Study projects minimal impact from renewable buyback rates

From a letter to State Rep. Spencer Black and State Sen. Mark Miller from RENEW Wisconsin:

RENEW is pleased to provide the enclosed copy of the narrative and appendix of tables from an economic analysis that we commissioned.

The analysis concludes that special buyback rates (sometimes called Advanced Renewable Tariffs) designed to stimulate small-scale renewable energy installations would have negligible impact on residential utility bills, averaging about $10 a year. That’s less a dollar a month for the typical customer. And it’s less than a household’s cost of purchasing the smallest block of green power from Madison Gas and Electric, for instance.

Compared with other forms of economic stimulus, promoting small-scale renewables through utility buyback rates would deliver a substantial and long-lasting economic punch with minimal impact on the Wisconsin citizen’s pocketbook.

Prepared by Spring Green-based L&S Technical Associates, the study modeled rate impacts from the legislation’s provisions for ARTs on the state’s five largest utilities. The modeling predicts cost impacts ranging from a low of $8.12 a year for a residential customer of Wisconsin Public Service to as high as $11.07 for a Wisconsin Power and Light (Alliant) customer. The projected impact would amount to $8.81 a year for a We Energies customer, $9.71 for a Madison Gas and Electric customer, and $10.11 for an Xcel Energy customer.

The projections assume that when each utility reaches its maximum threshold of 1.5 percent of total retail sales. In the aggregate, this percentage equates to 1/70th of total annual sales. That’s one billion kilowatt-hours a year, out of total annual sales of 70 billion kilowatt-hour.

Though the principals of L&S Technical Associates serve on RENEW’s board of directors, they have prepared numerous renewable energy studies for other clients, including the U.S. Department of Energy, Energy Center of Wisconsin, and the Wisconsin Department of Natural Resources. L&S has also co-authored renewable energy potential studies in response to requests from the Wisconsin Public Service Commission.

The bill’s renewable energy buyback provisions would unleash a steady flow of investment that would lead to new economic activity and jobs while moving us toward energy independence – exactly what we all hope to accomplish by passage of the Clean Energy Jobs Act legislation.

Study projects minimal impact from renewable buyback rates

From a letter to State Rep. Spencer Black and State Sen. Mark Miller:

RENEW is pleased to provide the enclosed copy of the narrative and appendix of tables from an economic analysis that we commissioned.

The analysis concludes that special buyback rates (sometimes called Advanced Renewable Tariffs) designed to stimulate small-scale renewable energy installations would have negligible impact on residential utility bills, averaging about $10 a year. That’s less a dollar a month for the typical customer. And it’s less than a household’s cost of purchasing the smallest block of green power from Madison Gas and Electric, for instance.

Compared with other forms of economic stimulus, promoting small-scale renewables through utility buyback rates would deliver a substantial and long-lasting economic punch with minimal impact on the Wisconsin citizen’s pocketbook.

Prepared by Spring Green-based L&S Technical Associates, the study modeled rate impacts from the legislation’s provisions for ARTs on the state’s five largest utilities. The modeling predicts cost impacts ranging from a low of $8.12 a year for a residential customer of Wisconsin Public Service to as high as $11.07 for a Wisconsin Power and Light (Alliant) customer. The projected impact would amount to $8.81 a year for a We Energies customer, $9.71 for a Madison Gas and Electric customer, and $10.11 for an Xcel Energy customer.

The projections assume that when each utility reaches its maximum threshold of 1.5 percent of total retail sales. In the aggregate, this percentage equates to 1/70th of total annual sales. That’s one billion kilowatt-hours a year, out of total annual sales of 70 billion kilowatt-hour.

Though the principals of L&S Technical Associates serve on RENEW’s board of directors, they have prepared numerous renewable energy studies for other clients, including the U.S. Department of Energy, Energy Center of Wisconsin, and the Wisconsin Department of Natural Resources. L&S has also co-authored renewable energy potential studies in response to requests from the Wisconsin Public Service Commission.

The bill’s renewable energy buyback provisions would unleash a steady flow of investment that would lead to new economic activity and jobs while moving us toward energy independence – exactly what we all hope to accomplish by passage of the Clean Energy Jobs Act legislation.

Letter to Sen. Miller & Rep. Black on rate impacts of ARTs

February 12, 2010

Senator Mark Miller
State Capitol, Room 317 East
Madison, WI 53707

Representative Spencer Black
State Capitol, Room 210 North
Madison, WI 53708

Dear Senator Miller and Representative Black:

RENEW Wisconsin and our members appreciate the opportunities you created for public input into the Legislature’s deliberations on the Clean Energy Jobs Act legislation. Certainly, the more we can ground public discussion in fact, the better the final outcome.

