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June 2009 Issue
June 2009
Feature 1
WINDS OF
CHANGE
Feature 2

COAXING
CONGRESS

Editorial
EDITORIAL
Wisconsin Favorites

Wisconsin Favorites
GO FISH!

ARCHIVES

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Winds of Change

More Renewables Mean Different Grid

For most of us it has not been customary to think very hard about when to flip a light switch or how the electrons get there. Now, the people responsible for the reliable operation of the electricity grid say they’re facing special, new challenges and their published remarks seem to indicate consumers can expect to notice a difference.

Adjustments that will be needed to integrate the vast additions of new wind-energy capacity anticipated in response to state and federal policy mandates “have the potential to fundamentally change the way the system is planned, operated, and used—from the grid operator to the average residential customer,” according to the North American Electric Reliability Corporation (NERC) in a report published in April.

Titled “Accommodating High Levels of Variable Generation,” the report weighs in with an examination of how wind development over the coming decade—because of wind power’s intermittent availability—will fundamentally alter the way the grid is planned and operated.

Unprecedented Expansion

The NERC is a non-governmental regulatory body that’s had the job of setting electric reliability standards and monitoring industry performance in the U.S. and Canada since 1968. Four years after the great Northeast blackout of 2003, the federal government put teeth into NERC standards, giving the organization authority to make them mandatory and enforce them for all users, owners, and operators of the bulk power system.

That task is getting bigger thanks to the unprecedented expansion of renewable generation now underway. Solar energy and other combustion-free technologies play a part, but wind is really where the action is. According to the American Wind Energy Association (AWEA), wind accounted for 42 percent of all new generation capacity added last year. More than two dozen states, up from just 10 in 2003, have renewable energy mandates and it’s generally assumed Congress will soon adopt one nationwide. In various states, percentages of electric generation that must be obtained from renewables range from 10 percent to as much as 30 percent over a time frame of five to 15 years.

In other words, to comply with state and probable federal laws, power providers will have to participate, either with their own generation or as wholesale customers of other generation owners and operators, in more than doubling renewable energy capacity over approximately the same period of time it now takes to obtain regulatory permits and build one new, conventional power plant.

Within the territory of the Roseville, Minnesota-based Midwest Reliability Organization (MRO), the NERC says an installed capacity of 45,000 megawatts of wind generation is expected by 2017. That means nine-fold growth over the less than 5,000 megawatts installed as of last year.

Operating under NERC and federal authority, the MRO serves Wisconsin, Upper Michigan, Minnesota, Iowa, the Dakotas, Nebraska, and parts of Manitoba and Saskatchewan.

Overall, the NERC’s 2008 Long-Term Reliability Assessment estimates more than 145 gigawatts of wind generation either planned or proposed by 2017 in North America. To tie that number to something more tangible, visualize building roughly 141 new Point Beach nuclear plants, or just shy of 97,000 wind turbines at 1.5 megawatts each.

If only half of the expected renewable capacity were to be built and connected over the next 10 years, it would still represent a 350-percent increase in variable generation compared with last year, the NERC says.

That’s a lot of intermittent generation spread over a broad geographic area sure to be experiencing a wide range of wind conditions at any given moment. And since the grid needs to be kept in balance—power usage matching power production at all times—the NERC and every operation it supervises will necessarily be looking for engineering and infrastructure solutions to cope with sizeable numbers of generation sources going off-line and maybe others coming on, a few or a few hundred miles away.

If alternative renewable sources aren’t available at the opportune moment, more conventional sources will need to be accessed. Figuring out how to make the grid able, on a moment’s notice, to tap whatever sources are available in an increasingly changeable supply situation is the challenge for the coming decade.

Flexible Forecasts

Planning and forecasting for grid operation will confront new challenges, the report says, noting, “The output of variable resources is characterized by steep ‘ramps’ as opposed to the controlled, gradual ‘ramp’ up or down of electricity demand and the output of conventional generation. Managing these ramps can be challenging for system operators, particularly if ‘down’ ramps occur as demand increases and vice versa.”

Errors in forecasting electricity demand are typically small, but errors in forecasting wind availability can be large, the NERC says. A 12-hour demand forecast for a system with 10 megawatts of peak demand would typically be subject to an error of about 3 percent, while a 12-hour forecast of wind availability for the same system could “readily” be subject to error of 20 percent to 100 percent, “And forecast errors grow appreciably with time horizon,” the report says.

That’s one reason why the NERC and just about everyone else in the business of moving electricity from one place to another are talking about lots of new transmission lines, especially across the upper Midwest, as discussed last month in Wisconsin Energy Cooperative News. (See “Lining Up,” WEC News, May 2009.)  Those lines will provide what Wisconsin Public Service Commission Chairman Eric Callisto has described as “optionality,” the ability to reach out to many sources of power.

