Gov. Quinn's Veto of Electric Rate Reform Puts Renewables Provisions in Question

Illinois Governor Pat Quinn vetoed a bill this morning that would have reformed electric ratemaking in Illinois, saying the ComEd-supported proposal did not adequately protect ratepayers in the state. But the Governor's veto pen also strikes an unintended blow to small and distributed renewable energy sources, as the legislation also included provisions that would have expanded opportunities for individuals and businesses to install on-site renewable generation.

According to an article in the Chicago Tribune:

Flanked by consumer advocates, Gov. Pat Quinn made good on his promise Monday to veto controversial legislation fronted by Commonwealth Edison Co., a move that sets the clock ticking for the bill's proponents to gather enough votes to override the veto.

"It may be a dream come true for Commonwealth Edison, but it's a nightmare for Illinois consumers," Quinn said.

Opponents to the so-called "ComEd bill" had said it was a "Trojan horse" meant to pave the way for the utility to boost its bottom line by gutting the Illinois Commerce Commission's oversight of electricity rate hikes.

ComEd claimed the legislation was essential because it would provide a more stable way to recover the costs of smart-grid implementation -- removing regulatory lag and uncertainty. But changes in the bill would have a profound effect on how rates are determined, how often rate hikes occur and how much profit ComEd would receive.

The ICC, which reviews the utility's books as part of an 11-month process every two or three years, would be relegated to a lesser role under the legislation.

Back in May, a compromise between environmentalists saw the addition of a number of renewable energy provisions into the ComEd bill, additions likely meant to help build support for the bill among green power advocates.

The provisions would have increased current law's limit on "net-metered" renewable energy generation from 40kW to 2 MW, a limitation that many in the distributed renewables sector was holding back larger electric consumers from installing their own solar or wind systems. The bill also included a provision requiring the Illinois Power Agency to purchase a small percentage of its requirement for renewables from distributed sources.

With the law vetoed, the future of the renewables provisions are uncertain. If ComEd is successful in securing enough votes to override the Governor, then the provisions are made law in Illinois. If the utility is not able to override Quinn, all provisions of the bill (both the smart grid and renewables portions) will be back in the hands of the Illinois General Assembly during the short fall veto session, or in next year's general session.

Crain's Chicago Business provided more insight into what may be next for the bill and its backers:

Attention now shifts to the Illinois Legislature, where state Sen. Don Harmon, D-Oak Park, who voted against the ComEd bill in May, has been discussing with lawmakers how to improve the bill enough to win their support. Lawmakers are the focus of the utility’s efforts to override Mr. Quinn’s veto in November.[...]

The governor urged Chicago-based ComEd to scrap its approach and begin discussions with him and other interested parties on another tack to address the reliability of its system. As a starting point, he suggested legislation drafted by the Illinois Commerce Commission, which would allow utilities to charge ratepayers separately for special grid improvements, like so-called smart meters, but keep jurisdiction over the investments with the regulators.[...]

ComEd has been operating since early summer under the assumption that Mr. Quinn would veto the bill and has been working behind the scenes to win over lawmakers who voted "no" or "present" in May, when the General Assembly passed the legislation. The utility fell short — by a handful of votes in both chambers — of the majorities sufficient to override.

In a statement Monday, ComEd expressed disappointment in the veto.

“In the coming weeks, we will work to show how this legislation provides a diverse array of important benefits to Illinois," the utility said. "It is a jobs bill, an economic development bill, an environmental bill, a consumer benefits bill, a regulatory reform bill and an infrastructure bill.”

Highland Community College Erects Distributed Wind Turbine

Freeport's Highland Community College installed a distributed wind turbine this week, an installation that bolsters the school's turbine technician training program by providing students education in small, as well as utility-scale wind turbines. According to a story from WREX-TV in Rockford:

Highland Community College's Wind Turbine Technician Program received a big boost this morning as they raise their first residential wind turbine on campus.

Dead of Business Scott Anderson said, "It just gives us some exposure to the program, it's kind of an icon to the campus. It allows our campus to become more sustainable by producing some of its own electricity and that's just a plus that our students can use it for their training."

Not only does the turbine power the building for the program, but it also helps for hands on training in a field with a growing demand.

