Analysis of the Mountain Valley Pipeline Southgate Project

Client: Appalachian Voices

Authors: Liz Stanton, PhD and Eliandro Tavares

July 2019

On behalf of Appalachian Voices, Clinic Director and Senior Economist Liz Stanton, PhD and Assistant Researcher Eliandro Tavares prepared a report that uses publicly available data and documents to examine the need for the Mountain Valley Pipeline (MVP) Southgate project, concluding that neither the developer nor the gas utility have demonstrated the need for MVP Southgate. The report finds that:

• MVP LLC has not provided sufficient evidence of the need for MVP Southgate.

• PSNC’s forecasts of gas demands are higher than other publicly available forecasts for the region.

• Lower gas demand forecasts eliminate or delay the need for additional supply capacity.

• Cost-effective supply- and demand-side alternatives exist to new pipeline infrastructure.

Link to Report

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Comment on Transco's Assessment of Net Greenhouse Gas Emissions from NYC's Proposed NESE Pipeline

Client: Natural Resources Defense Council (NRDC)

Author: Liz Stanton, PhD

July 2019

Clinic Director and Senior Economist Liz Stanton, PhD, assisted the Natural Resources Defense Council (NRDC) in comments on Transco’s assessment of the greenhouse gas emissions associated with the Northeast Supply Enhancement Project (NESE) expansion of its existing interstate pipeline to bring additional gas capacity to New York City and Long Island. Dr. Stanton concluded that Williams’ assessment rests on several faulty assumptions that overstate the emissions of alternatives to the pipeline, and that the evidence supplied by Transco does not support their claim that NESE would lower emissions.

Link to Comment (starting on pdf p.30)

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Petrochemical Company Research

Client: Louisiana Bucket Brigade

Authors: Liz Stanton, PhD, Eliandro Tavares, Tanya Stasio, and Myisha Majumder

May 2019 - Present

Applied Economics Clinic staff supported Louisiana Bucket Brigade in their research into petrochemical company ownership and decision-making.

Testimony on Eversource's Proposed East Eagle Street Substation

Client: GreenRoots

Author: Bryndis Woods

May 2019 - June 2019

On behalf of GreenRoots, Researcher Bryndis Woods provided testimony on Eversource's justification for its proposed East Eagle Street Substation. Ms. Woods testified that Eversource has failed to substantiate its argument that the East Eagle Street Substation is needed to maintain reliability. Eversource's claimed reliability concerns include: increasing customer demand—despite the fact that ISO-New England's most recent load forecast is projected to decrease (see Figure above)—and a new Massport customer project—which is neither clearly identified or described. Eversource would need to provide updated load forecasts and more detailed information on the Massport project for a third-party review to determine the validity of Eversource's reliability claims.

Link to Testimony

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Home Heat Pumps in Massachusetts

Client: Green Energy Consumers Alliance (GECA)

Authors: Ricardo Lopez, PhD, Tyler Comings, Liz Stanton, PhD, and Eliandro Tavares

November 2018 - May 2019

Senior Researchers Ricardo Lopez, PhD and Tyler Comings, Clinic Director and Senior Economist Liz Stanton, PhD and Assistant Researcher Eliandro Tavares prepared a report that assessed the cost to replace residential heating and cooling systems with: 1) a gas furnace and electric central air conditioning (AC), or 2) an electric heat pump that provides both heating and cooling. The report finds that the cost-effectiveness of heat pumps depends on home-specific differences—with current Massachusetts rebates, owners of aging oil heating systems save $158 per year by choosing to replace with a heat pump instead of a gas furnace and central AC. For owners of gas heating systems, however, rebates for heat pumps are smaller than rebates for new gas furnaces, raising the relative cost of choosing heat pumps from $36 per year with no rebates to $73 per year with rebates. Even without rebates, the lifetime costs of heat pumps are only marginally more expensive than a gas furnace and central AC (see Figure above).

Link to Report (Updated July 2019)

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Fixing Massachusetts' Gas Leaks Pays for Itself

Client: Gas Leak Allies

Authors: Bryndis Woods, Liz Stanton, PhD, and Eliandro Tavares

November 2018 - May 2019

Researcher Bryndis Woods, Clinic Director and Senior Economist Liz Stanton, PhD, and Assistant Researcher Eliandro Tavares prepared a policy brief discussing natural gas leaks in Massachusetts and assessing the return on investment for gas leak repairs in the Commonwealth.

