RENEW Rips WPS’s Net Metering Proposal

For immediate release
May 23, 2012

More information
Michael Vickerman
608.255.4044, ext. 2  

Another example of company backsliding on renewables 

In documents filed in conjunction with its pending rate case, Green Bay-based Wisconsin Public Service Corporation (WPS) proposed several rollbacks to its net metering service that would, if approved, sharply restrict a customer’s ability to generate electricity from renewable energy resources and sell a portion of it back to the utility.

Net metering allows customers to sell the unused output from their solar electric or other renewable energy system back to the utility at the full retail rate from month to month, so long as the surplus electricity is less than or equal to the customers’ usage in a 12-month period.

Currently, WPS customers may install solar or wind energy systems on their premises up to 100 kilowatts (kW). Beginning in January 2013, WPS would roll back that capacity limit to 20 kW.

WPS has also proposed to cap the overall size of its net metering offering at one-half of one percent of 2011 summer peak. No other Wisconsin utility has ever sought to impose capacity-based limits to its net metering service.

“What WPS proposes would be a really bad deal for customers installing small renewable energy systems serving their homes or businesses,” said Michael Vickerman, program and policy director for RENEW Wisconsin, a nonprofit advocacy organization promoting renewable energy use in Wisconsin.

“These service changes are clearly intended to discourage its customers from investing in solar and small wind energy systems,” Vickerman said. “If WPS gets its way, the renewable energy marketplace in that part of Wisconsin will slow down significantly.”

“At a time when the customers and communities in WPS territory are looking to renewable energy to support new jobs and manage their energy costs, the company is doing its level best to take that option away from them,” Vickerman said.

As an intervenor in WPS’s rate case, RENEW Wisconsin will ask the Public Service Commission to:
• Reject WPS’s proposal to impose a system-wide cap on net metering service;
• Maintain the current maximum system size at 100 kW; and
• Base WPS’s calculation of net energy on annual usage instead of monthly usage.

“What we will ask for is a standard of service that is already offered by two Wisconsin utilities: Madison Gas & Electric (MGE) and Xcel Energy,” Vickerman said. “WPS’s proposal is a particularly egregious example of company backsliding.”

Vickerman noted that MGE, which also has a pending rate proceeding before the Public Service Commission, did not propose any changes to its net metering service for 2013 and 2014.

 “We urge the PSC to work toward a uniform net metering policy for the state using MGE’s and Xcel’s service as a template,” Vickerman said.

Vickerman added: “WPS, it should be remembered, was the driving force behind the “Outsource Renewable Energy to Canada Act,” which was signed into law in 2011. That law lets utilities apply the energy they purchase from large Canadian hydropower sources toward their renewable energy requirements, at the expense of in-state renewable energy providers. Within that context, WPS’s net metering proposal constitutes another slight to Wisconsin’s renewable energy marketplace.”

END 

RENEW Wisconsin is an independent, nonprofit 501(c)(3) that leads and represents businesses and individuals who seek more clean, renewable energy in Wisconsin. More information on RENEW’s Web site at www.renewwisconsin.org.

10 types of companies that consume the most electricity

From an article posted on Compare Electricity Rates:

1.Chemicals – Fertilizers and pesticides are among the main processed-chemicals that require huge amounts of power to produce and transport.
2.Petroleum – The U.S. refines nearly a quarter of all the world’s crude oil at nearly 150 refineries across the country, and these refineries consume incredible amounts of power.
3.Paper Industry – The United States would be lost without paper products, and is the world’s leading producer of paper, another industry that is energy-intensive.
4.All that Glitters – All that glitters may not be gold, but America is one of the global leaders in the production of cast-metal, the industry that brings us such life-staples as cookware and faux Christmas trees.
5.Planes, Trains and Automobiles. . . – . . .and trucks and buses and ships, et.al. The transportation industry uses more than 25% of all the energy produced in the country, and waning supplies of fossil fuels have necessitated an accelerated changeover to alternative fuel sources, including electricity.
6.Heating, Ventilation and Cooling – The heating, ventilation and cooling (HVAC) industry used to involve nothing more than fireplaces, blocks of ice and strategically placed doors, windows and porches, but today’s industry requires large amounts of power on a national scale.
7.Appliances – We like our clothes kept clean, and we like our food kept cold until we cook it in our self-cleaning ovens, and the appliances we use to attain these goals use up a lot of power to make and to use.
8.Electronics – Televisions, computers, track-lights, alarm systems and hundreds of other devices fill our domestic world, and every blinking little red light means power is being used.
9.Commercial Buildings – A store or warehouse uses a lot of electricity whether it is open or not, and most other commercial buildings require significant amounts of power to heat, cool and secure.
10.Construction Industry – Even during construction slowdowns the industry consumes power at a great rate, and industry up-ticks use even more power as more projects are generated.

