Utilities

According to research from Bloomberg New Energy Finance, worldwide investment in clean energy dropped to its lowest level in four years during the first three months of this year.  Total investment, which includes renewables, energy efficiency, and energy-smart technologies, was down 38% from the last quarter of 2012 and 22% from the same period (first quarter) of 2012.  The causes identified by BNEF include policy uncertainty in major markets like the U.S. and Germany and the sharp decrease in prices of solar PV panels which translates to lower investment, in dollar terms, for a project of equal capacity. read more

The Las Vegas Sun reported yesterday on NV Energy's proposal to begin decommissioning its existing coal-fired power plants and to accelerate its investments in renewable energy and natural gas generating capacity.  Interestingly, NV Energy is seeking to implement the plan legislatively, as opposed to having it approved by Nevada's Public Utilities Commission (PUC).  This is not surprising considering the difficulty the utility had in getting three renewable energy PPAs approved in 2011 (as we blogged about here).  According to the Sun article, the PUC would not be able to reject the plan if approved by the legislature. read more

Duke Energy Renewables and SOLON Corp. announced last week the completion of the 10MW Black Mountain Solar Project near Kingman.  Duke purchased the project from SOLON in May 2012.  SOLON constructed the project and will be responsible for operation and maintenance of the solar system.  Electricity generated by the project will be purchased by UniSource Energy Services, a sister company to Tucson Electric Power (TEP), under a twenty-year power purchase agreement.  The Black Mountain Solar Project is Duke's fifth photovoltaic (PV) plant in Arizona, along with the 5MW Ajo Solar Farm in southern Arizona, the 15MW Bagdad Solar Farm near Prescott, the 1.5MW Prescott Valley Solar Project, and the 6MW Gato Montes Solar Project in Tucson. read more

A book by Oxford Economics Professor, Dieter Helm, is highly critical of the methods being used by European countries to reduce their carbon emissions in an attempt to mitigate the impacts of global climate change.  The Carbon Crunch: How We're Getting Climate Change Wrong—and How to Fix It, argues that current regulatory efforts to cut carbon emissions have focused on expensive and ineffective methods, resulting in limited progress and widespread scepticism of the movement.  (This blog is based primarily on a review of Mr. Helm's book by The Economist, and not a full reading of the book which is not yet available in the U.S.) read more

Last Friday, the Ninth Circuit dismissed the last climate change lawsuit still pending in the federal courts to the best of my knowledge.  Native Village of Kivalina v. ExxonMobil Corp. was a lawsuit by a small Alaskan village against 22 oil, energy, and utility companies, alleging that their greenhouse gas (GHG) emissions caused global warming which prevented historic levels of sea ice from forming around the village.  The lack of sea ice exposed the village to massive erosion from the ocean's waves and the possibility of devastating storms in the future.  The villagers sought damage payments from the defendants for the harm they suffered from global warming; presumably, at a minimum, the costs of relocating the village, estimated by the Army Corps of Engineers at $95 million. read more

The U.S. Department of Energy (DOE) announced yesterday that it will invest $5 million over the next five years on research to improve the molten salt-based heat transfer fluids used in concentrating solar projects (CSP), such as Abengoa's Solana Project near Gila Bend.  The project will be led by the University of Arizona but will also include researchers from Arizona State University and the Georgia Institute of Technology.  The grant is part of DOE's Sunshot Initiative, which is attempting to reduce the cost of solar energy through providing funding for research on high risk, high payoff ideas. read more

The Obama Administration announced last week "that seven nationally and regionally significant solar and wind energy projects will be expedited" through the applicable federal permitting and review processes.  The two Arizona projects are: (1) BP Wind's Mohave County Wind Farm, between Kingman and Las Vegas; and (2) SolarReserve's Quartzsite Solar Energy Project, near Quartzsite.  The announcement also includes two solar PV projects in California, two solar projects in Nevada, and one wind project in Wyoming for a total of nearly 5,000 MWs of renewable energy.  The administration did not provide any details on how the "fast track" program will differ from standard procedure.  Both of the Arizona projects had already been identified by the BLM as "Priority Projects" for 2012. read more

New Mexico PRC Commissioner Ben Hall has been elected President of the Western Conference of Public Service Commissioners, the regional association of the National Association of Regulatory Utility Commissioners (NARUC), for the next year (beginning October 1st).  The Western Regional NARUC Conference will be held June 2-5, 2013 at the Eldorado Hotel in Santa Fe.  This will be the first time in 13 years that the conference will be held in New Mexico. read more

The Arizona Legislature adjourned last week without a Senate floor vote on Rep. Lesko's (R-Glendale) controversial House Bill 2789.  This bill, as amended in the Senate, would have prohibited the State from increasing its existing renewable energy standard, which was adopted by the Arizona Corporation Commission (ACC) in 2006.  HB 2789 was actively opposed by Arizona's renewable energy industry and was unconstitutional in the opinions of both the ACC's legal division and Legislative Council. read more

Rep. Lesko's (R-Glendale) energy bill -- HB 2789 -- was passed yesterday by the Government Reform Committee of the Arizona Senate.  The bill was subject to a "strike everything" amendment that replaced the version of the bill that passed the House with the following single sentence: "A Public Service Corporation shall not be required to meet a renewable energy standard that is greater than the standards required in any rules in effect on January 1, 2012."  The change was presumably made to address concerns about the bill's constitutionality after both the ACC's top attorney and the legislature's own legal counsel concluded that the House version was unconstitutional.  However, this sentence seems to have the same constitutional problems as the full version. read more

The Arizona House of Representatives voted today to pass Rep. Lesko's HB 2789.  This is the bill that would require the Arizona Corporation Commission (ACC) to get legislative approval of "all rules or amendments to existing rules ... concerning public service corporations that are policy decisions, including rules mandating the use of specific sources of energy or imposing or increasing energy efficiency standards or renewable energy standards."  Both the ACC's legal counsel and the Legislative Council have concluded that the bill is unconstitutional (see our prior blogs here and here). read more

Earlier today, the Rules Committee of the Arizona House of Representatives passed Rep. Lesko's (R-Glendale) HB 2789 despite an opinion issued by the Arizona Legislative Council on Monday concluding that the bill is unconstitutional.   The Council's reasoning mirrored a similar analysis issued last week by the Corporation Commission's counsel, as we blogged about here.  In short, the Council concluded that the bill would violate the separation of powers clause of the state constitution and infringe on the Corporation Commission's constitutionally granted powers. read more

