$28 million available for state clean energy manufacturing projects

From a news release issued by Governor Doyle:

MADISON – Governor Jim Doyle today announced that Wisconsin has been approved for $28 million in American Recovery and Reinvestment Act federal funds for its State Energy Program (SEP). The funds are the first part of the $55 million in Recovery Act funding the state is receiving for this program. . . .

Projects must create or retain jobs, reduce greenhouse gas emissions, reduce fossil fuel use, and/or deploy renewable energy.

Applications and program information will be available at the Commerce website: http://commerce.wi.gov/BD/BD-SEP-ARRA.html

For more information on the SEP, contact Amy Cumblad at Commerce, amy.cumblad@wisconsin.gov; or David Jenkins at the Office of Energy Independence, davidj.jenkins@wisconsin.gov.

WPL may seek bigger rate increase; closed factories to affect revenues

From an article by Judy Newman in The Capital Times:

As more factories in southern Wisconsin announce plans to cut production or close, Wisconsin Power & Light is warning state regulators that its revenues next year will fall shorter than anticipated.

The Madison utility company is setting the stage for the possibility of seeking a bigger rate increase in 2010 than the $91.7 million sought in a request filed May 8. WPL now says higher costs and lower revenues could justify asking for an additional $18 million from electricity and natural gas customers, for a total of $109.3 million in rate increases.

No estimates are available yet on how much that could raise the average customer’s monthly bill.

In testimony filed with the state Public Service Commission on Friday, WPL financial analyst Ron Hellweg said he expects sales to industrial customers in 2010 will be 4 percent lower than anticipated less than three months ago.

"Economic conditions in WPL’s service territory have continued to deteriorate to levels worse than those seen in other parts of Wisconsin, the region and the nation," Hellweg wrote.

First expansion unit at Oak Creek reaches major milestone

From an update on Power the Future issued by We Energies:

The first expansion unit at Oak Creek reached a major milestone July 23, 2009, shortly before 10 p.m. when the boiler was fired for the first time. Standard procedure is to use natural gas for first fire.
Our contractor Bechtel Power Corp. will work over the next few months to focus on commissioning, fine tuning and performance testing of the unit. First fire on coal should take place by early October. Bechtel continues to target the completion of Unit 1 by the end of this year and Unit 2 in the third quarter 2010.

The Oak Creek Power Plant expansion includes the construction of two 615-megawatt coal-fueled generating units. These units will be equipped with state-of-the-art emission-control technology, making our Oak Creek facility one of the cleanest plants of its type in the world.

Push for new nuclear power sputters, but old reactors still pose cancer risks

From a news release issued by the Cancer Prevention Coalition posted on World-Wire:

CHICAGO, Illinois, July 27, 2009 --/WORLD-WIRE/-- Nuclear reactors in the United States should be phased out, and replaced by technologies that don’t threaten public health with the emission of radioactive chemicals, urges the Cancer Prevention Coalition.

A recent energy bill sponsored by Congressional Republicans proposed building 100 new nuclear reactors across the United States in the next 20 years.

The proposal, which would double the current U.S. total of 104 operating nuclear reactors, would amount to a nuclear renaissance, as no new reactors have been ordered since 1978.

Concerns about global warming gave utilities the idea for this revival since reactors don’t emit greenhouse gases while generating power, and utilities have stopped closing old reactors while proposing 33 new ones to be sited in New England, throughout the South and Southeast, and in Texas, Utah and Idaho.

(For a list of applications to the Nuclear Regulatory Commission for approval of new reactors click here).

But this month, two Swedish scientists published an article concluding that a large increase in nuclear reactors will not solve global warming.

Xcel Energy customers can choose to have energy generated by wind farms

From a story on WEAU.com:

A power company says its customers can now choose to have their residential or commercial energy generated by wind farms.

Xcel Energy's Windsource program started in Wisconsin last month. Since then, Xcel says 200 customers have signed up. The wind farms that generate the power for the program are in Minnesota, North and South Dakota. Customers end up paying a $1.15 per 100-kilowatt hour block above the current electricity rate.

