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PSCo notes that “These priorities are provided as a suggestion to the Commission as to how Public Service might order the staging and scheduling of CPCN applications. Again, Public Service is interested in obtaining the Commission’s views prior to the submission of CPCNs.”
Colorado PUC opens transmission investigatory docket
The Colorado Public Utilities Commission took an increased interest in transmission issues in 2008. The PUC opened a transmission investigatory docket, in which Interwest filed comments on 18 July calling for a “one-utility” statewide approach to transmission planning as well as control area consolidation or coordination.
Toward the end of 2008, the Colorado PUC began ramping up its efforts in the transmission investigatory docket, indicating its interest in pursuing a truly robust statewide transmission infrastructure capable of serving both native load and export markets alike. The PUC’s plans in this area for 2009 include a number of stakeholder workshops and dockets, and cooperation with other state commissions and infrastructure entities such as the Colorado Clean Energy Development Authority.
Colorado receives grant to expedite renewable energy onto transmission grid
Colorado Governor Bill Ritter announced on 10 September that the Governor’s Energy Office (GEO) has been selected to receive a $397,700 grant from the U.S. Department of Energy to advance renewable energy in Colorado. Dubbed the “Renewable Energy Development Infrastructure” task force (“REDI”), this task force will use the grant to develop technical, financial and policy frameworks to expedite the construction of an additional 1,000 megawatts of renewable resource capacity onto the Colorado electricity grid. The objectives of the nine-month grant are to prepare a set of concrete policy recommendations that will:
Interwest’s Craig Cox, along with a number of other industry and utility leaders, have been named to the REDI advisory board. The final report is due to be issued in mid-2009.
Tri-State Generation and Transmission Association is proposing a new transmission project in southern Colorado to build a double-circuit 230-kilovolt transmission line between electrical substations near the towns of Walsenburg and Mosca. Tri-State notes that this line will provide the power delivery infrastructure to increase the reliability and capacity of the existing transmission system and support proposed renewable energy development in the area. The San Luis Valley is noted for its tremendous solar resource base.
Tri-State is cooperating with Xcel Energy (Public Service of Colorado) in this project, representing an example of the kind of transmission planning coordination between the state’s major load-serving entities that Interwest has long advocated.
Tri-State queue reform process initiated
Tri-State Generation & Transmission Association, the Denver-based supplier of power to 44 member rural electric cooperatives in four states (Colorado, Nebraska, New Mexico and Wyoming) has begun a stakeholder process on queue reform. Tri-State is working to finalize LGIP interim procedures, and stakeholder meetings planned, beginning in late January or the first half of February 2009. The Interwest Energy Alliance made joint comments on Tri-State’s initial queue reform proposals with the Colorado Independent Energy Association. This letter (dubbed “Comment Letter 1”) is posted on Tri-State’s OASIS site. This will be an important issue in 2009, since
Tri-State’s service territory contains some of the
nation’s best renewable energy resource bases.
Nevada renewable transmission plan released in January
On 24 January, Governor Jim Gibbons released the final report of the Nevada Renewable Energy Transmission Access Advisory Committee (RETAAC). In this report, the committee identified areas in Nevada with high renewable energy development potential: six geothermal zones, four solar zones, 12 wind zones and four biomass zones. The committee made three key recommendations in its report for developing transmission to these various renewable energy resources, saying that:
Wyoming-Colorado Intertie success underscores viability of wind-only transmission
The Wyoming-Colorado Intertie (WCI) Project announced on 26 August that its recent Open Season auction was successful, with a 70-percent subscription to the line (with the rest of the line unsubscribed). The WCI Project is a public/private development partnership involving the Wyoming Infrastructure Authority (WIA), Trans-Elect Development Company LLC (Trans-Elect), and the Western Area Power Administration (Western), with Trans-Elect leading the development effort. In its press release, WCI reported that:
In a separate press release, the American Wind Energy Association’s Policy Director Rob Gramlich noted that:
Western Wind and Solar Integration Study examines higher levels of wind and solar penetration
The Western Wind and Solar Integration Study (WWSIS) 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, and is being coordinated by the U.S. Department of Energy (DOE) and DOE’s National Renewable Energy Laboratory. WWSIS is working to model a baseline assessment for the study footprint without new renewables, along with scenarios modeling a high renewables scenario based on 20-percent wind/3-percent solar or 30-percent wind/5-percent solar penetration levels.
