Another Week, Another Lost Opportunity

Another Week, Another Lost Opportunity

by | Nov 26, 2013 | Uncategorized

Public Service Commission Denies RENEW’s Request to Streamline Interconnection Rules

Another week, another lost opportunity for Wisconsin to move forward on energy self-sufficiency, job creation, and conserving natural resources.

Back in February 2013, RENEW Wisconsin, along with 89 supporters, submitted a petition to the Public Service Commission to revisit highly technical “interconnection rules,” also known as PSC 119.

RENEW and its supporters wanted to streamline these processes, add consistency across utility territories, and reduce costs.  RENEW’s work was part of a collaborative effort under a Department of Energy “SunShot” grant.

On November 15, Wisconsin’s Public Service Commission issued a written order denying RENEW Wisconsin’s petition to improve these rules.  This occurred even though Wisconsin recently received a “D” in a nonpartisan report titled “Freeing the Grid” comparing the interconnection practices in all 50 states. To put that grade in perspective, every state immediately bordering Wisconsin received a “B” or a “C.”

One potential biodigester project was told that the cost of
upgrading the local grid to accommodate the project would
run nearly $750,000.  This exorbitant price quote effectively
killed the project.

Here are some examples of why these rules are so important:

  • One potential biodigester project was told that the cost of interconnection would be nearly $750,000. This exorbitant price quote effectively killed the project.  
  • In addition, many utilities nationally are removing the need to include an external disconnect switch for residential and small-scale renewable energy systems, such as a solar installation on a typical home. This would save project costs and help customers make the decision to purchase these types of systems.
Wisconsin currently scores
a “D” on our state’s interconnection 
rules, according to the “Freeing the Grid”
report. The 
improvements we suggested would have helped us improve our 
report card!

Wisconsin’s interconnection rules were last updated in 2004.  Since then, the federal government issued a “best practices” document in 2006, and a national organization called the Interstate Renewable Energy Council has also recently issued best practices and model interconnection procedures for states to adopt.

In short: the timing was right, the resources were available, and a broad cross-section of supporters were lined up in support of the effort.

Unfortunately, this is another lost opportunity to move Wisconsin forward. 

Read the PSC’s order and Commissioner Eric Callisto’s dissent (starting on page 5) here.

Additional background
information: Interconnection rules governs how
small solar, wind, and biodigester renewable energy systems are connected to
the grid to ensure safety and reliability of the entire grid and utility
employees working on electrical lines. These rules also offer assurance to
potential customer-generators that their systems will be reviewed under a
standardized framework which sets forth reasonable timelines for application
review and decision-making. RENEW’s
Summer Policy Intern, Rikaela Greane, prepared a more comprehensive article on the background of interconnection for our
July Member newsletter.

