(Bloomberg) — Vistra Corp., one of the largest power generators in Texas, said it warned state agencies days before cascading blackouts plunged millions into darkness that internal forecasts showed electricity demand was expected to exceed supply.
Despite the warning, “the coordination and planning by authorities across the broader energy sector were seemingly disproportionate to the severity of the situation,” Vistra said in an emailed statement late Sunday. The company didn’t identify which state entities it contacted. The Electric Reliability Council of Texas is the state’s grid operator, while the Texas Public Utility Commission regulates power generators.
Ercot said in a statement its “operating notices incentived all available generation to serve customers” and didn’t immediately comment on the Vistra letter. Andrew Barlow, an official with the PUC, said he wasn’t privy to any correspondence between the agency and Vistra and referred the matter to Ercot.
“Days ahead of this event, Vistra and others forecasted insufficient generation would be available, and we began winter emergency preparations,” the statement said. “The warning signs were there, but the public was unaware of the gravity of the situation, which led to people being unable to respond and make the necessary adjustments for their families.”
Vistra shares rose 1.1% before the start of regular trading Monday in New York.
Read more: How Extreme Cold Turned Into a U.S. Energy Crisis: QuickTake
At its peak, more than 4 million Texans were without power over several days of unprecedented cold. Dozens have perished in the wake of what has now become known as the largest forced power outage in U.S. history. Even when electricity was restored as temperatures rose, millions remained without safe drinking water after power outages hit treatment plants and water pumps used to pressurize lines.
Record-setting cold and snowfall in Texas has in turn caused dramatic power outages and rolling blackouts across the state. Texans stuck in powered-off apartments with no way to warm themselves have fled to “warming centers.” A few have died from carbon monoxide poisoning trying to warm themselves with a car.
The mess with the Texas power grid is only the beginning. In the years to come, American infrastructure will fail more and more often, as America becomes less capable of maintaining the core elements of a First World country.
Why would America become less First World? That’s a simple question to answer: Because America is making itself less First World.
Conservatives have been eager to blame Texas’s problems on increased use of wind power. It certainly played a role. Turbines froze in the cold and the focus on expanding renewable energy sources over conventional gas and oil left the state less able to expand energy production in response to a surge.
But solar energy is far from the only culprit. Another factor was simply that Texas infrastructure could not handle an outlier weather event.
While ice has forced some turbines to shut down just as a brutal cold wave drives record electricity demand, that’s been the least significant factor in the blackouts, according to Dan Woodfin, a senior director for the Electric Reliability Council of Texas, which operates the state’s power grid.
The main factors: Frozen instruments at natural gas, coal and even nuclear facilities, as well as limited supplies of natural gas, he said. “Natural gas pressure” in particular is one reason power is coming back slower than expected Tuesday, added Woodfin.
“We’ve had some issues with pretty much every kind of generating capacity in the course of this multi-day event,” he said. [Bloomberg]
In other words, faced with a black swan event, Texas’s power generation system imploded. It faced a major challenge, and wasn’t up to it. The cost is several lives and billions of dollars in economic damage.
Texas’s struggles are only a standout example of a problem that has been building up for years. Last summer, California suffered rolling blackouts because electrical providers were unprepared for a surge in demand during a heat wave. But the problem is greater than that. America’s electrical reliability has been declining, almost everywhere, for decades. The United States of America now trails competing nations, often dramatically.
In Japan, the average home sees only 4 minutes of power outages per year. In the American Midwest, the figure is 92 minutes per year. In the Northeast, it’s 214 minutes; all those figures cover only regular outages and not those caused by extreme weather or fires.
A 2012 report from the Congressional Research Service compared average annual minutes lost to power outages in the U.S. with seven industrialized European countries. The U.S. finished a distant last (on the chart, SAIDI measures minutes lost to power outages per year):
Sometimes, when America trails in an important measure of productivity or effectiveness, it has simply failed to keep up with the advances of other countries. But power supply is different. Forty years ago, America had no trouble keeping the lights on. It has steadily gotten worse at this basic function. A recent Popular Science article laid out the problem:
According to an analysis by Climate Central, major outages (affecting more than 50,000 homes or businesses) grew ten times more common from the mid-1980s to 2012. From 2003 to 2012, weather-related outages doubled. In a 2017 report, the American Society of Civil Engineers reported that there were 3,571 total outages in 2015, lasting 49 minutes on average. The U.S. Energy Administration reports that in 2016, the average utility customer had 1.3 power interruptions, and their total blackout time averaged four hours. [Popular Science]
What causes this? One popular answer is simply aging infrastructure. America was one of the first countries to build a modern power grid, so infrastructure in many areas is very old and now fails with increasing frequency.
