Power Generation and Supply Market Recap, May 2024

Our May 2024 Power Generation & Supply Market Recap is a snapshot of the data and information we curate. We share industry drivers, notable projects, recent mergers and acquisitions, interesting reads, and updates on upcoming meetings and conferences.

To learn more about how we are helping power and coal ash industry leaders find new opportunities in their market of interest, schedule a market opportunity workshop.

Which Industry Drivers Shaped the Power Market in May 2024?

Our data team tracks new and updated industry drivers. Here are some recent drivers we have been following in May:

Michigan SB 571 - A Bill To Amend 2023 Public Act 10

• Status: Proposed
• Organization: Michigan State Legislature

On May 1, 2024, the Michigan Legislature passed SB 571 to amend the 2023 Public Act 10. The bill focuses on the requirements for prevailing wages and fringe benefits on state projects, particularly emphasizing solar and wind energy projects. It seeks to establish clear definitions and responsibilities for contracting agents and bidders while making appropriations for implementing the act and prescribing penalties for non-compliance. The bill mandates that every contract for a state project must adhere to the prevailing wage laws. Additionally, the bill introduces the concept of “state project registration,” requiring contractors to obtain a registration to perform work on certain projects.

Maryland SB0001: Electricity and Gas - Retail Supply - Regulation and Consumer Protection

• Status: Proposed
• Organization: Maryland State Legislature

On May 5, 2024, the Maryland General Assembly enacted SB 0001, which introduced significant changes to the regulation of electricity and gas retail supply in the state. Key provisions include altering a charge assessed to public service companies and allowing for the recovery of certain costs through rates. It establishes an energy salesperson license for individuals offering or selling electricity and gas supply agreements and an energy vendor license for those providing energy sales services within the state. The bill also sets conditions under which an electricity supplier can market electricity as green power, aiming to ensure transparency and consumer protection. Furthermore, it addresses various aspects of regulation and consumer protection in the energy sector, reflecting a comprehensive approach to overseeing Maryland’s retail supply of electricity and gas.

Maryland HB 1296: Electricity - Offshore Wind Projects - Alterations

• Status: Effective
• Organization: Maryland State Legislature

On May 9, 2024, the Maryland General Assembly enacted HB 1296, which mandates that the Public Service Commission (PSC) initiate a revised Round 2 proceeding to assess specific offshore wind projects. A significant requirement of HB 1296 is that the PSC can only approve offshore wind project applications if they include commitments for in-state expenditures and investments. This ensures that the economic benefits of such projects are felt within the state. Additionally, the bill obligates the PSC to develop a plan that includes a schedule for offshore wind energy procurements and the proposed amounts of offshore wind energy to be procured up to the year 2031.

FERC Takes on Long-Term Planning with Historic Transmission Rule

• Status: Proposed
• Organization: Federal Energy Regulatory Commission

On May 13, 2024, the Federal Energy Regulatory Commission (FERC) implemented Order No. 1920 to address the long-term planning of the transmission grid in response to the increasing demand for reliable electricity. The rule establishes specific requirements for transmission providers to conduct long-term planning for regional transmission facilities over a 20-year horizon and to determine funding mechanisms for these projects. The rule mandates periodic updates to long-term transmission planning to anticipate future needs and supports cost-effective expansion of transmission facilities. It also emphasizes the critical role of states throughout the planning and funding process of transmission lines.

Florida HB 1645: Energy Resources

• Status: Effective
• Organization: Florida State Legislature

On May 15, 2024, the Governor of Florida signed HB 1645 into law. This comprehensive legislation addresses various crucial aspects of energy resources within the state. The key components include:

• Allowing the inclusion of resiliency facilities in local government comprehensive plans and specified districts.
• Requiring rural electric cooperatives and municipal electric utilities to enter into mutual aid agreements for restoring power after natural disasters.
• Mandating public utilities to notify the Public Service Commission (PSC) of power plant retirements.
• Authorizing the PSC to approve voluntary electric vehicle charging programs.
• Prohibiting the construction, operation, or expansion of certain wind energy facilities and wind turbines.
• Directing the PSC to assess the state’s electric grid and natural gas facilities against physical and cyber threats.
• Instructing the PSC to evaluate the feasibility of using advanced nuclear power technologies.
• Requiring the Department of Transportation to study hydrogen fueling infrastructure to support hydrogen-powered vehicles.

Colorado SB24-218: Modernize Energy Distribution Systems

• Status: Proposed
• Organization: Colorado State Legislature

On May 22, 2024, the Colorado General Assembly passed a bill titled Modernize Energy Distribution Systems, which aims at advancing Colorado’s energy infrastructure to meet the state’s decarbonization goals. The primary objectives of the bill are:

• It mandates the Office of Future of Work to establish a grant program for lineworker apprenticeship programs in coordination with the Colorado Energy Office.
• It requires investor-owned electric utilities serving a significant customer base to upgrade their distribution systems to support state and federal decarbonization targets and standards.
• The bill introduces measures to simplify the interconnection and energization process for customers with hybrid facilities through a single application.
• It allocates $800,000 from the general fund to the Colorado Lineworker Apprenticeship Grant Program Cash Fund for the grant program.
• A focus is identifying interconnection and load hosting capacity for distributed energy resources in disproportionately impacted communities.

