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New Mexico Coalition for New Energy Technologies Update

8 July 2003

 

Incorporating News from the Arizona, Colorado and Utah Coalitions for New Energy Technologies

 


 

In This Edition:

 

Welcome to New Coalition Members

 

Calpine Corporation

Independent Bankers of Colorado

 

Announcement

 

Call for Companies to NREL’s 16th Industry Growth Forum:  Financing the Path to Clean Energy and a Hydrogen Future

 

Regional Regulatory News

 

Arizona             Corporation Commission Releases Cost Evaluation Working Group Report

Arizona             Supreme Court Hands Down Victory for Home Solar Systems

Colorado           Sopkin Op-Ed Pans Wind Energy; Rebuttals by Lehr and Driver/Geller Printed

 

Regional Legislative News

 

Interim Legislative Committees, Task Forces and Advisory Councils in Arizona, Colorado and Utah:

Arizona             Solar Energy Advisory Council

Arizona             State Energy Code Advisory Commission

Colorado           Transportation Legislation Review Committee

Utah                 Energy Policy Task Force

 

News Items from Members of Western Business Coalition for New Energy Technologies

 

 

Regional News

 

Regional           Solar-powered Cars to Race Route 66

Regional           “Disastrous” Western Fuel Shortages Forecast by Trade Association

Arizona             Arizona Utilities’ Renewable Energy Activities Profiled

Arizona             Solar Panels Return Power to SRP’s Grid

Colorado           Push for wind power hits Summit County

Colorado           Governor Owens Receives Energy Efficiency Award

Colorado           Lamar Approves $5 Million Bond Issue; Wind Cited as “Cheapest Source of Power Available”

Colorado           Wind Energy and Rural America:  Opportunities, Issues and Challenges

Colorado           Secretary of Energy Abraham Visits NREL; DOE Launches New Energy Savers Website

Colorado           Governor’s Energy Office Launches Anemometer Loan Program

Colorado           “Rural Road Shows” Focusing on Focus on Wind, Biodiesel and Bioethanol Held in Colorado

Colorado           Xcel Energy Demand-Side Management Program Saves Millions; SWEEP Replies to Article

Colorado           Energy Technology, Policy Focus of New Graduate Curriculum at CU-Boulder

New Mexico      PNM Lowers Price of Renewable Energy

New Mexico      New Mexico Working Group on Biomass Industry Development Formed

New Mexico      Governor Richardson’s Clean Energy Plans Articulated

 

National News

 

 

International News

 

 

Upcoming Events

 

Arizona             Southwest Renewable Energy Conference and Fair, Flagstaff, 7-10 August

Arizona             UPEX 2003, Scottsdale, 7-11 October

Colorado           Renewable Energy Forums, Various Locations in July and August

Colorado           Fuel Cell Expert Open Houses, Denver, 12, 19 and 26 July and 2 August

Colorado           Renewable Power Summit, Boulder, 21-22 July

Colorado           FERC Western Energy Infrastructure Conference, Denver, 30 July

Colorado           ”Saving Water: Smart Strategies To Improve the Bottom Line for Business, Industry and Municipalities,” Denver, 14 August

Colorado           Sustainable Resources 2003, Boulder, 29 September – 4 October

Colorado           2003 Engineers Without Borders USA Conference, Boulder, 4-5 October

New Mexico      Natural Building Colloquium 2003, Kingston, 5-11 October

Utah                 Utah Wind & Solar Energy Conference, Salt Lake City, 1 October

 

Illinois               Green Power Marketing Conference, Chicago, 3-5 November

 


 

Welcome to New Coalition Members

 

Calpine Corporation
www.calpine.com

Denver

 

Calpine is one of North America's leading power companies — innovative, fully integrated and committed to fulfilling the continuing need for clean, efficient, reliable electricity in an environmentally responsible manner.

 

 

Independent Bankers of Colorado

www.ibcbanks.org

Denver

 

The mission of the Independent Bankers of Colorado is to enhance and promote strong, profitable, independent community banks; advance common legislative and regulatory concerns; provide a forum that promotes ideas, relationships and communication of common objectives.  It is IBC’s mission to serve and promote our communities throughout Colorado.

 

 

[For complete member lists of the Arizona, Colorado, New Mexico and Utah Coalitions for New Energy Technologies, visit the respective state sites at www.newenergytechnologies.org]

 

 

NREL 16TH INDUSTRY GROWTH FORUM:  FINANCING THE PATH TO CLEAN ENERGY AND A HYDROGEN FUTURE

—Call for Company Applicants to Austin Event in November

 

The National Renewable Energy Laboratory (NREL) reports that its Industry Growth Forum in Austin, Texas on 17-19 November will showcase at least 35 promising clean energy companies poised for market growth.  NREL is now accepting applications from clean energy companies who would like to present to an audience of the country's leading clean energy investors.  Presenters are selected through a competitive process managed by NREL.  The applications are reviewed and scored by a selection committee of leading energy investors. 

