2023-12-21 00:00:00 - Joint Committee on Telecommunications, Utilities and Energy
2023-12-21 00:00:00 - Joint Committee on Telecommunications, Utilities and Energy
(Part 1 of 2)
SHOW NON-ESSENTIAL DIALOGUE
REP ROY - COMMITTEE CHAIR - The time now being 10:05, I call this, hearing for the joint committee on telecommunications utilities and energy, to order. And today, we are hearing, just, some late-filed bills. There's only, 1, 2, 3, 4.
It looks like 5 on the list, so I don't expect we will be here, for a long period, but we must get these bills all heard so that we can, get to work on preparing, a new bill for the session. There is a 3-minute rule, but, I think we can, be a little bit simple, given that, we don't have many witnesses testifying. But let me begin, by Recognizing, who is here from78 the committee.
I know that Representative, Hawkins is with us and representative Moschino. Do we have any others that you know? And rep, Lipa Garabanian is with us as well. As more folks, step into the hearing. I will introduce them as well. So, let's begin. 1st witness who signed up to testify is Kat Burnham, senior principal for Advanced Energy United. Kat, the floor is yours.
SPEAKER2 - Thank you, mister chair. Can you hear me okay?
SPEAKER1 - We can hear you just fine, and we can see you. You're all wrapped up. Is it cold where you are?
SPEAKER2 - It's a little chilly. It's that time of year. I like to be cozy.
SPEAKER1 - Well, we have the heat on in room a 2, so you're more than welcome.
KAT BURNHAM - ADVANCED ENERGY UNITED - HB 4222 - Well, I'll get started. I won't up too much of your time. Thank you, chair Roy and members time. Thank you, chair Roy and members time. Thank you, chair Roy and members of the committee. I'm Kat Burnham here in support of House Bill 4222 and set up SB 2531.
On behalf of Advanced Energy United, we represent the full range of advanced energy technologies, and our member companies are united in Achieving 100% clean power and transportation electrification.
I don't need to tell this committee, that MAS is a leader on climate action thanks to strong decarbonization goals and a dedication to electrifying heating and transportation. But to meet these targets, our electric grid needs significant improvement. Our current infrastructure is not sufficient, and we need additional grid capacity urgently.
Siding and building166 new transmission lines is a necessary step, But that can be time-intensive and come with considerable upfront costs. Fortunately, tools like grid-enhancing technologies known as GATS can be deployed swiftly. GATS makes the power grid more reliable, flexible, and efficient. There are three widely accepted GATS as defined by the Department of184 Energy and other industry leaders.
The first is dynamic line rating, which measures the real-time capacity of power lines based on measurements of ambient conditions like temperature or wind. The second is advanced power flow control which allows operators to reroute power from constrained areas to places with available capacity. And 3 is topology optimization, which identifies bottlenecks and prevents line lines from being congested.
Other advanced technologies distinct from GES can also the grid as well as safely and quickly increase the ability to integrate more renewable energy. That includes advanced conductoring, which replaces old cables and leverages the use of existing infrastructure. Advanced cables can deliver up to twice the current of legacy wires and reduce line loss by as much as 30%.
The third is I want to mention is energy storage as a transmission asset. Like Ghents and advanced reconductoring, Storage or transmission assets typically have faster development timelines and smaller construction disturbances. These technologies have demonstrated that they can work, and we offer additional details and specific examples in our written testimony.
The proposed legislation here is very practical and straightforward in scope. It requires that when a distribution company proposes interstate additions to the transmission system in a filing, they need to analyze multiple strategies to address the situation. Looking at GATS storage as a transmission resource in advanced reconductors and then sharing that analysis with the DPU.
All of these advanced energy solutions are important tools for the clean energy transition. I just want to, respectfully request that the billing would be adjusted to clearly distinguish that advanced280 conductors and storage as a transmission asset are separate from the definition of gas284 and are unique solutions in and of themselves.
This legislation appropriately elevates grid technologies in ways that maximize the capacity of the grid and their achievable near-term solutions. So with that,295 I encourage the committee to report these bills out favorably. Thank you so much for your time and consideration of your testimony of my testimony. SHOW NON-ESSENTIAL DIALOGUE
SPEAKER1 - Great. I
SPEAKER2 - won't have any questions.
ROY - Well, thank you so much. Just one question, I don't know if you've been following the clean energy transmission working group. But I know that this was an314 important piece, coming out of, that318 particular group. There was some discussion about as opposed to calling it, grid-enhancing technologies that we refer to them as advanced technologies, and I wonder If you had any thoughts on331 that. Yeah.