What Notable Power Projects Did FirmoGraphs Track in May 2024?

FirmoGraphs tracks notable projects from the proposal stage to becoming effective. Here are some of the recent notable projects we have been tracking.

$1.98 Billion Mintaka Solar Project

• Type: Generation - Solar
• Status: Proposed
• Organization: EDF Renewables Development, Inc.
• Region: Nevada

EDF Renewables Development, Inc. submitted filings on May 17, 2024, to the State of Nevada Public Utilities Commission for the Mintaka Solar Project. The project entails the development of a solar electric generating facility with a capacity of up to 1,000 megawatts (MW), along with a generation-tie line of up to 500 kilovolts (kV), a battery energy storage system, and associated facilities. These facilities will be situated on approximately 13,165 acres of federally-managed land in Lincoln County, Nevada. FirmoGraphs (FG) estimates that construction will commence in 2026, with completion expected in 2028. According to the 2023 Annual Technology Baseline (ATB), solar projects with battery energy storage systems will cost $1,975 per kilowatt (kW). Based on this estimate, FG projects the total cost of the project to be $1.98 billion.

$422 Million Paddlefish Solar Project

• Type: Generation - Solar
• Status: Proposed
• Organization: EDF Renewables Development, Inc
• Region: Indiana

EDF Renewables Development, Inc. will oversee the development of the proposed Paddlefish Solar Project. The project entails a 350 megawatt (MW) solar facility to be situated in Wells and Huntington Counties, Indiana. It is projected to generate approximately 726,642,000 kilowatt-hours (KWh) of clean electricity annually. Construction is scheduled to commence in 2026 and conclude in 2028. According to the 2023 Annual Technology Baseline (ATB), solar projects are estimated to cost $1,206 per kilowatt (kW). Based on this estimation, FG projects the total cost of the project to be $422 million.

$374 Million Geranium Solar Project

• Type: Generation - Solar
• Status: Proposed
• Organization: Orsted
• Region: Illinois

Orsted will construct the proposed Geranium Solar Project. This project is a 300-megawatt (MW) solar facility that will annually generate more than 900,000 MWh of energy, sufficient to power nearly 80,000 homes. The project will span over 3,000 acres of land in Perry County, Illinois, with commercial operation expected to commence in 2026. According to the 2023 Annual Technology Baseline (ATB), solar projects are estimated to cost $1,248 per kilowatt (kW). Based on this estimation, FirmoGraphs (FG) projects the total cost of the project to be $374 million.

$275 Million Eastern Cottontail Solar Project

• Type: Generation - Solar
• Status: Proposed
• Organization: EDF Renewables Development, Inc
• Region: Ohio

Eastern Cottontail Solar, LLC, a subsidiary of EDF Renewables Development, Inc., submitted filings on May 08, 2024, to the Ohio Public Utilities Commission for the Eastern Cottontail Solar Project. The project is an up-to-220-megawatt (MW) solar-powered generating facility on approximately 1,550 acres of land within Walnut Township in Fairfield County, Ohio. The purpose of the project will be to generate and deliver electricity to the bulk transmission system. Construction of the facility is scheduled to commence as early as 2025 and is scheduled to be in service as early as 2026. According to the 2023 Annual Technology Baseline (ATB), solar projects will cost $1,248 per kW. Based on this value, FirmoGraphs (FG) estimates the project will cost $275 million.

$187 Million Boot Hill Solar Project

• Type: Generation - Solar
• Status: Proposed
• Organization: Sunflower Electric Power Corporation
• Region: Kansas

Sunflower is partnering with Alluvial Power to design and construct the Boot Hill Solar Project. The project is a 150-megawatt (MW) solar energy project near Fort Dodge Station, the company’s electric generating facility one mile southeast of Dodge City, Kansas. Construction is scheduled to begin in 2025, and the project’s commercial operation is planned for the first half of 2026. According to the 2023 Annual Technology Baseline (ATB), solar projects will cost $1,248 per kW. Based on this value, FG estimates the project will cost $187 million.

What Were the Notable M&A Deals in May 2024?

The following M&A transactions in the Power Generation and Supply Industry stand out in the month of May:

• On May 16, 2024, Crescent Energy Company and SilverBow Resources, Inc. announced that they have entered into a definitive agreement pursuant to which Crescent will acquire SilverBow in a transaction valued at $2.1 billion.
• On May 20, 2024, Phillips 66 announced it has agreed to acquire Pinnacle Midland Parent LLC from private equity firm Energy Spectrum Capital for cash consideration of $550 million in a strategic move to expand its natural gas gathering and processing footprint in the Midland Basin.
• On May 28, 2024, Energy Transfer LP and WTG Midstream, LLC announced that the parties have entered into a definitive agreement pursuant to which Energy Transfer will acquire WTG Midstream Holdings LLC in a transaction valued at approximately $3.25 billion.

