A few weeks ago, Illinois Gov. Pat Quinn vetoed Senate Bill 1652, the “smart grid bill” set to pump up funding for new technology in the state. Yesterday, the General Assembly overturned that veto, and the state, once again, has a sunny smart grid future.
Just a couple of weeks ago, right here on this blog, I noted that resuscitating that bill was highly unlikely. Today, I have to eat those words.
It passed---this despite a last ditch effort from local mayors writing in the Chicago Tribune calling ComEd to the carpet for “inadequate” responses to power outages and lamenting that the smart grid bill doesn’t address outage issues like ComEd claims.
The mayors wrote:
But does Senate Bill 1652 adequately address ComEd's inadequate responses to crisis and non-crisis related power outages? Does it ensure communication of accurate information to local governments and customers during an outage? Does it resolve downed power lines blocking a fire station driveway for four straight days?
Sadly, it does not. The fact is that Senate Bill 1652 fails to address ComEd's systematic shortfalls or hold ComEd accountable to its customers in a meaningful and transparent manner.
ComEd, on the other hand, says that’s exactly what 1652 does---help address issues like communication and response time.
"Today, the General Assembly took a historic step toward creating a stronger Illinois that will help us deliver more value and better service to the 3.8 million customers we proudly serve," said ComEd President and Chief Operating Officer Anne Pramaggiore. "We thank our supporters in the General Assembly for their leadership."
Now, there were a few concessions to get this override. A trailer bill tightened performance standards, dropped return on equity and established an assistance fund, along with redirecting about $200 million to undergrounding lines, since the area had such a horrible time with storms this year.
But, the governor wasn’t going down with a final punch or two. He released a statement when the trailer bill came along saying “unfortunately, this movie still has the same unhappy ending: blockbuster annual rate hikes for consumers and businesses.”
In the end, though, ComEd and the advancement of the smart grid did get at least a Star Wars-esque movie ending in Illinois---they got “new hope.” The 10-year, $2.6 billion program is back on track---faster than anyone expected.
Thursday, October 27, 2011
Wednesday, October 19, 2011
Solar outlook sunny despite Solyndra
Solyndra’s messy and expensive collapse a few weeks ago dominated the news. This week, it’s been replaced by a bevy of solar positives.
Bloomberg has some toes on the ground at the Solar Power International conference this week, and the ears above those toes caught some interesting info on solar. Duke Energy’s James Rogers was quoted as noting that U.S. utilities, with their access to “low-cost capital” will have a leg up in expanding solar options for consumers, especially if a carbon tax materializes. (Rogers is well known for being in favor of a carbon tax or a federal cap-and-trade option. His passion for renewables is common knowledge, though there is speculation that some of that passion has to do with the subsidies for those projects, which ups returns much higher than traditional energy sources.)
Whether Rogers is right or wrong about the utility position in the solar equation, there’s no doubt that activity in that arena continues to thrive. NextEra Energy Resources, a subsidiary of NextEra Energy and a sister company to Florida Power & Light, announced the commissioning of the Hatch Solar Center in New Mexico.
According to the company, the five-megawatt Hatch facility is comprised of 84 Amonix 60-kilowatt units and is the largest operating concentrated photovoltaic solar power plant in North America. NextEra Energy Resources owns and operates the plant and sells the power to El Paso Electric under a 25-year power purchase agreement.
Down in Georgia, sentiment over solar has changed the mindset of Public Service Commissioner Lauren McDonald. McDonald is pitching an interesting funding idea for solar---charging Georgia Power customers a nickel a month on top of their current bill to put into a solar power rainy day fund, essentially.
AP reported that other members of the commission were surprised at McDonald’s new concept. McDonald is proposing a type of budget compromise, connecting what Georgia Power wants to pay to what developers say they need to make a profit on projects. No word on requiring Georgia Power to buy renewables, but one wonders what would happen to that pile of nickels without a solar mandate. And, since Georgia doesn’t have a renewable portfolio standard, utilities aren’t forced into a “must have” demand situation, making the world of solar building---or any renewable building, really---a bit of a risky business equation.
Still, it’s interesting that McDonald, a Republican, is pitching such a green/green idea (green cash for green energy).