 

The forum will feature 3 days of networking and company “business case” presentations to promote and enhance the success of new ventures, emerging businesses, and the growth of entrepreneurship in the clean energy sector.

 

Events include:

  • An opportunity to compete for the 2003 National Clean Energy Venture Award of $10,000 for the best presentation

  • The Texas Green Ventures Dinner, featuring invited speakers Texas Governor Rick Perry and Global Business Network's Peter Schwartz

  • Pre-Conference Workshop:  Project Financing and Linkages with Venture Capital

  • A preview of promising early stage renewable, hydrogen and other clean energy companies

 

Applications to present your business plan will be accepted through 1 August 2003.  If your clean energy business would like to participate, please contact us directly and/or fill out the application template located at http://www.incubator.com/nrel/ by 1 August.

 

The Forum application contact person is Helen Brauner, an Associate at the Clean Energy Incubator, 512-305-0026.

 

 

Regional Legislative and Regulatory News

 

Arizona

 

ARIZONA CORPORATION COMMISSION RELEASES COST EVALUATION WORKING GROUP REPORT

 

The final report of the Arizona Corporation Commission’s Cost Evaluation Working Group was released on 30 June.  Evaluating the costs, benefits and impacts of Arizona’s Environmental Portfolio Standard (EPS), the report contains detailed information on all facets of the standard, including its history and implementation, along with policy recommendations.  The group notes that “[a]lthough there was not consensus reached on all issues discussed by the CEWG, there was general consensus on the following matters:”

 

  • Although the EPS has been in effect for only 18 months, it is producing significant benefits within Arizona including improved environmental impacts, increased experience in installing renewable capacity, development of in-state renewable resource infrastructure, and job creation.

  • Costs associated with solar electric technologies have declined substantially from costs prior to adoption of the EPS.

  • The costs for non-solar renewable technologies—including geothermal, wind, biomass, and landfill gas—are generally lower than the costs of solar generation, and participating utilities have identified projects incorporating these technologies that will make progress towards meeting the EPS.  In some cases these costs are competitive with traditional fueled generation.  However, opportunities for cost-effective non-solar renewable energy projects in Arizona are resource limited.  Because of the size and ubiquitous availability of Arizona's solar resource, it can represent a major contribution to the long-term energy future of the state and support a large industry creating in-state jobs and economic and environmental benefits.

  • The current EPS model, where utilities are responsible for collecting and controlling EPS funds, has a significant policy value because it enables utilities to eliminate financing costs for capital intensive renewable generation projects.  This expensing feature is essential to the success of the EPS and should be continued.  This model also allows the LSEs to pursue multiple technologies, continue assessment of least cost opportunities, and continue a strong diversity of solar renewable energy development and implementation until solar generation development costs become competitive with traditional resources.

 

The group provided two key possible policy recommendations for consideration by the Corporation Commission consideration, “in no particular order:”

 

  1. Take no action at this time and leave the annual renewable energy target at 0.8 percent of retail energy sales for all Load-Serving Entities (LSEs) until a future review determines that either EPS funding is sufficient, or solar generation costs have declined to the point for EPS program success for all LSEs at the 0.8 percent level, then increase the program percentage to 1.1 percent.

  2. Continue the renewable energy requirement increase to 1.1 percent by 2007.

 

The Cost Evaluation Working Group’s final report can be downloaded (526 kb) from the Corporation Commission’s website.

 

 

ARIZONA SUPREME COURT HANDS DOWN VICTORY FOR HOME SOLAR SYSTEMS

 

Michael Neary of the Arizona Solar Energy Industries Association (AriSEIA) writes on 1 July that “the Arizona Supreme Court has denied the request from the Garden Lakes Community Association and approximately 30 other homeowners associations (HOAs) to hear an appeal of the lawsuit against the Speaks and Madigans.”

 

Neary continues:  “We are committed to continue our outreach program to the HOAs so that we may encourage them to adopt guidelines for the aesthetic installation of solar energy systems.”

 

For background on this issue, see the Arizona Coalition for New Energy Technologies newsletter of 28 April:  Court Says Homeowners Have a Right to use Solar Energy.

 

 

Colorado

 

SOPKIN OP-ED PANS WIND ENERGY

—Energy Efficiency Left Unmentioned by Colorado PUC Chairman

 

In an op-ed in the 15 June Rocky Mountain News entitled “Overreliance on natural gas means higher bills,” Greg Sopkin, chairman of the Colorado Public Utilities Commission, writes:

 

“If you live in the Denver metro area, you may have noticed that over the past 12 months your natural gas bill increased about $10 per month, and your electric bill about $7.50. What you might not know is that these increases are likely only the beginning of a trend related to natural gas prices…Your higher electricity and gas bills are almost solely due to increased reliance on natural gas, and the conventional wisdom is that natural gas prices for the rest of the decade will be double the average for the last decade…natural gas generation increased from being less than 1 percent of Public Service Co.'s fuel energy mix in 1996 to about 25 percent now.  And more gas-fired generation is coming on line soon.”