Of course, that naturally raises the question. If infrastructure is aging, why isn’t it being updated or replaced?
That is a political question, with many answers. One reason is that maintaining existing infrastructure may be the single least-sexy use of public money, and thus is one of the first things cut back during budget crunches. Another factor, though, is America’s warped public spending. For decades, politicians have found it easy to build up a political base by upping the pay of public employees. The result is that, while enjoying rock-solid job security, public employees at all levels outearn private sector workers. Millions of current and former workers are also the beneficiaries of ridiculously generous pension plans which are routinely underfunded as well. When these pensions clash with basic infrastructure maintenance, the pensions win:
In real dollars, state governments’ investments in infrastructure dropped by 3.2 percent from 2007 to 2017, with ups and downs along the way. But infrastructure spending relative to gross domestic product (GDP) dropped almost every year between a 2009 peak and 2017, following more than two decades of stability. In fact, 2017 marked the lowest level of funding as a share of the economy in more than half a century. States’ declining infrastructure investment relative to GDP is a sign that spending on fixed assets has not kept pace with economic growth. [Pew Trusts]
But infrastructure isn’t just about allocating enough funding. It’s about people. The quality of a country’s broad-based infrastructure is heavily linked to the skills of its common blue-collar workers and local bureaucrats. When these groups are more capable, everything works a little bit better in a country. They cut fewer corners when building new infrastructure, and are more diligent in maintaining it. They work more diligently and efficiently. They are more likely to use the right materials. They avoid preventable errors.
For an example of a completely avoidable infrastructure calamity, look at Flint, Michigan. The city’s famous water crisis occurred when the city switched from Detroit’s water system to drawing water from the Flint River. The river water was perfectly safe to drink, but left untreated it corroded the protective lining of the city’s pipes, eventually allowing lead to leech into the water. And tragically, avoiding that problem was easy.
Cities such as Detroit add orthophosphate to their water as part of their corrosion control plans because the compound encourages the formation of lead phosphates, which are largely insoluble and can add to the pipes’ passivation layer. By press time, C&EN was unable to get a comment from Flint city officials about why a corrosion inhibitor wasn’t added to the river water. The entire Flint water crisis could have been avoided if the city had just added orthophosphate, Edwards says. [Chemical and Engineering News]
Adding orthophosphate would have cost Flint only a few thousand dollars a year. Instead, a $600 million calamity happened.
Another red flag for America’s infrastructure future is the Washington, D.C. Metro. The Metro has been known for years as one of the world’s worst, plagued with delays, safety issues, cost overruns, and poor maintenance.
By the early 2000s, workers began to notice a growing disregard for safety throughout Metro. “We’d report [safety violations] and then nothing would be done,” says Sherman Johnson, a WMATA mechanic from 1983 to 2010. “The [work order] would be closed, indicating that the problem had been corrected, but then you’d go and check and most times no one had even been there, let alone fixed anything.” Meanwhile, management focused on making sure employees wore their uniforms correctly and used Metro-issued microwaves to cook food instead of their own.
…
This wasn’t the only troubling thing the feds found in Metro’s plumbing. The FTA discovered that train drivers regularly relieved themselves on the tracks because supervisors, due to inadequate training, weren’t comfortable taking the wheel to give them bathroom breaks. [Washingtonian]
How did the Metro get so horrid? In large part, because of wretched hiring. A 2012 report in The Washington Times revealed that Metro hiring was starkly racialized, with applicants clearly being hired or rejected based on skin color rather than demonstrated job aptitude:
Ninety-seven percent of the bus and train operators at the Washington Metropolitan Area Transit Authority are black, with only six white women out of more than 3,000 drivers … It is a culture in which a white male engineer near completion of a Ph.D. was passed over for a management position in favor of a black man who was barely literate, multiple staffers said. … Dozens said white workers, especially women, were openly subject to racist and sexist remarks without repercussion — behavior that drove many targets to seek transfers or leave the agency. All said they have been inexplicably passed over hundreds of times for promotions to positions such as station manager while others with less seniority passed them by. [Washington Times]
Why do Metro’s particular failures matter? Because its rotten ethos is spreading across the country. While Metro is an outlier case, where a major public agency became a racial racket, countless agencies are adopting “diversity” guidelines that encourage choosing employees and contractors based on skin color rather than competence alone. When ability and effectiveness ceases to be the sole consideration for jobs, effectiveness suffers. That may not matter much for writers at The New York Times, where the only victims of affirmative action (besides whose passed over for jobs) are the paper’s readers. But for the basic buildings blocks of civilized life, the consequences can be severe.