Wind Tech Instructor David Vrtol said, “The industry as a whole right now, the next five years, they’re anticipating a hundred thousand people plus to be hired within the field itself."

Highland’s recent graduates can attest to the opportunities in this relatively new field.

Vrtol said, "The last graduating class for instance has had 12 out of the 15 land jobs within a week before graduation or immediately after graduation."

With many looking at alternative energy as the wave of the future, HCC wants to make sure they are on the leading edge of that change.

Anderson said, "Alternative energy is not going away. So it is very important that we have it here with us and we're just going to continue to see it grow. Our graduates are having no trouble finding placement. It's just a matter of are you willing to travel to where the wind farms are going up."

Highland was able to afford the wind turbine through a grant that was co-written by Northern Illinois University.

The dean of business says the variety of wind turbines and turbine parts they have now will allow the students to work on any kind of wind turbine.

Illinois-Based Small & Community Wind Developer Opens Indiana Office

From a press release from the Purdue Research Park:

A company that has handled procurement for community wind turbine projects in Illinois has opened an office in the Purdue Research Park of Northwest Indiana.

AB Wind Power was founded in 2008 as a subsidiary of Arends Bros. LLC. Chad Braden, part owner of Arends Bros., is principal; Rob Hefner, wind sales specialist, oversees day-to-day responsibilities of the company.

Hefner said AB Wind Power helps customers interested in community wind energy projects realize their goals.

"We provide leadership in site selection, production analysis, turbine selection and placement, interconnection, funding, and coordinating installation and maintenance service through our partners," he said. "We have led projects for municipalities, the public and private sector, and now we are reaching out to the agriculture sector."

Among AB Wind Power's key services are leading turnkey project development, providing technological research and support, soliciting manufacturer options, and overseeing financing.

"Every wind turbine project is different," Hefner said. "Wind regimes, local ordinances, interconnection standards and project goals vary, but we bring together these aspects of the projects. We also procure the turbines themselves."

Hefner said AB Wind Power became a tenant in the Purdue Research Park of Northwest Indiana because of its location and amenities.

"We recently expanded to help clients in Michigan in addition to those in Illinois and Indiana. It makes sense for us to be located in the Northwest Indiana Corridor," he said. "I am a resident of Crown Point, Ind., and have heard many positives about the Purdue Research Park. When you consider the additional amenities offered, such as a business center, receptionist and marketing assistance, it made the decision to be located there an easy one."

About AB Wind Power

AB Wind Power (http://www.abwindpower.com) provides distributed and community-level wind projects that offer economic, societal and environmental benefits for the project owners. Serving Illinois, Indiana and Michigan, AB Wind Power is the source for efficient, cost-effective wind turbines that range in size from 5 kilowatt to 2.3 megawatt machines. We offer financing and leasing options to help maximize the state and federal incentives associated with wind power. Regardless of the size of our clients' needs, AB Wind Power has a practical wind turbine model that can help them start harvesting the wind.

About Purdue Research Park

The Purdue Research Park (http://www.purdueresearchpark.com) has the largest university-affiliated business incubation complex in the country in four locations across Indiana. The parks are home to about 200 companies that employ 4,000 people and are located in West Lafayette, Merrillville, Indianapolis and New Albany.

Farm Becomes First in Southern Illinois to Install Small Wind System

A farm in far southern Ava, Illinois has become the first in Southern Illinois to install a small wind turbine, says a piece from WSIL-TV:

A small family farm in Ava came closer to energy independence Thursday. Susan Anderson's home will soon be one of the first in southern Illinois to produce its own electricity.

"To be a homestead", said Anderson. "An independent, energy efficient, energy independent homestead for my grandchildren"

Solar and wind power will be the primary sources for energy. Thursday, crews were installing a wind turbine on the property. Once the system is up and running, it will produce more energy than Susan needs.

"I will have surplus energy," explained Anderson. "My meter will run backwards, it's called net-metering and once a year, Egyptian Electric will send me a check".

The initial cost for setting up an energy independent system is quite high as Anderson is spending nearly $40000. The federal and state governments offer incentives to offset the cost which helps the project pay for itself within three to five years.

