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Renewable Energy Highlights of 200629 December 2006The year 2006 was productive for the Interwest Energy Alliance and its members in the renewable energy industry and non-governmental organizations. New renewable energy projects totaling over 150 megawatts went online throughout Arizona, Colorado, Nevada, New Mexico, Utah and Wyoming in 2006, and 2007 is expected to be a record-setting year, with at least 850 megawatts of new renewable energy capacity going with online with new wind, solar and geothermal power plants. Ten of the year’s top renewable energy stories from the West are summarized here, ranging from region-wide efforts to expand transmission for renewable energy to a look at how climate change issues are beginning to drive new policies throughout the region. Renewable energy enjoyed bipartisan support in 2006: President Bush said wind energy has the potential to meet up to 20% of the nation’s electricity needs, while Colorado’s Democratic Governor-elect Bill Ritter campaigned on a “new energy economy” platform. This list of highlights is also available in Adobe PDF or Repligo formats. Top Stories of 2006
Western Governors Adopt Clean-Energy Report; Stakeholders begin Implementation Planning on Transmission Recommendations
Immediately following the WGA’s adoption of the report, stakeholder leaders began working to implement its recommendations, starting with a July Western Transmission Forum in Denver, hosted jointly by the WGA and the National Wind Coordinating Committee. Cosponsored by the Interwest Energy Alliance, this forum brought together over 150 stakeholder leaders who endorsed action plans and strategies on how best to implement the WGA’s wind energy and transmission recommendations. Representing Governors, legislators, wind developers, environmentalists, utilities, independent transmission operators, and many others, the forum’s participants agreed to develop strategies on a number of key action plans, including:
Recommendations on using the existing grid more efficiently included:
Recommendations on expanding the transmission system included:
This conference is one of the first times that recommendations from a WGA task force have been followed up with such aggressive implementation plans from a broad range of stakeholders. A follow-up review meeting by the conference’s leadership council was held in November.
Arizona Passes Renewable Energy Standard and Tariff
Among the rule’s provisions that the Interwest Energy Alliance supported are: competition among renewable energy resources, requirements for annual implementation and compliance plans, a simplified rule, and enforcement provisions.
Tri-State Pursues New Coal Plants, Faces Rebuff by Member CoopThe year 2006 was eventful in regional policy issues relating to rural electric cooperatives, especially members of Tri-State Generation and Transmission Association, the Denver-based supplier of electric power to 44 member coops in Colorado, Nebraska, New Mexico and Wyoming. In 2006, Tri-State pursued plans to spend $5 billion on new coal plants in Kansas and Colorado, and in a late-year announcement, Colorado’s Delta-Montrose Electric Association announced its decision not to sign a contract extension with Tri-State. DMEA votes not to sign Tri-State contract extensionOn 19 December, the Delta-Montrose Electric Association’s Board of Directors voted not to sign an all-requirements contract extension with Tri-State. In a statement on DMEA’s decision, board president Les Renfrow said: “this is our best chance to reduce the immense flow of money that leaves our two counties each month bound for distant power plants. This is our best chance to support our local industries by using their waste wood, coal-mine methane and dairy manure to generate electricity and create jobs and income here.” Renfrow added, “Currently Tri-State is going down a path of constructing increasingly expensive, massive coal fired power plants with an estimated price tag of $5 billion. In a world of increasing pressure on carbon emissions, new technologies that can save large amounts of electricity, and declining renewable energy costs trends, we see Tri-State’s path as extremely risky.” DMEA notes that “[m]uch of the perceived need for additional, costly coal-fired power plants is being driven by the very profitable natural gas industry. Large electric powered compressors used to transport natural gas from the Rockies to lucrative east and west coast markets are driving a large component of the planned new electric generating capacity by Tri-State. DMEA does not feel it equitable for residential, small commercial and other rate payers to bear the cost of developing electric generating capacity for the very profitable natural gas industry. The natural gas industry should bear the cost and risk of generating the power they require.” “We’ve been encouraging Tri-State to allow its member -owner cooperatives more flexibility to develop local power generation from renewable sources, to pursue a greater mix of renewable energy resources, and to aggressively promote energy efficiency programs. If Tri-State would agree to follow the reasonable path we’re asking for, we’d gladly extend our contract with them through the mid-part of this century, as they have requested. The DMEA Board remains open to working with Tri-State in the hope of finding common ground.” [From DMEA press release of 22 December 2006]
