NEPPA eNewsletter

I know this is being published on April 1 and I had previously attempted to meet the satirical wit of my predecessor by publishing an April Fools' Day article, but I assure you, that is not the case here.

I have decided to step down as Executive Director of NEPPA on April 17. My time here overall has been a great experience. The opportunity to learn the ins and outs of the public power industry and meet the great people that make up the profession has been a real privilege. 

NEPPA is fortunate to have some amazing volunteers like Mike Kirkwood and Sharon Staz who have done such a great job voicing and representing the vital interests of public power in Washington. They made it easy to take my previous experience and apply the public power issues. It was a nice feeling to see the close relationships that many members from the various states maintain with their elected leaders.

When I first arrived, power supply to me was like a great big spider web! While it had some form of pattern and design with a function, the actual market was a mystery. Steve Kaminski and Brian Forshaw were the best mentors anyone could ask for. These two gurus of power supply often have the unrewarding task of analyzing and communicating the ISO construct and working with participants on minimizing the damage from bad decisions. They get the joy of re-explaining these factors to people like me several times until we can fully grasp them. The Power Supply Committee is lucky to have these individuals leading the way.

My one regret upon leaving is not seeing the repair or replacement of the ISO created capacity market. I hope that Congress can pierce the incestuous veil between FERC and ISO New England. When speaking with leaders from around the country, ISO-NE has become known as the spoiled screaming child in the supermarket whose parent (FERC) gives them whatever they desire to avoid their tantrums. No matter where I am I will support three changes that need to be made to protect consumers:

• An independent body that sits and reviews RTO markets, proposed changes and RTO budgets;
• A Federal law that prohibits RTOs and other entities that are created and overseen by Federal agencies from lobbying or paying for lobbying services. You do not want to know how much is spent by ISO NE on this;
• A return of the right of self supply to public power entities and/or voluntary capacity markets.

The consumers of New England deserve better and do not deserve the highest rates in the nation due to poor constructs and unchecked bureaucratic growth at ISO NE.

It has been a real pleasure meeting and observing the crews of NEPPA members. The strong commitment to their communities by member utilities' staff is a true testament to all those in public service.

Finally, thank you to John Bilda, Barbara Grimes and Calvin Ames, the Presidents I served under. These individuals worked tirelessly managing their utilities and then still found time to address NEPPA issues. 

I leave you all in the capable hands of the NEPPA staff.

 

 

In honor of our 50th Anniversary, we continue to feature significant figures from our past. This month we spent time with Bob McDiarmid. He is a recognized leader and authority on federal energy regulation, specializing in matters of interest to municipally- and cooperatively-owned utilities.  In the course of briefing and arguing dozens of cases in the courts of appeals and the U.S. Supreme Court, Bob has helped those courts reach resolutions which have significantly changed the pre-existing perception of many participants in the industries involved.  These include three seminal cases in the U.S. Supreme Court, which dealt with the interrelation of the regulatory schemes chosen by Congress and the principles of the antitrust laws.

Here are a few excerpts from the conversation:

What was NEPPA’s greatest accomplishment in 50 years?
That itself requires some background, I think. When NEPPA was formed you had several things going on, you had the proposition that nuclear power, which is not going to be available to anyone other than the members of the "big 11 power loop", nor the IOU’s at the time. It would be too cheap to be here. You had the idea that there would be transmission being built that didn’t then exist in order to handle these proposed nuclear plants which would tie the region together. You had a history of not much cooperation going on among the municipals and the co-ops. NEPO was being proposed , we weren’t going to be allowed into that of course, and so there was a for access that was going on, which required cooperation by the various cities and co-ops and fire districts and what have you in New England. The fact that it’s managed to hold together and survive with a whole lot of improvements is a tremendous historic event I think.  

What was NEPPA’s most valuable program?
Actually, I think the most valuable program was a program it didn’t formerly have. The programs it formerly had were those everybody could agree too. Those were training, your lineman training, board member training, and those kinds of things. But that wasn’t the primary thing I think that came out of this. You could easily mention power supply and power supply was at least, as I remember it, not really one of the things that NEPPA itself did but one of the things that came about because of NEPPA. Things like the access to NEPOOL, access to transmission, a lot of things that NEPPA facilitated but didn’t formerly do. So I think NEPPA’s facilitating of a lot of things was the most important things it did. 

What did you see as NEPPA'S primary role?
Historically, and I’ve got to qualify this by saying, I have been pretty much retired for the last 7 years so I don’t know for sure exactly where things are right now but historically I think it’s most important role has been providing access and providing a central point for what can be called advocacy in Washington. That’s been a thing we were historically lacking until NEPPA picked up that role trying to sort of coordinate the mission between the muni’s and co-ops in New England and Washington and that’s been a pretty important factor and will be one in the future. 

What do you see as NEPPA’s primary role in the future?
Given the fact that I think there is a lot of resistance, there has been historically a lot of resistance at least, to attempting to coordinate among members across state lines, I think is probably going to be doing the same thing it’s been doing in the past, which would be a facilitation role. You will continue to do the formal training kind of things that you do and do very well, but I think the important thing is if we can get participation on other things. 

