An Ignoble Experiment

2. National Grid on the hook to employees for nearly $5M

Duke Energy has issued a request for proposals seeking options to generate electricity to replace the nuclear generators at the Crystal River plant -- and is under fire for it. Duke Energy operates two other coal-fired generators at the plant and has told state regulators it plans to phase out these units sometime before 2020 because they are too expensive to operate and require substantial upgrades.

"Duke Energy has taken a strong step in planning to phase out coal burning units at its Crystal River Power Plant before 2020, but the company's new request for proposals to replace the power is a step in the wrong direction," Julia Hathaway, Florida's Sierra Club Beyond Coal representative said in a statement.

The Sierra Club contends that Duke Energy relies too heavily on natural gas power for Florida, and as with coal, burning natural gas for power sends Florida's energy dollars out of state and is calling on Duke Energy to replace the Crystal River coal units with a clean source like solar as soon as possible.

"Florida also has significant potential to save money and meet energy demand through large-scale energy savings programs. In other states, Duke Energy is investing more in energy savings too," Hathaway said in a statement. "There's a pattern here: Duke Energy is bringing more clean energy solutions online in other states and leaving Florida behind. It's time to move beyond business as usual and invest in Florida in a positive way that supports our families and economy."

For more:
- see the request for proposal

Read more about: Sierra Club
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By Barbara Vergetis Lundin

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3. TX consumer complaints higher than before electric competition

An investigation into employee complaints that National Grid failed to properly pay its New York workers as required under state and federal law in the months after Hurricane Sandy has been closed and a settlement reached. In addition to repaying previously unpaid wages, National Grid will pay another $750 to every hourly employee who worked for the company between November 1, 2012, and March 31, 2013. In total, more than $4.8 million will go to 6,500 employees.

Utility workers in New York following Hurricane Sandy. Credit: Thomas Good/Wikimedia Commons

The agreement requires National Grid to provide an accounting to employees summarizing unpaid and underpaid wages, and to explain the date and manner in which payment problems have been fixed. In addition, National Grid must provide the Attorney General's Office with a report summarizing causes of systemic payroll failures, a description of steps taken to remedy the problems, a summary of lessons learned and a description of measures the utility will take to prevent future issues.

According to National Grid, its failure to properly pay employees was the result of the conversion to a new computer system, which involved changes to its time-keeping and payroll systems. The system was scheduled to go live on November 5, 2012. Despite the forecasts of a hurricane headed for the East Coast, National Grid failed to delay this company-wide computer conversion, causing massive disruption to National Grid's pay and timekeeping system, including nonpayment of wages, nonpayment of overtime and inaccurate wage statements to employees.

In addition to the Attorney General's investigation, four private lawsuits were filed in New York State. Any funds paid toward settlement of those lawsuits will be credited toward National Grid's obligations under the Attorney General's settlement.

For more:
- see this article

Read more about: National Grid, Hurricane Sandy
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By Barbara Vergetis Lundin

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4. PUC approves Minnesota Power resource and emissions compliance plans

For the fourth year in a row, Texas electric consumer complaints have fallen, putting them at the lowest point since the state's electric deregulation law took effect, according to an analysis of regulatory data by the Texas Coalition for Affordable Power (TCAP). However, the number of complaints is still higher than prior to electric competition -- 7,129 in fiscal year 2013.

Credit: TCAP

Electricity-related complaints filed with the Texas Public Utility Commission have gone down nearly 17 percent from the 2012 fiscal year, and are less than half the number from a peak recorded in 2009. But despite the progress, Texas electricity consumers still file many more complaints on an annual average basis than they did prior to retail electric deregulation 11 years ago, according to the research.

"The decline in customer complaints comes as good news for Texas consumers, and may suggest that the market has matured since the inception of electric deregulation in 2002," said Dr. Randy Moravec, TCAP executive director. "However, Texans still file many more complaints today than they filed prior to electric competition. The data show continuing dissatisfaction relating to billing and customer service."

The decline follows a downward trend in Texas electricity prices, which is linked to changes in the commodity price of natural gas.

During the four years prior to deregulation, Texans filed significantly fewer complaints (1,316); after deregulation, 11,111 were filed, according to TCAP. Although population growth and the increased use of the Internet to facilitate the complaint process can explain some of the increase, it is unlikely that those factors alone account for the dramatic differences, TCAP says.

For more:
- see this analysis

By Barbara Vergetis Lundin

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5. PPL to sell hydro assets for $900M

The Minnesota Public Utilities Commission has approved Minnesota Power's 2013 resource plan for meeting the electric energy needs of its customers, which includes retrofitting the company's coal generation fleet to reduce emissions and based on its EnergyForward strategy.

Minnesota Power's resource plan recommended specific actions on its coal generation fleet to comply with state and federal environmental regulations, the addition of new renewable resources in the short term and a significant natural gas addition early in the next decade to further diversify its power supply and reduce carbon emissions.

The plan is based on the company's EnergyForward resource strategy -- a roadmap to providing customers with reliable, cost-effective and environmentally compliant power and transitioning the company's energy supply mix toward one-third renewables, one-third coal and one-third natural gas, as well as adding and other market resources long term through hydro and wind energy, coal-fired energy reductions and a post-2020 natural gas generation resource.

As part of the plan, Minnesota Power will add 200 MW of wind energy to its system, which the company is proposing to meet through its recently-announced Bison 4 project. The company is on target to delivery 250 MW of hydropower under contract from Manitoba Hydro by 2020, with Minnesota Power planning to deliver this energy on its proposed 500-kilovolt Great Northern Transmission Line. The plan also includes reduction of coal-fired generation in its fleet by 185 MW through the conversion of Laskin Energy Center to a natural gas peaking station and the retirement of one of three units at Taconite Harbor Energy Center.

In a separate action, the PUC also approved Minnesota Power's proposal to invest $350 million in additional environmental control technology at Boswell Unit 4, which would reduce mercury emissions by 90 percent and limit other emissions, and is necessary to comply with the Minnesota Mercury Emission Reduction Act and the EPA Mercury Air Toxics Standard.

For more:
- see this report

By Barbara Vergetis Lundin

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