The Energy News Digest for February 17, 2021

The Energy News Digest is sponsored by the Northwest Public Power Association. 

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HOT SHOTS – TODAY’S TOP FIVE STORIES

Power Outages Linger for Millions as Another Icy Storm Looms (Associated Press)

https://apnews.com/article/100-million-americans-more-ice-snow-404012f8d8885259968b8d37b13899d6

Oregon: Nearly 100,000 Remain without Power in Portland as Outages Stretch into Sixth Day (Oregonian, Portland, OR)

https://www.oregonlive.com/portland/2021/02/nearly-100000-remain-without-power-in-portland-as-outages-stretch-into-5th-day.html

Californians Urged to Conserve Energy as Winter Storm Slams Parts of U.S. (KRON-TV, San Francisco, CA)

https://www.kron4.com/news/california/californians-urged-to-conserve-energy-as-winter-storm-slams-parts-of-u-s/

Californians Urged to Conserve Energy as Winter Storm Slams Parts of U.S. (KRON-TV, San Francisco, CA)

https://www.kron4.com/news/california/californians-urged-to-conserve-energy-as-winter-storm-slams-parts-of-u-s/

States Get Serious About Broadband Funding (Pots & Pans)

https://potsandpansbyccg.com/2021/02/16/states-get-serious-about-broadband-funding/

NEWS HIGHLIGHTS (See Stories Below)

1.      Power Outages Linger for Millions as Another Icy Storm Looms

2.      The Texas Grid Got Crushed Because Its Operators Didn’t See the Need to Prepare for Cold Weather

3.      ‘A Complete Bungle’: Texas’ Energy Pride Goes Out with Cold

4.      Texas: Spiking Power Prices Could Leave Retailers, Consumers in the Cold

5.      FERC, NERC to Investigate Mass Outages Across ERCOT, SPP, MISO

6.      Texas Storm Could Spark Increase in Gasoline Prices

7.      Oregon: Nearly 100,000 Remain without Power in Portland as Outages Stretch into Sixth Day

8.      Oregon: Four Die from Carbon Monoxide Poisoning During Winter Storm

9.      Californians Urged to Conserve Energy as Winter Storm Slams Parts of U.S.

10.   US West Power Prices Rally on Winter Weather Set to Impact the Region

11.   Idaho Congressman Hopes Politics Align on Divisive Northwest Dams

12.   New Proposal to Breach Snake River Dams Sparks Opposition

13.   Idaho Water Users Poke Holes in Breaching Plan

14.   Op/Ed: Removing Snake River Dams is Unwise

15.   Minor Montana Power Outage Stokes Political Rhetoric

16.   Advanced Nuclear Backers See Opening for Low-Carbon Source

17.   US Grants Oregon State First-Ever Lease for Wave Energy Research Off West Coast

18.   No, Frozen Wind Turbines Aren’t the Main Culprit for Texas’ Power Outages

19.   Hydropower Grew Faster in the Last 10 Years Than Other Forms of Storage

20.   Bill Monroe: Good News in a Massive Turnaround for Offshore & Columbia Sport Fishing

21.   Gray Whales Learn Daring Feeding Strategy in Puget Sound: Digging for Ghost Shrimp at High Tide

22.   WA State: Thurston Board of Commissioners OKs Climate Emergency Declaration, Mitigation Plan

23.   States Get Serious About Broadband Funding

24.   FCC Chief Forms Task Force for Broadband Mapping

25.   In Virginia, Utility Smart Grid Projects Could Help Fill Rural Broadband Gaps

26.   FERC Reliance On Ratepayers to Fund Utility Cybersecurity Insufficient to Meet Rising Threat, Analysts Say

27.   Cost of a Single Bitcoin Exceeds $50,000 for First Time

28.   President Biden Gets His First Energy Crisis — And an Opening

29.   WA State: Legislature Considers Bill Backing PUD/DNR Wildfire Cooperation

WORD OF THE DAY

Primordial • \PRIME-or-dee-ull\ • Adjective - 1a: first created or developed: primeval b: existing in or persisting from the beginning c: earliest formed in the growth of an individual or organ 2: fundamental, primary.

The first soup and sandwich shop in town did a booming business…even with the slightly odd name of “Primordial Soup.”

DEEP IN THE HEART OF TEXAS

1.      Power Outages Linger for Millions as Another Icy Storm Looms (Associated Press)

https://apnews.com/article/100-million-americans-more-ice-snow-404012f8d8885259968b8d37b13899d6

2.      The Texas Grid Got Crushed Because Its Operators Didn’t See the Need to Prepare for Cold Weather (Washington Post)

https://www.washingtonpost.com/business/2021/02/16/ercot-texas-electric-grid-failure/

3.      ‘A Complete Bungle’: Texas’ Energy Pride Goes Out with Cold (Associated Press)

https://apnews.com/article/texas-power-outage-winter-energy-pride-c260c340f619688dd511cc6645b40a04

4.      Texas: Spiking Power Prices Could Leave Retailers, Consumers in the Cold (Houston Business Journal, TX)

https://energynewsdigest.blogspot.com/2021/02/texas-spiking-power-prices-could-leave.html