There are other reasons to be worried about America’s future supply of builders, technicians, and repairmen.
For decades, America’s ruling elite have deliberately cultivated an underclass via low-skill immigration, both legal and illegal. While they were brought here as workers, these immigrants are people as well: Their children are the future human capital stock of the United States. When America admits an immigrant with fewer skills than the average American, they are admitting a person whose children will, on average, grow up to have fewer skills than most American workers. They will certainly have fewer skills than the children of the highly-skilled immigrants America has chosen not to prioritize.
The Trump Administration sought to change this, promoting a plan to focus immigration on highly-skilled workers who would have more highly-skilled children. Congress refused to pass that plan. Now, the Biden administration is mulling amnesty for low-skilled illegal immigrants, and is pledging to octuple arrivals of (mostly low-skill) refugees. If Biden succeeds, he will create an America where the population is less skilled, and less able to maintain the basic trappings of modern life. And that may mean a country where the lights go out a lot more often.
Industry players in California are planning to create a 550 MW distributed clean power plant, based off a network of hundreds of thousands of California homes and the millions of smart devices within. The power plant will serve both as a model for the clean energy grid of the future, as well as a way to reduce the risk of blackouts next summer, according to OhmConnect CEO Cisco DeVries.
Meanwhile, Southern California Edison has signed contracts for an additional 590 MW of battery energy storage in a bid to boost electric system reliability, bringing the amount of battery storage it has procured to more than 2 GW, the utility announced Monday.
“It’s paramount that we achieve full reliability,” California Energy Commission Chair David Hochschild said at a press conference announcing the virtual power plant Monday, especially given the state’s push to electrify vehicles, rails and buildings, now that 40 cities in the state have adopted some form of an electrification preference or mandate for new construction.
Learn why investments in renewable energy skyrocketed in 2020, and are continuing to grow.Learn more
Dive Insight:
The focus on bolstering grid reliability in California comes in light of the possibility of capacity shortfalls over the next few years, as well as rolling blackouts that affected the state this August during a record-breaking heatwave.
The state is taking a number of actions to promote reliability, Hochschild said, including a tenfold increase in the amount of energy storage going online next year, new efficiency and load management standards and procuring more clean energy resources.
“There’s not one silver bullet here — it’s really silver buckshot,” Hochschild said, adding that the planned distributed clean power plant is an important piece of that.
SCE’s storage procurements are also part of a broader reliability solution.
SCE kicked off a bid for system reliability resources last year following a California Public Utilities Commission (CPUC) decision requiring the utility to procure nearly 1.2 GW of capacity that could come online between 2021 and 2023. The utility’s own analysis has indicated that the state needs to add 30 GW of utility-scale storage and 10 GW of distributed storage to meet its carbon goals.
Earlier this year, SCE announced plans to procure a package of battery resources totaling 770 MW/3,080 MWh, as part of that effort to address potential capacity shortfalls in the state, especially as several gas plants are slated to retire over the next few years.
The new slate of contracts includes three utility-scale lithium-ion battery projects, totaling 585 MW as well as a 5 MW demand response project that will draw energy from customer-owned storage resources.
“Bringing more utility-scale battery storage resources online will improve the reliability of the grid and further the integration of renewable generation resources, like wind and solar, into the grid,” said William Walsh, vice president of energy procurement and management at SCE, in a press release.
All the projects are subject to CPUC approval and are scheduled to come online by August 2022 and 2023.
The 550 MW distributed power plant, meanwhile, is being developed by Sidewalk Infrastructure Partners along with OhmConnect, and is slated to be the largest distributed clean power plant in North America. The plant could provide 5 GWh of energy conservation at scale, the equivalent of not burning 3.8 million pounds of coal, the companies say.
