by jboullion | Feb 19, 2010 | Uncategorized
From a news release issued by the Center for Climate Strategies:
Implementation of the recently introduced Clean Energy Jobs Act (CEJA) would expand the state’s economy and create thousands of additional new jobs for Wisconsin. These impacts are reported in a recent Center for Climate Strategies (CCS) analysis of the macroeconomic effects of the proposed law, conducted by Michigan State University and the University of Southern California in association with the State of Wisconsin. The analysis focuses on nine proposed policy actions that address clean and renewable energy, energy efficiency, industrial processes, transportation and agriculture.
Based on a state-of-the-art macroeconomic analysis, implementation of these CEJA actions would result in the following outcomes for Wisconsin:
Create a net increase of more than 16,200 new jobs in the state by 2025;
Boost the state’s economy (Gross State Product) by
o $254 million in the near term (2015),
o more than $700 million in 2020,
o $1.41 billion by 2025, and
o $4.9 billion total over the 2011-2025 period.
Reactions to the study: Governor Doyle and CREWE.
by jboullion | Feb 18, 2010 | Uncategorized
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.
by jboullion | Feb 17, 2010 | Uncategorized
From a blog post on BizTimes.com by Steve Jagler, executive editor of BizTimes Milwaukee:
. . . BizTimes Milwaukee broke the story that Milwaukee was one of three finalists to be the North American headquarters of a Spanish alternative energy company.
As we now know, that company turned out to be Ingeteam, a Spanish wind turbine company that confirmed Tuesday it will construct a $15 million, 100,000-square-foot facility in Milwaukee’s Menomonee River Valley. The complex will span about 8.1 acres at 3757 W. Milwaukee Road.
Ingeteam, headquartered in Bilbao, Spain, will employ about 275 workers in Milwaukee by 2015.
Milwaukee was chosen to be the site of the new plant after a coordinated recruitment effort that included officials from the Milwaukee 7 economic development team, We Energies, Marcoux and Wisconsin Commerce Secretary Richard “Dick” Leinenkugel, who went to Spain to seal the deal.
“The Menomonee Valley was once Wisconsin’s largest brownfield,” said Milwaukee Mayor Tom Barrett. “Now, the valley is home to businesses that employ thousands of people.”
The deal was made possible by $1.6 million in tax credits through the federal stimulus program, up to $4.5 million in state tax credits and another $500,000 forgivable loan from the state.
“After carefully analyzing our company’s needs, we selected Milwaukee for our new production facility because the city is conveniently located for distribution of our products and has a solid industrial base from which Ingeteam can source materials,” said Ander Gandiaga, Ingeteam’s corporate director for international development.
“Milwaukee also has a labor pool experienced in electrical manufacturing. In addition, the area boasts prestigious universities with some of the highest-ranked engineering departments in the country that offer specific courses in renewable energy, which will be very useful when it comes to finding specialized staff,” said Aitor Sotes, chief executive officer of Ingeteam Inc., Ingeteam’s subsidiary in the United States.
Gandiaga also said the Wisconsin team “made an impressive effort to sell Ingeteam on the virtues of locating in this community. The Ingeteam project perfectly fits the model of the clean energy economy and job creation goals that the city and state are pursuing.”
Ingeteam considered more than 80 sites before selecting Milwaukee as the North American home for its company.
“They could have located this $15 million facility anywhere in the nation. Believe me, Michigan tried very hard,” Leinenkugel said. . . .
The doomsday naysayers who perpetually beat the drum that Wisconsin is a horrible place to do business again had to take a holiday Tuesday. I love when that happens.
by jboullion | Feb 16, 2010 | Uncategorized
From an article by Larry Sandler in the Milwaukee Journal Sentinel:
Politicians and business leaders were quick to celebrate – and claim credit for – Monday’s announcement that a Spanish company will bring hundreds of new jobs to Milwaukee.
Wisconsin’s current governor, two candidates to succeed him, and not one but two regional economic development alliances all lined up to score points from a new Menomonee Valley plant for Ingeteam, a Spanish manufacturer of wind-turbine generators.
About 270 manufacturing jobs will be created by the plant, said Greater Milwaukee Committee President Julia Taylor. Building the plant will bring construction jobs as well, said Patrick Curley, chief of staff to Milwaukee Mayor Tom Barrett.
It will be Ingeteam’s first North American factory, said Gale Klappa, co-chairman of the Milwaukee 7 economic development coalition.
Ingeteam chose the valley because of its proximity to workers, I-94 and Spanish-speaking neighborhoods, as well as Milwaukee’s “great reputation for manufacturing,” said Barrett, also a Milwaukee 7 co-chairman.
The plant will be built near the western end of the valley, Barrett said. The exact site will be announced Tuesday, Curley said.
Barrett called on Klappa, the chief executive officer of We Energies, to make the announcement during the mayor’s “state of the city” address at the downtown headquarters of Manpower. He also introduced five Ingeteam executives, who he said had just flown in from Spain for the announcement.
In January, President Barack Obama’s administration announced that Ingeteam had been awarded $1.66 million in clean-tech manufacturing tax credits to make wind turbine generators as well as power converter and control systems in Milwaukee. Further indications surfaced last week that the company had picked Milwaukee.
Ingeteam is a privately held, diversified manufacturer based in Zamudio, Spain, a suburb of Bilbao, the city visited last fall by state Commerce Secretary Richard Leinenkugel, City Development Commissioner Rocky Marcoux and Milwaukee 7 representatives. Outside Spain, the company has operations in seven countries, including an office in Mequon.
by jboullion | Feb 15, 2010 | Uncategorized
From an article by Tom Content in the Milwaukee Journal Sentinel:
In the rhetoric of the energy bill debate in Madison, energy prices will go up – either because the Legislature passes the Clean Energy Jobs Act or because the Legislature fails to pass it.
Rising energy prices are a familiar refrain to many in Wisconsin, where energy expenditures total $16 billion a year. A review of electricity price increases by the Journal Sentinel found residential customers across the state pay 39% to 70% more than they paid in 2001.
Advocates on both sides of the debate over the Clean Energy Jobs Act are raising fears about higher costs.
Opponents say utilities will have to invest billions of dollars in wind farms and other projects to comply with an aggressive renewable energy mandate proposed by the bill. Supporters say billions of dollars are at risk because of Wisconsin’s heavy reliance on coal.
A new analysis by the state Public Service Commission found that utility bills are likely to be less in 2025 if the bill passes and there’s a carbon tax or cap-and-trade system that penalizes coal.
Public Service Commission Chairman Eric Callisto testified at a recent hearing that power prices for a typical Wisconsin customer would fall nearly 7% if the bill is passed and there’s a $20-per-ton price on carbon. Prices would fall 1% if there’s a $10-per-ton price on carbon and would rise nearly 6.6% if there’s no carbon price, he said.
“But that’s not reality,” he said. “I don’t believe for a second that we’re going to see a future where carbon doesn’t have a price on it.”
In its studies over the last several years, the commission has been banking on the fact that there will be a price on carbon, he said.
Under that scenario, “there are dollars left on the table by the status quo,” Callisto said.
