[USA] First offshore wind lease auction on West Coast generates $757 million

According to the Bureau of Ocean Energy Management (BOEM), the first offshore wind lease auction on the West Coast drew bids from 5 companies totaling $757.1 million.[1] The lease sale, announced in October 2022 and held over two days in December 2022, offered five lease areas covering 373,268 total acres off central and northern California. The leased areas have the potential to produce over 4.6 GW of floating offshore wind energy. The provisional winners include RWE Offshore Wind Holdings, California North Floating, Equinor Wind US, Central California Offshore Wind, and Invenergy California Offshore.

The sale included a 20% bidding credit for bidders who committed to funding workforce training or supporting the development of a domestic supply chain for the floating wind energy industry. This credit is expected to result in over $117 million in investments for these critical programs or initiatives. The auction included 5% credits for bidders who committed to entering community benefit agreements (CBAs). Under the lease stipulations, leaseholders are required to engage with local stakeholders that may be affected by their lease activities.

[1] https://doi.gov/pressreleases/biden-harris-administration-announces-winners-california-offshore-wind-energy-auction

[USA] SPP releases details of a proposed Western energy market

On November 30, 2022, Southwest Power Pool (SPP), which serves all or parts of 14 states in the central U.S., published details of its proposed Markets+ service.[1] SPP has been working with Western stakeholders since December 2021 to sketch out a day-ahead and real-time market. The proposed bundle of services would centralize day-ahead and real-time unit commitment and dispatch, utilize hurdle-free transmission service across its footprint, and allow for the reliable integration of renewable generation. This set of services would build on SPP’s Western Energy Imbalance Services market, which began operating in 2021. The market will provide a voluntary, incremental opportunity for utilities that see value in these services but are not ready to be a member in a regional transmission organization (RTO).

SPP’s plan includes a two-phase development process for the Western market. During phase one, potential participants and stakeholders will commit to the market. SPP plans to begin reaching out to interested parties in December 2022, and any parties interested in joining must sign up by April 2023. Upon approval from the Federal Energy Regulatory Commission (FERC), SPP will launch the second phase, during which SPP will acquire necessary software and hardware while participating entities fully commit to fund and are integrated into the system.

[1] https://www.spp.org/newsroom/press-releases/southwest-power-pool-releases-detailed-proposal-for-western-energy-market/

[USA] FERC approves PJM’s first-ready, first-served plan to address transmission queue

On November 29, 2022, the Federal Energy Regulatory Commission (FERC) approved PJM Interconnection’s plan to move to a “first-ready, first-served” interconnection review process that groups proposals and assigns upgrade costs in clusters.[1] According to PJM, the largest grid operator in the U.S., the plan is a response to the huge influx of interconnection requests over the last few years within its footprint. The grid operator had 2,700 projects in its interconnection queue, representing more than 250 GW. The proposed reforms aim to speed up the interconnection process by allowing projects that are more ready to be processed before other more speculative projects. Speculative projects that withdraw late in the review process can create delays, creating a need to redo the review process. PJM’s plan was widely supported in an 18-month stakeholder development process.

In its decision, FERC said the reforms should provide PJM the ability to reduce its interconnection backlog more quickly than possible under its current rules and will speed the review of new interconnection requests. Under the new plan, PJM won’t review new interconnection requests until early 2026 while it addresses its pending backlog of interconnection requests. The plan also includes a transition phase that will prioritize about half the pending projects, including a “fast-lane” process for projects to help clear the existing backlog. PJM expects to start the transition phase in early 2023.

[1] https://insidelines.pjm.com/ferc-approves-interconnection-process-reform-plan/

[USA] FERC orders reliability standards and registration requirements for IBRs to ensure grid reliability

On November 17, 2022, the Federal Energy Regulatory Commission (FERC) ordered mandatory reliability standards for inverter-based resources (IBRs) to help ensure wind, solar, and battery storage don’t threaten grid reliability.[1] FERC also directed the North American Reliability Electric Reliability Corporation (NERC) to develop a plan within 90 days to identify and register the owners and operators of IBRs connected to the bulk-power system that are not currently required to register with the organization.