And, despite the dour trading of solar stocks recently, there still appears to be green cash in that sunny form of green energy. Google-backed SolarCity, which makes rooftop systems, recently signed on Robert Kelly as the company’s CFO. Kelly managed Calpine’s 1996 IPO, so there’s industry speculation that SolarCity may be looking to go public, pulling in key players to help with that option.
At the start of this month, it felt like Solyndra’s collapse was trumpeting the death of the solar subsidy, if not the solar industry altogether. As the end of this month approaches, it appears that Solyndra was just a minor glitch in the matrix and the solar industry has already moved on to bigger, brighter, greener pastures---at least as long as the subsidies and renewable energy portfolio standards remain.
Bloomberg has some toes on the ground at the Solar Power International conference this week, and the ears above those toes caught some interesting info on solar. Duke Energy’s James Rogers was quoted as noting that U.S. utilities, with their access to “low-cost capital” will have a leg up in expanding solar options for consumers, especially if a carbon tax materializes. (Rogers is well known for being in favor of a carbon tax or a federal cap-and-trade option. His passion for renewables is common knowledge, though there is speculation that some of that passion has to do with the subsidies for those projects, which ups returns much higher than traditional energy sources.)
Whether Rogers is right or wrong about the utility position in the solar equation, there’s no doubt that activity in that arena continues to thrive. NextEra Energy Resources, a subsidiary of NextEra Energy and a sister company to Florida Power & Light, announced the commissioning of the Hatch Solar Center in New Mexico.
According to the company, the five-megawatt Hatch facility is comprised of 84 Amonix 60-kilowatt units and is the largest operating concentrated photovoltaic solar power plant in North America. NextEra Energy Resources owns and operates the plant and sells the power to El Paso Electric under a 25-year power purchase agreement.
Down in Georgia, sentiment over solar has changed the mindset of Public Service Commissioner Lauren McDonald. McDonald is pitching an interesting funding idea for solar---charging Georgia Power customers a nickel a month on top of their current bill to put into a solar power rainy day fund, essentially.
AP reported that other members of the commission were surprised at McDonald’s new concept. McDonald is proposing a type of budget compromise, connecting what Georgia Power wants to pay to what developers say they need to make a profit on projects. No word on requiring Georgia Power to buy renewables, but one wonders what would happen to that pile of nickels without a solar mandate. And, since Georgia doesn’t have a renewable portfolio standard, utilities aren’t forced into a “must have” demand situation, making the world of solar building---or any renewable building, really---a bit of a risky business equation.
Still, it’s interesting that McDonald, a Republican, is pitching such a green/green idea (green cash for green energy).
And, despite the dour trading of solar stocks recently, there still appears to be green cash in that sunny form of green energy. Google-backed SolarCity, which makes rooftop systems, recently signed on Robert Kelly as the company’s CFO. Kelly managed Calpine’s 1996 IPO, so there’s industry speculation that SolarCity may be looking to go public, pulling in key players to help with that option.
At the start of this month, it felt like Solyndra’s collapse was trumpeting the death of the solar subsidy, if not the solar industry altogether. As the end of this month approaches, it appears that Solyndra was just a minor glitch in the matrix and the solar industry has already moved on to bigger, brighter, greener pastures---at least as long as the subsidies and renewable energy portfolio standards remain.
Tuesday, October 11, 2011
Illinois at center of “As the Smart Grid Turns” controversy
This Illinois smart grid struggle is starting to look a bit like a daytime drama.
Hopefully, Commonwealth Edison (ComEd) and Ameren aren’t holding their corporate, collective baited breath on that legislative stamp of approval for their smart grid programs. The Illinois smart grid bill is unlikely to be resuscitated anytime soon. Unlike soap characters, bills rarely rise from the dead.
And, the handful of senators and representatives who beat the drum for an overturn of Gov. Pat Quinn’s veto may be laying low for awhile since the Chicago Sun Times and the Better Government Association laid out a lot of links this week---links between campaign donations and politicians who approached the smart grid bill favorably in the last session.
Now, the appearance of impropriety isn’t proof of impropriety, it’s true. But, it often muddies the picture.
A bit of history may be in order. Back in September, Illinois Governor Pat Quinn vetoed Senate Bill 1652, set to raise electric consumer rates in increments over the next decade to pay for system upgrades, resulting in approximately a $3 billion cash pool.
