We Energies helps fund nonprofit organization to promote greenhouse gas reduction efforts

From a news release issued by Governor Doyle:

MADISON – Governor Jim Doyle today announced the creation of a new nonprofit organization, the Wisconsin Climate Change Action Initiative, Inc. (WCCAI), to build on Wisconsin’s strong efforts to reduce greenhouse gas emissions. Formation of the nonprofit organization was recommended in the report from Governor Doyle’s Task Force on Global Warming as a way to build upon Wisconsin’s national leadership on climate change.

“The Wisconsin Climate Change Action Initiative brings together leaders of business, government, non-governmental advocacy organizations and the research community to increase voluntary conservation practices that will save money and have positive environmental impacts,” Governor Doyle said. “As we continue to move forward on the recommendations of my Global Warming Task Force will we be building our economy with clean and renewable energy, growing green jobs, and finding savings through energy conservation.”

WCCAI will focus on providing education, practical advice and expertise to residents, communities and businesses on simple, effective steps to reduce our carbon footprint, without affecting comfort or productivity. This effort will complement existing programs like the Focus on Energy Schools and Government Program and the Wisconsin Energy Independent Community Partnership which are designed to achieve Governor Doyle’s goal of getting 25 percent of our electricity and 25 percent of our transportation fuels from renewable sources by 2025.

“This is an exciting endeavor that will provide long term benefits to Wisconsin,” said Roy Thilly, WPPI Energy CEO. “As a co-chair of the Governor’s Task Force on Global Warming, I appreciate very much Governor Doyle’s leadership on the issue of climate change and his commitment to this important initiative.”

“Providing opportunities for environmental education informed citizens empowered with the info they need to make informed decisions about their future,” said Tia Nelson, co-chair of the Governor’s Task Force on Global Warming.

Initial funding will be provided through a $5 million contribution from We Energies, Madison Gas & Electric and WPPI Energy under an agreement with Clean Wisconsin and Sierra Club to resolve outstanding permit issues related to the Elm Road power plants under construction in Oak Creek.

Windpower: A Stabilizing Force in an Economic Downturn

Commentary by
Michael Vickerman
Executive Director, RENEW Wisconsin
June 2, 2009

Much to no one’s surprise, energy-related carbon dioxide emissions fell sharply in 2008 from previous year levels. The U.S. Energy Information Agency (EIA), which has been tracking greenhouse gas emissions since 1990, attributes the 2.8% decline to a combination of high energy prices in spring 2008 and the global economic contraction that picked up strength during the second half of the year.

This was certainly the largest year-over-year decline ever reported by the agency. However, even with 2008’s substantial decline, greenhouse gas emissions from U.S. sources have risen 16.9% since 2000. The results, which are preliminary and are likely to be adjusted this fall, can be viewed at http://www.eia.doe.gov/oiaf/1605/flash/flash.html.

The most dramatic reductions occurred in the transportation sector, which fell by more than 5%. Jet fuel consumption is down 9.1%, from this time last year, while demand for diesel fuel consumption is off by 9.9%, reflecting a substantial reduction in truck traffic and rail tonnage. Though it seems like ancient history, the price of diesel fuel on Memorial Day 2008 was $4.72 per gallon, $2.45 higher than current prices.

Even the electric power sector, one of the faster-growing sources of emissions in recent years, was not spared from this trend. According to EIA, about half of the 2.1% reduction in CO2 emissions in the electric power sector can be attributed to declining electricity output. But another contributing factor was the extraordinary growth in installed wind generation capacity last year. A record-shattering 8,500 MW of new wind projects was placed in service in 2008, capping a four-year boom that has nearly quadrupled total installed capacity in the United States.

Bucking the downturn, wind project construction has been one of the very few bright spots in the domestic economy. Nowhere was the pace of activity more feverish than in Iowa, now the No. 2 state in installed wind capacity, trailing only Texas. More than 900 utility-scale turbines started operation in 2008, doubling the state’s wind generating capacity. This year, the Iowa Policy Project expects wind energy to account for 15% of the state’s total generation. In no other state has wind energy penetration even reached double-digit figures.

Last year’s frenetic construction pace is starting to ebb, however, as wholesale electric prices sink to historic lows. As declining demand for electricity exerts downward pressure on coal and natural gas prices, wind energy developers will struggle to attract financing for their projects. Right now, the signals from the power markets strongly discourage new plant construction of any type, be it wind, coal or natural gas.

The pain administered by the economic downdraft has been especially acute at Alliant Energy, whose Wisconsin subsidiary is located in Madison. Having lost two very large customers due to plant closures, including the mammoth General Motors plant in Janesville, Alliant is aggressively cutting costs to prepare for a forecasted 10% decline in sales to industrial customers. These measures include a suspension of contributions to employee 401(k) plans, layoffs affecting all management levels, the closure of redundant power stations and the postponement of planned power plant upgrades.

Ironically, even though it is scaling back operations elsewhere, Alliant’s Wisconsin subsidiary is moving forward with a 200 MW (133 turbine) wind project in southern Minnesota called Bent Tree. If approved, Bent Tree would be the largest wind project owned by a Wisconsin utility.

Alliant’s desire to build Bent Tree is a direct consequence of Wisconsin’s energy policy, the centerpiece of which is a requirement on utilities to increase the renewable energy content of electricity sold to their customers. Between now and 2015, Alliant must acquire additional sources of renewable energy to satisfy that mandate. Given where the economy is headed, Wisconsin’s renewable electricity standard may be the only thing that’s keeping Alliant in the power plant building business.

