RENEW asks PSC to stop We Energies' termination of renewable program

From the testimony of RENEW presented by Michael Vickerman, who draws attention to the fact that We Energies is trying to defund its $6 million/year renewable energy development program without any justification. In fact We Energies doesn’t say anything about their actions. RENEW asks the PSC not to sanction this sleight of hand maneuver:

Q. What is the purpose of your testimony?
A. The purpose of my testimony is to discuss the May 2011 decision by We Energies to cancel a 10-year, $60 million commitment to support renewable energy development in its service territory. . . .

My testimony includes a recommendation to the Commission that it not allow We Energies to reallocate in 2012 the $6 million per year it had committed to spend on renewable energy development activities for other purposes. . . .

Q. What elements of We Energies’ Renewable Energy Development program do you consider to be particularly successful?
A. Several of We Energies’ customer incentives and tariffs were unique in the way they complemented Focus on Energy’s renewable energy program. For example, We Energies was the first utility to: (1) offer a solar energy-specific buyback rate; (2) increase the net energy billing capacity ceiling for small wind systems generators to 100 kW; and (3) support renewable energy-specific conferences and events such as Solar Decade held in Milwaukee. Perhaps the most innovative element in We Energies’ program, however, was its special incentive for nonprofit customers seeking to install renewable energy systems. Every three months, We Energies would solicit proposals from schools, religious institutions, local governments, nature centers and other nonprofit entities to co-fund new renewable energy systems on their premises. This We Energies incentive supplemented Focus on Energy grants and cash-back awards. It was designed to overcome the inability of these nonprofit entities to capture federal renewable energy tax credits to offset their own system acquisition costs. As a result of this unique incentive, there are more renewable energy systems serving nonprofit customers in We Energies territory than in any other utility territory. This initiative has an educational component to it as well; We Energies posts real-time production data from these systems on its web site.

Wind project holds down utility's costs by$12 million, coal pushes them higher

From an article by Tom Content in the Milwaukee Journal Sentinel:

We Energies customers could see a small increase in electric bills in 2012 linked to the higher price of coal and other power plant fuels expected next year, the company said Wednesday.

The state’s largest utility filed a plan with the state Public Service Commission that said costs linked to power plant fuels are projected to rise by about $50 million in 2012.

The utility wants to delay an increase in non-fuel rates until 2013. Whenever that increase hits customers’ bills, it would result in a hike of about 6%, the utility projects.

Under the utility’s plan, rates would rise in 2012 only because of power plant fuel prices, and the bottom line for customers would be an overall 2012 increase of less than 1%.

Residential customers would see a 0.7% increase, adding 77 cents a month for a typical residential customer now paying $104.90 a month for electricity, utility spokesman Brian Manthey said. Business customers would see increases of about 1% to 1.1%. . . .

The higher price of coal is projected to lead to $28 million in higher costs next year, including the price of the fuel itself and cost to deliver it by train to Wisconsin. Other increases include $10 million for power it buys from the Point Beach nuclear plant and about $8 million for natural gas.

Offsetting these increases somewhat is the state’s newest and largest wind farm, set to open late this year. Generation from the Glacier Hills Wind Park would decrease 2012 fuel costs by more than $12 million, We Energies said.

We Energies may not meet renewable energy standard

From an article by Tom Content in the Milwaukee Journal Sentinel:

We Energies won final approval to build a $255 million biomass power plant in north-central Wisconsin Thursday.

The utility had wanted a decision this week to help it keep on target to complete construction by late 2013.

But the utility hasn’t decided whether it will proceed with the building the plant at this point. Utility spokesman Brian Manthey said We Energies and Domtar Corp., its partner in the project, are reviewing conditions that regulators attached to the deal – conditions that aim to bring down the overall cost of the project for utility customers.

The biomass plant at the Domtar paper mill in Rothschild is being proposed at a time when the utility has enough power to meet the needs of its customers but is required because of the state’s renewable portfolio standard.

That standard, adopted by the state Legislature in 2006, requires that 8.25% of We Energies’ power come from renewable sources by 2015.