In a letter to the Commissioners last week, Janice Alward, Chief Counsel for the Arizona Corporation Commission (ACC), analyzed a bill currently pending in the Arizona Legislature and concluded that it is unconstitutional.  HB 2789 would require the ACC to get legislative approval of "all rules or amendments to existing rules ... concerning public service corporations that are policy decisions, including rules mandating the use of specific sources of energy or imposing or increasing energy efficiency standards or renewable energy standards."  Alward concludes that the bill "is unconstitutional insofar as it requires the Commission to submit rules related to ratemaking to the Legislature and the Governor for approval."  The primary basis for her conclusion is that the Arizona Constitution gives the ACC exclusive authority over ratemaking and the courts have already determined that the Commission's Renewable Energy Standard & Tariff (REST Rules) -- a clear target of the bill -- falls within that exclusive authority. read more

Yesterday, the New Mexico legislature completed its 30 day session and approved three changes to the New Mexico Public Regulation Commission (PRC).  The changes were the result of attempts to reform the Agency following several years of scandal, including a felony conviction and prison time for one recent Commissioner.  One change moves the State Corporation Commission to the Secretary of State's Office.  It has been under the jurisdiction of the PRC following the 1999/2000 change in New Mexico's Constitution which had merged the Public Utility Commission with the State Corporation Commission to form the PRC.  The second change establishes minimum qualifications for PRC Commissioners.  Presently the requirement is to be at least 18 years of age, a resident of NM for at least one year, and not to have been convicted of a felony.  HJR 11 provides that "the legislature shall provide, by law, increased educational and professional qualifications for commissioners and continuing education requirements for commissioners."  The third change would remove the insurance division from the PRC oversight and would establish a separate insurance agency. read more

On Wednesday evening, the NM Senate, by a vote of 40-0 passed House Joint Resolution 16.  HJR 16 would place the State Corporation Division under the Secretary of State's office and take it away from the Public Regulation Commission -- if approved by NM voters in November.  Because the proposed change would alter the New Mexico Constitution, the Governor does not have to approve the HJR.  However, it would have to be approved by the voters in the Fall election.  The New Mexico House had previously unanimously passed HJR 16.  Two other bills that would affect the PRC qualifications and organization are proceeding through the Senate, but it is not clear if they will be approved prior to the end of the 30 day session at noon on February 16, 2012. read more

State Senator Tim Keller has introduced proposed legislation to revamp the way Commissioners at the New Mexico Public Regulation Commission are selected.  Following a series of scandals, including felony convictions of two of its recent Commissioners, Senate Joint Resolution 2 (SJR 2) would have the Governor appoint the members for 5-year staggered terms.  The legislature would have a nominating committee evaluate applications of qualified individuals to serve on the Commission.  That committee would make recommendations to the Governor.  The proposed resolution would also set minimum education requirements -- requiring either a baccalaureate or more advanced degree from a regionally accredited post-secondary educational institution or at least five years of relevant professional experience as determined by law. read more

Last week, North Carolina-based Duke Energy announced the purchase of two photovoltaic (PV) solar projects in Arizona with a combined generating capacity of 20 megawatts (MWs).  The two projects are the 5 MW Ajo Solar Project in southern Arizona and the 15 MW Bagdad Solar Project near Prescott, Arizona.  Both projects were developed by Recurrent Energy, which has been owned by Sharp Corporation for just over one year now.  The Ajo facility began commercial operation in September of this year and the larger Bagdad facility is scheduled to achieve commercial operation within the next few weeks.  The electricity generated by the projects will be purchased by APS under 25-year power purchase agreements. read more

In an interview with Las Cruces Sun News, newly appointed Public Regulation Commissioner Doug Howe stated he supports a number of the recommendations made by "Think New Mexico" for restructuring the New Mexico regulatory agency.  Howe stated he felt the PRC should focus on its core responsibilities of utility and telecommunications regulation.  He also supports establishing some additional criteria for persons elected to the position, a key recommendation from the bi-partisan Think New Mexico group.  Democrat Jason Marks and Republican Patrick Lyons favor some reductions in the agency's responsibilities while Democrat Theresa Becenti Aguilar and Republican Ben Hall believe reforms can come from within.  Any changes to the responsibilities or qualifications for the Commissioners would have to come from the legislature and from the NM voters, since the PRC's responsibilities are derived from the NM Constitution and not merely from statutes. read more

On Monday, November 7, 2011, NM Governor Susana Martinez appointed Independent Dr. Douglas Howe to the open seat on the New Mexico Public Regulation Commission ("PRC").  Dr. Howe, a consultant with IHS Cambridge Energy Research Associates and a Santa Fe resident, will fill out the remaining term of Jerome Block, Jr. who resigned from the PRC following Block's plea agreement and admission to several felony charges.  Dr. Howe has been involved with global power industry for over 28 years and has extensive experience in the areas of long-range corporate, strategic, and regulatory planning, particularly in the areas of executive management, corporate strategy, marketing, regulatory affairs,power contracting, retail energy and energy efficiency. read more

On October 21, 2011, Nevada Power Company ("NPC") re-filed its application requesting approval of the Public Utilities Commission of Nevada ("PUC" or "Commission") for power purchase agreements ("PPAs") for three renewable energy projects.  This re-filing is a result of the PUC's denial of NPC's initial request for approval of these PPAs in July 2011.  The Commission denied NPC's initial request because the utility did not meet its burden in justifying the need for the additional renewable energy.  The PUC stated in its order that based upon the evidence and testimony, Nevada Power did not adequately satisfy the legal requirements to allow the PUC to approve the three renewable energy PPAs.  It was the first time since Nevada adopted its Renewable Portfolio Standard ("RPS") in 2001 that the PUC did not approve a renewable energy PPA.  In late September 2011, the Commission, however, granted NPC's request for rehearing on these PPAs and issued an order requiring NPC to re-file its application for approval, along with additional justification by October 21, 2011. read more