New Mexico PRC issues new interconnection standard rules
The New Mexico Public Regulation Commission (PRC) issued an order on 29 July on standards for interconnection by electric utilities and customer-owned renewable generation facilities. The PRC notes in a press release that:
2008 General Election results in Interwest region favorable for clean energy
Most
winners in federal and state races in the 2008
General Election on 4 November were supportive of
clean-energy policies.
Western governors deliver energy policy letter to President-elect Obama
In a 20 November letter delivered to President-elect Barack Obama on behalf of the Western Governors’ Association (WGA), Governors Jon Huntsman (R-Utah) and Brian Schweitzer (D-Montana) wrote:
Huntsman and Schweitzer’s letter, written in their capacity as chair and vice-chair, respectively, of the WGA, went on to call for aggressive implementation of greenhouse gas mitigation goals through clean energy deployment.
Western utility executives call for examination of regional energy policies
CEOs from leading western utilities sent a open letter on 18 April in support of regional transmission policies. Representing a “broad coalition of utility leaders of public and private utilities throughout the West,” the letter was signed by executives of APS, Avista, Bonneville, CalISO, PacifiCorp, Pacific Gas & Electric, PNM, Puget Sound Energy, SMUD, Salt River Project, San Diego Gas & Electric, Sierra Pacific, Southern California Edison and Unisource. The letter from these utility executives notes that many western states have RPS laws and climate policies, along with rapidly increasing load growth. These utility executives call for consideration of a number of issues in the western interconnection as planning proceeds for future energy needs, including:
In a 19 May reply signed by Govs. Dave Freudenthal (D-Wyo.) and Jon Huntsman (R-Utah), the Western Governors' Association expressed agreement with the utility executives in many of their points, and the governors outlined their ongoing work in these areas of mutual concern.
Governor Napolitano signs property tax reduction extension into law
Arizona Governor Janet Napolitano, who soon leaves
for a new post as Secretary of Homeland Security, signed
legislation into law in July extending the state’s
property tax reduction through 2040 and allows renewable
energy equipment to be assessed for taxes at 20% versus
the normal 100%. HB 2614, sponsored by Rep. Lucy Mason
(R-Prescott), was one of the last measures to be passed
in the 2008 legislature and was the only significant
energy-related bill to be passed in Arizona this year.
Governor Ritter signs Colorado sales tax exemption legislation into law
Colorado Governor Bill Ritter signed legislation into law in May clarifying and strengthening the exemption of renewable energy equipment from state sales taxation. This legislation, HB 1368, was a top priority of Interwest in the 2008 Colorado legislature.
Background: In late 2006, in the waning days of the previous governor’s administration (Bill Owens), the Colorado Department of Revenue suddenly overturned a sales tax exemption for all renewable energy equipment that had been in effect since early 2001. Not only was the exemption administratively overturned, but to add insult to injuries, back payment penalties were assessed. Interwest successfully advanced legislation in 2007 to restore the exemption, and with the passage of HB 07-1279, also made the exemption permanent. However, it was subsequently interpreted very narrowly late in 2007 by the state Revenue Department, meaning that many components of renewable energy projects, such as supporting structures, were not exempted. This necessitated the introduction and passage of HB 1368 in 2008.
Colorado central solar bill signed into law
Colorado Governor Bill Ritter signed a utility-scale solar bill, HB 1164, into law in May. This new law allows the PUC to consider various non-utility benefits of utility-scale (2 MW and above) solar technologies and writes into law the legislative declaration (described in a 2007 PUC filing by Interwest) of Amendment 37, which outlines the non-utility benefits of renewable energy resources. HB 1164 also explicitly allows the PUC to consider the costs of future greenhouse gas mitigation when evaluating future utility resource acquisitions.
Though the PUC already has the authority that was
written into HB 1164, the specific language in this bill
clarifies statute. HB 1164 was sponsored by Rep. July
Solano (D-Brighton) and Sen. Gail Schwartz (D-Snowmass),
two of the legislature’s top proponents of renewable
energy policies.
Colorado Legislature creates Committee on Job Creation and Economic Growth
On 24 November, Colorado Senate President Peter Groff and Speaker-designee Terrance Carroll announced the creation of a special Committee on Job Creation and Economic Growth, Comprised of ten Senators and Representatives from both political parties, the legislative leaders asked the committee to present its action plan to the full legislature after it convenes in January. The committee is tasked with crafting innovative legislative solutions to:
Governor Huntsman signs Utah sales tax exemption extension into law
HB 359, an omnibus tax package, was successfully
amended in the final days of the Utah legislature to
extend sales tax exemptions for wind, waste heat, and
biomass until 2019. Senator Curtis Bramble (R-Provo),
included this exemption into another tax-related bill (HB
359). Attempts to extend the exemption to solar were not
pursued, since inclusion of solar energy would have
incurred a deal-killing fiscal note (since that would be
a new exemption, and not an extension of an existing
exemption).
