by jboullion | May 9, 2011 | Uncategorized
From an article in the Stevens Point Journal:
ROTHSCHILD — State regulators indicated support of construction plans for a biomass plant in Rothschild on Friday, a major step in a lengthy and often contentious debate over a $255 million project backed by Milwaukee utility We Energies and Domtar Paper.
Two members of the state’s Public Service Commission pushed for and received more concessions from the project’s sponsors, concerned that the utility’s ratepayers still are taking the biggest risk. We Energies and Domtar either can contribute $10 million more toward operating costs or increase the rate Domtar will pay for steam produced by the plant.
The PSC also will have the authority to review future changes to the rate Domtar pays We Energies for steam, which is used in its paper-making process.
The plant is part of We Energies’ effort to meet the state’s renewable energy requirements for utilities by 2015, buoyed by federal tax credits available to facilities that are operational by the end of 2013. We Energies has promised the project will create about 400 construction jobs and 150 jobs in Central Wisconsin for industries supporting the plant, and Domtar argues the change will allow them to compete in an increasingly testy paper industry.
by jboullion | May 6, 2011 | Uncategorized
From an article by Tom Content in the Milwaukee Journal Sentinel:
A proposed We Energies power plant at the Domtar Corp. paper mill in Rothschild is still too expensive for the utility’s customers and should be rejected, critics of the plant said Thursday.
Groups that have raised questions or opposed the plant made filings with the state Public Service Commission Thursday, a day before regulators are scheduled to discuss the power company’s bid to build a $255 million power plant that would burn wood.
The filings came two days after We Energies and Domtar revised the financial terms of the deal to raise Domtar Corp.’s financial stake in the project.
State regulators last week raised concerns about the project’s price tag, but gave the utility a chance to revise the financial terms of the deal this week.
The changes announced by Domtar and We Energies weren’t sufficient to address the concerns raised by the PSC, said the Citizens’ Utility Board, a consumer advocacy group.
“It is unacceptable for (We Energies) ratepayers to bear the brunt of the costs and all of the risks for an uneconomical and unnecessary project for which they receive little to no benefits,” wrote Kira Loehr, CUB’s lawyer, in the filing.
by jboullion | May 4, 2011 | Uncategorized
From an article by Tom Content in the Milwaukee Journal Sentinel:
Domtar Corp. agreed to boost its financial stake in a proposed biomass power plant, as We Energies and the paper company revised the terms of their deal Tuesday to satisfy regulators’ concerns.
The three-member state Public Service Commission last week raised objections about the cost of the $255 million biomass power plant that We Energies is seeking to build at the Domtar paper mill in Rothschild, just south of Wausau. The plant would burn wood chips and other forms of biomass to produce electricity for the energy grid and steam for the adjacent paper mill.
The PSC, however, said the plant’s price tag was too expensive and was structured in such a way that too much of the cost would be borne by customers of the Milwaukee-based utility. Commissioners directed Domtar and We Energies to revise their proposal.
The filing by the companies Tuesday will be reviewed by the plant’s critics, including the Wisconsin Citizens’ Utility Board. The groups raising concerns about the project have until Thursday to respond to the revised financing plan.
Domtar on Tuesday said it would boost its contribution by $22 million, to $47 million, a move that increases the price of the steam Domtar would buy for the paper mill and reduce the cost for We Energies customers.
Both companies stressed the economic development opportunity from the project, linked to construction and paper mill jobs.
by jboullion | Apr 29, 2011 | Uncategorized
From an article in the Chicago Tribune:
MADISON, Wis.— A poll of Wisconsin residents finds strong support for increasing the use of wind energy, even if doing so would raise electricity bills several dollars per month.
The Wisconsin Public Radio poll was released Friday. It shows that 77 percent of respondents want to see the state invest more in wind energy. Reasons included decreasing the nation’s reliance on foreign oil and helping the environment.
A majority, 69 percent, wouldn’t mind eight to 10 wind-energy machines being placed closed to where they live, and 79 percent favor placing the machines offshore in Lake Michigan.
Click here for poll results.
by jboullion | Apr 28, 2011 | Uncategorized
From an article by Brian E. Clark on WisBusiness.com:
Citing what they described as high costs, members of the three-person Public Service Commission said We Energies and the Domtar Corp. paper company will have to bear more costs for a proposed biomass plant in Rothschild that would produce both electricity and steam.
The $250 million plant will use waste wood and sawdust to produce 50 megawatts of electricity, as well as steam for Domtar’s papermaking operations.
Phil Montgomery, the new PSC chairman, said at Thursday’s PSC meeting that the state currently has adequate power supply reserves, but that We Energies needs to build the plant to meet state mandates that 10 percent of its power be produced from renewable resources by 2015.
Montgomery, a former legislator who chaired the Assembly Committee on Energy and Utilities, said he continues to support the renewable standard.
“But I don’t think anyone in the Legislature thought we would be experiencing this economic downturn we’re in now,” he added, noting that he hopes We Energies and Domtar can reduce costs to electricity ratepayers.
Commissioner Eric Callisto said he has trouble with the overall economics of the plan and how it has been structured between We Energies and Domtar.
Callisto said he is concerned with everything from the financing and operating costs to the rates that consumers will have to pay for the power generated by the plant. . . .
Commissioner Lauren Azar said she believes biomass may become Wisconsin’s best energy resource, but she said the Rothschild plant construction cost is approaching $5,800 per kilowatt hour, which she called “unacceptably high” and almost on par with the price tag for building a nuclear power facility.
Wind turbine construction costs are about half that figure, she said. But recent actions by the Legislature and governor over wind farm-siting rules have caused at least two companies to abandon projects because of regulatory uncertainty, she said.
