Author Archives Laura Arnold

Midwest Energy News: Iowa utility reverses policy, will net meter third-party solar projects

Posted by Laura Arnold  /   August 10, 2015  /   Posted in solar  /   No Comments

Iowa utility reverses policy, will net meter third-party solar projects

After informing a few institutional customers and at least one solar installer over the past few months that it would not allow them to net meter their third-party funded projects, one of Iowa's major power companies has reversed course.

After the Iowa Supreme Court one year ago upheld third-party funding of renewable-energy projects, Alliant Energy took the position that it would not agree to net meter those projects.

Under net metering, utilities compensate owners of distributed generation system for excess electricity fed to the grid. Alliant contended that the third party was essentially reselling power, impinging on the utility's state-sanctioned monopoly within its service territory.

In an e-mail earlier this week, an Alliant employee told a member of the Cresco city council that the utility will allow the city to net meter some solar arrays that it is considering on three city-owned buildings.

“We have been reviewing your situation and others similar to it, and have determined that our Alternative Energy & Small Hydro Production (AEP) electric tariff allows net metering for third-party financed projects,” Nick Smith wrote to Amy Bouska on Aug. 6. He is Alliant's product manager for renewables.

“Projects would still be subject to IPL’s (Alliant's) AEP electric tariff, but would not be restricted by the form of ownership of the system.”

“I'm delighted,” said Amy Bouska, a member of the Cresco City Council, and the coordinator of the city's energy action team, which has been investigating the feasibility of installing solar panels.

Barry Shear, president and owner of Eagle Point Solar, the Iowa solar installer that filed the legal action that led to the state Supreme Court ruling last summer, clearly was feeling vindicated.

“This is a major turnaround, a total turnaround from what they told me, my lawyer and numerous other people,” he said. The change in policy happens to have come just a few weeks after Shear filed a complaint with the Iowa Utilities Board on June 26 criticizing Alliant's policy on net metering third-party projects. Shear felt he had to downsize a solar project for the city of Asbury in part because of the utility's net metering policy.

The policy change on the part of Alliant could have major repercussions because institutions without a tax liability – schools, universities, hospitals, local governing entities and non-profit organizations, for example – have no way to collect the substantial tax benefits that, in Iowa, can in some cases cut the price of a solar installation in half.

Without access to a third party to provide upfront funding and to collect the tax benefits and then pass them through to the tax-exempt entity in the form of lower electricity prices, that meant that solar and other forms of distributed generation were not very financially feasible for non-taxable entities.


 

'The policy changed once we actually got something to review from our customers.'


 

Justin Foss, a spokesman for Alliant Energy, said that the company had one policy – a no net-metering policy – when the third-party issue was strictly hypothetical. Once interconnection applications started to arrive at the company's office this summer, Alliant looked at it differently, he said.

“The policy changed once we actually got something to review from our customers,” he said. “We reviewed what they presented. We looked it over, and found the most customer-focused options possible, and here we are.

“We have told everybody who has provided a formal application that, 'Yes, we're accepting formal applications.' We want to work with our customers, and this is just further proof of that.”

Alliant no longer views third-party net metering as reselling of energy, Foss said.

Until very recently, Alliant's institutional customers understood it to be hostile towards net metering third-party projects. One college in Alliant's territory didn't even even consider sizing a solar project big enough to generate the excess power that would need net metering: the administration didn't think that net metering would be granted.

And Shear said he downsized several projects because of his understanding that Alliant would not grant net metering privileges.

In Cresco, Amy Bouska said that in light of Alliant's initial refusal to net meter a project there, her energy team had begun to look for other ways to cover the cost of installing solar panels on City Hall, the fire station and the road maintenance garage. They thought about a leasing arrangement, or putting up a very small array as an experiment.

“I seriously doubt that we would have moved ahead without a (power-purchase agreement),” she said.

Alliant's change-of-mind, she said, “reopens doors we thought were closed.”

North Putnam High School (IN) to harvest sunshine

Posted by Laura Arnold  /   August 10, 2015  /   Posted in solar  /   No Comments

North Putnam schools to harvest sunshine

Sunday, August 2, 2015

(Photo)

The southern end of North Putnam High School will look a bit different this year as a 1.6 megawatt solar installation will be placed on its roof.
(Banner Graphic/Nick Wilson)

The upcoming school year may provide a change of scenery for students of North Putnam High School.In fact, if they haven't noticed already, each school within the corporation has been receiving crucial updates in anticipation of the masses that will soon begin pouring through its doors.