Public Service of Colorado receives tremendous response to wind RFP
On 12 May, Public Service Company of Colorado (Xcel Energy) filed an initial report to the Colorado PUC on its “early wind” bid proposals. In this solicitation for 150 MW of wind, which closed on 11 April, Xcel reports it received 21 proposals from 19 suppliers totaling 2,785 MW, at prices ranging from about $50 to $110 per MWh, with the federal production tax credit in place.
PUC issues decision on landmark Colorado resource acquisition docket
In late 2007, Xcel Energy (Public Service Company of Colorado, PSCo) filed its landmark “Colorado Resource Plan” at the Colorado PUC. This was the nation’s first major utility resource acquisition plan to call for closure of older, less-efficient coal plants in order to meet carbon-reduction goals. In addition, the plan called for at least 850 megawatts of new wind (and other “intermittent” renewable resources) and 200 MW of new solar energy (with storage) deployment by the end of the 2015 resource acquisition period. Following months of testimony, reply testimony and discovery by the many parties in this docket (07A-447E), hearings ran for three solid weeks in June and July 2008. Interwest fielded several witnesses, all of whom provided excellent testimony under cross examination from Xcel and other parties. Interwest’s witnesses were Rick Gilliam (SunEdison), Carl Hunt (former chief PUC economist), Brendan Kirby (wind integration expert recently retired from Oak Ridge National Laboratory) and Hank Price (Abengoa Solar). Ron Lehr provided tremendous representation of Interwest’s case throughout the marathon proceedings, and noted that “the three PUC commissioners and most (but not all) of the parties in this docket are working in concert to see how we can achieve shared goals of increased renewables deployment and a lower-carbon energy future…These hearings are showing that Interwest’s key intervention issues are the issues holding back more aggressive deployment of renewables in Xcel Energy’s Colorado system (and, by extension, in other utilities in the western grid). These issues include a lack of integration research by PSCo and the longstanding issue of transmission constraints.” The PUC commissioners issued their decision in this docket on 19 September, largely approving Xcel’s proposed resource acquisition plans. Among the key provisions in the PUC decision were:
Importantly, the PUC rejected Xcel’s proposal to construct and own 40 to 60% of its new needed generation resources outside of a competitive procurement process, requiring instead that future resource needs be met through a competitive procurement process, which Xcel is permitted to also bid on, using an independent evaluator. The commission also found that bidding should be open to diverse proposals from all credit-worthy suppliers and that debt equivalency can not be used by the utility in reviewing bids. The PUC notes that following a comment period, the PUC will hold an expedited proceeding (Phase II) to establish a preferred resource portfolio for the company. That decision is expected by mid-2009. Carl Hunt, the Interwest Energy Alliance’s expert
witness in Xcel Energy’s resource acquisition plan
updated Interwest’s popular Pater-Binz study
“backcasting” study as part of his
testimony.
Hunt reports that the 800 MW of wind proposed in Xcel
Energy’s resource acquisition plan through 2015 would
result in nearly $248 million in consumer benefits with
wind priced at 6.1 cents/kWh. This justified Interwest’s
position that Xcel should acquire all cost-effective
wind and renewable energy bids (above its proposed 800
MW of wind and 450 MW of solar), due to the demonstrated
consumer benefits of these stable-cost technologies.
Utah Renewable Energy Zone Task Force
By Executive Order in April, Utah Governor Jon Huntsman formed a task force to study Utah’s renewable energy zones. The goal of the Utah Renewable Energy Zone (UREZ) Task Force is to clearly identify and map Utah’s best renewable resource areas so that policymakers, utility planners and other can make more informed decisions on future project development and transmission. The task force issued its draft report on 6 November, focusing on the state’s wind, solar and geothermal resources.
Court tosses challenge to state’s Renewable Energy Standard
In September, the Arizona Supreme Court tossed a
lawsuit challenging the Renewable Energy Standard and
Tariff (REST). The suit was brought by the Goldwater
Institute, a conservative think tank. In it, they
alleged that the Arizona Corporation Commission (ACC)
exceeded its authority, as a ratemaking body, when it
approved the REST. ACC candidates in November’s election who were
vocally against the REST were defeated.