At the time Quinn vetoed the bill, he called it a “sweetheart deal” that basically erased all accountability for “big utilities.” The veto was supported by various organizations ranging from AARP to the Environmental Law and Policy Center. ComEd was, of course, disappointed at the veto, releasing a statement that the bill, despite Quinn’s description, “does not guarantee profits.”
Some politicians had discussed overturning the veto at the next legislative session, but that was before the big reveal this week.
The Better Government Association (BGA) released information through the Chicago Sun Times that ComEd and Ameren gave more than $1.3 million in campaign funds in the state. That cash was distributed, according to BGA, between January 2010 and the end of May 2011. More money came along over the summer, pushing the total to near $1.5 million. Both the politicians and power players have said that the money didn’t influence, and wasn’t intended to influence, the vote on the smart grid bill that passed in May.
BGA pointed out, however, that House supporters of the bill received six times more cash than opponents of the bill. Senate supporters came in at three times more.
Overall, however, there are 177 legislators in the Illinois chambers. Only 20 of them didn’t receive donations from ComEd and Ameren during the period recorded by BGA. Ninety-eight people voted for that bill, with eight of those not receiving a dime, leaving a whole lot of people who did get some campaign cash voting against, despite the money rolling in.
Once again, though, we’re back to the appearance of things. While the rights of corporations to freely spend political capital has been upheld by the Supreme Court, the average ComEd customer will still wonder if utilities giving cash to politicians was the only reason 1652 existed. And the benefits of smart grid will be lost in the hunt for meaning in the donation trail.
It’s human nature to assume a tit-for-tat response, though. When given a gift by a relative or friend we didn’t plan for at the holidays, how many of us run out and buy return gifts? They’ve given us something; we feel the urge to give something back.
ComEd and Ameren gave a lot of gifts to Illinois politicians. Did a few of those politicians feel the need to reciprocate with a legislative gift? That’s not something that can ever be proven or disproven, really. Money’s written down and accounted for. Good and bad intentions usually are not.
In the end, though, it appears that Illinois’ smart grid portrait is growing increasingly more Dorian Gray than traditional, stately over-the-fireplace staple. Impropriety, cash, anger and consumer backlash may end up making that portrait unrecognizable, with its owners covering it up and hiding it away.
Whether the sins of the portrait are real or imagined, it’s still the appearance that appears to matter most.
Hopefully, Commonwealth Edison (ComEd) and Ameren aren’t holding their corporate, collective baited breath on that legislative stamp of approval for their smart grid programs. The Illinois smart grid bill is unlikely to be resuscitated anytime soon. Unlike soap characters, bills rarely rise from the dead.
And, the handful of senators and representatives who beat the drum for an overturn of Gov. Pat Quinn’s veto may be laying low for awhile since the Chicago Sun Times and the Better Government Association laid out a lot of links this week---links between campaign donations and politicians who approached the smart grid bill favorably in the last session.
Now, the appearance of impropriety isn’t proof of impropriety, it’s true. But, it often muddies the picture.
A bit of history may be in order. Back in September, Illinois Governor Pat Quinn vetoed Senate Bill 1652, set to raise electric consumer rates in increments over the next decade to pay for system upgrades, resulting in approximately a $3 billion cash pool.
At the time Quinn vetoed the bill, he called it a “sweetheart deal” that basically erased all accountability for “big utilities.” The veto was supported by various organizations ranging from AARP to the Environmental Law and Policy Center. ComEd was, of course, disappointed at the veto, releasing a statement that the bill, despite Quinn’s description, “does not guarantee profits.”
Some politicians had discussed overturning the veto at the next legislative session, but that was before the big reveal this week.
The Better Government Association (BGA) released information through the Chicago Sun Times that ComEd and Ameren gave more than $1.3 million in campaign funds in the state. That cash was distributed, according to BGA, between January 2010 and the end of May 2011. More money came along over the summer, pushing the total to near $1.5 million. Both the politicians and power players have said that the money didn’t influence, and wasn’t intended to influence, the vote on the smart grid bill that passed in May.
BGA pointed out, however, that House supporters of the bill received six times more cash than opponents of the bill. Senate supporters came in at three times more.
Overall, however, there are 177 legislators in the Illinois chambers. Only 20 of them didn’t receive donations from ComEd and Ameren during the period recorded by BGA. Ninety-eight people voted for that bill, with eight of those not receiving a dime, leaving a whole lot of people who did get some campaign cash voting against, despite the money rolling in.