WP&L and WPS warn of higher rates because of pollution rules

From an article by Tom Content published in the Milwaukee Journal Sentinel on August 19:

Two state utilities said this week new federal pollution rules will lead to higher electricity costs come January.

Wisconsin Public Service Corp. of Green Bay said its residential customers can expect an increase of more than $4 a month next year, including about $2 linked to the new rules designed to limit air pollution from coal-fired power plants.

The utility said it would see higher costs of about $32.6 million in 2012 from the Cross-State Air Pollution Rule that was finalized recently by the U.S. Environmental Protection Agency. That will result in rates going up by 6.8% instead of 3.4%, the utility said.

The U.S. Environmental Protection Agency last month finalized stronger regulations for Wisconsin and 26 other states aimed at curbing air pollution from long-distance sources.

Environmental groups praised the new rule because it would reduce acid rain and air pollution as well as help curb health effects from dirty air linked to coal plants. The EPA projected the rule will save up to 34,000 lives a year and prevent more than 400,000 asthma attacks as well as 19,000 admissions to hospitals. . .

The new rule has been in development for several years but the first phase of compliance hits utilities in 2012. WPS said it won't have time to install pollution controls by next year at its plants, but will be able to comply by purchasing credits from other utilities that have cut emissions.

The utility also said it plans to operate its coal plants less next year than it otherwise would have, and will buy more power from the Midwest wholesale power market as a result, a move that it said is also a factor in higher costs for customers. . . .

On Thursday [August 18], Wisconsin Power & Light Co. [Alliant] of Madison said it would face an additional $9 million in costs linked to the air pollution rule. With the change, the utility is now seeking an increase in 2012 of $20 million, or 2%, utility finance manager Martin Seitz said in a filing with state regulators.

Todd Stuart, executive director of the Wisconsin Industrial Energy Group, criticized the increases, and he noted that large energy users like paper mills will see higher than average increases, compared with homeowners and small businesses. Paper mills served by WPS could see a 9% hike, he said. . . .

"Industry always cries wolf whenever EPA tries to reduce air pollution," said Katie Nekola, lawyer with the conservation group Clean Wisconsin. "The fact is, the new rule will affect old, inefficient, unnecessary coal plants that should have been shut down long ago. The continued operation of those old units is costing ratepayers money, but you don't hear industry complaining about that."

RENEW asks PSC to stop We Energies' termination of renewable program

From the testimony of RENEW presented by Michael Vickerman, who draws attention to the fact that We Energies is trying to defund its $6 million/year renewable energy development program without any justification. In fact We Energies doesn't say anything about their actions. RENEW asks the PSC not to sanction this sleight of hand maneuver:

Q. What is the purpose of your testimony?
A. The purpose of my testimony is to discuss the May 2011 decision by We Energies to cancel a 10-year, $60 million commitment to support renewable energy development in its service territory. . . .

My testimony includes a recommendation to the Commission that it not allow We Energies to reallocate in 2012 the $6 million per year it had committed to spend on renewable energy development activities for other purposes. . . .

Q. What elements of We Energies’ Renewable Energy Development program do you consider to be particularly successful?
A. Several of We Energies’ customer incentives and tariffs were unique in the way they complemented Focus on Energy’s renewable energy program. For example, We Energies was the first utility to: (1) offer a solar energy-specific buyback rate; (2) increase the net energy billing capacity ceiling for small wind systems generators to 100 kW; and (3) support renewable energy-specific conferences and events such as Solar Decade held in Milwaukee. Perhaps the most innovative element in We Energies’ program, however, was its special incentive for nonprofit customers seeking to install renewable energy systems. Every three months, We Energies would solicit proposals from schools, religious institutions, local governments, nature centers and other nonprofit entities to co-fund new renewable energy systems on their premises. This We Energies incentive supplemented Focus on Energy grants and cash-back awards. It was designed to overcome the inability of these nonprofit entities to capture federal renewable energy tax credits to offset their own system acquisition costs. As a result of this unique incentive, there are more renewable energy systems serving nonprofit customers in We Energies territory than in any other utility territory. This initiative has an educational component to it as well; We Energies posts real-time production data from these systems on its web site.