RENEW Wisconsin Blasts PSC Over Solar Vote Flip-Flop

by | Nov 18, 2013 | Uncategorized

Chair Reverses Himself One Week After Pro-Solar Vote

Michael Vickerman, RENEW Wisconsin Policy Director

At its open
meeting on November 14, 2013, Public Service Commission (PSC) Chair Phil
Montgomery reversed his own vote taken a week earlier that would have
strengthened Wisconsin Public Service (WPS) Corporation’s net metering service
starting January 2014.  
A week
earlier, Montgomery stated his preference for ordering WPS to loosen a key
restriction applicable to new solar systems. He was joined by Commissioner Eric
Callisto in that discussion. But at the later meeting, Montgomery reversed
himself, and sided with Commissioner Ellen Nowak.  
As a result of
Montgomery’s about-face, WPS will continue to offer the most restrictive net
metering service in the state, which will depress Wisconsin’s already struggling
solar market even further.
In testimony
presented in WPS’s 2014 rate case, RENEW Wisconsin, a clean energy advocacy
organization, argued that the utility’s net metering service puts prospective
solar generators at a disadvantage relative to other utility customers. RENEW’s
testimony included figures revealing a steep drop-off in the number of solar
electric systems built in WPS territory beginning in 2012.
The
generally accepted practice among utilities is to calculate the net between
production and consumption over a 12-month period.  Alone among Wisconsin utilities, WPS
calculates the net each month, a practice that lengthens system payback.
“Though a
complicated and highly technical policy, net metering is the principal driver
for customer installations of solar.  Net
metering for solar is like rollover minutes for your cellphone, and details
like calculating the rollover annually versus monthly really matter,” said Tyler
Huebner, Executive Director of RENEW Wisconsin. “It’s clearly in Wisconsin’s
interest to establish a policy environment for solar energy that is
predictable, easy to understand, and uniformly applied from one utility to the
next,” Huebner said.
At the initial
open meeting on November 6, Commissioner Montgomery expressed support for those
principles. As captured in the Wisconsin Utility Regulation Report, “Montgomery said his preference was to direct
the applicant to adopt an annual netting structure for this tariff consistent
with what the commission decided in [We Energies]’s last rate case  . . . .”
Statement of Tyler Huebner:
“The facts
in this case did not change between the Commission’s voice votes on November 6
and 14, and the need for a stronger and more uniform net metering policy did
not diminish. But this breathtaking decision erases the PSC’s one positive
decision on WPS’s treatment of solar energy, and the result will be yet another
step backward.” 
“For those solar
installers in central and northeast Wisconsin who initially cheered the PSC’s
decision, Montgomery’s flip-flop comes as a bitter pill to swallow. Indeed, the
welcome mat that once greeted start-up solar businesses here has all but
disappeared.”
“Let’s take a step back
and look at the broader picture on electricity generated from the sun.  Nationally solar adoption increased a
whopping 76% from 2011 to 2012, yet in
Wisconsin the number of systems connected to the grid declined by 40%.  Approximately 14,000 jobs were created
nationally in the industry in 2012, a 13.2% annual employment jump, taking the
national total to 119,000 jobs.  Next,
92% of American voters agree that it is important for the U.S. to develop more
solar, and 84% of Wisconsin voters support a three-fold increase in the amount
of electricity the state gets from renewable sources like solar. Finally, based on research from
the University of Massachusetts-Amherst, solar energy creates twice as many jobs
for every dollar invested as coal, and more than twice that of natural gas.”
“Solar is a
growing industry, an industry that creates more jobs per dollar invested than
its competitors, and the people want it badly. 
Yet, in a state that claims it’s open for business, a state where we
want and need to create jobs, our public officials are impeding progress. What
a huge lost opportunity for the state. We have to go no further than Iowa to
hear a completely different tune, where Republican governor Terry Branstad said
just two weeks ago, ‘As a leader in wind energy and renewable fuels, Iowa
should be at the front of the pack in implementing programs that encourage the
use of solar energy as well.’”
“This is the
third decision that has severely hampered clean energy and Wisconsin job
creation in as many months. In September, the PSC voted to suspend Focus on
Energy renewable energy incentives through the end of the year, ensuring that
millions of dollars earmarked for this purpose will go unspent this year. Then in
October, the PSC rejected our petition to initiate a new proceeding for
improving the state’s interconnection rules.  These rules determine how easy or difficult,
and how expensive or cost-effective, it is for a potential owner of a renewable
energy system to connect into the electric grid.  Wisconsin’s rules haven’t been updated since
2004, even though  technology has changed
a lot since then.  For example, that was
four years before the first iPhone even came out. The PSC fumbled an
opportunity to step in and streamline these administrative procedures.”
“These three
recent decisions are job-killing decisions. 
If you don’t think Wisconsin is falling behind on the policies that make
solar energy flourish, take a look at how Wisconsin fares against its
neighboring states.   “For any public
official that wants to create jobs in Wisconsin, give us a call, we can help
you.”
Ranking Midwestern States on Solar Policies and Practices
How Does Wisconsin
stack up against neighboring states?
State
Net metering grade
Interconnection
grade
Illinois
B
B
Iowa
B
B
Michigan
B
C
Minnesota
B
C
Wisconsin
C
D
Source: Freeing
the Grid 2013: Best Practices in State Net Metering Policies and
Interconnection Procedures, Interstate Renewable Energy Council, 2013.  Net metering policy for renewable energy
systems is like rollover minutes for your cellphone:  it ensures that owners of renewable energy
systems get full credit for the power they generate.  Interconnection rules determine how easy or
difficult, and how expensive or cost-effective, a state’s rules are regarding
connecting distributed energy generators (such as solar, wind, and biodigester
systems) to the grid.  Wisconsin’s
interconnection rules haven’t been updated since 2004.