Once again, though, we’re back to the appearance of things. While the rights of corporations to freely spend political capital has been upheld by the Supreme Court, the average ComEd customer will still wonder if utilities giving cash to politicians was the only reason 1652 existed. And the benefits of smart grid will be lost in the hunt for meaning in the donation trail.
It’s human nature to assume a tit-for-tat response, though. When given a gift by a relative or friend we didn’t plan for at the holidays, how many of us run out and buy return gifts? They’ve given us something; we feel the urge to give something back.
ComEd and Ameren gave a lot of gifts to Illinois politicians. Did a few of those politicians feel the need to reciprocate with a legislative gift? That’s not something that can ever be proven or disproven, really. Money’s written down and accounted for. Good and bad intentions usually are not.
In the end, though, it appears that Illinois’ smart grid portrait is growing increasingly more Dorian Gray than traditional, stately over-the-fireplace staple. Impropriety, cash, anger and consumer backlash may end up making that portrait unrecognizable, with its owners covering it up and hiding it away.
Whether the sins of the portrait are real or imagined, it’s still the appearance that appears to matter most.
Thursday, October 6, 2011
Obama wants to build a better grid right now
This week, the Obama administration told Americans they want to build stuff. Now, Obama has said that to Americans before with the stimulus package. That version of building stuff looked more like the WPA of the 1930s---roads, bridges, hard and solid infrastructure.
This time around, Obama wants to build infrastructure of the less concrete and more dynamic sort---namely, power lines.
He’s focused on seven specific projects in Arizona, Colorado, Idaho, Minnesota, New Mexico, Nevada, Wyoming, Utah, New Jersey, Pennsylvania, Oregon and Wisconsin, and his contribution to the projects isn’t financial. It’s regulatory---or reducing regulatory red tape, you might say.
Oh yes, and the president says it will create thousands of jobs.
To create those new gigs, Obama wants to speed up the federal permitting for those seven projects: getting all the players together, working out a game plan, and making it happen. But, power line siting is more difficult than just getting everyone to chat. After all, Congress chats all the time, and the American people still see a lot of gridlock on that front.
Gridlock on the permitting and siting front is almost inevitable, chatting or no chatting. While it’s certainly an admirable concept to get more power flowing to the people, the people can be rather picky about seeing the inner workings. Everyone wants power; no one wants to live near power lines.
Now, a lot of Obama’s proposed “lucky seven” are in the West. That will help with speeding up siting and permitting. More elbow room, less people. Less people living near those lines means less people complaining about living near those lines. So, a lot of these have at least a decent shot in getting a good, swift kick in the pants to hurry completion.
The projects where Obama’s “hurry up plan” may work include a new 500 kV transmission line proposed by Idaho Power running a 300-mile long, single-circuit from Boardman, Oregon to Melba, Idaho; an Idaho Power/Rocky Mountain Power project between Glenrock, Wyoming and Melba, Idaho once again; the SunZia Transmission plan to construct and operate up to two 500 kV transmission lines in New Mexico and Arizona; and the TransWest Express to assist wind projects in Wyoming.
Those are likely to go off with fewer hitches because they go through a lot of uncharted country and involve not so many folks in the mix. With transmission siting, less is more: less people, less entities, less complications.
The Cascade Crossing Line that involves a lot of substation upgrades around lean and green-leaning Salem, Oregon may have a few hurdles, as might the CapX2020 project in Minnesota and Wisconsin and the Susquehanna-Roseland power line in Pennsylvania and New Jersey that’s heavy on substations and people interaction.
A lawyer for the Citizens Energy Task Force in Wisconsin, which opposes the CapX2020 project, has already been quoted in a local paper asking if the government would just “ram it through no matter what.”
And, locals near the Susquehanna-Roseland line already have a history of protesting the capacity upgrade for a number of reasons: aesthetics, energy fuel source, the location of the line through a recreation area, and because of the tower height required. (Current towers are about 80 feet tall. The new ones could be closer to 200 feet.) The New Jersey Sierra Club has a lawsuit against the proposal as well. There’s even an entire website dedicated to the opposition called “Stop the Lines” which claims the proposed project is about utility “greed” at the state’s expense.
