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.”

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.”

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.”

Report: We Energies landfills likely source of groundwater contamination

From an article by Christine Won in the Racine Journal Times:

CALEDONIA – A report released Thursday by environmental groups points to We Energies coal ash landfills as the likely source of the groundwater contamination that has left several residents without drinking water for the past year.

Almost 40 coal ash dump sites in 21 states, including Wisconsin, are contaminating groundwater or surface water with toxic metals like arsenic, mercury or lead, according to a report by the Enviromental Integrity Project, Earthjustice and the Sierra Club.

The Oak Creek power plant, which has one active and two closed coal ash landfills, was named as having private wells in the area contaminated by molybdenum and boron.

We Energies spokesman Barry McNulty called the report “incomplete” and “flawed,” drawn up in a time crunch to meet an agenda of getting it out before the U.S. Environmental Public Agency hearings on the coal ash rule begin nationwide Monday.

For the first time the EPA is proposing a coal ash regulation and considering two possible options at its hearings. One is to regulate as special wastes for disposal in landfills or surface impoundments and another to regulate as non-hazardous wastes.

We Energies has maintained that its coal ash sites cannot be the contaminant source because the natural groundwater in the bedrock aquifer, where most of the contaminated well water comes from, flows toward the northeast, toward the power plant.

Russell Boulding, a freelance environmental consultant who owns Boulding Soil-Water Consultant out of Bloomington, Ind., said he drew his conclusion in the report that the coal ash landfills are the most likely source for the groundwater contamination in the plant vicinity based on collected data patterns and high levels of molybdenum found within a concentrated area of the landfills. Boulding added the bedrock aquifer is a fractured system, where groundwater flow doesn’t always follow the general trend, especially if water is pumped.

A dozen private drinking water wells within 1,500 feet of the coal ash landfills were found to exceed the state groundwater standards for molybdenum and boron, 40 and 960 micrograms per liter, respectively, according to the report.

Clearing up Wisconsin’s lakes with clean digester energy

From a commentary by Michael Vickerman, RENEW’s executive director:

In the next six weeks the Legislature will make a truly momentous decision on the state’s energy future. Either it can embrace an ambitious 15-year commitment to invigorate the state’s economy through sustained investments in clean energy or decide to coast along on current energy policies until they lapse and lose their force and effect.

Arguably the most innovative feature in the Clean Energy Jobs Act, as it’s now called, is a proposed requirement on larger electric providers to acquire locally produced renewable electricity with Advanced Renewable Tariffs (ARTs). These are technology-specific buyback rates that provide a fixed purchase price for the electricity produced over a period of 10 to 20 years, set at levels sufficient to recover installation costs along with a modest profit. Now available in more than a dozen nations in Europe as well as the Province of Ontario, ARTs have proven to be singularly effective in stimulating considerable growth in small-scale production of distributed renewable electricity. . . .

Consider the much-vaunted Dane County Cow Power Project, which should be operational before the end of the year. Using anaerobic digestion technology, this Waunakee-area installation will treat manure from three nearby dairy farms and produce biogas that will fuel a two-megawatt generator. This community digester project, the first of its kind in Wisconsin, will be built with private capital and a State of Wisconsin award to support a technology that reduces the flow of phosphorus into the Yahara Lakes. A second digester project is also planned for Dane County.

The key element that makes the financing of this project work is the special biogas buyback rate that Alliant Energy, the local utility, voluntarily put in place a year ago. With the higher rate, the project’s return on investment was sufficient to interest outside investors. . . .

If we are serious about neutralizing the algae blooms that turn the Yahara lakes green each year, we’ll need to adopt a clean energy policy, including ARTs, that facilitates the development of biodigesters in farm country.