PSC Approval of Bay Front Project Advances Wood Over Coal

IMMEDIATE RELEASE
October 30, 2009

MORE INFORMATION
Michael Vickerman
RENEW Wisconsin
608.255.4044
mvickerman@renewwisconsin.org

Madison, WI (October 30, 2009) RENEW Wisconsin today hailed the decision by the Public Service Commission to approve a utility’s plan to repower an aging northern Wisconsin coal-fired plant with locally available wood fuel.

The approval allows Northern States Power Company-Wisconsin (NSPW), a subsidiary of Xcel Energy, to install the state’s first biomass gasifier. The system will produce synthetic gas from a variety of wood sources to produce electricity at the company’s Bay Front Power Plant in Ashland, Wisconsin.

“This project will yield multiple dividends to the utility’s ratepayers and the local economy in and around Ashland,” said Michael Vickerman, executive director of RENEW Wisconsin, a statewide advocacy group for renewable energy.

“Capital projects are few and far between in northern Wisconsin. Rather than closing down an inefficient plant that relies on imported fossil fuel, NSPW is extending its life and improving its environmental performance with this switch to a sustainable energy source,” Vickerman said.

“This proposal is an excellent resource fit for this part of the state. The money spent to acquire wood fuel will remain in the local area, instead of being exported to western coal states,” Vickerman said.
END
RENEW Wisconsin (www.renewwisconsin.org) is an independent, nonprofit 501(c)(3) organization that acts as a catalyst to advance a sustainable energy future through public policy and private sector initiatives.

Solar outlook set to dim in 2010

IMMEDIATE RELEASE
October 23, 2009

MORE INFORMATION
Michael Vickerman
RENEW Wisconsin
608.255.4044
mvickerman@renewwisconsin.org

Utilities’ voluntary incentives hit limits

(Madison, WI – October 23, 2009) In contrast to the rapid growth experienced in the last three years, a leading state renewable energy advocacy group expects a sharp decline in installed solar electric capacity in 2010.

In statements directed to the Public Service Commission (PSC), three utilities – Wisconsin Electric Power (WE), Wisconsin Power and Light (WPL), and Wisconsin Public Service (WPS) – acknowledged yesterday that their voluntary solar incentive programs will be discontinued for new customers. All three had offered, on a limited basis, a special buyback rate for the generated electricity, which effectively cut in half the payback period for the systems.

“These three incentive programs spurred homeowners and businesses to install nearly 2.5 megawatts of solar electric capacity,” said Michael Vickerman, executive director of RENEW Wisconsin. “But for those incentives, we wouldn’t not have reached the milestone that PSC Chair Eric Callisto recently celebrated at the installation of a system serving the Town of Menasha.”

“Though voluntary initiatives are certainly welcome, they cannot by themselves sustain a vibrant solar marketplace. By far the most effective way to maintain solar’s momentum is for the Legislature to require utilities to purchase a set amount of renewable energy from their own customers at a reasonable price,” said Vickerman.

Going into 2010, the only investor-owned utility that has a special buyback rate is Madison Gas and Electric (MG&E), which pays its customers 25 cents per kilowatt-hour for electricity generated from their solar systems. MG&E’s voluntary program still has room for another 600 kilowatts of customer-owned solar.

Until their voluntary initiatives had reached capacity, both WPS and WPL had been paying the same rate as MG&E, while WE had offered a 22.5 cents for each kilowatt-hour generated.

“If renewable energy is to drive job growth in Wisconsin, lawmakers must create favorable marketplace conditions to support new installations going forward. No policy will accomplish that goal more effectively than a state initiative to establish higher buyback rates,” Vickerman said.
END

Comments in opposition to PSC staff recommendation to raise rates in MGE's Energy for Tomorrow program

COMMENTS FILED ELECTRONICALLY IN

Application of Madison Gas and Electric Company for Authority to Change Electric and Natural Gas Rates 3270-UR-116

Commentor Information:
Name: Michael Vickerman
Address: 509 Elmside Blvd.
City: Madison State:WI Zip:53704
E-mail: mvickerman@renewwisconsin.org

To the Commission:

I would like to comment on the recommendations from PSC staff (witnesses John Feit and Jerry Albrecht) to increase the premium charged to Green Power Tomorrow subscribers. I approach this issue from a multiple of perspectives: (1) as a professional renewable energy advocate; (2) as a 100% program subscriber (since 1999); and (3) as a proud owner of a 1.7 kW solar electric system that was installed after Madison Gas and Electric launched its Clean Power Partners program in 2008.