To that end, RENEW is pleased to provide the enclosed copy of the narrative and appendix of tables from an economic analysis that we commissioned.

The analysis concludes that special buyback rates (sometimes called Advanced Renewable Tariffs) designed to stimulate small-scale renewable energy installations would have negligible impact on residential utility bills, averaging about $10 a year. That’s less a dollar a month for the typical customer. And it’s less than a household’s cost of purchasing the smallest block of green power from Madison Gas and Electric, for instance.

Compared with other forms of economic stimulus, promoting small-scale renewables through utility buyback rates would deliver a substantial and long-lasting economic punch with minimal impact on the Wisconsin citizen’s pocketbook.

Prepared by Spring Green-based L&S Technical Associates, the study modeled rate impacts from the legislation’s provisions for ARTs on the state’s five largest utilities. The modeling predicts cost impacts ranging from a low of $8.12 a year for a residential customer of Wisconsin Public Service to as high as $11.07 for a Wisconsin Power and Light (Alliant) customer. The projected impact would amount to $8.81 a year for a We Energies customer, $9.71 for a Madison Gas and Electric customer, and $10.11 for an Xcel Energy customer.

The projections assume that when each utility reaches its maximum threshold of 1.5 percent of total retail sales. In the aggregate, this percentage equates to 1/70th of total annual sales. That’s one billion kilowatt-hours a year, out of total annual sales of 70 billion kilowatt-hour.

Though the principals of L&S Technical Associates serve on RENEW’s board of directors, they have prepared numerous renewable energy studies for other clients, including the U.S. Department of Energy, Energy Center of Wisconsin, and the Wisconsin Department of Natural Resources. L&S has also co-authored renewable energy potential studies in response to requests from the Wisconsin Public Service Commission.

The bill’s renewable energy buyback provisions would unleash a steady flow of investment that would lead to new economic activity and jobs while moving us toward energy independence – exactly what we all hope to accomplish by passage of the Clean Energy Jobs Act legislation.

Sincerely,

Michael Vickerman
Executive Director

Clearing up Wisconsin’s lakes with clean energy

A Commentary
by Michael Vickerman, RENEW Wisconsin
February 15, 2010

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.

From what we’ve observed, Focus on Energy and federal incentives (the current mix of financial support) are not sufficient to drive significant installation activity when utility buyback rates are pegged to the cost of operating 40-year-old coal plants. It’s unrealistic to assume that a brand-new farm-sized renewable energy system, regardless of the resource used, can compete head-to-head with central station power plants that have been fully amortized.

However, when existing incentives and tax credits are supplemented with an additional source of financial support, such as higher buyback rates, installation activity picks up noticeably.

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.
Unfortunately, once this initiative reached its predetermined capacity limit, Alliant discontinued the special biogas rate. This complicates matters for future digester installations, in that the other utilities that serve Dane County, including Madison Gas & Electric, do not offer special buyback rates to customers who generate electricity from biogas.

While voluntary initiatives are laudable, they are too small and sporadic in nature to make much of a dent in converting Wisconsin’s organic wastes into energy. Indeed, unless a policy is adopted statewide that requires utilities to increase their purchases of locally generated renewable electricity, there is no guarantee that Dane County will see a second digester project built.

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.

Please communicate your support for this bill by writing letters to your state legislators and to your local newspaper. But time is of the essence — we have only a few more weeks left in this legislative session.

Michael Vickerman is the executive director of RENEW Wisconsin, a sustainable energy advocacy organization headquartered in Madison.

Clean Energy Jobs bill would lower property taxes

From a news release issued by 1000 Friends
of Wisconsin:

Local property taxes would go down according to testimony given on Wednesday [February 10] by 100 Friends of Wisconsin.

“The demand-side provisions of the the transporation policies included in the Clean Energy Jobs legislation would drive down the costs of building and maintaining the transportation infrastructure,” according to
Steve Hiniker, Executive Director of 100 Friends of Wisconsin.

Hiniker provided testimony at Wedneday’s Senate Select Committee on Clean Energy hearing on the Clean Energy Jobs Act. The hearing focused on transportation and agricultural policies contained in the bill. 1000 Friends testimony focused on demand-side transportation policies that reduce the demand for driving a single occupant vehicle.

“The bill calls for simple strategies to significantly reduce teh costs of transportation facilities as well as reduce greenhouse gas emissions from automobiles. By focusing on infill development, enhancing transit options and eliminating subsidies for parking, communities canc tgive a hboost to the environment, make their communities better places to live and reduce taxes,” Hiniker noted.

The following strategies were highlighted at the hearing:
• Development of a market-based pricing model for parking . . .
• Planning grants for compact development . . .
• Metropolitan Planning Organization reform . . .