RENEW testimony supports Excel conversion of generation plant to wood

From the direct testimony of Michael Vickerman on behalf of RENEW Wisconsin:

Q. What is the purpose of your testimony?
A. The purpose of my testimony is to communicate our organization’s support for the installation of a biomass gasification system that would produce biomass-derived synthetic gas (“syngas”) for serving Northern States Power’s Bay Front Unit #5.

Q. Why does RENEW support this particular application?
A. We note the following public policy objectives that would be advanced if the proposal submitted by Northern States Power Corporation (“NSPW”) were approved. These objectives include:
1) Meeting Wisconsin’s current Renewable Energy Standard;
2) Eliminating a source of coal-fired power from its system;
3) Using a locally available renewable energy resource;
4) Reducing carbon dioxide emissions and other gaseous pollutants;
5) Maintaining a strong generation source in northern Wisconsin; and
6) Investing Wisconsin capital in a renewable energy generating facility power plant within its borders.

Integrys Energy Services to sell its energy consulting business to U.S. Energy Services, Inc.

From a news release issued by Integrys Energy:

Chicago, IL – Integrys Energy Group, Inc. (NYSE: TEG) today announced that its nonregulated energy subsidiary, Integrys Energy Services Inc., has signed an agreement to sell its energy consulting business to Minneapolis-based U.S. Energy Services, Inc. for an undisclosed sum. The transaction, which requires certain contractual consents, is expected to close in the third quarter of 2009.

Financial terms of the transaction are not being disclosed, but the value realized is in line with Integrys Energy Group’s recovered capital expectations associated with its nonregulated segment divestiture plans.

Through its energy consulting business, Integrys Energy Services provides energy advisory and information services for facility and corporate customers in the areas of risk management, strategic sourcing, utility data management, and demand-side energy management. This activity required negligible collateral support and generated sales of approximately $4 million in 2008.

Principles of Advanced Demand-Side Management, July 28-30, Milwaukee

From an announcement from the AESP:

We Energies is hosting AESP’s ADVANCED Principles of Demand-side Management, a new BETA training course targeting those professionals in DSM needing to significantly expand their DSM knowledge base, delve much deeper into DSM topics and thoroughly explore issues, trends, concepts and statistics in much greater detail. Practical exercises, case studies, lessons learned and best practices are also featured. This course is being beta tested at We Energies and we need your feedback! In return for your opinion and comments, the standard course fee is being reduced by 50% to $449.00for the 2.5 day course.

This course is an ideal adjunct to your existing DSM skill sets, expertise and understanding of the how DSM is reshaping energy efficiency. This dynamic, information-packed course is designed to be exceptionally interactive and is being delivered by two highly-acclaimed trainers well-versed in DSM.

Residential customer satisfaction with electric utilities increases - Yahoo! Finance

From an news release issued by J.D. Powers and posted on Yahoo! Finance:

WESTLAKE VILLAGE, Calif., July 16 /PRNewswire/ -- Residential customers of electric utility companies report lower bills and improved handling of power outages, resulting in an increase in overall satisfaction from 2008, according to the J.D. Power and Associates 2009 Electric Utility Residential Customer Satisfaction Study(SM) released today.

The study measures customer satisfaction with electric utility companies by examining six key factors: power quality and reliability; price; billing and payment; corporate citizenship; communications; and customer service.

The study finds that customer satisfaction with utility companies in 2009 averages 618 on a 1,000-point scale--up from 614 in 2008. Driving this improvement are customer reports of lower bill amounts ($130 in 2009 from $132 in 2008, on average) and fewer power outages (an average of 1.9 in 2009 vs. 2.1 in 2008)(1).

In addition, electric utility companies have improved notably from 2008 in three key aspects of power outage communications: availability of information; accuracy of outage restoration estimates; and follow-up contacts.

"Even in a challenging economic climate, electric utility companies have improved power reliability and enhanced communications with their customers, especially when outages occur," said Alan Destribats, vice president of the energy and utility practice at J.D. Power and Associates. "This investment in communication technologies and processes is key to the industry's overall improvement."