Governor convenes Solar Work Group
Through the Arizona Economic Research Organization (AERO), Governor Janet Napolitano convened a group of experts in 2008 to look at financial incentives for solar and market development potential. The group includes Amanda Ormond, as well as Bill Post, CEO of APS’ parent company, Commissioner Kris Mayes, Barry Broome, Executive Director of the Phoenix Economic Development Council, and several university representatives.
The AERO committee prepared a report, presented to Governor Napolitano in November. With the departure of Governor Napolitano to become President-elect Obama’s Secretary of Homeland Security, it is uncertain how the report will be used. It is expected, however, that the parties assembled for the work group will determine a method to work on implementation of some of the issues. The recommendations include key measures that will be pursued in 2009, such as a tax incentive for renewable energy manufacturers and identifying land for solar development.
Nevada adopts mandatory greenhouse gas reporting program
In November, the Nevada Division of Environmental Protection’s Bureau of Air Quality Planning announced:
Key PSC victory on cost recovery
issue
In an intervention at the Wyoming Public Service
Commission in the Rocky Mountain Power (“RMP,”
PacifiCorp) Wyoming rate case, Interwest negotiated a
settlement agreement with RMP in which the company
withdrew its proposed New Renewable Resource Mechanism (NRRM),
which would favor company-owned renewable projects
versus those built by independent power providers.
The Wyoming Governor’s Office, in coordination with state and federal agencies, has produced new maps showing environmental constraints for wind development in all portions of the state reported by the National Renewable Energy Laboratory to have Class 4 or better winds.
Arizona considering draft wildlife guidelines
Arizona is working to develop wind and wildlife guidelines. The Northern Arizona University’s Ecological Monitoring & Assessment (EMA) office, writes in a 20 November letter that:
Interwest coordinated
industry comments on these
draft guidelines, submitted to NAU on 19 December.
“Colorado Renewables and Conservation Collaborative” formed
Interwest joined a number of leading regional non-governmental wildlife, conservation and public lands groups in 2008 to forge mutual approaches to new project and transmission development and siting issues. Members of the new Colorado Renewables and Conservation Collaborative (“CRCC”) share many similar goals, including:
CRCC members will continue to bring industry together
with leading NGOs in ongoing efforts to achieve
consensus on new project development and transmission
siting. For example, this new coalition submitted
comments to on proposed Renewable Energy Standard
rulemaking to the Colorado PUC in December. Interwest submits joint Draft Programmatic EIS comments with AWEA and SEIA
On 14 February, Interwest submitted comments on the federal Draft Programmatic Environmental Impact Statement (PEIS) jointly with the American Wind Energy Association (AWEA) and the Solar Energy Industries Association (SEIA).
These short comments emphasized the West’s wealth of renewable energy resources and emphasized the importance of responsible and pro-active transmission development to get these resources to markets. We also expressed support for comments by EEI urging the federal agencies to demonstrate how the proposed corridors fully connect, and ensuring that all federal segments of these overall paths are designated as part of this section 368 process rather than designating just some segments and leaving others undesignated.
Solar Draft PEIS scoping meetings held
Interwest took part in the
Solar Energy Development
Programmatic EIS (PEIS)
scoping meeting process. We expressed support in June
for the PEIS process, but urged BLM not to stop
development in its tracks by maintaining a moratorium on
new applications throughout the PEIS process. Happily, BLM’s moratorium on new project development
during the PEIS process was reversed in early July. Central Solar Power Forum a huge success
Senator Salazar’s energy summit held in Denver
Once again this year, Interwest was a cosponsor of Senator Ken Salazar’s third annual energy summit in Denver. This year’s summit on 28 March brought together over 400 players in the state’s energy and financial sectors, for some of whom renewable energy was a relatively new topic. Featuring Energy Secretary Sam Bodman and executives from some of the state’s top players in the clean energy economy, such as Vestas, Abengoa and other companies that have recently established a new (or higher-level) presence in Colorado. This summit served to provide a snapshot of the burgeoning activity in Colorado’s “new energy economy” and to highlight Senator Salazar’s important work in this arena.
Senator Salazar has been an important leader
on energy issues in the
United States Senate and Interwest wishes him well as he
prepares to lead the Department of Interior in the Obama
Administration.