Another reason for new lines is that the best renewable resources are typically a long way from the greatest concentrations of customers.

“Many new variable generation plants interconnecting to the bulk power system will be located in areas remote from demand centers and existing transmission infrastructure due to fuel [meaning wind and sunshine] availability,” the April NERC report says, noting that just 7 percent of the U.S. population lives in the top 10 states for wind potential.

This is not an unexpected challenge. In February 2008, NERC President Rick Sergel said the organization had seen “a lot of public support for wind and renewables development over the past year, but in order to realize the value of these resources, we need the same kind of support for the transmission lines that will link them to population centers.”

Variabile, Viable

As the national trade association for the wind energy industry, the AWEA said it welcomed the NERC findings, calling the report “an excellent roadmap for the grid planning and operations changes needed for America’s future electricity generation portfolio.”
AWEA CEO Denise Bode said the recommendations “open the way to upgrading grid planning and operations in ways that will make our aging electric utility system more efficient and reliable while saving consumers money.”

Today’s grid already copes with variability in generation and can similarly handle variability from renewable resources, the AWEA said.—Dave Hoopman

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Coaxing Congress

Co-ops Stress Affordability in Energy Bill Debate

 

Keeping electricity affordable and reliable under legislation seeking to deal with climate change sent leaders of cooperative electric utilities to Capitol Hill in Washington, D.C., early last month as advocates for their consumer-members.

Topping the list of concerns presented to federal lawmakers was the feared financial impact of auctioning off allowances for carbon dioxide emissions, a plan that’s part of proposed climate legislation being considered by Congress and backed by the administration.

Policymakers have advanced bills to set a national limit on the number of tons of carbon dioxide emitted by power plants and other sources and have suggested auctioning off to the highest bidder the allowances for those emissions. The auction would presumably be open to parties other than just the emitters, and it’s been estimated the resulting proceeds could produce government revenue of anywhere from $650 billion to $2 trillion over the next eight years—much of it ultimately being paid for through higher electricity rates. Electric co-op leaders from Wisconsin pointed out to legislators that in an auction where the cost of carbon dioxide reaches $50 per ton, retail electricity rates could soar 43 percent higher than today.

“We need to kill the auction; electric cooperatives can’t be put in the position of bidding against Southern Company, AEP, or Exxon Mobile,” said Glenn English, CEO of the National Rural Electric Cooperative Association, which hosted the legislative conference that drew several thousand co-op staff members and directors from across the country.

“We have to keep the Wall Street speculators out of this,” he told the co-op crowd prior to the Capitol Hill meetings, urging them to promote free allowances for retail electricity providers. The 68 Wisconsin delegates visited the offices of all Wisconsin members of Congress, also urging support for bills that would remove the exemption railroads currently enjoy from antitrust regulation. Midwestern utilities and others who have no options but rail for fuel delivery have consistently experienced discriminatory shipping rates. Senators Herb Kohl and Russ Feingold and Representatives Tammy Baldwin and Ron Kind are Wisconsin lawmakers co-authoring the rail-reform bills.

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EDITORIAL
by Perry Baird

Senator Feingold’s staff hears Wisconsin electric co-ops’ concern that rates will soar with emissions-credit auctioning.

“Kill the auction.” That was the blunt answer from a chorus of National Rural Electric Cooperative Association staff to the question of what should be the top-priority message carried to Congress by electric co-op leaders.

As they fanned out across Capitol Hill in early May, more than 3,000 directors and employees of electric co-ops—including 68 from Wisconsin—dutifully made sure lawmakers knew how concerned they were about a scheme to raise billions for federal tax giveaways by tapping electricity ratepayers.

The administration and some of its congressional allies are salivating over the revenue-raising potential of pending climate change legislation, banking that public fear of global warming will deliver them an opportune windfall of cash to redistribute. If implemented, Wisconsin electricity ratepayers could be huge losers.

Cap-and-Trade + Auction

Legislatively, the first step includes mandating reductions in greenhouse gases blamed for global warming, setting limits (caps) on the tons of carbon dioxide emitted by power plants and other sources.

Yearly decreasing from 2012 to 2019, national emissions targets would define specific CO2 tonnages for electric utilities, requiring a permit or “allowance” for each ton emitted. A utility exceeding its allotted tons could buy allowances from other permit-holders who had extra because they were ahead on their CO2 reductions. That’s the “trade” part of what’s known as “cap and trade.” Presumably determined by the market, the allowance price would be in dollars per ton, financially transacted between emitters.

