Wind farm rate dispute shows need for Clean Energy Jobs Act

A news release issued by Advocates for Renewable Energy, a coalition which includes RENEW Wisconsin:

For Immediate Release
April 6, 2010

For More Information Contact:
Shaina Kilcoyne: (608) 310-3338

As the article below chronicles, Wave Wind LLC, a Dane County-based wind services company, is ready to build a six-turbine, 10-megawatt project in western Dane County and sell the electricity to the local utility, Madison Gas & Electric (MGE). All the necessary permits have been issued and the turbines are set to be delivered in June.

Unfortunately, Wave Wind cannot find a buyer for the project’s output. MGE contends that it does not need new supplies of renewable electricity until after 2020. Moreover, wholesale power prices are at historic lows, and the standard buyback rate available to third-party power producers like Wave Wind is not sufficient to make the project economically viable. As Wave Wind president Tim Laughlin put it, the standard rate “won’t even allow us to put a shovel in the ground.”

The upshot? Wave Wind will likely install those turbines in another state. Should that happen, most, if not all, of the jobs and business opportunities created by the construction and operation of this facility will follow the turbines to the state in which they are installed. Wisconsin’s loss will be a gain for Iowa or New Mexico.

This is not an isolated phenomenon, nor is it limited to wind energy. Dairy operations and food processors looking to recover energy from their organic wastes also find it difficult to justify investments in biodigesters, even with Focus on Energy incentives. A policy solution is clearly needed to bridge the difference between the production costs of small-scale renewable energy systems and the cost of operating 40-year-old coal plants that have been fully amortized. Neighboring Minnesota now has nearly 500 megawatts of community wind due to a statute that encourages it. Such projects have a very minor impact on overall electric rates. Within the Clean Energy Jobs Act, Wisconsin has the opportunity to promote small-scale renewable energy projects as well.

Two provisions in the Clean Energy Jobs Act are tailored to help producers of locally available renewable energy overcome the economic barriers cited above:

+ A 10% in-state renewable energy set-aside by 2025. This provision would more than double the output from existing renewable generating units in Wisconsin.
+ Incentives and other provisions targeted for smaller renewable generating facilities. These provisions would encourage small-scale, community-based renewable projects throughout the state.

Developing a truly sustainable platform to support Wisconsin’s economic future requires a commitment to local energy sources like wind, organic wastes, wood, solar, and small-scale hydro. Passing the Clean Energy Jobs Act will make it easier to attract and retain the private sector enterprises that drive job growth as well as strengthen rural economies.

Some compromise reached in Clean Energy Jobs Act

From a report by Chuck Quirmbach on Wisconsin Public Radio:

(STATE CAPITOL) A key lawmaker says some compromises have been reached in the global warming bill now in the State Legislature. But he says more deal-making is ahead.

During the last couple of weeks, legislators have been working behind closed doors trying to agree on changes to the Clean Energy Jobs Act. At an energy forum in Milwaukee, Senate author Mark Miller said some agreements have been reached. The Madison-area Democrat says there are deals on idling of trucks, reducing carbon in transportation fuels, tariffs for utilities purchasing power from renewable sources, and whether to link Wisconsin car fuel efficiency standards to California’s. He says the golden state plan is gone.

Miller says the plan to reduce carbon in fuels ran into a lot of opposition, and wasn’t a major part of the bill. The changes are good news to the Democrats leading candidate for governor, Milwaukee Mayor Tom Barrett. Barrett says any new carbon in fuels standard would also have hurt the state.

Sen. Miller says lawmakers are also trying to accelerate job creation goals in the Clean Energy Jobs Act. He says he’s hoping to announce final compromises next week.

Independent study confirms PSC cost analysis of Clean Energy Jobs Act

Independent study confirms PSC cost analysis of Clean Energy Jobs Act


A news release issued by Advocates for Renewable Energy:

The Union of Concerned Scientists has released a study on the 25% Renewable Portfolio Standard and Energy Efficiency provisions within the Clean Energy Jobs Act (CEJA), confirming the findings of the Public Service Commission that CEJA will result in lower electricity bills than under a business as usual approach.

With a 25% Renewable Portfolio Standard, consumer electricity bills will be $34 million lower in 2015 and $59 million lower in 2025, compared with a business as usual approach. CEJA will result in cumulative cost savings to electricity ratepayers of $140 million by 2025. The report concludes that the Clean Energy Jobs Act will protect consumers from rising energy prices by investing in local sources of energy with stable and predictable long-term costs.

Some compromise reached in Clean Energy Jobs Act

From a report by Chuck Quirmbach on Wisconsin Public Radio:

(STATE CAPITOL) A key lawmaker says some compromises have been reached in the global warming bill now in the State Legislature. But he says more deal-making is ahead.

During the last couple of weeks, legislators have been working behind closed doors trying to agree on changes to the Clean Energy Jobs Act. At an energy forum in Milwaukee, Senate author Mark Miller said some agreements have been reached. The Madison-area Democrat says there are deals on idling of trucks, reducing carbon in transportation fuels, tariffs for utilities purchasing power from renewable sources, and whether to link Wisconsin car fuel efficiency standards to California’s. He says the golden state plan is gone.

Miller says the plan to reduce carbon in fuels ran into a lot of opposition, and wasn’t a major part of the bill. The changes are good news to the Democrats leading candidate for governor, Milwaukee Mayor Tom Barrett. Barrett says any new carbon in fuels standard would also have hurt the state.

Sen. Miller says lawmakers are also trying to accelerate job creation goals in the Clean Energy Jobs Act. He says he’s hoping to announce final compromises next week.

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.