Monthly Archives: May 2013

Texas Legislature Update: Chapter 313 And Texas Wind Production

By Marita Mirzatuny / Published: May 16, 2013

Source: Texas A&M AgriLife Research and Extension Center

This week, the Texas Senate will likely debate House Bill (HB) 3390, introduced by Representative Harvey Hilderbran and sponsored by Senator Bob Deuell. This bill, which passed in the House and out of the Economic Development Senate Committee on May 14^th, reauthorizes Chapter 313 of the Texas Tax Code – commonly known as the Texas Economic Development Act. Chapter 313 is an economic development program that allows companies to apply for a temporary reduction in property taxes in exchange for a major capital investment commitment.

Chapter 313 has helped put Texans to work and grow rural economies. Wind energy is among the industries that take advantage of this program and, in the process, has attracted around $24 billion in wind energy investments to 56 counties throughout the lone star state – $15 billion of which was a direct result of Chapter 313. Wind energy projects create new jobs and employ meteorologists, surveyors, structural engineers, assembly workers, electrical workers, construction workers, lawyers, bankers, technicians and local service jobs associated with increased growth.

However, Chapter 313 is set to expire in 2014. If the Texas Senate does not renew this crucial bill as is (with renewable energy projects included), then the state stands to lose its competitive advantage in attracting wind and solar development to the state – potentially losing projects to the 34 other states offering clean energy incentives. Some states don’t impose a property tax on wind projects at all.

Furthermore, including renewables in Chapter 313 helps growing school districts’ tax bases, which benefit from the substantial investment that wind energy projects bring to their communities. The expected 30+ year life span of these projects makes them lucrative municipal assets. Additionally, landowners in rural Texas receive lease payments for each turbine installed on their property. These infusions of capital help farmers and ranchers support their land, particularly during times of extreme drought. 95 percent of land used for wind turbines can still be used for agricultural purposes, allowing farmers and ranchers to benefit from a second harvest – of wind.

Posted in Renewable Energy, Texas / Read 5 Responses

Don’t Be Fooled By Recent Lows: The Texas Energy Crunch Is Still A Big Issue

By / Published: May 10, 2013

This past month, we experienced refreshing, cool and somewhat wet weather in Texas. However, those working on energy issues know all too well that this weather change doesn’t mean we have escaped the worst of the “energy crunch.” As the farmers say: “If you don’t like the weather in Texas, wait ten minutes and it will change.” Despite cooler temperatures, an unplanned power plant outage during a warm day late last month forced the Electric Reliability Council of Texas (ERCOT) to issue an advisory, demonstrating just how quickly things can change.

At the same time, recent ERCOT reports indicate that reserves will be tight this summer due to an anticipated record level of high energy demand and stunted growth in new electricity resources – thus making conservation notices likely and rolling outages probable. All of this points to the important role conservation programs, like demand response, can play for ERCOT. Some ERCOT staff and stakeholders have recognized the importance of demand response, which allow customers to voluntarily reduce electricity use in response to a signal from utilities. Others have called explicitly for programs that pay customers for reducing energy the same way generators are paid for producing energy, an approach EDF has advocated for several years.

ERCOT and a few retail electric providers already have conservation programs, albeit limited, in pilot phases that compensate customers for their participation. But in comparison to other regions, Texas lags far behind other states – despite having the highest potential for conservation and clean energy resources in the U.S. That’s why the three remaining weeks of the legislative session are so important: two critical pieces of legislation that would open up demand response in Texas to meet our electricity reliability goals and drive further market competition are under review.

Senate Bill (SB) 1351 from Senate Business & Commerce Chairman John Carona would require ERCOT to allow customers to participate in all competitive energy markets; the bill passed the Senate earlier this week and is now on its way to the House of Representatives. SB 1351 is an excellent piece of legislation to propel demand response in Texas, but alone it is not enough to ensure Texas can keep the lights on during the hottest summer days. A separate bill from Senator Kirk Watson, Senate Bill (SB) 1280, would accomplish just that by requiring ERCOT to secure enough demand response to meet its reliability needs if existing resources fall short; the bill passed unanimously out of the Senate Business & Commerce committee.

These bills will make all the difference this summer and for many summers to come. The Texas Legislature has the opportunity to ensure that ERCOT and the Public Utility Commission (PUC) have all the necessary tools to avoid rolling blackouts over the next several years as we wait for new energy resources to come online. Read More »

Posted in Demand Response, Texas / Read 2 Responses

Ohio Consumers And Businesses Come Together To Support Energy Efficiency

By John Finnigan / Published: May 9, 2013

Most states have long-term renewable energy and energy efficiency targets. Ohio’s energy efficiency resource standard saves over 700,000 kilowatt-hours of energy annually, more than the energy generated by a new fossil fuel power plant. Ohio’s energy efficiency law is under attack, even though Ohio’s targets are right in the middle compared to other states’ targets.

Source: Clean Energy Ohio

Ironically, the consumers who pay for energy efficiency are not leading this attack. Rather, the attack comes from certain electric utilities and the advocacy groups they support: the American Legislative Exchange Council and the Heartland Institute. The utilities claim to be protecting consumers from the costs of the energy efficiency programs, but they really want to protect their own electricity sales.

One argument raised against energy efficiency programs is that they cost too much. Energy programs, however, must pass a cost/benefit test. The programs will be offered only if the value of energy savings exceeds the program costs. In many cases, the energy savings are two or three times greater than the program costs.

