The POWER Podcast

Nevada law has included net metering provisions for more than 20 years. Net metering is an arrangement that allows energy generated by a customer’s leased or purchased solar system to offset monthly power bills. It also permits excess energy supplied to the grid to earn credits, which are then automatically applied to future billing periods in which more energy is consumed than produced. Historically, net metering was a one-for-one transaction in Nevada. For every kWh supplied to the grid, a credit was given to the customer for one kWh in the future. The scheme changed in 2015 when the Nevada Public Utilities Commission (PUC) created a laddered approach that ratcheted down the value of customer-generated energy over a period of years to about 2¢/kWh, which was much less than the retail rate of about 11¢/kWh. The change effectively stopped all construction on new residential rooftop solar systems. Through Assembly Bill 405 (AB 405), the Nevada Legislature modified the net metering rate structure effective June 15, 2017. The bill allows Nevadans who choose to net meter to fall under a rate structure codified in the law. The rate structure applies to renewable energy systems of 25 kW or less, which is typical of a rooftop solar system installed on a home or small business. The net metering rate structure is tiered and will decrease over time as the amount of electricity produced by net metering systems reaches 80-MW benchmarks. The first tier offers a net metering rate that is 95% of the retail rate. As of April 26, 2018, nearly 20 MW of installed capacity had been applied toward the first 80-MW tier. The net metering rate for the second tier is 88% of the retail rate, with tiers three and four crediting 81% and 75%, respectively. Furthermore, on March 14, 2018, the PUC approved numerous new time-variant rates pursuant to AB 405. The rates are designed to incentivize the use of battery storage at residential and small commercial sites. Under the new structure, utility customers with battery storage are allowed to shift their grid usage to times when energy is less costly. The result is a reduced load on the system during peak times coupled with energy savings for the customer. The development provides a natural incentive for customers to deploy behind-the-meter battery storage. Curt Ledford, a Nevada-based attorney with McDonald Carano, who focuses on utility, cooperative, administrative, corporate, and employment law, as well as reliability and general regulatory matters affecting cooperative utilities, spoke in-depth about energy storage, net metering, and other energy matters during an interview for The POWER Podcast. Although Nevada law is his primary expertise, many of the lessons learned in the state can be applied elsewhere.

More and more people are finding distributed energy solutions are the answer for their power resource challenges. Distributed energy comes in many forms. Renewables such as solar and wind are top-of-mind when most people think of distributed resources, but natural gas-fired generation is often a good fit too, because it adds reliability to the system and is a consistent source of backup power. Energy storage is also a logical piece of the distributed energy puzzle. Wind and solar are obviously dependent on nature. You need the wind to blow and the sun to shine in order to generate power from them. But often, those conditions do not match electricity demand. Frequently, renewables generate power when demand is low and die off when demand is high. That can mean power prices are low or even negative when solar and wind are generating most of their power, and prices are high when they are no longer producing. Batteries or other storage mechanisms can help overcome that problem, charging during low-demand hours and discharging when demand is high. Combined heat and power (CHP) is another great way to optimize systems. How CHP works is by using the heat that would otherwise be wasted in exhaust gases from fossil combustion systems, such as flue gases from a coal- or biomass-fueled boiler or exhaust from a gas turbine or reciprocating engine, to produce steam and/or hot water for various industrial or commercial needs. The process can increase efficiency of the combined system significantly, which saves money on fuel and reduces overall emissions. In this episode of the POWER podcast, Dalia El Tawy, director, Thermal Power Solutions Distributed Energy Systems with Siemens Energy, explains some of the work her group is doing to solve customers’ challenges. Born and raised in Egypt, Dalia came to the U.S. in 1999 to finish her education. She knew how disruptive power blackouts could be from her childhood and believed there had to be a way to improve reliability. She found it in distributed energy systems and CHP solutions.

Tennessee Valley Authority (TVA) CEO Bill Johnson in an exclusive interview with POWER suggested that the power industry continues to face an uncertain future. Johnson said that during his 40-year career, he has seen more change in the last five years than in the previous 35 combined. Several indicators imply that will continue going forward. According to Johnson, one thing driving change is declining demand for power, which has resulted from efficiency improvements, a shift toward a more-service-oriented economy, and lower population growth, among other things. Johnson said customers are interested in cleaner, more-flexible sources of power and information. The challenge for utilities is to figure out how to integrate new behind-the-meter resources after having focused for so long on big centralized power stations. Other power industry changes include a shift away from coal-fired generation. Johnson said TVA generated about 60% of its energy from coal 10 years ago, but by the end of the decade that figure will be down to only 20%. TVA has added nuclear capacity and shifted to more gas-fired generation. In addition, solar is now becoming a more viable option for the corporate agency of the federal government. Johnson was one of three “Thought Leaders,” who spoke and answered questions during the opening day of the ELECTRIC POWER Conference and Exhibition, held in Nashville, Tennessee, in late March. Prior to the event, Johnson sat down with POWER Executive Editor Aaron Larson to offer some insight on happenings at TVA.