BURNHAM - I mean, speaking for myself, I think it's important to distinguish grid-enhancing technologies because they are underutilized by utilities right now, and we want to make sure that they're elevated as a solution for the three types of gets that I mentioned. But what I think the Bill does well is it acknowledges there are other advanced energy solutions. So I think it's we can do both. We can elevate GETS as a specific solution, but also elevate advanced technologies more broadly within the scope of the362 bill.
ROY - Okay. Would that be through the364 definition section? Oh, I saw those.
BURNHAM - But I would take advanced, reconductoring and story does a transmission asset out from under the umbrella of GETS, but I think all three of those types377 fall under the umbrella of379 advanced solutions. Great. Hopefully, that makes sense.
ROY - Thank you so much. Let me see if our, other members of the committee have any questions. I see no questions from the rest of the committee, but I do see that, the vice chair, Hagerty, has joined us. So, thank you very much for your testimony, and400 look forward to working with you further on this, legislation.
Next, the witness signed up to testify is408 Allison Hilliard from, Reimagined Power. Allison, are you with414 us? Allison going once. Alright. We will move426 on. If Allison shows up, we will recognize you. But the next witness signed up is Sterling Clifford From, Sunnova Energy. Sterling, are you with us?
STERLING CLIFFORD - SONOVA ENERGY INTERNATIONAL - I am. Thank you. Alright. Appreciate the opportunity to talk to you today. My name is Sterling Clifford. I'm senior government affairs manager for Sonova Energy International. We are a leading residential solar and storage company.
With approximately 400,000 customers in 54 US456 states and territories and a significant presence in Massachusetts, I want to thank you for your leadership in the promotion of solar, residential solar specifically, to achieve the commonwealth's climate goals, and, to grow renewable energy presence across, New England.
I'm here today to talk specifically about SB 2529 and act to reduce the financial penalty imposed on customers who shift heat pumps, electric appliances, and electric vehicles. We must agree for decision makers to examine every available tool to help the Commonwealth achieve carbon neutrality, but the idea of an income-based fixed charge to increase electrification adoption is an unproven strategy that we believe, will create more problems than it solves.
Fixed charges Can increase electrification, but not necessarily beneficial electrification. According to 15 rate design experts and economists in a study conducted by Flag Staff research based on PG and E's fixed income charge proposal in California. The energy unit users who stand to save the most money from fixed charges are high-energy users.
A single-family home with a swimming pool,531 for example, will receive cheaper energy at the expense of lower electricity users like apartment renters. In California, legislators are already working to repeal the income-graduated fixed charge rate design law because of problems raised with this process. Solar is a key pillar for achieving state carbon reduction goals, and installations are already behind in making the 2050 goal.
Changes to the rate design structure when the DPU is still working to implement changes to the smart program from 2021 and 2022 would further delay important updates to the smart incentive program. We want to look forward to working with policymakers on rate design proposals, and we want to have a robust discussion on how to build an electrified future that reflects the values of distributed generation. But we request that this bill be tabled until a more comprehensive review of rate design can be conducted, including the impact of any rate design changes on the development of solar in the state. Thank you. SHOW NON-ESSENTIAL DIALOGUE
SPEAKER1 - Thank you very much for your testimony. Are594 there any questions, for this particular witness?
I'm seeing none. Thank you very much for your testimony. The next witness who's scheduled to testify is Thad Culley, from Sunrun. Thad, are you with us?
SPEAKER4 - Hi. I sure am. Thank you, chair Enroger.
SPEAKER1 - Great to see you.
THAD CULLEY - SUNRUN - Great to see you, and happy holidays to everyone. So my name is Thad Culley. I'm a director of public policy for Sunrun. Like Sonova, we're also in the business of residential solar and storage services and also have a significant presence in Massachusetts. So I won't repeat, in the interest of time, I won't repeat a lot of the comments that SHOW NON-ESSENTIAL DIALOGUE
SPEAKER1 - We have plenty of time. You're not gonna you're gonna you're not gonna run out
SPEAKER2 - of time.
CULLEY - Okay. Well, that you've blown my cover. In the interest of not, getting over my skis then, I will keep my comments, very brief here, and not repeat what my colleague, Mr Clifford just said. But when we look at electrification and increasing electrification and achieving affordability, Which is intense in this bill.
663 We663 agree very much with those. Those are values we share. However, we do, as mister Clifford points out, oppose the means to get there, which is presented in this. We do think that's misaligned with, the other goals of of Massachusetts to get to, to reach climate goals.
