority Republican body until June 2021 when former Chairman Neil Chatterjee's term ends.

[1] https://www.ferc.gov/news-events/news/senate-votes-confirm-christie-clements-commission

[USA] Mayors unveil $60B “Marshall Plan for Middle America”

On November 12, 2020, Pittsburgh Mayor Bill Peduto and other mayors from Kentucky, Ohio and West Virginia announced the "Marshall Plan for Middle America," a $60 billion per year plan running from 2021 to 2030 that will help the region transition away from fossil fuels toward more a sustainable economy.[1] The nonpartisan plan was drafted by academic and policy researchers based at the University of Pittsburgh, the University of Massachusetts Amherst, the City of Pittsburgh, the Steel Valley Authority and the Heartland Capital Strategies Network, and the Enel Foundation. The plan calls for federal and private funds to provide $15 billion in block grants to local governments to make buildings more energy efficient; $15 billion in low-interest loans for clean energy production; $15 billion in tax incentives for manufacturers to develop clean energy equipment; and $15 billion in workforce development funds to help further understanding of clean energy. The plan notes that although local action has been taken, federal help is key, especially for jurisdictions in rural Appalachia that struggle economically. The authors estimate that the investments will generate an average of about 270,000 direct plus indirect jobs and an additional 140,000 induced jobs, for a total average annual increase of about 410,000 jobs.

[1] https://www.sustainablebusiness.pitt.edu/sites/default/files/mp4ma_roadmap_-_final_1.pdf

[USA] New Jersey regulators to collaborate with PJM on developing offshore wind transmission solutions

The New Jersey Board of Public Utilities (BPU) announced on November 18, 2020 that it has submitted a solicitation to develop offshore wind transmission solutions in 2021 with PJM Interconnection, which makes New Jersey the first state to engage in this type of transmission planning.[1][2] The State Agreement Approach (SAA), a new type of solicitation established by FERC Order 1000, is intended to explore new frameworks to advance offshore wind energy. The SAA, which was unanimously approved by the BPU, requests PJM to incorporate New Jersey's offshore wind public policy objectives into its transmission planning process starting in the first quarter of 2021 and authorizes PJM to solicit potential offshore wind transmission solutions from developers on behalf of BPU. Under this solicitation process, the BPU will examine details on ready-to-build transmission options, including key considerations such as cost, siting, environmental impacts, and the timeframe for construction. The results of the 2021 solicitation will be revealed by PJM later in 2021 in collaboration with New Jersey.

New Jersey’s goal of generating 7.5 GW of power from offshore turbines by 2035 is second only to New York and will rapidly expand the state’s renewable energy. During the state’s first two offshore wind solicitations, BPU staff recommended a coordinated approach to generation and transmission. However, with the resource set to expand substantially, the BPU recognizes that there needs to be an integrated transmission plan early in the planning process so that there is no double building or unnecessary environmental disruption.

[1] https://www.nj.gov/bpu/pdf/boardorders/2020/20201118/8D%20-%20ORDER%20Offshore%20Wind%20Transmission.pdf

[2] https://www.bpu.state.nj.us/bpu/newsroom/2020/approved/20201118a.html

[USA] Report: Rule changes at DOE could save U.S. households $230 a year on utility bills by 2050

On November 17, 2020, the Appliance Standards Awareness Project and the American Council for an Energy-Efficient Economy released a report that found that energy efficiency rules from the Department of Energy (DOE) for 47 products could reduce carbon emissions by 1.5 billion to 2.9 billion metric tons through 2050 which is equal to the closing 13 to 25 coal plants.[1] The standards that the report recommends could be met using current technology and completed over the next few years. The report noted that of the 47 products the report recommended standards for, strengthened standards for residential water heaters, commercial and industrial fans, residential furnaces, and light bulbs could provide the greatest potential emissions reductions.

The rule changes would save the average U.S. household more than $100 a year in utility costs by 2030, $230 a year by 2035, and nearly $350 a year by 2050. Cumulatively, consumers and businesses could potentially save $1.1 trillion on utility bills. The standards would also reduce peak electricity demand by almost 90 GW by 2050, which is equivalent to about 13% of total peak demand today. According to the report, the DOE could achieve greater emissions reductions by setting standards for products that do not currently have any standard and by improving test procedures used to rate products’ energy and water use. The report does acknowledge, though, that the DOE has not finished any updates for appliance standards since the beginning of the Trump administration, and as of November 2020, it has missed 28 legal deadlines for reviewing appliance standards.

