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Western Clean Energy Year in Review: 2007From policy development to project development, 2007 was a productive year for the West’s clean energy industry. Over 850 megawatts of wind and utility-scale solar projects came online throughout the region last year, and more projects are in the works. Some of the region’s key legislation that was signed into law in 2007 facilitated transmission expansion for renewable energy projects. Meanwhile, Colorado and New Mexico doubled their state renewable energy standards. Utah created a renewable energy tax credit, while Arizona began implementing its new 15% renewable energy standard. Colorado and New Mexico created state infrastructure authorities in 2007, joining Wyoming, which pioneered the concept in 2004. These infrastructure authorities offer the potential for creating significant transmission capacity to export these states’ abundant renewable energy resources to markets around the West. These and other activities are summarized below and show that the West is well positioned to build on these tremendous accomplishments in 2008.
Contents:
Priority legislation passed into law in Colorado, New Mexico and Utah Legislatures in Colorado, New Mexico and Utah passed important legislation into law in 2007. These new laws, signed by Governors Bill Ritter (Colorado), Bill Richardson (New Mexico) and Jon Huntsman (Utah) created market certainty for the clean energy industry by increasing existing renewable energy standards (in Colorado and New Mexico), facilitating utility investments in new transmission capacity (in Colorado), creating new state infrastructure authorities (in Colorado and New Mexico) and providing tax incentives (in Colorado, New Mexico and Utah). Governors and legislators in all six Interwest states (Arizona, Colorado, Nevada, New Mexico, Utah and Wyoming) emphasized their support for clean, renewable energy development. All of Interwest’s top legislative priorities in Colorado, New Mexico and Utah were signed into law in 2007:
For more information on each state's measures, visit:
For information on regulatory implementation activities related to Colorado SB 100 (transmission expansion), visit:
Colorado’s “New Energy Economy” Gathers Steam Elected in the 2006 general election by a 57-40% margin on a platform that emphasized a “new energy economy,” Colorado Governor Bill Ritter (D) made this campaign vow a reality throughout 2007 by announcing a number of clean energy initiatives in his inaugural “State of the State” speech in January. Throughout the year, Ritter attended groundbreaking and ribbon-cutting ceremonies for clean energy projects throughout the state, including several large wind and solar energy projects, as well as the first North American plant of the world’s leading wind turbine manufacturer, Vestas, in Windsor, Colo. When completed in 2008, the Vestas manufacturing plant will employ over 650 permanent, full-time workers, producing wind turbine blades for the rapidly growing wind energy market. In 2007, Gov. Ritter signed a number of key bills into law, including SB 100 (transmission expansion), HB 1281 (doubling the state’s RPS), HB 1279 (sales tax exemption for renewable energy equipment) and HB 1150 (creating the Colorado Clean Energy Development Authority), all of which are detailed above. Another important bill that Ritter signed into law in
2007 was SB 91, which created a 16-member
task force appointed by the Governor and legislative
leadership. This task force brought together
representatives from utilities, the renewable energy
community and other stakeholder groups to produce a
report identifying renewable energy resources in the
electricity sector that will advance Colorado to a New
Energy Economy. Submitted to Governor Ritter and the Colorado General
Assembly on 21 December, the task force’s
final report (entitled “Connecting Colorado’s
Renewable Resources to the Markets”) shows that Colorado
has 96 gigawatts (GW) of wind capacity in the Eastern
Plains, and a combined solar capacity of 26 GW in
southern Colorado.
The Colorado General Assembly passed many other “new energy economy” bills in the 2007 session, including:
The Western Governors' Association is a leader in convening stakeholder parties on key regional transmission issues, and is actively pursuing work related to regional energy and wildlife corridors, as well as the possible establishment of Western Renewable Energy Zones similar to state-based zones in Texas, Colorado and other states.
