New England’s Power System: A Collective State Update
Environmental Business Council NH: NH’s Evolving Energy Future
October 2, 2019
Ben D’Antonio, Counsel & Analyst
New England States Committee on Electricity
NESCOE is New England’s Regional State Committee, governed by a Board of Managers appointed by each of the New England Governors to represent the collective views of the six New England states on regional electricity matters
Focus: Resource Adequacy, System Planning & Expansion
Resources: 5 full-time staff with diverse disciplines & experience. Consultants on markets, transmission & for independent studies
More information: including filings & comments at
nescoe.com
Twitter: @NESCOEStates
Overview
- State Laws and Mechanisms
- Analysis of Renewable and Clean Energy
- Resource Adequacy and State Laws
Regional Focus on Energy Security
[see pdf for graphic]
State Law Basics
- Each New England State adopts laws and regulations reflective of the policies each state identifies as appropriate for consumers in that state as well as the mechanisms through which to implement those policies
- New England States with policies that prioritize clean energy resources have committed to explore a mechanism to value the attributes of those resources, while ensuring consumers in any one state do not fund the public policy requirements mandated by another state’s law
–Most recent example: https://www.coneg.org/wp-content/uploads/2019/03/New-England-Governors-Statement-of-Cooperation-on-Regional-Energy-3-15-19.pdf
State Laws and Mechanisms
- State Laws
–Energy Efficiency
–Renewable Resources
–Carbon Dioxide Emissions Reduction
- Programs and Mechanisms to Support State Laws
–System Benefits Charge and Other Electric Bill Surcharges
–Renewable Portfolio Standard
–Net Metering
–Long-Term Contracting
–Regional Greenhouse Gas Initiative (RGGI)
–Other Initiatives
Energy Efficiency – the “first” fuel
Installed measures (e.g., products, equipment, systems, services, practices and/or strategies) on end-use customer facilities that reduce the total amount of electrical energy needed, while delivering a comparable or improved level of end-use service. Such measures include, but are not limited to, the installation of more energy efficient lighting, motors, refrigeration, HVAC equipment and control systems, envelope measures, operations and maintenance procedures, and industrial process equipment. – ISO-NE Tariff §I.2.2.
Renewable Resources
| Common Technologies | State | State-Specific Additional Technologies |
| •Wind •Solar Photovoltaic (PV) •Small Hydro •Landfill Gas •Biomass (subject to eligibility requirements) •Anaerobic Digestion •Geothermal •Solar Thermal •Ocean Thermal •Wave •Tidal •Fuel Cells using Renewable Fuels | Maine | Municipal Solid Waste (“MSW”) with recycling, combined heat and power (“CHP”), Thermal |
| Massachusetts | Sustainable biomass, certain new or incremental hydroelectric, MSW with recycling | |
| Connecticut | Sustainable biomass, MSW, fuel cells using non-renewable energy, CHP, new hydro, large-scale hydro (only if shortfall in Class I resources, capped at 5% in 2020), low-emission advanced renewable energy conversion technologies | |
| Rhode Island | Sustainable biomass | |
| Vermont | Large Hydro, small distributed generation | |
| New Hampshire | “Useful thermal energy”, CHP, new or co-fired biomass, biodiesel |
Carbon Dioxide Emissions Sources
[see pdf for graphic]
Carbon Dioxide Emissions Reduction Targets
| Power Sector | Economy-Wide | Legal Authorities | |
| Connecticut | Regional Greenhouse Gas Initiative (RGGI): 2.5% per year reduction Approximately 750 thousand tons per year until from 2021-2030 | 10% below 1990 levels by 2020 45% below 2001 levels by 2030 80% below 2001 levels by 2050 | Conn. Gen. Stat. §§ 22a-200a and 22a-200c |
| Maine | 10% below 1990 levels by 2020 80% below 1990 levels by 2050 | 38 Me. Rev. Stat. ch. 3-A and 3-B | |
| Massachusetts | 25% below 1990 levels by 2020 80% below 1990 levels by 2050 | Mass. Gen. Laws ch. 21A § 22 and ch. 21N § 3 | |
| New Hampshire | n/a | N.H. Rev. Stat. Ann. § 125:O | |
| Rhode Island | 10% below 1990 levels by 2020 45% below 1990 levels by 2035 80% below 1990 levels by 2050 | R.I. Gen. Laws §§ 42-6.2-2, 42-17.12(19), 23-23, and 23-82 | |
| Vermont | 40% below 1990 levels by 2030 80-95% below 1990 levels by 2050 | 30 V.S.A. § 255 2016 Comprehensive Energy Plan |
Programs and Mechanisms to Support RESOURCES REQUIRED BY STATE LAWS
- The following section provides information on a range of programs and mechanisms used by New England states to support certain types of electric generation resources that are able to satisfy public policies reflected in statutes and regulations.
