NEPPA eNewsletter
February 2015
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The APPA 2015 Legislative Rally will be held March 9-11, 2015, at the Grand Hyatt Washington in Washington, D.C. Public power professionals who want to get involved and advocate on behalf of their community and the industry should plan to attend. Go here for details. .jpg) ##SHARELINKS##
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EXECUTIVE DIRECTOR'S REPORT
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*WARNING* THIS ARTICLE IS FRAUGHT WITH PERSONAL OPINION
This month, as every February, we take stock of our industry issues as we prepare for our annual visit to Washington to address elected and appointed leaders. As I reviewed the items from previous years and this year, I noticed there is a consistency to some. As I sit back and try to review solutions, the main one keeps coming back to reformation of ISO-New England.
What issues could be resolved if there was only some oversight or accountability of ISO-New England? Here is an abbreviated list:
If you were sitting around your local coffee shop trying to come up with common sense solutions to these real problems impacting New England consumers, the solutions would be easy.
The first is the simplest: change the rules for RTOs (Regional Transmission Organizations). Do not allow them to pay or participate in lobbying. These organizations are the creations of FERC, a federal agency. They should be prohibited from spending any money on lobbying and should only be able to address elected leaders in public forums or through FERC.
I can’t tell you how many times we have heard from congressional staffers, "Oh, we heard from the ISO folks that you were going to bring this up," or "The ISO folks are coming in next week to give us their take." Isn’t this the role for FERC? If they are overseeing RTOs, then they should be defending their positions and failures.
Second, change the ISO budget and compensation structures. For every point the transmission incentives exceed the prevailing market rates for lending, let the ISO budget and executive salaries be docked by the same percentage. OK, we do want to incentivize construction, so maybe add 3 percent to the standard market rates and then apply this solution.
Anytime 75 percent of the market participants vote against a RTO proposal, the proposal should, by rule, be dead! Ninety percent of the participants voted against the Performance Incentives Proposal due to the negative impact on consumers. They could also pose an alternative, which is any time 75 percent or more of the market participants vote for something a feasibility study should be conducted to vet the solution.
If a community decides to build its own generation, let them! This has never been done to manipulate the market and in no real world model could it be done to do so. Because of the efficiency of our business model we sometimes build and provide generation at a lower cost than ISO floor prices. When this occurs, we should never be told that if we build, we cannot bid in at our price because it is too low. How is reliability enhanced when individual communities lose their ability to provide their own power and when a system becomes dependent upon external energy sources?
Set a minimum generation percentage for the region. As these sometimes senseless market rules have been promulgated, they have combined with purposefully changing EPA standards and resulted in a curve that will eventually lead to New England being heavily dependent upon imported energy. This is neither good for consumers nor business. So, maybe this is another area we can incentivize ISO-NE. FERC should set the ISO-NE budget on "only energy generated" in the region. Every time generation takes a hit so should the ISO-NE budget.
I think the concept here is that maybe the RTOs should be treated like they would be treated in a free market. When they fail, their budgets should be reduced and so should the compensation to their executives. The simplest solutions are always the best!
Finally, FERC should modify the mission of the RTOs to "providing the highest level of reliability at the fairest cost." Water, electricity and heat have reached the level of air in most people's eyes in that they should just be there. But, the new element to this discussion is what we saw with the Net Neutrality debate this past year. There was a great deal of opposition to having different pricing for different speeds of access. We recognize that electricity is an essential service, but people do not expect to pay a premium for it. The public power model recognizes this and it is time for the other industry elements to recognize this. FERC needs to recognize this, before it becomes too volatile of a component to the overall economy, like oil was in the early '70s.
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NEPPA'S 50th ANNIVERSARY YEAR
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In honor of our 50th Anniversary, we continue to feature significant figures from our past. This month we spent time with Pat Hyland, who served as Executive Director from 1989 until 2011. Pat has dedicated his life to service and is credited with creating the Public Utility Management Program. Here are a few excerpts from the exchange.
In terms of value, what service do you think has had the most impact?
