March 2 Idaho Energy Update: Workshops on Weatherization and Wind, Legislative Update

Idaho Energy Update
March 2, 2012

The Idaho PUC has announced plans to hold a two-day workshop later this month to delve into issues dealing with how utilities help fund low-income weatherization programs and energy efficiency education. And if it’s the legislative season, that means wind power in Idaho is once again under assault – we look at some of the bills below. Speaking of bills, we also have our periodic update on all legislation energy, so check below for the bills you might be interested in. Also, Idaho Power will be holding another workshop soon to further explore the challenges of adding more wind to its system. Finally, and on a more personal note, Idaho Energy Update will be heading off on an extended medical leave, and while we don’t know for sure how long that will be, we’re hoping to continue to keep you posted on important developments in the Idaho energy world. A more detailed explanation is below. Thanks as always, and if you have any calendar items, please send them along!

Ken

Ken Miller
Clean Energy Program Director
Snake River Alliance
(208) 344-9161
kmiller@snakeriveralliance.org 
www.snakeriveralliance.org

I: PUC Sets Workshop on Weatherization, Education Issues

For the second time in three years, the Idaho Public Utilities Commission will hold a workshop to delve deeper into electric utility weatherization and energy efficiency education issues, particularly as they relate to low-income and fixed-income customers who are struggling to pay their power bills.

This is great news, providing the workshops lead to improvements in the delivery of these important services to those who need them the most.

“Idaho Power Company, Avista Utilities, and Rocky Mountain Power offer low-income weatherization programs and energy conservation programs,” the PUC said in a recent order scheduling the workshop. “In recent rate cases, questions surfaced about how to best determine each utility’s appropriate level of program funding. In particular, concerns arose about how such programs are to be accurately assessed for cost-effectiveness and overall customer need.”

Utility commissioners had already issued orders directing the utilities to participate in workshops to explore these issues, and the recent order opens an investigation and schedules the workshop.

“The purpose of the workshop is for the utilities, interested persons, and Commission staff to explore in greater detail issues related to the funding, implementation, and evaluation of utility low-income weatherization and energy conservation programs,” commissioners wrote.

The workshop will begin at 10 a.m. Monday, March 19, and at 9 a.m. Tuesday, March 20, in the PUC headquarters hearing room at 472 West Washington Street in Boise. The public is invited to participate. Among the areas of interest to the PUC: How should the PUC determine the need for assistance programs for customers? Should it be based on poverty rates or unemployment rates or the number of homes needing weatherization? Or the waiting lists at the community action partnership (CAP) agencies that help with weatherization of homes? The PUC also wants to explore how to measure the “cost-effectiveness” of a utility’s low-income weatherization and education programs, such as how utilities measure energy savings or what kinds of oversight utilities might provide to CAP agencies.

After the March workshop, PUC staff will prepare a report on its findings and recommendations, after which the Commission will determine what next steps are needed.

The PUC opened a case in September 2008 to explore many similar issues. In that case, two workshops were held “to identify issues and discuss solutions pertaining to energy affordability and customers’ ability to pay energy bills.” Several groups and individuals, including the Snake River Alliance, participated in those workshops and submitted comments on how the PUC and the state might address energy affordability challenges, particularly for those on fixed incomes.

“It is the Commission’s desire that the dialogue begun by the affordability workshops continue as all parties work together in removing the barriers to affordable energy Idaho,” the Commission wrote in 2009 at the end of that process. While that case drew a lot of attention, many of the good ideas contained in the PUC’s energy affordability report unfortunately have not been implemented. One example is the PUC’s recommendation that the Legislature push for policies to assist low-income and fixed-income utility customers with their rising bills. While legislation has been proposed, it has never been enacted.

To follow the weatherization and efficiency education docket at the PUC, go to www.puc.idaho.gov and then click “File Room” and then “Electric Cases” and scroll down to GNR-E-12-01. You can also review the PUC’s report from its 2008-2009 workshop on energy affordability issues in Idaho by going to the PUC’s website and then going to “File Room” and “Closed Cases” and then scrolling to GNR-U-08-01.

II: Assault on Idaho Wind Power, Round 2

It seems like déjà vu over at the Legislature, where once again a bill has been introduced to slam the breaks on wind development in Idaho.

As he did last year, Rep. Erik Simpson, R-Idaho Falls, has introduced legislation (H561) to impose a moratorium on new wind projects. Simpson’s bill would place a two-year halt on new wind and, in the interim, create a legislative commission – made up of legislators, as opposed to wind experts – to study everything from the aesthetics of wind turbines to wind farms’ impacts on wildlife, power rates, taxpayers, property values, utility operations and “Idaho citizens.” His bill last year failed, and there’s a good chance this one will, too, given that an alternative bill was introduced in the Senate today.

