July 29, 2010 - demand response; Alaska energy advisor challenged

Today's energy related snapshot: a truck hauling wood chips near the Capitol in Augusta, Maine. Woody biomass is one of Maine's major energy resources, and we see thousands of tons of it trucked across the state on a daily basis. After all, Governor Baldacci has called Maine the "Saudi Arabia of biomass".



Put on your policymaker hat and let's talk about the power grid. It is summer, and it is hot. In addition to running businesses and households as usual, people are using a lot of air conditioning. This places a large demand on the electric grid. Specifically, grid planners need to make sure there's enough generation available to cover the region's demand for electricity. Traditionally, this has included both baseload and peaking generation. Baseload generation serves the portion of electric demand that is constant throughout the year, while peaking generation is used less frequently to meet spikes in demand. In some cases, particularly where electric demand has flattened due to loss of industrial load, peaking units might not run even one day per year. (In New England, this generally doesn't disqualify them from receiving payments for the capacity value they provide. In the market makers' view, it isn't the peaking generator's fault that load diminished.)

In recent years, we've found another way to cover peak electric load without having to build an expensive new generator that may only run infrequently: demand response. In essence, demand response means covering electric load by having individuals or companies volunteer not to use power from the grid in response to peak demand conditions. In exchange, these demand response participants should be compensated -- not only for the energy they didn't use, but also for the value of the service they provide to the grid. Generally, this service has a value comparable to the corresponding amount of generation avoided. Demand response thus lowers electric rates and the cost of the electricity that is being provided into the system.

Alaska, like many states, is focusing its government on energy issues. Gov. Sean Parnell named former state senator Gene Therriault (whose district is "North Pole" - no joke) as his energy advisor -- not an unusual move. This occurred at about the same time Senator Therriault stepped down from elected office. However, there is a claim that the position of energy advisor was created during Therriault's term as an active legislator. If so, under the Alaska Constitution and state law, he could not take any state job created while he was in office for one year. An Anchorage Daily News editorial now calls for his resignation.

The Arizona Corporation Commission has adopted a strong energy efficiency and conservation standard. Arizona regulated electric utilities will be required to reduce the amount of power they sell by 22 percent over 2005 levels (adjusted for population growth) by the year 2020 through conservation and efficiency. They can take credit for efficiency projects funded since 2005. The Southwest Energy Efficiency Project led the charge for this measure; they project ratepayer savings of $9 billion over the next ten years. 2% of the savings must come from demand response.

Here's an interesting Time article on underground coal fires -- which are more widespread and emit more pollution than we may know.

In Maine, a $50,000 grant from Time Warner Cable will help fund a new energy efficiency education program at two island schools. The Island Institute is starting its "Energy for ME" program, designed to teach students about energy issues and how -- and why -- they should conserve. About 75 kids on Vinalhaven and North Haven at North Haven Community School and Vinalhaven School are expected to participate in the program next year.

June 14, 2010 - Maine roundup: offshore wind, and changes at the PUC

Maine Public Utilities Commission chair Sharon Reishus will be stepping down effective July 12, 2010.  Governor Baldacci will name Commissioner Jack Cashman as Acting Commission Chairman.  In a press release, the Governor said he expects to nominate a new PUC Commissioner to be confirmed by the Legislature during a Special Session to be held later this summer.

Federal Secretary of Energy Steven Chu is visiting Maine today. He is touring the University of Maine's Advanced Structures and Composites Center, where Habib Dagher and company are design and testing floating deep-water wind turbine platforms.  This work will be supported by the $11 million bond Maine voters approved last week.

4/13/10

Maine news:

After the removal of the Fort Halifax dam, erosion continues to threaten the Fort Hill cemetery in Winslow.

The Maine Legislature concluded its session yesterday. Although they did approve putting a bond package to the voters, the approved measure does not include the energy efficiency funding that was initially proposed by Governor Baldacci.

The last bill enacted by the 124th Legislature was the energy corridor bill, which provides procedures for the review of proposals to develop transmission lines, pipelines, and other major energy infrastructure.

3/25/10

The big news in this corner of the continent is that Hydro-Quebec and New Brunswick Power have canceled their proposed deal. Details are still coming out, but key factors include the radical unpopularity of the deal in NB -- with some reports of as low as 8% of New Brunswickers supporting the deal -- and "increased costs and risk" for HQ. More to follow for sure.

In Maine legislative news:
The Utilities and Energy Committee has voted out an amended version of LD 1810, the Ocean Energy Task Force bill. This bill, proposed by Governor Baldacci's Ocean Energy Task Force, underwent a significant scaling back during the committee process, largely due to concerns over impacts to electric ratepayers. The Task Force, whose members included former Central Maine Power utility chief David Flanagan, was told to propose legislation that would remove obstacles to building 5000 MW of offshore and coastal wind and tidal energy in Maine. The result was a bill that included mandates to overbuild transmission, loosen the standards for the PUC's approval of transmission lines, have ratepayers finance generator lead lines, and expose all ratepayers to rates of up to 25 cents per kWh in order to pay for long-term contracts for ocean energy. Through extensive questioning by legislators and stakeholder involvement, the result is a dramatically scaled-back bill voted out of the Committee unanimously this evening. As voted out, the amended bill eliminates much of the the pro-transmission prejudices embodied in the original bill, and the provisions that would have had ratepayers backstop generator lead lines. The Committee also transformed an ocean energy RFP process that would have exposed ratepayers to potentially significant cost increases into a voluntary "ocean energy standard offer". This is a good result that will empower Maine's renewable energy industry and economy, without inappropriately exposing ratepayers to costs and risk.