We Energies Terminates Its Renewable Energy Program

For immediate release
May 13, 2011
More information
RENEW Wisconsin
Michael Vickerman
608.255.4044
mvickerman@renewwisconsin.org

We Energies Terminates Its Renewable Energy Program
Utility Pulls Plug on $6 Million a Year Commitment

As reported on its Web site, Milwaukee-based We Energies will discontinue an innovative and effective renewable energy development program that supported scores of renewable energy systems throughout its service territory. [The announcement can be accessed at http://www.we-energies.com/re.]

“It’s a sad day when the state’s largest utility decides to walk away from its commitment to a clean energy future,” said Michael Vickerman, executive director of RENEW Wisconsin, a statewide organization advocating for public policies and private initiatives that advance renewable energy.

As indicated in various filings with the Public Service Commission, We Energies had committed to spend $6 million a year over 10 years to increase its renewable energy supplies and make renewable energy more affordable to its customers through grants and incentives. We Energies’ commitment came in the wake of a settlement with RENEW over the utility’s plans to build two coal-fired power stations in southeast Wisconsin.

Of the $60 million committed, the utility has spent approximately $30 million since 2006. This program will be zeroed out in We Energies’ next rate filing, which will cover 2012 and 2013.

This program supported numerous customer-sited renewable energy installations [see list below], conferences and workshops, research and development activities, and innovative buyback rates.

“Perhaps not coincidently, the decision to terminate this program comes just months after We Energies placed its second coal-fired plant in service. The $6 million a year was a small price to pay for the all of the renewable energy advances that occurred while the utility built two coal plants,” said Vickerman.

“Now that the coal plant is up and running, it appears that the program has outlived its usefulness to We Energies,” Vickerman said.
Six million dollars equates to about .025 percent of We Energies’ annual expenditures.

“This cancellation comes as a blow to area contractors and businesses that were relying on the program to create jobs and clean energy,” said Vickerman. “The achievements leveraged far outweigh the program’s negligible cost.”

“Between utility program cutbacks and state government rollbacks, Wisconsin’s policy framework for supporting renewable energy will be largely dismantled by the end of the year.”

--END- -

RENEW Wisconsin is an independent, nonprofit 501(c)(3) organization that acts as a catalyst to advance a sustainable energy future through public policy and private sector initiatives. More information on RENEW’s Web site at www.renewwisconsin.org.

Customer-owned renewable energy success stories and live data

A growing number of customers have their own renewable energy facilities. The links below go to summaries of the projects and/or real-time production data from the solar photovoltaic, solar hot water and wind renewable energy generation systems.

Solar electric photovoltaic
Ascension Lutheran Church
Cedar Community
City of Brookfield Safety Building
Concordia University Wisconsin
Cooper Elementary School
Cross Lutheran Church
Crown of Life Lutheran Church
Energy Producing Home #1
Evangelical and Reformed United Church of Christ - Waukesha
Fairview Charter School
Family Enrichment Center of Ozaukee County
First Congregational Church - Port Washington
First Unitarian Society of Milwaukee
Fox River Christian Church
Fox Valley Lutheran High School
Gateway Technical College Horizon Center Solar Tracker
GE Healthcare
GE Research Park
Good Shepherd Evangelical Lutheran Church and School
Growing Power - Milwaukee
HOPE Christian School
Johnson Foundation
Kettle Moraine Lutheran High School
La Casa de Esperanza
Lake Country School
Lake Park Lutheran Church
Lawrence University
Madison Area Technical College - Fort Atkinson Campus
Madison College - Fort Atkinson
Menomonee Falls North Middle School
Milwaukee Area Tech College - Oak Creek
Milwaukee Central Library
Milwaukee County Zoo
Milwaukee Metropolitan Sewerage District
Milwaukee Recycling Education Facility
MSOE:Fat Spaniel Tech MSOE Monitor
Navarino Nature Center
North Shore Presbyterian Church
Our Savior Lutheran Church
Outpost Natural Foods
Pragmatic Construction Home 1 - PV
Purdy Elementary School - Fort Atkinson
Racine City Hall Annex
Racine Eco-Justice Center
Racine St. Catherine's High School
Schlitz Audubon Nature Center
St. Matthew’s Evangelical Lutheran Church
Shoreland Lutheran High School
Shorewood School District
Still Point Zen Center
The Order of Julian of Norwich
Town of Greenville
Town of Menasha
Unitarian Universalist Church West
United Community Center
University of Wisconsin - Milwaukee
University of Wisconsin - Parkside
Urban Ecology Center
Village of Marshall Wastewater Treatment Facility
Village of Wind Point
Walden III Middle and Senior High School
Waukesha County Technical College
Wauwatosa Fire Department
Whitewater Innovation Center
Wisconsin Lutheran College
Wisconsin State Fair Park

