For years I have been arguing the merits of community owned renewable power generation and many communities have seen fit to establish their own utilities, not because of anything I have written, but because it makes sense economically. Cities determined to lower their carbon footprint or simply eager to stabilize energy costs for their citizens have almost been forced to eject the investor owned utilities in favor of a public solution. Boulder Colorado is in the process of doing this now.
The city’s decision to consider replacing Xcel Energy’s exclusive electricity franchise with a municipal utility has already drawn concessions.
Xcel’s offer to build 200 megawatts of wind energy for Boulder comes after company officials said they couldn’t make a special deal with one community.
“Boulder brought the 800-pound gorilla to the table,” said Susan Perkins, an attorney who has represented Colorado towns in franchise talks with Xcel, the state’s largest utility.
A decision to move ahead with its own utility — focusing on renewable power and energy efficiency — may have an even bigger impact.
“If Boulder can achieve stable rates and a new energy mix, other communities will start asking questions as their franchises come up,” said Perkins, who is not involved in the Boulder initiative.
The prospect of Boulder turning out a major, investor-owned utility and creating a municipal operation is being watched across the country.
“If a large community like Boulder can do it, it sets an example for everyone,” said Ursula Schryver, a vice president at the American Public Power Association, which represents the country’s 2,000 municipal electric utilities.
There have been 16 municipal utilities set up in the past 10 years — mostly small communities, Schryver said.
The Boulder City Council begins final deliberations July 19 on what path to ask voters to go in November.
A change to a municipal utility would not be easy financially or politically.
The beauty of locally owned power generation is that it is tailored to the unique needs and features of the area. Gone is the one-size-fits-all model of service typical of the investor owned utility and gone too are many of the costs associated with centralized power delivery including the environmental footprint associated with long distance transmission.
IF BOULDER CREATED a municipal utility, its rates would be comparable or a little below Xcel’s between now and 2020, according to Boulder’s consultant Robertson-Bryan.
That, however, is based upon the city paying zero for “stranded costs” — investments Xcel made outside Boulder — such as a new power plant — that it expected city customers would help pay for. Xcel puts those costs at $355 million. The actual price would have to be negotiated or litigated.
Most importantly, when dealing with essential services, taking profit out of the equation allows more room for delivering clean and reliable service to the ratepayer. Boulder, if it can pull this off, will be able to control rates for its citizens, particularly businesses which in Boulder account for 75% of their power consumption. At the same time the city will be adding the healthy mix of renewable energy sources the people are demanding.
Wow! Enlightening strikes The Coos!
Gene:
Yes, once one takes the money, or shall we say, drinks the Kool-Aid, it is kind of hard to turn back.
But the truth is what it is… even if some people don’t want to hear it.
And yes, it is well known renewables clearly compete with natural gas….
See:
http://www.nrel.gov/docs/fy08osti/42305.pdf
Technical Report – NREL/TP-581-42305
February 2008
“Production Cost Modeling for High Levels of Photovoltaics Penetration”
P. Denholm, R. Margolis, and J. Milford
“…At low penetration (less than 4%), virtually all PV offsets generation from natural gas-fired units, primarily high-efficiency combined-cycle units….”
“… At the highest penetration evaluated (10%) natural gas provides the majority of fuel offset, although the coal offset rate is rising rapidly….”
————————
http://www.newwindagenda.org/
Wind Energy for a New Era – November 2008
If 20% of our nation’s energy came from Wind it would create 500,000 jobs, save consumers $128 billion through lower natural gas prices, cut greenhouse gas emissions, and…reduce natural gas demand by 50% in the electric sector and 11% overall. This of course would relieve supply and price pressure in the domestic natural gas market and reduce any potential future need for importing liquefied natural gas. It would also potentially reduce U.S reliance on foreign oil by generating electricity that can be used for plug-in hybrid vehicles.
Once Capacitive Energy Storage Systems for Renewable Power Sources are added into this mix, stand back and watch the World’s energy systems revolutionize and change overnight…
See:
“Rethinking Renewables: A New Approach to Energy Storage for Wind and Solar”
Published September 27, 2010
http://news.rpi.edu/update.do?artcenterkey=2770
OF COURSE, ALL THIS WOULD CREATE THOUSANDS OF JOBS AND DISTRIBUTE MORE WEALTH AMOUNG US COMMONERS.
And also prove LNG is not needed…
Perhaps that is the REAL problem, eh….?
JM wrote:
Let’s hope Mr. Bishop and Mrs. McKeown picked up a few clues on their recent trip to Germany and Portugal on what they are doing there and how we can also get going in the right energy and “job” direction here –
It will not happen with the people currently posing at the port, they will stall any developments they learn about on their vacation, at least as long as it takes to get the LNG project moving forward again. There will be lots of smoke and mirrors, and remember the (TIME) it will take to install the great stuff they learned about. They will insist that GAS is needed in our energy portfolio. We know that’s wrong, don’t we Jon.
Gene and Themguys,
You have pretty much nailed the problem.