How did NEPPA help you personally?
I’m not sure that I’m the right person to ask that. I worked with a number of NEPPA heads over the years, Chip Stockford, Andrew Natsios and Pat Hyland. I never really worked very much with Larry at all. I’ve enjoyed working with them all; I don’t know that NEPPA has helped me directly. 

If I used the word "visionary," what NEPPA employee or member comes to mind?
You know there are an awful lot of people who were visionary over the course of nearly 50 years of dealing with NEPPA. There are a lot of members and I really don’t want to omit any but the ones that come to mind are people like Frank James of Holyoke, Johnny Corkis of Chicopee, Mike Collins of Wakefield, Jim Baker of Shrewsbury, Horst Huehmer of Hudson, Curt Lanciani of course, Pierre Hereaux of Littleton, John Pillsbury with NHEC, Walter Cook, Bill Gallagher, oh I’m sure I’m overlooking some, but there are a batch of people who had a vision and who managed to make a lot of it come true and worked very hard to do so. 

Do you feel NEPPA should play a major or minor role in Washington?
For its members? Members are a lot stronger if they can play a united role; any role almost has to be played with NEPPA as a part of it. 

How do you think the challenges today compare to the challenges that your generation faced? Specifically, how the two periods of business model changes compare.
The whole history has changed of course, in fairly major ways, and in the process of that NEPPA members have gained quite a lot of information and access in power, comparatively. So to the extent they can pull together as opposed to pulling in different directions, it’s a lot better. At the time I got involved, NEPPA members really had no power or very little in almost any way, to the extent that they owned any kind of generation; it was small and efficient and costly. There were NEPPA members who stayed up and running in the 1965 blackout simply because they were not interconnected. And they were used to start the rest of the system but they shouldn’t have been in that position to begin with and that cost them a lot of money and it cost their citizens an awful lot of efficiency. That’s no longer a serious issue; now we’re getting down to the point where I think the next phase is going to be revision of reliable wire service and that’s something for which NEPPA members are very well suited and very well situated because they either have people on site whereas some of the IOU’s have to come 100 miles. 

What has been the biggest change in the industry over the past 50 years?
The biggest thing has been the consolidation of the industry and the additional access that is afforded to smaller entities such as those at NEPPA. 

What about the biggest event?
Separation of generation and transmission.

What do you think is the biggest influence of the future in the industry right now?
I’m looking for a way to answer that coherently. That is a fairly difficult question. I think the best answer to that is whenever we thought there was a biggest influence for the future, it turned out to be wrong. It’s probably wrong to try to predict that; we all thought nuclear energy too cheap to meter and now as someone has pointed out it’s too expensive to matter. Now it’s again more likely to be appropriate and if we are having to deal with global warming issues, will there be a tax on carbon emissions or equivalent, if there is, that will be very important but we don’t know if that’s going to happen. And if there is one how will it be done. I think all that one can say is just keep watching to make sure we get on top of what’s happening (laughing). 

The NEPPA Regional Power Supply Committee (RPSC) met on February 27 at NEPPA’s offices. It was the first face-to-face meeting in a long time and partly aimed at getting the RPSC revitalized according to committee chair Steve Kaminski of New Hampshire Electric Co-op. "We’ve had attrition and turnover in the NEPPA member systems over the last few years, so many long-time members of the committee are no longer around or are approaching retirement. Growingly urgent concerns about the impacts of rising wholesale electricity and transmission costs on consumers and the New England economy call for public power systems here and around the country to be well-organized and coordinated to effectively represent our consumer-owners’ interests."

  

While the committee itself has not been meeting regularly, the committee’s work has been attended to through regular monthly calls of the RPSC’s "steering committee" that was established in 2006 when the RPSC decided such a committee, and some consulting help, was needed to follow and effectively address the numerous and endless power supply and transmission issues flowing out of ISO-New England, through the several NEPOOL committees and eventually to FERC. Steering committee participation is robust and usually includes a larger and broader group than the RPSC itself. The monthly steering committee calls use the "Monthly Steering Committee Report" produced by NEPPA consultant Customized Energy Solutions (CES) to sort through major issues and to strategize on how NEPPA members, as NEPOOL Public Entities Sector Participants, intend to weigh in and act on items that come up for vote. Highlights of the RPS meeting included:

• a very thorough presentation by Nancy Chafetz of CES, reviewing major developments in NEPOOL and ISO-New England in 2014, and those already underway and expected in 2015;
• a discussion led by Brian Forshaw of CMEEC on the status of the New England Governors’ initiatives for additional gas pipeline capacity and transmission for renewables;
• a report from NEPPA Legislative Committee chair Mike Kirkwood on recent efforts and preparations for the APPA rally.  NEPPA system representatives will engage the New England congressional delegation and their staffers on the need for action and possibly legislation to change the course of FERC and the ISO that is leading to large increases in costs to consumers, particularly in the Forward Capacity Market; and,
• plans to get 2014 load data from NEPPA members so we can update the Public Entities Sector allocation of NEPOOL expenses.

