Costs of coal plants keep going up

Costs of coal plants keep going up

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)

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.

Case Build for the Clean Energy Jobs Act Bills

From Wisconsin Renewable Quarterly, Spring 2010, the newsletter of RENEW Wisconsin:

After holding five public hearings on the Clean Energy Jobs Act (CEJA) legislation, the committees’ co-chairs signaled their plan to hammer out a set of substitute proposals in meetings among themselves.

While waiting for the expected substitute amendment sometime in late March, proponents continue to build the public case for passage in this legislative session.

The refashioned bill will likely retain the core provisions in the original, specifically:
+ 25% renewable energy standard(RES) by 2025;
+ 10% in-state renewable energy set-aside, also by 2025; and
+ Energy efficiency goals to begin reduction of consumption in 2011.

The original legislation (AB 649/SB 450) also contained a requirement that the Public Service Commission (PSC) increase buyback rates for small renewable systems. This controversial section is likely to be reworked substantially in the substitute amendment.

Since the introduction of the bills in early January, many affected interests have bombarded the print and electronic media with news releases, advertisements, economic analyses, news conferences, commentaries, and photo opportunities in hopes of influencing the Legislature before the session ends.

Just to list a few examples from the proponents:
+ RENEW Wisconsin released a study in February showing that increased renewable energy buyback rates, by themselves, would have a minimal impact on base residential electricity rates;

Other newsletter articles:
Tour Spotlights Homegrown Renewables
Energizing Fort Atkinson Schools
Clearing Up Lakes with Clean Energy
Of Molehills and Renewable Energy
Calendar

Poll: Wisconsin voters overwhelmingly support clean energy policies

From a news release issued by Clean Wisconsin:

76% support policies stronger than those in the Clean Energy Jobs Act

MADISON — More than three-quarters of Wisconsin voters support renewable energy policies requiring 30 percent of our state’s power to come from renewable sources, according to polling data released today by a bipartisan research group.

“An overwhelming majority of Wisconsin’s voters recognize the need to replace our dependence on dirty, imported fossil fuels with new investments in clean, renewable energy,” said Keith Reopelle, senior policy director at Clean Wisconsin, an environmental advocacy organization celebrating 40 years of service. “With no fossil fuel reserves of our own, transitioning toward renewable energy sources such as wind, solar, crops, and agricultural waste will help Wisconsin become more energy independent and economically prosperous.”

According to the data released today, 76 percent of Wisconsin voters support passing policies “ensuring that 30 percent of the state’s electricity comes from renewable sources.” Known as a renewable electricity standard, current policy ensures that only 10 percent of Wisconsin’s electricity comes from renewable sources by 2015. The Clean Energy Jobs Act would set new goals by ensuring that 25 percent of our electricity comes from renewable resources by 2025.

“This data highlights the need to pass a strong renewable electricity standard in the Clean Energy Jobs Act,” said Reopelle. “Spending $16 billion dollars every year on out-of-state fossil fuels drains Wisconsin’s economy. By investing in renewable energy, we can create jobs and keep much of that money right here at home.”