That bill (we don’t have a bill number yet) by the co-chairs of the Legislature’s Interim Energy, Environment, and Technology Committee, would direct the interim committee to take time between this session and next year to “investigate the economic, social and environmental impacts of the wind industry on the state of Idaho, and whether power sold by a renewable qualifying facility to a utility at avoided cost should also transfer to a public utility, the environmental attributes of that qualifying facility, or whether such environmental attributes should be retained by the qualifying facility.”

Long story short: The Senate bill, preferable because it doesn’t slam the breaks on wind developments without first showing why that should happen, would not only examine the myriad issues surrounding wind developments, but it would also explore the thorny issue of how to deal with “green tags” or “renewable energy credits” that are created with renewable energy projects. Typically, those credits stay with the energy developer. They have real value and help make the financing of projects pencil out.

There’s yet another bill (S1364) that was introduced in the Senate by Idaho’s three big electric utilities – Idaho Power, Avista, and Rocky Mountain Power – that would give the utilities those valuable credits without them having to pay for them. Should that happen, it could put a knife in the heart of many renewable energy projects in Idaho, and not just wind farms. It would also strip the credits from developers of solar, geothermal, co-generation, biomass and other renewable energy projects. This bill has not been set for a committee hearing yet, and the idea of confiscating property that historically belonged to private business and turning it over to a state-sanctioned monopoly may well test lawmakers’ sense of fair play.

III: Idaho Power Sets Workshops on Wind Integration

Idaho Power is continuing its long-running investigation into how to most effectively integrate growing amounts of wind power onto the utility’s system and how to reduce negative impacts that can result from large amounts of intermittent energy plugging into the company’s grid.

The two-part workshop is scheduled from 10 a.m. to 2:30 p.m. at Idaho Power’s Boise headquarters. The company expects to issue a report on its wind study later this year.

“Idaho Power Company has scheduled a workshop to discuss its study of the effects and costs of integrating wind generation,” the company said in an e-mail to past participants in previous wind integration workshops. “The purpose of the workshop is to describe the study methods and findings. Findings include the estimated integration costs, as well as the operational conditions evident from the study modeling where system reliability is jeopardized as a consequence of wind generation.”

Most utilities in regions with abundant wind generation resources are conducting similar studies as they determine how to minimize possible negative impacts from adding large amounts of wind to their systems. Many utilities have far more wind on their systems than Idaho Power, and have been mostly successful in accommodating the variability of the wind-powered generation. However, it is important for utilities to ensure that their systems remain stable and reliable as they include energy resources that may not produce power on a regular basis.

Those interested in attending the workshop should contact Idaho Power via e-mail atIPC_wind_study@idahopower.com

IV: Energy Update Heads to Sabbatical

Some of you have noticed the regularity of the Idaho Energy Updates recently has not been what it usually is. Well, here’s why:

I’ve been undergoing diagnostic tests, consultations, and other stuff leading up to a March 8 surgery in Salt Lake City as part of my cancer treatment. I was diagnosed with a pretty aggressive form of cancer in my lower jaw and in my mouth just about a month ago, and we’ll be heading to the Huntsman Cancer Institute in Salt Lake next week for a fairly involved procedure that will tie up our incredibly talented (and growing!) medical team for the better part of a day. I won’t gag you with the details, other than to say it involves putting a chunk of my fibula “harvested” from my lower leg into the spot where my lower jaw was. Even I cringe at the prospect, and it’s my treatment! I expect to spend at least a week in the hospital at the very awesome Huntsman Institute before coming home to Boise for an extended recuperation, radiation, and blah, blah, blah.

Those of you who have been, or know someone who has been, through this kind of journey also know that conveying this kind of information to family, friends, co-workers, acquaintances and others is no walk in the park for anyone concerned. It’s draining for the person delivering the information, but often, too, for the person receiving it. Is this too much information or not enough? Is this too impersonal a way to convey it or not? Should I acknowledge getting the news or lay low and wait for the right time to do so? Trust me, there are no answers. Sharing information about a Big Disease regardless of what it is actually part of the treatment; at least it is for me. But at this point, despite my inability to talk clearly any more, we’re very optimistic about a good outcome. I wouldn’t wish my next month on my worst enemy, but we’re supremely confident in the skills of the caregivers and their handiwork and, ultimately, the outcome.

All of this to say that, while I will be out of the office but working from home as energy levels and other medical exigencies allow, the Alliance’s Clean Energy Program will remain as robust as ever. My colleagues, Executive Director Liz Woodruff, Energy Outreach Coordinator Lisa Young, and Nuclear Program Director Beatrice Brailsford, are already stepping in to pick up some of the chores I am unable to perform. If you have energy-related questions or news, I encourage you to contact my colleagues.

I’ve been doing these Energy Updates since July 2006 when I had the good fortune to be the NW Energy Coalition’s first Idaho staffer, and it’s one of the most fun parts of this work. I can’t wait to get back at it!

On The Agenda:

► The Public Utilities Commission will hold a two-day workshop March 19 and 20 at its Boise headquarters to explore issues relating to low-income weatherization programs and energy efficiency education issues. See above for more details.