Following the August blackouts, California regulators identified demand response measures as an important tool to prevent similar outages in the future; between Aug. 13 and Aug. 20, OhmConnect was able to reduce energy usage by nearly one GWh, and compensated customers $1 million to do so.
Although federal and state policies make it clear that a reduction in a kWh is the same as the production of a kWh and should be treated the same in the market, it’s been hard to translate that into a utility-scale, reliable format, DeVries said at the press conference.
And OhmConnect doesn’t think this is just a California phenomenon — they’re planning to do some work in Texas next year, and eventually see how the technology can be spread across the country, especially where more renewables are coming online and grid operators are facing the challenges of intermittency and changing weather.
EMERGENCY – ALERT We WILL Soon Be Plunged into Darkness the Power Grid is Under Attack!Black Sky Event – Emergency All-Sector Response Transnational Hazard “EXERCISE”
The Grid is the largest machine in the world,Did You Know That? THE GRID HAS BEEN “INTENTIONALLY” ALLOWED TO COLLAPSE
and NOW CLIMATE CHANGE
(aka The Use of Weather Control Technologies)We WILL ALL Experience Prolonged Power Outages
DUE TO MASSIVE WEATHER CREATED DAMAGE
There will be NO ACCESS to Electricity, Water and Gas
WAR On The GRID Will Continue NO Matter Who Wins The Election. We are Only ONE Grid Crisis Away from the MOST Devastating Crisis Our Country Has Ever Faced. The U.S. Federal Energy Regulatory Commission (FERC) and the National Academy of Science AGREED: America’so verloaded power grid operates with dangerously few spare transformers – antique transformers that are scarce and hard to get. Without Power – Virtually Every Modern Convenience Goes Away
WARNINGWATER and FOOD will run out.
People will turn to looting, robbing and stealing – as conditions escalate bottled water and food will not be
available . . .
We can Only Survive a few days without water – as people get desperate they will likely start drinking from
unfiltered, dirty water sources.
Then comes the inevitable “mass outbreaks” of water-borne sickness and disease. Please get to Pure Clean and a Renewable Water Source – NOW, while you still are able to!Go to www.PrimaryWater.org
The video below is VERY critical and discloses the “Scenario Plan” to take down The POWER GRID – WORLDWIDE . . .This is MOST VITAL . .
We will soon be Plunged into Darkness – this has ALREADY started.
Our Electric Grid is a Weapon and will be used to hold us hostage, force relocations due to peoples inability to access electricity and water on their properties. The health departments will identify and red tag (deem uninhabitable) properties that do not have electricity or water as unhealthy and unsafe for occupancy. The health orders WILL force those people occupying unsafe properties to relocate where there is potable water or reused (sewer to tap water) distributed from wastewater treatment plants.
IMAGINE Being Without Electricity For An Extended Period of Time . . .OR Being Without Electricity Because You Have “Used Up Your Quota’?Most People Are NOT Aware That The Power Grid is Aging and VULNERABLE.FEW KNOW THE REAL STORY OF HOW THE GRID IS GOING TO BE USED TO HOLD COUNTRIES HOSTAGE – In the not to distant future.The video will disclose th methods that the power grid WILL be attacked.The Longer the Power Stays OFF – The Weaker and Weaker Societal Order BecomesYOU MUST BE PREPARED –
YOUR LIVES WILL DEPEND ON WHAT YOU DO TODAY,
RIGHT NOW, TO PREPARE.
Plunged into Darkness – a PLANPower OFF – Plunged into Darkness – a PLAN
Royal Society of Arts,
London / Tel Aviv University, Tel Aviv
Coordinated Black Sky Resilience:
“Securing the Meta-Grid”
Assessing Progress; Considering (Essential) Next Steps
Today’s communities
are sustained by unprecedented technology, and by the all-sector
hyper-connectivity it has enabled:
By the “meta-grid,”
which has transformed our world.
However, this new
reality is not yet matched by the coordinated all-sector resilience essential
for our communities to survive a complex catastrophe.
Next Summit
EIS Summit XI Bicontinental
Postponed The
Eleventh Annual World Summit of Infrastructure Security, will be postponed
until Summer 2021 due to travel restrictions related to the COVID-19 outbreak.
Summer, 2021Royal Society of Arts,
London / Tel Aviv University, Tel Aviv
EPRO SECTOR is providing a forum for cross sector coordination addressing Black Sky Hazards. The government agencies, companies and other organizations listed below have become important contributors to EPRO SECTOR Executive Committee, and the cross sector, Black Sky coordination and planning process it hosts.