Western Renewables Transmission Summit: Creating a region-wide export market for clean power Highlighting the year’s transmission agenda was a September summit in Fort Collins, Colorado, that brought together Governors Bill Ritter (Colo.) and Dave Freudenthal (Wyo.), and top executives from such entities as Xcel Energy, Public Service Co. of New Mexico (PNM), the California ISO and the Federal Energy Regulatory Commission (FERC). Attended by over 200 stakeholder leaders from the wind, solar and geothermal industries, this summit, entitled “Increasing Renewable Energy in the Western Grid,” laid the groundwork for further progress in developing interstate transmission facilities that will bring the benefits of clean, renewable energy to more people every year. This summit was cosponsored by the National Wind Coordinating Collaborative (NWCC), the Western Governors’ Association (WGA) and the Geothermal Energy Association (GEA). View the video highlights from September’s Renewable Transmission Summit
Western wind and solar integration study underway The U.S. Department of Energy and the National Renewable Energy Laboratory (NREL) are conducting a region-wide Wind and Solar Integration Study, which is examining the operating impacts and mitigation options due to the variability and uncertainty of wind and solar power on the utility grids for several states in the West. This is the largest regional wind integration study undertaken to date. This study will address issues such as:
This study will investigate significant penetrations of wind and solar on the grid, in line with the Western Governor’s Clean and Diversified Energy Initiative of 30 GW clean energy by 2015 and the President’s Advanced Energy Initiative that says wind can supply up to 20% of U.S. electricity consumption. Other key sites of interest:
State infrastructure authorities created in 2007 and get to work With the creation of state infrastructure authorities in Colorado and New Mexico in 2007 (through the passage into law of Colorado HB 1150 and New Mexico HB 188), these states, along with Wyoming, now have quasi-governmental entities that will help facilitate interstate transmission and export of renewable power throughout the West. Rich in wind and solar resources, these state infrastructure authorities will help make possible further development of renewable resources through their bonding authority, their work with state agencies and their collaboration with local communities, companies and industry groups. Encouragingly, all three of these infrastructure authorities have shown a willingness to cooperate pro-actively with each other to build a truly region-wide, interstate market for their states’ wind and solar energy resources. Key links of interest:
Climate change threat continues to highlight importance of diversifying western energy portfolio Kansas denies air quality permits for proposed Holcomb coal plants On 18 October, Kansas Secretary for Health and the Environment Rod Bremby denied air quality permits sought by Tri-State Generation and Transmission Association for its two proposed new 700 MW coal plants near Holcomb, Kansas (see a brief discussion of these proposed plants in Interwest’s 2006 highlights), based primarily on the carbon dioxide emissions these plants would create. This decision, which Tri-State is now appealing, highlights the increasing attention that the West’s leaders are giving to climate-related issues, underscoring the importance of diversifying the region’s energy portfolio as part of the transition to a modern, low-carbon energy infrastructure.
Colorado Climate Change Initiative On 5 November, Colorado Governor Bill Ritter announced the state’s first Climate Action Plan, which includes an agricultural carbon sequestration and offset program and establishes two greenhouse-gas reduction goals: 20% below 2005 levels by 2020 and 80% by 2050. In addition, Ritter vowed to move toward “clean car” standards, work toward emission-reporting requirements for major greenhouse gas producers, increase energy-efficiency programs, expand renewable energy opportunities and Adopt energy-efficiency programs to reduce the demand for electrical energy and to partner with research institutions and industry to develop clean-coal technologies.
Utah climate change task force completes work Utah’s Blue Ribbon Advisory Council (BRAC) on Climate Change formally presented its final report to Governor Jon M. Huntsman, Jr. on 9 November. Established by Gov. Huntsman in August 2006, the BRAC’s broad, stakeholder based membership provided a forum where government, industry, environment and community representatives could identify proactive measures that Utah might take to mitigate the impacts of greenhouse gases. Governor Huntsman provided the following charge to the BRAC:
The BRAC’s final report contained recommendations in five key sectors: Agriculture/Forestry; Cross-Cutting Issues; Energy Supply; Residential/Commercial/Industrial; and Transportation/Land Use. In the Energy Supply sector, the BRAC recommended that the Governor and the legislature consider the following options to reduce greenhouse gas emissions in Utah: Develop significant amounts of renewable energy
resources
Encourage carbon capture and sequestration technology
Develop and deploy advanced generation technology
Improve efficiency and reduce CO at existing electricity generation plants through
Promote combined heat and power distributed generation using incentives and removing institutional and other barriers
Improve efficiency of electric transmission and distribution systems by
Miscellaneous energy supply options
Solar is a sizzling western energy resource Solar plants commissioned
In Nevada, Nevada Power has a long-term contract to buy the power generated by Nevada Solar One, located south of Las Vegas near Boulder City, Nevada. This 64 megawatt power plant, developed by Acciona Solar Power, is the largest solar plant to be developed anywhere in the world in the past 15 years. Also in Nevada, on 17 December the country’s largest solar photovoltaic system was completed at Nellis Air Force Base. A joint project of the U.S. Air Force, MMA Renewable Ventures, LLC, SunPower Corporation and Nevada Power Company, the 14 megawatt Nellis solar energy system will generate more than 30 million kilowatt-hours (kWh) of clean electricity annually and supply approximately 25 percent of the total power used at the base, where 12,000 people live and work. In Colorado, the new 8.2 MW SunEdison utility-scale photovoltaics (PV) power plant near Alamosa went fully online in December.
Solar manufacturing plant announced On 13 December, Ausra Inc., developer of utility-scale solar thermal power, announced it is building the first U.S. manufacturing plant for solar thermal power systems in Las Vegas, Nevada. The 130,000-square-foot, highly automated manufacturing and distribution center will produce the reflectors, towers, absorber tubes, and other key components of the company’s solar thermal power plants. The factory will be capable of making over 700 megawatts of solar collectors per year and is expected to employ up to 50 highly skilled manufacturing workers in the Las Vegas area.