So with that in mind, when we think about electrification that's already683 happening and it's happening at a pretty quick pace, we look around the country, and one of the biggest trends we see is load growth. Declining load among utilities had been, you know, a fear of rooftop solar695 and energy efficiency. That was one of the reasons in the last 10 years we've seen an increase in the use of fixed charges, sought by utilities but often denied by the utility regulators, as a means to stave off708 that.
We're in a new paradigm now where Increased sales of712 electricity, you know, kind of erase that714 problem of reduced sales. The problem we need to solve for now is, probably to paraphrase a movie from my childhood that scared me we're going to need a bigger grid. We're going to have to build a bigger grid to handle this load.
Solutions from the customer side, either energy efficiency, rooftop solar, or battery storage are gonna be critical to helping mitigate the cost of those, those necessary upgrades. So I would I would contend that, You know, mister Clifford's recommendation to table this for further conversation, has a lot of merit.
There are a lot of other complicated issues, and I believe the DPU would be a necessary party to help resolve, a path forward on this. And with with that, I certainly, would welcome any questions, from the chair or any of the members. Thank you so much for762 the opportunity.
ROY - Thad, thank you for your testimony to the766 extent, you were offering up a trivia question. That movie would be Jaws. Correct? SHOW NON-ESSENTIAL DIALOGUE
SPEAKER4 - Absolutely.
SPEAKER1 - Excellent. Any questions for, Thad?
I'm seeing none. Thank you very much for your testimony.
SPEAKER4 - Thank you.
SPEAKER1 - Next witness who signed up To, testify today is Kyle Murray. Kyle, are you with us?
Yes. I am. Alright. The floor is yours. Great. Great to see you.
KYLE MURRAY - HB 4222 - SB 2531 - Good to see you. Usually, I like to go to these in person, but, You caught me off guard, with this, I'm actually on vacation right now, but thought this was important enough to be here today.
My name is Kyle Murray and I'm the Director of State Program Implementation and Massachusetts Program Director for Acadia Center. Acadia Center is a non-research and advocacy organization that works to advance bold, effective, and equitable clean energy solutions.
The organization has a long history of advocacy for creating a fully integrated, Flexible, and low-carbon energy grid. Addressing these issues will help the Commonwealth address, and advance a future of lower ratepayer costs, More local jobs, fewer greenhouse gas emissions, and better public health.
I'm also a member of the Commonwealth's Grid Modernization Advisory Council, though I am not here in that capacity Today. As all of you in the committee are aware, the transition to our fully electrified future will require significant, Building and spending to ensure857 that we have the proper infrastructure in place to manage future electric demand.
However, the scale of the problem isn't exactly as dire as has been presented. You know, some estimates call for a tripling of our energy871 load. We only have scratched the surface of, you know, exceptionally cost-effective877 solutions like Energy Efficiency or Demand Response.
So make no mistake, there will be a need for significant investment in build-out. However, there's still so much to be done with what we have, You know, just have now. So, SB 2531 filed by Chair Barrett, and HB 4222 filed by you, Chair Roy, propose incredibly important steps down these paths, and I am904 here in favor of those bills.
They focus on grid-enhancing technologies, which, as the bills define, are any hardware or software technology that enables enhanced or more efficient performance From the electric transmission system, including but not limited to dynamic line rating, advanced power flow technology, Topology optimization, advanced reconductoring, and energy storage when used as a transmission resource.
Put simply, grid-enhancing technologies are often credibly cost-effective technologies that help us maximize our existing infrastructure. For example, 1 example I recently heard involved a Sensor that cost around $100,000 being installed. This sensor alone negated the need for an infrastructure expansion that would have cost 1,000,000 dollars.
So this legislation would, for base rate proceedings and other proceedings in which a distribution company proposes capital investments or additions to the transmission system require the distribution companies to conduct a cost-effective, cost-effectiveness and timetable analysis of multiple strategies, including but not limited to the deployment of grid enhancing technologies, advanced reconductoring, and974 energy storage used as a transmission resource.
This is a common sense approach to help us maximize our grid resources and save ratepayer money ratepayers' money. Now, We are still, reviewing this legislation, and987 I think we'll probably follow up with a few, tweaks to991 the language in writing,995 or995 proposals995 for995
tweaks to the language in writing. But I did want to show up today and just, you know, not my strong support for these proposals. I think they're really, really visionary and really will help us take advantage of what we have now, on the1006 grid. So, thank you, thank you to the committee. Thank you, mister chair, for the opportunity to testify today, and I'm happy to take
ROY - Well, thank you for your testimony, and, thank you for taking time away from your vacation. But, You know, we're trying to move these bills as quickly as possible because, as you well know, there is a climate crisis, on our hands, and The faster we move, the the better we all are. Let me ask, folks on the committee, any questions for this witness? I'm seeing none. SHOW NON-ESSENTIAL DIALOGUE
Thank you so much for your testimony. Want to let Folks know that, representative Howitt has also joined us, for the hearing. So welcome, Representative Howitt. The next witness signed up to testify is Velecia Soudicline, from Solar Energy, Industries Association. Velez, are you with us? with us?
