The New Mexico state legislature has passed a bill that requires public utilities other than rural electric cooperatives and municipalities to supply all retail sales of electricity in New Mexico with zero carbon resources by 2045.
The bill is SB 489, also known as the Energy Transition Act. Much of the Energy Transition Act focuses on procedures allowing utilities to obtain approval to abandon generating facilities which obtaining financing orders from the New Mexico Public Regulation Commission allowing the utilities to recover all of their energy transition costs through securitization -- issuing energy transition bonds whose costs the utilities pay by collecting an "energy transition charge" from their customers. The act creates funds to provide training and economic development in communities within 100 miles of abandoned facilities.
The law also revises New Mexico's renewable portfolio standard. It requires distribution cooperatives to sell at least 40 percent renewable energy by 2025 and at least 50 percent renewable energy by 2030, and sets a "zero carbon resource standard" target for distribution cooperatives by 2050, composed of at least 80 percent renewable energy, if feasible from technical, reliability, and affordability perspectives. For public utilities other than rural electric cooperatives and municipalities, the law requires similarly increasing percentages of renewable power, including 80 percent renewable energy resources by 2040 and 100 percent zero carbon resources by 2045. It allows public utilities to ask the Commission to provide financial or other incentives in excess of these amounts.
The bill passed the state senate with a vote of 32-9, and the state house with a vote of 43-22. It now goes to Governor Michelle Lujan Grisham for her signature. According to a statement Governor Lujan Grisham issued on March 12, "The Energy Transition Act is a promise to future generations of New Mexicans."
Other states are considering changes to their renewable portfolio standards, carbon emission limits, and other legal requirements affecting the electric power sector. If SB 489 is enacted into law, New Mexico will join California and Hawaii in having a future commitment or goal of 100 percent carbon-free electricity.
Energy powers society; society's choices shape energy policy. A blog about our energy resources and the choices they present for society.
Showing posts with label cooperative. Show all posts
Showing posts with label cooperative. Show all posts
Energy and electricity cooperatives on the rise?
Friday, October 20, 2017
Could energy cooperatives or other alternatives to investor-owned utilities play a larger role in connecting consumers with electricity, heating fuel and other forms of energy? Emerging technologies like microgrids and increased interest in decentralization and local governance could support a growth in consumer-owned utilities or similar cooperative structures.
When used as an adjective, "cooperative" generally means "involving mutual assistance in working toward a common goal." In its noun form, "cooperative" can mean "a farm, business, or other organization that is owned and run jointly by its members, who share the profits or benefits." Other definitions arise in the specific contexts of electricity and other forms of energy, but the National Rural Electric Cooperative Association cites seven core principles and values common to all cooperatives: open and voluntary membership; democratic member control; members' economic participation; autonomy and independence; education, training, and information; cooperation among cooperatives; and concern for community.
Today in the U.S., more than 900 cooperatives in 47 states provide electric service to an estimated 42 million people in 47 states. According to a trade association, distribution and generation and transmission cooperatives collectively own assets worth $175 billion, invest about $13 billion annually in new plant equipment, and employ 71,000 people in the U.S. Many cooperatives serve relatively rural areas that were not previously served by other utilities, although some have grown within other utilities' territories. This local model stands in contrast to investor-owned utilities, many of which are owned by large national or global corporations whose ultimate parent companies are based overseas.
Cooperatives or similar organizations are already part of many sectors of the economy besides electricity, including housing, financial services, agriculture, retail, fisheries, and manufacturing. Values like local self-determination, inclusion and fair dealing can align well with the cooperative form. Many states recognize the rights of consumers of various products or services to participate in cooperatives. For example, a Maine statute allows any 3 or more natural persons to incorporate a consumer cooperative association to "engage in any one or more lawful mode or modes of acquiring, producing, building, operating, manufacturing, furnishing, exchanging or distributing any type or types of property, commodities, goods or services for the primary and mutual benefit of the patrons of the association, or their patrons, if any, as ultimate consumers." This concept can broadly be applied to electricity, oil, wood, or other forms of energy.