Tri-State’s proposed coal plants questionedIn 2006, Tri-State proposed to build two new 700-megawatt coal-fired power plants near an existing 360MW plant owned by Sunflower Electric Power Corp. in Holcomb, Kansas. If approved, the new plants would go online beginning in 2012. Tri-State says the proposed new plants are needed to meet increased power consumption demands in Kansas and other states where it does business. Tri-State also hopes to build another 700MW plant in southeastern Colorado and is working to acquire extensive water rights for its projects in that region. Meanwhile, a December report issued by Western Resource Advocates (WRA) says that Tri-State’s proposed $5 expenditure on the coal plants and transmission lines is “unnecessary.” The report’s author Rick Gilliam says that “wholesale rates will jump by at least 64 percent over the next five years, according to Tri-State’s own figures and WRA’s analysis.” New Mexico energy policy task force works to engage Tri-State and coopsThe “New Energy New Mexico” state energy policy task force, established by a 2005 legislative memorial, conducted five meetings around New Mexico in 2006 under the auspices of Governor Bill Richardson and the Energy, Minerals and Natural Resources Department. Task force members included representatives from rural electric coops, Tri-State, municipal, county and state government officials, industry, renewable energy advocates and consumer advocates. The task force’s mission was to find opportunities and provide legislative recommendations for advancing public-private partnerships focused on renewable energy technologies and the production of renewable energy in rural coop territories. The overall goal was to find ways that rural coops could implement more renewable energy projects, “quickly,” in New Mexico. The task force’s consensus recommendations included:
The task force’s final report has been submitted to Governor Bill Richardson and New Mexico Secretary of Energy, Minerals and Natural Resources Joanna Prokup.
Policymakers Focus on Renewables in 2006
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At
the June 2006 annual meeting of the Western Governors’
Association (WGA) in Sedona, Ariz., Western governors
backed a package of policy recommendations made by the
WGA’s Clean and Diversified Energy Advisory Committee (CDEAC).
Culminating two years of work by that committee and
eight task forces, the recommendations were designed to
develop an additional 30,000 megawatts of clean energy
in the West by 2015; increase energy efficiency 20
percent by 2020; and ensure “secure, reliable
transmission” for the next 25 years. The impetus for
this process began with a 2004 WGA resolution by
Governors Bill Richardson (D-N.M.) and Arnold
Schwarzenegger (R-Calif.).
After
more than two years of work, on 31 October the Arizona
Corporation Commission passed a new Renewable Energy
Standard and Tariff (“REST”). The new standard requires
regulated utilities to derive an increasing amount of
their electricity from renewable energy resource until
they reach the level of 15% by 2025 (with threshold
levels of 2.5% by 2010, 5% by 2015, 10% by 2020 & 15% by
2025). The standard requires that 30% of the energy come
from distributed resources and 15% of the distributed
resources be located on customers’ facilities (homes and
businesses). 
Sen.
Salazar Sponsors Renewable Energy Summit
Bush
endorses renewable energy in NREL visit; extends
renewable energy tax credit|
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On 28 February, Arizona Governor Janet Napolitano and New Mexico Governor Bill Richardson signed an agreement launching the Southwest Climate Change Initiative.
Under the initiative, Arizona and New Mexico will collaborate on a number of actions designed to fight climate change, including “development of consistent approaches for measuring, forecasting and reporting greenhouse gas emissions; giving credit for greenhouse gas reduction actions; identifying options for reducing greenhouse gas emissions; promoting climate change mitigation actions, energy efficient technologies and clean and renewable energy sources that enhance economic growth; and advocating for regional and national climate policies that reflect the needs and interests of Southwestern states.”
“In the Southwest, water is absolutely essential to our quality of life and our economy,” said Governor Richardson. “Addressing climate change now, before it is too late, is the responsible thing to do to protect our water supplies for future generations.”
Xcel Energy CEO calls for mandatory greenhouse gas limits
Speaking to Western Resource Advocates in Boulder, Colo. on 10 November, Xcel Energy CEO Richard Kelly called for mandatory national standards for reducing greenhouse gas emissions, saying “this has been something I personally feel very strong about.”