 

[…]

 

While wind power might offer some help at the margin, it cannot be a large portion of the energy mix because of the costs of backup generation (the wind does not always blow) and ancillary costs associated with dispatch and transmission. Finally, hydrogen-based fuel-cell technology is probably more than a decade away from being commercially viable.

 

Two Rebuttals to Sopkin Article Printed

 

The Rocky Mountain News printed two separate rebuttals to Sopkin’s op-ed of 15 June.  The first was written by Ronald Lehr, an attorney with the American Wind Energy Association and former chairman of the Colorado PUC, while the second was co-written by Bruce Driver, executive director of the Land and Water Fund of the Rockies and Howard Geller, executive director of the Southwest Energy Efficiency Project.

 

Excerpts from Ronald Lehr’s Response, printed in the Rocky Mountain News of 27 June 2003:  “Don't discount wind power's benefits

 

“Wind power does indeed offer help at the margin…The American Wind Energy Association, responding to Federal Reserve Chairman Alan Greenspan on the same issues Sopkin addressed, recently calculated that the current natural gas shortage amounts to 3-4 billion cubic feet per day…The association estimates that wind farms already in place, and those that will be installed by the end of this year, will save about a half-billion cubic feet of natural gas per day in 2004…There is no evidence that wind power cannot be a large portion of the energy mix. European utilities are integrating large percentages of wind power. Parts of Germany, Denmark and Spain are producing 20 percent to 40 percent of their electric power today with wind.”

 

[I]n one of its 2001 decisions, Sopkin's own PUC found no basis for another assertion he made - that backup costs present an economic barrier to wind power…Public Service Co. (Xcel) itself has also funded a detailed study of wind backup costs through the Utility Wind Interest Group. The study showed wind backup costs at less than $2 per megawatt-hour.  Research by Bonneville Power Administration and Pacificorp shows results consistent with the Xcel/UWIG findings. There is no source of documented data or peer-reviewed literature of which I am aware that shows high backup costs for wind. The factual evidence is all to the contrary.”

 

Lehr goes on to address the issues of ancillary and integration costs of wind energy, pointing out that the electric grid was “built to flex.”  He adds that wind forecasting is improving and that multiple wind sites smooth wind output.  He concludes by noting that “the wind power industry shares an interest in solving [transmission] challenges with customers large and small.”

 

 

Excerpts from Response by Bruce Driver and Howard Geller, printed in the Rocky Mountain News of 7 July 2003:  “A clean, affordable energy future

 

“In his Speakout column…Sopkin called attention to rising natural gas prices and said that high prices were unavoidable unless we develop more coal resources, drill more public lands for natural gas, and bring more nuclear power plants online.”

 

“Fortunately, there is another, much cleaner and less expensive vision of Colorado's energy future.  That vision follows the lead of citizens and communities that have already taken direct action to use energy more efficiently, invest in renewable energy and develop our conventional fuel sources more responsibly.”

 

Driver and Geller go on to provide examples of how energy efficiency and renewable energy can help “drive down our energy bills without the environmental damage and economic risk associated with fossil-fuel and nuclear-energy development.”

 

Driver and Geller note that “Coloradans increasingly understand where the future lies,” pointing out recent community actions by Fort Collins, Lamar, Boulder and other municipalities in advancing energy efficiency and renewables.  The conclude by declaring that “[w]e encourage Sopkin to take his cue from the citizens and communities of Colorado and use his leadership position on the Colorado PUC to advance a clean and affordable energy future for the state.”

 

 

Interim Legislative Committees, Task Forces and Advisory Councils in Arizona, Colorado and Utah

 

Click on the hyperlinks to visit the website of the respective council, task force or committee.

 

Arizona

 

Arizona Solar Energy Advisory Council

 

The purpose of this council is to:

  • “assist and advise the Director of the Department of Commerce on solar energy issues;

  • identify solar energy technologies and long range programs; and

  • encourage the development of solar energy.”

 

Members of the Arizona Solar Energy Advisory Council:

Representative Jake Flake

Senator Dean Martin

Thomas L. Acker, Department of Engineering, Northern Arizona University

Robert H. Annan

Tom Bohner

David Castillo

Anthony C. Floyd

Lori A. Glover

Robert L. Hammond

Thomas N. Hansen, Unisource Energy

Peter Johnston, Arizona Public Service

Reynold P. Radoccia

Mark W. Randall

Lee W. Tanner

Jewell M. Lewis, Arizona Power Authority

Martin J. Pasqualetti, Geography Department, Arizona State University

Martin R. Yoklic, University of Arizona Environmental Research Laboratory

 

 

Arizona State Energy Code Advisory Commission

 

The purpose of this commission is to “review and make recommendations regarding the State Energy Code, including any changes to the Code and perform cost benefit analyses of potential State incentives for the use of energy saving devices and methods.”

