Wind Industry Applauds Court’s Decision to Uphold PSC 128

Dismissal of legal challenge to state wind siting rule provides certainty for wind industry

MADISON, WISC. (April 29, 2013) – Today, Brown County Circuit Court Judge William Atkinson dismissed a lawsuit filed by the Wisconsin Realtors Association (WRA) regarding the validity of Wisconsin’s uniform wind siting rule, PSC 128.  The decision makes clear that the Public Service Commission of Wisconsin (PSC) acted lawfully in promulgating the balanced and comprehensive wind siting rule, as directed by the Legislature.

“Today’s decision represents a victory for Wisconsin’s growing wind industry,” said Wind on the Wires Executive Director Beth Soholt. “With this meritless claim as to the legality of PSC 128 now dismissed, the industry has the certainty it needs to continue creating construction, manufacturing, transportation and operation and maintenance jobs in Wisconsin.”

In the lawsuit filed last summer, WRA alleged that PSC 128 was not lawfully promulgated, arguing that a report on housing impacts was required and that the health expert on the Wind Siting Council that made recommendations to the PSC during the rulemaking process did not meet statutory requirements. In an oral decision, the judge dismissed these claims, ruling that PSC 128 does not “directly or substantially” impact housing, as required before an administrative agency must request a housing impact study, and that the health expert on the Wind Siting Council was, in fact, qualified to assess potential health impacts resulting from the implementation of PSC 128.

“We hope that today’s decision will help put an end to the challenges from opposition groups that have plagued the Wisconsin wind industry recently,” said Soholt.  “We look forward to working with Wisconsin residents and businesses to move forward following this decision and attain the economic benefits that the uniform standards in PSC 128 can provide.”

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About Wind on the Wires

Wind on the Wires is a 501(c)(3) nonprofit organization based in St. Paul, Minn., which is comprised of wind developers, environmental organizations, tribal representatives, public interest groups, clean energy advocates, farm groups and businesses providing goods and services to the wind industry. Our mission is to overcome the barriers to bringing wind energy to market by addressing technical and regulatory issues, as well as through education and public outreach.

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NEWS RELEASE

For Immediate Release

Renewable Energy Saved Illinois Consumers over $100 Million 

New report from the Illinois Power Agency shows wind and other renewables reduced wholesale power prices, boosted economic growth

CHICAGO, IL (April 10, 2012) – Illinois residents and businesses saved over $100 million in power costs thanks to wind and other renewable energy sources, a result that highlights the broad importance of wind energy to the state’s economy.

In a study prepared for the Illinois General Assembly late last month, the Illinois Power Agency (IPA) found that adding wind power to the electric grid reduced wholesale power prices by $176.8 million while simultaneously creating jobs and other economic opportunities for residents and businesses. The conclusion affirms that renewables are a positive addition to the state’s energy portfolio.

“When the sun is shining or the wind is blowing,” the report states, “the combined output of renewable generators benefits all customers by bringing down the market price of electric energy for all resources operating at that time. This is because wind and solar generation can effectively bid in at a zero fuel cost.”

According to the study, renewable resources lowered Illinois’ average locational marginal price (LMP) for electricity by $1.30 per megawatt-hour (1.3 cents per kilowatt-hour), for a total savings of more than $176 million.

“This landmark study affirms what the wind industry has known for years,” said Wind on the Wires Policy Manager Kevin Borgia. “Wind energy has no fuel cost, which allows wind generators to bid lower spot market electricity prices than any traditional energy source. This translates to lower power prices for Illinois ratepayers and businesses.”

The IPA analysis confirms similar studies from Massachusetts and New York, which also found wholesale price-reductions from incorporating renewables onto the power grids in those states.

Illinois businesses are also enjoying strong growth from the manufacturing of wind turbine components and construction of wind farms in Illinois, the study notes, highlighting a 2011 Illinois State University (ISU) report on the economic impact of wind energy in the state.

The ISU report found that the first 2,422 MW of wind installed in Illinois has created over 13,000 temporary jobs and nearly 600 permanent jobs in the state, while also providing new business to construction, engineering and manufacturing-related firms. These new opportunities were in addition to the millions of dollars paid to Illinois landowners leasing space to wind farms, and millions in new property taxes that wind developers pay to local governments in Illinois.

Despite the positive findings, the IPA report also highlights the need for additional action to ensure Illinois ratepayers fully benefit from wind energy. The IPA analysis notes that renewables can be a hedge against electricity price volatility, but those benefits are not captured by a reliance on one-year contracts for renewable energy certificates (RECs), which has been the IPA’s primary mechanism for procuring renewables since 2007.