Solar water heating
Fort Atkinson High School Solar Thermal
Fort Atkinson Middle School Solar Thermal
Milwaukee Habitat for Humanity SHW 1
Milwaukee Habitat for Humanity SHW 2
We Energies HQ: Fat Spaniel Tech Wired Solar

Solar electric photovoltaic and wind
Discovery World
Lakeshore Technical College
Mequon Nature Preserve
Milwaukee Area Tech College - Mequon

Wind
Boys & Girls Club of Greater Milwaukee – Camp Whitcomb Mason
Village of Cascade Wastewater Treatment Plant

List from We Energies' Web site -- http://www.we-energies.com/residential/energyeff/active_installdata.htm

We Energies may not meet renewable energy standard

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

We Energies won final approval to build a $255 million biomass power plant in north-central Wisconsin Thursday.

The utility had wanted a decision this week to help it keep on target to complete construction by late 2013.

But the utility hasn’t decided whether it will proceed with the building the plant at this point. Utility spokesman Brian Manthey said We Energies and Domtar Corp., its partner in the project, are reviewing conditions that regulators attached to the deal – conditions that aim to bring down the overall cost of the project for utility customers.

The biomass plant at the Domtar paper mill in Rothschild is being proposed at a time when the utility has enough power to meet the needs of its customers but is required because of the state’s renewable portfolio standard.

That standard, adopted by the state Legislature in 2006, requires that 8.25% of We Energies’ power come from renewable sources by 2015.

If the project does not move forward, We Energies executives told investors last week they would want to have discussions with the Walker administration about alternatives, including a possible way of delaying the company's compliance with the law.

There have been discussions of possible legislation that would help the utility delay the time frame for complying with the law, or it could take advantage of “off-ramps” built into the 2006 law that would allow it more time to comply.

Xcel 2010 utility green power leaders

From a news release issued by the National Renewable Energy Lab:

The U.S. Department of Energy's (DOE) National Renewable Energy Laboratory (NREL) today released its annual assessment of leading utility green power programs. Under these voluntary programs, consumers can choose to help support additional electricity production from renewable resources such as wind and solar.

Green power sales from utility programs exceeded 6 million megawatt-hours (MWh) in 2010. Wind energy now represents more than three-fourths of electricity generated for green energy programs nationwide.

Using information provided by utilities, NREL has developed "Top 10" rankings of utility green power programs for 2010 in the following categories: total sales of renewable energy to program participants, total number of customer participants, the percentage of customer participation, green power sales as a percentage of total utility retail electricity sales, and the lowest price premium charged for a green power program using new renewable resources. According to NREL, more than 850 utilities across the United States offer green power programs.

Ranked by renewable energy sales (kWh/year), Austin Energy in Austin, Texas sold the largest amount of renewable energy in the nation through its voluntary green power program. Rounding out the top five are Portland General Electric (Oregon), PacifiCorp (Oregon and five other states), the Sacramento Municipal Utility District (California), and Xcel Energy (Colorado, Minnesota, Wisconsin and New Mexico).

Wisconsin poised to be energy exporter

From an article by Matt Hrody on NewsBuzz:

After the brownouts of the late 1990s, electric utilities in Wisconsin got serious about adding generating capacity. Although the new power plants that followed, including ones in the Milwaukee area, ultimately increased rates for customers, they could become a boon for them as the economy rebounds, according to the state’s new Strategic Energy Assessment. Wisconsin could become a leading exporter of electricity in the Midwest with profits helping to keep a lid on rates at home.

The Assessment, released earlier this week, projects that the state’s generating capacity will exceed demand in the state by 20 percent until 2015. The “reserve margin,” as it’s called, will peak this year at 26 percent. To the state Public Service Commission, which regulates electric utilities in the state and produced the report, the margin may be too large. “There is reason for concern,” it says, “when reserve margins are in excess of 20 percent.”