► The Idaho Public Utilities Commission holds its next decision meetings on March 5, 19, and 26. Agendas are normally posted the day before on the Commission’s website at www.puc.state.id.us . The meetings typically start at 1:30 p.m.

IN THE LEGISLATURE: Wind Bills Blow Through House and Senate

It’s been a busy two weeks for wind development in the Idaho Legislature. One bill would impose a two-year moratorium on new wind farms, while another would direct an interim committee to study wind generation’s impacts around the state. Another still would strip the valuable “green tags” from renewable energy developers and hand them to utilities in the name of rate reduction. And the 2012 version of the Idaho Energy Plan is on its way toward eventual approval in the Legislature.

Each week, we’ll post thumbnail summaries on where the bills stand. Text of bills can be found by going to the Legislature’s main site at www.legislature.idaho.gov and clicking the “Bill Center” link and then “Legislation By Subject” and scrolling to the categories in which you’re interested in. Such as “Energy,” “Environment” or “Utilities.” You then click the link to the bill for more information. The Energy section will look something like this:

Here’s a look at the status of pending bills:

Energy Facility Siting (S1250):

Would create a “siting panel” and require a “siting certificate” for certain large energy projects. Panel would be made up of various state agency representatives and representatives from local governments, depending on where the project is proposed.

Status: Awaiting hearing in Senate State Affairs.

Sponsor(s): Sens. Elliot Werk, Edgar Malapeai, Dianne Bilyeu, Les Bock, Nicole Lefavour, and Dan Schmidt. (332-1351).

Wind Farms Moratorium (H561)

Would place a two-year moratorium on new wind farms in Idaho and create a legislative commission to study the impacts of wind development in Idaho. The bill includes a finding “that industrial wind farms and wind turbines are having a significant negative impact upon Idaho’s citizens, wildlife, aesthetic values, taxpayers, power rates, property values and the operations of Idaho’s electric utilities,” although it provides no evidence of such impacts.

Status: Awaiting action on the House floor, scheduled for Monday, March 5.

Sponsor(s): Reps. Erik Simpson, Lawrence Denney, Vito Barbieri, Lenore Barrett, Linden Bateman, Clifford Bayer, Judy Boyle, Brent Crane Thomas Loertscher, Lynn Luker, Janice McGeachin, Kathleen Sims, and Steven Thayn.

Wind Farm Impacts Study (No bill number yet)

Directs the Legislature’s Interim Energy, Environment, and Technology Committee to “investigate the economic, social, and environmental impacts of wind energy development on the State of Idaho and its citizens, and report back to the 2013 Legislature its findings.” The interim committee would also study the issue of whether “green tags” associated with renewable energy projects such as wind farms should be retained by the developer or surrendered to a utility that buys the power. The investigation would include assistance from the PUC, the Office of Energy Resources, the Northwest Power and Planning Council, and members of the public.

Status: Awaiting hearing in Senate State Affairs

Sponsor(s): Interim Energy Committee Co-Chairs Sen. Curt McKenzie and Rep. George Eskridge.

Renewable Energy “Green Tags” to Utilities (S1364)

Would require the environmental “attributes,” also known as “green tags” or “renewable energy credits” that are created with a renewable energy project be delivered to utilities rather than remain with the renewable energy project developer. Currently, these valuable commodities remain the property of the developer and help with financing the project, although the developer is free to sell them, including to a utility if the utility so chooses. Renewable energy developers say this could be the death knell of many projects, and amounts to confiscation of a valuable asset by utilities.

Status: Awaiting hearing in Senate State Affairs

Sponsor(s): Idaho Power, Avista Utilities, Rocky Mountain Power.

Rate Impacts of Large Utility Projects (H554)

Requires utilities to disclose the rate impacts of large capital expenditure projects such as transmission and generation projects.

Status: Awaiting hearing in House State Affairs

Sponsor(s): Rep. Marc Gibbs; Trent Clark of Monsanto.

Tax Deductions for Residential Energy Efficiency Improvements (H485)

Changes existing law to allow homeowners to deduct the cost of energy efficiency upgrades such as insulation or efficient windows or duct sealing from their personal income for tax purposes if the home was built in 2002 or earlier. The existing law allows deductions if the home was built prior to 1976. This would capture many more homes eligible for the incentive.

Status: Passed House, 65-0-5 and awaiting hearing in Senate Local Government

Sponsor(s): Reps. Wendy Jaquet and John Vander Woude.

2012 Idaho Energy Plan (HCR034)

Revises the 2007 Idaho Energy Plan as updated by the Interim Energy, Environment, and Technology Committee and the Idaho Strategic Energy Alliance, which is comprised mostly of Idaho utilities.

Status: Approved by House Feb. 28, 56-9-5 and awaiting hearing in Senate State Affairs.

Sponsor(s): Interim Energy Committee Co-Chairs Sen. Curt McKenzie and Rep. George Eskridge.