Costs of coal plants keep going up

Costs of coal plants keep going up

A commentary by Michael Vickerman, executive director of RENEW Wisconsin:

For Immediate Release
April 7, 2010

For More Information Contact
Michael Vickerman
608.255.4044
mvickerman@renewwisconsin.org

Costs of coal plants keep going up
In recent weeks, some groups have suggested that we maintain our current energy portfolio, continuing to rely heavily on coal-fired generation for a substantial amount of our electricity. These groups claim that gradually moving toward more reliance on local, in-state sources of energy will increase electricity costs. These claims have been thoroughly discredited by two economic studies concluding that electricity bills will decrease with the Clean Energy Jobs Act.

Further, these groups refuse to acknowledge the substantial, ongoing costs associated with coal plants. Since 1999, Wisconsin utilities have spent over $2 billion of customer money keeping old, inefficient coal plants running. For comparison purposes, this sum is nearly triple the utilities’ investment in windpower facilities during the same period. Customers have seen the real and substantial impact of these coal plant costs through rising electricity rates over the past several years. These costs are in addition to the more than $700 million (exclusive of transportation costs) we send out of state each year to pay for the coal to fuel these aging plants. Reliance on dirty, antiquated coal plants leaves Wisconsin in a vulnerable position, unable to predict or control energy costs.

Unlike coal, clean resources like biogas, wind and solar will produce energy throughout their productive lives without requiring costly pollution abatement measures. Going forward, the more renewable energy we add to Wisconsin’s energy resource mix, the less exposed we will be to these downstream liabilities. The avoidance of these regulatory risks is another compelling reason for passing the Clean Energy Jobs Act legislation in this session.

Coal Plant Retrofit Costs (1999-2009)
(in Millions of Dollars)

Residents find value in collecting wind, solar power

From an article by Keith Uhlig in the Marshfield News-Herald:

Greg Stark gets a charge out of sunny days with a brisk wind. Literally.

When conditions are perfect, the sun soaks into the solar panels he has installed on his house and in his yard, and the wind spins the prop of a wind turbine located on a tower about 140 feet in the air. If all components are running at maximum, they can generate about 25,000 watts of power per hour.
Stark is the first to admit that it’s a rare day that the systems churn at full capacity. But it’s also a rare day that he needs to use power produced by Wisconsin Public Service.

Since he had the wind turbine installed in December 2002 at his home southwest of Edgar on Highway M, he has never written a check to Wisconsin Public Service. Instead, he sells the surplus power he produces back to the power company, and he receives checks that range from $25 to $250 per month.

Stark has invested more than $100,000 in the power systems, so it’ll take years for them to turn a profit for him. When he installed the wind turbine, he thought it would pay for itself in about 20 years, he said. But with the rising cost of electricity, he expects that to be cut in half.

He’s happy to share the costs and benefits and estimated payback time with anyone who asks. But for him, installing the green power systems is more about self-reliance, efficiency and for “the next generation,” Stark said. “It maybe sounds funny, but people need to look at the future. … Earth is a small planet.”

Rothschild biomass plant won't be 'monster' pollution source

From an article by Robert Imrie in the Wausau Daily Herald:

ROTHSCHILD — A proposed power plant that would burn wood to generate electricity and steam would be a “monster” source of pollution, causing neighbors to suffer from asthma and lung cancers, organizers of an effort to kill the project said Thursday.

The planned $255 million We Energies plant on the grounds of the Domtar paper mill along Business Highway 51 would burn waste wood to power the mill and generate electricity for consumers. View gallery

“We don’t want to be their guinea pigs,” Paul Schwantes told about 150 people packed into a room at the Village Hall, urging them to contact local political leaders. “This is a call to action. Tell them you do not want this project in our backyard.”

Schwantes said he was disappointed that only about 150 people in a village of 5,000 turned out to get more information about a “huge issue” in town. . . .