The addition most likely to be noticed -- a solar panel "farm" located on the roof of North Putnam High School, as well as a five to seven-acre installation on the grounds.

Dan Noel, superintendent of the North Putnam School Corporation, as well as Chief Operating Officer Bob McKinney and Project Development and Account Manager Andy Cooper of Johnson-Melloh, took the time Friday to explain to the Banner Graphic what all this will mean, and how it will impact the students.

Noel said the entire process of renovating North Putnam schools actually began more than a year ago.

"We had some problems in our schools with the air conditioning and air quality -- and everything," Noel said. "Our board, at that point, interviewed around seven companies . . . about what they can do with the buildings through a program called Debt Service.

"They are about $2 million projects," Noel continued. "Johnson-Melloh won the vote and became our contractor. You can say it's energy, you can say it's renovation -- but basically, it's energy. We [then] did a $2 million renovation of Roachdale Elementary."

Johnson-Melloh is a "vertically integrated design, engineer, build and service firm with a wide variety of facility maintenance and retrofit capabilities." The company is partnering with Noel and North Putnam schools to introduce a brand new way to generate revenue and cut utility costs over the next 25 years.

With limited revenue options available, Noel said besides overall student population and grants, generating money for the school can be difficult. However, with the installment of a solar-panel farm, students will be able to enjoy better conditions at each of their respective schools, which include a newly-pitched roof, carpeting and ventilation systems.

Initially seeking wind turbines as a way to reduce utility costs, McKinney and Cooper suggested solar panels because they have "immediate payback," whereas wind turbines generate electricity intended directly for utility companies' use.

Furthermore, solar panels fall within the guidelines of Zero Metering and Zero Net laws in Indiana, in which the school can build a type of credit with the utility companies. In short, the more energy they produce throughout peak-times of the year (typically in April, May, September and October), the more energy credit they will receive in the cold months when the sun is not as high in the sky.

So far, the agreement has worked well, Noel said. In fact, the project hasn't gone unnoticed. From Terre Haute, where Noel gave a recent speech, to Indianapolis and beyond, Noel has been approached by multiple schools who want to see what they can do about starting a similar program.

In addition, Noel and the people at Johnson-Melloh say that, due to ever-evolving technology, solar panels and otherwise renewable energy will be crucial in the coming decades as the world's population booms and non-renewable energy sources deplete.

The implementation and education of such advancements for our youth, Cooper said, is paramount.

"We're trying to bring all of those avenues back to North Putnam, and in turn that will bring kids back to the school," Cooper said, citing that, due to aging facilities, families have sought enrollment at other schools.

"It's also about giving our current students the best facilities possible," Noel added. "We want people to say 'wow, these facilities at North Put, they have the latest and greatest of all this technology.'"

Relationships and trust, the trio said, are what makes our economy run. In fact, Johnson-Melloh believes in this principle so much that they literally hosted a cookout upon completion of Roachdale Elementary's renovations. That, Noel said, is something you can't find just around the corner.

Thanks to these relationships, many things are possible, ranging from the ability to offer competitive wages to school staff to saving money in the long-haul.

Financial benefits

The 1.6MW direct-current solar farm will take less than four months to construct and will reduce the school's carbon-footprint.

Net energy expenditure savings to the school will be in the range of $2.9 million over the span of 25 years.

Although the life-expectancy of such farms are about 25 years, Johnson-Melloh expects to see no more than a drop of 20 percent efficiency at that time.

The program will stabilize the corporation's utility budget by only requiring a fixed-rate for power for 20 years, then all power produced thereafter is free.

Environmental benefits

Prevents approximately two million pounds of carbon dioxide emissions, nearly the same as removing 4,400 cars from the road, or the same as planting 5,600 acres of three canopy.

Could power the equivalent of approximately 150 homes.

Some other interesting statistics concerning solar farms and renewable energy include:

From 2004 to 2014, nearly 200,000 jobs have been created nation-wide.

87 percent of all electricity generated in Indiana still comes from coal or natural gas-reliant refining plants.