LNG tanks that would be twice as tall as the Tioga building in downtown Coos Bay sitting on the North Spit, along with an 8-lane freeway sized (bulldozed) pipeline corridor snaking 234 miles through our forest, farms, streams, rivers and backyards, is NOT VERY Aesthetic… not to mention having a million other negative problems and issues!!
This “one track” LNG agenda being pushed on us for the last 7 years by a few of our outdated leaders can best be summed up I think by quoting Port Director, Jeff Bishop who recently stated, “…must be interpreted as parochial and devoid of pragmatism. These parochial interests in my opinion, by default and not maliciously, have risen to the level of an enabler, exacerbating the unjustifiable levels of poverty that are pervasive in our community….” (April 21st 2011 Port Commission meeting).
Let’s hope Mr. Bishop and Mrs. McKeown picked up a few clues on their recent trip to Germany and Portugal on what they are doing there and how we can also get going in the right energy and “job” direction here –
http://www.nytimes.com/2010/08/10/science/earth/10portugal.html
Beyond Fossil Fuels
Portugal Gives Itself a Clean-Energy Makeover
Published: August 9, 2010
“…LISBON — Five years ago, the leaders of this sun-scorched, wind-swept nation made a bet: To reduce Portugal’s dependence on imported fossil fuels, they embarked on an array of ambitious renewable energy projects — primarily harnessing the country’s wind and hydropower, but also its sunlight and ocean waves.
Today, Lisbon’s trendy bars, Porto’s factories and the Algarve’s glamorous resorts are powered substantially by clean energy. Nearly 45 percent of the electricity in Portugal’s grid will come from renewable sources this year, up from 17 percent just five years ago….”
“…Mr. Sócrates added, “The experience of Portugal shows that it is possible to make these changes in a very short time.” …”
“…So far the program has placed no stress on the national budget” and has not created government debt, said Shinji Fujino, head of the International Energy Agency’s country study division…”
(Read Entire Article at Link Above.)
THIS ARTICLE WAS PUBLISHED ALMOST A YEAR AGO. Portugal is already up to 45 % renewable energy and we are up to what..? I have to wonder where in the world our leaders have been…? IT SHOULD NOT BE HARD TO FIGURE OUT IF ONE ONLY STARTS LOOKING, particularly since we are already eons behind the rest of the World when it comes to developing renewable energy systems and programs….
Dang, I hate that I trouble my Beautiful Mind with things like this, but perhaps Jonny can tell us what happened to those 2,900 jobs that were to come with the 12 inch gas pipeline the citizens are paying for?
I’ve been wondering since I moved here. Can you help me out Jonny?
” Third, where would these installations be placed so as not to destroy the aeshetics of our beautiful countryside?” Asketh Jon Barton .
Oh Jonny, that is rich. I’ve read your letters pimping for Bob Braddock, why didn’t you show this much concern about “our beautiful countryside” then? Gee by golly, I don’t recall you doing anything but pimping for a foreign corporation. Did I miss something? Oh, and are you just as concerned with the “beautiful countryside” on Seven Devils? That doesn’t concern your sorry old arse at all does big guy? You pimp for them as well, another foreign corporation not being taxed to plunder this county, and you’re all for it. Check out the photos posted on this very site, then tell me how concerned you are about our beautiful countryside.
Rubbish. You can’t have it both ways in the real world, this ain’t the Chamber of Consorts remember.
Shameful, but that’s assuming you have any. I’ve not seen it.
Gene Jennings said it all, time for all the dinosaurs to retire and let a new generation take this county into the 21 century.
This is one pipe dream you and SCDC and the Messerles’ can’t pull from your behinds and foist it upon the poor citizens of this county.
Good to see you here, not quite like your “invitation only” gatherings you and Sandy prefer. But I give you credit for coming. Hope you come back soon.
I personally don’t believe you can deal with the truth and won’t stay.
Jon Barton
wrote:
Renewable energy and micro grids are great concepts. The issue becomes how do we get there from here?
Get out of the way, and quit promoting fossil fuels and acting like it cannot be done.
If the so called leaders of this community spend 1/4 of the time they spend on bringing LNG to the area, it would already have been done. When you say great, but, but, but. Your just stalling for the oil industries. Retire Jon,you should have enough public money by now to disappear.
For goodness sakes, if Wal-Mart and Sam’s club can figure out how to “start” doing this, it looks like we should be able to figure it out here in Coos County as well.
See;
“Winds of Change Blowing at Sam’s Club® in Palmdale” –
“…Bentonville, Ark. – April 29, 2010 – As part of a company commitment to be supplied 100 percent by renewable energy, Sam’s Club is the first retailer in the U.S. to install a significant number of micro wind turbines mounted on parking lot light poles to support the energy needs of its Palmdale, Calif., location. Construction is complete, and the 17 units are fully operational as of today…”
“…The Palmdale Sam’s Club was selected for the test project among all of the Walmart-owned properties in the U.S. because of the great wind resources in the area. The micro wind turbines at the Palmdale Sam’s Club are supplied by DeerPath Energy, a renewable energy company from Marblehead, MA, and are estimated to provide 76,000 kilowatt-hours (kWh) of energy annually – enough to power more than six average American homes for a year. The completion of this project adds to the company’s other renewable energy projects in the state, including solar installations at 28 Walmart and Sam’s Club sites and fuel cell installations at two Walmart stores in the state….”