All of MGE’s Clean Power Partners, (including me) sell the output from our solar systems to Green Power Tomorrow program subscribers through a 25 cents/kWh buyback rate. Among these customer-producers of clean energy are TDS Custom Construction, Goodman Community Center, City of Madison, Dane County Regional Airport, Madison No Fear Dentistry, and Isthmus Engineering.

The solar buyback rate is supported through voluntary purchases of renewable electricity. When the Clean Power Partners program was announced, MGE envisioned a 300 kilowatt ceiling on solar energy purchases through the special tariff. All Clean Power Partners must subscribe to Green Power Tomorrow. At the same time Clean Power Partners was launched, MGE reduced the subscription premium to a penny per kWh. The declining premium sparked a significant upsurge in subscribership, which enabled MGE to carve out a larger space for solar electric production supported by the program. The ceiling on the Clean Power Partners program is now one megawatt.

I mention Clean Power Partners to highlight the link between subscription volume and solar electric production. The larger the volume of electricity flowing through Green Power Tomorrow, the greater the amount of solar generation that the program can support. The reverse, however, is also true.

The participation rate of these programs is very sensitive to premium amounts. According to research compiled by the National Renewable Energy Laboratory, the median premium price of voluntary programs nationwide is about a penny per kWh. Programs with higher premiums have a significantly smaller participation rates than Green Power Tomorrow. Forcing MGE to increase its renewable energy premium would trigger a falloff in participation, which in turn would very likely result in higher rates to nonparticipating ratepayers. Moreover, a contraction in subscribership may very well force MGE to curtail its Clean Power Partners program due to insufficient program revenues.

Clearly, the special buyback rates offered by MGE, Wisconsin Power & Light and We Energies have delivered a positive jolt to Wisconsin’s solar electric marketplace. Wisconsin is actually a regional leader in solar electric capacity. No other Midwestern state comes close to where Wisconsin is right now. Given the significant progress made in the last three years, how does it benefit the state to choke off the one enabling policy that makes solar generation a reasonable value proposition to responsible energy users?

Shifting gears somewhat, there is an implicit understanding among program subscribers that they are committing to energy resources whose costs are fixed through long-term contracts. Many of these subscribers are likely to react negatively to a higher premium, because they know that the renewable resources leveraged through Green Power Tomorrow are not going up in price. They are likely to interpret an increased premium as expressing a public policy preference for burning more fossil fuel to take advantage of temporary dips in coal and gas prices. Is that really the message the PSC wishes to convey?

Let’s summarize the consequences of a higher premium:

1) Decline in program participation rate, due to a combination of economic impacts and negative reinforcement.
2) Decline in program revenues, forcing MGE to compensate through higher rates on all customers.
3) Premature seizing up of the solar electric marketplace in the Madison area.

It is highly ironic that the PSC would consider inflicting such a cascading sequence of perverse outcomes to a nationally recognized renewable energy program like Green Power Tomorrow. Just last month, MGE’s renewable energy program received the U.S. Department of Energy’s (DOE) Utility Green Power Program of the Year Award. The award was announced at the Green Power Leadership Awards banquet in Atlanta, Georgia. The honor bestowed to MGE was well-deserved, as evidenced by the letter I wrote in support of its program (see below).

Let’s not wreck a good thing. Please refrain from forcing MGE to raise its premium on current and future renewable energy subscribers. Thank you.

Michael Vickerman
RENEW Wisconsin
222 S. Hamilton Street
Madison, WI 53703

Home address:
509 Elmside Blvd.
Madison, WI 53704
+++++++++++++++++

June 5, 2009

Mr. Courtney Welch
Green Power Leadership Awards
Navarro Research & Engineering for
U.S. DOE Golden Field Office
1617 Cole Blvd, MS 1501
Golden, CO 80401

Dear Mr. Welch:

It is with great pleasure that I submit this letter of support on behalf of Green Power Tomorrow, the highly popular renewable energy subscription program offered by Madison Gas & Electric. I offer this letter of support not only in my capacity as a professional renewable energy advocate, but also as a customer purchasing 100% of household electrical use through this program.