PNM urges Congress to act now on climate change
The president and chairman of PNM Resources, Jeff Sterba, told the Albuquerque Tribune on 15 December that federal action is needed to address the issue of climate change, adding that “The sooner you start to make changes, the less draconian the changes will be…industry needs to know the rules of the road ahead for future investments in plants and technology.”
New Mexico climate task force releases final report
The New Mexico Climate Change Advisory Group, established on 5 June 2005 by Governor Bill Richardson’s executive order, issued its final report on 1 December 2006. The group’s final report includes many recommendations on implementation of new energy efficiency and renewable energy technologies, along with new transportation and forest management options.
Arizona Governor empanels executive-level climate change committee
After receiving a report from her Climate Change Advisory Group on 7 September, Arizona Governor Janet Napolitano issued an executive order establishing a statewide goal to reduce Arizona’s future GHG emissions to the 2000 emissions level by the year 2020, and to 50% below the 2000 level by 2040. Napolitano’s order also creates a Climate Change Executive Committee that will be to develop a strategy to implement the recommendations in the Action Plan and to explore ways to meet Governor Napolitano’s challenge of reaching the 2000 emissions level ahead of schedule by 2012.
“Implementing these recommendations [of the Climate Change Advisory Group] should cut our demand for energy by increasing energy efficiency, and improve air quality, all the while saving Arizonans money though reduced fuel costs and lower electricity bills,” said Napolitano. “Developing Arizona’s renewable energy sources, such as solar, biomass, biofuels, wind and geothermal will help us reach these goals, and at the same time, create jobs. It’s a win-win for all of us.”
Non-governmental climate change task force established in Colorado
In November, the Rocky Mountain Climate Organization convened the Colorado Climate Action Project, involving participants representing a broad range of stakeholders. The Colorado Climate Action Panel is charged with developing recommendations to reduce Colorado’s contribution and vulnerability to climate change. It is structured in a similar manner, and has similar goals, as state climate task forces empanelled in Arizona and New Mexico by Governors Janet Napolitano and Bill Richardson, respectively.
Boulder passes nation’s first carbon tax
On Election Day 2006, Boulder, Colorado voters approved a “Climate Action Plan” tax, making Boulder the nation’s first municipal government to impose an energy tax on its residents to directly combat global warming. The tax will be collected by Boulder’s electric utility, Xcel Energy, based on the amount of electricity used. Funds collected under this plan will go toward new Climate Action Plan programs, such as helping businesses obtain Xcel Energy rebates for purchases of energy-efficient hardware, performing energy audits to help people understand how they can save energy, and assisting low-income citizens by distributing energy efficiency kits.
Colorado’s largest coop criticized for boosting climate-change skeptic
Intermountain Rural Electric Association (“IREA”), based in Sedalia, Colo., is one of the nation’s largest rural electric coops, and has opposed a number of state and federal renewable energy initiatives, touting coal as the best fuel for power generation. In July, IREA found itself in the national spotlight, as media outlets reported that the coop contributed $100,000 to global warming skeptic, Patrick Michaels, a professor of environmental sciences at the University of Virginia.
- “Utilities Give Warming Skeptic Big Bucks”
- Intermountain Rural Electric Association
- “IREA Voices,” a new grassroots group of IREA members
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Transmission Expansion Explored in Venues Throughout the West
The critical importance of a modern, reliable and cost-effective regional transmission system was underscored in 2006 by the many utilities and governmental and non-governmental organizations that pursued transmission expansion projects large and small throughout the West.
Ranging from a state task force in Colorado to region-wide transmission planning groups, stakeholders examined the viability of “wind-only” transmission lines, expansion of existing lines and a variety of policy options designed to get the best use of the region’s existing transmission infrastructure.
Colorado transmission task force examines state’s transmission needs
The Colorado state transmission task force, empanelled by HB 06-1325 to provide legislative recommendations for enhancing the state’s transmission infrastructure, produced a final report on 1 November. Representing stakeholders from a wide range of industry, governmental and non-governmental interests, the task force issued five recommendations in its final report:
- [Endorsement of] Transmission Cost Recovery Rider
- Identify Renewable Generation Resource Development Areas (RGRDA)
- [Promote] Governmental involvement with organizations like the Colorado Coordinated Planning Group
- Appropriate adequate funding for the Public Utilities Commission to actively participate in regional electricity transmission planning, reliability and regulatory forums
- [Address] Critical shortage in the electric utility industry of specialized and highly trained workers
New Mexico Renewable Energy Transmission Authority
In a pre-session 13 January policy statement outlining his administration’s environmental and energy initiatives for the 2006 legislature, Governor Bill Richardson put a Renewable Energy Transmission Authority at the top of his legislative agenda. Subsequently, legislation to create a New Mexico Renewable Energy Transmission Authority was defeated in a last-minute filibuster as the New Mexico legislature rushed to adjourn its short session on 16 February.