PSC Pulls Plug on Solar and Wind Incentives Again

by | Oct 1, 2013 | Uncategorized

For the second time in three years, state of Wisconsin incentives for customer-sited solar and small wind systems has been suspended, a result of recent Public Service Commission (PSC) decisions affecting Focus on Energy’s renewable energy budget. Incentives for biogas and biomass installations are not affected by the PSC’s decisions.

The cut-off of solar and wind incentives follows an across-the-board suspension of renewable energy incentives that lasted one year before being lifted in July 2012. RENEW Wisconsin has issued a press release concerning the PSC’s decision below.

UPDATE: Check out Tom Content’s article on JSOnline for more information.

For Immediate Release

August 1, 2013 

PSC Pulls Plug on Solar and Wind Incentives Again 

PSC Vote a “Dark Day for Solar Energy in Wisconsin” 

Focus on Energy has suspended incentives for solar and small wind energy systems for the remainder of 2013, as a result of a Public Service Commission (PSC) order approved last week. The funding suspension takes effect even though Focus on Energy has spent only $1.2 million of the $10 million budgeted this year for all renewable energy technologies. 

The PSC split 2-1 on the vote stopping the flow of incentives for solar and small wind energy systems. Commissioners Phil Montgomery and Ellen Nowak approved the suspension order, while Commissioner Eric Callisto voted against the motion.   

“In approving this funding stoppage, the PSC ignored the public comments of over 630 citizens and businesses who urged the agency to provide a consistent, stable program to promote solar and wind energy,” said Executive Director Tyler Huebner.  “This will go down as a dark day for solar energy in Wisconsin.” 

The funding suspension was triggered by a slowdown in demand for incentives for biogas and biomass energy systems. Though up to $7,500,000 in incentives is set aside for bioenergy projects, only $384,448 in incentives have been paid out to date in that category.  Under an order adopted by the PSC in 2012, Focus on Energy must maintain a 75/25 percent funding split between the bioenergy category and the solar/small wind category.  

“Prices for solar projects have dropped steeply in recent years and these projects are as cost-effective for residential and business customers as biogas is for farmers and food processors,” said Huebner. “In addition, the timelines for biogas projects are unrelated to those of wind and solar projects. Add these together, and there is no reason financial incentives for solar and wind should be contingent on the health of bioenergy market.” 

“This decision further ‘boxes in’ the Focus on Energy administrator regarding these incentives. The stipulations added by the Commission appear to make the calculations mathematically unworkable. We can envision the program’s administrator resorting to a Ouija Board to figure out how much funding is available for solar and wind projects going forward.”   

Burke O’Neal, co-owner of Full Spectrum Solar in Madison, discussed the impact on businesses.  He said, “It’s really bad for business in Wisconsin to have a program that appears and then with very little notice disappears. It’s really hard to build a business and a stable industry when programs aren’t consistent.” 

In his dissent, Commissioner Eric Callisto stated that Commission’s goal in its 2012 ruling “was to create market certainty, foster fiscal sustainability and program cost-effectiveness, and ultimately allow the funding of more biogas and biomass projects. The Commission’s decision today helps to advance none of those goals, but rather reintroduces substantial uncertainty into the renewables marketplace.” Callisto added, “If the Commission’s 75/25 split was meant to emphasize biomass and biogas resources, it isn’t working, and today’s decision won’t help.” 