NERC estimates that roughly 860 GW of wind, solar, and storage, which use inverters to convert direct current electricity to alternating current electricity, could come online over the next decade. Compared to synchronous generators like natural gas-fired power plants, IBRs must be programmed to ride through grid disturbances. Most FERC-approved Reliability Standards to date were developed with synchronous generation in mind. To address this, FERC’s proposed rule directs NERC to develop new or modified standards to eliminate four reliability gaps related to IBRs: data sharing, model validation, planning and operational studies, and performance requirements.

[1] https://www.ferc.gov/news-events/news/joint-presentation-items-e-1-registration-inverter-based-resources-and-e-2

[USA] DOE conditionally awards Diablo Canyon nuclear plant $1.1B to prevent shutdown

On November 21, 2022, the Department of Energy (DOE) announced the conditional selection of the 2,240 MW Diablo Canyon Power Plant, California’s only nuclear power plant, to receive the first round of funding from the Civil Nuclear Credit (CNC) program.[1] Funded by the Bipartisan Infrastructure Law (BIL), the $6 billion CNC program aims to support nuclear energy facilities at risk of retiring due to economic factors. Owned and operated by Pacific Gas and Electric Company (PG&E), Diablo Canyon Power Plant produces approximately 16 TWh of electricity annually, about 15% of California’s clean energy.  Units 1 and 2 of the power plant were scheduled to be decommissioned in 2024 and 2025, respectively, but the conditional award, valued at about $1.1 billion, could allow the units to remain open. According to the DOE, keeping the power plant open longer will save 1,500 jobs. Final terms are subject to negotiation and finalization by the DOE.

The first CNC award cycle prioritized reactors facing the most imminent threat of closure and limited applications to reactors that had already announced that they would close due to economic factors. The second award cycle will prioritize reactors that are projected to shut down due to economic factors within the next four years. The DOE expects to begin accepting applications for the second cycle of CNC funding in January 2023.

[1] https://www.energy.gov/articles/biden-harris-administration-announces-major-investment-preserve-americas-clean-nuclear

[USA] National laboratories launch consortium to accelerate the growth of energy storage for buildings

On November 15, 2022, the Department of Energy’s (DOE’s) National Renewable Energy Laboratory (NREL), Lawrence Berkeley National Laboratory (Berkeley Lab), and Oak Ridge National Laboratory (ORNL) announced that they will co-lead a new consortium, called Stor4Build, on energy storage for buildings that will accelerate the growth, optimization, and deployment of storage technologies.[1] Energy storage is necessary for the large-scale deployment of renewable electricity, electrification, and decarbonization. As much as 50% of electricity consumption in buildings in the U..S. currently goes toward meeting thermal loads. Thermal energy storage (TES) solutions could be a cost-effective energy storage alternative. TES is energy that can be stored in a material as a heat source or cold sink instead of as electrical energy and can be reserved for use at a different time. TES solutions can increase load flexibility, promote the use of renewable energy sources, and allow heat pumps to function more effectively and in more extreme climates.

The goal is for TES systems to reach installed capital costs of less than $15 per kWh of stored thermal energy. Stor4Build plans to develop metrics for identifying optimal performance targets for power and energy density, working temperature, materials and systems costs, round-trip efficiency, lifetime and durability, installation and operation, and maintenance costs. The consortium plans to complete a community-scale demonstration of technologies to showcase its initial achievements. The demonstration project will serve as a foundation for large-scale deployments of TES, along with electrochemical battery energy storage and systems capable of satisfying both the heating and cooling needs in buildings. Stor4Build will focus resources and efforts on developing zero-carbon, equitable, and affordable building TES technologies. The consortium will also release a road map report targeting technical and market gaps to be addressed to allow the market adoption and transformation needed for energy storage technologies in buildings.

[1] https://www.nrel.gov/news/press/2022/national-laboratories-launch-buildings-consortium-leveraging-benefits-thermal-electrochemical-energy-storage-americans.html

[USA] BOEM announces 8 new offshore wind areas

On November 16, 2022, the Bureau of Ocean Energy Management (BOEM) announced eight draft Wind Energy Areas (WEAs) off the Atlantic coast as part of the Biden administration’s goal of deploying 20 GW of offshore wind energy capacity by 2030.[1] The draft WEAs would cover about 1.7 million acres offshore Delaware, Maryland, Virginia, and North Carolina. BOEM identified these WEAs through a process that considers possible impacts on local resources and ocean users. The proposed areas represent a subset of the original 3.9 million acres of the Call Area that the Department of the Interior announced for public comment in April 2022. The agency is now seeking comments on potential conflicts with the draft areas, such as commercial fishing and marine habitat areas. Comments will be accepted through December 16, 2022. The draft WEAs may be reduced after the BOEM considers input from the Defense Department, the Coast Guard, NOAA Fisheries, and private ocean users like commercial fishers and environmental groups.