A REC is a derivative product of renewable energy, it is not physical energy.  A reliance on one-year RECs subjects Illinois ratepayers to volatility in both REC prices and fossil fuel prices because of the laws of supply and demand. 

The price of energy from wind is near an all-time low.  Consumers would benefit from locking in long-term power-purchase agreements (PPAs) for wind energy now.    Such long-term PPAs are standard in the renewable energy industry.  Longer term contracts will lock in these low prices for a 10 to 20 year period.  They also provide a stable revenue stream necessary for new generation to be built, bringing additional jobs and economic development to the state.

The full study can be found at the IPA website: http://www2.illinois.gov/ipa.

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Wind on the Wires is a 501(c)(3) nonprofit organization based in St. Paul, Minn., which is comprised of wind developers, environmental organizations, tribal representatives, public interest groups, clean energy advocates, farm groups and businesses providing goods and services to the wind industry. Our mission is to overcome the barriers to bringing wind energy to market by addressing technical and regulatory issues, as well as through education and public outreach.

www.WindontheWires.org

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For Immediate Release

Wind on the Wires Cheers the MISO Board’s Approval of the Multi-Value Projects Portfolio

ST. PAUL, MINN., (Dec. 8, 2011) – Wind on the Wires congratulates the Midwest Independent System Operator (“MISO”) Board of Directors for approving the Multi-Value Project (“MVP”) portfolio, which includes 17 transmission lines, as part of the MISO Transmission Expansion Plan 2011 (MTEP). The MVP portfolio contains the Michigan Thumb Project, which was previously approved by the MISO Board; and the Brookings, SD-Twin Cities (Minnesota) Project, which was conditionally approved by the MISO Board in June 2011.

“Wind on the Wires commends the MISO Board of Directors for approving the 17 Candidate Multi-Value Project portfolio,” said WOW Executive Director Beth Soholt.  “We couldn’t be more pleased by this action, which is a testament to MISO’s commitment to constructing new transmission lines in the Midwest to, among other things, enable additional renewable energy to enter the market.  The decision also allows many consumers to benefit from the low cost and clean energy that comes from wind development and a robust transmission grid that can deliver electricity back and forth across the region depending on where the power is needed.”

Transmission is a key component to developing our clean energy future and, until now, has been a significant road block in the quest to bring large amounts of renewable energy onto the grid.  “The Midwest has not seen this significant of a transmission expansion for decades. WOW has been working with MISO since 2003 on transmission expansion to accommodate new wind power,” added Soholt.  MISO’s decision to move forward with building new transmission lines will also help state and local economies as billions of dollars of investment contribute to economic growth, and thousands of jobs are created as these projects come to fruition.

“The upper Midwest has some of the highest wind power potential in the entire world, but it cannot be utilized without significantly expanding the transmission system,” said Joe DeVito, WOW chairman of the board and vice president of development for RES Americas.  “Wind power is now one of the cheapest forms of new electric generation and MISO has demonstrated tremendous leadership by proposing a visionary expansion plan that will tap into the power of wind.”       

“We applaud MISO for expanding their transmission planning process to include the reliability, economic and public policy benefits of large, regional transmission projects,” said Melissa Seymour, the director of regional policy and regulation for Iberdrola Renewables. “The MVP portfolio of transmission projects will not only enable the delivery of renewable energy to meet state Renewable Portfolio Standards, but will facilitate the ability of low cost wind resources to serve a more expansive area of the MISO footprint.”

Soholt also thanks the Governors who have provided leadership and supported the modernization of the region’s transmission grid.  “Their efforts have been instrumental in the positive results we are celebrating today,” Soholt said.

Wind on the Wires is ramping up its efforts to fully participate in the various state regulatory proceedings for the individual MVP lines. Wind on the Wires looks forward to working with the transmission line sponsors, MISO staff, key decision-makers, groups and organizations and other stakeholders during the state implementation phase of approving and constructing transmission in the Midwest.

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Wind on the Wires is a 501(c)(3) nonprofit organization based in St. Paul, Minn., which is comprised of wind developers, environmental organizations, tribal representatives, public interest groups, clean energy advocates, farm groups and businesses providing goods and services to the wind industry. Our mission is to overcome the barriers to bringing wind energy to market by addressing technical and regulatory issues, as well as through education and public outreach.

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For Immediate Release

Wind on the Wires Pleased by Approval, Looks to Continue to Advance New Transmission in 2011

December 16, 2010 -- The Federal Energy Regulatory Commission (FERC) today approved a proposal by the Midwest Independent System Operator (Midwest ISO), the transmission grid operator for the Midwest, that will allocate 100% of the cost of new large regional transmission lines broadly across the region’s consumers.