 

Members of the Arizona State Energy Code Advisory Commission:

Gary Dailey

Steven Speer, International Brotherhood of Electrical Workers

Carl Triphahn

Ron Whipple, SWD Urethane Company

Linda Douglas, Tucson Electric Power

David Gore

Mike Greenwalt, Cupertino Electric

Rodney Jarrell, RMJ Electrical Contractors

Brian Tassinari

Brian O'Donnell, Southwest Gas

Jerry S. Thieken, Salt River Project

Daran Wastchak, D.R. Wastchak, L.L.C.

Connie Wilhelm, President, Homebuilders Association of Central Arizona

 

 

Colorado

 

Colorado Transportation Legislation Review Committee

 

The first meeting of the Colorado Transportation Legislation Review Committee was held on 11 June.  Future meetings are scheduled for 16 July, 19 August, 10 September and 15 October, all at 9:00 a.m. in HCR 0112 of the State Capitol Building in Denver.

 

Members of the Colorado Transportation Legislation Review Committee

Representative Gayle Berry, Chair

Senator Ron May, Vice Chair

Representative Alice Borodkin

Representative Bob Briggs

Representative Mark Cloer

Representative Mark Larson

Representative Buffie McFadyen

Representative Mike Merrifield

Representative Jack Pommer 

Representative Ann Ragsdale 

Representative Bill Sinclair 

Representative Nancy Spence 

Representative Debbie Stafford 

Representative Suzanne Williams 

Senator Ken Chlouber

Senator Jim Isgar

Senator Steve Johnson

Senator Andy McElhany

Senator Alice Nichol

Senator Stephanie Takis

 

 

Utah

 

Utah Energy Policy Task Force

 

A meeting of the Utah Energy Policy Task Force was held on 12 June, and information will be posted to the task force’s website as events warrant.

 

Members of the Utah Energy Policy Task Force

Sen. Leonard M. Blackham, Co Chair

Rep. Marda Dillree, Co Chair

Rep. Sheryl L. Allen

Rep. Ralph Becker

Rep. Chad E. Bennion

Rep. Bradley G. Last

Rep. Ty McCartney

Rep. David Ure

Sen. Gregory S. Bell

Sen. Mike Dmitrich

Sen. Dan R. Eastman

Sen. Ed P. Mayne

 

 

News Items from Members of Western Business Coalition for New Energy Technologies

 

GE WIND ENERGY ADVERTISEMENT AVAILABLE ONLINE

 

The popular television advertisement by coalition member GE Wind Energy is available for viewing on the company’s home page at www.gewind.com.

 

 

RMS ELECTRIC AND NEXTWAVE ENERGY ANNOUNCE PARTNERSHIP

 

RMS Electric, Inc. and coalition member NextWave Energy, Inc. have announced that they have partnered to jointly pursue business opportunities in the alternative energy arena.

 

“RMS Electric is well-positioned to capitalize on substantial growth opportunities in several niches of the alternative energy marketplace, and we want to be a part of this future success story,” said Richard Stuebi, President of NextWave Energy.

 

“We are pleased to be able to leverage the business development experience and assistance of NextWave Energy, particularly in marketing and finance, as we prepare to enter the next phase of our growth,” noted Dr. Mark McCray, President of RMS Electric.

 

The nature of the partnership is such that RMS Electric will receive investment capital from NextWave Energy, and Mr. Stuebi (representing NextWave Energy) will work closely with Dr. McCray by participating actively in the day-to-day operations of RMS Electric.

 

Founded in 1982, Boulder-based RMS Electric is a leading provider of solar-based photovoltaics (PV) power systems, uninterruptible power supply (UPS) systems, and DC-to-AC inverters in the Rocky Mountain region. RMS Electric is particularly well-known for designing, engineering and installing customized PV systems with battery backup for remote off-grid application.

 

Since 1999, Denver-based NextWave Energy provides professional services on a variety of strategic and financial matters to established companies, emerging firms and private investors with interests in alternative energy.

 

[From NextWave press release]

 

 

DELUGE DEMONSTRATES THERMAL HYDRAULIC ENGINE

—Company President Hageman Featured on Weekly Phoenix Radio Show

 

Coalition member Deluge, Inc. of Phoenix has demonstrated that “lifting oil out of the ground is not much of a challenge for the Thermal Hydraulic Engine.”  Deluge President Brian Hageman, who invented the technology, reports that “We used hardly 10% of the available power to lift the 500 foot well!”