On Thursday, October 6, 2011, Jerome Block Jr. submitted his resignation of his seat on the New Mexico Public Regulation Commission.  The resignation becomes effective at 3:00 p.m. on Friday, October 7.  The resignation was the result of a plea agreement that was reached between Block and state prosecutors over the misuse of campaign funds, and other felony charges.  Governor Susana Martinez will appoint a replacement to finish Block's term, which runs through December 31, 2012.  Eighty-seven applicants filed an application for the $90,000 per year position by Wednesday, October 5, 2011, the deadline established by the Governor.  There is no deadline by which Governor Martinez is required to make the appointment.  The conviction of Block and numerous legal and ethical problems by several commissioners over the past several years have led law makers and others to look at establishing minimum qualifications to hold the position. read more

On Wednesday, September 28, 2011, New Mexico Public Regulation Commissioner Jerome Block, Jr. pled guilty to felony charges concerning misuse of campaign funds, misuse of his PRC gas credit charge and other offenses.  The plea agreement included a voluntary resignation from the New Mexico Public Regulation Commission and a commitment not to run for any public office in the future.  He will be required to repay $8000 for the misuse of funds and will also enter a drug rehabilitation program.  Block will have ten days in which to resign from the PRC office.  Following his resignation from the PRC, Governor Susana Martinez will appoint a replacement to serve out his term at the PRC. read more

Without comment, the Arizona Supreme Court yesterday declined to hear an appeal of the Court of Appeals' decision in the legal battle over the state's Renewable Energy Standard and Tariff (REST) rules.  The appeal was sought by the Goldwater Institute after the both the Superior Court and the Court of Appeals ruled in favor of the Arizona Corporation Commission (ACC).  The primary issue in the case was whether the ACC's adoption of the REST rules was within the agency's constitutional authority to regulate the rates charged by private utility companies.  Because it declined to hear the appeal without any comment, it can fairly be implied that the Supreme Court agrees with the lower court's decision. read more

The news of Solyndra's bankruptcy filing and the FBI's raids of the company must be an embarrassment to the Obama administration, as a little more than a year ago the President praised the solar manufacturer, touting its job creation potential and promise for America's clean energy future. The Department of Energy (DOE) remains undaunted, however, and this week announced three new loan guarantees for solar energy companies. read more

On July 28, 2011, the Navajo Nation Telecommunications Regulatory commission (NNTRC) initiated a rulemaking proceeding for a Proposed Application for Certificate of Convenience and Necessity (CCN) for telecommunications operators who desire to provide telecommunications services on the Navajo Nation.  Telecommunications service is defined as "the providing of voice or other communication services by telecommunications including, without limitation, non-voice communications services, or data communication services which may interconnect with other telecommunication networks and/or involve operation of transmission/reception devices for binary information representation."  The rule specifically states that it includes wireless phone and data services, satellite services, and Internet. read more

EPA published notice yesterday in the Federal Register of its decision to postpone certain greenhouse gas (GHG) reporting requirements in response to industry's concerns about the disclosure of confidential business information.  The decision applies only to specific input data required by previous rules to be included in the annual reports of direct GHG emitters such as power plants, petroleum refineries, and many types of manufacturing facilities.  For some of the data, the requirement to report is being postponed until March 31, 2013.  For the rest of the data, EPA is postponing reporting until March 31, 2015 in order to give the agency time to evaluate whether disclosure would cause competitive harm to reporting entities. read more

On Friday, August 5, the EPA issued a rule requiring installation of expensive air quality emissions controls for the San Juan Generating Station (SJGS), a 30 year-old power plant located west of Farmington, New Mexico.  Public Service Company of New Mexico (PNM), which owns approximately half the plant, has estimated the cost of the EPA's order at $750 million to $1 billion, translating into an $85 annual increase to ratepayers, although these figures are disputed by environmental organizations.  This comes on top of a nine percent rate increase recently approved by the Public Regulation Commission.  PNM plans to appeal the EPA's decision. read more

On August 2nd, the New Mexico Court of Appeals reinstated criminal charges against PRC Commissioner Jerome Block Jr. and his father, former Commissioner Jerome Block Sr.  The charges had previously been dismissed by District Court Judge Michael Vigil.  In April 2009, Commissioner Jerome Block Jr. was charged with election violation, tampering with evidence, conspiracy, and embezzlement. His father was charged with same charges, absent the embezzlement charge.  The charges arose out of alleged misuse of publicly funded campaign funds during the 2008 election.  If convicted of a felony charge, Commissioner Block would be removed from the Commission, regardless of any appeal, and Governor Susana Martinez would appoint a replacement for the remainder of the term.
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On July 27th the New Mexico Supreme Court was unanimous in its decision to allow environmental groups to intervene in an ongoing legal battle regarding the state's regulation of greenhouse gas (GHG) emissions.  Utilities and other petitioners recently filed petitions with the New Mexico Environmental Improvement Board (EIB) seeking to repeal the regulations that were approved in the last few weeks of former Governor Richardson's administration.  The regulations include New Mexico's plan to participate in a regional cap-and-trade program, as well as implementing a statewide cap on GHG emissions and a reporting system.  Environmental groups claim the EIB excluded them from talks meant to resolve the issues raised by opponents of the GHG regulations. read more

The EPA has agreed to defer for three years the requirement that biomass facilities obtain greenhouse gas permits. On July 1, in its final rule implementing the deferral, the agency explained, "the issue of accounting for the net atmospheric impact of biogenic CO2 emissions is complex enough that further consideration of this important issue is warranted."  The EPA's action responded to a petition filed by the National Alliance of Forest Owners (NAFO).  The result of this decision, as summarized in the final rule, "is that during this three year period biogenic CO2 emissions are not required to be counted for applicability purposes under the PSD and Title V permitting programs."
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The U.S. Supreme Court ruled unanimously (8-0) today, in the case of American Electric Power v. Connecticut, that the Clean Air Act (CAA) and EPA's implementing regulations have displaced federal common law related to the control of greenhouse gas (GHG) emissions.  The Court was split 4-4 on the separate question of whether the plaintiffs had standing to bring the case at all (Justice Sotomayor recused herself from consideration of the case since she heard arguments on it while on Second Circuit).  The even split among the Justices on the issue of standing resulted in an affirmation of the Second Circuit's holding that climate change lawsuits can be subject to the jurisdiction of federal courts. read more

The Bipartisan Policy Center (BPC) issued a report this week analyzing the impact of new and pending regulations under the Clean Air Act (CAA) on the reliability of the country's electric system.  The report's conclusion is that the reliability impacts will be "manageable" and that tools are available to address localized reliability issues.  However, the report also warns that careful planning will be required by utilities and regulators to apply these tools and to minimize increases in electricity prices resulting from the new rules.  This report comes on the heels of announcements by several large utilities of their intent to shut down coal plants as a result of EPA's overly ambitious agenda. read more