The policy brief estimates the payback period for repairing two volume-based categories of non-explosion-hazard gas leaks (called “Grade 3” leaks):

1. Leaks of Significant Environmental Impact (“Grade 3 SEI”): The top 10 percent of Grade 3 leaks, which is responsible for approximately 53 percent of lost gas.

2. Other Grade 3 leaks: The bottom 90 percent of Grade 3 leaks, which is responsible for 47 percent of lost gas.

The policy brief concludes that, while the average cost to fix a Grade 3 leak is approximately the same ($3,740) regardless of the leak volume, the cost of lost gas is not. Grade 3 SEI leaks cost $3,850 a year in lost gas, on average, while Other Grade 3 leaks cost $380. This ten-to-one difference in the cost of leaked gas means that SEI leaks pay for their own repairs ten times faster than other Grade 3 leaks; in 1 year versus 10 years, respectively (see Figure above).

This policy brief is the second of two AEC publications on behalf of Gas Leak Allies. Our April 2019 policy brief analyzed performance-based incentives that can align Massachusetts natural gas utilities' business interests with their responsibility to reduce emissions.

Link to Policy Brief

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Social Equity Analysis of Carbon Free Boston

Client: Green Ribbon Commission

Authors: Bryndis Woods, Liz Stanton, PhD, and Applied Economics Clinic Staff

December 2018 - May 2019

In May 2019, Applied Economics Clinic worked together with All Aces and the Institute for Sustainable Energy (ISE) at Boston University to produce Carbon Free Boston: Social Equity Report 2019 on behalf of the Boston Green Ribbon Commission (GRC). The report details how actions taken toward carbon neutrality, which will fundamentally transform the city’s buildings, transportation, waste and energy systems, will also affect socially vulnerable populations and provides a roadmap to equitably engage the City’s communities in climate action. The report finds that the path to carbon neutrality presents a unique opportunity to address historic inequities while creating a cleaner, healthier and more prosperous City for all those who live and work in Boston. Three themes defined the framework for the social equity analysis: 1) careful planning to avoid unintended consequences, 2) intentional design with a clear focus on equity outcomes, and 3) inclusive practices from start to finish in all decision making.

For more information, see Carbon Free Boston on The City of Boston’s website.

Link to Social Equity Report

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Testimony on Sooner Coal Plant Scrubbers

Source: The Oklahoman

Client: Sierra Club

Author: Tyler Comings

April 2019

On behalf of Sierra Club, Senior Researcher Tyler Comings provided testimony on the prudence of Oklahoma Gas and Electric (OG&E's) investment in scrubbers for its Sooner coal plant. Mr. Comings testified that OG&E was imprudent in choosing the scrubber investment in 2014 and also imprudent in not updating the analysis underlying that decision when new facts became available.

Link to Testimony

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Comments on Southwestern Electric Power Company's Draft 2019 Integrated Resource Plan

SWEPCO John W. Turk Jr. Power Plant

Source: Power Engineering

Client: Sierra Club

Authors: Sierra Club with assistance from AEC (Tyler Comings, Bryndis Woods, Ricardo Lopez, PhD, and Eliandro Tavares)

April 2019

Senior Researcher Tyler Comings, Researcher Bryndis Woods, Senior Researcher Ricardo Lopez and Assistant Researcher Eliandro Tavares assisted Sierra Club in comments on Southwestern Electric Power Company (SWEPCO)’s Draft 2019 Integrated Resource Plan. The Sierra Club concluded that SWEPCO's analysis was biased in favor keeping coal assets on-line and failed to evaluate economics of its existing resources.

Link to Comments

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Performance-Based Incentives for Gas Utilities

Client: Gas Leak Allies

Authors: Bryndis Woods, Liz Stanton, PhD, and Ricardo Lopez, PhD

November 2018 - April 2019

Researcher Bryndis Woods, Clinic Director and Senior Economist Liz Stanton, PhD, and Senior Researcher Ricardo Lopez, PhD, prepared a policy brief discussing how Massachusetts' natural gas utilities currently receive compensation, the inconsistencies between utilities' incentives and the Commonwealth's legally mandated emission reductions, and the performance-based incentives that can align gas utilities' business interests with their responsibility to reduce emissions.

This policy brief is the first of two AEC publications on behalf of Gas Leak Allies. A forthcoming policy brief will analyze the return on investment for gas leak repairs in the Commonwealth.