Interwest conducts successful public briefing on central solar
Interwest conducted a successful briefing on the great potential offered by central solar power generation, with presentations by five leading companies in the central solar industry — Abengoa Solar, Ausra, BrightSource Energy, OptiSolar and SunEdison. Attracting more than 125 leaders from key stakeholder constituencies, including legislators and top state agencies, this briefing helped broaden awareness of the promise of utility-scale solar power for Colorado’s future power generation requirements.
Governor’s New Energy Economy Forum attracts big crowd
Colorado Gov. Bill Ritter’s second annual new energy economy forum attracted over 850 people to Denver’s convention center on 14 October. A highlight of this event was Ritter’s announcement of the first recipients of the “New Energy Communities Initiative” – 14 projects designed to “stimulate economic growth, create new jobs, enhance sustainability and lead to more livable communities all across Colorado.”
Colorado Republican legislators blast the “No Energy Economy”
The Republican Study Committee of Colorado, which
brings together the state’s conservative Republican
legislators, held a sparsely attended, Republicans-only,
daylong hearing on 18 August
entitled “New Energy Economy, or just No Energy
Economy?” The sponsors said this hearing was called to
discuss “Colorado’s energy crisis and the political
storm surrounding it.”
Senator Reid hosts National Clean Energy Summit
At least 1,000 people attended the National Clean Energy Summit in Las Vegas, Nevada on 18-19 August. Sponsored by Nevada Senator Harry Reid (D), this conference featured five keynote speakers —Bill Clinton, T. Boone Pickens, Bob Rubin, Jon Huntsman and Michael Bloomberg— of whom three were Republicans. All the speakers echoed the importance and urgency of developing new clean energy resources. Some of the stakeholder discussions during the event will certainly help inform future federal legislation.
New project ribbon-cuttings and announcements
APS announces 280 MW power purchase agreement with Abengoa Solar
Announced in February, this concentrating solar plant
west of Phoenix, the
Solana project will be one of the
world’s largest, representing a one-billion-dollar
investment in the state upon its completion in 2012.
This project worked its way through the Arizona
Corporation Commission review and approval process
throughout 2008.
Arizona’s first wind project announced
In July, Iberdrola Renewables announced Arizona’s first utility-scale wind project. The 63 MW Dry Lake project in Navajo County, whose output Salt River Project will purchase, is expected to come online in late 2009.
Utah’s first utility-scale wind project dedicated
At an October ceremony, state officials and representatives from Wasatch Wind and the Edison Mission Group dedicated Utah’s first utility-scale wind plant, the 19 MW Spanish Fork project.
Ground broken on large Milford Wind project in Utah
First Wind began construction on its 203 MW Milford Wind project in Millard and Beaver Counties in southwestern Utah. Expected to be completed by the end of 2009, this project will supply the Southern California Public Power Authority (on behalf of the Los Angeles Department of Water and Power and the cities of Burbank and Pasadena) with clean power under a 20-year power purchase agreement.
Happy Jack wind project dedicated
In September, Duke Energy dedicated its new 30 MW
Happy Jack wind project near Cheyenne, Wyoming. Cheyenne
Light Fuel & Power is the customer under a 20-year power
purchase agreement.
Vestas opens turbine blade factory in Windsor, announces three more plants in Colorado
Vestas Blades
opened its first North American manufacturing
facility in Windsor, Colo. on 5 March. This plant, which
will employ up to 650 people, will produce 1,800 turbine
blades per year. In two separate August announcements, Colorado Gov. Bill Ritter announced on 15 August that Vestas will significantly expand its Colorado operations by building two new manufacturing plants in Brighton. One plant will produce wind turbine blades and another will produce nacelles. Together, these two new plants in Brighton represent a $290 million capital investment and will bring 1,350 new jobs to Colorado. A week later, Gov. Ritter announced on 22 August that Vestas will build the world’s largest wind tower manufacturing plant in Pueblo, representing a $240-million capital investment and bringing 450-550 new jobs to southern Colorado. All three new plants will come online in 2009 and 2010.
Ausra opens first U.S. solar thermal power factory
On 30 June, Ausra, the developer of utility-scale solar thermal power headquartered in Palo Alto, CA, opened the reflector production line of its first North American manufacturing and distribution center in Las Vegas. The 130,000-square-foot, highly automated manufacturing and distribution center will supply the reflectors, absorber tubes, and other key components of the company's solar thermal power plants to the rapidly growing Southwestern solar power industry. |
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