Inserting an auction into the process, however, would mean in advance of any trading between CO2 sources, all or part of the emissions permits (the precise number is still in play) would be held by the government and sold off to the highest bidders. The buyers could be virtually anyone—from Wall Street speculators to cash-rich energy companies to small electric co-ops. Those buying the permits could demand even higher prices in post-auction trading.

If all permits get auctioned, the government would rake in amounts estimated at between $624 billion and $2 trillion over the eight years of the reduction program, depending on how high the per-ton cost goes.

Devious Diversion

The kicker is that pending proposals earmark less than 20 percent of the government bonanza for a purpose remotely associated with climate change, such as development of renewables and carbon storage. Tax credits to all lower- and middle-income wage earners would be funded by the rest, essentially paid for by increased electric rates in states, such as Wisconsin, that currently have larger percentages of power generation fueled by CO2-producing coal. In essence, Wisconsin pays dramatically higher electric rates so California (low coal reliance) can get its share of income tax breaks.

Would the government be inclined to let such a lucrative funding source ever lapse? The feds might just recognize that weaning the country from CO2 emissions—once auctions start netting high revenue—might not actually be in their best financial interests. It could become like the cigarette tax: Heaven help the treasury if everybody actually quits smoking.

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Wisconsinites are blessed with a multitude of streams and rivers, small and large lakes, and the shores of Lake Michigan and Lake Superior. Though virtually every county in Wisconsin provides some fishing opportunities, some areas stand out as fishermen’s meccas.

Besides the two Great Lakes and the Mississippi River, these include the lakes and rivers in Bayfield, Douglas, and Ashland counties, bordering Lake Superior; the rapid-running Wolf River and any one of Wisconsin’s some 2,000 trout streams; Door County; Sawyer County’s many waters in the Hayward area; and the Eagle River area. So grab your own fishing gear, invite everyone along, and hitch up your boat if you’re lucky enough to own one.

A good weekend to begin is June 6–7, which is Free Fishing Weekend in Wisconsin. This event is designed by the Department of Natural Resources (DNR) to encourage families to fish together. People are urged to participate in special events at many parks, including state parks. The latter also have free admission on June 7. Some DNR regional offices even loan out fishing equipment.

If the fishermen in your life thrive on competition, there are many fishing events, large and small, that offer prizes. Many such contests are catch-and-release, so if you want to keep your catch, please make sure your event allows you to do so. Just a few of the state’s many contests are listed here.

On June 6–7, catch the Boulder Junction Walleye Tournament, a catch-and release event; 715/385-2400). June 6 features Medford’s Esadore Lake Association Fishing Classic for Children (715/748-4509). On June 20, head to Rib Lake for the Spirit Lake Summer Fishing Contest (715/427-3778). June 20–21 is the Professional Musky Tournament in Eagle River; in conjunction, the Eagle River area sponsors the family-oriented National Championship Musky Open, June 21–23 (800/359-6315). On June 27, the Westboro Conservation Club sponsors a 10 a.m. fishing contest at Mondeaux Dam, with a children’s casting contest at 1:30 (715/427-5614). The Hayward Lakes area boasts several events. On June 13–14, try the Quiet Lakes Crappie-A-Thon at the Happy Hooker (715/462-3379). Hayward’s Musky Festival includes a catch-and-release contest, including a photography contest, in all Hayward waters on June 26–28 (715-634-8662). And you can eat what you catch on June 20–21 at the Double G’s Big Chip Fish Fest on the Chippewa Flowage. This event is a selective harvest of 14–19-inch large-mouth bass and of northern pike measuring 32 inches and under. All fish are cooked on the site (715/634-9929).

For the ultimate Father’s Day experience, why not charter a fishing boat on one of our Great Lakes? Many charters are available up and down the Lake Michigan coast, and you’ll find many charters in the Port of Superior. Other choices are in Port Wing (Day-O Charter, 715/774-3354); Ashland (Dave’s Charter Service, 715/682-3379); and Saxon (The Tracy Lee, 715/893-2285 or 562-0218). Your Great Lakes adventure may allow you to reel in mammoth lake trout, Chinook or coho salmon, steelhead, walleye, or other deep-water fish.

Take your father, take your family, or sneak off by yourself—and go fish!—Linda Hilton

For more information, look for your destination, such as Hayward, on the Internet, or visit www.dnr.state.wi.us. The latter site will let you know about events, fishing sites, fishing clinics, and regulations. Also visit www.midwesttroutfishing.com and www.flyfishingwis.com for events, equipment, and other information. For charter fishing on the Great Lakes, visit www.sportsmansresource.com and www.superiorcharterfishing.com

 

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©2009 Wisconsin Energy Cooperative News