[1] https://www.boem.gov/newsroom/press-releases/boem-identifies-draft-wind-energy-areas-central-atlantic-public-review-and

[USA] NERC finds large portions of North America at risk for outages this winter

The North American Electric Reliability Corporation (NERC) released its Winter Reliability Assessment (WRA) for the upcoming winter period (December-February) on November 17, 2022.[1] The report reviews how prepared regions are to withstand extreme winter weather. The report noted that almost all areas are well prepared for normal conditions and highlighted the actions taken to strengthen parts of the nation's high voltage systems and gas fuel supplies since Winter Storm Uri in February 2021.

However, the WRA found that a large portion of North America, including the Electricity Reliability Council of Texas (ERCOT), the Midcontinent Independent System Operator (MISO), and ISO New England (ISO-NE), is at risk of insufficient electricity supplies during peak winter conditions. For example, MISO’s reserve margins have fallen more than 5% since last year, as 4.2 GW of nuclear and coal-fired generation have been retired. The WRA also found that a shortage of distribution transformers could slow restoration efforts during winter storms. As part of its recommendations, NERC suggested that power plant owners line up their fuel supplies for this winter to ensure that they have an adequate supply.

[1] https://www.nerc.com/pa/RAPA/ra/Reliability%20Assessments%20DL/NERC_WRA_2022.pdf

[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] EIA: U.S. power use to hit record in 2022

According to the Energy Information Administration’s (EIA) Short-Term Energy Outlook (STEO), released on November 8, 2022, U.S. power consumption will rise to a record high in 2022 due to increasing economic activity and hotter summer weather.[1] The EIA projects that power demand increase from 3,930 billion kWh in 2021 to 4,036 billion kWh in 2022 before decreasing to 3,989 billion kWh in 2023 as temperatures moderate. Compared to 2021, in 2022, the EIA projects that power sales will rise to 1,509 billion kWh for residential consumers, 1,371 billion kWh for commercial customers, and 1,014 billion kWh for the industrial sector. Historically, record highs for power sales were 1,477 billion kWh for residential consumers set in 2021, 1,382 billion kWh for commercial customers set in 2018, and 1,064 billion kWh for industrial customers set in 2000. The EIA attributed the power sale increase for commercial customers to more people returning to the office.

The EIA expects that renewable sources will provide 22% of U.S. electricity generation in 2022 and 24% in 2023, largely coming from solar and wind capacity additions. Generation from natural gas will decline from 38% in 2022 to 36% in 2023.Coal's share will drop from 20% in 2022 and 19% in 2023.

[1] https://www.eia.gov/outlooks/steo/

[USA] Dominion and stakeholders reach agreement on potential cost overruns for offshore wind project

On October 28, 2022, Dominion Energy Virginia, the office of Virginia Attorney General Jason Miyares (R), Walmart, Sierra Club, and Appalachian Voices reached an agreement on how to handle potential cost overruns or overproduction for the utility’s 2.6 GW Coastal Virginia Offshore Wind (CVOW) project.[1] The CVOW project, located 27 miles off the coast of Virginia Beach, is expected to be completed in late 2026 and cost $9.6 billion. In the Virginia State Corporation Commission’s (SCC) August 2022 Final Order approving the development of the project, regulators included a performance guarantee, which would require the utility to pay for any power it buys elsewhere if the project generates less than the expected 42% average annual capacity factor. According to Dominion, the SCC’s mandate would jeopardize the project’s viability.

If approved by the SCC, the settlement agreement would replace the performance guarantee with a cost-sharing approach for unforeseen costs that exceed the project’s budget. Under the agreement, the utility’s shareholders would pay 50% of any costs in the $10.3 billion to $11.3 billion range and would be responsible for 100% of any prudently incurred costs from $11.3 billion to $13.7 billion. There is no voluntary cost-sharing agreement for any costs that exceed $13.7 billion. Dominion would not be required to guarantee future energy production levels or factors beyond its control as outlined in the SCC’s August order. Instead, the utility would explain the factors contributing to any shortfall in expected energy production in a future SCC proceeding.