Court rules against local wind restrictions

From the written decision of the Wisconsin Court of Appeals, District 2 in ruling against Calumet County's restrictive ordinances that blocked the Ecker Brothers from adding turbines to the one already on their farm:

To encourage the use of renewable sources of energy, the legislature resolved to remove legal impediments to such systems in four ways: (1) codifying the right of individuals to negotiate and establish renewable energy resource easements; (2) clarifying the authority of, and encouraging, political subdivisions to employ existing land use powers for protecting access rights to the wind and sun; (3) creating a procedure for issuing permits to owners and builders of active solar and wind energy systems; and (4) encouraging political subdivisions to grant special exceptions and variances for renewable energy resource systems. Numrich, 242 Wis. 2d 677, ¶18 (citing Laws of 1981, ch. 354, § 1(2)(b)). No. 2007AP210913

These strategies indicate that the legislature determined it appropriate to give political subdivisions the power to assist in the creation of renewable energy systems and thus become an integral and effective factor in the State’s renewable energy goal. But, this history does not indicate that the State intended to delegate the power of policymaking. Instead, the evidence is that the State delegated the authority to execute and administer its established policy of favoring wind energy systems, and the statutory scheme was intended to create avenues for political subdivisions to assist the State. If the County and other similarly situated localities believe that localities should be able to decide for themselves whether and to what extent wind systems are welcome in their geographical area, their argument is best made to the legislature.

Because the legislature did not delegate legislative powers to localities, the County cannot make findings of legislative fact. The County thus exceeded its authority under WIS. STAT. § 66.0401 when it created its wind energy ordinance. We therefore hold the ordinance to be [beyond the authority of the county].

We reverse and remand with directions that the circuit court reconsider the Ecker Brothers’ declaratory judgment action given that the ordinance is [beyond the authority of the county].

Wis. to get $5.4 million for Energy Star rebates

From a post on Tom Content's blog on JSOnline:

The state of Wisconsin is slated to receive $5.4 million from the federal stimulus package to fund rebates for consumers to buy energy-efficient home appliances, the U.S. Department of Energy said Tuesday.

DOE announced it will make $300 million available nationwide from the American Recovery and Reinvestment Act to help boost sales of energy-efficient appliances and help homes become more energy-efficient.

“Appliances consume a huge amount of our electricity, so there’s enormous potential to both save energy and save families money every month,” said Energy Secretary Steven Chu in a statement. “These rebates will help families make the transition to more efficient appliances, making purchases that will directly stimulate the economy and create jobs.”

It’s Time to Bring Renewable Energy Home

From a commentary by Michael Vickerman, RENEW Wisconsin, July 12, 2009:

In a unanimous vote, the Public Service Commission (PSC) recently cleared the way for Alliant Energy’s Wisconsin utility to construct a 200 megawatt (MW) windpower plant project in southern Minnesota. Once operational, the Bent Tree project, costing upwards of $450 million, will be a productive source of renewable energy that will provide lasting benefits to Minnesota’s economy and environment. Since it will be Alliant’s Wisconsin customers who foot the bill, however, it is reasonable to inquire whether the current utility practice of outsourcing renewable energy production to other states is a good thing for Wisconsin’s economy.

Because we can’t see it, taste it, hear it or smell it, we tend to lose sight of the fact that electricity is a manufactured product. To make it, capital is amassed and expended on machinery that convert raw resources like coal, flowing water, and wind into this highly useful form of energy. The electricity is then transported via networks of wires to power factories, illuminate residences and streets, propel commuter trains, and energize the complex communications systems that allows to store vast quantities of instantly retrievable information. It is hard to name a manufactured product that adds more value to an industrialized society than electricity.

Yet electricity’s impact on the economy is not defined solely by the activities it supports. There is as well the intense amount of economic activity that goes into building the power plants themselves. In the case of Bent Tree, the capital used to manufacture, transport and erect 122 wind turbines will unleash a year-long burst of construction work in Freeborn County employing hundreds of skilled laborers and technicians. The work will also ripple through nearby component manufacturers involved with the project, as well as ports and other transfer points where components are unloaded and loaded onto special vehicles and hauled to the project zone. . . .