 

Hageman adds that the first commercial product developed by Deluge is an oil well pump that runs on hot water.  At the Teapot Dome Navel Oil Reserve in Wyoming, geothermal hot water is produced, but not used.  “There is enough hot water to run over a hundred of our new oil pumps,” said Hageman.  “The government's waste heat can eliminate the need for electricity.”  Working on a CRADA (cooperative research and development agreement) at the Rocky Mountain Oilfield Testing Center, a U.S. Department of Energy Lab in Wyoming, the new engine will go through a one-year test.

 

Also, Deluge will start testing in Bakersfield, California this month.  Under an agreement with a large oil producer, Deluge will be able to prove the engine works on deeper wells.  This test will lift 1800 feet and prove that this new technology can replace the 150 year old “horsehead” pump.  “We will be cheaper and more efficient, and we expect to start converting fields of wells over the next couple years,” Hageman claims.

 

[From Deluge press release]

 

“Deluge Energy Report” Broadcast Weekly on KKFN

 

Brian Hageman, President of Deluge, Inc., reports that his “Deluge Energy Report” is heard every Tuesday morning at 8:50 on 1510 KFNN, Phoenix's Financial News Network   On this show, Hageman “offers his perspective on the future of the energy industry during this turbulent period of deregulation.  Which Utility stocks make good investments & which to avoid?  How new technologies in the energy industry like the new Deluge engine will affect the future?”  Hageman’s show can also be heard live on the Internet at www.kfnn.com.

 

 

Regional News

 

SOLAR-POWERED CARS TO RACE ROUTE 66

—DOE's American Solar Challenge Longest in World at 2300 Miles

 

“The price of gasoline won’t be a worry for 30 cars powered by nothing but the sun as they trek across the country…along historic Route 66” in July.

 

“The teams from universities, companies and organizations around the world competing in the American Solar Challenge (ASC) will build and race what each hopes will be the fastest solar-powered car on the North American continent.  The winner will be the car with the best cumulative time between Chicago and the Los Angeles area.  At 2,300 miles, ASC is the longest solar car race in the world.”

 

The U.S. Department of Energy (DOE)-sponsored event will start at Chicago’s Museum of Science and Industry 13 July 13 and finish 10 days later in Claremont, Calif.  It will follow Route 66 as much as possible, with checkpoints in Springfield, Ill.; Rolla, Mo.; Joplin, Mo.; Edmond, Okla.; Sayre, Okla.; Amarillo, Texas; Tucumcari, N.M.; Albuquerque, N.M.; Gallup, N.M.; Flagstaff, Ariz.; Kingman, Ariz.; and Barstow, Calif. before reaching the finish in Claremont.

 

ASC cars must be powered solely by sunshine.  The racers use photovoltaic (solar) cells to convert sunlight to electricity to power their cars.  Weather and energy management play an important role in the race.  The cars generally travel at highway speeds and are required to obey local speed limits, but in general, the sunnier the day, the faster and farther the cars can run.  Bright days also allow the cars to “fill up” their batteries for cloudy or rainy days.

 

The event’s website, providing full details on the race, including photos and other information, is http://www.americansolarchallenge.org/

 

 

“DISASTROUS” WESTERN FUEL SHORTAGES FORECAST BY TRADE ASSOCIATION

 

The Denver-based Western Business Roundtable warned on 6 June that the “Western United States may face “economically disastrous fuel shortages” later this year.”  The roundtable urged Congress to take a number of steps to increase gas supplies including:

 

  • Streamline the leasing/permit application processes for federal oil and gas properties;

  • Provide tax relief for domestic oil and gas exploration expenses, including tax incentives to encourage nonconventional well production;

  • Provide resources and direction to the responsible federal agencies to expedite pending reviews, appeals and resolution of ongoing “obstructionist” litigation;

  • Adequately fund gas supply technology research;

  • Require economic value assessments be weighed against objective environmental impact assessments for production on government lands; and

  • Encourage diversification of the fuel resources used for electricity generation by (a) naming the Department of Energy (DOE) as “lead agency” for coordination of the federal environmental review process for transmission projects; b) authorizing DOE to prepare a single, consolidated environmental record of review to be used as the basis for all permitting decisions by federal agencies; c) setting a deadline for completion of federal permit decisions and related environmental review; d) standardizing permit terms to cover the useful life of the facilities; e) providing an appeal process for states and permitees; f) designating transmission corridors on federal lands; and (g) encouraging expedited transmission upgrades similar to that underway with the Path 15 corridor in California.

 

[From 6 June press release by the Western Business Roundtable]

 

 

ARIZONA UTILITIES’ RENEWABLE ENERGY ACTIVITIES PROFILED

 

Mike Fimea writes in the 19 June Arizona Business Gazette about the various investments in solar energy made by Tucson Electric Power and Arizona Public Service as part of the companies’ compliance with Arizona’s Environmental Portfolio Standard.