Facilitated tabletop exercises addressing Black Sky Hazards to critical infrastructures.
The EARTH EX® Black Sky Hazard Simulation Project (the Black Sky Project) is a moderated exercise series – a facilitated environment to consider impact and recovery from severe Black Sky Hazards – addressing national power grids and other critical infrastructures. The project exercises resilience and response recommendations from EPRO and other government and corporate planning initiatives, serving both as a “laboratory” – validating, refining and supplementing recommendations; and as an educational tool – a resource to help utilities and their partners with communication, training andconsensus building.
In an actual crisis scenario, utility and emergency agency managers who live through the crisis often document their takeaway “lessons-learned,” to guide improved resilience and response plans for future, similar crises. Black Sky Project exercises make possible a similar learning process, without living through an actual crisis. These adaptable, multi-sector or sector-unique facilitated tabletop exercises are designed to develop “lessons-imagined” for resilience and emergency response strategies addressing Black Sky Hazard scenarios.
Andy
Tang, Vice President – Energy Storage and Optimization, Wärtsilä
Published
Sept.
9, 2020
When all is said and done, we may look back on 2020 as the key
inflection point in the global transition to a more flexible, resilient, and
renewable grid. In
August, I wrote in Utility Dive how the European
experience during the pandemic is demonstrating how high renewable penetration,
flexible electricity markets will function in the not too distant future.
The recent experience in California offers another
glimpse into the emerging challenges facing utilities and grid operators as
they work to keep the lights on with an increasingly climate-strained
electric grid.
You are no doubt familiar with California’s recent
troubles. But the synopsis is this: a heatwave that saw temperatures climb
into triple digits had two compounding effects on the power grid, resulting in
the first rolling blackouts in California since the 2001 energy crisis. The
first was on demand. As temperatures rose, Californians cranked up the air
conditioning, increasing demand for power. But the extreme temperatures had an
impact on the ability of gas-fired generators to reliably deliver power, with
several even shutting down just as demand was peaking. Combined with the
evening decline of solar generated power, the California Independent System
Operator president called
this a “perfect storm” grid event.
What does this experience portend for the future of
a grid increasingly threatened by extreme weather events, such as heatwaves,
wildfires, hurricanes and more?
Microgrids – the ability to isolate and maintain
reliable power supply to critical load centers – are a potential solution to
many of the safety and reliability challenges facing utilities today. The
wildfire-necessitated public power shutoffs in PG&E’s service territory in
recent years offer an interesting possibility. By cutting power on high-risk
distribution and transmission lines, anything downstream will lose power. With
a battery-storage enabled microgrid, critical load pockets such as hospitals
would isolate from the grid. Now disconnected from the grid, that isolated
system would then form its own grid, managing frequency and voltage.
While the microgrid concept is not new, it has
proven a challenge to materialize in the real world. This is because the energy storage
technology required to form microgrids add complexity in the operation, optimization
and orchestration of grid assets that does not exist with traditional
centralized assets.
At Wärtsilä, our GEMS energy management software
platform optimizes the performance of individual energy storage and grid
integrated assets.
But from the beginning, we’ve always seen our platform as more than a single
power plant controller. We developed our software from the ground up to be
cloud based where a single power plant or storage asset would act as a single
node on a network with multiple nodes. Batteries add significant value to
grid operators, but they also add complexity. A network consisting of assets
from different technology providers will have different command and operation
protocols. Batteries require much more active management than a traditional
utility asset. Temperatures must be monitored to prevent thermal runaway. State
of charge must be constantly managed to ensure long-term safe operation.
Utilities already manage hundreds of thousands of data points. Managing the
operation of different battery technologies, with varying thresholds for safety
and discharge levels, is simply unrealistic.
We saw that as utilities added these new
distributed storage assets that there was a need for a control room tool that
could orchestrate these resources in a technology-agnostic way. This was the genesis of
our GEMS Fleet
Director platform. Fleet Director provides centralized, real-time
visibility and control into a global fleet of power plants. It is a cloud-based
platform that allows for secure monitoring of equipment, operation history, and
alarms from the fleet, power plant, and device level. Combining power plant
data aggregation, weather forecasts, region specific market data, renewable and
load forecasting, Fleet Director brings unparalleled intelligence to the
operation of utility assets.