Regional utilities issue 250 MW Solar RFP A multi-state consortium of southwestern energy service providers (Arizona Electric Power Cooperative, Arizona Public Service, Southern California Public Power Authority, Salt River Project, Tucson Electric Power, and Xcel Energy) is issuing a Request for Proposal (RFP) for a utility-scale concentrating solar power plant. The plant would be owned by a third-party with consortium members each signing long-term purchase power agreements. The size, design and location of the new solar project will be determined by the RFP submissions. It is expected to produce 250 megawatts and be located in either Arizona or Nevada. When completed, it would be the largest solar power plant in either state. A concentrating solar plant uses the sun to heat a liquid that can directly or indirectly drive a turbine.
Renewable energy seen as “hedge” in Arizona’s energy
portfolio
Judge directs APS to purchase more renewables as hedge In May, an Administrative Law Judge released a Recommended Opinion and Order (ROO) in the APS rate case. The judge’s recommendations nudge APS toward procuring more renewable energy resources through several measures, including:
Conclusion of APS wind integration study In July 2007, Northern Arizona University, under a contract with APS, completed its Wind Integration Study. The study determined that the integration cost of various wind penetration rates are in line with studies performed by other utilities and ten times less than the costs ascribed by APS to wind projects in the last RFP process. The findings of the study show that APS’ costs are in line with costs in other regions.
Utah stakeholder group reports on renewable energy policy options The state-appointed Utah Renewable Energy Initiative (REI) conducted a four month-long study of proposed renewable energy policies. Involving numerous stakeholder parties representing a broad range of sectors, the REI completed its final report on 17 October, presenting an evaluation of an RPS as an option with other complimentary incentive policies to drive renewable energy in Utah. Rocky Mountain Power (PacifiCorp) issued a statement of principles outlining its support for soft indicative targets for cost-effective, no-carbon or low-carbon energy resources, and also called for exemption from competitive bidding requirements for renewable projects of up to 300MW. Observers hope that RMP’s statement of principles can be adapted to be acceptable to all stakeholder parties in Utah. Stakeholders are also looking forward to potential legislation in the 2008 Utah legislature that would provide new incentives for renewable energy generation in the state, along with legislation creating renewable energy zones in Utah, similar to what has been done in Texas and Colorado.
Nevada examines energy options At the Nevada Clean Energy Summit in Reno on 18 August, Senate Majority Leader Harry Reid (D-Nev.) continued his strong words in opposition to new coal plants, saying “I’m going to do everything I can to stop these plants [proposed for eastern Nevada]. There is no clean coal technology. There is cleaner coal technology, but there is no clean coal technology.” In place of the coal plants, Reid reiterated his call for greater investment in renewable energy technologies, saying that “Fifty percent of the power comes from outside the state of Nevada, even though we have fuel shining on us every day: the sun.” In September, Sen. Reid introduced S. 2076, which designates geographical areas as National Renewable Energy Zones similar to the Texas SB 20 model. Reid's bill calls on the President to designate geographical areas as National Renewable Energy Zones. This bill would help overcome the "chicken and egg" problem hindering investments in transmission for new wind and renewable energy development in the United States.
PSC examines IRP The Wyoming Public Service Commission has decided to fortify its Integrated Resource Planning (IRP) process for Wyoming utilities and held a technical conference on the issue in early December. This conference focused on current and historic practices, impact of IRP proceedings in other states on Wyoming consumers, trends and developments in IRP requirements and practices in other states, the experiences of utilities and other interested parties with the IRP processes utilized in other jurisdictions, and potential revision of PSC practices. As a follow-up to this technical conference, the Wyoming PSC has established an IRP listserv, as well as an IRP section on the Wyoming PSC website. The PSC hopes to continue pursuing the IRP issue with an eye toward implementing a decision in 2008, and is seeking comments by 11 January 2008 for initial comments on IRP, with a deadline of 25 January 2008 for reply comments. Rocky Mountain Power Wyoming rate case Interwest is an intervenor in Rocky Mountain Power’s (PacifiCorp’s) Wyoming rate case. Rocky Mountain Power has been self-building a number of power generation facilities in Wyoming that are sized to avoid competitive solicitations, and now is proposing automatic and accelerated cost recovery in Wyoming that would apply only to its utility-owned projects, further disadvantaging independent power producers. Interwest is retaining Bob Pomeroy of Holland & Hart to represent its interests in this case at the Wyoming Public Service Commission in Cheyenne. |
These abundant clean energy resources could be developed
to meet in-state requirements and position the state for
export of power throughout the western grid. 
Leaders around the West worked cooperatively
throughout 2007 to facilitate region-wide transmission
development for clean energy technologies. Elected
officials, utility leaders, energy companies,
stakeholder groups and many other parties met frequently
in various venues to discuss how best to deliver power
from resource-rich rural areas to rapidly growing urban
load centers. Topics of discussion ranged from regional
cost allocation to power flow modeling, from wildlife
issues to economic feasibility studies and featured an
alphabet soup of acronyms, from SWAT and CCPG to CREPC
and NTTG. One of the leading organizations
actively (and successfully) pursuing this effort
throughout the West is Interwest's colleague
organization,
Three utility-scale solar projects came online in the
West in 2007, and a major solar manufacturing plant was
announced, presaging a new era of large, utility-scale
solar energy plants delivering competitive electric
power to consumers in the sunniest part of the nation.
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