Link to Policy Brief

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Massachusetts Non-Energy Benefits of Battery Storage

Client: Clean Energy Group

Authors: Bryndis Woods and Liz Stanton, PhD

April 2019

AEC-2019-04-WP-01

On behalf of the Clean Energy Group, Researcher Bryndis Woods and Clinic Director and Senior Economist Liz Stanton, PhD, prepared an Applied Economics Clinic white paper that presents the results of a preliminary assessment of seven non-energy benefits of battery storage. Currently, non-energy benefits of storage are not included in cost-benefit calculations for storage in Massachusetts—which has the same effect as assuming they have no value. We provide preliminary estimates of the value of seven non-energy benefits as a starting point for a discussion of how best to fully measure the advantages to Massachusetts of battery storage: avoided power outages, higher property values, avoided fines, avoided collections and terminations, avoided safety-related emergency calls, job creation, and less land used for power plants.

This white paper is part of a series of AEC publications on behalf of Clean Energy Group analyzing costs and benefits of battery storage in Massachusetts.

Link to White Paper

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Updated Massachusetts Battery Storage Measures: Benefits and Costs

Client: Clean Energy Group

Author: Liz Stanton, PhD

April 2019 Update

AEC-2019-04-WP-02

On behalf of the Clean Energy Group, Clinic Director and Senior Economist Liz Stanton, PhD, prepared an update to the Applied Economics Clinic’s July 2018 white paper on the same topic. Dr. Stanton assessed the cost-effectiveness of battery storage in Massachusetts, using the Massachusetts' efficiency program administrators' benefit-cost ratio methodology and found that both single- and multi-family batteries are found to be cost effective.

This white paper is part of a series of AEC publications on behalf of Clean Energy Group analyzing costs and benefits of battery storage in Massachusetts.

Link to White Paper Update

Link to Project Page

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Comments on Cleco Power's Draft 2019 Integrated Resource Plan

Source: Wind Power Engineering

Client: Sierra Club

Authors: Sierra Club with assistance from AEC (Tyler Comings, Bryndis Woods, Ricardo Lopez, PhD, and Eliandro Tavares)

April 2019

Senior Researcher Tyler Comings, Researcher Bryndis Woods, Senior Researcher Ricardo Lopez and Assistant Researcher Eliandro Tavares assisted Sierra Club in comments on Cleco’s Draft 2019 Integrated Resource Plan. The Sierra Club concluded that Cleco failed to evaluate the economics of all of its existing resources as part of the IRP and also encouraged Cleco to pursue the company's preferred portfolio, including the addition of wind and solar resources.

Link to Comments

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Avoided Emissions of 100,000 renters in MA 2019-2021 Energy Efficiency Plan

Photo from Schochet Companies

Client: Clean Water Action

Author: Ricardo Lopez, PhD

March 2019

On behalf of Clean Water Action, Senior Researcher Ricardo Lopez, PhD provided a memo that estimates how much energy could be saved from including 100,000 renters in Massachusetts’ 2019-2021 Energy Efficiency Plan programs.

Link to Memo

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Testimony in NIPSCO's 2019 Rate Case

Client: Citizens Action Coalition of Indiana

Author: Liz Stanton, PhD

March 2019

On behalf of Citizens Action Coalition of Indiana, Clinic Director and Senior Economist Liz Stanton, PhD provided written testimony in Cause No. 45159 to respond to specific critiques of North Indiana Public Service Company's 2018 Integrated Resource Plan, offered by Indiana Coal Council Emily Medine, Indiana Coalition for Affordable and Reliable Electricity witness Charles S. Griffey, and Peabody COALSALES LLC witness Michael J. Nasi.

Link to Comments

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Testimony on NIPSCO's Petition for Approval of Jordan Creek Wind Farm PPA

Client: Citizens Action Coalition of Indiana

Authors: Liz Stanton, PhD

March 2019

On behalf of Citizens Action Coalition of Indiana, Clinic Director and Senior Economist Liz Stanton, PhD, provided written testimony in Cause No. 45195 on the consistency of Northern Indiana Public Service Company's (NIPSCO) 2018 Integrated Resource Plan (IRP) with acquiring a renewable energy power purchase agreement (PPA) with Jordan Creek Wind Farm. Dr. Stanton testified that the Jordan Creek PPA is consistent with NIPSCO's 2018 IRP, and that it is also consistent with the timing for procuring wind resources in the IRP's preferred portfolio.

