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2013/01/04

| 01.04.13 | Kentucky Utilities in trouble with EPA, DOJ

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January 4, 2013
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Today's Top Stories
1. Duke Energy fires up new power plants
2. Latin American PV prospects strong
3. KU fined millions for clean air violatios
4. ERCOT harnessing every MW of wind
5. AEP could stick customers with $61.8M in storm costs

Also Noted: Spotlight On... Solar panels more attractive in NY
FCC revamping Connect America Fund and much more...

Customer engagement goes beyond satisfaction
The utility-customer relationship is undergoing a drastic transformation -- the first in decades. Utilities have been plagued almost from their inception by the attitude that customers are just ratepayers. And customers have returned that outlook with minimal engagement or understanding about how utility companies operate and distribute power. Feature

NSA secret cyber security testing no longer secret
It's no secret that the nation's electric grid is vulnerable to potentially devastating cyber attacks. It's also no longer a secret that the federal government is targeting utilities to test the security of their grids. Article

The Year of Smart Grid Consumer Engagement
Opportunities abound in 2013 for utilities to ramp up their consumer smart grid outreach and education. Since 2012, the opportunity for customer engagement has only increased. Armed with facts and research, the industry can better educate its customers. Feature

News From Across the Energy Industry:
1. Smart grid emerging from infancy
2. CMP launches major substation
3. PPL submits $200M reliability project proposal to PUC


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Today's Top News

1. Duke Energy fires up new power plants

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

Three new Duke Energy power plants came online at the end of 2012 to serve the utility's North Carolina customer base.

Duke Energy's Cliffside Steam Station Unit 6 went online December 30, 2012.

Estimated to cost nearly $3.65 billion, the utility says these plants represent just one aspect of Duke Energy's aggressive strategy to make the transition to cleaner generation sources. In addition to this investment, Duke has invested almost $6 billion since 2007 in new plants and another $7.5 billion for upgrades to existing plants in order to reduce emissions. Duke has also retired 6,800 MW of older coal capacity.

The 825 MW Cliffside Steam Station Unit 6 employs a combination of air quality controls to remove 99 percent of sulfur dioxide, 90 percent of nitrogen oxide and 90 percent of mercury. The unit burns a wide range of coals with superior emissions removal, allowing Duke to purchase cost-effective coals.

The 920 MW H.F. Lee Plant utilizes a highly efficient natural gas combined-cycle design. Progress Energy Carolinas retired three older coal units totaling 382 MW and four combustion turbines at the H.F. Lee Plant in the fall of 2012.

The Dan River Combined Cycle Station provides 620 MW of natural gas-fueled generation and provides more than twice the 276 MW of coal capacity Duke Energy retired there in spring 2012.

Since 2005, Duke has reduced its regulated fleet's sulfur dioxide emissions by 74 percent and nitrogen oxide emissions by 57 percent.

For more:
- visit Duke Energy's coal page
- visit Duke Energy's natural gas page

Related Articles:
Duke investigates carbon capture technology
Duke under fire for reliance on coal
Utilities face scrutiny for coal reliance
Duke Energy replacing coal with natural gas

Read more about: Duke Energy, natural gas
back to top



2. Latin American PV prospects strong

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

Mexico, Chile, and Brazil are predicted to experience explosive demand for solar photovoltaics (PV), accounting for nearly 70 percent of PV demand and a compound annual growth rate of 45 percent by 2017, according to NPD Solarbuzz.

In the past, PV demand was confined to rural off-grid and niche applications. Today, a combination of net metering, Renewable Portfolio Standards (RPS), and other policies and incentives, are fueling rising demand. Strong economic growth, and increasing energy demand and electricity prices make PV adoption particularly attractive. By the end of 2012, the region's energy regulators had received PV project applications in excess of 6 GW stimulating the PV pipeline.

The prospects for PV adoption are strong, but certain obstacles that must be overcome.

"PV connection and integration procedures are not yet clearly defined, and there are concerns about grid stability as PV contributions come online," said Chris Sunsong, an NPD Solarbuzz analyst. "Electricity subsidies in Mexico and low natural gas prices in Peru are also delaying the onset of PV grid-parity for some end-user categories, while import tariffs across the region are keeping PV system costs on the high side."

For more:
- see this article

Related Articles:
Solar PV prices falling
Solar robust even in economic downturn

Read more about: Solar Photovoltaics, NPD Solarbuzz
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3. KU fined millions for clean air violatios

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

Kentucky Utilities (KU) is in trouble with the U.S. Environmental Protection Agency and Department of Justice, and the price to right its wrongs is steep.

