by jboullion | Dec 2, 2010 | Uncategorized
For immediate release
More information
RENEW Wisconsin
Michael Vickerman
608.255.4044
mvickerman@renewwisconsin.org
Wisconsin Cannot Afford to Ignore Rising Coal Prices
Long-considered an inexpensive and reliable fuel source, coal has become subject to market and regulatory pressures that threaten to make it an expensive and risky way to generate electricity, according to national news reports and pertinent utility filings with the Wisconsin Public Service Commission (PSC).
“The expectation of continued increases in coal prices reinforces the value of relying on Wisconsin’s own energy resources. If there’s an effort to find savings for utility customers, the logical move would be to shutter antiquated coal plants before they become more of a liability,” said Michael Vickerman, Executive Director of RENEW Wisconsin, a statewide, nonprofit renewable energy advocacy organization.
A key driver behind coal’s rising cost is China, which has moved from an exporter to an importer of coal. The New York Times (NYT) reported last week that Chinese coal imports will hit all-time highs for November and December of this year. Some of this coal is coming from Wyoming’s Powder River Basin, the coal field that also supplies many Wisconsin power plants.1
In the New York Times story, an executive from Peabody Energy, the world’s largest private coal company, predicted that his company will send larger and larger quantities of coal to China in the coming years.
Further adding to the upward price pressure on coal is the rising cost of diesel fuel. The PSC has estimated that half of the delivered cost of coal in Wisconsin is attributable to rail shipment, that is highly sensitive to the price of diesel fuel, which sells for 38 cents more per gallon than it did a year ago, according to the U.S. Energy Information Administration.2 Tom Whipple, editor of the Peak Oil Review, expects diesel fuel supplies to tighten in 2011 as a consequence of flat production volumes and increasing demand from Asia.3 This phenomenon could affect Wisconsin electric utility rates as early as January 2011, according to Vickerman.
We Energies’ coal costs have escalated by $57 million, of which transportation costs account for almost $33 million, according to the utility’s most recent rate filing with the PSC. On top of that, We Energies expects to pay an additional $8 million in oil surcharge costs.4
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by jboullion | Dec 1, 2010 | Uncategorized
It could take 18 months to complete a study of possible high-speed passenger rail routes to connect Milwaukee and Minneapolis-St. Paul, but a preferred route could be indicated by the end of 2011.
Dan Krom, passenger rail director for the Minnesota Department of Transportation, said he had hoped a preferred route would be indicated by spring 2011, but Federal Railroad Administration officials want more time to review and comment on the work being done.
Krom and Charles Quandel, CEO of Quandel Consultants LLC in Chicago, fielded most of the questions and comments at a public meeting Tuesday night that drew nearly 200 people to the Best Western Riverfront Hotel in La Crosse.
It was the second in a series of public meetings in Minnesota and Wisconsin on the study.
Most of the comments Tuesday were in the form of questions, but some people spoke about the advantages of high-speed rail service while others appeared skeptical due to concerns about costs.
Some questioned what might happen to the study in view of Wisconsin Gov.-elect Scott Walker’s pledge to reject federal stimulus money for a line between Milwaukee and Madison. The
federal government in February contributed $600,000 for the study, with Minnesota and Wisconsin each contributing $300,000. The federal grant is being administered by the Minnesota DOT.
Minnesota is committed to moving forward, Krom said, and made the Chicago connection the top priority in its recently completed state rail plan.
by jboullion | Nov 30, 2010 | Uncategorized
From an article by Tom Content in the Milwaukee Journal Sentinel:
Xcel Energy Inc. on Monday halted plans to build a biomass power plant on Lake Superior in Ashland.
The utility holding company’s Eau Claire-based utility informed the state Public Service Commission of its decision in a letter Monday.
Xcel had planned to build a biomass gasification plant that would have made the Ashland power plant the largest wood-burning power plant in the Midwest.
The decision came as a result of a significant increase in the cost of the project, as well as declining costs for other generation options. The utility also cited “considerable regulatory uncertainty at the state and federal level.”
The announcement was made one day before the start of Public Service Commission hearings on a separate biomass power plant, proposed by Milwaukee-based We Energies to be built at the Domtar paper mill in Rothschild.
The timing of the announcement was coincidental and not linked to the We Energies proposal, said David Donovan, Xcel manager of regulatory policy.
“Although we are disappointed with the outcome, we have gained considerable value from the evaluation that we have completed,” said Mike Swenson, president and chief executive of NSP-Wisconsin, a unit of Xcel Energy, in a statement.
“The engineering studies will advance gasifier technologies for utility applications and our efforts to procure sustainable biomass supplies have resulted in a model that can be adopted in future projects,” Swenson said. “In addition, as part of this project we helped fund the development of two biomass energy plantations in northern Wisconsin, which will provide valuable research and study opportunities for decades to come.”
Those plantations are testing the development of hybrid poplar and black willow trees for harvesting and burning at the power plant.
by jboullion | Nov 22, 2010 | Uncategorized
From an article by Pat Eggert in The Dunn County News:
A lot is going on in sustainability here, and 50 local residents gathered Thursday at the First Congregational UCC Church in Menomonie to learn more about what is happening.
Linda Walsh, member of the steering committee of Sustainable Dunn, introduced panelists from the city, county and UW-Stout who reported on recent efforts.
“I think that sustainability is the most important area in which we participate,” Dunn County Board chair Steve Rasmussen told the group. “The County Board endorses sustainability, engages in it and tasked our staff to come up with a sustainability action plan. It was one of my priorities when I was first elected chair.”
“We’re very fortunate that the County Board has supported us,” Dunn County Planner Bob Colson told the group.
Plan of action
Some of the elements of the county plan are an eco-county resolution, a sustainability action plan charter, and a sustainability action plan, Colson said. The county approach has been to complete an internal process first.
An action plan, adopted in February of 2010, covers purchasing, energy, education and public policies.
by jboullion | Nov 17, 2010 | Uncategorized
Join us as we tell Scott Walker that Wisconsin can’t afford to say NO over $800 million dollars in federal grant funds for this project, 9,570 permanent jobs, and increased property values.
WHEN: Saturday, November 20, NOON
WHERE: Phoenix Park, Riverfront Terrace & S. Barstow St, Eau Claire, WI
Speakers include Sen. Kathleen Vinehout (invited); Jeremy Gragert (UW Eau Claire graduate); Representative, West Central Rail Coalition (invited). More details.
If we want to save this train, we need to speak up now! Join us as we tell Scott Walker that Wisconsin can’t afford to say NO over $800 million dollars in federal grant funds for this project, 9,570 permanent jobs, and increased property values. Let’s extend the popular Hiawatha service connecting Chicago and Milwaukee. Let’s create a safe, convenient efficient way to travel throughout the Midwest. We can make a difference, IF we stand together. Please attend and bring a friend!
