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El Paso Electric Ditches Coal, Embraces Solar

El Paso Electric (EPE), whose service territory includes parts of Texas and New Mexico, is officially coal-free and increasing its focus on cleaner energy resources.

The milestone comes after EPE ended a 50-year contract and sold its 7% ownership of the Four Corners Generating Station, a coal power plant located near Farmington, N.M. EPE says it decided that it would not extend its contract due to the uncertainty of significant economic and environmental impacts, and EPE’s ownership of Four Corners was sold to a subsidiary of Pinnacle West Capital Corp., which is also the parent company of Arizona Public Service Co., in July.

“This decision was not only the best environmental decision for our community, but it was also beneficial financially for all of our customers,” explains EPE CEO Mary Kipp. “El Paso Electric has a firm commitment toward providing safe, reliable and clean energy that is also cost-effective, and as we analyzed our production of electricity, we began to see the ways in which we could make efficient use of new technologies that would be more economically viable for our operations.”

As more utilities try to do their part in reducing harmful emissions, EPE says it believes that the elimination of coal generation for its region was the right step forward. Since 2009, EPE has been making significant investments in local generating facilities, and in 2014, the company doubled its utility-scale solar portfolio and said the decision would help it move away from coal.

“We remain committed to building a portfolio that includes renewable technologies that complement our local, quick-start, clean-burning natural gas units,” states Kipp.

EPE now has a generation mix consisting of nuclear energy from the Palo Verde Nuclear Generating Station, located near Tonopah, Ariz.; local natural gas plants; and a combination of ownership of and power purchase agreements with large-scale solar facilities, including the 10 MW Newman solar facility in Texas and the 50 MW Macho Springs project, the largest solar facility in New Mexico.

EPE adds that it continues to make advancements in solar energy, with a new Community Solar Program launching in 2017, pending Texas regulatory approval. The utility says this program will provide all of EPE’s customers in Texas with the option to subscribe to solar energy from a local solar facility in east El Paso County.

Notably, EPE and intervening parties, including representatives of the solar industry, recently agreed to terms as part of an overall settlement in the utility’s rate case, which was originally filed in 2015. Under the settlement, EPE withdrew a proposal to impose separate higher rates on homeowners who install rooftop solar, according to the Energy Freedom Coalition of America (EFCA).

“This allows parity of rates so that customers who choose solar for their home are charged the same rate as all other residential customers for the electricity they consume,” says Catherine Webking from the EFCA, in a press release.

 

Solar-Powered Plane Completes Historic Flight

History was made on July 26 when the Solar Impulse 2 aircraft completed the first round-the-world solar-powered flight. The plane landed at 04:05 a.m. local time in Abu Dhabi, where it first started its journey back in March 2015, after the trip’s final leg of more than 48 hours from Cairo.

The Solar Impulse project was founded and run by Swiss pilots Bertrand Piccard and André Borschberg. The multi-stage trip around the world covered over 40,000 km (approximately 25,000 miles) and was accomplished using no fuel but the sun.

Solar Impulse 2 featured more than 17,000 SunPower solar cells and several energy storage batteries. According to project partner ABB, the plane made stopovers on four continents (Asia, North America, Europe and Africa) and flew across two oceans (the Pacific and the Atlantic), as well as the Mediterranean Sea and the Arabian Peninsula.

On the way, ABB adds, the plane set several new aviation records, including that of the longest solo duration for an airplane (117 hours, 52 minutes), achieved by Borschberg on the leg from Japan to Hawaii, and the first crossing of the Atlantic Ocean in a solar airplane, achieved by Piccard.

Although the Solar Impulse team planned to complete the global trip last year, the mission had several setbacks, including some weather delays; however, the biggest holdup was when Solar Impulse 2 was grounded in July 2015 for about 10 months to repair severe battery damage suffered when crossing the Pacific Ocean.

Now that the journey has finally been completed, Piccard says, “It’s a historic first for renewable energy and clean technologies, not only for aviation.”

Ulrich Spiesshofer, CEO of ABB, comments, “This is a truly historic achievement, with tremendous symbolic significance. It demonstrates clearly that with pioneering spirit and clean technologies, we can run the world without consuming the earth.”

Adnan Z. Amin, director-general of the International Renewable Energy Agency, says, “This remarkable accomplishment is a clear signal that the age of renewable power is here to stay.

“Solar Impulse has raised awareness about the promise of renewables, showing that they can provide sustainable, reliable energy,” continues Amin. “It has also pushed technological boundaries forward and is a testament to the importance of innovation and international cooperation in realizing a sustainable energy future. For this, Solar Impulse pilots Bertrand Piccard and André Borschberg now join the elite club of pioneering aviators.”

 

Utility Compromise Means Major Renewables Increase

In a 4-1 vote, the Georgia Public Service Commission (PSC) has approved Georgia Power’s revised 2016 Integrated Resource Plan (IRP), under which the utility will add 1.6 GW of new solar and other renewable energy by 2021.

The new long-term energy plan represents a compromise between Georgia Power and several other parties, including the Southern Alliance for Clean Energy (SACE) and the Sierra Club. Although Georgia Power originally proposed to add 525 MW of renewables by 2021 under its IRP, the finalized deal more than triples that.

Ashley Stukes-West, a spokesperson for Georgia Power, says the IRP is “a collaborative, open process” and stipulated agreements are “a normal part of the constructive regulatory environment in Georgia.”

“This agreement was the result of work across the groups - we’re pleased to have reached a final decision that furthers our ability to deliver clean, reliable and affordable energy for our 2.5 million customers,” she tells Solar Industry.

Stukes-West adds, “We are committed to adding cost-effective renewable generation as part of a balanced and diverse energy mix in a way that doesn’t put upward pressure on rates for our customers.”