New legislation to create a Renewable Energy Transmission Authority is expected to be introduced during the 2007 session of the New Mexico legislature.
- Governor Richardson’s pre-session comments on the Renewable Energy Transmission Authority
- Interwest press release on HB 111 and SB 317 to create a Renewable Energy Transmission Authority
Wyoming-Colorado TOT3 expansion: upgrade could be “wind-only” line
At the 13 April meeting of the Colorado Coordinated Planning Group (the joint transmission planning forum among Colorado’s utilities), TransElect (project contractor for the Wyoming Infrastructure Authority) provided an update on issues related to the upgrade of the TOT3 constraint between Colorado and Wyoming, noting that there was great interest from wind energy developers in this line’s expansion. In fact, TransElect reported that it appears this line could be justified carrying only wind, and that adding coal later would be a “bonus.”
Also at this April meeting, Xcel Energy reported that Xcel’s northern Colorado wind resources were adding great value by providing substantial production during winter nights, when Xcel would otherwise be challenged to keep gas nominations and deliveries balanced at reasonable cost for heating customers and electric projection, given their tight gas storage situation.
SunZia Southwest Transmission Project: Interested parties sought
Expressions of interest in the proposed SunZia Southwest Transmission Project are sought by 15 January 2007. For more details, contact Jessica Munoz at JMunoz@southwesternpower.com.
Proposed TransWest Express and Frontier Transmission Lines
Interwest and its partner organization, West Wind Wires, along with many of our members, have been closely following and taking part in the many meetings throughout the West in 2006 related to the proposed TransWest Express and Frontier Line transmission expansion projects stretching from Wyoming to markets in California and Arizona.
With California’s enactment this year of new laws requiring a 25% greenhouse gas reduction by 2020 and specifying that imported power meet the state greenhouse gas performance standard, California has effectively barred its investor-owned utilities from buying new coal power. This may encourage the ongoing Frontier and TransWest feasibility studies to evaluate renewables-only transmission among their alternatives. We will continue to follow this, along with many other issues related to these projects, in the coming year.
Westerners Spitzer and Wellinghoff Assume FERC Seats
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Two western supporters of renewable energy assumed seats on the Federal Energy Regulatory Commission (FERC) in 2006: Republican Arizona Corporation Commissioner Marc Spitzer and Democratic consumer advocate Jon Wellinghoff of Nevada. These two new FERC Commissioners were key players in their respective states’ renewable energy standards, and both have a deep knowledge of renewable energy technologies and the need for appropriate transmission development. |
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New Renewable Projects Under Construction Throughout the West; New Website Maps Regional Projects
Work began in 2006 on wind energy projects totaling more than 800 megawatts in the West, along with the nation’s largest solar energy plant: the eight-megawatt SunEdison solar power plant near Alamosa, Colorado, utilizing two solar technologies; concentrating photovoltaic and advanced flat-plate solar panel units. Together with new geothermal projects in Nevada, when all these power plants are finished, 2007 will be a record-setting year for new project development in the region.
Work on these wind and solar projects will create hundreds of construction jobs and many permanent jobs throughout the West, almost all of which will be in rural areas.
Interwest
launches project locator map
In December, the Interwest Energy Alliance launched a newly redesigned website featuring an innovative new western renewable energy project locator map showing wind, solar, geothermal and biomass energy projects in Arizona, Colorado, Nevada, New Mexico, Utah and Wyoming. The website’s new project locator map is integrated with Google Maps and shows wind, solar, geothermal and biomass electricity projects throughout the region. With this innovative mapping approach, users can choose to display projects by specific energy technology. As with all Google Maps, users can zoom in on a specific area or drag the map to a specific destination, as well as choose a satellite view of the region.
