After the years of inconclusive resource planning, months of contested case proceedings, and days of oral argument, discussion and review that led to today’s deliberations, the Minnesota Public Utilities Commission (“Commission”) unanimously decided not to decide. The ultimate question before the Commission was what capacity needs had been determined in the record and what should…

If you are drafting a liquidated damages clause that applies Texas law, a decision today by the Supreme Court of Texas might encourage you to hire an oracle. Because if you negotiate a liquidated damages provision in a “second-look” state without using the power of divination, you may be surprised when a once-reasonable estimate of damages becomes unenforceable because of subsequent changes in the market.
Continue Reading Negotiating a Liquidated Damages Clause in Texas? Get Out Your Crystal Ball.

NV Energy is in the market for solar. On March 10, 2014, the utility issued a Request for Information (“Solar Site RFI”), asking developers to help identify potential sites for solar projects that would be 20 MW AC or greater in size and are sufficiently developed to meet a 2016 commercial operation date. 

The Solar Site…

Yesterday afternoon, the Minnesota Public Utilities Commission approved the methodology for calculating value of solar (VOS) tariffs in Minnesota as developed by the Department of Commerce. In doing so, Minnesota became the first in the nation to adopt a VOS tariff methodology.

The Commission was required by statute to take action on the VOS calculation methodology by the end of the month. It had three options: to approve it as proposed, reject it, or approve it with modifications and with the consent of the Department. For background on the Department’s January 31st recommendation, see our blog posts here and here. The Department subsequently included several modifications affecting the fuel price escalation factor, the avoided distribution capacity cost, and the environmental cost categories.

In its ruling, the Commission approved the Department’s methodology, as amended, by a 3-2 vote.Continue Reading Value of Solar Achieves a New Dawn in Minnesota

Intermittent resources create unique challenges for 21st Century Utilities, RTO’s and System Operators. The now infamous "Duck Chart" highlights a key element of the problem — central station thermal plants cannot ramp efficiently, leading to "worst of all" scenarios where the benefits of renewables are not fully utilized and central station plants operate inefficiently for…

Xcel Energy, Minnesota Power, Center for Energy and Environment, George Washington University, and other stakeholders participated in the first e21 Initiative meeting on February 28. The e21 Initiative aims to develop a new or adapted regulatory framework that addresses the challenges of the evolving energy economy and shifting technological landscape. There will be three phases…

Democratic legislators in Wisconsin plan to unveil a plan this week that would require investor-owned utilities, municipal utilities, and rural electric cooperatives (“electric providers”) to increase their renewable electricity portfolios to 30% by 2030. Wisconsin’s current renewable portfolio mandates that electric providers obtain 10% of their retails sales from electricity generated from renewable resources by…

My colleague, Daniel Lee, followed oral argument yesterday in the U.S. Supreme Court’s consideration of federal greenhouse gas (GHG) regulation in Utility Air Regulatory Group v. EPA, and provides this analysis:

During oral argument for Utility Air Regulatory Group v. EPA this Monday, the Supreme Court conflicted over a number of issues including the application of…