“…said Kim Saylors-Laster, vice president, Energy at Walmart . “With each new project we learn more that can be applied to help us achieve our goal to be supplied by renewable energy.”…”
Read entire Press release here:
http://www3.samsclub.com/NewsRoom/Press/688
The Press Release also goes on to state that the project required a lot of collaboration and effort by the City of Palmdale throughout the process and construction.
ARE YOU LISTENING, CITY OF COOS BAY? And please note the photos of the finished project also at the link above for those out there who are worried about aesthetics. That is not to be saying aesthetics should not be considered. A good ordinance and commitment by the City should be able to work these issues out without stifling the entire process, however.
We are coming so late to the table on some of this it is no longer a matter of if this can be done, or how it can be done. At this point we really just need to educate ourselves and follow the examples already laid out there before us…..
Another good example of community owned power can be found in Germany. Ursula Sladek created her country’s first cooperatively-owned renewable power company. She helped form what would become a 10 year project to take over the local grid, and in a second step, allow people all over Germany to choose safe, reliable, sustainably-produced energy. This project would transform Sladek from a small-town parent trained to be a schoolteacher into the founder and president of one of Europe’s first cooperatively-owned green energy companies.
The German government is now aligned with EWS’s sustainability ideals, with a goal of deriving 100% of the country’s power from renewable sources by 2050. EWS has grown thanks to growing public support for renewable energy in Germany, and the subsequent measures taken by the government, which has encouraged investment in renewable energy projects throughout the country.
Watch inspiring 3 minute video about the efforts of 2011 Goldman Prize Winner – Ursula Sladek at this link:
http://goldmanprize.org/2011/europe
Thank God Ursula didn’t listen to the people who told her it couldn’t be done!
Re the message from Colandrio. Why not attempt to share your experiences with local professional politicians. Some of us have busted our pick trying. Perhaps you will succeed. Another thought from a former Silicon Valley resident, almost 60 years ago, the city of Sunnyvale, population 100,000 or more (now), known to Colandrio, made a decision to cross train fire fighters and police to save nmoney. They saved, and big bucks. Instead of sitting and eating donuts while fire fighters who had been doing fire house chores scramble to fight fires, every patrol car and officer has a fire fighters uniform in the trunck and only one person, not two, is needed to fight fires. The Sunnyvale model has been used since world wide. They will share their experiences with all who ask. There are many more gems like this and Colandrios for consideration.
Hi Ashly, welcome. Regarding The World I have no clue how the paper decides what is or is not newsworthy.
Can anybody tell me what is really happening at the World paper and why they don’t print stories that are printed here?
Great questions, Jon, although it seems you are assume already that the power plants will be out on the countryside. Wide scale distributed energy produces power much more efficiently because it does not incur the associated losses of transmission. From a capital cost, according to the World Alliance for Distributed Energy (WADE) http://localpower.org capital costs are as much as 44% lower than in a centralized model. Big wind, (which I don’t recommend for this area) can be brought in at $1.5 to $2 million per MW not including transmission, etc…
The best renewable sources for this area are solar thermal and ducted rooftop wind such as my design or another company I am working with, the Wind Cube.
As for financing, a New Markets Tax Credit deal takes six to nine months minimum to put together, at least that has been my experience.
I agree completely Colandrio.
Renewable energy and micro grids are great concepts. The issue becomes how do we get there from here?
First, what is the capital cost to provide a community of 65,000, or so, with sufficient, reliable fully renewable energy? Second, what KWH rate would have to be charged the consumer, including amortization of capital cost? Third, where would these installations be placed so as not to destroy the aeshetics of our beautiful countryside? And fourth, if we start today how long would it take to find funding (non-grant, because ultimately the project must stand on its own), acquire rigths of way, get permits, construct and install equipment and go live?
If those questions can be answered, what is holding us back from proceeding forthwith to get this done. And, frankly, I can’t imagine anyone who wouldn’t agree except, perhaps, a handful of special interest oil or coal barons, unless of course they had the foresight to start investing heavily some of their over-arching profits in such a project to protect the long term stream of profits for their shareholders.
I couldn’t agree more. I spent some years in California where cities such as Palo Alto, Santa Clara, and others have their own power grids. They offer cheaper rates to their citizens and businesses, which are often drawn to locate in these cities because of the lower rates available for utilities. In these towns, the “profits” from these enterprises are used to improve the lot of the citizens – not to feather the corporate bottom line.
Of course, it took enlightened, intelligent leadership to forge these communal structures, of which there is a deficit in Coos County.