By any objective standard, MG&E’s program is a hit with its customers. As reported in NREL’s annual assessment of leading green power programs, Green Power Tomorrow has the second-highest customer participation rate (9.7%) among investor-owned utilities in the United States. The program ranks sixth among all utilities in sales as a percentage of total retail electricity sold (3.8%). Through a judicious blend of wind projects from the region, MG&E was able to lower its premium to one cent/kWh, which set the stage for the upsurge in customer participation in 2008. Many a Madison landmark, from the State Capitol to Monona Terrace Convention Center, is powered in part through Green Power Tomorrow.

Notwithstanding its modest premium, the program also supports customer-owned photovoltaic systems through a special buyback rate fixed at $0.25/kWh for 10 years. Called Clean Power Partners, this initiative has motivated dozens of customers to install PV on the residence or business. Last August, I became a Clean Power Partner, when the electricity from the newly installed 1.7 kW system on our house began flowing into the grid. With this installation we now produce nearly emission-free 2,000 kWh/year on top of the 4,000 kWh/yr of emission-free electricity we buy from MG&E. In the 18 months since Clean Power Partners was launched, customer participation has surpassed MG&E’s initial expectations, prompting the utility to increase the ceiling on this initiative from 300 kW to one megawatt.

More than a renewable energy program, Green Power Tomorrow is a community-based sustainability initiative that supports about 50 MW of windpower that otherwise would not have been part of MGE’s resource portfolio. Instead of settling for small, incremental growth for its program, MGE elected to pursue a more ambitious path that would be appealing and affordable to a broad cross-section of its customer base, and the results are impressive. In my estimation, it is an outstanding candidate for this year’s Utility Green Power Program of the Year.

Sincerely,

Michael Vickerman
RENEW Wisconsin

Educating Schools on Solar Air Heating

by Michael Vickerman
RENEW Wisconsin
October 2009

After reviewing several proposals, Focus on Energy selected two locations for showcasing this particular solar energy application.

One of the Focus on Energy-funded demonstration sites is the Cooperative Educational Service Agency, located in Chippewa Falls.

Better known as CESA 10, this agency provides energy management services to 30 school districts in northwest Wisconsin. A low-rise building with plenty of unshaded roof space, the CESA 10 office presents an ideal setting to test a solar application that could very well be a good technology fi t for the schools served by this agency.
“We hope this installation will enable us to practice what we preach,” said Todd Wanous, an energy manager at CESA 10 and the driving force behind this demonstration. Placed in service in August 2009, CESA 10’s innovative installation features Wisconsin’s first example of a modular rooftop air heating system called SolarDuct®.

On the roof are three banks of corrugated collector panels, each connected to the building’s air handling system. The dark-colored panels are covered with ventilation holes that draw in outside air. Sunlight striking the panels warms the air passing through the holes. Through the ducts running behind the arrays, ventilation fans draw the preheated air into the building’s air handling system.

CESA 10’s SolarDuct® unit is designed to supplement, not replace, the natural gas furnaces that used to be the sole source of space heat.

However, this system does not necessitate additional fans or blowers to move the preheated air throughout the building. As a result, there is no parasitic energy loss to factor in.

Continued.

This article first appeared in Sustainable Times, October 2009

Catching Wind

2012
April 2012
+ Siting rule survives challenge, takes effect
+ Community wind sweeps into western Wisconsin
+ St. Croix County Wind Project seeks PSC approval

2011
June 2011
+ State’s Hostility Toward Renewables Escalates
+ “Leaders” Lag Citizenry on Wind Support

April 2011
+ Siting Rule Suspension Rocks Wind Industry
+ Glenmore Wind Survives Raucous Opposition

February 2011
+ Walker, Legislature Open Fire on Siting Rule
+ Site Puts WI Wind Facts at Your Fingertips

2010
September 2010
+ Stringent Siting Rule Heads to Legislature (summary of proposed rule’s provisions)

May 2010
+ PSC Sets Hearings for Turbine Siting Rules
+ Tall Turbines Set to Breeze into Green Bay Area
+ Schools Roll Out Northwind 100 Turbines

February 2010
+ PSC Gives Go-Ahead to Glacier Hills Project
+ From PSC’s Order on Glacier Hills
+ Milwaukee Reels in 270 Jobs With New Wind Generator Manufacturing

2009
December 2009
+ Decision Nears on Glacier Hills Wind Park
+ Excerpts from WEPCO Witnesses on “Wind Turbine Syndrome”

October 2009
+ Wind Permitting Bill Becomes Law of the Land
+ Final Environmental Impact Statement Released for Glacier Hills Wind Park, including “Glacier Hills at a Glance” and a list of parties to the technical hearing.