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2014/08/07

| 08.07.14 | The flip side of fracking

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August 7, 2014
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Today's Top Stories

  1. National Grid wraps $6.5M in energy efficiency projects
  2. Leading solar states have more than just sunlight
  3. Compliance deadline bearing down on OGE
  4. Xcel needs funds for natural gas upgrades
  5. CA utility speeding up natural gas repairs


Also Noted: Equifax
Adobe Creative Cloud update; Nokia took a hard hit by blackmail 6 years ago; and much more...

Industry Voices: The flip side of fracking

Where do utilities really stand with customers?
Conventional wisdom might have us believe that electric and gas utilities are at the bottom of the customer satisfaction heap compared to other service providers. After all, for every power outage and loss of heat, gas or air conditioning issue, there is the potential for an outcry among ratepayers that can negatively impact satisfaction scores overnight -- or within hours for that matter. Article


PSEG, NYSERDA making solar accessible
PSEG Long Island, along with the New York State Energy Research and Development Authority (NYSERDA), have launched On-Bill Recovery and Smart Energy Loans, allowing all PSEG Long Island residential customers to apply for solar photovoltaic (PV) systems from local contractors through a program that provides the convenience of repaying the loan via the customer's PSEG Long Island bill. Article


Proximity is everything for NY hydro
The New York Power Authority (NYPA) has approved new allocations of low-cost hydropower to three firms in Western New York, which will support the creation of more than 80 jobs and more than $50 million in capital investments, in part, from business expansion in state or businesses relocating to the region from out of state. Article


California, Mexico partner to promote low carbon economy
California -- a pioneer in addressing climate change -- and Mexico have signed a Memorandum of Understanding (MOU) to cooperate on a range of environmental issues, from pricing carbon pollution to air quality to promoting clean vehicles. Article


News From Across the Energy Industry:
1. Farmers Electric Cooperative growing Iowa solar
2. Consumer viewpoints on sustainability
3. Gene research for better biofuels
More headlines...


This week's sponsor is A. Cullen & Associates, Inc.

76 charts illustrating nearly 30 Smart Grid hiring topics –
a must-have HR benchmarking tool!



Sponsor: FierceEnergy

FierceLive! Webinars

> Capitalizing on the digital transformation: Providing mobile value for customers and utilities - Now Available On-Demand
> IT and Marketing: Extreme Collaboration - Tuesday, August 26th / 2pm ET / 11am PT
> National Consumer Telecom and Utilities Exchange (NCTUE) - Wednesday, September 24th | 2pm ET / 11am PT

Marketplace

> Whitepaper: Download a FREE PREVIEW of the 2013 Smart Grid Hiring Trends report!

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Today's Top News

1. National Grid wraps $6.5M in energy efficiency projects


Working with the New York State Office of General Services (OGS) and the New York Power Authority (NYPA), National Grid has completed several energy efficiency projects totaling approximately $6.5 million.

Empire State Plaza, Albany, New York. Credit: Wikimedia Commons/Tim Schapker

The projects at Empire State Plaza and the W. Averell Harriman State Office Building Campus in Albany will result in more than $20 million in energy savings over the next 20 years. By partnering with NYPA and utilizing National Grid's rebate program, these state government facilities are getting closer to reaching the goals set forth by Governor Andrew Cuomo in Executive Order 88 as part of Build Smart NY. Executive Order 88 calls for an increase in energy efficiency in state government buildings by 20 percent by 2020.

NYPA oversees the implementation of energy efficiency projects from an initial energy audit through completion, and provides upfront financing -- recovering its costs by sharing in the savings on customers' energy bills.

"The Power Authority, as the administrator of the Build Smart NY program, is working hard to reduce energy use in state buildings all across the state," said Gil C. Quiniones, NYPA president and chief executive officer. "The energy-saving improvements completed at these three facilities will save taxpayers millions of dollars and protect the environment for generations to come."

The energy efficiency measures included the replacement of 196 older inefficient motors and the replacement of metal halide fixtures in Building 17 at the Harriman Campus. In addition, improvements were made to the system that supplies condenser water for the plaza summer cooling operation and free cooling during the winter months at the OGS river pumping station, as well as upgrades to the plaza chilled water plant cooling and control systems.

"Several energy efficiency projects were completed that included improved design and functionality at one of the largest chiller operations in the country," said Laura Poltynski, National Grid Upstate New York commercial energy efficiency manager. "We are able to give the state over $720,000 in rebates towards their goal to improve energy efficiency."