[1] https://news.dominionenergy.com/2022-10-28-Dominion-Energy-Virginia,-Office-of-Attorney-General,-Walmart,-Sierra-Club-and-Appalachian-Voices-File-Settlement-Agreement-for-Coastal-Virginia-Offshore-Wind

[USA] NERC publishes strategy for adding DER to the grid

On November 1, 2022, the North American Electric Reliability Corp (NERC) published a new report titled Distributed Energy Resource Strategy, which identifies approaches, concepts, and regulatory steps necessary to ensure the reliable operation of the bulk power system into the future.[1] Distributed energy resource (DER) levels are growing across North America, altering how the bulk power system is planned, designed, and operated. According to NERC, distributed solar capacity will grow by more than 30,000 MW between 2022 and 2031. While DERs have multiple benefits, they also create challenges to grid reliability, resilience, and flexibility.

The new report serves as a roadmap, identifying milestones ahead as NERC develops its approach to growing volumes of DER connected to the bulk power system (BPS). NERC’s strategy document creates a framework to help the Electric Reliability Organization (ERO) in the process of managing risk. It includes six specific steps: risk identification; risk prioritization; mitigation identification and evaluation; deployment; measurement of success; and monitoring. The core tenets of the strategy are DER modeling capabilities, studies incorporating DERs, operational impacts of DERs, and regulatory considerations related to DERs.

[1] https://www.nerc.com/news/Pages/NERC-Publishes-Distributed-Energy-Resource-Strategy-Document.aspx

[USA] PPL and Elia Group announce partnership to propose solutions to integrate offshore wind into New England grid

According to an October 24, 2022, press release, PPL Corp. and Elia Group have agreed to propose transmission solutions to efficiently integrate future offshore wind capacity into New England’s onshore grid.[1]  The two companies signed a memorandum of understanding (MOU) to work together to develop, build, and operate transmission assets. The partnership combines PPL’s experience in building and operating large-scale onshore transmission through its PPL Translink subsidiary with Elia Group’s track record in building and operating offshore transmission, including high-voltage direct current (HVDC) networks, through its WindGrid subsidiary. Later in October 2022, PPL and Windgrid plan to jointly respond to a September 2022 request for information (RFI) issued by five New England states[2], which seeks input on the transmission system changes and upgrades needed to integrate future renewable energy resources into their grids.

Through its subsidiaries in Belgium and Germany, Elia Group has connected 14 wind farms (3,500 MW by the end of 2022) to its onshore grid. It is also currently operating three HVDC subsea cable interconnectors. In addition, the company is developing the world’s first energy islands that will link wind farms and HVDC interconnectors to multiple European countries. Overall, the company’s transmission system has a reliability rate of 99.99%. For its part, PPL has invested more than $9 billion in transmission in the United States over the past decade.

[1] https://pplweb.mediaroom.com/2022-10-24-PPL-and-Elia-Group-subsidiaries-announce-agreement-to-develop-and-propose-innovative-transmission-solutions-to-connect-future-offshore-wind-capacity-to-onshore-grid-in-New-England

[2] Massachusetts, Connecticut, Rhode Island, Maine, and New Hampshire

[USA] FERC approves MISO request to keep Ameren Missouri’s Rush Island coal plant open

On October 24, 2022, the Federal Energy Regulatory Commission (FERC) approved a system support resource (SSR) agreement for Ameren Missouri’s 1,195-MW Rush Island power plant, stating that the coal plant is necessary to maintain grid reliability.[1] The SSR agreement can be renewed annually, and the contract will be paid for by load-serving entities that benefit from keeping Rush Island open. In a separate decision, FERC said the proposed monthly payments Ameren Missouri would receive for running the plant need further review through a hearing process.[2] FERC also rejected Ameren Missouri’s request for an additional 0.5% return on equity (ROE) for cost recovery for keeping the plant open longer than expected, stating that the ROE adder only applies to transmission facilities.