[1] https://www.aceee.org/press-release/2020/11/report-biden-could-slash-carbon-pollution-energy-costs-efficiency-standards

[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/

[USA] 14 states sue DOE over failure to update appliance efficiency standards

On November 9, 2020, 12 states and two cities[1] filed a lawsuit in the U.S. District Court for the Southern District. against the Department of Energy (DOE) over the DOE’s failure to review and update 25 standards for a wide range of appliances including washers and dryers, dishwashers, microwaves, water heaters, room air conditioners, small electric motors, furnaces, and fans.[2] According to the lawsuit, the updated standards could save $580 billion in energy costs and avoid over 2 billion metric tons of carbon dioxide emissions by 2050. In the November lawsuit, the states say the Trump administration has violated the Energy Policy and Conservation Act (EPCA) which requires standards to be reviewed every six years. The EPCA covers more than 60 categories of appliances; these appliances account for about 90% of the total amount of energy consumed in homes, 60% of the energy used in commercial buildings, and 30% of the energy used by industry. A similar lawsuit was filed on October 30, 2020 by six environmental and consumer groups[3] which asked that the court direct the DOE to "promptly initiate rulemakings and complete reviews" of the missed standards.[4] 

[1] New York, California, Colorado, Connecticut, Illinois, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, Oregon, Vermont, Washington, the District of Columbia and the city of New York.

[2]https://oag.ca.gov/sites/default/files/2020%2011%2009%20Missed%20Deadline%20Complaint%20with%20Attachments%20FILED.pdf

[3] Natural Resources Defense Council, Public Citizen, Sierra Club, the Center for Biological Diversity, Consumer Federation of America, and the Massachusetts Union of Public Housing Tenants with Earthjustice as their counsel

[4] https://www.nrdc.org/sites/default/files/complaint-doe-standards-delay-20201030.pdf

[USA] DOE Report: Certain policies key to lower barriers to low-income rooftop solar uptake

A new study from the Department of Energy’s (DOE) Lawrence Berkeley National Laboratory (Berkeley Lab) published in Nature Energy in November 2020 found that three of the five policy and business models studied increased adoption of solar photovoltaics (PV) among low- and middle-income households—defined as households that were earning less than the median income in counties where they were located—thus increasing adoption equity.[1] The study, titled “The impact of policies and business models on income equity in rooftop solar adoption,” was led by Eric O’Shaughnessy, a Berkeley lab affiliate researcher, and co-authored by Galen Barbose, Ryan Wiser, Sydney Forrester, and Naïm Darghouth, all of Berkeley Lab’s Electricity Markets & Policy group, which conducts research to inform decision-making in the U.S. electricity sector.

According to the study, as much as 42% of the U.S.’s rooftops that could accommodate solar panels are in low- to moderate-income housing but many solar programs are not bringing these households in the rooftop solar market which could "decelerate" the solar industry and slow emission cuts. The study evaluated the effects of five types of programs or business models on adoption equity: financial incentives targeted at low- and middle-income households; leasing, which reduces upfront costs; Property Assessed Clean Energy Financing (PACE), a program to finance PV through property tax payments that is only available in California, Florida, and Missouri; financial incentives offered to customers of any income level; and Solarize, a community initiative to recruit a coalition of prospective PV adopters. Their analysis found that the first three types of interventions – targeted incentives, leasing, and PACE – are effective at increasing adoption equity.

[1]  https://newscenter.lbl.gov/2020/11/09/how-to-accelerate-solar-adoption-for-the-underserved/

[USA] Report: Not-for-profit utilities less prepared for cybersecurity threats

According to a Moody’s Investors Service report released on November 4, 2020, privately owned utilities are better prepared to face cybersecurity threats than not-for-profit utilities.[1] [2] The report surveyed 115 private, state-owned, unregulated and not-for-profit electric utilities. Moody's found that smaller utilities that operate in the not-for-profit space don't have the same resources to handle cybersecurity threats while private utilities have more funds to combat cyberthreats and are more likely to have advanced defensive tools at their disposal to counteract hackers. Larger utilities also have more training against some of the common attack methods like email spearphishing, which is when hackers send malicious links aimed at tricking victims to give up valuable information or inserting malware into their devices. The report also found that only the largest utilities with total assets valued at over $100 billion have directors on their board with any cybersecurity expertise.

