Volume 15, Issue 66 | May 29, 2018

Bowie State University Celebrates Launch of 1.6 MW Solar Project

Alternative energy expands university's commitment to sustainability and green education

 

On May 21, 2018, Bowie State University and WGL Energy Systems (WGL Energy) celebrated the launch of a 1.6-megawatt solar power system. The solar power system spans throughout the campus that includes a solar canopy in parking lot D, the roofs of the Thurgood Marshall Library and the Leonidas S. James Physical Education Complex, and an open site near the Bulldog Stadium field. The new system is estimated to generate about 2 million kilowatt-hours each year, which is about 10 percent of the campus needs – further demonstrating the importance of sustainability and green education for Bowie State University.

WGL Energy owns and operates the system and the university will purchase the generated electricity. WGL Energy offers a Solar Electricity Supply Solution which includes a 20-year Solar Power Purchase Agreement (SPPA) for 100% of the electricity output from a new solar development for a fixed price that protects the organization from fluctuating energy prices. The balance of the electricity supply will come from a one-, two- or three-year WGL Energy Electricity Supply Agreement, with flexible options after that. Bowie State University, as a co-branded stakeholder of the solar facility, has direct involvement in the growth of renewable energy. This partnership supports the university’s sustainability goals with no up-front capital expenditures or ongoing maintenance costs.

For more on WGL Energy solar projects for large commercial customers, visit WGLEnergy.com/commercialgreen.

 


Editor's Note

PJM Auction Results

Weekly review for May 20, 2018 - May 26, 2018

 
On Thursday, the U.S. Energy Information Administration (EIA) reported that working gas in storage as of Friday, May 18, 2018 was 1,629 BCF. This is an increase of 91 BCF from the previous week. Inventories are currently 804 BCF lower than last year during this same period and 499 BCF below the 5-year average of 2,128 BCF.  
 
Forward markets increased this week as the PJM West Hub 12 Month curve added 1.6% and the NYMEX natural gas 12-month curve gained 2.9%.
      
On May 23, 2018, PJM released the results of the Capacity Base Residual Auction (BRA) for the June 2021-May 2022 period. The auction cleared 163,627 MW of unforced capacity at an overall reserve margin of 21.5%. Approximately 1,401 MW of new generation, predominately natural gas combined cycle/combustion turbines and solar, cleared the auction.
 
Clearing prices for this BRA were significantly higher than the cleared prices from the June 2020-May 2021 BRA for most zones, with the exception of the New Jersey, Delaware and Eastern Pennsylvania region, which cleared moderately lower. Between now and June 2021, three Incremental Auctions for the 2021-2022 period will be held that may result in slight revisions to the BRA pricing. The 2021-2022 BRA results for a portion of the PJM region are shown below, along with the clearing prices from the 2020-2021 BRA. 

 

  
This past week's market information is provided as a courtesy to our customers and is not indicative of, nor should be relied upon, as representative of future transactions.
 


Energy Efficiency

President Issues Executive Order on Efficient Federal Operations

Government agencies encouraged to use performance contracts to achieve energy and cost savings

 

On May 17, 2018, President Donald J. Trump issued an executive order regarding the energy and environmental performance of executive departments and agencies of the federal government, calling upon each of them to “prioritize actions that reduce waste, cut costs, enhance the resilience of Federal infrastructure and operations, and enable more effective accomplishment of its mission.”1

The order, Efficient Federal Operations, requires each agency to meet a number of goals aimed at achieving higher levels of energy efficiency and cost savings, including:

  • Achieve and maintain annual reductions in building energy use and implement energy efficiency measures that reduce costs.
  • Meet statutory requirements relating to the consumption of renewable energy and electricity.
  • Utilize performance contracting (e.g., Energy Savings Performance Contracts and Utility Energy Service Contracts, or ESPCs and UESCs, respectively) to achieve energy, water, building modernization and infrastructure goals.
  • Ensure that new construction and major renovation conform to applicable building energy efficiency requirements and sustainable design principles; consider building efficiency when renewing or entering into leases; implement space utilization and optimization practices; and annually assess and report on building conformance to sustainability metrics.
  • Track and report on energy management activities, performance improvements, cost reductions, greenhouse gas emissions, energy and water savings, and other appropriate measures.

The federal government manages more than 350,000 buildings and is the largest consumer of energy in the United States. In 2017, federal agencies spent more than $6 billion on energy for buildings.2

As a member of the Federal Performance Contracting Coalition (FPCC), WGL Energy Services and WGL Energy Systems (WGL Energy) supports this executive order and views it as an affirmation of the economic benefits of ESPCs and UESCs, as they apply to energy and cost savings.

ESPCs and UESCs, collectively known as performance contracts, can help federal agencies procure energy savings technology and building infrastructure improvements with little to no up-front capital costs or appropriations. Through performance contracts, a private sector energy service company (ESCO) like WGL Energy will design, install and finance new energy efficient equipment in federal buildings, reducing energy consumption and lowering operating costs.  In exchange for a pre-determined price, the ESCO guarantees future energy savings or performance assurance of the equipment, which are used to pay for the energy efficiency upgrades with excess energy savings at the conclusion of the contract accruing to the federal government agency.

According to the FPCC, “performance contracts create jobs, save American taxpayers money and improve the aging infrastructure of our federal buildings and facilities.”3

For more on how WGL Energy can help your federal agency comply with the executive order on efficient federal operations, contact Chris Mathey at Christopher.Mathey@wglenergy.com.


End Notes:
1 (2018, May 17). Retrieved from https://www.whitehouse.gov/presidential-actions/executive-order-regarding-efficient-federal-operations/
2 (2018, May 17). Retrieved from https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-prioritizes-efficiency-federal-government/
3 (2018, May 18). Retrieved from http://www.federalperformancecontracting.com/static_page.php?i_id=6


Weather

Local Heating Degree Days*

 

 


Heating Degrees Day** 

 

Nov - 17

Dec - 17

Jan - 18

Feb - 18

Mar - 18

Apr - 18

 Actual

456

792

900

549

657

312

 Normal

466

786

899

728

568

270

 Departure from Normal

2%

.7%

.1%

24%

13%

 13%

 Warmer

Colder

Colder

Warmer

Colder

Colder

**Heating degree days are calculated by comparing the day’s average temperature to a 65 degree baseline. If the day’s average temperature is above 65, there are no heating degree days that day. If the day's average temperature is less than 65 degrees, subtract the average temperature from 65 to find the number of heating degree days for that day.