If the project does not move forward, We Energies executives told investors last week they would want to have discussions with the Walker administration about alternatives, including a possible way of delaying the company’s compliance with the law.

There have been discussions of possible legislation that would help the utility delay the time frame for complying with the law, or it could take advantage of “off-ramps” built into the 2006 law that would allow it more time to comply.

Valley plant could switch to gas

From an article by Tom Content in the Milwaukee Journal Sentinel:

We Energies plans to take initial steps toward converting its Milwaukee coal-fired power plant to burn natural gas, the utility’s chairman told shareholders Thursday.

The Milwaukee utility has been under pressure to address air pollution from the power plant located south of downtown in the Menomonee River Valley.

To comply with new federal pollution rules, the utility has been studying whether to convert the plant to natural gas or to add environmental controls that could allow it to continue burning coal.

“We believe we will need to convert the plant from coal to natural gas,” Chairman and Chief Executive Gale Klappa told shareholders at Wisconsin Energy Corp.’s annual meeting at Concordia University Wisconsin in Mequon.

We Energies will file an application with the state Public Service Commission in the second half of this year for an initial project that would be needed for that conversion to take place.

“That first step would be to put in a larger natural gas pipeline that could . . . supply natural gas to that facility,” Klappa said. “That will be a significant project. It will require PSC approval, it will require City of Milwaukee approval, and it will require us to update a 1949 natural gas line that runs through the area.”

Klappa did not announce a timeline for converting the plant from coal to gas. Utility spokesman Brian Manthey said the utility needs to ensure it has the approval and the ability to supply gas to the power plant before it makes a final decision.

“The (Cleaner Valley) coalition encourages We Energies to move as quickly as possible,” said the Rev. Willie Brisco, president of Milwaukee Inner City Congregations Allied for Hope. “People’s lives are impacted by Milwaukee’s dirty air each and every day.”

Built in the late 1960s, the Valley plant is the utility’s only major coal-fired plant in Wisconsin that lacks modern pollution controls. A much smaller coal plant in Wauwatosa provides steam to businesses at the Milwaukee County Grounds.

Environmental groups and a consortium of other groups in the Milwaukee area formed the Cleaner Valley Coalition to urge the utility to clean up the plant. In addition, the Sierra Club and Clean Wisconsin challenged an air pollution permit for Valley, saying it doesn’t go far enough to protect public health.

“We’re very happy to hear that they’re taking a step in the right direction,” said Emily Miota of the Sierra Club. “The biggest concern now is that they move quickly to make this happen.”

We Energies ponders Valley plant's future

From an article by Thomas Content in the Milwaukeee Journal Sentinel:

Stricter EPA pollution rules leading to changes

We Energies managers expect to decide this year how the utility will clean up the Menomonee Valley power plant to comply with new environmental rules.

The Milwaukee power company is studying whether to add pollution controls at the downtown plant or to convert the plant to burn natural gas.

A coalition of health and environmental groups plans a petition drive calling on the company to make changes more rapidly.

The Valley plant has come under fire because it is the only large utility plant the company operates in Wisconsin that hasn’t been outfitted with state-of-the-art pollution scrubbers or shut down.

As part of a federal court settlement resolving alleged violations of the Clean Air Act, the state’s largest utility has added pollution controls to power plants in Oak Creek and Pleasant Prairie, and converted its oldest coal plant in Port Washington to burn natural gas.

The Cleaner Valley Coalition has expanded its coalition with the addition of the Milwaukee Inner-City Congregations Allied for Hope and the Wisconsin Interfaith Power & Light coalition, among others. Other members include the Black Health Coalition of Wisconsin, the Milwaukee Latino Health Coalition, Midwest Environmental Advocates, Sierra Club and Clean Wisconsin.

“We are demanding We Energies to clean up its mess and the Environmental Protection Agency to hold We Energies accountable to meet modern and protective health standards,” said Virginia Zerpa, leader of the Cleaner Valley Coalition.