Last week, Arizona Public Service Co. (APS) filed a new rate case with the Arizona Corporation Commission (ACC).  The filing proposes raising electricity rates on all classes of customers to support the utility's efforts to improve its system's sustainability and reliability.  The filing also proposes, for the first time in Arizona, the establishment of an "Efficiency and Infrastructure Account" that aims to allow APS to recover costs that it spends on energy efficiency efforts. read more

This week, the Salt River Project's (SRP) Board of Directors voted to increase the utility's goal for sustainable energy resources to 20% of all retail sales by the year 2020.  SRP's previous goal, set in 2006, was 15% of retail sales by 2025.  SRP defines "sustainable resources" to include hydro power and energy efficiency measures along with more commonly recognized renewable resources such as solar and wind.  Read more here.  Regulated utilities in Arizona, such as Arizona Public Service Co.  (APS) and Tucson Electric Power (TEP), are required by the Arizona Corporation Commission (ACC) to generate 15% of their retail sales from renewable resources by 2025 and to separately reduce energy consumption by 22% by 2020 through energy efficiency measures.  As a quasi-governmental entity, SRP is regulated by the State Legislature, not the ACC. read more

The Small Business-Friendly Task Force, created by Governor Susana Martinez shortly after taking office in New Mexico, issued a 13 page report late on Wednesday.  The Governor plans to work with her administration and legislators to implement the recommendations in order to make New Mexico more "business friendly."  In the report, the Task Force recommends that the government "revise" the controversial greenhouse gas cap-and-trade rule adopted by the Environmental Improvement Board (EIB) shortly before former Governor Bill Richardson left office.  The report does not suggest any specific revisions to this particular rule but it seems safe to assume that the Governor would like it rescinded in its entirety. read more

On Monday, April 11, 2011, BrightSource Energy, Inc., announced that it had closed financing for the Ivanpah Solar Electric Generating System, a 392 megawatt solar power plant under construction in California's Mojave Desert.  Financing for the plant includes $1.6 billion in loan guarantees from the U.S. Department of Energy and a $168 million equity investment by internet giant Google, both announced on Monday.  NRG Solar is the project's other large equity stakeholder, which has committed to invest up to $300 million.  BrightSource, which is headquartered in Oakland, California, also has operations in the Negev (Israel) and Australia. read more

In the ongoing legal battle between the Goldwater Institute and the Arizona Corporation Commission (ACC) over the ACC's adoption of its Renewable Energy Standard and Tariff (REST) rules, the Arizona Court of Appeals has affirmed the Superior Court's ruling in favor of the ACC.  In its opinion, the three judge panel concluded that the ACC's "promulgation of the REST rules falls within its plenary power over ratemaking under Article 15, Section 3" of the Arizona Constitution.  The Phoenix Business Journal is already reporting that the Goldwater Institute is likely to appeal the ruling to the State's Supreme Court (subscription required).  The REST rules, among other things, require regulated utilities to obtain a certain percentage of their retail electricity sales from renewable resources. read more

On Wednesday, the Senate rejected an amendment proposed by Sen. Mitch McConnell (R-KY) that would have blocked EPA's plans to regulate greenhouse gases (GHGs) under the Clean Air Act.  The legislation was offered as an amendment to a small business bill that the Senate has been working on for several weeks.  The amendment received the support of all but one Senate Republican, Sen. Susan Collins (ME), and was also supported by four Democrats, Sens. Joe Manchin (WV), Ben Nelson (NE), Mary Landrieu (LA), and Mark Pryor (AR).  On the same day, the Senate rejected three more moderate attempts to limit or postpone EPA's regulations, primarily because they were opposed by Republicans as not going far enough to curb EPA's plans. read more

We blogged here about Representative Fred Upton's (R-MI) bill that would repeal the EPA's finding that greenhouse gases endanger the environment.  The Energy Tax Prevention Act of 2011, as the measure is known, has now passed the House Energy and Commerce Committee on a 34-19 vote.  The committee rejected last-minute amendments that would have put Republican supporters on record denying that human activity contributes to climate change.  On March 15, the same day as the passage of Rep. Upton's bill, Senate Majority Leader Mitch McConnell (R-KY) introduced an amendment to a small business bill that would also block EPA's regulation of greenhouse gas emissions. read more

SOLON Corporation, a Tucson-based subsidiary of the German company SOLON SE, announced Feb. 24 that it has been awarded a contract to design and construct a 15 MW power plant in California for Pacific Gas & Electric (PG&E), one of the largest utilities in the U.S.  SOLON is a manufacturer of turnkey power plants and crystalline silicon solar modules.  Construction on the PG&E project is slated to begin in April 2011 and end in October 2011. read more

Arizona's Salt River Project (SRP) announced plans this week to review its Sustainable Portfolio Principles, adopted by its Board of Directors in 2004.  These principles include goals such as "evaluat[ing] and implement[ing] supply- and demand-side measures that reduce the use of traditional fossil fuels" and "encourag[ing] … the development and use of sustainable energy technologies."  The Principles were last reviewed by SRP's Board in 2006. read more

More greenhouse gas regulations are on the way.  The EPA announced Dec. 23 that it will revise the new source performance standards for electric utilities and petroleum refineries to add limitations on greenhouse gas emissions.  The EPA is taking this step in settlement of lawsuits filed by several states and environmental groups after the agency revised the standards for utilities in 2006 and refineries in 2008 without limiting greenhouse gases. read more

On the heels of New Mexico's approval of cap-and-trade earlier this month, regulators in the Golden State decided late yesterday to adopt a cap-and-trade plan, creating the world's second-largest carbon market after Europe's.  The California Air Resources Board (CARB) voted 9-1 to limit greenhouse gas emissions from large emitters, the keystone of the state's goal to reduce emissions to 1990 levels by 2020, as outlined in the 2006 Global Warming Solutions Act.  Voters last month rejected a measure that would have postponed these emissions reduction efforts until a recovery in the jobs market. read more

