ESG & Industry Updates

Addressing Western Water Shortages

Posted by Kelly Burke on Dec 20, 2021 11:11:00 AM

Western DroughtOver 70% of the American West, Southwest and Northern Plains has been categorized as a D3 (severe) drought or higher since June. In October, the US Bureau of Reclamation issued its 5 year projections for the Colorado River, which serves 40 million people in the American West. Projections help management consultants better plan for future demands and determine allocations appropriately based on the data.

Ongoing drought conditions in the region have led to drastic and unprecedented changes in water allocations. These cuts in allocation have devastating implications for regional farmers and ranchers, their livelihood and the commodity markets their products determine pricing versus demand for more broadly. It also complicates the clean energy picture, as hydroelectric plants (which produce 40 billion kwh of energy for millions of homes and businesses in the Western region) become not only unable to enhance capacity, but become less able to meet current loads and meet demand.

Additionally, the continuing drought conditions and their impacts are a concerning sign for what is to come with climate change. Lake Powell & Lake Mead are the largest man-made reservoirs in the country, and their levels largely depend on snowpack conditions in the region. Warmer temperatures and drought conditions have caused both to dip to historic levels as well as causing a first-ever water shortage on the Colorado River. Should levels continue to drop, downstream states could become unable to access water downstream from Lake Mead and the implications of that would be devastating.

In 2019 seven regional states along the Colorado River signed a plan to prop water levels up, and portions of the infrastructure bill passed at the end of 2021 address ongoing concerns and provide funding for infrastructure improvements in the Western region to at least forestall the worst potential longer term impacts.

I wrote an article for Oil & Energy magazine that goes into more depth on the specifics of the problem, as well as how the infrastructure bill will attempt to address concerns. You can read that article in its entirety here: Drought Relief for Western States

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Topics: Energy Infrastructure, climate change, hydro-electric

Maine Central Power Clears Regulatory Hurdle, Stalls on Legal Challenge

Posted by Kelly Burke on Feb 26, 2021 11:17:00 AM

hydroelectric stock

Central Maine Power's proposal for a 145 mile electricity transmission line through the Western part of the State has cleared the final regulatory hurdle. Central Maine Power (Avangrid) recieved a Presidential Permit from the US Department of Energy for their $950 million dollar "New England Clean Energy Connect" (NECEC) Project to be able to cross the Canadian Border. (As an aside, if you want to read about the project in detail their website is a great resource: NECEC

When completed, the project will run 1,200 megawatts of hydroelectric energy from Hydro-Quebec to Massachusetts. The project is funded by MA ratepayers but arguably will help the entire New England region's grid. 

The permit was the last major hurdle outstanding for the project, but more obstacles have popped up. As crews prepared to go to work when the DOE permit was granted, a judge granted an injunction to stop work for 30 days as outstanding filings are adjudicated regarding a separate permit from the Army Corps of Engineers. Work is stopped as the court process moves on, but Maine Central Power is confident the project will continue. 

Upon completion, estimates say the project will reduce regional carbon emissions by 3-3.6 million metric tons per year (the equivalent of removing 700,000 cars from the road) Another portion of the project involves $200 million in upgrades to the Maine power grid, and a $250 million high voltage converter station in Lewiston that will direct current into alternating current to feed the regional grid. 

I wrote a piece for Oil & Energy Magazine on the Central Maine project, you can read it in its entirety here: Central Maine Power Line Stalled Again

 

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Topics: carbon emissions, renewable energy, maine, hydro-electric

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