In a press release, Ted Terry, director of the Sierra Club’s Georgia chapter, praises Georgia Power and the PSC for their decisions.

“Georgia has recently been ranked the top state for the creation of jobs in the clean energy sector, largely due to our fast-growing solar industry. So, this increased commitment to renewables is not only a smart move for our environment, but also for our local economy,” explains Terry.

SACE, which had wanted Georgia Power to add more than 2 GW, calls the 1.6 GW deal a “reasonable compromise” that is a “substantial improvement” from Georgia Power’s previous proposal.

“As we’ve seen across the country and here in Georgia with the first solar programs approved in 2013, more renewable energy means more savings for customers,” says Dr. Stephen A. Smith, executive director of SACE, in a press release. “These projects cost less than the projected cost of generating power.”

According to a PSC announcement, the bulk of Georgia Power’s new 1.6 GW will come from the utility’s Renewable Energy Development Initiative (REDI).

Under REDI, Georgia Power will procure 1.2 GW of new renewable resources, including 1.05 GW of utility-scale power and 150 MW of distributed generation (DG). The utility-scale portion will be sought through two requests for proposals (RFPs) in 2017 and 2019. The PSC document suggests that Georgia Power can’t procure any more than 300 MW of wind resources under REDI - which, of course, could signal big opportunities ahead for solar in the state.

Also included in the new IRP are an additional 100 MW of DG, with an RFP to be released in 2017, and 200 MW of self-build renewable projects.

According to SACE, the PSC has officially signed off on the retirement of one coal plant and capped Georgia Power’s capital expenditures at other coal plants. However, in a 4-1 vote, the PSC has also granted Georgia Power permission to pass on $99 million in costs to ratepayers for the investigation and licensing of possible new nuclear resources.

“We appreciate the commission’s recognition of the importance of preserving new nuclear as a timely energy option for our customers,” comments Georgia Power’s Stukes-West.

In the PSC press release, Commission Chairman Chuck Eaton states, “I believe this IRP strikes the right balance between ensuring Georgia Power customers have reliable service and the right mix of resources while at the same time not paying for un-needed resources.”

Meanwhile, Commissioner Stan Wise remarks, “We can debate the wisdom of the coal exodus, but it must be replaced with something that is cost-effective. Nuclear power remains among the lowest-cost energy sources, with a 92 percent reliability rating, and it is carbon free. Nuclear deployment takes time, and I refuse to sit on my hands.” - Joseph Bebon

 

Tesla And SolarCity Reach $2.6 Billion Agreement

In order to establish what the two call “the world’s only vertically integrated sustainable energy company,” Tesla and SolarCity have come to terms on a multibillion-dollar merger deal.

According to a joint blog from the companies, the electric vehicle and battery maker will acquire the residential solar provider in an all-stock, $2.6 billion deal. In addition, stockholders of SolarCity will get 0.110 Tesla common shares for each SolarCity share, the companies say, adding that SolarCity common stock is placed at a $25.37 value per share (lower than the previously predicted $26.50-$28.50 value).

Additionally, per the agreement, SolarCity will be able to “solicit alternative proposals” until Sept. 14, according to their announcement.

“Solar and storage are at their best when they’re combined,” the companies explain in the blog. “As one company, Tesla (storage) and SolarCity (solar) can create fully integrated residential, commercial and grid-scale products that improve the way that energy is generated, stored and consumed.”

Specifically, the blog adds, the merger will create “an aesthetically beautiful and simple one-stop solar + storage experience: one installation, one service contract, one phone app.”

At press time, the companies anticipate that the deal will become official in the fourth quarter of this year after they receive both regulatory and shareholder approval. After the first full year of operations as a joint company, they expect “cost synergies of $150 million.”

However, billionaire business mogul Elon Musk - who heads Tesla as CEO and SolarCity as chairman - calls $150 million “conservative” and expects to “significantly exceed” that estimate, according to a Wall Street Journal report.

Musk reportedly called the transaction a “no-brainer” back in June, when Tesla first put the deal on the table. Moreover, in a recent blog, he said an integration of energy storage and rooftop solar is part of his “master plan.”

 

Hawaiian Electric, NextEra Call Off Merger After PUC Denial

Following a deathblow from the Hawaii Public Utilities Commission (PUC), Hawaiian Electric Industries Inc. (HEI) and Florida-based NextEra Energy Inc. have terminated their plans to merge. NextEra Energy initially announced its bid to take over HEI in December 2014 through a deal valued at approximately $4.3 billion.

NextEra will now pay HEI a $90 million termination fee and up to $5 million for reimbursement of expenses associated with the transaction. After payment of taxes, the net amount of $60 million will help to fund Hawaii’s clean energy efforts, the companies say. In addition, a special, one-time cash dividend of $0.50 per share of HEI common stock, which would have been paid had the merger closed, will not be issued.

In a 2-0 decision, the PUC denied the companies’ joint application. The commission concluded that although the applicants demonstrated that NextEra is fit, willing and able to perform the services currently offered by HEI and its three electric utilities, the applicants failed to demonstrate that the merger would be reasonable and be in the public interest.

With respect to the state’s clean energy goals, the PUC concluded that notwithstanding NextEra’s management capabilities, experience and finances, the applicants had failed to put forth near-term commitments for specific action tailored to Hawaii’s unique circumstances and clean energy goals. Last year, Hawaii Gov. David Ige expressed similar concerns about the potential merger.

Additionally, the PUC noted the companies’ lack of specific commitments relating to distributed energy resources - which runs contrary to Hawaii’s status as a leader in integrating distributed solar photovoltaic systems, according to the commission.