What's Happening in Energy highlights the most interesting findings from public utility commission filings.
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What's Happening in Energy — Aug 8
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At least one offshore wind project in the U.S. is still moving forward. In Virginia, Dominion has submitted its quarterly progress report on the Coastal Virginia Offshore Wind (CVOW) project to the State Corporation Commission. The project is on track to commission by the end of next year. That’s noteworthy enough on its own.
Also worth noting: tariffs on Mexico, Canada, the EU, and “other applicable countries” have already increased project costs by $70 million, raising the total to $10.9 billion. Further increases in cost may occur through the end of 2026, depending on different scenarios. At the highest level of tariff exposure, the estimated tariffs by the end of 2026 could amount to $640 million. Since the company splits costs over $10.3 billion equally with consumers, this would result in an increase of $0.15 in the monthly average lifetime bill of a typical residential ratepayer compared to the May 2025 update. Table below:
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Also in Virginia, a water and wastewater rate increase request. According to Aqua Virginia’s President, John Aulbach, following the 2023 base rate application, “significant infrastructure improvements…as well as increases in operation expenses and other factors, Aqua Virginia is not realizing the return the Commission authorized in the last proceeding.” The company is seeking an increase of $5,318,190 and $2,608,423 in water and wastewater revenues, respectively. In total, this request represents an increase of 27.48%.
It’s important to note that the rate increases are not uniform across all tiers. The lowest tier sewer customers will experience a reduction in their bills, while the highest proportional rate increase applies to those consuming up to 3,000 gallons a month.
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In Georgia, more details have emerged regarding state-authorized power procurements for Georgia Power as part of its 2029-31 All-Source Capacity IRP. Currently, there are plans for 8,500 megawatts of new capacity.
Regular readers will be shocked to learn that “the Load Forecast is largely driven by the anticipated growth from only one customer class, for which there is a lack of historic information to inform many of the assumptions used in the forecast.”
Yes, it’s data centers. According to Georgia Power’s Q2 2024 Large Load Economic Development Report, data centers represent 83% of announced load through 2037.
Here is Georgia Power’s updated peak load forecast.
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In Colorado, Xcel Energy’s subsidiary, the Public Service Company of Colorado, notified the Colorado PUC that it would activate backup bids due to unsuccessful negotiations for power purchase agreements with independent power producers. The notification is necessary because one of the backup projects is Company-owned. The Company would replace the original three PPA projects, which include a cumulative 560 MW of solar and 250 MW of battery storage, with one 400 MW solar PPA and a company-owned 250 MW/200 MW solar/battery hybrid project.
Public Service explained that it chose these backups to align with the original failed bids by selecting “like-for-like” projects, including solar and storage. The decision was influenced by developer indication that they could not comply with the allowed cost increases under the utility’s Clean Energy Plan.
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In Oregon, the Public Utility Commission is considering expanding the "carve-out capacity" of the Community Solar Program by 50 MW from 160 MW to reach 210 MW. This additional carve-out capacity would require an investment of $93 million and would enable more non-profits, underserved communities, low-income customers, tribes, and public entities to access the program. Commission staff presented estimates regarding the potential impact on ratepayers resulting from this expansion.
Ratepayer impact before the Expansion:
Ratepayer impact after the expansion (note the different Y axis):
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In SPP, the system operator presented the results of its “Future Energy and Resource Needs” (FERNS) Study. The results indicate a future with high renewables and storage, supplemented by thermal generation during the hours of highest reliability risk.
The study outlines various Scenarios, ranging from A1 to B3, which feature different levels of electrification and percentages of carbon-free resources in total generation. The model predicts that there will be enough land for 60 to 180 GW of additional wind and solar, along with 4 to 12 GW of new regional transmission capacity. It also notes that resource adequacy is expected to shift to the winter months. There is really no scenario without a very high percentage of carbon-free resources.
The projected demand for interzonal export/import capacity varies considerably depending on the scenario. In A1 and A2, less interzonal capacity is required compared to B1 through B3, primarily due to local dispatchable thermal generation. However, under the high carbon free scenarios, SPP will become an increasingly significant net exporter of power.
Narrative, modeling assumptions, and lots more charts in the presentation linked below.
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In South Carolina, Dominion Energy submitted its semi-annual interconnection queue report to the Public Service Commission. The list includes Withdrawn, Completed, and In Progress projects with Queue Numbers issued since 10/28/2013. Of the 750 projects included, 742, or 98.9% are either solar, solar + batteries, or standalone batteries.
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The Southwest Power Pool filed its quarterly State of the Market report in Arkansas.
Off-Peak versus On-Peak prices reveal an interesting story: Prices remain heightened between the two periods in the southeastern zones of SPP (NE TX, SW AK, and NW LA). Additionally, price spikes occur in the southwestern (SW NM and NW TX) and the northern segments of SPP (southeastern MN) during Off-Peak periods.
Make-whole payments – payments made by the market operator to compensate generators when settled prices do not fully cover costs – have steadily increased each spring over the last three years.
Outages and derates have consistently increased over the past three springs. The majority of low GWh comes from single-cycle gas and coal.
Additionally, ConEd added that the rise in applications for large-scale energy storage is making interconnection studies more technically challenging. To address this issue, the utility suggested using AI to streamline reviews:
“We are currently exploring AI-assisted tools and functionality that will empower us to identify and resolve issues even earlier, reducing delays and improving transparency.”
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In Texas, the PUCT proposed a new regulation to implement Texas House Bill 1500. This regulation would enforce new “firming reliability requirements” for energy resources (“other than a battery energy storage resource, settlement only generator, or self generator”) that sign a new or amended interconnection agreement after January 1, 2027.
The PUCT proposal noted that a public hearing will be scheduled if requested and welcomed responses on two questions related to implementation:
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And a final bonus for those who enjoy reading….a lot. The Midcontinent Independent System Operator filed a document of common tariff provisions. It is 8,161 pages long. The glossary alone is 198 pages.