According to Charlie Higley, executive director of the state Citizens’ Utility Board, the costs for running and maintaining unneeded power plants, particularly older, less efficient ones that burn coal, are passed onto consumers.

The Commission suggests that the state’s excess capacity could become an opportunity. While Wisconsin has undergone a large build-up of power plants, other states haven’t. “Other states may not be as well-positioned with capacity in their near futures,” the report says, “and Wisconsin utilities may increasingly serve as energy exporters.”

Profits from those exports – wholesale power sales to municipalities or other customers throughout the Midwest – must be used to pay for rising fuel costs, according to Higley. Fuel costs are a major driver of rate increases, which could be offset by an increase in wholesale profits.

The Commission agrees. “While this market is evolving, the opportunity exists for excess generation sales to benefit ratepayers,” the report says.

“Any profit is returned to ratepayers, and that’s fine with us,” says Higley, but neither he nor the Commission yet knows how large the returns could be.

State electricity needs won't rise as much as thought, according to report

From an article by Judy Newman in the Wisconsin State Journal:

Projections for the rise in state electricity needs have dropped by nearly two-thirds, according to a report approved by state regulators Thursday.

The Public Service Commission's Strategic Energy Assessment, looking at Wisconsin's energy needs through 2016, shows state utilities now expect the need for electricity at times of highest demand will grow about 1 percent a year, down from peak demand growth of 2.75 percent a year, projected just two years ago. The figures were scaled back because of the economic downturn, the PSC said.

Wisconsin utilities continue progress toward renewable energy standard

From a news release issued by the Public Service Commissiion of Wisconsin:

MADISON – Two reports released today by the Public Service commission of Wisconsin (PSC) indicate that Wisconsin’s electric utilities and cooperatives continue to make steady progress in adding renewable energy to the state’s energy supplies. All of the electric providers meet or exceed state requirements and many offer incentives to customers who want to generate their own renewable electricity.

Renewable Portfolio Standard Compliance

Wisconsiin’s Renewable Portfolio Standard (RPS) law requires retail electric providers to produce 66 percent of the state’s eelectricity from renewable resources by the year 2010, and 110 percent by 2015. each year, Wisconsin utilities and cooperatives are required to report to the PSC their progress in meeting thee renewable milestones. Today the PSC released the 2009 RPS compliance Report which indicates:

+ All 118 Wisconsin electric providers met their RPS requirement for 2009;
+ 113 providers exceeded their requirements for the year, creating excess renewable resource credits that can be banked and used for compliance in future years; and,
+ In 2009, 6.29 percent of the electricity sold by the state’s utilities and cooperatives was generated from renewable resources, up from 4.90 percent in 2008.

Distributed Renewable Generation

PSC also released a status report on its investigation into “advanced a term renewable tariffs,” a term used to describe long-term contracts whereby utilities and cooperatives offer to purchase electricity at premium prices from customers who generate electricity from small, renewable systems such as solar panels. Highlights of the status report include:

+ More than 300 of Wisconssin’s electric providers, representing about 90% of the state’ s electricity market, have voluntarily offered this kind of incentive;
+ Customers have responded by installing more than 10 MW of small, distributed capacity utilizing biogas (from manure digesters on farms), solar panels, and wind turbines; and,
+ An additional 8.2 MW off generation capacity, mostly from biogas projects, is under construction and will soon be generating electricity.

Rising electricity cost has jolted state

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

The price of electricity has shot up faster in Wisconsin than in all but five other states since 2000, which could pose a threat to the state's economic competitiveness, a new analysis by the Wisconsin Taxpayers Alliance says.

Wisconsin businesses and homeowners are paying more than most surrounding states, as the state continues to pay for power plant upgrades that followed near-brownouts in the late 1990s.

That, coupled with rising natural gas and coal prices, has pushed rates up. The state's electricity prices, which ranked 11th-lowest in the nation in 1990, now rank 20th-highest, the report found.

"We need to recognize that energy prices really do have an effect on the competitiveness of the state," said Kyle Christianson, policy research analyst at the nonpartisan Taxpayers Alliance. "We're talking about trying to attract employers and adding new jobs, and particularly in a manufacturing-intensive economy like Wisconsin, energy prices are a major cost of doing business."