When used as an adjective, "cooperative" generally means "involving mutual assistance in working toward a common goal." In its noun form, "cooperative" can mean "a farm, business, or other organization that is owned and run jointly by its members, who share the profits or benefits." Other definitions arise in the specific contexts of electricity and other forms of energy, but the National Rural Electric Cooperative Association cites seven core principles and values common to all cooperatives: open and voluntary membership; democratic member control; members' economic participation; autonomy and independence; education, training, and information; cooperation among cooperatives; and concern for community.
Today in the U.S., more than 900 cooperatives in 47 states provide electric service to an estimated 42 million people in 47 states. According to a trade association, distribution and generation and transmission cooperatives collectively own assets worth $175 billion, invest about $13 billion annually in new plant equipment, and employ 71,000 people in the U.S. Many cooperatives serve relatively rural areas that were not previously served by other utilities, although some have grown within other utilities' territories. This local model stands in contrast to investor-owned utilities, many of which are owned by large national or global corporations whose ultimate parent companies are based overseas.
Cooperatives or similar organizations are already part of many sectors of the economy besides electricity, including housing, financial services, agriculture, retail, fisheries, and manufacturing. Values like local self-determination, inclusion and fair dealing can align well with the cooperative form. Many states recognize the rights of consumers of various products or services to participate in cooperatives. For example, a Maine statute allows any 3 or more natural persons to incorporate a consumer cooperative association to "engage in any one or more lawful mode or modes of acquiring, producing, building, operating, manufacturing, furnishing, exchanging or distributing any type or types of property, commodities, goods or services for the primary and mutual benefit of the patrons of the association, or their patrons, if any, as ultimate consumers." This concept can broadly be applied to electricity, oil, wood, or other forms of energy.
Many states have enacted specific laws adapting electricity generation and distribution to the cooperative model. For example, Maine law allows the creation of rural electric cooperatives, which are cooperative
nonprofit membership corporations established for the purpose of supplying electricity and
promoting and extending the use of electricity. Such a cooperative can have powers including the ability to acquire electric transmission and distribution lines or systems, electric generating plants, dams, or other property determined necessary,
convenient or appropriate to accomplish the purpose for which the cooperative
is organized. If it distributes and supplies gas or electric transmission
and distribution service, the cooperative may be treated as a public utility under state law. If another public utility is already furnishing or is authorized to furnish a similar
service in or to a municipality, Public Utilities Commission approval would be required before the cooperative may furnish that service.
Cooperatives are already engaged in the utility sector as one form of consumer-owned utility. Other alternatives to investor-owned utilities exist -- for example, municipal power districts or municipally owned utilities exist in some places such as Massachusetts, or public utility districts in Washington. Whether under a cooperative or municipal form, these alternatives can be aligned with values like local self-determination and energy sovereignty -- for example, the right to choose one's own mix of energy supply resources, or manage more closely for local values. In some cases, they can also deliver essential services like heat and power at a lower cost or with improved value (such as enhanced reliability or environmental performance) compared to traditional utility systems.
As communities look to the future, cooperatives or other alternatives to investor-owned utilities may be increasingly attractive by virtue of their alignment with the local interests consuming services like electricity. If consumers perceive investor-owned utilities as not responsive to consumer needs, the cooperative form could continue to make gains in some areas, for example in the form of energy cooperative microgrids. The cooperative form has significant potential to continue to expand into the energy sector.
Hatteras Island power outage and response
Tuesday, August 1, 2017
North Carolina's Hatteras Island experienced a power outage last week when construction activity damaged two underground transmission cables serving the island. While the damage is repaired, residents face mandatory power conservation rules and visitors have been evacuated.