In my view, NEPPA’s most valuable program has always been the provision of professional training and educational programs for its members. Early on, basic lineworker safety and skills classes were critical to many systems in the region. They also needed to have these classes conducted within or near their service territories, so that lineworkers could be available in the event of emergencies. NEPPA was uniquely able to fill these needs, and its lineworker programs are now recognized as among the best in the industry. Over time, and with the guidance and support of the Training Committee, NEPPA has expanded its training programs to all aspects of utility operations, including leadership and management skills, customer service, engineering, accounting and finance. I am pleased to see, as well, that the number and variety of training programs continues to increase, and that NEPPA will soon be offering continuing education units to participants.
What do you see as NEPPA’s primary role in the future?
I anticipate that NEPPA will continue to meet the expanding training needs of all its member systems, utilizing digital technologies to deliver programs in a variety of ways. I also expect that NEPPA’s mutual aid program will continue to grow in importance to member systems, as major weather events appear to be increasing in our region, and the need for timely assistance from other systems will likewise probably increase.
Should NEPPA play a major or minor role in Washington?
I believe that Washington representation is an important role for a regional association such as NEPPA. Unlike some other regions, New England has significant Congressional clout, with 12 Senators and 21 Members of the House. Until recent years, we have enjoyed the benefits of Congressional seniority among many of our members, which translates into real influence in Committee membership and bill sponsorship.
It is worth remembering that before the mid-90s, NEPPA did not have a formal legislative representation program. Some members did not want part of their membership dues to be spent on lobbying in DC. Through the efforts of several members of the Legislative Committee, most notably Sharon Staz and Alan Yandow, we were able to convince most members that a Washington presence for NEPPA was important, and that the costs should be funded through membership dues.
How do today’s challenges compare to those of previous periods?
Some of today’s challenges to public power remain the same as they were 50 years ago:
The evolution of digital technology and industry deregulation have posed many new challenges for public power. These include, among many others, distributed generation, self-generation by customers, smart grid investments and cyber security. While every generation of public power officials has faced difficult challenges in serving their customers and "keeping the lights on," it does seem that these have gotten more complex as the industry has evolved.
What has been the biggest change in the industry over the past 50 years?
I believe that one of the most transformative changes in the electric utility industry over the past half-century has been the deregulation of wholesale power generation and the creation of regional power supply markets governed by ISOs and other regional entities.
These markets have fundamentally changed the way that electric utilities do their business, and have imposed significant costs and administrative burdens, especially on smaller public power systems. The New England region was one of the first to deregulate retail electric markets in the 1990s, and the simultaneous development of deregulated wholesale markets in our region has really complicated the business of power supply planning and purchasing. In theory, these changes were supposed to lead to lower prices and other customer benefits; the jury is still out on this, at least in New England.
If I used the word "visionary," what NEPPA member comes to mind?
With 50 years of history, NEPPA has certainly benefited from the visions and hard work of many people. In thinking about this question, however, I think the most credit must be given to the association’s founders, who saw the need for a regional public power association in New England, and then did the hard work to make it happen. This hard work included convincing a lot of stubborn, independent-minded municipal light department officials scattered over six different states that more could be accomplished as a group than as a collection of individuals. Those of us who grew up and live in New England can appreciate what a real accomplishment this was. And their "vision" lives on, 50 years later.
Thank you Pat! We hope you can join us at the Annual Conference, where our 50th celebration festivities will kick in to high gear.
Have a suggestion for a significant figure from the past 50 years? Let us know by emailing ccrouse@neppa.org.
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AROUND NEW ENGLAND
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Julio H. Leandri, 91, formerly of Tyler Ave., Groton, died peacefully Sunday morning, Jan. 4, 2015, at Fairview in Groton, Conn.
Julio was born in Groton, on June 21, 1923, the son of Albert and Marina (Fiorini) Leandri. He was a 1941 graduate of Robert E. Fitch High School in Groton. After high school, he enlisted in the U.S. Navy and served honorably in World War II with the Amphibious Forces in the Pacific. He attended college on the GI Bill and received a bachelor of science degree from the University of Connecticut in 1950.