SPEAKER6 - I am. Can you hear me and or see me?
SPEAKER1 - We can do both. So, welcome, and, You have the floor.
VALESSA SOUTER - KLINE - SB 2529 - ( R ) Fantastic. Thank you so much. Chair Roy, members of the TUE committee, my name is Vanessa Suterklein. The northeast director for the Solar Energy Industries Association better known as CF.
We represent both the US solar and storage industries. We've got over 1000 members and we work with partners as well, to shape market rules that promote competition and the growth of reliable1094 low-cost solar power. It's worth noting that there are, I think we're just shy of 500 solar companies located in Massachusetts, supporting more than 11,000 jobs.
That's in addition to national firms that are conducting business in the Commonwealth. First and foremost, I want to1114 recognize the ongoing work of this committee to ensure that Massachusetts is the climate leader. We would not1120 be where we are today without your work. I appreciate the opportunity to provide testimony on S. 2529 today.
You've heard from my colleagues previously, so a very similar message here, so I'll keep it brief. SIA values the impetus behind SB 2529, namely increased electrification and affordability. We strongly support both objectives. Further, SIA understands the need for a comprehensive look at rate design in the Commonwealth to ensure that electric rates are structured to meet the needs of consumers and are in alignment with our shared decarbonization goals.
SEIA and our member companies are concerned, however, that the current structure of the bill could lead to unintended consequences, Such as discouraging efficiency and adoption of emissions-free solar. Specifically, reducing the potential for bill savings available through volumetric rates would
Design that balances affordable electrification with the adoption of clean energy is essential. I don't need to belabor this here. But we Greatly appreciate the work of this committee. We also recognize the work of DPR and DOER who issued an RFP last week, I think, on this issue.
We look forward to working with the Commonwealth as we had as we tackle this issue, sort of holistically, and methodically, and ensure that there are no Unintended consequences, and that solar is supported throughout the process. Thank you for your time and attention. the process. Thank you for your time and attention. SHOW NON-ESSENTIAL DIALOGUE
SPEAKER3 - Thank
SPEAKER1 - Thank you so much for your testimony. Are there any questions for this witness?
I'm seeing no questions. Thank you very much for your testimony. Next witness, scheduled to to testify is Natalie Hild Treat from NECEC. Natalie, are you with us?
SPEAKER7 - I am here.
SPEAKER1 - Alright.
SPEAKER6 - Good morning.
SPEAKER1 - Is yours.
NATALIE TREAT - NECEC - HB 4222 - SB 2531 - Okay. Good morning, Chair Roy and members of the committee. Thank you for, having this important hearing as everyone is cramming to get in before the year's end. My name is Natalie Hiltrete, and I am the director of public policy with the Northeast Clean Energy Council.
NECEC is a leading trade group representing all of the clean energy segments and a mission-driven organization working to advance the just, equitable, and rapid transition to a clean energy future and a diverse climate economy.
So I come before you today to speak in favor of HB 4222 and SB 2531, both titled ACT1273 Advancing Grid Enhancing Technologies. The Commonwealth and its neighbors are racing to modernize the electric grid so that it can support the rapid equitable transition to clean energy sources and the decarbonization of buildings and vehicles. We must also find ways to mitigate costs for these investments for businesses and consumers.
The types of grid enhancement tech technologies outlined in these 2 bills are smart, cost-effective, and deployable today. Just as we need to wring all of the efficiency out of energy where we use it. We should require and support technologies that allow us to get more out of our electric transmission system.
GATS, as they're known, paired with energy storage, can allow better use of the grid we have today while planning the must-do enhancements for a resilient reimagined electric Great. GETs are an exciting new set of enabling technologies. They let us do more with less. They can help us speed the clean energy transition, and they are proven.
So with that, I would like to take this opportunity to urge the committee to also include another key enabling technology in your legislative agenda. I know that you've heard about it, and I'm gonna plug it today, and that is meter collar adapters. These products can safely eliminate the need for costly electric panel upgrades when homeowners are installing things like solar panels, batteries, and EV chargers.
Several states, including Vermont, Connecticut, Arizona, New Jersey, and Maryland, have or are clearing the way for meter collar adapters, Allowing an electrician to complete 3 jobs in a day instead of one, for example, and relieving the backlog of projects and driving down costs.