Utilities regulators defend Wisconsin's power plant building boom as important to keeping the state's economy competitive over the long run.

"A manufacturing state simply cannot survive without a reliable electric infrastructure," said Bob Norcross, administrator at the state Public Service Commission. "Wisconsin responded to its reliability crisis by making necessary investments that were in large part supported by the state's business community, and they were sound. The rebuilding period that accompanied those infrastructure investments is now reaching an end, but we need to pay for them - and that's why we have rate pressure. . . ."

Charlie Higley, executive director of the Wisconsin Citizens' Utility Board, is concerned that rate increases will continue for residential customers.

"Our households are paying a high price for electricity, and it's hurting their ability to make ends meet," Higley said.

Wisconsin now has a power glut that prompted the state Public Service Commission to launch an investigation into whether some of the state's older power plants should be mothballed or shut down.

Shutting down coal would help the state's customers from having to cover the rising coal prices, Higley said.

"Since we get most of our power from coal that means we're very susceptible to paying higher rates because of higher coal prices," Higley said. "It underlies our calls for moving toward cleaner energy solutions like renewable energy and energy efficiency, which don't have fuel costs."

But Klappa said the record power use this summer - in the midst of an economy that's slow to emerge from the Great Recession - underscores that Wisconsin doesn't have a power glut.

"We never had a 95-degree day this summer and we set two energy consumption records for customers, July for residential customers and August for small commercial and industrial customers," he said. "There's not a lot of excess."

WPS sister company invests heavily in solar electricity

From a blog post by Tom Content on JSonline:

Wisconsin-based Integrys Energy Services will invest $90 million in new solar power projects around the country under an agreement through a partnership with Duke Energy of North Carolina and Smart Energy Capital of New York.

Under the partnership, Duke and Integrys said they will each invest $90 million over the next two years in distributed solar projects, which will be operated and maintained by the two energy companies.

Smart Energy Capital, a finance and investment company focused exclusively on the North American solar electric industry, will develop the projects and arrange financing under the partnership.

Integrys has been actively pursuing solar projects since 2008.

“We have invested more than $65 million in 20 different distributed generation solar projects across the U.S. with a combined capacity of more than 10 megawatts,” said Joel Jansen, managing director at Integrys Energy Services, in a statement.

Duke and Integrys said they believe most growth in the solar market over the next several years will involve commercial-scale applications on building roofs and ground-mounted systems. . . .

Integrys Energy Services is based south of Green Bay and is a national energy company that markets natural gas as well as electricity in states like Illinois that have opened up their power markets to competition. It is a sister company of Wisconsin Public Service Corp., the electric and natural gas utility serving northeastern Wisconsin.

State says power supplies will be plentiful through 2016

From an article by in the Milwaukee Journal Sentinel:

Construction of new power plants plus a recession that wiped out surging demand for electricity have brought on a power glut, with Wisconsin having more than enough power to meet its needs through 2016, a report released Tuesday says.

The state Public Service Commission's Strategic Energy Assessment, conducted every two years, is a planning document aimed at providing information about where the state stands in meeting its energy needs.

The assessment notes that the average price paid for electricity by Wisconsin businesses and residents has been rising and now stands above the Midwest average for residential, commercial and industrial customers.

Comparisons with other states can be difficult, the report notes, because of the different types of energy regulation that exist in different states. Nearby states such as Illinois and Michigan have opened up their power markets to competition.

Thanks to new power plants, such as the We Energies coal-fired power plant in Oak Creek, Wisconsin will have at least 24% more electricity available than it needs to meet projected demand, the report says.

"Excess reserves may increase the opportunity for Wisconsin utilities to export power in the regional market," the report says. "While this market is still evolving, the opportunity exists for excess generation sales to benefit ratepayers."

At the same time, the commission is investigating whether the power glut gives the state an opportunity to mothball or retire some of the state's aging coal-fired power plants.

Wind generation reduces climate-changing emissions

From a report titled "The Facts about Wind Energy’s Emissions Savings" prepared by the American Wind Energy Association:

. . . four of the seven major independent grid operators in the
U.S. have studied the emissions impact of adding wind energy to their power grids, and all four have found that adding wind energy drastically reduces emissions of carbon dioxide and other harmful pollutants. While the emissions savings depend somewhat on the existing share of coal-fired versus gas-fired generation in the region, as one would expect, it is impossible to dispute the findings of these four independent grid operators that adding wind energy to their grids has significantly reduced emissions. . . .