If Wisconsin truly desires to provide a home to a viable renewable energy economy, it will have to redefine the public interest standards that govern the expenditure of ratepayer dollars. This means giving such economic benefits as job creation, component manufacturing, workforce participation, increased tax receipts to local and state government, and reduced dependence on future transmission upgrades as much due consideration as cost per megawatt-hour. Granted, this is a form of industrial policy. However, if state policymakers don’t take steps to build a solid market structure for generating more renewable electricity here at home, Wisconsin’s ability to compete for good jobs and business opportunities could become hopelessly compromised.

Wisconsin loses economic boost from Alliant's Bent Tree wind project

Statement by Michael Vickerman, Executive Director, RENEW Wisconsin, on Public Service Commission approval of the Bent Tree Windpower Plant:

The Public Service Commission today cleared the way for Alliant Energy’s Wisconsin utility to construct a 200 MW windpower plant project in southern Minnesota. Once operational, the Bent Tree project will be a productive source of renewable energy that will provide lasting benefits to Minnesota’s economy and environment. Since it will be Alliant’s Wisconsin customers who foot the bill, however, it is reasonable to inquire whether the current utility practice of outsourcing renewable energy production to other states is a good thing for Wisconsin’s economy.

It is true that windpower projects in Iowa and Minnesota are lower-cost sources of electricity than those in Wisconsin. However, when a Wisconsin utility locates a renewable energy project in another state, Wisconsin loses the economic boost from building and operating that project—construction and maintenance jobs, component manufacturing, tax receipts to local governments, landowner payments, etc.

In a weakening economy, we should question the wisdom of outsourcing renewable energy production to other states. A Bent Tree-sized facility in Wisconsin would generate $800,000 a year in local government revenues and about $700,000 a year in lease payments to landowners. It would also create hundreds of jobs for operating engineers, ironworkers, electricians, specialty haulers, and wind energy technicians. Is cheaper electricity from distant sources a reasonable trade-off for lost employment opportunities and revenues to state and local governments. RENEW does not believe so.

Legislative approval of state-wide uniform siting standards for wind energy projects would certainly help reduce the regulatory risks involved in utility development of projects in Wisconsin.

Midwestern green power transmission project gains new partner

From an article by Jordan Burke on Bloomberg.com:

July 7 (Bloomberg) -- MDU Resources Group Inc., the largest company in the Dakotas, said it will join with ITC Holdings Corp. in developing the Green Power Express, a transmission project that will link wind farms in the U.S. Plains to cities.

The transmission lines will run about 3,000 miles (4,827 kilometers) through North Dakota, South Dakota, Iowa, Wisconsin, Minnesota, Illinois and Indiana, MDU said today in a statement. MDU, based in Bismarck, North Dakota, said the Green Power Express will carry as much as 12,000 megawatts. One megawatt can power about 800 average U.S. homes, according to the Energy Department in Washington.

The project will cost about $10 billion to $12 billion, and MDU will be the first of many partners involved, Novi, Michigan- based ITC said in a separate statement. The lines will carry power to major markets in the U.S. Midwest and mid-Atlantic regions, the company said.

AESP Brown Bag Seminar: Reaching out to low-income customers, July 19

From the AESP:
Reaching Out to Low and Limited Income Customers: Case Studies in Delivering Energy Efficiency Programs to Those Customers Who Need the Most Help

Thursday, July 16, 2009 at 1:00 p.m. (Eastern)

Description:
Learn about three different programs are working to reach out and provide programs and services to low and limited income customers in their service territories. Program designs, lessons learned and advice for how to best engage and serve this customer segment will be shared.

It's not just Buffett buying utilities

From an article by John Reese in Forbes:

When the global equity markets plunged last fall, just about everything was dragged down with them. In the U.S., even the best-performing sectors still lost close to 20% of their value, and almost every industry was in the red.

As the market has roared back this year, however, the rising tide hasn't lifted all ships. While some sectors are up close to 50% in 2009 and several others are up in the 20% to 30% range, a few are nowhere near those figures, according to Morningstar.