To resolve alleged Clean Air Act violations at KU's Ghent Station facility, a proposed consent decree and settlement agreement with EPA requires KU to install a sulfuric acid mist emission control system and replace a coal-fired boiler to the tune of $57 million. KU must also pay a civil penalty of $300,000. Further, KU will spend $500,000 for an environmental mitigation project that will include a geothermal heating and cooling system at an elementary school in its service area.

According to EPA, KU must adhere to more stringent and permanent emission limits utilizing a sulfuric acid mist pollution control system that will reduce sulfuric acid mist emissions by more than two-thirds (3.7 million lbs/year).

The consent decree filed with the U.S. District Court for the Eastern District of Kentucky is available for public comment for 30 days.

For more:
- see the complaint

Related Articles:
MATS compliance requires utility rethinking
Renewables minimize GHG emissions
Court upholds EPA greenhouse gas policies

Read more about: Kentucky Utilities, U.S. Environmental Protection Agency
back to top



4. ERCOT harnessing every MW of wind

By Barbara Vergetis Lundin Comment | Forward | Twitter | Facebook | LinkedIn

The winter winds are blowing, especially in Texas where El Paso is predicted to get five inches of snow.

No one is more thankful for the power of these winds than ERCOT, which set a new wind power generation record at the end of December.

On December 25, 2013, wind generation provided 8,638 MW of power, representing nearly 26 percent of system load. This tops the last record, set on November 10, by 117 MW.

Wind farms in West Texas contributed more than 6,600 MW with more than 1,600 MW coming from wind farms along the Texas Coast.

"Unlike traditional power plants, wind power output can vary dramatically over the course of a single day, and even more so over time," said Kent Saathoff, ERCOT's vice president of grid operations and system planning. "With new tools and experience, our operators have learned how to harness every megawatt of power they can when the wind is blowing at high levels like this."

Harnessing this power is increasingly important as ERCOT begins to move wind power via high-voltage transmission in Competitive Renewable Energy Zones from West Texas to metropolitan areas where grid demand is highest. These transmission projects will be done by the end of 2013.

ERCOT is reviewing an additional 20,000 MW of wind power capacity which it will add to the more than 10,000 MW it already has (the most in the nation). The completion of high-voltage transmission projects in Competitive Renewable Energy Zones by the end of 2013 will improve ERCOT's ability to move wind power from West Texas to the metropolitan areas where demand on the grid is highest.

For more:
- see this article

Related Articles:      
ERCOT credits new tool for wind records
ERCOT sets wind record

Read more about: wind
back to top



5. AEP could stick customers with $61.8M in storm costs

By Travis Mitchell Comment | Forward | Twitter | Facebook | LinkedIn

American Electric Power has a filed a proposal with Ohio regulators that could raise the average customer bill $36 for the next year, according to the Columbus Dispatch.

Although it's a common practice for utilities to seek reimbursement from customers after large storms due to revenue restrictions, the $61.8 million request is one of the largest seen by Ohio regulators.

AEP spokeswoman Terri Flora told the Dispatch that the costs suffered during a June derecho were far beyond what is normally seen and came without warning.

"There is not a utility in this country that does not (go to customers) to recover costs for large-scale storms," Flora said. "We recognize that customers were inconvenienced during the storm, but the work we did was helpful in maintaining our system, and the customer gets the benefit."

The Office of the Ohio Consumer's Council plans to review and respond to the request.

"The OCC will scrutinze AEP's request to collect storm costs from customers, and make recommendations on behalf of consumers to state regulators," said Marty Berkowitz, senior media specialist at OCC.

AEP is certainly not alone, a storm recovery costs have been increasing as a number of severe storms such as Hurricane Irene and Superstorm Sandy have ravaged utility service territories and battered aging infrastructure.

For more:
-see this article
-see the AEP application

Related articles:
Mass. utilities contesting millions in penalties over storm response
Keys to successful storm response
 



Also Noted

SPOTLIGHT ON... Solar panels more attractive in NY

The future of solar panels just got brighter in New York, where a new sales tax break is driving installations. The sales-tax exemption combined with lower prices and extended federal tax incentives became effective early this week. Article

>2 million big data jobs by 2020. Article
>FCC revamping Connect America Fund. Article
>WiFi, WiGig alliances merging. Article
>Mobile broadband continues growth. Article


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