Hatteras Island is a barrier island located in North Carolina's Outer Banks. While the island is relatively far offshore, it is connected to the northern Outer Banks islands by the Bonner Bridge. Hatteras Island's roughly 4,000 residents and tens of thousands more seasonal visitors are supplied electricity by Cape Hatteras Electric Cooperative, a member-owned, not-for-profit electric distribution cooperative.
According to the cooperative, on July 27 a contractor building a replacement for the Bonner Bridge "accidentally drove a steel casing through the cooperative’s transmission cables" at the south side of the bridge. The cooperative says it is taking steps toward both temporary and permanent solutions. For now, it is using a permanent diesel generator in the village of Buxton as well as temporary backup diesels to provide power to the island and is "working to expand the temporary generation service on Hatteras Island in order to accommodate a staged reentry of visitors." Meanwhile, the cooperative is working to splice the damaged underground cable and to build a new overhead transmission line, so permanent transmission service can be restored.
Calling the incident an "unprecedented complete loss of power delivery to Hatteras Island," Dare County issued a mandatory evacuation order for all visitors to Hatteras Island effective July 29, citing "life safety issues from the loss of reliable electrical power on Hatteras Island and growing uncertainty as to when repairs to the main transmission line will be completed to enable restoration of full power to the island." Estimates suggested over 10,000 visitors have been kept off Hatteras Island as a result of the evacuation order, with proper credentials required for reentry.
According to the county's website, a complete repair might take from one to two weeks. The county notes that the on-island diesel generators "will only be able to run if load is at minimal levels and everyone is conserving." The county cites mandatory power and water conservation measures in effect, including a requirement to disconnect system circuit breakers for air conditioning systems and hot tub heaters.
Hatteras Island is a barrier island located in North Carolina's Outer Banks. While the island is relatively far offshore, it is connected to the northern Outer Banks islands by the Bonner Bridge. Hatteras Island's roughly 4,000 residents and tens of thousands more seasonal visitors are supplied electricity by Cape Hatteras Electric Cooperative, a member-owned, not-for-profit electric distribution cooperative.
According to the cooperative, on July 27 a contractor building a replacement for the Bonner Bridge "accidentally drove a steel casing through the cooperative’s transmission cables" at the south side of the bridge. The cooperative says it is taking steps toward both temporary and permanent solutions. For now, it is using a permanent diesel generator in the village of Buxton as well as temporary backup diesels to provide power to the island and is "working to expand the temporary generation service on Hatteras Island in order to accommodate a staged reentry of visitors." Meanwhile, the cooperative is working to splice the damaged underground cable and to build a new overhead transmission line, so permanent transmission service can be restored.
Calling the incident an "unprecedented complete loss of power delivery to Hatteras Island," Dare County issued a mandatory evacuation order for all visitors to Hatteras Island effective July 29, citing "life safety issues from the loss of reliable electrical power on Hatteras Island and growing uncertainty as to when repairs to the main transmission line will be completed to enable restoration of full power to the island." Estimates suggested over 10,000 visitors have been kept off Hatteras Island as a result of the evacuation order, with proper credentials required for reentry.
According to the county's website, a complete repair might take from one to two weeks. The county notes that the on-island diesel generators "will only be able to run if load is at minimal levels and everyone is conserving." The county cites mandatory power and water conservation measures in effect, including a requirement to disconnect system circuit breakers for air conditioning systems and hot tub heaters.
Emera Maine proposes Swans Island Electric Coop acquisition
Thursday, September 1, 2016
Maine utility Emera Maine and Swan's Island Electric Cooperative have asked the Maine Public Utilities Commission for approval of Emera Maine's proposed acquisition of the island cooperative. The electric companies say reducing electric rates for consumers is the motivation.
Swan's Island Electric Cooperative is a member-owned rural electric cooperative incorporated in 1949. The cooperative provides electric service to approximately 560 meters in the island communities of Swan's Island and Frenchboro. It receives electricity from the mainland Emera Maine system, via undersea cables running from Mount Desert Island.