Though this plan may seem ready to begin, Noel and the school board want to make the best decision possible. Therefore, although six board meetings have already been held, another will take place soon to present the final projections for adoption.

Education, savings, relationships and trust are crucial, Noel said, and the benefits to the students this year at each of North Putnam's facilities will undoubtedly be the envy of the entire region.

To learn more about this project, or if you have any questions, contact Superintendent Dan Noel and the North Putnam School Corporation at 765-522-6218 or nputnam.k12.in.us, or visit johnsonmelloh.com.

 

Utility Dive: Michigan senate bill would erode the value of net metering for solar owners

Posted by Laura Arnold  /   August 07, 2015  /   Posted in solar  /   No Comments

Michigan senate bill would erode the value of net metering for solar owners

 by | August 6, 2015

Young Republicans want GOP to address energy, environment during Presidential debate; Will you be watching tonite?

Posted by Laura Arnold  /   August 06, 2015  /   Posted in Uncategorized  /   No Comments

Young Republicans want GOP to address energy, environment

First Posted: 8:04 am - August 6th, 2015
By Stephanie Carson - Ohio News Connection

CLEVELAND – Ohio is Ground Zero today for the 2016 presidential campaign as Republican candidates for president square off in the campaign season’s first debate.

With a full spectrum of GOP contenders with various priorities, Young Republicans are reminding candidates to pay attention to issues important to them. Michele Combs, founder and chair of Young Conservatives for Energy Reform, says one of those issues is the environment and renewable energy.

“We think it is an American issue, it’s a patriotic issue, it’s a conservative issue to use our homegrown resources,” she says. “We’d like to see more renewables, solar, wind, so we’d like the Republican Party to embrace more of that.”

Tonight the Ohio Conservative Energy Forum, Young Conservatives for Energy Reform and the Christian Coalition of America will host a GOP primary debate watch party in Cleveland to see which presidential candidates will earn the support of Republican voters concerned about clean energy and other key conservative issues.

The debate gets underway tonight at 9 p.m. Eastern time.

According to the Pew Research Center, 50 percent of millennials are Democrats or lean to the Democratic Party, and 34 percent support the GOP. Some experts suggest the Republican Party could see more support from younger voters if they include the protection of the environment in their discussion.

Combs says while the parties may disagree on how to best implement energy reform, protecting the environment is something that appeals to both sides.

“The whole issue, the main issue, they do agree on that,” she says. “Especially among the young people, they get it, they understand it.”

Tonight’s debate is scheduled to run two hours, with three Fox News hosts asking questions of candidates. Donald Trump, Jeb Bush, Scott Walker, Mike Huckabee, Ben Carson, Ted Cruz, Marco Rubio, Rand Paul, Chris Christie and John Kasich will appear in the debate. Former Texas Governor Rick Perry will be among those left out of the mix.

 

Utility Dive: Senate energy bill set for a floor fight

Posted by Laura Arnold  /   August 04, 2015  /   Posted in Uncategorized  /   No Comments

Senate energy bill set for a floor fight after bipartisan support in committee

Energy committee leaders think they've put together a package that can pass both houses

Sens. Lisa Murkowski (R-AK), the committee’s chair, and Maria Cantwell (D-WA), the ranking member, intentionally worked uncontroversial, if uninspiring, amendments into the bill in committee and left the most contentious debates to the floor fight. The goal, both senators’ staffers say, was to craft legislation that could get through both houses and win the president’s approval.

“Bipartisan bills are compromises. Each side has to give on things that if they were in charge of the world they would not include,” said Rosemarie Calabro Tully, Cantwell staffer and press secretary for the energy committee. “We acknowledge the bill could use improvements.”

Robert Dillon, a Murkowski staffer and communications director for the committee, agreed.

“Certainly the bill doesn’t represent everything Senator Murkowski would have done if she wrote the bill on her own, and I am sure the same goes for Senator Cantwell,” he said.

Congress has not passed an energy policy bill since 2007, he explained, so Senators Murkowski and Cantwell chose to focus on areas of bipartisan agreement for the bill, called "The Energy Policy Modernization Act of 2015."

“This represents a middle, where policy changes can be made,” Dillon said. “Tellingly, the White House has not issued a veto threat to the bill."