If Alliant’s windpower plans stay on track, the utility will meet its 2015 target several years in advance. Last December, Alliant commenced operations at its 68 MW (41 turbine) Cedar Ridge plant southeast of Fond du Lac, in the heart of Wisconsin’s wind belt.

Between the nasty economic weather out there and the state’s pro-renewable energy policy, I expect greenhouse gas emissions here to fall even more dramatically in 2009.

Sources:

“Alliant eliminates 60 jobs in state” (May 28, 2009)
“Beloit power plant to shut down by year-end” (May 26, 2009)
“Alliant decisions on plants on hold” (May 24, 2009)
“Like economy, greenhouse has emissions fell in ‘08” (May 22, 2009)
“Rate watch: CEO calls rate hikes ‘most unwelcome’ (May 14, 2009)
http://www.jsonline.com/blogs/business/pluggedin.html (Tom Content’s blog for the Milwaukee Journal Sentinel)

Michael Vickerman is the executive director of RENEW Wisconsin, a sustainable energy advocacy organization headquartered in Madison. For more information on what Wisconsin is doing to advance sustainable energy, visit RENEW’s web site at: www.renewwisconsin.org and RENEW’s blog at: http://renewwisconsinblog.org. RENEW also operates Madison Peak Oil Group’s blog: http://www.madisonpeakoil-blog.blogspot.com

Weston power plant cuts emissions

From an article by D.J. Slater in the Marshfield News Herald:

New emission control equipment at the Weston Power Plant has reduced the amount of nitrogen oxide produced at its two oldest generators by 53 percent.

The equipment improves the coal burning process at the plants, decreasing nitrogen emissions. The $7.5 million worth of equipment went on line in March.

“This is part of our company’s overall nitrogen oxide emission reduction control plan … for our older coal-fueled generating units,” said Bruce Bruzina, the assistant vice president of energy supply operations for the plant, in a news release.

Nitrogen oxide is a group of highly reactive gases that contain nitrogen and oxygen. It’s one of the primary ingredients in smog and acid rain, and contributes to global warming and causes respiratory problems, according to the U.S. Environmental Protection Agency.

The upgrades are part of Wisconsin Public Service Corp.’s effort to meet more stringent state and federal air quality requirements that the EPA established in 2005, said David Capozella, a WPSC representative. The Weston Power Plant had to meet those new standards by 2010, he said.

Wisconsin Public Service Corp., which owns the Weston Power Plant, plans to start installing nitrogen oxide reduction equipment on a third generator in September, with a completion date sometime in mid-2010, he said.

Report: Wis. must prep for greenhouse limits

From a story on WSAW-TV:

A new state report says Wisconsin utilities should meet the state’s basic energy needs over the next five years without building more new plants.

The Public Service Commission issued its latest biennial Strategic Energy Assessment Monday. The report found the state should not need any new baseload generation — energy needed for a reliable supply barring electricity-sapping events such as heat waves — through 2014 if all currently authorized projects are constructed.

The report directs PSC staff to evaluate how utilities can cheaply prepare for greenhouse gas limits, saying state, regional and federal constraints look inevitable.

From a news release issued by the Public Service Commission on the final Strategic Energy Assessment – Energy 2014:

Biennially the PSC prepares a strategic energy assessment to evaluate the state’s current and future energy demands. The final report, based on data and information collected in 2007 and 2008 from Wisconsin utilities and power cooperatives highlights several conclusions:

· Mandatory constraints on greenhouse gas emissions at the state, regional and federal level appear to be inevitable, and will carry significant implications for Wisconsin’s electric utilities, as electric power generation is responsible for more than 30 percent of Wisconsin’s greenhouse gas emissions;

· Significant approved new generation coming online is expected to keep planning reserve margins near or above 19 percent through 2012 and based on already approved construction, the planning reserve margin for 2014 is expected to be nearly 12 percent. This number is expected to increase as more energy efficiency is implemented and new generation is proposed;

· Generation planning shows no new baseload generation is needed during this SEA period on a statewide basis;

· It is expected that the current and ongoing transmission system expansion and improvements will greatly enhance the ability to move electricity into and within Wisconsin by 2010; and

· Energy efficiency, conservation, and load control will play an important role in reducing Wisconsin’s energy costs and environmental impacts.

Pleasant Prairie experiment: Subtracting carbon from coal

From a post by Tom Content on JS Online:

The carbon dioxide catch-and-release experiment in Pleasant Prairie, which started last year, is getting some more attention today.

The We Energies power plant is the site of a project funded in part by the Electric Power Research Institute and the French company Alstom. Alstom has built a system at the state’s largest coal-fired power plant that uses chilled ammonia to separate the carbon dioxide that’s heads out into the atmosphere.

If all goes well with this test, the utility industry is planning a bigger demonstration of this technology at a coal plant in West Virginia.

Whatever technological change is forced on utilities, it won’t come cheap, Wall Street Journal Environment Editor Jeffrey Ball writes in his column today.

“Whatever the truth about ‘clean coal,’ consumers will be paying for it one way or another,” Ball writes.

The test is one way that the utility sector is preparing for regulation of greenhouse gases at some point by Congress. That’s significant for Wisconsin given how much we rely on coal for power.