The Rush Island Power plant was originally set to retire on September 1, 2022. Instead, Ameren Missouri now expects to keep it running until mid-2025 to support grid reliability. According to the Midcontinent Independent System Operator (MISO), retiring the coal plant could cause severe voltage stability problems, leading to cascading power outages. In MISO’s application for an SSR agreement, the grid operator identified four transmission upgrades that are needed to maintain voltage on the grid, with the last one expected to be online by June 2025. Potential renewable energy additions or demand-response programs wouldn’t be enough.

[1] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20221024-3065&optimized=false

[2] http://elibrary.ferc.gov/eLibrary/filelist?accession_number=20221024-3066&optimized=false

[USA] EPA selects winners for nearly $1 billion in funds for electric school buses

On October 26, 2022, the Biden administration announced the Fiscal Year 2022 recipients of the Environmental Protection Agency’s (EPA) Clean School Bus Program rebate competition.[1] The EPA selected 389 school districts spanning 50 states, Washington, D.C., and several Tribes and territories. 99% of the projects selected by the EPA are school districts identified as priority areas serving low-income, rural, and, or Tribal students. The agency awarded these recipients $913 million to support the purchase of 2,463 buses, 95% of which will be electric.

In May 2022, the agency announced the availability of $500 million for its Clean School Bus Program. However, given the overwhelming demand from school districts, the EPA nearly doubled the amount of funding that will be awarded to $965 million. More applications for FY2022 are under review, and the agency plans to select more to reach the full $965 million. The awards are the first $1 billion of a five-year, $5 billion program created by Bipartisan Infrastructure Law (BIL). The EPA plans to launch the next rounds of program funding in the coming months.

[1] https://www.epa.gov/newsreleases/biden-harris-administration-announces-nearly-1-billion-epas-clean-school-bus-program

[USA] Interior announces first offshore wind lease sale on the west coast

On October 18, 2022, the Department of the Interior announced that the Bureau of Ocean Energy Management (BOEM) will hold its first offshore wind energy lease sale on the west coast.[1] The lease sale will take place on December 6, 2022, for areas on the Outer Continental Shelf (OCS) off central and northern California. It will be the first U.S. sale to support potential commercial-scale floating offshore wind energy development. The press release states that the sale will be critical for achieving the Biden administration’s goal of deploying 30 GW of offshore wind by 2030 and 15 GW of floating offshore wind by 2035. To date, BOEM has held ten competitive lease sales and issued 27 active commercial wind leases in the Atlantic Ocean.

BOEM will offer five OCS lease areas, which total approximately 373,268 acres and have the potential to produce over 4.5 GW of offshore wind energy. The sale will include three lease areas off central California and two lease areas off northern California. It also includes several lease stipulations designed to promote the development of a robust domestic supply chain, advance flexibility in transmission planning, and create good-paying union jobs. Stipulations include bidding credits for bidders who enter into community benefit agreements or invest in workforce training or supply chain development, requirements for winning bidders to make efforts to enter into project labor agreements, and requirements for engagement with tribes, underserved communities, ocean users, and agencies.

[1] https://www.doi.gov/pressreleases/biden-harris-administration-announces-first-ever-offshore-wind-lease-sale-pacific

[USA] NYSEDRA and National Grid announce the selection of 21 community solar projects

On October 17, 2022, the New York Energy Research and Development Authority (NYSERDA), in partnership with National Grid, announced that 21 community solar projects, totaling more than 120 MW, have been selected as the first round of the Expanded Solar For All program.[1] The program, which was approved by the state’s Public Service Commission (PSC) in January 2022, will serve nearly 175,000 income-eligible customers in National Grid’s upstate service areas once fully implemented. The announcement builds on NYSERDA’s NY-Sun program, the state’s $1.8 billion initiative to advance the scale-up of solar energy while reducing costs and making solar more accessible. According to the press release, the announcement also supports New York’s Climate Leadership and Community Protection Act (Climate Act) mandate that at least 35% of the benefits of clean energy investments be directed to disadvantaged communities. The installed distributed solar projects combined with projects under development go beyond the current Climate Act goal to install 6 GW of distributed solar by 2025.

NYSERDA expects to select an additional round of projects in 2023. As part of the program’s first phase, National Grid will provide up to $240 million in bill credits during the 25-year lifetime of the program. The second phase, subject to approval from the PSC, would double the total anticipated bill credits to up to $480 million over the program’s lifetime.