5.      FERC, NERC to Investigate Mass Outages Across ERCOT, SPP, MISO (Utility Dive)

https://www.utilitydive.com/news/ferc-nerc-to-investigate-mass-outages-across-ercot-spp-miso/595173/

6.      Texas Storm Could Spark Increase in Gasoline Prices (The Hill, Washington, DC)

https://thehill.com/policy/energy-environment/539040-texas-storm-could-spark-increase-in-gas-prices

ENERGY & UTILITY ISSUES

7.      Oregon: Nearly 100,000 Remain without Power in Portland as Outages Stretch into Sixth Day (Oregonian, Portland, OR)

https://www.oregonlive.com/portland/2021/02/nearly-100000-remain-without-power-in-portland-as-outages-stretch-into-5th-day.html

8.      Oregon: Four Die from Carbon Monoxide Poisoning During Winter Storm (Associated Press)

https://www.idahostatesman.com/news/business/article249283585.html

9.      Californians Urged to Conserve Energy as Winter Storm Slams Parts of U.S. (KRON-TV, San Francisco, CA)

https://www.kron4.com/news/california/californians-urged-to-conserve-energy-as-winter-storm-slams-parts-of-u-s/

10.   US West Power Prices Rally on Winter Weather Set to Impact the Region (S&P Global)

https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/021121-us-west-power-prices-rally-on-winter-weather-set-to-impact-the-region

11.   Idaho Congressman Hopes Politics Align on Divisive Northwest Dams (Associated Press)

https://www.opb.org/article/2021/02/15/congressman-hopes-politics-align-on-divisive-northwest-dams/

12.   New Proposal to Breach Snake River Dams Sparks Opposition (Waterways Journal Weekly)

https://www.waterwaysjournal.net/2021/02/12/new-proposal-to-breach-snake-river-dams-sparks-opposition/

13.   Idaho Water Users Poke Holes in Breaching Plan (Lewiston Tribune, ID)

https://lmtribune.com/northwest/idaho-water-users-poke-holes-in-breaching-plan/article_99bb284c-cf56-5f79-a650-c07644f3408f.html

14.   Op/Ed: Removing Snake River Dams is Unwise (Enumclaw Courier-Herald, WA)

https://www.courierherald.com/business/removing-snake-river-dams-is-unwise-brunell/

15.   Minor Montana Power Outage Stokes Political Rhetoric (Montana Standard, Butte, MT)

https://mtstandard.com/news/state-and-regional/govt-and-politics/minor-montana-power-outage-stokes-political-rhetoric/article_134cc66a-80eb-5c7d-98e4-b99e3a39a719.html

16.   Advanced Nuclear Backers See Opening for Low-Carbon Source (Bloomberg News)

https://news.bloomberglaw.com/environment-and-energy/advanced-nuclear-backers-see-opening-for-low-carbon-power-source

RENEWABLE ENERGY & SELF STORAGE

17.   US Grants Oregon State First-Ever Lease for Wave Energy Research Off West Coast (KMTR-TV, Eugene, OR)

https://nbc16.com/news/local/us-grants-oregon-state-first-ever-lease-for-wave-energy-research-off-west-coast

18.   No, Frozen Wind Turbines Aren’t the Main Culprit for Texas’ Power Outages (The Texas Tribune)

https://www.texastribune.org/2021/02/16/texas-wind-turbines-frozen/

19.   Hydropower Grew Faster in the Last 10 Years Than Other Forms of Storage (American Public Power Association)

https://www.publicpower.org/periodical/article/hydropower-grew-faster-last-10-years-other-forms-storage

FISH & WILDLIFE

20.   Bill Monroe: Good News in a Massive Turnaround for Offshore & Columbia Sport Fishing (Oregonian, Portland, OR)

https://www.oregonlive.com/sports/2021/02/bill-monroe-good-news-in-a-massive-turnaround-for-offshore-and-columbia-sport-fishing.html

21.   Gray Whales Learn Daring Feeding Strategy in Puget Sound: Digging for Ghost Shrimp at High Tide (Seattle Times, WA – Paywall Advisory)

https://www.seattletimes.com/seattle-news/gray-whales-learn-daring-feeding-strategy-in-puget-sound-digging-for-ghost-shrimp-at-high-tide/

CLIMATE CHANGE SEQUESTRATION VAULT

22.   WA State: Thurston Board of Commissioners OKs Climate Emergency Declaration, Mitigation Plan (Olympian, WA – Paywall Advisory)

https://amp.theolympian.com/news/local/article249218220.html

TELECOMMUNICATIONS

23.   States Get Serious About Broadband Funding (Pots & Pans)

https://potsandpansbyccg.com/2021/02/16/states-get-serious-about-broadband-funding/

24.   FCC Chief Forms Task Force for Broadband Mapping (Light Reading)

https://www.lightreading.com/ossbss/fcc-chief-forms-task-force-for-broadband-mapping/d/d-id/767452?_mc=RSS_LR_EDT