DOE data show that wind and other renewables’ share of Texas’s
electric mix increased from 1.3% in 2005 to 4.4% in 2008, an increase in share of 3.1 percentage points. During that period, electric sector carbon dioxide emissions declined by 3.3%, even though electricity use actually increased by 2% during that time. Because of wind energy, the state of Texas was able to turn what would have been a carbon emissions increase into a decrease of 8,690,000 metric tons per year, equal to the emissions savings of taking around 1.5 million cars off the road.

ATC expands 10-year plan to $3.4 billion

From a blog post by Tom Content on JSOnline:

American Transmission Co. on Thursday unveiled a 10-year transmission plan that calls for higher spending than the same report envisioned a year ago.

Driving the $3.4 billion electric transmission system assessment are a series of new projects that aim to help take advantage of lower cost power across the Midwest as well as help import renewable energy into Wisconsin, the power-line utility said in a statement.

“There is an increasing need for an expanded regional transmission system because of an emerging wholesale marketplace and federal and state policy changes,” said Flora Flygt, ATC director of strategic projects.

Projects included in the 10-year plan include a proposed 150-mile, 345,000-volt power line linking Madison and La Crosse, as well as upgraded transmission system facilities to accommodate increased power that’s proposed to be generated by the Point Beach Nuclear Plant in Manitowoc County.

In addition, a six-mile, 345,000-volt line will be proposed to alleviate transmission congestion in Kenosha County, ATC said.

Xcel's CEO among those calling for a tax on carbon

From an article by Neal St. Anthony in the Star Tribune, Minneapolis-St. Paul, MN:

Dick Kelly, CEO of Xcel Energy Inc., is irked that Congress hasn't raised his taxes.

"We need a price on carbon," said Kelly, who runs a multistate utility in the vanguard of next-generation efficiency and cleaner-energy programs.

Kelly, Duke Power CEO Jim Rogers and other utility executives have been expecting Congress to pass cap-and-trade legislation, which would effectively place a tax on carbon emissions. Both Xcel and Duke have moved expeditiously in recent years to modernize old coal-fired plants, switch to wind and natural gas, and implement conservation programs in a bid to cut their carbon dioxide emissions by up to 25 percent by 2025 and meet state mandates to reduce pollutants that climate scientists say lead to global warming.

"The industry could have worked with the 'Kerry-Lieberman' bill in the Senate, but the Republicans backed away and started calling it 'cap-and-tax,'" Kelly said.

So instead of providing incentives for the utility industry to invest in next-generation, clean-coal programs and promising carbon-diversion efforts, the U.S. Senate is now considering more rules and mandates instead. Kelly and Rogers think that's a mistake.

'Let's move forward'

"There is growing consensus in the electric utility industry to act now, so let's move forward," Rogers wrote earlier this summer. "Duke Energy and other electric utilities are already scheduled to retire and replace virtually all coal and other large power plants with cleaner and more efficient technologies by 2050.

"A clear and predictable federal energy and climate policy can accelerate these projects and put private capital to work more rapidly. It can also create millions of jobs. This would not only reduce greenhouse gas emissions but would also reduce sulfur dioxide, nitrogen oxide and mercury emissions. That would improve air quality across the board."

Utilities, PSC failing on public reports

From an editorial in the Appleton Post-Crescent:

Utilities in Wisconsin are supposed to file a report with the Public Service Commission that lists problems with their meters and their billings. If they overcharge or backcharge someone, it's supposed to be in the report.

But the vast majority of the utilities don't file the report — and the PSC doesn't seem to care that much about it. Both are a problem for the public.

A Post-Crescent analysis found that 68 of the 94 utilities didn't file a report, as required by state regulations, by the April 1 deadline.

As Charlie Higley of the Citizens Utility Board, a consumer advocacy group, said, the public is supposed to have access to that information.

"Regulated companies don't face competition," he said. "And so, in order to make up for that, they are imposed on to prepare reports providing some indication of the level of service they are providing. These reports could indicate whether they are providing good service or not."

So it's wrong that most utilities aren't doing what they're supposed to do. But the PSC, which is supposed to be looking out for the public, isn't helping with its apathy.