Utilities have found
particular value in Fleet Director’s ability to seamlessly take
energy storage assets from grid control to microgrid control. That level of
control has proven to be the missing piece of the puzzle in making microgrids
truly viable. Having the capability to keep assets on the grid during normal
operations and isolate and manage critical load at the local level during high
risk events gives grid operators a level of flexibility and resiliency
previously unavailable.
With the control that Fleet Director offers,
multiple distributed storage systems can bond together and act as one resource.
This is the future that my colleagues at Wärtsilä are working toward for
California and beyond as more storage is added to the grid: a flexible,
resilient, and distributed fleet of assets that utilities can isolate and
safely operate during high-risk weather or grid events while maintaining
service to the most critical load.
What do
regulators want most from grid modernization proposals? A compelling business
case
The following is a contributed article
by Abigail Anthony, a commissioner with the Rhode Island Public Utilities
Commission.
Some utilities are seeking regulators’ preapproval
of massive grid modernization projects, including advanced metering
functionality. Near-term preapproval to invest in broad grid-modernization
projects will not occur unless utilities focus on developing — jurisdiction by
jurisdiction — the most critical requirement for regulatory preapproval: a
compelling business case.
Regulators are not typically the entity making
investment decisions. Traditionally, utility executives make investment
decisions. Later, regulators allow cost recovery in rates if investments can be
shown to be prudent and used and useful (among other requirements). This system
provides essential ratepayer protection, but the risk of disallowance can
render utilities reluctant to make capital-intensive investments.
Due to the nature of grid modernization investments
— expensive, hard-to-quantify benefits, rapidly changing technology,
complicated in function — utilities are understandably reluctant to take on the
burden of proof in an after-the-fact review that these investments were prudent
and are used and useful. By asking for some form of pre-authorization,
utilities are shifting the risk of their investment decisions away from
shareholders and onto regulators, and ultimately, the ratepayers.
Regulators should, at a minimum, review these
requests like prudent potential business investors, not like innovators.
High
expectations
There is broad enthusiasm (and high expectations)
for grid modernization and its potential to deliver a more flexible, reliable,
resilient, secure and sustainable electric system. Observing all this
enthusiasm, utilities might think that regulatory approval of grid
modernization investments would come easily. Meanwhile, stakeholders may
be frustrated by regulatory processes and principles they perceive as
unsuitable and standing in the way of an advanced electric grid that will help
achieve our most important policy goals.
As a consumer, I’m excited about the potential of
grid modernization and frustrated by how difficult it is to advance. As a regulator,
I am steadfast in what I need to conduct my duty.
Enthusiasm and frustrations will not reduce the
need for the evidence regulators require before approving billions of dollars
in investments to be recovered in monopoly rates. Utility
regulators cannot be sold on visionary rhetoric that is better suited for other
forums. Regulators need what any prudent investor needs: a clear, complete and
well-evidenced business case.
Here are the key components of a utility’s business
case to its regulators: need, value and accountability.
Utilities must establish that there is or will be
an unmet need for the investment. Will the investment solve a power system
problem, address a statutory requirement, or meet customer demands? The
business case should describe the functionalities the utility seeks, the
options considered, and justify the preferred solution. The centerpiece of
this case should be a clear and reasoned rejection of the “do
nothing” scenario.
When faced with a request for preapproval,
regulators will be keenly aware they are making an investment decision with
someone else’s money and resources. If the business case leaves regulators
believing that doing nothing is a viable and prudent decision, utilities and
stakeholders should expect many regulators to choose that path.
Demonstrating
value
To demonstrate the value of the investment, the
business case should provide what the regulators consider a full and
appropriate benefit-cost analysis.
The surest way to convince me an investment has
value is to provide quantitative evidence that the proposed investment will
reduce the cost of the power system and save customers money on their electric
bills. My jurisdiction also considers benefits and costs outside the power
system, such as the societal costs of greenhouse gas emissions. These benefits
and costs are important to consider, but they are only part of demonstrating
value, which is only part of a business case.
Utilities and stakeholders should not expect that
projects will be approved primarily or solely on the strength of societal
benefits. If the value of an investment is predicated on societal benefits,
utilities may require a stronger needs case to gain regulators’ approval.
Otherwise, if an investment provides no power system value and meets no power
system need, of what use is it to ratepayers?
