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Community Wind 101: A Primer For Policymakers

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Colorado Working Landscapes
Rocky Mountain Farmers Union


Colorado Renewable Energy Forum
January 20, 2006
At the Colorado Farm Bureau Headquarters
Centennial, CO

Meeting Minutes

Attendance
Morey Wolfson, MW Energy Solutions
Scott Prestidge, Congressman Udall
Landon Gates, Colorado Farm Bureau
Jake Meffley, Environment Colorado
John Covert, Colorado Working Landscapes
Tom Potter, The New Center
Chuck Saxton, Saxton Construction
Jerry Mayer, Core-1
David Hiller, Senator Salazar
Barbara Walker, Independent Bankers
Mark Farnsworth, Highline Rural Electric Association
Susan Innis, Western Resource Advocates
Victor Creazzi, Aerofire Windpower
Ron Larson, American Solar Energy Society
Robin Hubbard, Colorado Renewable Energy Society
Bob Mailander, Rocky Mountain Farmers Union
Ron Lehr, American Wind Energy Association
Craig Cox, Interwest Energy Alliance
Mike Bowman, 25x’25, Ag Energy Workgroup
Sara Graf, Governor’s Office of Energy Management and Conservation
Jeffrey Coombe, Paradigm Biogas
Alison Burchell, Renewable Energy Consultant

Discussion of Highline REA and the recent study entitled Distributed Wind Generation Study for Northeastern Colorado, December 2005

Mark Farnsworth, General Manager of Highline Rural Electric Association, provided an overview of the recent study published by the OEMC examining the amount of wind power his utility’s distribution system could handle without system reinforcements.

Mr. Farnsworth shared the following thoughts:

Highline has a service territory that covers both the east and west grids.  A smaller portion of Highline’s service territory covers Nebraska in the east grid.  They have a total of 21 substations.  The study examined only those substations in Colorado, in the west grid, for a total of 17 substations.  Substations near the east grid will have difficulty passing additional wind power to the other portions of the distribution system.     

The Study finds that 63 large commercial scale turbines (GE 1.5 MW) could be added to Highline REA’s distribution grid.  However, in several locations the energy demand is rather low.  For example, the Wauneta Substation only has 1 MW of demand or usage much of the time.  However, the study finds that 9 turbines (13.5 MW) could be added to this substation.  There is no demand for this on the distribution system and this substation is very close to the east grid. 

The peak demand for Highline is 180 MW. 

Market access outside of Highline’s service territory requires connecting to the bulk transmission lines.  These lines allow the wind power to get out of the system.  Several substations have bulk transmission lines connecting to them; these lines are owned by WAPA or Tri-State.

Approximately 1/3 to ½ of the 17 substations studied could have a turbine installed when other factors are included in the analysis.  Some of these substations are connected to bulk transmission lines. 

The control area for Highline requires a baseload of 10 MW at all times.  To not keep this load results in a penalty. 

The principal concern to Highline’s members is whether their energy prices will go up.  It would be important for any new generation from wind power to be price neutral.

Highline see opportunities to partner or support biofuels.   

Update of Amendment 37 Implementation, Xcel’s All Source Bidding, PUC’s Least Cost Planning

Morey Wolfson created a Power Point presentation with updates for the group.  The presentation is available to anyone who requests it and available online at www.workinglandscapes.com/CREF.htm.

The A37 Implementation process could last until June 2006.  Six parties recently filed petitions for rehearing, reargument, reconsideration (RRR):  Aquila, Inc., Clean Power Markets, Inc., Colorado Independent Energy Association, Colorado Rural Electric Association, Public Service Company of Colorado, Western Resource Advocates and the Colorado Solar Energy Industries Association.  Some of the issues raised in the RRRs include penalties for non-performance, third-party administrator, ownership of RECs from older qualifying facilities, transparency/public participation, Rule 3653.

Public Service Company of Colorado has selected its winning bidders from the All-Source RFP and filed two reports with information about the bids (a “Public Version” and a “Confidential Version”).  PSCo selected bids with the following composition:

¨ 1300 MW of gas-fired generation (5 projects)

¨ 775 MW of wind generation ( 3 projects: 400 MW, 300 MW, 75 MW)

¨ 30 MW of DSM

In the bid selection process it is unclear what PSCo used for the gas price forecast.  These bids along with the Comanche 3 coal plant are expected to meet Xcel’s resource needs through 2012.

In fall of 2005 PUC staff began coordinating workshops to review changes to the Least Cost Planning rules.  The second workshop is scheduled for January 27, 2006, 9 a.m., Xcel’s Technical Services Building, 550 15th St, Denver.  The PUC may commence a rulemaking proceeding in the Spring of 2006.  The following parties have filed comments:  Colorado Office of Consumer Counsel, Colorado Renewable Energy Socity, Colorado Working Landscapes/RM Farmers Union, LS Power Associates, Southwest Energy Efficiency Project, Western Resource Advocates, and Xcel energy.  Comments can be viewed on the PUC’s website at www.dora.state.co.us/puc/rulemaking/05M-375E.htm.

Intermountain Harvesting Energy Summit, March 27-28, 2006, Loveland, CO

Tony Frank distributed information about the upcoming 7-state regional summit being organized by several organizations involved with CREF.  The Summit will begin laying the foundation for a regional agricultural network supporting state efforts to communicate renewable energy issues to rural communities and support appropriate policies and initiatives to advance renewable energy development.  The summit hopes to attract more than 300 leaders from CO, WY, UT, NM, KS, AZ, and NV.  More information and registration information can be found at www.HarvestEnergy.org

What’s New, Updates

¨ An Evening to Benefit CRES – Saturday, February 11, 6:30 p.m., 3333 S. Colorado Blvd., Denver 80222, RSVP at 303-806-5317, http://cres-energy.org.  $50 per person, credit cards excepted. 

¨  <2MW Interconnection and Net Metering: What You need to know – February 22, 2006, 8 a.m.-4 p.m., Tri-State Generation and Transmission Association.

¨  A Study of TOT3 constraints is receiving support from WAPA.  Ron Lehr has more information. 

¨ Ron Larson is developing an agricultural forum to be part of the American Solar Energy Society Conference in Denver.  The Conference runs from July 8-13.  The forum/workshop might meet on July 7.  More information about the Conference can be found at www.solar2006.org.