Required utility reports sparse on state website

From an article by Ben Jones in the Appleton Post-Crescent:

MADISON — State rules require Wisconsin utilities to disclose meter and billing problems in a yearly report to regulators and the public.

The information, typically on a single page, includes things like the number and dollar amounts of back charges and refunds issued to customers. The reports are to go to the Public Service Commission.

But most utilities don't file the report, The Post-Crescent discovered.

While the state's largest utilities filed the report as required by the April 1 deadline, just 26 of 94 public and investor-owned utilities followed the requirement this year, The P-C found while searching out the information for analysis.

Charlie Higley, executive director of the Citizens Utility Board, a ratepayers advocacy group, called The P-C's findings "troubling."

"That's the type of thing that seems to be falling through the cracks," Higley said. "Regulated companies don't face competition. And so in order to make up for that they are imposed on to prepare reports providing some indication of the level of service they are providing.

"These reports could indicate whether they are providing good service or not. And that's an important function."

The P-C first contacted the PSC in May when the newspaper could not find the forms online, more than six weeks after the reports were due. In response, the agency sent a letter to utilities reminding them of the filing requirement. Only one utility, the village of Pardeeville, filed a report afterward.

The missing reports are "one minor, tiny little issue," said Teresa Weidemann-Smith, a spokeswoman for the PSC. She said the agency would contact utilities individually to make sure they file.

"Is this something that is at the forefront of our list of priorities? I would have to admit no, it is not," Weidemann-Smith said.

Higley said it is important for utilities to file the information and it is also important that the commission is not lax in reviewing the filings and using the information to ensure good service.

"That's the concern that we would have," he said.

Wisconsin Energy sees rise in electricity demand

An article from BizTimes Daily:

Wisconsin Energy Corp. today reported second quarter net income of $88.7 million, or 75 cents per share, up from $63.7 million, or 54 cents per share, in the same period a year ago.

The Milwaukee-based parent company of We Energies reported quarterly operating revenues of $890 million, up from $835.7 million a year earlier.
Wisconsin Energy's second quarter performance was helped by a return to more normal weather and additional income from the company's Power the Future plan. Reported income from the Power the Future assets increased by 11 cents a share, driven by a $1.2 billion investment in the new Oak Creek generating unit. The unit began commercial service in February 2010.

Residential electricity use rose by 1.7 percent from the second quarter a year ago. Consumption of electricity by large commercial and industrial customers grew by 14.3 percent, while use of electricity by small commercial and industrial customers increased by 4.7 percent.

"We're clearly seeing growth in the region, and over the past three months, stronger economic activity has been evident across virtually every sector of our customer base," said Gale Klappa, Wisconsin Energy's chairman, president and chief executive officer. "Our Power the Future investments - adding modern, efficient capacity to our generating fleet - are providing real benefits to our customers and our stockholders. Our revised earnings guidance for 2010 is in the range of $3.70 to $3.75 a share from continuing operations.”

CUB sues PSC regarding subsidies for industrial customers

From a news release issued by the Citizens Utility Board (CUB):

MADISON – The Citizens Utility Board filed a lawsuit on Friday, July 2 against the Public Service Commission for its decision to allow Wisconsin Power & Light to give discounts to industrial customers that will likely be subsidized by residential customers and others.

Wisconsin Power and Light, a utility subsidiary of Alliant Energy, applied with the PSC on November 13, 2009 for permission to offer an “economic development rate” that would provide certain large industrial customers with discounts on electricity service. The PSC issued an order approving this rate on June 4, 2010.

CUB has long been opposed to rates with discounts, because they usually force other customers to pay for the discount. The laws that regulate utility service in Wisconsin prohibit utilities from charging rates that provide discounts to one customer that are subsidized by other customers. CUB noted many of these concerns in correspondence to the PSC dated February 17 and March 16, 2010, and in its lawsuit filed last Friday.

Although PSC Chairperson Eric Callisto and Commissioner Mark Meyer approved the discounted rates, Commissioner Lauren Azar voted against them, noting that subsidies for certain industrial customers may cause higher rates for residential and commercial customers. Ms. Azar also issued a dissenting opinion on June 25, 2010, in which she called the rate “essentially a giveaway to businesses.”

“CUB filed this lawsuit to protect residential customers from subsidizing large, politically powerful companies,” said CUB executive director Charlie Higley. “The job of the PSC is to set electric rates that are fair, just, and reasonable, and the economic development rate approved by the PSC violates these legal principles.”