When dam owner FPL Energy got approval to remove its Fort Halifax dam and hydroelectric station on the Sebasticook River in Winslow, Maine, many people voiced concerns ranging from bad energy policy (why remove clean hydro when we're doing all we can to install more renewable capacity?) to bankside erosion causing damage to houses. The naysayers were right about the erosion; yesterday, the town completed its $725,000 buyout and demolition project of the six houses on Dallaire Street that were in peril of falling into the river.

Central Maine Power's $1.6 billion MPRP transmission project runs into new trouble: the Sierra Club says the MPRP will harm wetlands.

3/16/10

Maine news in brief:
Governor Baldacci names a new LURC commissioner and reappoints 6 current members. LURC is Maine's Land Use Regulatory Commission, which rules on development plans in Maine's unorganized territory -- including the proposed Plum Creek development, and wind-power projects.

University of Maine names a new distance-learning director: Curt Madison, who has served at the University of Alaska - Fairbanks. Curious to see how this fits with the University's broadband plan.

Meanwhile Portland has applied to Google to be a test site for full-penetration super-fast internet.

Maple season is here, with Governor Baldacci tapping the ceremonial first tree.

Elsewhere:
29 governors "demand" a national renewable energy standard (or renewable portfolio standard). 10% by 2012? Many states, such as Maine, are already doing more.

2/24/10: some news from Maine

Maine roundup for today

The announced closure of the Bumble Bee sardine cannery in Prospect Harbor continues to be troubling. 128 jobs to be lost. Governor Baldacci says the state will help find a new business, and could designate the cannery as a Pine Tree Zone, allowing the new owner to be exempt from 80% percent of its employee tax withholding for the next 10 years.

Tissue manufacturer Lincoln Paper and Tissue forecasts 2010 as a moderately successful period of no major investments or substantial new hiring. LP&T's CEO Keith Van Scotter has considered switching the fuel for its steam boilers from No. 2 heating oil to natural gas, but can't do so without help from state or federal government.

Landfill gas to energy: the City of Old Town, University of Maine, and Casella Waste Management have requested $3 million in federal stimulus funding to construct a 6-mile gas pipeline allowing gas from the Juniper Ridge Landfill (operated by Casella on behalf of the state) to flow to the steam plant at the university. Phase I consists of building the pipeline and upgrading the steam plant, and would significantly reduce carbon dioxide emissions. Phase II involves building an electricity generating facility connected to the landfill by a second pipeline. These plans are tied into the nascent Maine Green Energy Alliance, an entity owned by Casella that aims to generate electricity and sell it directly to participating municipalities like Old Town. Landfill gas remains somewhat contentious, with some opposing the project on environmental and fiscal policy grounds.

Maine does have experience with the Pine Tree Landfill in Hampden, also operated (and owned) by Casella. The $10 million Pine Tree Landfill gas project commenced operation in 2008, and is projected to produce enough methane gas to power up to 3,000 homes for 15 years or more. In 2009 a similar project was launched at the Crossroads Landfill in Norridgewock.

Bangor Daily News editorial yesterday lauding Eastern Maine Electric Cooperative (EMEC) for its customer-oriented culture and low prices, noting that the customer-owned utility cut power prices by 10% last year. The editorial is careful not to bash investor-owned utilities, but hints that their profit-to-shareholder motives may result in worse rates or service than customers can get from coops like EMEC.


Elsewhere:

Bloom boxes unveiled. Lots of buzz still, relatively few details. We have learned that commercial-scale units cost $700,000 to $800,000, and that five Bloom Energy Servers deployed by EBay last July produce electricity to power space for 2,000 to 3,000 employees and cut eBay's power bill by $100,000 so far. Interestingly, EBay uses natural gas as the fuel, but plans to convert to landfill gas soon.

Iberdrola anticipates profit growth over the next three years.

The Senate continues to wrestle with the carbon bill, with carbon pricing remaining as the sticking point. Cap and trade? Cap and dividend? Carrot and stick?

2/4/10

Did you know that Maine is the "Saudi Arabia of forestry"? That's the word Governor Baldacci is spreading after his meeting with President Obama yesterday. Good for Maine, since we're also the "Saudi Arabia of wind". Saudi Arabia may have the largest proven reserves of oil, but Canada is second -- so what is Maine the "Canada of"? Are we the "Iraq of ocean energy" (fourth)? How about the "Kazakhstan of hydro" (eleventh)? (Definitely not.)

I get a kick out of some of the comments on yesterday's BDN story about First Wind's test towers on Bowers Mountain, like the satirical "Maine cedes the Northeast to First Wind". Check out the comment from 2/3/10 at 7:52 AM by "deanhornblower":

Maine cedes the Northeast to First Wind
...State of Firstwindiana
Governor: Matt Kearns

Statehood: Created in 2010 as "Emergency" legislation by the Maine Legislature

Boundaries: Penobscot River to the Canadian border, from the northern shores of the Grand Lakes of Eastern Maine to Southern Aroostook.

Capitol: Prentiss, centrally located and in honor of Stetson I: "where the revolution began"

State Flag: GE 1.5 MW turbine on a "green" background

State Bird: Clubbed and Mangled Bald Eagle

State Animal: Barotraumatized Bat

State Tree: Whatever is left standing after being run over by a H C Haynes skidder

State Song: "We're in the Money"

State Motto: "Big Wind, Big Lie, Forever!"

Not my words folks, nor is any of it true, but I suspect many (other than First Wind) will find it funny.


Meanwhile, in Washington DC, the Obama administration continues to speak of "caps" on carbon emissions.