One of the laggards: the utilities sector, both in the U.S. and globally. The Dow Jones Utility Average is down about 5% this year, while the MSCI World Utility Index is down about 10%. That's been bad news for utility stockholders, but good news for value investors looking for bargains.

Many power producers are paying dividend yields of 5% and higher--among the highest yields from the utility group in the past two decades. Plus, these companies are selling at their lowest valuation levels in five year--and smart institutional money is starting to flow in to the sector.

Lake Erie likely to get wind turbines first

From an article by Tom Content in the Milwaukee Journal Sentinel:

The first wind turbine development on the Great Lakes could be built within three years or so, experts on offshore wind power said during a conference Wednesday in Milwaukee.

The first project is expected to consist of three to five turbines just off the shore of Cleveland in Lake Erie.

The project is being pushed by the Cuyahoga County government as an economic development strategy to help boost the development of a wind-power manufacturing industry in a state that's been hit hard by cutbacks in the auto industry, said Steve Dever of the Ohio Great Lakes Energy Development Task Force.

During the Great Lakes Wind Collaborative meeting at We Energies, experts on offshore wind in Wisconsin said they expect development to start slowly over the next few years. But the industry could grow rapidly from there, the experts said.

"In 2010-2013 you'll see pilot projects get started. Then I think we'll see incredible growth - really, really rapid growth," said Tom Stanton of the Michigan Public Service Commission. . . .

Experts believe wind speeds are much faster over large bodies of water than over land, with parts of Lake Michigan and Lake Superior having stronger winds than Iowa and Minnesota, two of the leading states in generation of wind power.

Wisconsin is looking into Great Lakes wind power as one option for the state to generate more renewable energy that would help reduce the state's greenhouse gas emissions, said Deborah Erwin of the state Public Service Commission.

Sustainability Cruises

We're going out this Sunday, July 5th from 4-7 pm

The purpose of the cruises is to get career people and students in the environmental sciences together. We rig and sail for a while, then take a break while everbody shares what environmental sustainability interests they're pursuing as well as their take on a current hot topic.

See http://myhoofers.org/sustainability_cruise for more info and to reserve a place. Mulder reminds me to tell you that friends and and friendly dogs are welcome. We can take a total of 13, and it always fills up plus, it seems, a few stowaways.

If this time doesn't quite work for you, let me know. We can still adjust the time to go earlier or later, or longer, or pick you up or drop you off, etc...

This week's topic will be the American Clean Energy and Security Act. Now that the Waxman-Markey Bill has passed the House, what's left in it and how will it fare in the Senate? Does it really matter?

See you on the water...

Hugh Schmidt

Video celebrates 10th anniversary of Kewaunee County wind farm

From a news release issued by Madison Gas and Electric:

MADISON, Wis. - (Business Wire) Wisconsin's first large-scale wind farm began producing clean, renewable electric power 10 years ago today in Kewaunee County. The 17-turbine, 11.22-megawatt facility built and owned by Madison Gas and Electric (MGE) is located near Rosiere. Since 1999, the facility has produced over 215,000 megawatt-hours of electricity, enough power to supply 3,000 homes annually.

The facility was built in direct response to MGE customers who wanted to purchase green energy for their homes and businesses. The wind farm's generating capacity available for green energy sales was sold out in less than four months. Over the last 10 years, MGE has increased its wind energy portfolio by 12 times as strong customer support for renewable energy continues. MGE customers have one of the highest participation rates nationally in green energy programming offered by investor-owned utilities.

"We are grateful to the landowners and communities that support this project," said Lynn Hobbie, MGE senior vice president. "We also thank the customers who have made our green pricing program so successful."

"In 10 years, wind generation has completed the transition from boutique energy to a bulk power," said Michael Vickerman, executive director of RENEW Wisconsin. "Early commitments to wind power from utilities like MGE helped make that happen and were instrumental to that industry's subsequent growth and maturation."

At the time, MGE's Rosiere facility was the largest wind farm in the Eastern United States. Today the wind farm is one of nine commercial facilities in Wisconsin. Wind-generating capacity in Wisconsin totals nearly 450 megawatts.