[1]https://www.eenews.net/energywire/2020/11/05/stories/1063717835?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire

[2] https://www.moodys.com/research/Moodys-Electric-utilities-cybersecurity-readiness-tied-to-scale-and-business--PBC_1252439

[USA] Utility commission incumbents set to retain majority of their seats in 2020 election

In the ten states that held elections for public service commissions on November 3, 2020, incumbents are set to retain the vast majority of their seats.[1] As of November 6, 2020, incumbents will retain seats in Nebraska, Oklahoma, North Dakota, South Dakota and Alabama. Arizona’s election for three available commission seats remains too close to call as of November 6, 2020, with Democrat Anna Tovar, incumbent Republican Lea Márquez Peterson and Republican James O'Connor in the lead by narrow margins.[2] Georgia also remains undecided, but Republican incumbents Jason Shaw and Lauren McDonald both lead in the vote.[3] In Louisiana, Democrat incumbent Foster Campbell has retained his seat, but Republican incumbent Eric Skrmetta is headed to a run-off with his Democratic challenger Allen Borne.[4] Montana voted to retain Republican incumbent Tony O'Donnell.[5] Republican James Brown defeated Democrat Tom Woods for the second seat and Republican Jennifer Fielder won the final seat. In New Mexico, 56% of voters approved a constitutional amendment that will reduce the Public Regulation Commission from five commissioners to three, with all three members to be appointed by the governor.[6]

[1] https://www.utilitydive.com/news/utility-commissions-largely-retained-incumbents-on-election-night-with-pot/588448/

[2] https://www.azcentral.com/elections/results/2020-11-03/state/arizona/

[3] https://www.nytimes.com/interactive/2020/11/03/us/elections/results-georgia.html?auth=login-email&login=email

[4] https://www.nytimes.com/interactive/2020/11/03/us/elections/results-louisiana.html

[5] https://montanafreepress.org/2020/11/03/one-incumbent-and-two-newcomers-headed-for-psc/?utm_source=Energy+News+Network+daily+email+digests&utm_campaign=8c6121486a-EMAIL_CAMPAIGN_2020_05_11_11_46_COPY_01&utm_medium=email&utm_term=0_724b1f01f5-8c6121486a-89257591

[6] https://www.nytimes.com/interactive/2020/11/03/us/elections/results-new-mexico.html

[USA] BLM approves $4 billion oil project in the National Petroleum Reserve-Alaska

On October 27, 2020, the Bureau of Land Management (BLM), an agency within the Department of the Interior (DOI), approved ConocoPhillips Alaska Inc.'s Willow Master Development Plan, a $4 billion oil project in the National Petroleum Reserve-Alaska (NPR-A).[1] The NPR-A is a 23-million-acre piece of federally managed land that lies west of Alaska's Prudhoe Bay oil field and the Arctic National Wildlife Refuge (ANWR). According to BLM, the project could produce up to 160,000 barrels of oil per day over its anticipated 30-year life which will equal approximately 590 million total barrels of oil. BLM estimates the project will generate up to 1,000 jobs during construction and 400 permanent positions to keep it operating. BLM’s decision allows construction of up to three drill sites and associated processing and support facilities. BLM says the decision also adopts modifications to the project based on input from tribal governments, cooperating agencies and various other stakeholders received during the comment period for the project’s environmental impact statement (EIS).

[1] https://www.blm.gov/press-release/trump-administration-approves-willow-master-development-plan

[USA] Report: Carbon price in PJM would cut emissions by 30%

According to a study released on October 28, 2020 by the consulting firm Energy + Environmental Economics (E3) and commissioned by the Electric Power Supply Association (EPSA), a national trade group representing competitive power suppliers, PJM Interconnection, the nation’s largest grid operator, could reduce greenhouse gas (GHG) emissions nearly 30% and save consumers $2.8 billion by 2030 by setting a modest carbon price.[1]

The report examined four scenarios: a Business as Usual (BAU) scenario that is representative of current policy; a Renewables Portfolio Standard (RPS) scenario where increased renewable generation is mandated; a Clean Energy Standard (CES) scenario that credits any form of qualifying clean power; and a Greenhouse Gas (GHG) Reduction scenario that places a price on carbon through a cap-and-trade program. Of these scenarios, the report found that the most cost-effective policies are ones directly target carbon emissions, either by placing a price on carbon or by placing a limit on electricity-sector carbon emissions. The report found that a carbon price of $10 per ton could reduce 80 million metric tons of GHG emissions in PJM. The study also found that current state policies that mandate low-carbon goals such as RPS are "costly and ineffective" at reducing emissions. These policies would increase system costs by over $3 billion per year by 2030 while only achieving 40 million metric tons of emissions reductions.