For more:
- see this report

Related Articles:
Electric, gas utilities integral to Build Smart NY
AESP recognizes outstanding energy-efficiency programs

Read more about: Energy Efficiency
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18 Categories. 18 Chances to Win. Apply Today!

Now accepting applications across 18 categories, the publishers of FierceEnergy & FierceSmartGrid are offering an unparalleled opportunity to have your product reviewed by a distinguished panel of executives from North American utilities. Applications due August 22. Apply Today!



2. Leading solar states have more than just sunlight


Solar growth across the nation has been strong, with New York setting a particularly impressive example -- 30 percent in 2013 -- according to a report conducted by Frontier Group for Environment New York Research & Policy Center. New York's progress on solar has helped fuel a tripling of solar energy nationwide between 2011 and 2013, growing statewide from 175 MW to 250 MW.

It is not the availability of sunlight that makes states solar leaders, but the degree to which state and local governments have created effective public policy to help capture the almost unlimited and clean energy from the sun, the report contends.

Solar in the United States increased more than 120-fold in the last 10 years, according to the report. As the solar industry grows, the cost for installation decreases, making it more accessible. The price of installed solar systems fell 60 percent between the beginning of 2011 and the end of 2013.

In the first quarter of 2014, solar energy accounted for 74 percent of all the new electric generation capacity installed in the United States. The 10 states with the most solar installed per capita drove 89 percent of the solar installed -- while representing only 26 percent of the population and 20 percent of the electricity consumption -- according to Frontier Group.

Several policies adopted by the top 10 solar states are encouraging adoption by homeowners and businesses. For example:

These states have strong net metering policies where consumers are compensated at the full retail rate for the excess electricity they supply to the grid.

Good interconnection policies reduce the time and inconvenience required for consumers to connect solar energy systems to the grid.

All 10 states have renewable electricity standards that set minimum requirements for the share of a utility's electricity that must come from renewable sources; eight states have solar carve-outs that set specific targets for solar or other forms of clean, distributed electricity.

Creative financing options such as third-party power purchase agreements property assessed clean energy (PACE) financing are made available.

For more:
- see the report

Related Article:
Solar reaching mainstream for utilities

Read more about: Solar power
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3. Compliance deadline bearing down on OGE


After being defeated in its challenge of the U.S. Environmental Protection Agency's (EPA) requirements for environmental compliance, Oklahoma Gas & Electric (OG&E) has exhausted its legal options for bringing its coal plants in line with federal environmental mandates and modernizing its natural gas units.

Muskogee Power Plant. Credit: Granger Meador

"In this case, we took exception to the methodology EPA was requiring for compliance. OG&E and the State of Oklahoma developed a much more cost-effective way to comply," OG&E Vice President of Public Affairs and Corporate Administration Paul Renfrow explained. "Our approach would have been easier on customers' pocketbooks, but EPA disagreed and we lost in the courts. We respect the process and now we are taking the necessary steps to be in compliance."

So OG&E has filed an application with the Oklahoma Corporation Commission seeking approval of a plan that calls for the addition of two pollution control devices, scrubbers, to the coal-fired units at the Sooner Power Plant, converting two coal-fired units at the Muskogee Power Plant to natural gas, and modernizing the natural gas units at the Mustang Power Plant.

According to Renfrow, these efforts accomplish four key objectives.

"First, they put the  ompany into compliance with the federal regulations. Second, they preserve fuel diversity in our generation portfolio, which is so important for reliability and cost control. Third, they allow us to maintain some flexibility to deal with the uncertainty around future developments, and most importantly, they allow us to meet our objectives at the lowest reasonable cost to our customers."

OG&E's plan to modernize the Mustang Power Plant calls for replacing existing natural gas steam units first installed in the late 1940s with new quick-start, natural gas-fired combustion turbines. The new turbines will better support both reliability and efforts to lower customer energy costs because they can be brought online in 10 minutes rather than the 10 hours it takes the current units. This makes the natural gas-fired combustion turbines well-suited to maximize the benefits of renewable energy and helps ensure the company's required generation reserve margins are met.

"The Mustang plant site has all of the necessary infrastructure, the workforce and the necessary environmental permits," said Renfrow. "It only makes sense to modernize this plant so it can provide several more decades of use rather than spending more money to locate the combustion turbines at a different site."