 

In his article, Fimea discusses Arizona’s low ranking in a recent “report card” on states’ renewable energy policies by the Union of Concerned Scientists and discusses the soon-to-be-released report by the Arizona Corporation Commission’s Cost Evaluation Working Group [which was released on 30 June; see article].

 

 

SOLAR PANELS RETURN POWER TO SRP’S GRID

 

Brandon Babcock writes in the 28 June issue of the Arizona Republic about the Phoenix Transit Department’s new Park-and-Ride facility in the Ahwatukee Foothills at 40th Street and Pecos Road.

 

Babcock reports that the Salt River Project is offering free “power to the facilities in exchange for providing a no-cost lease on the property for placement of a $1 million solar panel array.  The sun also will partially power the lot's security station.”

 

“The lot's energy needs will be met with traditional power, but power gathered from the solar panels, which will sit atop two of the car shades, will put enough power back into the SRP's grid to support the lot and 100 Phoenix homes for a year.”

 

Babcock’s full article can be read on the Republic’s website.

 

 

PUSH FOR WIND POWER HITS SUMMIT COUNTY

 

“Keith walked down Frisco's Main Street Tuesday, preaching the word of windmills and handing out fliers.  The young, bearded conservationist was one of 50 like him touring cities throughout the state, raising awareness about wind power and other renewable energy sources…And, when Xcel Energy announced Monday it is expecting a 60-percent increase on heating bills if natural gas rates costs remain static, the timing couldn't have been better.”

 

The full story by Ryan Slabaugh, detailing legislative attempts to promote renewable energy in Colorado, is available for viewing in the Summit Daily News of 13 June.

 

 

OWENS RECEIVES ENERGY EFFICIENCY AWARD

 

Colorado Governor Bill Owens (R) received an Energy Leadership Award from the 14th Annual Energy Efficiency Forum on 11 June.  The Forum, co-sponsored by the United States Energy Association and Johnson Controls, Inc., is a “nonpartisan event designed to raise awareness of the technical, economic and political solutions being implemented to assure energy efficiency.”

 

Owens received the Governor’s Award in “recognition of innovative leadership.”  The Forum’s organizers note that Owens “has issued an executive order establishing energy efficiency and conservation practices for state agencies…He also implemented energy-saving initiatives in government buildings that have already realized nearly $2 million in energy cost savings, and in the past year initiated more such projects that will save another $8 million in energy costs.”

 

[From Announcement on Energy Efficiency Forum website]

 

 

LAMAR UTILITY APPROVES $5 MILLION BOND ISSUE

—Wind Cited as “Cheapest Source of Power Available”

 

Virgil Cochran reports in the Lamar Daily News of 26 June “at a special meeting…the Lamar Utilities Board approved a financing package through the First National Bank of Lamar and Wells Fargo to finance a 4.5 megawatt wind farm to be built by Lamar Light and Power late this year.”

 

“…Lamar Light and Power Superintendent Leon Sparks said even without incentives like pollution offset certificates and federal renewable energy credits, the local utility will produce power from the wind turbines for less than four cents per kilowatt hour - less than it would pay for power produced with the system's main gas fired generator at today's natural gas prices and comparable to what it pays for power from outside sources like Tri State G&T…When pollution offset certificates, known as “green tags” are sold and the money recovered from federal renewable energy production incentives are figured in, the power will cost far less - in the neighborhood of two to two and a half cents per kwh, which will likely be the cheapest source of power available to Lamar Light and Power.”

 

 

WIND ENERGY AND RURAL AMERICA:  OPPORTUNITIES, ISSUES AND CHALLENGES

 

At the 2003 Colorado Renewable Energy Conference in Montrose on 28 June, Dan McGuire, director of the Wealth From The Wind program of the American Corn Growers Foundation and the American Corn Growers Association, delivered a presentation, “Wind Energy Opportunities, Issues and Challenges Facing Farmers and Rural America in 2003.”  Here are a few excerpts from his remarks:

 

 “…even with tight corn inventories worldwide, corn prices in the U.S. remain close to a low $2.00 per bushel while the U.S. Department of Agriculture shows that it costs corn growers about $3.00 to produce each bushel.  That kind of scenario does not bring prosperity to rural America…With the exception of 1998, total net farm income [in 2002] remained the worst since 1985.”

 

“As an organization, and while we continue working to improve farm policy and address market concentration issues, we must also look to other sources of income for farmers and other ways to enhance and sustain the economies of rural America.  Wind energy really offers some exciting opportunities.  We look at the potential for farmers to capitalize on various sizes of wind power systems.  They can consider smaller turbines to provide energy for their on farm electricity demand, including grain drying, dairy barns, and their residence as well as net metering or they can consider leasing their land for larger turbines, investing in turbines themselves by forming LLCs or perhaps getting their rural electric cooperatives to invest in wind farms to use what has become the most economical source of power generation into the grid for the benefit of their customers.”