After the White House announcement, Stop the Lines issued a statement saying, “Corporate profit should not be given priority here. Fast-tracking the destruction of a priceless national treasure---the Delaware Water Gap National Recreation Area---must not be allowed.”
So, all may not be so quick in this expedited expedition.
And, of course, on top of the issue with people living near power there’s the issue of the government’s concept of time. Transmission line siting is considered speedy if accomplished in five years and can take decades. By expediting the process, Obama may only be shaving a few years off. So, in 2015 we might see those New Mexico, Arizona, Wyoming lines start up. By early retirement, I may hear of the Susquehanna-Roseland completion. But, in the end, there’s no way Obama is seeing a foot of new power line before the next election.
So, I hope transmission siting wasn’t a large part of his new campaign.
This time around, Obama wants to build infrastructure of the less concrete and more dynamic sort---namely, power lines.
He’s focused on seven specific projects in Arizona, Colorado, Idaho, Minnesota, New Mexico, Nevada, Wyoming, Utah, New Jersey, Pennsylvania, Oregon and Wisconsin, and his contribution to the projects isn’t financial. It’s regulatory---or reducing regulatory red tape, you might say.
Oh yes, and the president says it will create thousands of jobs.
To create those new gigs, Obama wants to speed up the federal permitting for those seven projects: getting all the players together, working out a game plan, and making it happen. But, power line siting is more difficult than just getting everyone to chat. After all, Congress chats all the time, and the American people still see a lot of gridlock on that front.
Gridlock on the permitting and siting front is almost inevitable, chatting or no chatting. While it’s certainly an admirable concept to get more power flowing to the people, the people can be rather picky about seeing the inner workings. Everyone wants power; no one wants to live near power lines.
Now, a lot of Obama’s proposed “lucky seven” are in the West. That will help with speeding up siting and permitting. More elbow room, less people. Less people living near those lines means less people complaining about living near those lines. So, a lot of these have at least a decent shot in getting a good, swift kick in the pants to hurry completion.
The projects where Obama’s “hurry up plan” may work include a new 500 kV transmission line proposed by Idaho Power running a 300-mile long, single-circuit from Boardman, Oregon to Melba, Idaho; an Idaho Power/Rocky Mountain Power project between Glenrock, Wyoming and Melba, Idaho once again; the SunZia Transmission plan to construct and operate up to two 500 kV transmission lines in New Mexico and Arizona; and the TransWest Express to assist wind projects in Wyoming.
Those are likely to go off with fewer hitches because they go through a lot of uncharted country and involve not so many folks in the mix. With transmission siting, less is more: less people, less entities, less complications.
The Cascade Crossing Line that involves a lot of substation upgrades around lean and green-leaning Salem, Oregon may have a few hurdles, as might the CapX2020 project in Minnesota and Wisconsin and the Susquehanna-Roseland power line in Pennsylvania and New Jersey that’s heavy on substations and people interaction.
A lawyer for the Citizens Energy Task Force in Wisconsin, which opposes the CapX2020 project, has already been quoted in a local paper asking if the government would just “ram it through no matter what.”
And, locals near the Susquehanna-Roseland line already have a history of protesting the capacity upgrade for a number of reasons: aesthetics, energy fuel source, the location of the line through a recreation area, and because of the tower height required. (Current towers are about 80 feet tall. The new ones could be closer to 200 feet.) The New Jersey Sierra Club has a lawsuit against the proposal as well. There’s even an entire website dedicated to the opposition called “Stop the Lines” which claims the proposed project is about utility “greed” at the state’s expense.
After the White House announcement, Stop the Lines issued a statement saying, “Corporate profit should not be given priority here. Fast-tracking the destruction of a priceless national treasure---the Delaware Water Gap National Recreation Area---must not be allowed.”
So, all may not be so quick in this expedited expedition.
And, of course, on top of the issue with people living near power there’s the issue of the government’s concept of time. Transmission line siting is considered speedy if accomplished in five years and can take decades. By expediting the process, Obama may only be shaving a few years off. So, in 2015 we might see those New Mexico, Arizona, Wyoming lines start up. By early retirement, I may hear of the Susquehanna-Roseland completion. But, in the end, there’s no way Obama is seeing a foot of new power line before the next election.
So, I hope transmission siting wasn’t a large part of his new campaign.
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