- See more at: http://www.legacy.com/obituaries/theday/obituary.aspx?pid=173743534#sthash.QQAUv7P4.dpuf ##SHARELINKS##
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At a special meeting of the Kennebunk (Maine) Light & Power District’s (KLPD’s) Board of Trustees on Dec. 26, 2014, the Board voted unanimously to appoint Todd J. Shea to serve as its new General Manager. Shea replaces Sharon Staz, who is retiring from the position after more than 15 years of service. Mr. Shea, who is currently serving as the Town Manager in Arundel, Maine, took the reins at KLPD on February 2, 2015. He will have the benefit of Ms. Staz’s assistance during a transition period. Noting that the District received over 40 applications for the position, Mr. Shea thanked the Board for their vote of confidence. "I am extremely honored and proud to be selected from so many applicants. I am committed to transparency and public service, and look forward to the opportunity," he said. The KLPD is well known in the region for its exceptional service to much of Kennebunk and parts of surrounding towns where KLPD distributes electrical power.
The President of the Board, Jay Kilbourn, thanked Ms. Staz for her many years of exemplary service and steadfast commitment to the public interest. He observed that "Now Mr. Shea will have the opportunity to guide the District through a period of rapid change in the energy industry. In the next year the District will determine the fate of its three hydro-power dams and the best approach to manage electricity costs and sourcing of renewable power." The KLPD will also develop a comprehensive strategic plan.
Mr. Shea is a career public administrator who served as the City Manager of Hallowell, Maine (2008-2011) and then Town Manager in Arundel, Maine, prior to accepting this post. Graduating summa cum laude in 1996 from the University of New England with a bachelor's of science in Business Management, Mr. Shea also completed courses in Marine Engineering at the Maine Maritime Academy, including hands on experience with power generation. Prior to moving into public service, Shea had 10 years business experience, including nine years of business and project management in the building industry.
Mr. Shea announced to the Trustees his commitment to utilize his financial management skills and public policy network to benefit the District. He promised to work with the Board and District to ensure that the goals, objectives, and policies of the District are carried forth responsibly and efficiently. "I will do my best to be a steward of the history of the district while simultaneously looking ahead to the future."
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New Hampshire Electric Cooperative (NHEC) extends its congratulations to Lineman James Robison, who has invented a device that allows linemen to safely re-attach a conductor to its wooden reel. The reel and wire safety clamp replaces the old-fashioned hammer and staple method of re-attaching wire and is in use at several cooperatives, including NHEC. Robison is seeking to patent the device at the U.S. Patent & Trademark Office.  ##SHARELINKS##
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On January 8, 2015, Gov. Peter Shumlin gave his Inaugural Address as he was elected for a second term as the Governor of Vermont. Proudly, some of NEPPA's members were mentioned. Shumlin goes on to say: "In addition to the eHomes project, we have many other great examples of pilots and partnerships that the Energy Innovation Program will help encourage, from Vermont Electric’s community solar projects, to Stowe Electric’s vehicle recharging project, to Washington Electric’s solar water heater discounts, to Burlington Electric’s smart meter energy savings programs." To read the full Inaugural Address, please click here! ##SHARELINKS##
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Energy New England, LLC (ENE), an energy cooperative of municipal electric utilities operating throughout New England and Tangent Energy Solutions, Inc., a Distributed Energy Resources (DER) company, announced Jan. 14, 2015, a new offering that lowers costs and improves reliability by empowering municipal utilities and their customers to reduce ICAP and transmission costs. The program will roll out immediately with an initial emphasis on enlisting Massachusetts municipal utilities and their customers in order to impact monthly transmission costs and the 2015/2016 ICAP evaluation period.
The Tangent-ENE Peak Management Program provides the technology, equipment and support required to drop load and dispatch appropriate generation assets behind-the-meter and in the utility in response to targeted, high-value economic opportunities on the energy grid. Specifically, the offering consists of a Distributed Energy Resources Management (DERM) technology platform that monitors grid and facility conditions to accurately predict ICAP and transmission peak hours, alerts customers to take action, and actively manages their response. The program also configures existing on-site generation assets for grid integration and installs new generation when it makes operational and economic sense for the customer.