We Energies has applied to the state Public Service Commission to build Wisconsin’s first biomass plant in Rothschild. A decision is expected by the end of the year, said Brian Manthey, a spokesman for the Milwaukee-based utility.

The project would allow We Energies, a subsidiary of Wisconsin Energy Corp., to comply with a state mandate that 10 percent of Wisconsin’s electricity come from renewable sources by 2015.

In a telephone interview after the meeting Thursday, Manthey said the plant should not produce any more risk of asthma or lung cancers in the village, because the emissions will fall “well under” the state Department of Natural Resources standards for clean air.

Over 200 businesses pledge support for Clean Energy Jobs Act

From a news release issued by Clean Wisconsin:

Regionally Diverse Large and Small Businesses Among Supporters

MADISON — In a show of support for the Clean Energy Jobs Act, the Wisconsin business community delivered a letter signed by over 200 Wisconsin businesses to state legislators today highlighting the economic and job-creation benefits of strong energy efficiency and renewable energy policies.

“As businesses currently working in the production, installation and maintenance of energy efficiency and renewable energy systems we understand better than anyone that clean energy policies create jobs and stimulate local economies,” read the letter. “By enacting statewide policies that will help Wisconsinites make their homes and businesses more energy efficient or invest in renewable energy, the state Legislature will create thousands of jobs and help support local businesses like ours…”

Studies have repeatedly demonstrated the job-creation potential of the Clean Energy Jobs Act. A recent study from the Office of Energy Independence estimates that the bill would create over 15,000 jobs in the state.

“Wisconsin’s businesses support the Clean Energy Jobs Act because they recognize its enormous potential to create jobs and aid economic recovery,” said Keith Reopelle, senior policy director at Clean Wisconsin. “With strong renewable energy and energy efficiency policies, Wisconsin can become a leader in the production of clean energy technologies.”

“Clean energy policies like those in the Clean Energy Jobs Act help businesses like Wave Wind grow,” said Dionne Lummus at Wave Wind Energy located in Sun Prairie. “Increased demand for renewable energy means an increased demand for our services, which translates to more jobs and economic growth in Wisconsin.”

A report released this morning by the Union of Concerned Scientists shows that securing 25 percent of the state’s renewable electricity by 2025, a main provision of the bill, is affordable and easily achievable. In fact, the report illustrates that generating 25 percent of Wisconsin’s current electricity load would require only 5 percent of the state’s renewable energy potential.

We Energies selects builder for Rothchild project

From an article by Pete Bach in the Green Bay Press Gazette:

APPLETON — The Boldt Company announced Tuesday it will provide all construction services for We Energies’ new 50 megawatt biomass cogeneration plant at the Domtar Corp. paper mill in Rothschild near Wausau.

The total project cost was pegged at $255 million.

“We’re excited about that,” said Bob DeKoch, Boldt president and chief operating officer. “We Energies is a great customer of ours and has been for a long time.”
We Energies, the Milwaukee-based provider of electricity and natural gas to more than 1 million customers, said the project will create about 400 construction jobs and 150 permanent jobs.

DeKoch said the company will hire some new field craftsmen. The company believes the project management staff and engineering staff are sufficient to handle the job.
“We plan the work with all our customers and particularly our repeat customers so we make sure we have capacity available for them,” DeKoch said.

Boldt’s most recent work with We Energies was the 145 megawatt Blue Sky Green Field Wind Energy Center in Fond du Lac County.

We Energies filed a petition March 15 to seek approval from the Wisconsin Public Service Commission for the Domtar plant, said WE spokeswoman Irissol Arce.
Construction will begin next spring if the PSC gives the green light by the end of the year, she said. On that timetable, the plant would be complete in the first half of 2013, We Energies said.

The facility is designed to use forest residue, clean wood waste and wood shavings to generate electricity and steam in sufficient amounts to assist Domtar’s paper making operations and wean the Montreal-based firm off fossil fuels.