System Benefit Charge (SBC) and Other Electric Bill Surcharges
[see pdf for graphic]
Renewable Portfolio Standard
[see pdf for graphic]
Renewable Portfolio Standard
[see pdf for graphic]
Public Policy Resource Outlook
[see pdf for graphic]
Behind-the-Meter Solar
[see pdf for graphic]
Long-Term Contracts
- Clean Energy Request for Proposals (RFP)
–Entities from three of the New England States – Connecticut, Massachusetts, and Rhode Island – jointly issued an RFP from private developers of clean energy and transmission. The three states selected projects that were, collectively, about 460 MW. None of the projects included transmission.
- Massachusetts Long-Term Contracts for Clean Energy
–Massachusetts Electric Distribution Companies (EDCs) entered into long-term contracts with H.Q. Energy Services Inc. and related transmission agreements with Central Maine Power Company (CMP) in connection with the New England Clean Energy Connect 100% Hydro project. The Massachusetts Department of Public Utilities (DPU) approved the long-term contracts with Hydro Quebec Energy Services, Inc. FERC approved the related transmission agreements with CMP. The project is subject to further federal review and approval.
- Connecticut, Massachusetts, and Rhode Island Long-Term Contracts for Off-shore Wind
–Massachusetts EDCs entered into long-term contracts with Vineyard Wind LLC for an 800 megawatt offshore wind generation project. In 2019, the DPU approved the Vineyard Wind contracts and subsequently approved a request by the EDCs to issue an RFP soliciting additional offshore wind generation.
–The Rhode Island Public Utilities Commission has approved a long-term contract for the Revolution Wind 400 megawatt offshore wind generation project.
–In 2018, the CT Public Utilities Regulatory Authority approved long-term contracts for the 200 megawatt Revolution Wind project.
- Connecticut Zero Carbon Solicitation and Procurement
–Connecticut selected two nuclear power bids from Millstone Power Station and Seabrook Nuclear Power Plant, along with nine solar project bids totaling 165 MW – two of which are paired with energy storage – and one 104 MW offshore wind project in a solicitation for zero-carbon electricity-generating resources.
**Note: Several states have already procured clean energy resources via long term contract
under these and other existing state energy procurement authorities**
Regional Greenhouse Gas Initiative (RGGI)
[see pdf for graphic]
Other Initiatives
- Green Banks
–Connecticut Green Bank
–Rhode Island Infrastructure Bank
–Vermont Economic Development Authority
- Grid Modernization
–Distribution System Planning
- Storage
–Massachusetts Energy Storage Initiative
- Electric Vehicles
–New England Governors – Eastern Canadian Premiers’ 2014 Resolution:
five percent (5%) fleet market share penetration of alternative fuel vehicles by 2020
–Four New England States joined the 2013 State Zero-Emissions Vehicle Program Memorandum of Understanding:
- Connecticut: 175,000 (est.) by 2025
- Massachusetts: 300,000 by 2025
- Rhode Island: 43,000 by 2025
- Vermont: 18,000 by 2025
Renewable and Clean Energy Analysis
[see pdf for graphic]
Resource Adequacy and State Policies
- States’ long-term contracts with resources capable of supporting state policies may not be counted toward
ISO-NE’s FCM procurement target - Renewable Technology Resource (RTR) Exemption Phasing-out
- ISO-NE’s “CASPR” reforms allow new resources supported by long-term contracts to buy-out retiring resources’ capacity supply obligations
[see pdf for graphic]