RENEW Wisconsin’s Tyler Huebner added, “In Wisconsin we send $12.5 billion out of the state each year to buy coal, oil, and natural gas. We don’t have any of those energy resources within our state.  The Focus on Energy incentives for solar and wind should be available to help residents, businesses, and farmers take control of their energy bills and produce electricity in a self-sustaining manner.  For a decade, the success of this program helped Wisconsin build a thriving small business market to deliver these alternative energy solutions to customers.  With this latest suspension, that once-thriving market of businesses will take yet another hit, and sadly, the credibility of the entire Focus program certainly takes a hit too.”

—-END—- 

Upon further review, PSC approves Highland wind farm

by | Sep 26, 2013 | Utility Scale, Wind

An article by Tom Content documents how the PSC reversed course on the Highland Wind Farm project, which has now been approved:

After initially rejecting the plan, Wisconsin energy regulators gave the go-ahead Thursday for Emerging Energies to build a $250 million wind farm in western Wisconsin.
The state Public Service Commission approved the St. Croix County wind farm in a 2-to-1 vote, with commission Chairman Phil Montgomery agreeing to support the project.
Earlier this year, Montgomery and commissioner Ellen Nowak had rejected the plan, saying the developer hadn’t shown it was able to comply with the state’s noise standard for wind turbines.
But they opened the door to Emerging Energies to show how it could comply with the standard, and the developer followed up, indicating it could comply with the standard by curtailing some of the turbines at night.
Montgomery said Thursday he was satisfied with the developer’s curtailment plan, but wanted to see documentation that the wind turbines are programmed to meet the noise standard — and that the project developers follow up “with adequate measurement and monitoring.”
In a statement after the vote, the conservation group Clean Wisconsin praised the panel’s 2-to-1 decision.
“Today’s decision is a victory for cleaner air and water in Wisconsin,” said Katie Nekola of Clean Wisconsin in a statement. “The Highland Wind project will supply enough clean, safe electricity to power hundreds of homes and businesses, and will displace dirty coal power.”
If the project moves forward to construction, the Highland Wind Farm in the town of Forest in St. Croix County would consist of up to 44 wind turbines, generating 102.5 megawatts of electricity.
Look for updates later today on JSOnline.

[READ ORIGINAL ARTICLE]

PSC facing key decision on solar and wind energy incentives

by | Aug 20, 2013 | Uncategorized

Paralleling Tom Content’s article for the Milwaukee Journal Sentinel, Mike Ivey’s story for the Capital Times offers his interpretation of the opinions and events influencing the PSC’s deliberation over whether or not to finalize the decision to suspend Focus on Energy incentives for wind and solar. Commenting in this article, RENEW’s Tyler Huebner notes that “Judging by the extraordinary outpouring of support for continuing
incentives to solar and small wind, it’s clear that the PSC’s move to
suspend incentives struck a nerve with the public”. 

By Mike Ivey

Will Gov. Scott Walker’s Public Service Commission reverse course on renewable energy development in the state?

Clean
energy advocates hope so and are reporting a “massive outpouring” of
support for continuing incentives for residential solar or wind projects
in Wisconsin.
Under its Focus on Energy Program, the state is authorized to spend up to $10 million per year on renewable energy incentives.
But the PSC voted 2-1 in July to suspend the incentives through the end of 2013.
The
move stems from a previous directive from the commission to shift more
renewable energy incentives to biofuel projects — such as manure
digesters or waste wood burning — which some analysts say offer greater
energy savings.
A final ruling is expected in the coming weeks,
but since July, more than 630 comments were submitted to the PSC urging
the panel to maintain the incentives. The three-member commission has
two Walker appointees and one holdover from former Gov. Jim Doyle.
“Judging
by the extraordinary outpouring of support for continuing incentives to
solar and small wind, it’s clear that the PSC’s move to suspend
incentives struck a nerve with the public,” says Tyler Huebner,
executive director of RENEW Wisconsin.

[READ MORE]