Importantly, the business case should explain what
is within the utility’s control and where the utility can and cannot be held
accountable. A good business case should present transparent and meaningful accountability
for the success of what is within the utility’s control. If regulators are
going to step in the shoes of the investor, preapprove investments, or relax
post-investment reviews, there must be an equal trade-off with predetermining
the responsibility for certain outcomes and the consequence if these outcomes
are not provided.
In fairness to ratepayers, the model of
preapproving utility investments should come with preapproval of firm,
meaningful accountability. Here is where there is work for stakeholders; rather
than aid the utility in selling grid modernization to regulators, stakeholders
should independently make sure the utility’s plan will meet their expectations
on a reasonable timeline. Otherwise, ratepayers may not get what they paid for.
Grid modernization has the potential to create a
more reliable and sustainable power system, and it carries the risk that
customers are left paying for a gold-plated system that doesn’t deliver on its
promises. The
stakes are too high for regulators to take bets on grid modernization; a
business case should eliminate concern that a vote to preapprove an investment
plan is a gamble.
The bottom line is that regulators should not let
the utility off the hook to demonstrate that their investment plan is prudent
and investments will be used and useful. Just as importantly, if the recovery
mechanism shifts investment risks from the utility to the ratepayers,
regulators should hold the utility accountable to the promises of a modern
grid. A good business case will demonstrate these requirements to regulators.
Sonoma Clean Power offers Clean Energy Solutions at high
prices through the participation in harvesting/fracking the Geothermal energy a
Plant that PG&E and the Department of Energy over see, in Northern
California.. This plant causes daily earthquakes, along with acid rain and
midst. The toxins emitted into humans and animals is excreted in the
urine and causes concrete and rebar to degrade in wastewater treatment plants.
Just imagine what this corrosion is doing
to buildings, homes, bridges, plumbing, water systems, and more.
Flex Alert for California is in Effect Dear Community, Due to the extreme heat storm, Sonoma and Mendocino Counties are being called on to again help California avoid rotating power outages this holiday weekend. We ask you to please help the grid operators at CAISO by conserving energy. For today through Labor Day: Before 3 p.m., please: Pre-cool your houseDo laundryRun the dishwasherCharge your electric vehicleCharge laptops and phonesSet pool pumps to run in the early morning and late at night Between 3 p.m. and 9 p.m., please: Set air conditioning to 78 degrees or higher, if health permitsAvoid using major appliancesTurn off all unnecessary lightsUnplug devices or turn off power stripsClose blinds and drapesLimit time the refrigerator is open SCP is also monitoring weather forecasts, and a high wind event may occur between Monday night and Wednesday night, creating a risk that PG&E may call a Public Safety Power Shutoff. Please check pge.com/psps on Sunday and Monday to learn more, as we get closer. Finally, in these difficult times, please help us get these important messages out to your friends and neighbors so we can all prepare and be safe. Thank you, Chief Executive Officer Contact us SCP is here to help. If you have any questions or comments, you can always reach us by calling 1 (855) 202-2139 8:00 AM to 5:00 PM PST, Monday through Friday, or emailing us at info@sonomacleanpower.org. Email Us Sonoma Clean Power 50 Santa Rosa Ave., 5th Floor Santa Rosa, CA 95404 You are receiving this email because you are subscribed to our “Announcements” list. You can manage your preferences below. Tweet Share Forward Preferences | Unsubscribe
As concerns grow over severe Black Sky hazards,
lifeline utilities and State and Federal government agencies have been
systematically expanding initiatives seeking to mitigate such extreme
events. Resilience planning and investment represent the foundation on
which any such mitigation efforts must be built.
As has often been said, “20-20
hindsight” following an extreme event comes too late to make the strategic
investments that could have reduced the impact of such an event. Nevertheless,
planning and implementing such measures is often challenging, requiring
decision makers and stakeholders to make investments to address projected risks
which, while serious, may yield little or no immediate benefit. And
though hazards that have occurred with reasonable frequency suffer less from
this investment challenge, emerging threats – even when projected consequences
are extreme – are a much greater challenge.
Increasingly, this issue is being addressed by
expanding the use of tabletop exercises to both simulate hazards and allow key
stakeholders to explore the impact of such hazards, while considering the
benefits and projected needs for resilience measures. The EPRO Black Sky
Hazard Event Simulation Project represents a new example of such exercises,
helping utilities, government agencies and other stakeholders evaluate
the needs and benefits of specific resilience investments for Black Sky
Hazards.