Based on published ISO NE capacity rates and NEPOOL transmission rate forecasts, capacity and transmission service costs are expected to increase 29% across most of New England and 56% in NEMA by 2018, pressuring more rate increases for municipality customers. Municipal utilities recognized the cost risk these trends would create for their customers. These concerns led to a partnership between ENE and Tangent, and the creation of the Peak Management Program.
"ENE has a history of uncovering valuable solutions to costs and operational issues facing municipal utilities and their customers," said John G. Tzimorangas, ENE President and CEO. "This program specifically addresses capacity and transmission costs; a problem that until now lacked a viable solution."
Above all, the Peak Management Program preserves the utilities’ relationship with customers without causing them additional work.
"The Peak Management Program needs to run through the municipality, not around it, to be successful," said Dave Turner, Chief Operations Officer of Tangent. "Tangent primarily works in the background to manage program implementation while providing real-time data and M&V reporting for customers and the utility."
About Tangent Energy Solutions, Inc.
Tangent is a Distributed Energy Resources (DER) company. Our Distributed Energy Resource Management (DERM) systems actively manage behind-the-meter supply and demand in order to maximize economic opportunities for C&I energy customers, while minimizing disruption to normal operations. By uniquely building out a DER solution from the customer side of the meter, and monetizing it through exclusive relationships with leading Load Serving Entities (LSEs), Tangent motivates and empowers customers to become price makers on the energy grid while offering the industry plug-and-play access to customers that competitors cannot match.
About Energy New England, LLC. Energy New England, LLC (www.energynewengland.com) is a leading provider of wholesale and retail energy services. The company conducts more than $300M in structured transactions annually, and has also grown to become the leading provider of conservation and efficiency services for the public power community in the region. The company’s customer base has grown exponentially over the past few years. Its comprehensive portfolio includes power supply and risk management services, energy and water conservation services, energy brokering, and renewable energy solutions. Energy New England has customers situated throughout New England as well as other power pools. The company works with an increasing number of utilities, independent power producers, industrial, commercial and institutional facilities, municipalities and non-profits. ##SHARELINKS##
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ASSOCIATION HAPPENINGS
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NEPPA welcomes Tri State Truck Center, Inc. as an associate member as of Friday, January 16, 2015! Tri State Truck Center, Inc. is a heavy truck dealer. The company is located at P.O. Box 308, Shrewsbury, MA 01545. The primary contact person is Gene Holmes, who is the municipal account representative. He can be reached at gene@tristatetruckcenter.com or 508.944.9462 (phone) or 508.363.2647 (fax).
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On Thursday, January 22, NEPPA hosted a half-day seminar on legislative basics that covered a wide spectrum of topics. Leading the discussion was Mike Kirkwood, General Manager of the Pascoag Utility District and the Chair of the Legislative Committee. Joining him were Morgan Meguire lobbyists Elizabeth Kelsey and Lori Pickford .
The morning started with a ground level discussion of who the decision makers are in Washington and what the most pressing issues are for the 114th Congress. Each topic was broken down into greater detail in order to make it more understandable and to ensure that they were in the correct order of priority. Visiting local Congressional incumbents and how to approach them was also demonstrated for those who might not have been to Washington, D.C., before. After lunch, both Lori and Elizabeth updated participants on New England’s Energy Policy and a more in-depth discussion ensued.   ##SHARELINKS##
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CALENDAR
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Omni Hotels & Resorts believes in providing the very best personalized experiences for our guests. By catering to every need and providing an authentic feel for the local flavor, we act as a gateway to a richer, more fulfilling stay in each of our destinations across North America.
We believe truly exceptional service is built from the ground up. We’ve cultivated a corporate culture that recognizes the extra care and contributions each of our team members brings to your travel experience. We believe the results, and the many service awards we’ve received, speak for themselves.