[1] https://www.eenews.net/assets/2020/10/29/document_ew_02.pdf

[USA] FERC issues policy proposal statement on carbon pricing

On October 15, 2020, the Federal Energy Regulatory Commission (FERC) issued a proposed policy statement saying the Commission is willing to consider grid operator’s requests to set a carbon price.[1] The proposed policy statement also asserts that FERC has authority over regional market rules incorporating a state-determined carbon price because it fits under FERC’s jurisdiction over wholesale rates under the Federal Power Act (FPA). However, FERC acknowledged that whether the carbon pricing rules proposed in any particular FPA section 205 filing fall under FERC jurisdiction will be based on the specifics of that filing. Stakeholders now have 30 days to comment on the proposal.

FERC’s proposed policy statement—led by Republican FERC Chairman Neil Chatterjee and Democratic Commissioner Richard Glick—follows the September 30, 2020 technical conference where expert panelists identified a diverse range of benefits from state-determined carbon pricing including the development of technology-neutral, transparent price signals within the markets and providing market certainty to support investment. The panelists also largely defended FERC’s authority to address carbon pricing proposals from grid operators. Currently, states are leading in efforts to address climate change by adopting policies to reduce their greenhouse gas emissions. 11 states have some version of carbon pricing, and other entities like regional market operators are examining the benefits of this approach.

[1] https://www.ferc.gov/news-events/news/ferc-proposes-policy-statement-state-determined-carbon-pricing-wholesale-markets

[USA] NextEra announces record renewables, expanded green hydrogen in Q3 earnings call

During its Q3 earnings call on October 21, 2020, Florida-based NextEra announced that the backlog of renewable energy projects that the utility expects to construct over the next few years now exceeds 15 GW, more than the total current renewables portfolio of its wholesale generating subsidiary, NextEra Energy Resources.[1] Since the beginning of 2020, NextEra has signed contracts for roughly 4,800 MW of renewable projects, including 2,200 MW between July and September. The 4,800 MW includes 1,000 MW of solar and storage projects for NiSource Inc.'s Northern Indiana Public Service Co. and a 325-MW, four-hour battery storage system in California that NextEra claims will be the largest in the world. NextEra Resources is also planning on moving into green hydrogen and aims to replicate the approach it has used to build its renewable energy portfolio. NextEra Energy Resources has developed a pipeline of approximately 50 potential green hydrogen projects spanning the power, transportation and industrial sectors.

[1] http://www.investor.nexteraenergy.com/~/media/Files/N/NEE-IR/reports-and-fillings/quarterly-earnings/2020/Q3/NEEQ32020News%20Release%20Final.pdf

[USA] Avangrid and PNM Resources announce merger

Avangrid Inc. announced on October 21, 2020 that it is planning to acquire Public Service of Company of New Mexico (PNM) Resources, New Mexico’s largest electric utility company, in a $4.3 billion transaction.[1] The transaction represents a combined $8.3 billion enterprise value. The merger would cement Avangrid as the third-largest renewable energy operator in the U.S. with renewable operations in 24 states. The combined entity would also own 10 regulated utilities in six states. Avangrid estimates that the combined company would have nearly 11,000 MW of generation capacity in its portfolio, including more than 7,600 MW of that coming from wind. Both companies plan on transitioning to lower-carbon energy. Avangrid has pledged to be carbon neutral by 2035. PNM has said it plans to provide 100% emissions-free power by the end of 2040 which would be 5 years ahead of New Mexico’s zero-carbon resources deadline.

The boards of each company have approved the merger, and Avangrid and PNM Resources hope to close their deal by the end of 2021, though the proposal must pass federal and state regulatory bodies. The proposal includes an all-cash offer for PNM Resources at $50.30/share which essentially cashes out existing investors in PNM Resources.

[1] https://www.businesswire.com/news/home/20201021005299/en

[USA] FERC approves Mountain Valley Pipeline construction

In a 2-1 decision on October 9, 2020, the Federal Energy Regulatory Commission (FERC) granted developers of the Mountain Valley Pipeline, which runs from West Virginia to southern Virginia and aims to be in service in 2021, permission to resume construction on the 303-mile natural gas project.[1] In a separate order filed the same day, FERC lifted an October 2019 stop-work order which allows construction to move forward on all but a 25-mile exclusion zone that includes the Jefferson National Forest. The project lacks the necessary authorizations to pass through the national forest, although two permits that were set aside by legal challenges have since been reissued. In its decision, FERC found that a supplemental environmental impact statement (EIS) is not required for construction to move forward. In his dissent, Glick said FERC’s responsibility is to balance all stakeholder interests “not just the desire to complete the pipeline in the shortest time possible." Additionally, Glick argued that the order does not address “the uncertainty created by the outstanding permits, not to mention the litigation that is likely to follow, and instead rushes to recommence construction."

[1] https://www.eenews.net/assets/2020/10/12/document_ew_03.pdf