Another argument is that all consumers pay for the programs, but only those who use the programs benefit. A few large Ohio industrial companies have raised this argument. But these companies develop their own energy efficiency programs, so they don’t pay for utility-sponsored energy efficiency programs. Read More »

Posted in Energy Efficiency / Tagged Ohio | Read 2 Responses

Hawaii Passes Bill To Democratize Clean Energy

By / Published: May 8, 2013

Last week, Hawaii passed a landmark bill, SB 1087, which will allow the state to create and issue a “Green Infrastructure Bond.” This bond structure will secure low-cost financing for a variety of clean energy installations, with a focus on reaching populations that cannot afford or do not have access to these energy saving improvements today. The bond proceeds will be used to fund an on-bill program currently under development at the Hawaii Public Utilities Commission (PUC). The on-bill program, which is very much in line with EDF’s recommendations for on-bill repayment (OBR), will provide access to low-cost financing for clean energy projects for residential and small commercial customers.

The bill’s intent is to use this low-cost capital to expand access to affordable clean energy for all of Hawaii’s consumers, acknowledging that “Existing programs and incentives do not serve the entire spectrum of the customer market, particularly those customers who lack access to capital or who cannot afford the large upfront costs required-thus creating an underserved market.” Funding projects with a focus on serving populations that do not have access to other means of financing is especially important in the Aloha State, where electricity rates are the highest in the nation.

The state will issue the bonds and then repay bondholders with funds collected from a utility surcharge, providing a secure form of repayment. The framework enables a portion of the existing Public Benefits Fee (PBF), currently charged to customers, to be redirected so that overall customer bills are not expected to increase. Read More »

Posted in Energy Efficiency, On-bill repayment / Tagged Hawaii, Hawaii PUC | Comments are closed

Cream Cheese And Time-Of-Use Electricity Pricing

By Jamie Fine / Published: May 7, 2013

This commentary was originally posted on EDF’s California Dream 2.0 blog.

“The cream cheese just fell off the roof of the car,” my 7-year old daughter said as I turned into my driveway after a trip to the grocery store. Right now you might be asking yourself, “What does this have to do with time-of-use pricing?” Allow me to explain.

We live in Alameda, CA, where plastic bags are prohibited and stores must charge for a paper bag. Alas, I had forgotten to bring a reusable one. To teach my children a lesson and avoid the public scorn (not so much the $0.05 per bag), I carried our groceries and asked the kids to lend their hands. And yes, I put the cream cheese on the roof of the car to free a hand to unlock it.

Once home, I realized that, in addition to almost losing my cream cheese, I’d been making potentially risky tradeoffs. After all, exiting the supermarket with full hands prevented me from holding my children’s hands while crossing a busy – and dangerous – parking lot.

Don’t get me wrong; I’m not lamenting the ban on plastic shopping bags. I think it makes perfect sense, but it takes time to start making the adjustment and the risk tradeoffs aren’t always obvious.

This scenario– making adjustments that may seem inconvenient and a bit scary, but are well worth the effort– plays out in other areas of life as well. Particularly in rethinking how Americans use and pay for electricity.

Source: Union Atlantic Electricity

Most of us don’t think about how the time of day affects the cost of serving us power. In California, we aim to change that by moving to Time-of-Use (TOU) pricing – which will make electricity more expensive during times of peak, or high, energy demand and cheaper off-peak. In fact, just yesterday, the Sacramento Municipal Utility District (SMUD) recommended moving all residential customers to time-of-use rates by 2018 in an effort to give customers more control over energy costs.

EDF believes that TOU pricing will be best for people and the environment, just as banning plastic shopping bags effectively reduces their environmental impact. This approach can encourage conservation and reduce peak energy use while providing customers with more choices that can ultimately lower their monthly bills. Switching to TOU electricity pricing may feel to some like being thrust into a busy parking lot with an armload of groceries and two children to monitor. When should I use my dishwasher? Do I need to reset my air conditioner? Well, yes and no. You can choose to do nothing, or you can exercise a choice you don’t have with our current pricing structure: shifting energy use to times of lower electricity prices. It’s quite doable.

Posted in California, General, Grid Modernization, Renewable Energy, Utility Business Models / Comments are closed

This Is Your Final Warning: Enforcement Needed To Curtail Continued Pollution Problems

By Jon Goldstein / Published: May 7, 2013

Source: Chucker & Reibach

What makes you slow down more, a speeding ticket with a hefty fine or a warning? For most people, getting a ticket for violating the speed limit and having to fork over some cash to pay the fine is a powerful deterrent. In this case, enforcement has done its job. Giving you a penalty for not following the law makes you more careful in the future.

Air pollution rules are no different. Getting the rules right and then following up with strong, fair enforcement actions incentivizes industry to follow them, reduce pollution and clean up our air.

Since 2011, Wyoming environmental regulators have issued an annual study examining air emissions from numerous engines deployed in the state’s oil and gas fields. These engines power things such as compressors used to deliver natural gas to market.

It’s not surprising that the Wyoming Department of Environmental Quality (DEQ) has singled out these engines for special attention. A 2011 emission inventory for the Upper Green River Basin — a portion of the state that has struggled with ozone problems and is designated a nonattainment area by the U.S. Environmental Protection Agency for high pollution levels — found these engines to be by far the largest source of nitrogen oxide (NOx) emissions.

NOx is one of the two air pollutants that lead to harmful ozone, or smog, formation. In fact, the 2011 inventory indicates these engines emitted more than twice the NOx pollution of heaters, the next biggest source in the basin. They accounted for 1,639 of the 4,529 tons, or around 36 percent, of NOx emitted in the basin overall. Read More »

Posted in Climate, Natural Gas / Tagged Wyoming | Comments are closed