From exceptional golf and spa retreats to dynamic business settings, each Omni property blends seamlessly into the local culture. We feature four-diamond services, signature restaurants, WiFi connectivity, and a complimentary loyalty program that rewards you from your very first stay.  Room are now available to book for the conference! To make reservations, please click here. Please use the code in the GROUP CODE box: 082015NEPPA50TH. You can also call 603.278.1000 and refer to "NEPPA's 50th Annual Conference." ##SHARELINKS##
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The Customer Service Committee is pleased to announce that this year's Customer Service Conference will be held at the Nantasket Beach Resort in Hull, Mass., on Thursday, May 14, 2015. Stay tuned for more information to come out this month!
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16 Days
January 20 - 23 March 24 - 27
May 5 - 8
September 15 - 18
This one-year program builds on the knowledge and skills lineworkers already possess. Students are awarded a certificate in Advanced Lineworker Skills. Click here to learn more.
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16 Days
February 10 - 13
April 14 - 17
June 23 - 26
August 11 - 14
This program will combine classroom instruction with hands-on, practical applications in the field. The class will be held at the NEPPA Training Center in Littleton, Mass, and in our new substation training area. Click here to learn more.
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8 Days
February 9
March 9
April 6
May 18
August 17
September 14
October 5
November 16
This program will provide an in-depth review of advanced metering concepts, technologies and applications for public power meter professionals.The class will be held at the NEPPA Training Center in Littleton, Mass. Click here to learn more.
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EDUCATION & TRAINING UPDATE
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NEPPA will offer the NEW Public Utility Management Program April 29-May 1, at the Water’s Edge Resort in Westbrook, Conn. PUMP now provides CEUs and by attending the spring and fall sessions you will qualify to be a Certified Public Utility Manager.
All PUMP programs include at least one session from each of the eight core educational requirements for certifications. These include:
For full information please see the NEPPA-Q Program Document on the NEPPA website under Training & Education. The program is designed for lighting board members, general managers and staff moving into management functions of public utilities.
The program is focused on interaction with the expert speakers and attendance is limited to a maximum of 20 participants.
What is the best way to prepare a new lighting commissioner for their role? Attend PUMP with them! This gives you the opportunity to give your commissioner the knowledge they need about the industry and for you to discuss your individual utility’s unique circumstances.
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On January 14 we held our first 1B Hoisting Test Preparation class at the NEPPA facility in Littleton. Although we have held the very same class all over Massachusetts, it is a different experience at the training facility due to the big screen, computers, Wi-Fi, and white board to better articulate seemingly complex information. In fact, when arduous questions arise, as they often do, we can quickly pull up pictures or videos to clarify the topic for the whole class. Having quick access to technology can truly facilitate a greater learning experience. In the future, there will be more test preparation classes for those wishing to get a hoisting license, and continuing education classes for those who already have their license. Thank you all from the January 14 class for your much appreciated questions, comments, and support. We at NEPPA are looking forward to a safe and educational 2015!   ##SHARELINKS##
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LEGISLATIVE UPDATE
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In This Issue:
APPA Legislative Rally
The APPA 2015 Legislative Rally will be held March 9-11 in Washington, D.C. APPA’s welcoming reception is the evening of March 9, with the Legislative and Resolutions Committee meeting on Tuesday morning, followed by a Keynote luncheon address before NEPPA members head to Capitol Hill to meet with their Congressional delegation.
NEPPA will hold a conference call on Feb. 18 at 2 p.m. to brief attendees on federal issues. All Capitol Hill meeting attendees should participate. Morgan Meguire will prepare talking points and leave-behinds, which will focus on capacity market reforms, natural gas infrastructure, cyber and physical security, and greenhouse gas regulations, among others. The NEPPA Legislative Committee will outline and review the key policy issues on a Feb. 4 call. Unlike prior years, no breakfast briefing will be held at the Rally itself.
To read the complete legislative update including the following topics, click the links below:
Obama Delivers Sixth State of the Union Address ##SHARELINKS##
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