The final agenda item was on re-constitution of the RPSC with members, former and new, who have indicated an interest and willingness to serve. Steve proposed to work with the Executive Director to put together a proposed committee roster for presentation to the NEPPA President and Board as contemplated under NEPPA’s bylaws. "At the same time, we should continue as in the past, to welcome all NEPPA system managers and power resources staff members to participate in the activities of the RPSC and steering committee".

Over 20 New England public power representatives attended the 2015 American Public Power Association legislative rally in March.  We called upon 14 congressional offices, attended committee briefings, and many of us were intrigued to hear Robert Woodward share his perspectives on people, places and politics!

The New England delegation met with staff members of the House representatives because the House was on recess.  From what I heard and experienced, the staff members were receptive and engaged in our discussions on our areas of concern.  Not having any specific requests for action didn’t seem to deter the emphasis we all made on how the New England market just isn’t working on behalf of the consumer who, after all, should be everyone’s concern.  Thanks to good talking points and information sharing among ourselves with data input from Steve Kaminski and Brian Forshaw, the congressional staff members heard our points and stand ready to assist NEPPA in working to reform the existing market constructs.

The Senate was in session and many members of NEPPA met with one or more of the Senators from their respective states.  During these sessions, staff and the Senators got engaged in our discussion of the dysfunctional New England market.  These offices as well have indicated that they are prepared to work with NEPPA on market reform and one Senator from New Hampshire stated "perhaps we need a legislative fix."  This statement reflects in some measure how far NEPPA has come in terms of members of the delegation trusting our concerns and knowing that we represent the consumer first and foremost.  These visits are critical to getting New England’s messages front and center with the members of our delegation.  

The Legislative Committee will continue to work with all these offices and assist members in getting information and answers to their representatives as well.  Morgan Meguire staff members have already provided follow-up to several offices.  The recent meeting with FERC Commissioner LaFleur spearheaded by Rep. Kennedy of Massachusetts is clearly indicative of engagement on the part of members of the New England delegation regarding the high cost of energy to New England customers in this current market.

Pete Moscariello and Scott Farris, Co-Owner's of Personal Best

Jennifer Kauffman, The Results Group

Victoria Stevens, Hull Lifesaving Museum


To see more information or to register, please click here! 

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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.

Join us this June 3-4 for NEPPA’s annual E & O conference at the Danvers Doubletree.  Located north of Boston, this conveniently situated venue is easily accessed via Routes 95 and 128.  

This year will feature topics of interest to both line workers and engineers alike.  Sessions on LED lighting, mobile technology and the benefits of VAR support will be featured, and Jay Blake, our keynote speaker, will focus on both safety and personal motivation. Please see the links below to explore the Doubletree and to preview Jay’s message:

http://doubletree3.hilton.com/en/hotels/massachusetts/doubletree-by-hilton-hotel-boston-north-shore-BOSNSDT/index.html

http://www.followadream.net/

On Thursday morning, there will be sessions on both OSHA updates with Steve Socoby and an engineering focus regarding Distributed Generation with David Morrissey and Ryan Bolduc of Wunderlich-Malec.    
                                           .  

Lastly, you won’t want to miss the opportunity to meet Scott Zolak, former New England Patriot and current sports radio host with 98.5 the Sports Hub.  Scott will assist with drawing our raffle prizes, sign autographs, take photos, and tell some inside stories.  

Watch our website and check your mail for registration information in the coming week!

NEPPA is offering 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:

• Industry knowledge
• Management skills
• Financial
• Human Resources
• Technology
• Communications
• Legislative & Regulatory
• Boards & Commissions

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 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.

To register or learn more, please click here! 

• Congressional Focus: Chambers pass Budget Resolutions before two-week break, Reid to retire ...
• Capacity Markets: New England delegation holds Summit on energy prices with FERC’s LaFleur, ISO-NE’s Van Welie...
• Energy Policy: Shaheen-Portman passes in the dead of night, Federal agencies work together on hydropower ... 
• Cyber Security: Multiple bills moving through House, Senate advancing CISA...

The week of March 23, the House and Senate passed respective budget resolutions for fiscal year 2016, which will provide a blueprint for each Committee’s tax and spending funding levels for the remainder of the year.  The Senate debate featured dozens of votes on wide-ranging policy items. Hundreds of amendments were filed, including many on energy and environmental issues, but only some received a vote.  

The bills are not legally binding and do not become law, but they do have legislative significance.  Aside from getting Members on the record, budget resolutions include "reconciliation" instructions, which provide procedural "fast-track" benefits that can be used to move controversial tax and spending legislation.  

The following day, in a surprise to many, Senate Majority Leader Harry Reid (D-NV) announced he would not run for reelection. He has endorsed Sen. Chuck Schumer (D-NY) to replace him as the party’s leader.

To read the complete legislative update including the following topics, click the links below: