Author Archives Laura Arnold

Duke Energy Indiana 2013 Integrated Resource Plan (IRP) Stakeholder Engagement Workshop Dec. 5, 2012

Posted by Laura Arnold  /   November 30, 2012  /   Posted in Uncategorized  /   No Comments

Dear IndianaDG Readers:

Just when I was hoping things might slow down for the Holidays, energy/utility events and activities seem to be accelerating. Please find below information about Duke Energy Indiana's Integrated Resource Planning (IRP) upcoming "stakeholder engagement process". To get a flavor of what is involved and/or contained in an electric utility's IRP please scroll down to download a copy of Duke's last IRP from 2011.  You can also find a copy of this document on-line at http://www.duke-energy.com/pdfs/2011_Indiana_IRP_Plan.pdf.

Two other things happened yesterday involving  Duke Energy yesterday:

Don't blink or you might miss something!

Laura Ann Arnold

Duke Energy Indiana has established a stakeholder engagement process to inform our 2013 Integrated Resource Plan (IRP) in compliance with the proposed Commission IRP rule. Duke Energy Indiana has hired Dr. Marty Rozelle of The Rozelle Group, Ltd. to help design and facilitate the IRP stakeholder engagement process. She is an independent public participation specialist who regularly works with companies, government agencies, and local communities on stakeholder outreach activities.

Objectives

Duke Energy Indiana has four main objectives for this stakeholder engagement process.

  • Listen: Understand our stakeholders' concerns and objectives.
  • Educate: Increase stakeholders' understanding of Duke Energy Indiana's current and future energy situation, challenges, choices, complexity of resource decisions and need for flexibility.
  • Feedback: Provide a forum for productive stakeholder feedback on specific topics at key points in the IRP process to inform Duke Energy Indiana's decision-making.
  • Comply: Comply with the proposed Commission IRP rule.

Advisory process overview

Duke Energy Indiana will seek participants' feedback throughout the IRP development process. At the core of the process is a series of four workshops.

Integrated Resource Plan Overview

Duke Energy Indiana will be filing its 2013 Integrated Resource Plan (IRP) for the State of Indiana with the Indiana Utility Regulatory Commission by November 1, 2013. This plan, a 20-year forecast required by the Commission, outlines how we will serve our existing and future customers in a reliable and economic manner. Duke Energy Indiana uses the resource planning process to identify the best options to serve customers' energy and capacity needs in the future. As reference, the 2011 Duke Energy Indiana's IRP is available for download through the link in Related Links above right.

Download HERE > 2011_Indiana_IRP_Plan_Duke Energy Indiana

Pew Trust: Amendment adopted to preserve DOD’s ability to purchase and invest in advanced biofuels; Lugar-Yea, Coats-Nay

Posted by Laura Arnold  /   November 29, 2012  /   Posted in Uncategorized  /   1 Comments

Dear IndianaDG Readers:

Further amendments to the Senate Defense Programs Bill Continue on the floor of the US Senate.

To watch go to:  http://c-span.org/Live-Video/C-SPAN2/ 

The vote was on S.Amdt. 2985 to S.3254 and was passed 62-37.

Indiana's US Senators voted as follows:

Lugar (R-IN) Yea

Coats (R-IN) Nay

Thank you Sen. Lugar!

Laura Ann Arnold

Statement by Phyllis Cuttino, director, Pew Project on National Security, Energy and Climate, regarding the passage of a National Defense Authorization Act amendment to preserve the Department of Defense’s ability to purchase and invest in advanced biofuels.

WASHINGTON (Nov. 28, 2012) – “Today, the U.S. Senate preserved the Department of Defense’s ability to purchase, test and certify advanced biofuels for ships, airplanes and vehicles. We applaud the 62 senators, including Mark Udall (D-CO) and co-sponsors, for supporting the military’s clean energy initiative. Advanced biofuels will help reduce the Pentagon’s dependence on foreign oil, protect the fuel budget against the volatile price of oil and strengthen our national security.”

NOTE:

There could be another vote on advanced biofuels. Sen. Kay Hagan’s (D-NC) amendment would strike Section 2823 (Sen. McCain) which would prohibit the Navy’s ability to provide funds for the Memorandum of Understanding (MOU) with the departments of Agriculture and Energy in fiscal 2013 unless Congress specifically authorized it through an act of Congress. The MOU, signed by President Barack Obama in 2011 (http://1.usa.gov/TfuS9Y), established the public-private initiative to spur commercial production of drop-in advanced biofuels for the military’s energy needs through the construction of biorefineries. We hope the sense of the Senate prevails on this matter as well.

Media Contact: Tracy Schario, tschario@pewtrusts.org202-540-6582

Heartland Institute Joins ALEC to Repeal State Renewable Portfolio Standard (RPS) Laws; Does Your State Legislator Belong top ALEC?

Posted by Laura Arnold  /   November 29, 2012  /   Posted in Uncategorized  /   No Comments

Dear IndianaDG Readers: 

Three Indiana state legislators are prominent members of the American Legislative Exchange Council (ALEC) as follows:

Please visit the ALEC website to learn more about this organization and to see if your state legislators are members. For example. the ALEC website lists the following State Chairman:

  • Ohio: Rep. John P. Adams
  • Michigan: Sen. Michael Green
  • Illinois: Sen. Kirk W. Dillard and Rep. Renee Kosel
  • Kentucky: Sen. Tom Buford and Rep. Mike Harmon
  • Missouri: Rep. Timothy W. Jones and Rep. Jason T. Smith
  • Wisconsin: Rep. Scott Suder and Rep. Robin J. Vos

I have not listed all the ALEC State Chairman but just the one's I thought would be of the greatest interest to IndianaDG Readers.

Laura Ann Arnold

Climate skeptic group works to reverse renewable energy mandates

By , Published: November 24, Washington Post

Angel Navarrete/Bloomberg - Twenty-nine states and the District of Columbia have binding renewable standards; in the absence of federal climate legislation, these initiatives have become the subject of intense political battles.

The Heartland Institute, a libertarian think tank skeptical of climate change science, has joined with the conservative American Legislative Exchange Council to write model legislation aimed at reversing state renewable energy mandates across the country.

The Electricity Freedom Act, adopted by the council’s board of directors in October, would repeal state standards requiring utilities to get a portion of their electricity from renewable power, calling it “essentially a tax on consumers of electricity.” Twenty-nine states and the District of Columbia have binding renewable standards; in the absence of federal climate legislation, these initiatives have become the subject of intense political battles.

The legislative council, or ALEC, is a conservative-leaning group of state legislators from all 50 states that has sought to roll back climate regulation in the past. It lost some corporate sponsors early this year because of its rolepromoting “stand your ground” laws that allow the use of force in self-defense without first retreating when faced with a serious threat.

But the involvement of the Heartland Institute, which posted a billboard in May comparing those who believe in global warming to domestic terrorist Theodore J. Kaczynski, shows the breadth of conservatives’ efforts to undermine environmental initiatives on the state and federal level. In many cases, the groups involved accept money from oil, gas and coal companies that compete against renewable energy suppliers.

The Heartland Institute received $736,500 from Exxon Mobil between 1998 and 2006, according to the group’s spokesman Jim Lakely, and $25,000 in 2011 from foundations affiliated with Charles G. Koch and David H. Koch, whose firm Koch Industries has substantial oil and energy holdings. Lakely wrote in an e-mail that the Koch donation was “earmarked for our work on health care policy, not energy or environment policy.” He added the institute had received financial support from the Koch brothers before 2001, but did not specify how much.

James Taylor, the Heartland Institute’s senior fellow for environmental policy, said he was able to persuade most of ALEC’s state legislators and corporate members to push for a repeal of laws requiring more solar and wind power use on the basis of economics.

“Renewable power mandates are very costly to consumers throughout the 50 states, and we feel it is important that consumers have access to affordable electricity,” Taylor said. “We wrote the model legislation and I presented it. I didn’t have to give that much of a case for it.”

Taylor dismissed the idea that his group pushed for the measure because it has accepted money from fossil-fuel firms: “The people who are saying that are trying to take attention away from the real issue — that alternative energy, renewable energy, is more expensive than conventional energy.”

Todd Wynn, who directs ALEC’s energy, environment and agriculture task force, said the group decided to take up the issue because some of its members are worried about the mandates’ “impacts on their state’s economies and their constituents.”

“It is not that ALEC is opposed to renewable energy in any way,” Wynn said. “But we are opposed to government intervention mandating certain energy sources over others.”

But renewable energy officials — including ones from the Solar Energy Industries Association and the American Wind Energy Association, both ALEC members — questioned the new policy. Setting renewable targets is a popular way to diversify a state’s energy mix and lock in long-term prices, they said, while alternative energy costs continue to decline.

“ALEC is going to wake up and realize that the Heartland Institute, which is funded by special interests, is pushing them in a direction that’s making them irrelevant to, or at best out of touch with, the American public,” said SEIA President Rhone Resch. “And they can’t afford to do that.”

As part of its effort to roll back renewable standards, ALEC is citing economic analyses of state policies co-published by Suffolk University’s Beacon Hill Institute and the State Policy Network. Both groups have received donations from foundations funded by the Koch brothers.

The analyses — which examine current or proposed standards in such states as Kansas, Maine, Michigan, Missouri, North Carolina and Oregon — assume that the Energy Information Administration’s projected renewable energy price estimates are too low, and that cost-containment measures embedded in state policies will fail. As a result, the reports conclude Kansas’s requirement to obtain 20 percent of its electricity will cost consumers $644 million over the next eight years, while Oregon’s goal of 25 percent renewable electricity by 2025 will cost consumers $992 million by 2025.

Beacon Hill Institute research economist Michael Head said he and his two co-authors were skeptical the cost caps outlined in legislation would kick in.

“We just left it out so we could provide the actual analysis of the policy itself,” Head said, adding that the central question is not whether renewable energy costs more but “the matter of degree. You’re certainly going to have these higher electricity prices. They will have profound negative consequences for the states’ economies.”

But Gabe Elsner, co-director of the public watchdog group Checks and Balances Project, said the legislation and economic reports amount to “a one-two punch against clean energy laws across the country” by fossil-fuel interests.

“You push the legislation to state legislators and then you fund reports to support the argument and convince state lawmakers,” Elsner said, “and all without any transparency or disclosure about the sources of this funding.”

David G. Tuerck, executive director of the Beacon Hill Institute and chair of Suffolk University’s economics department, said Koch funding did not determine the report’s conclusions about renewable energy.

“Koch certainly has not had the only role in funding these studies,” Tuerck said, adding the other donors had asked to remain anonymous.

It remains unclear whether the new drive to repeal state renewable standards will succeed: Similar efforts over the past two years have failed in California, Colorado, Connecticut, Kansas, Massachusetts, Ohio, Oregon and Washington.

“Renewable standards passed over the last decade have been supported on a bipartisan basis, and that was before the dramatic growth in manufacturing and construction jobs the industry created,” said Rob Gramlich, the American Wind Energy Association’s senior vice president for public policy. “Attacks on state renewable energy policies in 2012 failed consistently and we are confident they will again in 2013.”

Wynn said that while it may be hard to make headway in the next year, he was optimistic his side could start to dismantle some of the state requirements in 2014.

“These discussions are just starting to ramp up, and the impacts of these mandates are just starting to be seen in these states,” he said.

Resch said despite the policy differences between the state legislators’ group and his industry, his group would maintain its membership.

“We’re committed to work with conservatives, and ALEC is a vehicle to do that,” he said.

Hoosiers Rally and Deliver 2,000 Petitions to Indianapolis Power and Light (IPL) Headquarters

Posted by Laura Arnold  /   November 29, 2012  /   Posted in Uncategorized  /   No Comments

FOR IMMEDIATE RELEASE

November 28th, 2012

Contact: Megan Anderson, 812-325-0685megan.anderson@sierraclub.org

Pastor Wyatt Watkins, 317-750-5873watkinsdt@aol.com

Kerwin Olson, 317-702-0461kolson@citact.org

Indianapolis Beyond Coal Campaign Launch Event
Indianapolis, IN – Today (11/28/2012) dozens of concerned ratepayers and community members gathered at Monument Circle to mark the launch of the Sierra Club’s Indianapolis Beyond Coal Campaign by delivering a growing list of 2,000 petitions to Indianapolis Power and Light’s (IPL) Headquarters opposing rate increases to keep IPL’s aging coal plants online and asking instead that IPL move toward clean energy.

“Coal-fired power plants emit tremendous quantities of greenhouse gasses into the atmosphere, causing global climate change,” said Gabriel Filippelli, Professor and Director of the Center for Urban Health, IUPUI.  “But they also emit significant amounts of the toxic element mercury, much of it depositing right here in central Indiana, polluting our waterways, fish, and children.”

The negative impacts of coal go beyond public health and the environment by also impacting Hoosier’s wallets.

“In addition to wreaking havoc on public health and environmental quality, coal has become a detriment to our economy,” said Kerwin Olson, Executive Director Citizens Action Coalition, a consumer advocacy group. “Over the last ten years, the ratepayers of IPL have seen their bills increase nearly 44%, largely as a result of the costs associated with burning coal.  It’s long past due for IPL to shift gears and invest aggressively in energy efficiency and clean, renewable energy so Hoosiers can save energy, save money, and breathe easy.”

IPL can decide to retire some of its outdated, polluting coal burning units to prevent premature death and asthma in the Indianapolis community and invest in clean, renewable energy solutions. Instead, IPL wants to charge customers $606.1 million to upgrade their aging coal burning units at Harding St. and Petersburg. With the cost of coal rising and clean energy prices plummeting, utilities across the country move to add diversity in their energy mix.  Despite this growing trend, IPL has no plans to invest in clean energy solutions in the foreseeable future. These upgrades could mean IPL would continue to burn dirty coal in Indianapolis for decades to come.

Many Indianapolis residents feel they have paid the price for coal plant pollution in Indianapolis for far too long.  IPL’s Harding Street coal plant has two smaller units that lack pollution controls, and the company has no specific retirement date set.

“My son has had asthma since he was 7 weeks old, and with a baby on the way, cleaning up in the air in Indianapolis is even more urgent,” said Niesha McKinley, a concerned parent in Indianapolis. “Everyday IPL’s coal plant operates is another day my children are exposed to toxic pollution;  IPL needs to retire it’s old dirty coal burning power plant as soon as possible, and move toward clean energy.”

These upgrades will fail to address dangerous carbon pollution and coal ash. IPL already has eight coal ash ponds located near the plant and the White River. The Environmental Protection Agency ranked some of these ponds as “high hazard” meaning that a failure could cause loss of life and/or property damage.

“All the major faiths affirm the intrinsic worth of the planet and the call to cherish and keep it; they likewise call us to love our neighbors and act for the welfare of the vulnerable among us, who consistently suffer first and foremost when we abuse the environment,” said the Rev. T. Wyatt Watkins, Co-Pastor of Cumberland First Baptist Church in Indianapolis and Board Chair for Educational Programming for Hoosier Interfaith Power & Light.

The group, who is partnered with CREDO Action, will continue gathering comments and petitions until January 28th calling on IPL to move beyond coal.

#  #  # 

Logansport (Indiana) Seeking Proposals For New Power Plant

Posted by Laura Arnold  /   November 28, 2012  /   Posted in Uncategorized  /   No Comments

Dear IndianaDG Readers:

Does anyone think that it is a reasonable expectation for this project to look for a target price as follows:

"The upgrade and expansion must be able to generate electricity at a target cost to LMU of no greater than 5.5 cents/kilowatt-hour."

I would like to hear what people out there think about this RFP issued by the City of Logansport. I would like to have some discussion on this.

Laura Ann Arnold

From InsideINdianaBusiness.com Report

The city of Logansport is accepting proposals to upgrade its current power plant to use waste-to-energy technology and build an additional facility. Proposals are due in January and if implemented, the city expects the project to be complete in 2017.

November 27, 2012

News Release

LOGANSPORT, Ind. - Mayor Ted Franklin today announced the release of a Request for Proposals (RFP) that will assure long-term energy independence for Logansport and create a competitive electrical rate structure to attract new commercial and industrial development in Logansport. The RFP endorsed by the Logansport Utilities Services Board (Board) on November 27, 2012 requests proposals from private sector firms to repower the existing 38 MW power plant operated by the Logansport Municipal Utilities (LMU) and to build a new power plant in Logansport that will bring LMU's total generating capacity to 300 MW.

The RFP seeks proposals based on three key elements:

1. A public-private partnership will be used to finance the project where private sector firms pay all development and construction costs and LMU operates and purchases the facilities through a lease to purchase arrangement using electrical power sales to pay the costs. LMU and the City of Logansport will not issue bonds to finance any portion of the project.

2. The upgrade and expansion must be able to generate electricity at a target cost to LMU of no greater than 5.5 cents/kilowatt-hour.

3. The primary fuel source for the repowered power plant and the new power plant must be clean-burning refuse derived fuel (RDF) pellets. Natural gas may be used as the backup fuel.

"By using a public-private financing option, this proposal will assure Logansport can retain control over its electricity generation at a cost savings for LMU’s customers," said Mayor Franklin. "Moreover, this arrangement will enable LMU to offer low-cost electricity that will create a significant economic advantage for attracting new jobs through commercial and industrial development."

"LMU is at a crossroads. Our demand for power is going up, but new environmental regulations will make burning coal in the existing power plant too costly," said LMU Superintendent Paul Hartman. "To remain an independent local electrical utility and provide low-cost electricity means that we have to find creative solutions. Expanding our capacity by using RDF pellets to provide clean energy is a cost-effective and environmentally beneficial approach. Any proposal will have to pass rigorous environmental and community scrutiny to move forward, and we hope that as many viable proposals as possible are submitted for consideration."

"LMU has reviewed many options for generating electricity independently, and converting to RDF pellets and expanding our capacity is the most rational approach for retaining our independence and reducing costs to our customers" said LMU Electric Generating Plant Manager Greg Wengert.

"An independent team of experts reviewed previous studies and determined this approach is the best way to keep control of electricity generation and make our rates very competitive for economic development."

Proposals to upgrade and expand LMU's power generation facilities are due by January 11, 2013. If implemented, the Phase I repowering of the existing power plant would be completed no later than 2016. Construction of the new power plant would likely be completed in 2016-2017.

The City will evaluate proposals based on the responders' experience with the proposed technology, the quality of their technical proposal, and an assessment of their ability to deliver electricity at the desired purchase price level.

Economic Benefits

Two aspects of the RFP assure economic benefit for Logansport. Using the public-private partnership arrangement will allow the cost of financing the project to be provided by the private developer. LMU and the City of Logansport will not issue bonds to pay for any part of the project. Furthermore, any bidder on the project must demonstrate the ability to generate electricity at a cost in the range of 4.5 to 5.5 cents per kilowatt-hr. This will ensure LMU's electric rates are low for its current customers and will be competitive to attract new commercial and industrial development to Logansport.

Environmental Benefits

The RFP includes accepting Logansport's municipal waste stream for incorporation into the RDF pellets. This will significantly reduce the need for local landfill capacity in the future. Special consideration shall be given to proposals where production of RDF will be within the service area of LMU, thereby creating jobs within Cass County and expanding the local tax base.

"One critical way for cities to address environmental sustainability is to move away from traditional methods of landfilling waste" said Alvaro Almuina, the Project Leader for LMU’s technical study that recommended the upgrade and expansion project. "Municipal waste has incredible energy value. It simply makes sense to make use of that energy as a fuel instead of burying it in the ground. Burning RDF pellets has significantly lower emissions than burning coal."

The next steps of this process will undergo extensive community oversight and environmental reviews, including public meetings, public hearings, and permitting approvals from the Indiana Department of Environmental Management.

Waste-to-Energy Technology

"Waste-to-energy technologies represent a significant advance in sustainable power generation development in North America. Specifically, the processing of municipal solid waste (MSW) to create refuse derived fuel (RDF), a sustainable growth industry in itself, provides for community-based energy solutions using mature, reliable technology.

Throughout Canada, for example, RDF processing, marketing and utilization covers a broad spectrum of industrial, commercial and institutional applications including district energy, cement lime kiln heating, greenhouse heating and cooling, and power generation. The waste-to-energy solution represents a lower and predicable cost of energy with multiple environmental benefits as compared to burning fossil fuels." says Bill Harvey, Enwave Energy Corporation Vice President of Project Development.

Logansport Council President Charles W. Hastings noted "the recommendations of the study team represent a reasonable and practical solution for the community of Logansport."

Source: The City of Logansport

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