E-Threats: An example of the growing focus on resilience
As an example of this expanding focus, resilience
strategies for E-threats (EMP and GMD), as the newest examples of emerging
Black Sky hazards, are receiving increasing industry attention, and are a
special focus of the hazard protection section of the EPRO Handbook, Volume 1.
A key finding of recent studies, including the reports of the
recently reestablished Congressional EMP Commission, is damage caused by both
EMP and GMD, while affecting very large regions, is expected for only a
fraction of exposed, vulnerable electrical and electronic components. EMP,
for example, will not destroy all electrical and
electronic components, devices and systems in an affected area. While
complex, computer-intensive control systems (including unprotected power grid
control systems) will typically fail or be disrupted, most electrical and
electronic hardware in the region will likely survive. This result is
crucial, providing a foundation for planning a strategic framework for
resilience, focusing on targeted, cost-effective investments to provide
strategic, protected “enclaves” or protection of restoration-critical
infrastructure.
The E-PRO Handbook discusses this resilience
strategy along with recommended companion measures for accelerated restoration,
such as protection for control centers and selected, critical long lead equipment,
properly stored and staged spares, and EMP-protected emergency vehicles,
tooling and communication gear. Implementing such strategies involves
planning for a cost-effective combination of mitigation investments,
operational measures and comprehensive power restoration planning.
Expanding the focus on the power grid’s Black Start system:A critical requirement for Black Sky Hazard resilience
The core resilience foundation of the three
Electric Interconnections that make up the U.S. national power grid is the
Black Start system: Generating stations and cranking paths designed to be
capable of restarting – and functioning as a starting point for grid restart –
following a local or regional power outage. This system has been the
subject of careful planning and investment, and is properly considered a
reliable and essential basis for resilience of the power grid from the full
range of “Gray Sky” hazards experienced in modern times.
The Black Sky / Black Start Protection Initiative (BSPI)
It is vitally important to note – that
the Black Start system was not designed to address Black Sky Hazards. The
Black Sky / Black Start Protection Initiative (BSPITM) examines Black Sky- associated limitations of
the Black Start system, along with recommended enhancements and system
architecture adaptations, as a starting point to consider upgrades to that
system to address the extreme hazard scenarios represented by Black Sky
Hazards.
Black Sky Power Grid Restoration
An essential feature of any resilience plan is companion
planning for effective use of the resilience investments. For the power
grid, for example, while it is certainly vital to ensure that essential tools
and assets needed for Black Sky Hazards will be available when needed, these
capabilities will only be effective if they are embedded in upgraded
restoration and training plans.
# # # # One finding emerging from EPRO ESC meetings
has been a concern, voiced frequently by senior power company executives, for
availability of trained, specialized labor to handle the expected,
unprecedented restoration workload. These executives have pointed out
that, typically, trained engineering teams capable of handling projected
hazards like Cyber or EMP are already, in normal, Blue Sky Day scenarios,
significantly understaffed. In Black Sky Hazard scenarios, they point
out, staff availability is likely to be significantly reduced, precisely at a
time when far greater trained, expert engineering teams will be absolutely
essential.
For Gray Sky Hazards, a mechanism to address this
concern is now being explored by the power industry: Expanding Mutual
Assistance programs, currently designed to provide line crews and “bucket
trucks” to move between companies and geographic regions to help address local
or regional disasters, to include a similar capability to exchange engineering
teams.
# # # # For Black Sky Hazards, such an expansion of
conventional Mutual Assistance programs, while important and helpful, will not
come even close to providing sufficient capability. With widely
distributed, multi-region power grid hardware and IT and OT system disruption
and damage, finding, isolating and repairing problems will require far larger
levels of trained engineering staff, and with many regions facing the same
needs, availability of engineers from other utilities will be limited.
The CPR Engineering Team model
In these scenarios, one highly leveraging approach
will be to build plans for supplementing staff, to address such emergencies,
from outside the power industry. The CPR Engineering Team Initiative lays
out examples or templates for such a mechanism. Based on plans for
advance certification and periodic training of engineers with expertise in the
appropriate disciplines, the CPR model would provide a capability for added
engineering and technician staff, to expand the capabilities and be closely
directed and utilized by the normal, internal corporate engineering
teams that will be in very short supply for such emergencies.