The cost proposal reflects the broad regional benefits of these new transmission lines, known as Multi-Value Projects (MVPs). MVPs will reinforce an aging Midwest grid that has not seen robust transmission expansion since the 1970s. Such an expansion will help create a more flexible grid to deliver renewable energy, seize energy efficiency opportunities, reduce electricity bills and help keep the lights on. 

The FERC approval of the new MVP designation was welcomed by regional wind energy advocacy group Wind on the Wires.  According to Executive Director Beth Soholt, “Transmission is a key piece to unlocking our clean energy future, and we are pleased that FERC approved the Midwest ISO cost allocation proposal for Multi-Value Projects, which will help us realize the jobs, economic growth and environmental benefits that wind can deliver for the Midwest.  We look forward to working with the Midwest ISO to move MVP lines into the Midwest ISO Transmission Expansion Plan for 2011 (MTEP’11) to boost our Midwest grid and help ensure that wind projects can deliver their energy to market.”

Along with approving the cost allocation for MVPs, FERC also approved a proposal that allocates 90% of the costs for new generator interconnection lines (the “on ramps” to the regional grid) directly to a new generator.  While these generator interconnection lines are generally smaller, and probably less expensive than the larger MVP lines, it will be critical to understand in the transmission study process which lines are needed solely to interconnect a new generator or group of generators and which lines bring broader benefits and should be paid for by all users of the transmission system. To keep the generator interconnection lines cost effective, it will be important to have as many of the MVP lines approved in MTEP’11 as possible.  

More information:

FERC Press release: http://www.ferc.gov/media/news-releases/2010/2010-4/12-16-10-E-1.asp

Statement of FERC Chairman Jon Wellinghoff: http://www.ferc.gov/media/statements-speeches/wellinghoff/2010/12-16-10-wellinghoff-E-1.asp

Statement of FERC Commissioner John Norris: http://www.ferc.gov/media/statements-speeches/norris/2010/12-16-10-norris-E-1.asp

Wind on the Wires is a non profit 501(c)3 organization comprised of wind developers, environmental organizations, tribal representatives, public interest groups, clean energy advocates, farm groups and businesses providing goods and services to the wind industry.  Our mission is to overcome the barriers to bringing wind energy to market by addressing technical and regulatory issues, as well as through education and public outreach. 

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For Immediate Release

Regional Grid Operator Expedites Approval Process for Michigan “Thumb” Project to Deliver Clean Energy to Market, Setting Positive Precedent for Further Clean Energy Transmission in 2011

Saint Paul, MN, (Aug 20, 2010) --The Midwest Independent System Operator (Midwest ISO) today approved a clean energy transmission line known as the Michigan “Thumb” Project for inclusion in Appendix A of the Midwest Transmission Expansion Plan for 2010 (MTEP 10).  The full suite of transmission lines within MTEP 10 will be voted on in December.  Once a transmission line is included in Appendix A of MTEP and approved by the Midwest ISO Board of Directors, the utilities/transmission companies must use best efforts to construct the transmission line. The Thumb Project is needed for Michigan to meet its Renewable Energy Standard requirements in 2015.

The Thumb Project is the first regional transmission line to be considered under the Multi-Value Project, or MVP, criteria of the Midwest ISO’s cost allocation proposal.  The new cost allocation approach, currently under review at the Federal Energy Regulatory Commission (FERC), would broadly distribute the costs of large transmission lines that bring wide-ranging benefits to the Midwest region over time. As the regional grid operator for the region, the Midwest ISO’s actions on establishing a just and reasonable cost allocation proposal and now expediting a needed transmission line were welcomed by many in the wind industry.

“We are very pleased the Thumb Project has been expedited for consideration in 2010. This is a great step forward not just for Michigan, but for the overall process of building overdue new transmission to meet our clean energy goals across the Midwest,” said Beth Soholt, Executive Director of the regional wind energy advocacy group Wind on the Wires. “This will send a positive signal to wind developers, policymakers and clean energy advocates that the Midwest is serious about building the infrastructure we need to accommodate a clean energy future.”

The Thumb is one of a number of Starter Projects identified by the Midwest ISO through the Regional Generator Outlet Study for initial consideration under their recently proposed cost allocation proposal, which was filed with FERC on July 15th.  Wind on the Wires is focused on moving forward proposed transmission projects, such as the starter projects, that will enable new wind generation development as quickly as possible.  Working within the Midwest ISO stakeholder process, Wind on the Wires will advocate for the inclusion of the remainder of the Starter Projects to be included in Appendix A in MTEP11. 

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