We blogged here about the New Mexico Environmental Improvement Board's (EIB's) December 6 decision to adopt a cap-and-trade program and the City of Farmington's immediate appeal of that decision.  Now, the Public Service Company of New Mexico (PNM) is joining the fight, filing a separate legal challenge with the New Mexico Court of Appeals on December 14.  PNM believes that the EIB overstepped its authority in mandating cap-and-trade and has stated that the program would competitively disadvantage New Mexico.  Other parties who have appealed the decision include the New Mexico Oil and Gas Association, Southwestern Public Service Company, and the Tri-State Generation and Transmission Association. read more

New Mexico Residential customers can expect a 35 cent increase in their monthly electricity bills beginning in January, 2011.  The charge would be added to Public Service Company of New Mexico's energy efficiency rider that, according to PNM, helps pay for the program's actual costs.  The program includes many components, from refrigerator recycling to discounts for the purchase of fluorescent bulbs.  The rider would allow PNM to recover the revenue to cover fixed costs that continue, even though energy use is decreased.  The add-on also is intended to serve as an incentive for investing in low-cost energy programs in lieu of new plants. read more

It did not take long.  On Monday, December 6, the New Mexico Environmental Improvement Board New Mexico Environmental Improvement Board adopted a plan to require businesses and industries in the electric and gas and oil sectors that emit 25,000 metric tons or more of carbon dioxide to start reducing emissions by 3% a year from 2010 levels, beginning on January 1, 2013.  The rule would sunset if a regional or federal emissions reduction program is put in place.  Regulated companies that cannot reach the reduction requirements could buy offsets from unregulated state companies that are able to reduce green-house gas emissions.  On Tuesday, December 7, the Farmington City Council voted unanimously to appeal that decision. read more

Yesterday, the U.S. Supreme Court announced that it has accepted certiorari over an appeal by several large power companies from a Second Circuit decision allowing public nuisance claims based on greenhouse gas emissions to proceed.  The case was brought by eight states, three non-profit land trusts, and New York City seeking to impose injunctions on the defendants to restrict their carbon emissions.  The claims were initially dismissed by the Southern District of New York on political question grounds, but reinstated by the Second Circuit last fall.  As we previously blogged, the Obama Administration urged the Supreme Court several months ago to review the circuit court's decision. read more

The New Mexico Public Regulation Commission is expected to approve a Public Service Company of New Mexico request to add 50 cents to an existing PNM rider to pay for its energy efficiency program.  PNM argued that energy efficiency programs cause customers to use less energy, reducing revenues, thus creating a disincentive to develop such programs.  The fixed recovery cost would be based on 1 cent per kilowatt hour saved over the life of the energy efficiency program.  The Commission will likely rule on the request in December. read more

Yesterday, EPA issued a guidance document intended "to assist permit writers and permit applicants in addressing the prevention of significant deterioration (PSD) and title V permitting requirements for greenhouse gases (GHGs) that begin to apply on January 2, 2011."  The most significant aspect of the new guidance is that, in many cases, implementing energy efficiency measures will be the best available control technology (BACT) for GHGs.  Some industry proponents had been worried that GHG permitting would require fossil fuel-fired power plants to implement unproven carbon capture and storage technologies.  EPA hopes that the permitting guidance will allay this concern and "rejected suggestions from Republicans opposed to the new [GHG permitting] rules that they would impose onerous and costly conditions on energy firms that will damage the economy and lead to a de facto ban on new facilities." read more

The New Mexico Supreme Court has overturned a Public Regulation Commission (PRC) order that El Paso Electric Company refund more than $5 million to customers in Doña Ana and Otero counties.  El Paso Electric had been including in customer rates the franchise fees charged by these counties for the utility's use of public rights of way to deliver electricity.  In its refund order, the PRC concluded that the counties lacked authority under state law to impose the franchise fees and that El Paso Electric should not pass them on to customers. read more

Arizona's solar energy industry is expanding again.  On Oct. 12, Sempra Generation announced its plans to build a large-scale solar photovoltaic plant in Arizona.  The first phase of the planned Mesquite Solar Complex will generate 150 megawatts of electricity, with the capacity to grow to 600 megawatts at full build-out.  The plant will be located in Arlington, 40 miles west of Phoenix, on former agricultural land and will connect to the grid at the Hassayampa switchyard.  Sempra Generation, a San Diego-based subsidiary of Sempra Energy, has entered into a 20-year, 150-megawatt power purchase agreement with Pacific Gas & Electric, which is pending approval by the California Public Utilities Commission. read more

On Tuesday, Sen. Jeff Bingaman (D-NM) proposed a national renewable electricity standard (also called a renewable portfolio standard) as a stand-alone bill with some GOP support.  The standard would require electric utilities who sell more 4 million MW-hrs per year to generate at least 15% of their electricity from renewable sources by 2021.  Supporters view a national RES as a way to encourage the development of renewable energy in light of Congress' rejection of the broader and more ambitious energy bill proposed earlier this year by Sens. Kerry (D-MA) and Lieberman (I-CT). The proposed RES is expected to have much lower costs than Kerry-Lieberman's cap-and-trade scheme although it will also do much less to reduce greenhouse gas emissions. read more

The Arizona Corporation Commission announced last week the official launch of the Arizona Goes Solar website, a one-stop resource for Arizona consumers and businesses looking for information about solar projects going on around the state and available incentives for adoption of solar energy technology.  According to the website, Arizona Goes Solar is a "collaborative effort led by the Arizona Corporation Commission and implemented by the electric utilities in Arizona." read more

Acting Solicitor General, Neal Katyal, filed a brief with the Supreme Court last week, asking the Court to vacate the 2nd Circuit's ruling in American Electric Power v. Connecticut, and to remand the case for reconsideration in light of the EPA's progress in implementing greenhouse gas regulations.  The move reportedly surprised the plaintiffs and environmental groups who were hoping for the Obama administration's support in the case, which seeks to impose an injunction on six of the largest carbon emitters in the country. read more

The Journal Science is providing free online access to its special issue: Scaling up Alternative Energy, until August 27, 2010.  The special issue "explores worldwide efforts to develop clean, renewable alternatives to fossil fuels" and is an excellent opportunity to find out what experts think about many of the issues currently being debated by politicians and the public.  The underlying message of the issue, is that developing renewable energy on the scale necessary to replace fossil fuels will most likely require more time and be more difficult than many proponents of renewable energy currently realize. read more