Xcel Energy Begins Asserting National Lead on Renewable Energy Acquisitions
At the end of 2005, Xcel Energy announced its planned acquisition of 775 megawatts of new wind energy projects in Colorado. Representing an investment of over one billion dollars in the state’s rural areas, these projects will help Xcel Energy become one of the nation’s largest consumers of wind energy once these plants are operational in 2007.
“Xcel Energy steps up to the plate on renewable energy”
Supporters of Amendment 37, the Renewable Energy Standard passed by voters in 2004, lauded Xcel Energy for its commitment to renewable energy. “The voters asked for more renewable energy and Xcel Energy stepped up to the plate,” said Matt Baker the Executive Director of Environment Colorado, “Xcel is on track to meet the goals of Amendment 37 eight years early.”
- Environment Colorado press release of 10 October 2006 on Xcel’s commitment to renewable energy
- Xcel Energy’s Solar*Rewards program
Interwest projects consumer cost savings of over $250 million due to cost stability of wind energy
An August by the Interwest Energy Alliance reports that consumers will save more than $251 million because of Xcel Energy’s current fleet of wind plants over the coming two decades. The study further concludes that consumers could have saved another $186 million had Xcel been able to invest in more wind during three recent bidding cycles. However, Interwest emphasized that in order to harness the tremendous potential for wind power —and reap its multifaceted benefits— much-needed electric transmission infrastructure must be developed to bring wind-generated electricity to load centers.
Regional Conferences in 2006 Focus on Clean and Renewable Energy
Though there were many conferences held throughout the year, the following three conferences, held in Colorado, Arizona and Nevada, demonstrate tremendous region-wide interest in clean renewable energy technologies by the broadest possible range of stakeholders, both in terms of constituencies represented at these conferences as well as their broad geographic reach.
First Annual Intermountain Harvesting Energy Summit
The Interwest Energy Alliance was a “network partner” of the first annual Intermountain Harvesting Energy Summit in Loveland, Colo., chaired by former State House Speaker Lola Spradley and U.S. Rep. Mark Udall. This two-day summit brought together over 200 leaders from agriculture, business, finance, academia, government, and advocacy organizations from Arizona, Colorado, Kansas, Nevada, New Mexico, Utah and Wyoming to discuss how renewable energy and energy efficiency can enhance farm income and revitalize rural communities.
A number of participants held follow-up meetings in their home states, and the second annual Intermountain Harvesting Energy Summit is scheduled for 26-28 February in Salt Lake City, Utah.
Southwest Renewable Energy Conference held in Flagstaff
The Southwest Renewable Energy Conference in Flagstaff, Arizona, cosponsored by the Interwest Energy Alliance, was successful again in 2006. Attracting about 150 people from around the region, this annual event dealt with various aspects of renewable energy issues in the Southwest, including integration, markets, tribal energy and financing.
Nevada wind workshop attracts large crowd
Nevada’s first statewide wind energy workshop took place in Reno on 26 and 27 July, followed by a National Wind Coordinating Committee (NWCC) Wind Power and Radar Issue Forum. Over 160 people took part in the workshop, which provided an excellent introduction to wind energy for many key Nevadans.
Following the Nevada Wind Workshop, the NWCC radar forum provided important information on the United States military’s radar and flight training zones.
Who is the Interwest Energy Alliance?
The Interwest Energy Alliance is a trade association that brings together the nation’s leading renewable energy companies and the region’s leading non-governmental advocacy groups, facilitating a consensus-based approach to new project development and transmission siting for clean, abundant energy throughout the West.
The Interwest Energy Alliance works closely with West Wind Wires (“WWW”). WWW works to expand transmission access for wind in the Western Interconnection, and to help utilities understand the value of wind as a generating resource. WWW represents wind interests in regional transmission forums, WAPA, BPA and state commission proceedings, and before utility groups. The sooner more renewable energy technologies can be brought to market through new project development, transmission upgrades and supportive public policies at the state and federal levels, the sooner America’s consumers will begin enjoying the benefits of these cost-stable, clean, domestic energy resources.
The Interwest Energy Alliance looks forward to working with its many members, partners and friends to continue pursuing common goals and building new markets for clean, renewable energy technologies throughout the West in 2007.
Interwest Energy Alliance
Craig Cox, Executive Director
P.O. Box 272
Conifer, Colorado 80433
303-679-9331
cox@interwest.org
www.interwest.org
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