Murkowski and her GOP allies could have put together a Republican "wish list" and pushed it out of committee, "but it would have faced an uphill battle on the floor because everything has to have 60 votes," Dillon said.

"Senator Murkowski is looking at the world of possible,” he said.

What's in the bill for the power sector

The 350-plus page bill has five sections, called titles, on Efficiency, Infrastructure, Supply, Accountability, and Conservation Reauthorization.

Within the titles, there are mostly pilot program proposals or limited funding for important, but not landmark programs.

But mixed in, there are a few noteworthy and contentious provisions for the power sector.

Titles I & II

In the first title, objections have been raised by environmentalists to Section 1015, which repeals the phase-out of fossil fuel use in federal buildings by 2030. It was put in place by the Energy Independence and Security Act of 2007, the last bipartisan energy bill to be signed by the president.

There also non-controversial provisions in the first title that expand customer access to utility-provided efficiency services.

The most controversial part of the bill may be Section 2201, in the second title on infrastructure. It requires a Department of Energy ruling on any application to export liquified natural gas (LNG) to a non-free trade agreement country within 45 days of the completed Federal Energy Regulatory Commission (FERC) review.

That may be a big boost to the natural gas industry, but Murkowski did not push for any other significant provisions supporting the oil and gas sector, in deference to Cantwell.

“Having the Ranking Member support the bill improves its chances of final passage on the Senate floor,” Dillion explained. “We are not interested in doing a messaging bill. That is easy. Senator Murkowski worked very hard to craft legislation that Senator Cantwell could support. She chose to move issues like oil exports and revenue sharing in separate legislation, to give the bipartisan bill its best chance.”

An amendment from Senator Elizabeth Warren (D-MA) calling for further study on LNG exports may ultimately temper the provision, if it can win enough support to be added in the final bill.

Title II, which focuses on infrastructure, was largely led by Cantwell and primarily contains provisions she is “most proud of” that were “in desperate need for being advanced,” Calabro Tully said.

She specifically noted “a $500 million, ten-year RD&D grid storage program (Section 2301), and studies, demonstrations, and planning for grid modernization, advanced grid architecture, microgrids, and distribution system and cyber-security upgrades (Sections 2302, 2303, 2304, and 2307, respectively).

“Senator Cantwell believes we need to modernize our energy infrastructureand bring it into the 21st century so we can more seamlessly integrate clean energy technologies,” Calabro Tully said. “That should have started yesterday. These provisions, and some in other titles, need to be moved.”

Title III

Though distributed generation is among the most urgent of supply side topics for utilities and energy providers, there is no agreement between Republicans and Democrats about how handle it, Dillion said.

The bill’s only mention of it is Section 2310’s requirement that “Transmission Organizations” report on “barriers to the deployment of distributed energy systems and micro-grid systems, as well as potential changes to the operational requirements for, or the charges associated with, the interconnection of these resources” to the FERC.

An amendment from Senator Angus King (I-ME) on distributed generationwas withdrawn when the committee could not reach agreement on it. “That debate may come back up when the bill hits the floor,” Dillon said.

None of these provisions are likely to have a near-term impact on utility operations.

The general absence of controversy over the third title, covering energy supply, is indicative of its lack of ambitious programs. Its provisions for coal and nuclear power are have not drawn serious ire to opponents of those controversial generation sources.

“Senator Murkowski believes all of the above should include nuclear and oil and natural gas and coal, but she has chosen to keep this bipartisan,” Dillon said of Title III.

There is practically no mention of solar and wind energy, which could potentially prove controversial with chamber conservatives, but the bill includes some limited support for research on geothermal and the ocean energies.

There was strong objection to Section 3001, which would have expandedhydropower. But when environmentalists’ concerns about its threats to waterway heath were raised, it was deleted.

Title IV & V

Title IV includes grid security and cyber security provisions that might eventually but not immediately lead to programs that will impact utility operations.

Aside from the provision about LNG in Title II, the most controversial provision in the bill as it heads to the Senate floor is probably Section 4303. It allows the executive branch to waive protections of the environment imposed on generation, delivery, interchange, or transmission of electric energy in the event of any war or emergency that poses “an imminent threat to electric reliability.”

Through this provision, environmentalists fear, an administration hostile to an environmental regulation could grant broad and immediate amnesty from it and bypass any public rulemaking or regulatory process.