Joe Grimes, executive vice president of generation with the Tennessee Valley Authority, gave the keynote presentation during the ELECTRIC POWER Conference and Exhibition, which was held March 19–22 in Nashville, Tennessee. His presentation focused on steps TVA is taking to diversify its generation portfolio in order to reduce risks and keep costs as low as possible for customers. TVA was created by Congress in 1933. According to its website, TVA was “charged with a unique mission—to improve the quality of life in the Valley through the integrated management of the region’s resources.” As the nation’s largest government-owned power provider, TVA sold more than 152.3 TWh of electricity in fiscal year 2017. Its generation portfolio is 37% nuclear, 24% coal, 20% natural gas, 9% hydro, 3% wind and solar, and 7% energy efficiency. TVA sells electricity to 154 local power companies and 54 directly served industries and federal facilities. Its power service territory covers 80,000 square miles, including most of Tennessee and parts of Alabama, Georgia, Kentucky, Mississippi, North Carolina, and Virginia. In this POWER Podcast extra, Grimes speaks with Executive Editor Aaron Larson about TVA’s generation mix and what the future holds for its fleet.

The Watts Bar 2 nuclear unit has a lengthy and well-chronicled history. Construction began on the unit in 1973. It was suspended in 1985 due to slower electricity demand growth, rising construction costs due to inflation and new regulatory requirements stemming from the accident at Three Mile Island in 1979, and regulatory concerns throughout the Tennessee Valley Authority’s (TVA’s) nuclear fleet. A study was conducted—beginning in 2006—to evaluate energy needs, schedule, cost, environmental impacts, and financial risks for Unit 2. After serious deliberation, TVA’s board decided to resume construction, which recommenced in 2008. Although more delays ensued, the unit was completed and entered commercial operation on October 19, 2016. In this POWER Podcast extra, Mike Skaggs, executive vice president of operations with TVA, explains the process the organization went through to complete the unit. Skaggs was intimately involved in the project as a member of the Watts Bar Operations and Construction group. When it entered commercial operation, Watts Bar 2 was the first new nuclear unit added to the U.S. fleet in more than 20 years.

Concentric Power, a California-based provider of high-efficiency energy modules for onsite refrigeration and electric power generation, recently launched a $100 million finance program for cogeneration and microgrid projects. "We are excited to create a new path forward in energy infrastructure financing and development," Brian Curtis, founder and CEO of Concentric Power, said in a press release. "The next 20 years will be transformative for how electric power is generated and consumed. Industrial and ag consumers see these shifts coming but would often rather invest capital in their core business rather than in plant utilities. Concentric's technology strategy and finance program enable customers to utilize third-party financing to roll out sustainable infrastructure." Concentric has already developed two significant projects: Taylor Farms in Gonzales, California, and True Leaf Farms in San Juan Bautista, California. Both are large agricultural processing facilities that require several MW of power and refrigeration to operate. Taylor Farms installed solar panels and a wind turbine to supply some of its power needs, but it needed a reliable backup to fill voids when the wind and solar couldn't meet the processing plant's needs. Concentric evaluated the situation and constructed a cogeneration plant to meet the facility's needs. The primary energy comes from a natural gas-fueled Caterpillar internal combustion engine. The heat in the engine's exhaust and water cooling jacket is used by an aqueous ammonia absorption refrigeration unit, which cools the processing plant. An advanced control system governs the operation, matching wind, solar, and engine generation with the plant's overall needs. Curtis spoke to POWER Executive Editor Aaron Larson about his company and the solutions it provides. You can hear their conversation in episode 11 of The POWER Podcast.

Cybersecurity threats have increased dramatically as sophisticated, nation-state developed hacking programs have been leaked to the general public. Now, common criminals have high-tech tools at their disposal with the capability to cause serious damage. As such, the power industry must take precautions and upgrade security to keep systems safe. While regulations provide a minimum security standard, companies that aren't going above and beyond the government's requirements are likely to be setting themselves up as "low-hanging fruit," that is, easy targets for hackers. In this episode of The POWER Podcast, Chris Grove, director of industrial security with Indegy, offers some tips for keeping bad actors out of power plants. Gaining visibility into systems is an important first step. Once companies understand what risks they're exposed to, getting a broad-based team of both information technology (IT) and operational technology (OT) experts involved to develop solutions to mitigate the risks is a logical subsequent step. Investing in good security can pay dividends in the end.

Amir Adnani, CEO of Uranium Energy Corp., discusses the state of the nuclear industry, highlighting uranium production trends, new construction developments, and the lack of a nuclear vision in the U.S.

Ray Long, vice president of government affairs for NRG Energy, addresses the New Jersey Senate Environment and Energy Committee concerning nuclear subsidies.

PSEG CEO Ralph Izzo addresses the New Jersey Senate Environment and Energy Committee concerning nuclear subsidies.