The Salt River Project (SRP) has announced a plan to allow schools to receive solar electricity without any upfront costs by purchasing output from a single large PV plant. SRP believes this will be more cost-effective than installing PV systems at individual schools.  Under the program, schools will sign 10-year contracts to buy electricity at a fixed rate of 9.9 cents per kilowatt-hour (kWh).  Schools in SRP's territory currently pay 8.3 cents per kWh for their daytime electricity so, initially, the schools will pay a 19% premium for the solar power.  However, SRP's prices will almost certainly increase over the next 10 years.  The fixed-rate contract protects schools against price increases and could eventually allow them to buy electricity at less than the normal rate.  This new program is in addition to SRP's Solar for Schools Program, which will install PV systems at 14 Arizona schools this year. read more

While many people have never heard of solar daylighting, Glendale-based Natural Lighting Company has been designing and installing their energy saving component "daylighting" systems since 1992.  Component daylighting is a technology that uses high efficiency skylights, reflective lightwells, and light diffusers to convey sunlight through a building's roof to light the interior.  While perhaps, not as flashy as photovoltaic (PV) panels, solar daylighting is starting to gain attention as a cost effective solar technology.  For example, in APS's Schools and Government Program (recently filed with the Arizona Corporation Commission), the utility hopes to install a daylighting project along with every PV or solar thermal project.  Arizona's Department of Commerce is getting on board too.  read more

The Clean Energy Jobs and Oil Company Accountability Act, unveiled by U.S. Senate Majority Leader Harry Reid (D-NV), does not include a national renewable energy standard (RES).  Several Democratic senators have expressed their support for a nationwide RES that requires utilities to provide 15% of their power by renewable energy resources.  Renewable energy groups have also expressed dismay that the bill does not include an RES. read more

Yesterday, Senate Majority Leader Harry Reid (D-NV) acknowledged what has been suspected for several weeks – that there is not enough support in the Senate for a carbon cap-and-trade scheme.  Although the possibility of an economy-wide cap-and-trade system has been unlikely for some time, Democratic leaders and environmental advocates had maintained hope that the Senate would pass a utility-only cap-and-trade program or, at a minimum, a national Renewable Energy Standard.  The smaller energy and oil spill-related bill Sen. Reid now intends to pursue will include neither. read more

The latest development in the Senate climate bill drama is a shift in focus from economy-wide to utility-only greenhouse gas emission caps.  Senators Kerry (D-MA) and Lieberman (I/D-CT), who previously authored a sweeping cap-and-trade bill that failed to attract the needed sixty votes, are now working feverishly to garner support for a pared-down version that limits only power plant emissions.  Their efforts are in response to Majority Leader Reid’s (D-NV) July 13 announcement that he wants to address power plant emissions in the larger energy bill that he plans to send to the floor during the last week of July.  That bill will also include titles that deal with oil spill response, energy efficiency, and renewable energy production. read more

According to an analysis by the Energy Information Administration (EIA), the American Power Act of 2010 would reduce GDP by 0.2% from 2013 to 2035.  The decrease in GDP is a result of higher energy prices, "which reduces real economic output, reduces purchasing power, and lowers aggregate demand for goods and services."  EIA estimates the Act would cost an average of $206 per household per year. read more

Public Service Company of New Mexico has filed for a $165M two-phase rate increase with the New Mexico Public Regulation Commission.  If approved, the new rates would represent a 21.2% increase on top of a 24% increase customers have already seen since 2007.  The new proceeding before the PRC is in addition to an already ongoing case that involves solar and other renewable energy initiatives designed to increase PNM's renewable energy portfolio.  The rate increase will be based upon the projected cost of service for 2011 and not on the actual cost of service of a historical (past) year. A decision is not expected until early 2011, at which time the Commission will have at least three new Commissioners. read more

We blogged here about Sen. Murkowski's (R-AK) resolution of disapproval of the EPA's greenhouse gas endangerment finding, which provides the legal basis for the agency's recently promulgated "tailoring rule" for stationary source emissions and its light-duty vehicle emissions rule.  On Thursday, June 10, the Senate will vote on the disapproval resolution.  Per a unanimous consent agreement between Sen. Murkowski and Majority Leader Harry Reid (D-NV), the Senate is slated to debate the resolution for ten hours, with no filibusters or amendments allowed.  Sen. Murkowski has secured forty-one co-sponsors for the resolution, including Democrats Sen. Mary Landrieu (D-LA), Sen. Blanche Lincoln (D-AR), and Sen. Ben Nelson (D-NE), but it is not clear whether she will be able to garner the additional ten votes needed for passage. read more

Senator Lindsey Graham (R-S.C.), who until recently was heavily involved in negotiating the Kerry-Lieberman climate bill released earlier this month, said this week that a climate bill focused only on power plants may be the best way to proceed.  Senator Graham apparently thinks that the Kerry-Lieberman bill, which includes provisions intended to reduce transportation emissions that critics have labeled a "gas tax", will not be able to get the support it needs to pass a Republican filibuster in the Senate. read more

The Solar 2010 National Conference, an annual event of the American Solar Energy Society (ASES), opened Monday, May 17 at the Phoenix Convention Center. Approximately 2,500 industry professionals have attended the week-long gathering, which features hundreds of vendors from all sectors of the solar industry.  Participants have included rooftop installers, manufacturers of solar water heaters, and builders of large-scale solar power plants.  A major sponsor of the event is Arizona Public Service Co., which offers rebates to electricity customers who install solar systems for their homes and businesses. read more

On May 12, Senators John Kerry (D-MA) and Joe Lieberman (I/D-CT) unveiled their much-anticipated cap-and-trade bill (known to opponents as "cap-and-tax").  Senator Kerry declared his hope that the legislation, titled the American Power Act (APA), will reach the Senate floor by June or July, which may be the last opportunity to pass a climate bill before the mad dash to the November midterm elections.  The lone Republican to have a hand in drafting the bill, Senator Lindsey Graham (R-SC), was not present at the unveiling, having withdrawn his support last month over concerns about the interference of immigration politics. read more

On May 13, 2010, EPA issued a final rule (the so-called "Tailoring Rule") that will impose the first greenhouse gas (GHG) emission controls on large stationary sources.  Starting January 1, 2011, any new or modified source that is already subject to the federal Prevention of Significant Deterioration (PSD) must identify and adopt Best Available Control Technology (BACT) to control GHGs, if the project increases GHGs by 75,000 tons per year (tpy) or more.  On July 1, 2011, any new source with GHG emissions of 100,000 tpy, or any modified source that will increase GHG emissions by 75,000 tpy must go through PSD permitting and implement BACT to control GHG emissions. read more