What We Are Reading

Here are some recent articles our team has been reading:

• $6B in Inflation Reduction Act tax credits for advanced energy projects open this month
• AEP issues 2024 corporate sustainability report
• US adds 5.6 GW of utility-scale clean energy in Q1, up 28% year-over-year: ACP
• Indiana Utility Regulatory Commission approves I&M Powering Our Future Plan
• U.S. coal-fired electricity generation decreased in 2022 and 2023
• Ohio’s Electric Cooperatives: Ohio, 26 Other States, NRECA, File Lawsuits Against EPA Over New Power Plant Rules
• Biden’s $1.6 Trillion Investment In Green Energy Sector Has Hit Stonewall In The Form Of Unspent Cash
• News: Federal Government Makes Huge Investment In Texas’ Grid Reliability And Clean Energy
• DTE seeks 120 MW of standalone energy storage in Michigan
• DC Circuit rejects stay request, paving way for EPA to implement power plant carbon rule
• Ameren 2024 sustainability report unveils new 20-year plan for Missouri energy needs, energy assistance
• New York State PSC grants final approval to Empire Offshore Wind
• AEP selling its distributed resource business to Basalt Infrastructure Partners
• Iberdrola to acquire remaining 18.4% of Avangrid in $2.6B deal
• National Grid plans 5-year, $35B investment in New York, Massachusetts
• Entergy Louisiana plans 3 GW solar expansion, citing demand from heavy industry
• EPA denies Alabama’s coal ash permit program application
• BOEM releases final Environmental Impact Statement for New Jersey projects
• CAISO board approves $6.1B transmission plan with focus on access to clean energy
• APCo plans line upgrades: Appalachian Power planning significant Christiansburg line upgrade project
• Portland General Electric joins Allete, Grid United on $3.2B North Plains transmission project
• New Jersey accelerates offshore wind schedule, pauses transmission planning, and settles claims with Ørsted
• Earthjustice leads lawsuit seeking stricter EPA coal plant wastewater rules
• Otter Tail case lays bare how Minnesota and N.D. look at renewable energy differently

What Top U.S. Environmental Companies Blog About

To stay abreast of industry marketing trends, we regularly review blogs of the nation’s top consulting and construction firms. These are some notable customer-focused blogs in May.

TRC Helps Secure $4.4 Million Grant for Otter Tail Power Company’s Next-Generation Grid Resiliency Program

On May 1, 2024, TRC Companies, Inc. announced in a blog that they secured a $4.4 million grant for Otter Tail Power Company’s Next-Generation Grid Resiliency program to enhance pole integrity, vegetation management, drone and AI-enhanced inspections, and substation repairs. The grant, awarded through the DOE’s Infrastructure Investment and Jobs Act, aims to strengthen North Dakota’s electric grid. Craig Cavanaugh, President of TRC’s Intelligent Grid Sector, highlighted the grant’s role in ensuring reliable power delivery and advancing sustainability.

Alberici to Build Two Utility-Scale Solar Projects in Illinois

On May 8, 2024, Alberici has been selected by Adapture Renewables, Inc. (ARI) as the engineering, procurement, and construction contractor for two 128-MWdc solar projects in central Illinois. These utility-scale projects will each consist of over 232,000 solar panels and are expected to commence later this year, with commercial operation slated for early 2026. The construction will generate over 300 jobs and provide an economic impact exceeding $250 million for local communities. The electricity produced will power more than 34,250 homes and will be purchased by a leading social technology company through an Environmental Attributes Purchase Agreement. Peter Kozicz, CEO of Alberici, expressed pride in partnering with ARI, highlighting Alberici’s extensive experience in renewables and their commitment to delivering clean energy and creating jobs. Alberici, along with Flintco Renewable Energy, will manage and execute the projects.

Meeting Planner: Upcoming Power Industry Events

In this over-digitized age, there is no replacement for face-to-face meetings with your prospects and customers! We track meetings of interest to our customers serving the US power generation and supply industry so you won’t miss upcoming meetings and deadlines. Also, FirmoGraphs has recently implemented a free-of-charge service for tracking notable infrastructure events.

Meetings in June and July 2024

Early Bird Registrations

• Event: EC Commercial UAV Expo
• Dates: September 3, 2024 - September 5, 2024
• Deadline for Early Registration: July 14, 2024

How FirmoGraphs Can Help

To learn more about how we are helping power and coal ash industry leaders find new opportunities in their market of interest, schedule a market opportunity workshop. Contact FirmoGraphs to see the underlying documents behind the notable projects above.