Hydroelectricity: Are Water and Wind Transparent?

Bills making their way through the Minnesota legislature would bring a degree of honesty to "renewable energy" counting. Legislators and citizens clamored last year to count all the hydroelectricity that the state's utilities already buy and consumers already use. Minnesota's Next Generation Energy Act recognized hydroelectricity as a renewable energy source, but simultaneously forbids counting electricity from generators of over 100 MW capacity.

Minnesota's Renewable Energy Standard (RES) mandates that 25% of electricity must come from "renewable" sources by 2025. This eliminates the State's primary hydroelectricity sources - Manitoba and Missouri River basin. House File 2190 and companion Senate File 1906 would address this.

Illuminating the connection to industrial wind, Center of the American Experiment's Peter Nelson provided testimony to the Senate Committee on Energy and the Environment last week. 

"While it is likely that utilities are underreporting the rate impact, it is possible that recent additions of wind energy sources posed little to no impact on electricity rates.  But that’s not because wind energy is a cost competitive energy alternative.  Rather, it’s because the federal government heavily subsidized wind energy development.  Indeed, federal taxpayers have been footing the bill for Minnesota’s RES."

"Looking to the future, Minnesota cannot depend on federal subsidies to cover the cost of the state’s RES.  These subsidies are set to expire at the end of 2012 and they are unlikely to be renewed in the current economic and political environment.  Navigant Consulting compared the levelized cost for a 100 MW wind plant depending on certain policy scenarios.  The cost was around $40/MWhr in 2011 with all of the federal subsidies in place.  After the federal subsidies expire, the cost rises to around $100/MWhr in 2013.  In its December 2011 Resource Plan update, Xcel reports that “post-2012 wind projects may be significantly more expensive if they are unable to rely upon the availability of the [federal Production Tax Credit.]”

Bill Grant, Director of Commerce's Office of Energy Resources, stated that Minnesota's 2007 Renewable Energy Standard was designed for "speed".  The goal was to install as many wind turbines as possible, as fast as possible, in order to get as much federal subsidy money as possible. 

Water is transparent: Counting water generated electricity fulfills the State's mandate. 

Wind is transparent: Citizen tax and rate money taken by force of law for a contrived "need".

Honest counting of hydroelectrical usage removes the artificially contrived "need" for industrial wind. The Coalition for Sensible Siting encourages honesty and transparency in energy policy.  Minnesota legislators are encouraged to support HF 2190/ SF 1906.

Peter Nelson's 2011 report, "Recommendations for Promoting Affordable and Competitive Energy Rates in Minnesota", provides a comprehensive RES analysis.

 

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Wind Turbine Siting - Year in Review

Concerned citizens across the US have been clamoring for sensible siting of industrial wind turbines. Local government control and protection of private property rights are fundamental principles in a free society. Well-documented problems caused by utility scale wind energy range from low-frequency noise to wide-spread killing of bats and birds. Wind industry promoters deny or obscure any facts that might interfere with the free flow of tax money and publicly regulated electrical rate money.

When Xcel met with citizens of Goodhue County Minnesota this week, they asked if bald eagles were the main concern.  Citizens responded that eagles are not the only important concern, but eagles are proving to be the easiest for citizens to prove and the most difficult for the wind company to deny. 

Below is a December 22, 2011 photo of a nest near me that T. Boone Pickens' AWA Goodhue said:

1. Does not exist. (June 2011)
2. Is a Red Tailed Hawk nest (November 2011)

On the eve of 2012, I'm thankful for citizens across America protecting the US abroad, in our back yards, and in rural farm fields.  I'm also thankful for our symbol of freedom, the American Bald Eagle, shining a bright light on my home turf in Goodhue County.

Happy New Year!

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Xcel's meeting with citizens of Goodhue County

Xcel executives James Alders and Rick Evans generously spent over three hours Wednesday to tour and answer citizens’ questions about Xcel’s relationship with T. Boone Pickens’ AWA Goodhue wind project. The Coalition for Sensible Siting is curious about Xcel's contract to purchase the power generated (PPA) by the proposed industrial wind project.

Xcel’s James Alders confirmed Xcel's belief that AWA Goodhue must re-establish its Community Based Energy Development (C-BED) eligibility before the project can begin construction. Minnesota State Representative Steve Drazkowski stated that he and Representative Tim Kelly, along with State Senator John Howe, have asked the State Auditor’s Office to examine the AWA Goodhue project’s C-BED status. Xcel’s PPA with AWA Goodhue has a very high (possibly the highest) electrical rate compared with other contracts for purchasing wind energy in Minnesota. Lack of transparency under Minnesota law does not allow citizens footing the bill to know exactly how high the rate is.

Citizen Kristi Rosenquist asked whether wind energy rates to consumers would be “cost competitive” with other sources of electricity without large federal tax cash flowing directly to wind companies. Mr. Alders responded, “I doubt it”. The misleading and frequently repeated statement by wind energy lobbyists about wind being “cost competitive” relies on a false pretext: that the federal section 1603 cash grants (and other government supports) and the electrical rate money are not coming from the same tax payers and rate payers. If a pick-pocket takes money by picking one pocket more slowly while picking the other pocket more quickly, this does not result in less money being extracted. Apparently, when industrial wind promoters say “wind is cost competitive”, reality depends upon what the meaning of the word “is” is.

Bill Glahn attended the Xcel meeting at the Belle Creek Township Hall and provided this blog on what he saw.

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Xcel meets with citizens on AWA Goodhue project

T. Boone Pickens’ AWA Goodhue wind project negotiated a 20 year power purchase agreement (PPA) with Xcel, Minnesota’s largest electrical utility. After relentless pleas by local citizens, Xcel has agreed to send Jim Alders and Rick Evans to meet with citizens about what is now considered one of the most controversial wind energy projects in the nation. Representatives of AWA Goodhue have demonstrated an ongoing pattern of misrepresentation, distortion and outright lies on almost all aspects of the project. Citizens are eager to hear from Xcel what their plans are for a wind project that apparently intends to be in violation of the federal Migratory Bird Treaty and the Bald and Golden Eagle Protection Act.

The project was also granted Community Based Energy Development (C-BED) status by the Minnesota Public Utilities Commission (MPUC) in April 2010. Since the project is owned 100% by Texas billionaire T. Boone Pickens and 0% by Minnesotans, AWA Goodhue also appears to fail C-BED law requirements. The MPUC granted the PPA with Xcel with the highest electrical rate for any wind project ever approved in Minnesota. AWA Goodhue’s Cole Robertson testified at the March 2011 contested case hearing in front of ALJ Kathleen Sheehy, that the PPA requires production by December 31, 2011.

Robertson testified that failure to meet the deadline could subject AWA Goodhue to liquidated damages and that Xcel could opt out of their PPA. Since Pickens has not yet broken ground, there is no chance of electrical production in three days. Federal and Minnesota wind energy laws were formulated by faux environmental lobbyists and crony capitalists, including T. Boone Pickens. Not invited nor represented were citizens who pay the taxes and electrical bills and bear the burden of the resulting turbines and electrical transmission lines. We’ll report on ‘Xcel meets the citizens of Goodhue County’ tomorrow on this blog.

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