South Suburban Richton Park Installs Distributed Wind Turbine

From the Southtown Star:

Richton Park has a new, 120-foot wind turbine, sitting next to the building that holds the village’s community center, village hall and the police and fire station.

“Alternative energy sources are the wave of the future,” said Rick Reinbold, the village president. “Richton Park is the first municipality in our region that has included wind turbine technology, I believe.”

Although the turbine was installed at the end of April, it is not yet operational. Theresa Thoms, Richton Park’s parks and recreation director, said the turbine is currently disengaged and officials are waiting for ComEd to set it up.

After it is connected, then the turbine, at 4445 Sauk Trail, will provide 4 percent of the community center’s electrical power, she said. “It may not sound like a lot, but extrapolated over a number of years, it is significant savings,” Reinbold said.

The cost of the turbine was $80,000, Thoms said. The village received a Renewable Energy Grant from the Illinois Clean Energy Foundation, which provided half of the funding for the wind turbine.

“The Chicago Southland has an industrial legacy of manufacturing, construction and distribution,” Reinbold said in a letter to the Renewable Energy Grant program. “This legacy makes the Southland a logical place for the growth of ‘green collar jobs’ — that is, jobs in the design, manufacturing, installation and distribution of renewable energy and sustainable technologies.”

The turbine also can help to determine whether more should be added in the area. It can provide data that can document the area’s potential for generating electricity through wind turbines.

Reinbold said the turbine, which is near two schools, can be used as an educational tool.

“We hope to use the wind turbine to encourage wider adoption of the technology,” Reinbold said in the letter.

Heston Wind to Build 50kW Turbine at Champaign Co School

Iowa-based Heston Wind has secured a contract to construct a 50kW turbine at Prairieview-Ogden Elementary School in Champaign County, the start-up firm's first contract to build a small turbine. According to an article in the Champaign News-Gazette:

Heston Wind and Renewable Energy, Bettendorf, Iowa, has been contracted to install a wind turbine for Prairieview-Ogden South Elementary School in Ogden.

The school board approved the firm's bid of $262,000 to install the 50-kilowatt turbine and 120-foot pole.

The wind turbine is projected to produce a yearly average of 75 percent of all South Elementary electricity, reducing the $25,000 annual energy cost by about $19,000.

The turbine project was postponed when the Illinois Department of Transportation said the previous site was too close to Interstate 74.

As a result, the school district had to negotiate with Francis and Dave Cavette, who own ground east of the school. The turbine will be built on school district property, but the agreement with the Cavettes stipulates that the district would pay for any damage if the turbine fell on the property.

Fifty percent of the projects will be paid for by a school energy efficiency grant.

Litchfield HS to Install Distributed Wind Turbine

The Litchfield City Council has given their zoning stamp of approval for the town's High School to construct a 1.5 kW distributed wind turbine near the school's football field, making the school one of several that will build a distributed turbine thanks to a "Wind Schools" grant from the Illinois Clean Energy Community Foundation. According to an article in the Hillsboro Journal-News:

[Litchfield Superintendent Chad] Allison said that the purpose of the project is to give the students the opportunity to see an alternative energy source and to try to educate them on how to take care of the earth.

The project is made possible through a grant from the Illinois Clean Energy Community Foundation, with which the district has worked involving its solar panel program.

The Foundation recently set up a K-12 Wind Schools Pilot program, which awarded no more than five grants to K-12 schools that demonstrated exceptional performance as recipients of Illinois Solar Schools grants.

The Litchfield School District was one of the five schools selected and could receive up to $20,000 in grant money for the project. The deadline for accepting the grant was actually June 1, but the foundation agreed to extend that date until the issues involving zoning could be resolved.

Allison said that the structure would be put up near the north end of the football field and would be a lot smaller than the commercial wind turbines, like the one located near Farmersville.[...]

Alderman Dwayne Gerl asked about the height and span of the structure. Litchfield School District's buildings and grounds coordinator Dale Bruhn said that the structure would be approximately 100 feet tall (86-feet is ideal according to Bruhn) and would be on a nine foot by nine foot base.[...]

Once the wind turbine is built, the information it provides will be web based, which will allow students in all grades, not just the high school and middle school, to learn from it.

Other winners of the foundation's first round of the Wind for Schools grant program are New Trier High School and Kankakee Community College.