On May 4, 2010, the EPA proposed the first-ever federal rules to regulate "coal combustion residuals" (more commonly known as coal ash waste), which are the byproduct of burning coal to produce power.  The large volumes of coal ash generated by power plants may be disposed of either in solid form at landfills or in liquid form at large surface impoundments.  Coal ash may also be recycled for beneficial uses, including use in cement, concrete, and wallboard.  In its press release, the EPA stated that coal ash waste contains "contaminants like mercury, cadmium, and arsenic, which are associated with cancer and various other serious health effects" and opined that without proper disposal safeguards, these toxins could leach into groundwater and migrate to drinking water sources. read more

On Wednesday, Interior Secretary Ken Salazar approved the Cape Wind project in Nantucket Sound, ending a nearly decade-long NEPA review of the proposal.  The project could become the first offshore windfarm in the U.S., but opponents have vowed to fight it in court -- seeking a preliminary injunction that could postpone construction for years.  However, considering the extensive reviews conducted by both federal and state agencies, it could be difficult for opponents to demonstrate a "substantial likelihood of success on the merits," as required for obtaining a preliminary injunction. read more

In this interview with E&E TV, Dave Hoppe, former Chief of Staff for Trent Lott (R-MS), and Patrick Von Bargen, former Chief of Staff for Jeff Bingaman (D-NM), discuss their expectations for Senate action on climate change legislation this year.  Both predict that the Kerry-Graham-Lieberman bill will go to the floor but will not be able to garner the 60 votes necessary to overcome a Republican filibuster.  The key will apparently be Senator Graham's ability to bring some of his fellow Republicans on board.  Mr. Von Bargen also discussed how President Obama's recent proposal to lift restrictions on off-shore drilling was a message to Republican Senators that "it's ok" to support climate legislation because it is not going to be an extreme measure. read more

Three prominent Senators are working on a new climate bill that will address some of industry's major concerns with the earlier Kerry-Boxer bill while maintaining the Kerry-Boxer bill's caps on carbon emissions.  On Wednesday, Senators John Kerry (D-MA), Lindsey Graham (R-SC), and Joseph Lieberman (I-CT) shared an outline of their proposal with several major industry groups, including the U.S. Chamber of Commerce, the Edison Electric Institute, and the American Petroleum Institute. read more

On Tuesday, Senator Richard Lugar (R-IN) announced his intent to draft and present to the Senate an energy bill that will focus on threats other than climate change, including national security, economic, and environmental threats to the United States and her citizens. The Senator’s plan does not include a cap-and-trade component or any direct control on GHG emissions but it does contain a "clean energy standard" mandating the use of cleaner energy sources. read more

On Monday, in response to a letter from several U.S. Senators, EPA Administrator Lisa Jackson released a letter outlining the agency's plans for regulating greenhouse gases in the absence of climate change legislation from Congress. The Senators' letter, signed by eight coal-state Democrats, warned that "[i]ll-timed or imprudent regulation of GHGs may squander critical opportunities for our nation, impeding the investment necessary to create jobs and position our nation to develop and produce its own clean energy," and asked for an explanation of the agency’s plans with respect to regulating GHGs from stationary sources. In her response, Administrator Jackson states that she shares the Senators' goal of "addressing greenhouse gas emissions in sensible ways that are consistent with the call for comprehensive energy and climate legislation." read more

Lewis and Roca represented Hualapai Valley Solar LLC in hearings on January 12-13 before the Arizona Power Plant and Transmission Line Siting Committee. At the conclusion of the hearing, the committee voted unanimously to approve a new 340 MW solar power plant to be built about 30 miles north of Kingman, Arizona. This project addressed the issue of water usage by thermal solar plants by working with the City of Kingman to purchase the City's effluent for use by the plant, thereby reducing the amount of groundwater needed. read more

Plans to bury America's nuclear waste inside Nevada's Yucca Mountain, a project that has long been the subject of environmental and political opposition, appear to be coming to an end. Funding for the nuclear waste site has been eliminated in President Obama's budget proposal released Monday. The Department of Energy also seeks to eliminate Yucca as an option, filing paperwork to suspend licensing for the site. read more

Last week, SEC Commissioners voted to provide public companies with interpretive guidance on the application of existing disclosure rules to climate change issues. These guidance documents are not meant to create any new legal requirements or modify any existing ones but are "intended to provide clarity and enhance consistency for public companies and their investors." The areas mentioned by the Commission as potentially triggering disclosure duties include: (1) Existing and pending legislation and regulation; (2) Impacts of international accords; (3) Actual and potential indirect consequences of regulation or business trends; and (4) Physical impacts of climate change. read more

A group of institutional investors, asset managers, and environmental advocacy groups has filed a supplemental petition with the SEC asking for rules requiring public companies to assess and disclose their exposure to climate change-related risks and opportunities. The group, led by Ceres and the Environmental Defense Fund and holding more than $1 trillion of assets, argues that the physical, business, and regulatory risks of climate change should be disclosed to the investing public. read more

Federal district court Judge Roger Titus of the U.S. District Court for the District of Maryland, issued a comprehensive ruling that an industrial wind energy facility in Greenbrier County, West Virginia will kill and injure endangered Indiana bats, in violation of the Endangered Species Act (ESA). The court concluded that "the development of wind energy can and should be encouraged, but wind turbines must be good neighbors." read more

Arizona Governor Jan Brewer has stated that she wants to make Arizona the "solar capital of the world." To that end, she has signed into law tax incentives for renewable energy companies and created a solar energy advisory task force. And, during her Jan. 11 State of the State address, she marked further progress toward that goal. Gov. Brewer announced a commitment by Tower Automotive to locate its solar component manufacturing operations in the Valley. Tower Automotive’s decision comes just two months after the news that Chinese giant Suntech Power Holdings Co. will open a large solar-panel manufacturing facility in Phoenix. Gov. Brewer called both decisions "strategic wins" that establish Arizona's "foothold in the solar industry." read more

Nevada has been ruled out as an alternative disposal site for low-level radioactive waste from South Carolina. The Nevada Test Site, about 65 miles north of Las Vegas, is being excluded from discussions about the nearly 15,000 drums of depleted uranium because the energy department agreed to conduct a statewide environmental impact statement before accepting new waste there and the review could take longer than a year. read more