The deadline for OG&E to achieve environmental compliance is January 2019, at which time it must have fully implemented its plan or face enforcement actions. Renfrow says the deadline sounds further away than it is, and will be upon OG&E quickly -- especially considering all the work that still has to be done. He believes, however, that the company can meet the tight deadline, but says it "won't have any time to spare."

For more:
- read this article

Related Articles:
OG&E facing multiple lawsuits
Appeals court ruling could set coal precedent

Read more about: Oklahoma Gas and Electric
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4. Xcel needs funds for natural gas upgrades


Regulators are considering the approval of a new funding mechanism that will allow Xcel Energy to make natural gas pipeline system upgrades in 2015 -- which will improve safety and reliability, and allow Xcel to recover nearly $15 million from customers. Filed with the Minnesota Public Utilities Commission, this is the first request Xcel is making under a 2013 Minnesota law that authorizes a separate charge on customer bills to pay for important natural gas infrastructure improvements.

"In 2015, our investments will finance replacing part of a main natural gas supply line in the eastern Twin Cities metro area and fund improvements throughout our natural gas system in Minnesota," Dave Sparby, president and CEO of Northern States Power Co. -- Minnesota, an Xcel Energy company, explained. "We are proposing significant investments now, while natural gas prices are at historically low levels, which will moderate the impact on customers' bills."  

Under the proposal, a typical natural gas residential customer's monthly bill would increase by about $2, or 3.4 percent. If approved by the commission, the new charge would appear on customer bills beginning in January 2015.

Among the upgrades are projects that provide for the use of technology to inspect the overall condition of pipelines -- as well as replacement or repairs, if necessary -- and installation of remote-controlled or automatic valves.

Xcel has plans for significant investments in pipeline safety over the next 10 years to support compliance with new regulations.

For more:
- see this report

Read more about: Xcel
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5. CA utility speeding up natural gas repairs


By the end of 2014, Pacific Gas and Electric Company (PG&E) will have replaced all 2,243 miles of its cast iron gas distribution pipe, which can be prone to leaks, with new modern materials -- making PG&E one of the first utilities of comparable size and age to complete such an action. The utility, which already ranks in the nation's top 10 percent in maintaining a small number of minor leaks in its backlog, says it will also achieve a near-zero backlog by the end of 2014.

PG&E's car-mounted leak detection system, which is 1,000 times more sensitive than traditional equipment. Credit: PG&E

Efforts such as these are part of PG&E's comprehensive program to identify, fix and prevent natural gas leaks to enhance public safety.

As the operator of the second largest gas transmission and distribution system in the country, PG&E has made significant progress in accelerating leak repair and prevention across its 80,000-mile natural gas system. For example, by the end of 2013, PG&E achieved a 99 percent reduction of minor leaks -- from 12,500 to 150.

Addressing minor leaks in their backlogs are common challenges for utilities across the country, but by implementing the an "all of the above" approach to finding, fixing and preventing gas leaks, PG&E was able to make industry-leading progress.

"We are using all of the resources at our disposal to find and fix leaks on our gas system," said Nick Stavropoulos, executive vice president of PG&E's Gas Operations. "We're giving our crews state-of-the-art tools and technology, and enhancing the way leak survey and repair work is performed using a bundled methodology. This aggressive and proactive approach allows us to accelerate the repairs of even more minor, non-hazardous leaks that pose no threat to safety, but may contribute to global warming."

PG&E's leak detection program includes continuous surveys by foot, vehicle, air and water across a 70,000-square mile area in Central and Northern California.

The success of the leak detection program is driven by investments in the latest technologies, such as PG&E's state-of-art gas control center, which opened last year. Additionally, PG&E was the first utility in the country to test, pilot and deploy a car-mounted leak detection system 1,000 times more sensitive than traditional equipment -- providing the ability to identify leaks faster and more efficiently. The company is also using enhanced pipeline inspection technology, such as camera-equipped robots, and giving employees enhanced training and skills to help prevent leaks.

For more:
- visit this website

Related Article:
Google honing in on methane leaks

Read more about: natural gas
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Also Noted

This week's sponsor is Equifax.

Webinar: National Consumer Telecom and Utilities Exchange (NCTUE)
Wednesday, August 24th | 2pm ET / 11am PT

This must-attend Equifax webinar - led by the NCTUE board members Buddy Flake (SCANA), Leon Broughton (Citizens Energy Group) and Bob Romeo (AT&T) - dives deep into the mechanics of an industry specific data resource from the (NCTUE) that offers practical, relevant credit insight on more than 170 million consumers. Register today!