 

“…a few months ago, and as part of our Wealth From The Wind program, we announced the formation of the American Agricultural Wind Coalition (AAWC) to harness some of the people power in rural America. We already have six national farm organizations as members and we expect many more.  The most recent to join is the National Farmers Union, with over 300,000 members…Other members include the American Corn Growers Association, the American Agriculture Movement, the Soybean Producers of America, the National Farmers Organization and the Federation of Southern Cooperatives.”

 

“While many good things are happening on wind energy there are many challenges to address as well.  It's my understanding that right here in Colorado during your most recent legislative session, the rural electric cooperatives killed a bill that would have provided important incentives for wind energy, after they had agreed to remain neutral on the issue.  That shouldn't be happening in rural states that have such a potential for wind energy development…Rural Electric Cooperatives need to remember that they were created by farmers to serve farmers and rural America.  They need to be helping, not hindering, those farmers that want to get involved in wind energy.  And that's what the majority of farmers indeed do want the rural electric cooperatives to do..82.2% of the farmers surveyed in our poll said they agree that rural electric cooperatives should help support and promote wind energy.”

 

 

SECRETARY OF ENERGY ABRAHAM VISITS NREL

—DOE Launches New Energy Savers Website

 

U.S. Secretary of Energy Spencer Abraham visited the National Renewable Energy Laboratory in Golden, Colorado on 1 July.  Both of Denver’s daily newspapers reported on his visit.

 

In the 2 July Rocky Mountain News, reporter Gargi Chakrabarty quotes Abraham:  “The short-term challenge is to use energy intelligently…In the long run, we need to address energy security to meet our needs.”

 

Chakrabarty goes on to quote Abraham as calling for use of renewable energy sources to solve the looming energy crisis in the short run.  In the medium and long term, Chakrabarty reports that Abraham called for increased use of liquid natural gas and the encouragement of exploration of gas fields by issuing permits “within a reasonable time.”

 

In the 2 July Denver Post, reporter Steve Raabe reports that Abraham supports “increased federal tax incentives for renewable energy and energy-efficiency programs but not for traditional energy industries,” with particularly strong support for “tax incentives for vehicles powered by alternative fuels or fuel cells.”

 

U.S. Representative Bob Beauprez, R-Colo., whose district includes NREL, toured the facility with Abraham, and Raabe quotes Beauprez:  “[Renewable energy] is the next wave…I think one of the real wise uses of taxpayer dollars is right here at this lab.”

 

In a press release summarizing Abraham’s visit, The U.S. Department of Energy quotes Abraham’s endorsement of building energy efficiency:  “By incorporating advanced energy efficiency and renewable energy technologies that reduce energy use into building designs, the U.S. building sector is achieving significant results…Individuals can also play an important role in reducing energy usage.  Conserving energy in the home saves consumers money today while also helping ensure abundant energy supplies in the future.”

 

DOE Launches New Energy Efficiency Website

 

During his trip to NREL, Abraham launched Energy Department’s new energy saver website at http://www.energysavers.gov.  This new site, operated by the department’s Office of Energy Efficiency and Renewable Energy, offers resources and tips on cutting home energy prices, from insulation and heating and cooling tips to the latest information on windows and their efficiency.

 

 

COLORADO ENERGY OFFICE LAUNCHES ANEMOMETER LOAN PROGRAM

—Program Will Capture Data to Determine Site Feasibility

 

The Colorado Governor's Office of Energy Management and Conservation (OEMC) announced on 25 June that it has created an “Anemometer Loan Program” through a partnership with and matching funds from U.S. Department of Energy's Wind Powering America Program.  Anemometers are wind-measuring devices that are mounted atop towers.  OEMC purchased seven 20-meter anemometer towers and anemometers, to be installed in Colorado, to collect site-specific wind data.

 

The goal of OEMC's anemometer loan program is to capture the data collected by the anemometers, such as the direction, force and speed of wind. The data collected from the anemometer will be interpreted and analyzed by a third-party source working with OEMC.

 

“OEMC initiated this program due to the tremendous interest in generating wind energy,” said Rick Grice, OEMC Executive Director.  “Our goal is to assist communities, landowners, and other stakeholders in making informed decisions on a site's wind energy resources.  The data collected from the anemometers is invaluable in this process.”

 

The anemometers, to date, have been installed in: Lamar; about 35 miles southeast of Aurora; Julesburg; Montrose; and Leadville.  Two other sites have been selected, one in Walden and one in Meeker; both of these will be installed in late 2003.

