Regulatory Matters – Second Quarter 2024

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Everett Marine Terminal and Mystic Generation Station
New England – Electric & Natural Gas

The largest natural gas-fired plant in the New England region with a generation capacity of over 1,400 megawatts – Mystic Generation Station – was retired at the end of May 2024. The owner, Constellation also owns and operates the Everett liquefied natural gas (LNG) terminal located adjacent to the Mystic facility, which supplied all of Mystic’s natural gas supply.

Constellation will keep the Everett LNG terminal open through winter 2029–30 to serve other customers in New England under new six-year supply contracts that were recently approved by the Massachusetts Department of Public Utilities. The supply contracts provide Massachusetts local distribution companies with the ability to purchase natural gas in either liquid or vapor form from the Everett marine terminal for the period June 2024 through May 2030.

Federal Energy Regulatory Commission Leadership
National – Electric & Natural Gas

The U.S. Senate confirmed three commissioners to serve at the Federal Energy Regulatory Commission (FERC): Judy Chang, the former Massachusetts Undersecretary for Energy and Climate Solutions; Lindsay See, former West Virginia Solicitor General; and David Rosner, a FERC staff member. With these appointments, the FERC is now restored to a full complement of five commissioners. “As I have said many times, the commission works best when it has five members, so I look forward to welcoming them to the commission so we can work collaboratively to ensure reliable, affordable and sustainable energy for all consumers,” Chairman Willie Phillips.

Preserving Energy Choice
Arizona – Electric & Natural Gas

In an effort to prevent potential fossil fuel restrictions policymakers are seeking to amend the Arizona state constitution in order to preserve consumer access to stoves, cars, and other items regardless of the type of fuel or energy they consume. Proposed resolution, Arizona House Concurrent Resolution 2050, (AZ HCR2050 | 2024 | Fifty-sixth Legislature 2nd Regular | LegiScan) is underway and would block state or local policymakers from restricting the production, use or sale of a device based on the energy that powers it. If the resolution passes, it will then go before voters on a ballot in the next general election.

Reducing the Regulatory Burden
District of Columbia – Electric & Natural Gas

The District of Columbia Public Service Commission has proposed changes to both its electricity and natural gas retail supplier licensing rules. The major proposed changes include: (1) Repealing the mandatory supplier education workshop for both electricity and gas supplier licenses, completion of which is currently required for new suppliers, and every three years for existing suppliers. “[A] mature and informed alternative energy supplier market in the District of Columbia suggests that the periodic supplier workshop requirement is no longer necessary and will therefore be no longer required,” the Commission said of its proposed change. (2) Under the proposed changes, electronic filings of bonds and similar instruments shall be accepted in such form and possess the same standing as physical versions. (3) The proposed rule changes would provide for license revocation for inactive suppliers and other licensees.

Power Trends 2024: Annual State of the Grid and Markets Report
New York – Electric

The New York Independent System Operator (NY-ISO) issued its annual Power Trends report (Power Trends – NYISO) that provides an in-depth look at the forces shaping the future of the New York State electric grid. The 2024 report focuses on issues and challenges shaping the grid of the future. Key messages in Power Trends 2024 include: (1) Public policies are driving rapid change in the electric system in the state, impacting how electricity is produced, transmitted, and consumed. (2) Electrification programs and economic development initiatives are driving projected demand higher. (3) The potential for delays in construction of new supply and transmission, higher than forecasted demand, and extreme weather are threatening reliability of the grid. (4) The statewide grid is projected to become a winter-peaking system in the 2030s, primarily driven by electrification of space heating and transportation. (5) NY-ISO’s interconnection processes are evolving to balance developer flexibility with the need to manage the process to more stringent timeframes. (6) New emission-free resources – that are not yet available on a commercial scale – are needed to meet the goals of the Climate Leadership and Community Protection Act.

Mountain Valley Pipeline Receives Authorization
Virginia & West Virginia – Natural Gas

The Federal Energy Regulatory Commission authorized the Mountain Valley Pipeline (MVP) to begin operations. The MVP pipeline, over 300 miles long, can provide up to 2 billion cubic feet of natural gas per day from Wetzel County, West Virginia, to an interconnection with Transcontinental Gas Pipeline’s compressor station in Pittsylvania County, Virginia.

Transcontinental delivers natural gas through a 10,000-mile interstate transmission pipeline system extending from South Texas to New York. MVP has signed long-term agreements with multiple shippers for the full capacity of the pipeline for at least 20 years from its in-service date which will enable its shippers to access markets in the Northeast, mid-Atlantic, and Southeast U.S.

Pausing Enforcement of Natural Gas Bans
California – Natural Gas

In the wake of the Ninth Circuit U.S. Court of Appeals’ decision declining to rehear Berkeley California’s ban on natural gas in new buildings – previously struck down by the court where a panel of judges ruled that Berkeley cannot prohibit natural gas due to federal energy law – a number of Bay Area cities and counties (i.e., Sunnyvale City Counsel, Contra Costa County, and Cupertino) are pausing the enforcement of natural gas bans in new building construction.

More Stringent Requirements for Electric Supplier Licensure
Connecticut – Electric

The Connecticut Public Utilities Regulatory Authority resubmitted proposed amendments for final approval to the regulations for electric supplier licensing to address issues and corrections raised by the Legislative Commissioner’s Office. The proposed regulations include the following substantive changes: (1) the review cycle for electric supplier licenses will change from every five years to every two years; (2) the fee for applications to become a licensed electric supplier will increase from $1,000 to $2,500, (3) the fee for the periodic review will increase from $250 to $2,500; and (4) electric suppliers will be required to file information on investigations by other state regulatory agencies as part of its licensing process. Final approval is still required before implementation.

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