In a petition filed September 1, Emera Maine and the cooperative and described a proposed transaction through which Emera Maine would acquire most of Swan's Island Electric Cooperative's assets, acquire all of its service territory, and provide electric service to all Swan's Island and Frenchboro customers. Swan's Island Electric Cooperative would cease providing utility service, wind up its affairs, and formally dissolve the Cooperative.
The petition states that the "primary benefit of the proposed transaction is that Swan's Island and Frenchboro ratepayers will receive immediate and substantial rate relief." According to the petition, the costs of providing electricity to a remote island and small cooperative membership have led to high electricity rates for customers of the cooperative.
The petition notes that Swan's Island customers currently pay delivery charges of 12.343 cents per kilowatt hour and Frenchboro customers pay 15.917 cents per kilowatt hour. Fixed meter charges add another $46.84 per month for Swan's Island customers (or $48.26 for Frenchboro.) The petition contrasts these rates to "a typical residential customer in Emera's Bangor Hydro District", with a delivery charge of 10.770 cents per kilowatt hour and a minimum charge of $7.48 per month.
According to the petition, the cooperative's high rates prompted members to investigate the possibility of a merger with Emera. This led to the August 31, 2016 execution of an Asset Purchase Agreement, under which Emera will purchase the bulk of the cooperative's assets, acquire its service territory and provide service to its current customers, subject to regulatory approval. According to the petition, 90% of votes by cooperative members supported the transaction.
The petition describes Emera's commitments as including the installation of modern "smart meters" for all new cooperative customers, and notes anticipation that the undersea cables will need replacement "within the next several years at an estimated cost of $3.4 million." Emera points to its experience providing service to remote areas, including the Cranberry Isles.
The transaction requires approval by the Maine Public Utilities Commission. The Commission has docketed it as Docket No. 2016-00209.
Swan's Island Electric Cooperative is a member-owned rural electric cooperative incorporated in 1949. The cooperative provides electric service to approximately 560 meters in the island communities of Swan's Island and Frenchboro. It receives electricity from the mainland Emera Maine system, via undersea cables running from Mount Desert Island.
In a petition filed September 1, Emera Maine and the cooperative and described a proposed transaction through which Emera Maine would acquire most of Swan's Island Electric Cooperative's assets, acquire all of its service territory, and provide electric service to all Swan's Island and Frenchboro customers. Swan's Island Electric Cooperative would cease providing utility service, wind up its affairs, and formally dissolve the Cooperative.
The petition states that the "primary benefit of the proposed transaction is that Swan's Island and Frenchboro ratepayers will receive immediate and substantial rate relief." According to the petition, the costs of providing electricity to a remote island and small cooperative membership have led to high electricity rates for customers of the cooperative.
The petition notes that Swan's Island customers currently pay delivery charges of 12.343 cents per kilowatt hour and Frenchboro customers pay 15.917 cents per kilowatt hour. Fixed meter charges add another $46.84 per month for Swan's Island customers (or $48.26 for Frenchboro.) The petition contrasts these rates to "a typical residential customer in Emera's Bangor Hydro District", with a delivery charge of 10.770 cents per kilowatt hour and a minimum charge of $7.48 per month.
According to the petition, the cooperative's high rates prompted members to investigate the possibility of a merger with Emera. This led to the August 31, 2016 execution of an Asset Purchase Agreement, under which Emera will purchase the bulk of the cooperative's assets, acquire its service territory and provide service to its current customers, subject to regulatory approval. According to the petition, 90% of votes by cooperative members supported the transaction.
The petition describes Emera's commitments as including the installation of modern "smart meters" for all new cooperative customers, and notes anticipation that the undersea cables will need replacement "within the next several years at an estimated cost of $3.4 million." Emera points to its experience providing service to remote areas, including the Cranberry Isles.
The transaction requires approval by the Maine Public Utilities Commission. The Commission has docketed it as Docket No. 2016-00209.
2/24/10: some news from Maine
Wednesday, February 24, 2010
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?
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?
Subscribe to:
Posts (Atom)
