Beyond coal … winners and losers

From an article by Chris Hubbuch in the La Crosse Tribune:

Local utilities support efforts to reduce greenhouse gases but differ on how to do it fairly

CASSVILLE, Wis. – The future of Wisconsin’s energy is piled high on the south lot of the E.J. Stoneman plant.

Gone is the coal that fueled the boilers for six decades. Now 40,000 tons of wood chips and railroad ties tower over construction workers building an apparatus to grind that wood into fuel.

With its yellow tile walls and dusty turbines, Stoneman hardly looks futuristic. La Crosse-based Dairyland Power built the plant in 1950 and shuttered it in 1993 for economic reasons.

But with a push to limit carbon dioxide released into the atmosphere, utilities are scrambling for new sources of renewable energy to replace fossil fuels. Stoneman again is viable.

DTE Energy Systems bought the plant in 2008, stripped out the boilers and began a two-year project to convert it to biomass. Starting this summer, they expect the turbines to spin again with steam generated primarily by construction and demolition debris.

Even with a cost in the tens of millions – they don’t disclose the exact amount – DTE expects to make money because of the premium price for green energy.

On the other side of town, Alliant Energy burns wood pellets along with coal at its Nelson Dewey station as part of a yearlong test. Though Madison-based Alliant has no plans to convert the plant, the company will use the data as it examines ways to reduce its carbon footprint, spokesman Steve Schultz said.

With Congress poised for the first time to limit carbon emissions, power utilities are ramping up efforts to replace coal, a cheap and plentiful resource that long has been the major source of electricity, particularly in the Midwest.

Environmental advocates say it’s a start to slowing global climate change, and even utilities favor the principle of limiting greenhouse gases.

But not all utilities are created equal. Xcel Energy, which supplies urban households and industries, has a diverse energy portfolio bolstered by investments in renewable sources and nuclear power, which produces no greenhouse gases. Dairyland Power, which through its member cooperatives provides power for most of the Coulee Region’s rural and small town residents, relies almost exclusively on coal.

Both utilities support a congressional approach to cutting carbon emissions but differ on the details of how it should be done.

Homegrown Renewable Energy Campaign touts renewable energy buyback rates

From a fact sheet issued by the Homegrown Renewable Energy Campaign:

An innovative way to encourage more smaller-scale renewable energy systems by paying premiums to customers for wind, solar, biogas or biomass electric generation.

How are they different from standard utility buyback rates?
Unlike standard buyback rates, Renewable Energy Buyback Rates provide a fixed purchase price for the electricity produced over a period of 10 to 20 years. They are set at levels sufficient to fully recover installation costs along with a modest profit. Because the purchase price is guaranteed over a long period, Renewable Energy Buyback Rates make it easy for customers to obtain financing for their generation projects.

Why don’t utilities pursue these small-scale renewable projects themselves?
In general, the smaller the generating facility, the less likely it is owned by a utility. Utilities tend to favor bulk generation facilities that employ economies of scale to produce electricity at a lower cost. Renewable power plants owned by
utilities—such as large wind projects—are sized to serve their entire territory, not just a particular distribution area. For that reason utilities have shown little appetite for owning and operating distributed generation facilities powered with
solar, biogas, wind, and hydro.

If utilities won’t invest in small-scale renewable projects, how will they get built?
Clearly, the capital needed to build smaller-scale renewable projects has to come from independent sources—either customers or third parties. There is no shortage of investor interest in these systems, and sufficient capital is available. What’s needed to finance these projects is a predictable, long-term purchasing arrangement that assures full capital recovery if the project performs according to expectations. That’s where Renewable Energy Payments come into play.

DOT undecided between La Crosse, Eau Claire high-speed rail routes

From an article by Steve Cahalan in the La Crosse Tribune:

The final version of a Wisconsin Department of Transportation long-range plan still has alternate routes through Eau Claire and La Crosse for high-speed passenger rail service between Tomah and the Twin Cities.

The DOT soon will study which route might be best.

The agency said Wednesday it has formally adopted its new Connections 2030 long-range plan, available online at www.wiconnections2030.gov.

Local business and government leaders argued at an Aug. 26 public hearing on the plan in La Crosse that studies years ago already had determined Amtrak’s Empire Builder route is the most ideal in the region for planned high-speed passenger rail service between Chicago and St. Paul. That route goes through Tomah and La Crosse, as well as Winona and Red Wing in Minnesota.

Backers of that route announced last week they have formed the Empire Builder High Speed Rail Coalition.

Coalition members remain convinced that is the best route, said the group’s coordinator, James Hill, who also is executive director of the La Crosse Area Development Corp.

Discounted LED holiday lights help consumers trim their trees, not their wallets

From a news release issued by Focus on Energy:

(Nov. 16, 2009) – LED (light emitting diode) holiday lights are a proven way to help consumers trim energy costs while trimming their trees. How? This technology saves energy, while helping to preserve the environment. What’s more, Focus on Energy, Wisconsin’s statewide energy efficiency and renewable energy resource, is offering financial incentives toward the purchase of ENERGY STAR® qualified LED holiday light strings.

Now through Dec. 31, 2009, or until supplies last, Focus on Energy is offering a $3Instant Reward, taken at the register, on the purchase of ENERGY STAR qualified LED holiday light strings at participating locations including Ace Hardware, Costco, Do it Best, Hardware Hank, Menards, Mills Fleet Farm, Shopko, Stein Gardens & Gifts and True Value Hardware locations. Limit twelve (12) light sets per customer.

First stop on Homegrown Renewable tour

First stop on Homegrown Renewable tour

Standing behind an electrical vehicle charger at the beginning of the Homegrown Renewable Energy tour, Tom Shee, Honda Motorwerks, La Crosse, explains that the electricity from the turbines at the Monfort Wind Farm could provide the power for the plug-in hybrid behind him. Photo by Laura Stoesz.