[1] https://www.nyserda.ny.gov/About/Newsroom/2022-Announcements/2022-10-17-NYSERDA-and-National-Grid-Announce-Round-1-Results

[USA] Georgia Power begins fuel load for Vogtle Unit 3

On October 14, 2022, Georgia Power began loading nuclear fuel into its Vogtle Unit 3 reactor core.[1] The announcement marks a major milestone toward the startup and commercial operation of the first new nuclear units to be built in the U.S. in more than 30 years. The unit is one of two—Vogtle Unit 3 and Unit 4—being built at the Vogtle plant near Waynesboro, Georgia. The start of Unit 3 fuel load comes after the Nuclear Regulatory Commission (NRC) signed off on a 103(g) finding in August 2022, certifying the unit was constructed and would operate according to Combined License and NRC regulations.

Nuclear technicians and operators are scheduled to transfer 157 fuel assemblies into the Unit 3 reactor core. Once this is completed, startup testing will begin. This will demonstrate the capabilities of the primary coolant and steam supply systems at design temperature and pressure with fuel inside the reactor. Before full operation, the plant will also be taken from cold shutdown to initial criticality. Operators will also synchronize the unit to the electric grid, and power will be gradually raised to full capacity. Unit 3 is expected to enter service in the first quarter of 2023. Southern Nuclear will operate the new unit on behalf of the co-owners: Georgia Power, Oglethorpe Power, MEAG Power, and Dalton Utilities.

[1] https://www.georgiapower.com/company/news-center/press-releases.html

[USA] NextEra and PGE open first wind-solar-battery project in the U.S.

On September 28, 2022, NextEra Energy Resources and Portland General Electric (PGE) announced that they have opened the first utility-scale energy facilities in North America to co-locate wind, solar, and battery storage.[1] Wheatridge Renewable Energy Facilities, located near Lexington, Oregon, includes 300 MW of wind, 50 MW of solar, and 30 MW of battery storage. Wheatridge is capable of powering the equivalent of 100,000 homes. According to the press release, the construction of the facilities created 300 jobs, and there are now about ten full-time employees operating the facilities. Wheatridge will play a key role in helping PGE meet Oregon’s target of reducing greenhouse gas (GHG) emissions from power served to retail customers by at least 80% by 2030, 90% by 2035, and 100% by 2040.

Early development of the project’s wind farm was done by Swaggart Wind Power, LLC. NextEra Energy Resources purchased the development rights and, together with PGE, expanded the project’s scope to include solar generation and battery storage. Power from the facilities will reach PGE customers via a new transmission line constructed by Umatilla Electric Cooperative that connects the facilities with the Bonneville Power Administration’s regional high-voltage grid. PGE owns 100 MW of the wind project. A subsidiary of NextEra Energy Resources owns the rest of Wheatridge and built and operates the combined facility. It will sell its output to PGE under 30- and 20-year power purchase agreements.

[1] https://newsroom.nexteraenergy.com/news-releases?item=123874

[USA] FERC approves $500K fine for ISO-NE over allegations it paid $100 million to nonoperating gas plant

According to an agreement approved on September 30, 2022, by the Federal Energy Regulatory Commission (FERC), ISO New England (ISO-NE) will pay a $500,000 fine to settle allegations that it violated market rules by allowing a 674 MW natural gas-fired power plant to collect money from consumers before the facility had produced any power.[1] The settlement between ISO-NE and FERC’s Office of Enforcement was approved by FERC commissioners in a 4-0 decision. The investigation, which took place over the last five years, found that ISO-NE issued over $104 million in payments to Salem Harbor Power Development LP, a subsidiary of Footprint, in 2017 and 2018 despite knowing that the company’s gas facility was not going to meet its expected commercial operating date. The Salem Harbor Generating Station was initially expected to enter commercial operation on May 31, 2017. However, it did not reach commercial operations until June 2018. The grid operator also withheld information about the facility from its independent market monitor.

In the agreement, ISO-NE agreed to the facts presented by FERC staff but “neither admits nor denies” that any violations occurred. The fine will be paid through a reduction in compensation for ISO-NE’s 10-person senior leadership team. The grid operator also agreed to invest up to $350,000 to bolster its compliance program to prevent future incidents.

[1] https://elibrary.ferc.gov/eLibrary/filelist?accession_number=20220930-3077&optimized=false