> Adobe updates Creative Cloud, adds mobile apps, hardware. Post (eWeek)
> BlackBerry strikes deal to offer Amazon apps on BB10. Post (The Guardian)
> Microsoft: NSA security fallout 'getting worse,' 'not blowing over'. Post (The Register)
> Facebook announces its open data-center switch. Post (Computerworld)
> At least 32,000 servers broadcast admin passwords in the clear, advisory warns. Post (Ars Technica)
> Intel unveils Xeon-FPGA hybrid cihp aimed at carriers, cloud service providers. Post (CRN)

And Finally… Nokia was blackmailed out of millions by hackers six years ago. URL. (Forbes)

 


Industry Voices

The flip side of fracking


By Fabien C. Robert

"The U.S. will never run out of oil and natural gas. Never." This was a statement attributed to Chris Faulkner in an article reported by FierceEnergy last month.

This is not the first time an oil and gas company CEO has spread such information. Yet, one could doubt the objectivity and purity of purpose behind those words. Of course human beings will never be able to extract all the oil and gas lying under the earth, but the question is: At what cost will the common man benefit?

Fracking has solved the delicate question of energy dependence -- for the time being -- but at what cost and for how long?

It would be more intellectually honest to look at the net energy: How much energy we need to invest in order to extract one unit of energy in return and how much pollution the extraction process generates.

"About 60 years ago, with oil, we could get something like 100 units of energy for one unit of energy invested; this ratio is now about 10 to one for classical extraction. It is not clear to me and I haven't seen any analysis, if we will get a one to one return for shale oil," the late Albert A. Bartlett, Ph.D. in Nuclear Physics from Harvard University and Professor Emeritus at the University of Colorado at Boulder, had said.

Stark warnings

Professor Bartlett had been warning against over population and resource limitation since 1969 when the population was only 3.7 billion, as recounted in his famous lecture on "exponential growth, population, and energy." The U.S. population has now reached 7.1 billion.

Fracking has solved the delicate question of energy dependence -- for the time being -- but at what cost and for how long?

Thousands of complaints have been reported regarding well water contamination around fracking sites, and air pollution is also a concern.

Couldn't we invest in more durable and eco-friendly solutions?

It takes maturity and courage to renounce short-term gains for the more valuable long-term benefits. European countries have largely chosen this path. Industry leaders should come to their senses and make rational decisions in the near future for the well-being of all.  

About the Author
Fabien C. Robert is Research Associate and Ph.d. student at Amrita University in Kerala, India.

Read more about: fracking
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News From Across the Energy Industry:
> NYSERDA launches solar database Post
> Lux: Natural gas better than biomass for district energy Post
> AEP, Columbia Gas promoting energy-efficient homes Post
> Mississippi Power settles with Sierra Club over Kemper plant Post
> Social media providing fracking ''facts'' Post
> National Grid hails new solar legislation Post
> SCE maintaining diversity in energy portfolio Post


Webinars


* Post listing: Click here.
* General ad info: Click here.

> Capitalizing on the digital transformation: Providing mobile value for customers and utilities - Now Available On-Demand

This webinar will address how utilities can provide mobile value to their customers while increasing customer engagement and trust in the utility brand. Register to watch now!

> IT and Marketing: Extreme Collaboration - Tuesday, August 26th / 2pm ET / 11am PT

Media outlets love to focus on the tension between IT and marketing. But if it's a war, both sides lose. Instead, CIOs have to partner with CMOs to help deliver on aggressive business goals in an ever-changing landscape. Register Today!

> National Consumer Telecom and Utilities Exchange (NCTUE) - Wednesday, September 24th | 2pm ET / 11am PT

This must-attend Equifax webinar - led by the NCTUE board members Buddy Flake (SCANA), Leon Broughton (Citizens Energy Group) and Bob Romeo (AT&T) - dives deep into the mechanics of an industry specific data resource from the (NCTUE) that offers practical, relevant credit insight on more than 170 million consumers. Plus you'll hear exclusive use cases based from real utility organizations that have leveraged this data to solve common business issues, update and realign their business processes and reap substantial financial benefits. Reserve your spot today!



Marketplace


* Post listing: Click here.
* General ad info: Click here.

> Whitepaper: Download a FREE PREVIEW of the 2013 Smart Grid Hiring Trends report!

Featuring 76 unique tables illustrating nearly 30 Smart Grid hiring topics, this original research offers human resources professionals and hiring executives unique insight into emerging Smart Grid human resources challenges, solutions and trends. Click here to download the executive summary.

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