 

Selections were based on existing statewide wind mapping information as well as the participant's stated purpose for wind energy utilization.  Additionally, selections were based on the awareness of current electric supplier's net metering and interconnection policies, distance to transmission lines, transmission capacity availability, and likely funding for the wind project.

 

The anemometers will generally collect data for a period of one year. However, in the case where they are verifying existing data, such as the Lamar and Walden sites, they will be in place for a period of approximately six months or less.  After the site's wind data has been collected, the anemometers will be moved to other sites.  The data collected will be available to the public.

 

To learn more about the loan program, contact OEMC's Olga Erlich at 303-894-2383 x1218.  For information on DOE's Wind Powering America Program, visit www.eere.energy.gov/windpoweringamerica.  For information about the Colorado Governor's Office of Energy Management and Conservation (OEMC), visit www.state.co.us/oemc or call toll-free, 800-632-6662.

 

[From OEMC press release]

 

 

“RURAL ROAD SHOWS” HELD THROUGHOUT COLORADO

—Community Forums Focus on Wind, Biodiesel and Bioethanol

 

The Rocky Mountain Farmers Union (RMFU) recently presented a series of community forums on alternative energy intended for rural sector interests in Colorado and Wyoming. These three-hour “road shows” were attended by audiences of 30-50 people each in Sterling, Limon, Lamar, Alamosa, Craig, Steamboat Springs, and Laramie, with an abbreviated session in Delta. Co-sponsors included the local community colleges, regional Resource Conservation and Development (RC&D) organizations, and the Governor’s Office of Energy Management and Conservation.

 

The objective of these meetings was to introduce Farmers Union members and others to renewable energy as a prospective new source of rural income and jobs.  Major topics included wind power, biodiesel and bioethanol, with coverage of regional energy harvest potential, processing and financing issues, mandates and incentives, initial premium markets for energy products, and the excellent economic payoff for the farmer and the rural community.

 

A recurring theme was the use of these new energy income sources to better accomplish rural empowerment, or the re-vitalization of rural economics, and the assurance of an independent and sustainable way of life by means of renewable energy income and jobs. To put the matter in economic perspective, Colorado’s end-user energy bill of about $10 billion per year was used as an example with the observation that about 80% of that bill is paid to out-of-state vendors. A good portion of that money could stay in the state with increased generation of electricity from the wind and the processing of fuels from locally harvested feedstocks. Billions more dollars circulating in these local economies translates to better economic times for rural Colorado while cleaning up the air in urban Colorado. 

 

Presentations were followed with Q&A sessions that brought up site-specific information that was particularly useful to organizers and participants. “We have all learned a lot from these meetings about local economic conditions and the desire and energy for creating an improved future,” said Tom Potter, Principal of the New Center. “Of course, each of these factors has a different value in locations throughout RMFU’s service territory, and that understanding has helped us better define future opportunities for partnerships with rural producers and urban markets.”

 

For further information about the “road shows” or renewables demonstrations that RMFU and the New Center plan for Colorado, please contact Tom Potter, 303-283-3528.

 

[From article by Tom Potter]

 

 

XCEL ENERGY DEMAND-SIDE MANAGEMENT PROGRAM SAVES MILLIONS

 

In an article entitled “Xcel investing millions in conservation plans”, Steve Raabe reports in the 2 June Denver Post that “[i]t's cheaper to save energy than to buy it or make it.  This basic economic principle is beginning to resonate in Colorado, where Xcel Energy is spending $75 million on programs to encourage business customers to conserve power.”

 

Raabe’s article reports that in the past decade, Xcel has added “substantial amounts of new generation capacity” and that state regulators agreed that conservation, or “demand-side management,” should be used to partly offset the need for more power.  He notes that environmental advocates “laud the power-saving programs for their ability to minimize the need for new power plants and the resulting reduction of pollutants and carbon dioxide, a suspected contributor to global warming.” 

 

Raabe reports that “[w]ith just a modest marketing budget and relying primarily on word of mouth, Xcel has attracted some 170 business customers to the power-saving programs,” ranging from Kaiser Permanente to caterers and fast-food restaurants, churches, auto repair shops and Denver's new convention center hotel.

 

SWEEP Reply to Raabe Article

 

In an unpublished reply to Raabe’s article, Howard Geller of the Southwest Energy Efficiency Project (SWEEP) writes that “Xcel Energy has committed to running these energy efficiency programs only through 2005.  In fact, the utility has stated that it would prefer not to operate energy efficiency programs in Colorado, and has no plans to continue them after 2005.  Recent state legislation that would maintain energy efficiency programs was opposed by Xcel and did not advance in the state legislature…a recent study by SWEEP found that implementing cost-effective and commercially-available energy efficiency measures in Colorado could reduce electricity use 17% by 2010 and 31% by 2020, saving consumers and businesses money, saving water, and displacing the need for at least five new power plants.”