This testimony is one of three AEC testimonies on three Indiana utility commission dockets (two filed and one upcoming) on behalf of Citizens Action Coalition of Indiana, pertaining to Northern Indiana Public Service Company's (NIPSCO) proposed acquisition of wind energy through power purchase agreement (PPA) and/or joint ownership. 

Link to Testimony

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Testimony on NISPCO's Petition for Approval of Roaming Bison Wind Farm PPA

From Roaming Bison website

Client: Citizens Action Coalition of Indiana

Authors: Liz Stanton, PhD

March 2019

On behalf of Citizens Action Coalition of Indiana, Clinic Director and Senior Economist Liz Stanton, PhD, provided written testimony in Cause No. 45196 on the consistency of Northern Indiana Public Service Company's (NIPSCO) 2018 Integrated Resource Plan (IRP) with acquiring a renewable energy power purchase agreement (PPA) with Roaming Bison. Dr. Stanton testified that the Roaming Bison PPA is consistent with NIPSCO's 2018 IRP, and that it is also consistent with the timing for procuring wind resources in the IRP's preferred portfolio.

This testimony is one of three AEC testimonies on three Indiana utility commission dockets (two filed and one upcoming) on behalf of Citizens Action Coalition of Indiana, pertaining to Northern Indiana Public Service Company's (NIPSCO) proposed acquisition of wind energy through power purchase agreement (PPA) and/or joint ownership. 

Link to Testimony

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Comment on National Grid's Proposed Off-Peak Charging Rebate

Client: Green Energy Consumers Alliance (GECA)

Authors: Liz Stanton, PhD, and Ricardo Lopez, PhD

March 2019

Applied Economics Clinic (AEC) replicated the calculations described in National Grid’s proposed off-peak charging rebate. AEC’s estimates of summer and winter off-peak charging rebates — using the methodology and data described in detail by National Grid — resulted in values similar but not identical to those presented by the Company. AEC concludes that the rebate levels proposed by National Grid represent a reflection of the reduced cost of service for off-peak charging and not a cross-subsidy. In addition, this comment raises several categories of potential additional peak to off-peak cost differentials and sources of charging revenue omitted in National Grid’s charging rebate methodology, including avoided transmission and distribution costs, avoided emissions costs, and funding for energy efficiency programs.

Link to Comment

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Comments on Xcel Energy Minnesota's 2018 Mankato Proposal

Photo of Mankato Energy Center from POWER Engineering news article

Client: Sierra Club

Authors: Sierra Club with assistance from AEC (Tyler Comings, Liz Stanton, PhD, and Eliandro Tavares)

March 2019

On behalf of Sierra Club, Senior Researcher Tyler Comings, Clinic Director and Senior Economist Liz Stanton, PhD and Assistant Researcher Eliandro Tavares assisted with comments on Xcel Minnesota's proposal to acquire the Mankato natural gas plant. The Sierra Club concluded that the proposal should be denied because it was not economically justified and ran counter to the utility's greenhouse gas emission goals.

Link to Comments

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Duke Energy Integrated Resource Plans in North Carolina

Client: Southern Environmental Law Center

Authors: Tyler Comings, Bryndis Woods, Liz Stanton, PhD, and Eliandro Tavares

March 2019

Senior Researcher Tyler Comings, Researcher Bryndis Woods, Director and Senior Economist Liz Stanton, PhD and Assistant Researcher Eliandro Tavares prepared a report on Duke Energy's 2018 Integrated Resource Plans (IRPs) in North Carolina on behalf of Southern Environmental Law Center and its clients, Natural Resources Defense Council, Southern Alliance for Clean Energy and the Sierra Club. AEC concluded that Duke has failed to evaluate the economics of its coal units, even though many are operating infrequently, and has not encouraged competition from other resources. As a result, AEC found Duke's plans to be flawed and incomplete.

August 2019 Update: Based in part on AEC comments, North Carolina Utilities Commission orders Duke Energy to re-evaluate coal units in 2020 IRPs.

AEC's comments (prepared for Natural Resources Defense Council, the Sierra Club and the Southern Alliance for Clean Energy) stated that Duke's IRP analysis: "...fails to consider whether existing resources can be cost effectively replaced with new resources. Therefore, Duke has not performed a least-cost analysis to design its recommended plans.” The Commission agreed, stating that: "It does not appear from the information in the IRPs that DEC and DEP have fully considered early retirement of any of these coal plants by replacing their contributions with other alternative generation resources or with energy efficiency (EE) and demand-side management (DSM) resources."

The order is available here.

Link to Review

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