1375 We1375 need your leadership to ensure access1377 to a low-cost, reliable, and widely used tool for streamlining interconnection and reducing the installation cost for distributed energy resources by 100 of 1,000 of dollars. So I thought I'd get in that, extra plug. We appreciate your leadership and your dedication to forging progress on clean energy and climate solutions and for the opportunity to testify before you today. Thank you.
ROY - Great. Thank you so much for your testimony. Would, welcome you submitting, some proposed language, for that change you are urging, and we will take a look at it. So thank you very much. SHOW NON-ESSENTIAL DIALOGUE
SPEAKER7 - You just follow-up and ready.
SPEAKER1 - Thank you. Any, questions for the witness from members of the committee? Rep Howard.
REP HOWITT - Yes. Thank you, Mr chair. This witness may or may not be able to answer the question, but she did bring energy storage. That seems to be an issue in some of my, towns, and my communities where these companies have come in requesting, to purchase, or at least land for these, big lithium battery storage units.
It seems that many people in the communities are against it for fear if they catch on fire or if they would catch on fire putting them out in the pollutants that they would be, expelling. So I'm just sort of curious because it is necessary to store the power. So when the power is needed, it's there. But at the same time, towns are very hesitant to allow these, these storage units in.
TREAT - Sure. Well, I can tell you that as a trade association on clean energy, I spend a lot of time on storage with our members. We know that as we, work to put more behind-the-meter storage on buildings and also large storage, connected to the transmission system, there does need to be some careful consideration of both hazard, prevention, and mitigation.
I noticed a headline come across from my desk today that NYSERDA in New York has convened a multi-agency task force to look at this. I know from our members who have been, meeting with, the State Fire Marshal Convention that this is something that is of concern.
So we're going to be working with our, partner trade associations, such as the CIA and Advanced Energy United and others, that were on the call today, to make sure that our industry is proactive in outlining the steps to, give communities comfort. That there are procedures to ensure the maximum safety, of these installations because as you know, Storage is a key piece of the puzzle, for keeping the grid operating reliably and enabling more renewables like solar and wind.
HOWITT - I was discussing this, subject1555 yesterday with someone regarding the fire marshal and fire departments. I was told that in some cases, these Storage units are set up like containers, and they have a chute on the top. In case they have a fire, they have to blow and fill the whole unit with water to put it out because they burn So hot.
TREAT - Wow, I have not had that personal opportunity to tour some of these facilities, but I hope to in the new year and, you know, we are Continuing as an industry to get in of these safety concerns, I know that they are legitimate and they are things that need to be and can be addressed, with good planning and policy.
So I know that siting facilities is an issue that we're gonna keep seeing coming forward and having good Policies for communities and the state to look forward to, with the partnership of industry is vital. So I'll be happy to follow up with you offline as well, empowered. as well, empowered. SHOW NON-ESSENTIAL DIALOGUE
SPEAKER2 - Thank you.
HOWITT - I think the big issue again is, that local zoning, and also local fire departments, really will not be a problem for the towns in the future.
TREAT - Yep. We want to do all we can to have, good information and best practices for these communities that are wrestling with how to deal with these new projects. So we are, also encouraged to hear that the Commonwealth, the UER, and Mass EC are going to look to put out more guidance for communities as well. So
ROY - thank you. Rep Howard. Just, for your edification, Lita Jones has 1 of these battery storage facilities in his district, and, I wanna say 2 years ago, he offered us a a tour of it, so we got to go up and take a peek at it. I'm sure he'd be delighted to have you up in his district as well.
I also moderated a panel on this very issue, and we had, one of the fire, officials from the state of California where they have implemented these, battery storage facilities. He was part of that panel. I will locate it and, send you a link to the program because it'd be I'm sure it'd be helpful to you and, folks1698 in your community. SHOW NON-ESSENTIAL DIALOGUE
1700 SPEAKER81700 -1700 Thank1700 you, mister chair.
ROY - You got it. Any other questions for the witness? I'm seeing none. So, that completes the list, but I just wanna double check to see if Allison Hilliard has made it, to the hearing. If so, we'll hear your testimony now. Allison, are you with us? SHOW NON-ESSENTIAL DIALOGUE
SPEAKER7 - Thank you.
SPEAKER1 - She is, not with us, so, that closes the hearing. Is there anybody that signed up to testify that I may have missed?
Excellent. Well, thank you all for, participating in this hearing. And at this time, I'll, call this meeting to a close. Thank you.
SPEAKER7 - Thank you.
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