The permanent extension of the Land and Water Conservation Fund (LWCF) by Title V’s Section 5002 won praise from Sierra Club Lobbyist Radha Adhar. But, she added, “what we see in the bill as negative is far greater than the good it does.”

Stakeholder reactions

The natural gas industry was quick to applaud the committee.

“This is one of the most critical issues facing the natural gas industry, saidCenter for Liquefied Natural Gas Spokesperson Casey O’Shea. “Providing developers with greater certainty during the comprehensive approval process will help unlock billions of dollars of investment and create thousands of jobs for Americans.”

The group called for senate passage so the U.S. “can begin to take full advantage of its plentiful natural gas resources.”

Section 3602’s “strong provisions to help train U.S. workers for the next generation of energy jobs,” was praised by the American Petroleum Institute.

A letter from eleven major environmental groups was less enthusiastic about the bill.

“Authoring a bill of such complexity in a bipartisan manner is a truly impressive accomplishment, but that does not justify removing key environmental protections,” agreed the Alaska Wilderness League, American Rivers, Clean Water Action, Defenders of Wildlife, Earthjustice, the Environmental Defense Fund, Friends of the Earth, Green Latinos, League of Conservation Voters, Natural Resources Defense Council, and Sierra Club.

With energy responsible for 84% of U.S. greenhouse gas emissions in 2013, “a responsible energy bill would also make it easier for the country to meet its climate goals,” the letter added. “Without a stronger vision for accelerating the development and deployment of clean energy resources this bill may prove a missed opportunity.”

“This is not the best bill possible but the people on the committee thought it was,” said Natural Resources Defense Council Government Affairs Associate Director Marc Boom. “We are trying to engage and make the bill the best it could be.”

“LNG is a big part of our concern,” Adhar said. “But LNG is not the only bad provision. Allowing the waving of environmental laws during a war is very problematic.”

Looking ahead

The first question about the bill’s fate is how the controversial amendments and issues avoided by the committee will be handled as they are brought forward on the senate floor.

“No one’s getting everything they want, for sure,” Murkowski told The Hillafter the committee vote. Committe approval was, Senator Cantwell added, “the first step in the long but important journey.”

The next step, a debate on the floor, could be delayed during the fall session by debates on the Iran nuclear deal, the Clean Power Plan, funding for Planned Parenthood, and the budget.

The Republican lack of a filibuster-proof 60 votes may limit the changes Majority Leader McConnell and Chair Murkowski allow when it does get brought up.

“Its political prospects are the million dollar question,” Adhar said. “It shows good faith that Senator Murkowski didn’t put a repeal of the crude oil export ban into the bill, but we will be watching when it gets to the floor.”

“We are hopeful the bill can be improved,” Boom said. “But we have a lot of support on the Senate floor and, given what it is and could be, we hope there is enough support to stop it if necessary.”

Any debate over the Clean Power Plan, finalized by the Obama administration Monday, is likely to precede the Murkowski-Cantwell bill and could leave some hostility behind, especially if Republicans force a presidential veto to protect the EPA rule.

The King provision on distributed generation may provoke dissension as well. And an amendment on climate change from Sen. Bernie Sanders (I-VT), which Cantwell supported in a losing committee vote, could create real confrontation.

“Senator Cantwell agrees with Senator Sanders that reducing carbon pollutionis absolutely key to America’s competitiveness and if we want to stay competitive internationally we have to find ways to integrate low carbon energy into our infrastructure,” Calabro Tully said.

The committee voting down Sanders’ amendment acknowledging that climate change is real, caused by humans, and in urgent need of action was “very discouraging,” Adhar said. “Real energy policy should make action on climate change a foundational principle. That is clearly not the case in this bill.”

That said, the permanent extension of LWCF is a “historic" provision, she added.

“Some stuff is really good. Other stuff is small steps in the right direction. And there is bad stuff,” she said. The efforts to improve grid reliability are admirable, but “climate change is the biggest threat to reliability.”

“We are at an inflection point in our energy policy," Boom said. “There is a lot more we could do to accelerate clean energy and energy efficiency without undermining protections for the environment.”

“Everybody can find something to complain about if they want to,” Dillon said. “Senator Murkowski’s goal is to move legislation that can pass the Senate and the House, be signed into law by the President, and improve the nation’s energy policies.”

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