EPA issued a widely anticipated finding today that greenhouse gas emissions “endanger … the public health and the public welfare of current and future generations.” This finding is a prerequisite to EPA finalizing its proposed light-duty vehicle GHG emissions standards proposed in September and is a step towards regulating emissions from stationary sources such as power plants and refineries. read more

As big as you can afford. While the fabled “London Array”, which contemplates 1 gigawatt of production capacity in the Thames Estuary, is truly enormous, Sweden plans a wind farm array in Lappland (where the reindeers live) that will generate over 3 gigawatts. They will use 7.5 megawatt turbines, that will be far higher than a football field is long: over 35 stories high. See the video, and more details, here. read more

It’s official: Climate change legislation will not happen this year. Senate Democratic leaders announced last week that floor debate on the Boxer-Kerry bill (S. 1733) will not begin until next spring, taking a back seat to legislation overhauling the healthcare system and financial industry. According to conventional wisdom, the climate bill will become increasingly difficult to pass after March 2010, with election pressures making lawmakers reluctant to support legislation that many see as likely to slow economic recovery and raise energy costs. read more

EnviroMission (USA) Inc., the Phoenix-based subsidiary of the Australian company EnviroMission Ltd., already has a few parcels under option in La Paz County and recently received an initial approval from the Southern California Public Power Authority ("SCPPA").  The company plans to construct a plant in Arizona that will generate electricity using "solar tower" technology.  This new technology, described here, essentially heats air near ground level using a greenhouse effect and then funnels it into a huge tower as it rises, driving wind turbines.  Unlike photovoltaic and concentrating solar, the solar tower does not require any water and can operate at night and on cloudy days since it is powered by radiant heat rather than direct sunlight. read more

Now that climate change legislation has passed the Senate's Environment and Public Works Committee, albeit without any Republican votes, proponents must gather the bipartisan support and 60 votes needed to withstand an expected filibuster. The road to the floor will not be smooth, with senators of both parties expressing reservations and seeking to modify the bill. read more

A proposal submitted by petition for hearing on January 5, 2009 by New Energy Economy (a Santa Fe based nonprofit) is being considered by the state Environmental Improvement Board (NMEIB) and would place strict limits on greenhouse emissions.  The New Energy Economy proposal would apply to oil and gas producers, refineries, manufacturers, power plants, and others that emit 10,000 tons or more a year of carbon dioxide and require that by 2020, they reduce greenhouse gas emissions 25% below 1990 levels. read more

In the wee hours of Sunday morning, Spain set quite a record: The country got more than half its electricity from wind farms, a first for a country long invested in renewable energy.  Between 4:30 and 6 a.m., Spanish wind turbines took advantage of a particularly windy day to generate 53% of the electricity coursing through the grid. read more

NV Energy recently began a bio-mass test in an attempt to increase efficiency, reduce emissions, and reduce energy prices for customers.  The test began two weeks ago and consists of burning wood chips to produce steam. read more

On Tuesday, the Nevada Interim Committee on the Production and Use of Energy heard presentations from the Solar Alliance and the Electric Auto Association of Nevada regarding feed-in tariffs.  After the presentations, Chairman Schneider directed the Nevada Public Utilities Commission (PUCN) to open an investigatory docket regarding the plausibility of the feed-in tariffs. read more

PointCarbon, a market research firm, has just released a study projecting that ExxonMobil would need to spend nearly $6 billion for carbon allowances under the terms of the Kerry-Boxer cap-and-trade bill. read more

Government incentives (federal, state and local combined) make installing solar power almost irresistible. Buyers can save up to 90% on a system whether its for a single family home or a 75-unit condo in the city. This article by Chris Kahn describes a $394,514 solar system installation at a Queens, NY co-op in which the 75% of the cost was picked up by government incentives. The remaining 1/4 costs will be recouped in a couple years, and then the co-op can start selling back energy to the public utility. A Lawrence Berkeley National Laboratory study released last month shows solar costs have declined 31% over last 10 years. read more

More than 500 researchers, federal contractors and venture capitalists are expected in the Reno-Sparks area next week to attend a business, energy, and technology conference. read more

On Tuesday, the Senate Environment and Public Works Committee began hearings on a climate bill introduced by Senator Barbara Boxer (D-CA), chair of the Committee, and Senator John Kerry (D-MA).  Most republicans remain opposed to climate legislation on grounds that it will raise energy prices and cost jobs.  Supporters counter that clean energy technology could be the next major growth industry and that the U.S. is falling behind many other countries who are already making heavy investments in research and development.  Some climate bill “fence-sitters”, primarily moderate democrats such as Senator Max Baucus (D-MT), are in favor of passing climate legislation but concerned that the current version is too ambitious. read more

NV Energy will receive a $138 million grant, as part of the American Recovery and Reinvestment Act (ARRA), to implement smart grid technologies in Nevada.  The project is part of an $3.9 billion build out of the smart energy grid announced Tuesday by President Obama. read more

The Solar Technology Roadmap Bill passed the House of Representatives last Thursday by a 310 to 106 vote. read more

Two federal circuit courts recently allowed mass tort cases based on damages from climate change to proceed. In these two cases, the Second and Fifth Circuits agreed that public nuisance claims based on the effects of climate change could be considered by courts in the absence of federal legislation or rules from EPA. read more

Renewable energy developers using technologies that consume large amounts of water are finding it more difficult to obtain the necessary water rights and approvals for their projects. read more

U.S. Representative Gabrielle Giffords, of Arizona's 8th District, recently introduced legislation that would require the Department of Energy to develop a long-term plan for the research and implementation of solar energy technology. read more

Three energy-sector businesses have recently left the U.S. Chamber of Commerce over its opposition to carbon legislation and its general stance on the issue of global climate change.  The three businesses are Exelon Corp., the largest nuclear operator in the United States; PG&E Corp., a California utility; and PNM Resources Inc, an energy holding company in New Mexico. read more

The rule identifies certain “source categories” such as power plants, petroleum refineries, and Portland cement manufacturers that must report emissions. In addition, any stationary source that emits 25,000 tons/year of CO2 equivalent must also report its emissions. EPA estimates that the 85% of total GHG emissions in the U.S. will be covered by the new rule. Facilities must begin monitoring on January 1, 2010 and reports for 2010 will be due on March 31, 2011. read more

In this "Daily Email", Clint Bolick of Arizona's Goldwater Institute argues against the Corporation Commission's Renewable Energy Standards. read more