25.   In Virginia, Utility Smart Grid Projects Could Help Fill Rural Broadband Gaps (Energy News Network)

https://energynews.us/2021/02/08/southeast/in-virginia-utility-smart-grid-projects-could-help-fill-rural-broadband-gaps/

THE WIZARDING WORLD OF TECHNOLOGY

26.   FERC Reliance On Ratepayers to Fund Utility Cybersecurity Insufficient to Meet Rising Threat, Analysts Say (Utility Dive)

https://www.utilitydive.com/news/ferc-reliance-on-ratepayers-to-fund-utility-cybersecurity-insufficient-to-m/595109/

27.   Cost of a Single Bitcoin Exceeds $50,000 for First Time (Associated Press)

https://www.columbian.com/news/2021/feb/16/cost-of-a-single-bitcoin-exceeds-50000-for-first-time/

GOVERNANCE & MANAGEMENT

28.   President Biden Gets His First Energy Crisis — And an Opening (Politico)

https://www.politico.com/news/2021/02/16/texas-energy-outage-469217

29.   WA State: Legislature Considers Bill Backing PUD/DNR Wildfire Cooperation (Methow Valley News, Twisp, WA)

https://methowvalleynews.com/2021/02/17/legislature-considers-bill-backing-pud-dnr-wildfire-cooperation/

ALLIGATORS IN THE SEWER – DIVERSIONS

Rescue Cat Detects Dangerous Gas Leak at Lake Oswego Home, Saving Owners

https://www.kgw.com/article/life/animals/cat-detects-dangerous-gas-leak-lake-oswego-oregon/283-a968f509-401a-4a9e-a046-60af9fbcc412

Blue Dogs Found Near Abandoned Russian Chemical Plant Tested by Vets

https://www.newsweek.com/blue-dogs-found-abandoned-chemical-plant-tested-vets-1569552

5,000-Year-Old Commercial Brewery, Possibly World’s Oldest, Uncovered in Egypt

https://www.cbc.ca/news/technology/egypt-brewery-1.5913913?cmp=rss

Call The Ghostbusters? Transformer Surge Releases Eerie Floating Power Orbs

https://www.huffpost.com/entry/transformer-surge-glowing-orbs_n_602b2752c5b6f88289fdea80

SONG OF THE DAY

Roy Orbison - Blue Bayou (check out the backup band. Not too shabby)

https://www.youtube.com/watch?v=fGB9cvWdn04

LINKS & PAYWALL ADVISORY

Links in The Energy News Digest lead to current stories. Media organizations update their websites regularly, which may result in broken links. Media attribution includes information about possible paywall restrictions.

Texas: Spiking Power Prices Could Leave Retailers, Consumers in the Cold (Houston Business Journal, TX)

(HOUSTON, TX) - - Texas' electricity prices have exploded in the past couple of days as failing power generation collides with soaring demand, and it’s likely that power retailers and consumers are going to be left holding the bill.

Electricity on the Texas grid has averaged about $1,137.33 per megawatt-hour so far in February, up from $18.20 per megawatt-hour in February 2020, according to data from the Electricity Reliability Council of Texas.

“Any time something like this happens, there are winners and losers,” said Bernadette Johnson, senior vice president of power and renewables for Enverus. “When you’re talking about power and gas, it’s generally the ratepayers that will have to pay the sky-high costs for this period of time.”

That generally means consumers paying utility bills. Based on some back-of-the-envelope math, Johnson said she thinks exposed consumers could end up paying hundreds of dollars more at the end of the month than what they are used to. That’s assuming they are lucky enough to still have electricity at all right now, of course.

Retail Woes

On the other side of the contract, this could be a death blow for retailers whose customers are largely on fixed-rate agreements. If such retailers aren’t well hedged, they may not be able to afford the expense to buy megawatts and turn them over to customers at a loss.

“If the retail supplier has short positions, they have to go into the market to cover those positions at the prevailing price,” said Andrew Barth. Barth is partner and co-founder of CSD Energy Advisors LLC, a Houston-based energy-management firm.

On top of that, ERCOT requires retailers to put up collateral on the cost of the electricity they purchase said Peter Selber, founder and managing partner of Infinity Power Partners LLC, another energy-management firm.

“ERCOT is basically telling them, you have to give us more money because we don’t believe that you can fulfill your end of the bargain,” Selber said.

If companies don’t have the liquidity to post that extra collateral, they’re in trouble. The problem is severe enough that companies on the losing end of this situation could well find themselves in bankruptcy court, Barth said.

Other companies might have to take to mergers and acquisition markets in a position of extreme distress, Selber said. He’s heard anecdotally that some smaller providers have already opened negotiations with larger suppliers over this issue.

“You’ve got a window of time to post this collateral. This is really nasty,” Selber said. “I think it will be pretty significant. I think you’ll see some distressed assets and distressed suppliers that get rolled up, maybe not at pennies on the dollar, but at a significant discount.”

Large companies with retail power businesses have already been consolidating in the space even before this extreme event. Houston- and New Jersey-based NRG Energy Inc. (NYSE: NRG), for example, acquired Direct Energy for $3.6 billion earlier this year.