May 23, 2012

Public Service Commission gets Prop C feedback at workshops

Proposition C was passed by the voters in November of last year, mandating that Missouri utilities be using 15 percent renewable energy by 2021.

How that mission will be carried out is what the Public Service Commission set out to find out.

"We decided to set up a workshop format to allow all stakeholders, consumers, parties, vendors, wind power, solar power to take part in how the rule will be written that will implement Proposition C, and that’s what’s going on right now," says Robert Clayton, PSC chairman.

Clayton says Missouri needs to maximize the number of renewable resources that are available in the state of Missouri.

"We have a number of wind resources in Northwest Missouri and Northeast Missouri that can be brought online," he says. "This rule will decide whether or not those resources will be made a priority … and will suggest how we’re going to address solar power, which generally is not done on a large scale, but on a smaller scale, house to house with solar panels. The nuts and bolts in how this works, that’s what we’re doing with this rule-making."

Once the utilities maximize resources in Missouri, they’re going to have to look at other places: Texas, Oklahoma, Kansas … all of which are moving along rapidly in the renewable energy field, Clayton says.

So what kind of feedback has the PSC gotten so far? Well, that depends on who you ask, he says.

"I think generally speaking utilities are more negative, they’re concerns are that it’s too difficult, too costly, too expensive to get those renewable resources to their customers here in Missouri," Clayton says. "If you talk to the people in the solar industry, or the wind industry, they’re very positive and they’re saying ‘look, we’ve got resources in place now we’ve got projects in the works, that we can get that power here.’"

By 2021, it’s going to be a completely different market for electricity, he says.

"Potentially we’ll have a tax or some type of cap and trade system for carbon, it’s going to be much more expensive, and that’s going to enable new renewable resources to come online. We’re just going to have to see and time will tell if they meet those mandates or not."

There’s still time to get your ideas or opinions to the PSC regarding the rule-making process. Visit http://www.psc.mo.gov.

Clayton says the PSC may be hosting another workshop to gather information, and that updates will be posted on the commission’s Web site.



Jessica Machetta interviews Robert Clayton [Download/listen MP3]

PSC Chair wants dialogue on CWIP law changes

One of the key bills before the Legislature this session is a bill that would allow electric utitilities to charge ratepayers for projects while those projects are still under construction. While a decision in the General Asembly is still a long way off, the man at the helm of the Public Service Commission thinks it would be a good idea for the PSC to discuss the matter.

PSC Chairman Robert Clayton says an inquiry and a workshop with all the stakeholders in the same room would allow for the exchange of ideas. And he acknowledges the PSC would not be involved in policy.

Clayton says it would be wrong to heed the advice of some members of the Commission who think it would be wise to wait until the legislation becomes law – if it gets that far. He says putting off discussion until August would delay bringing about a collaborative effort that will be needed.

Download/Listen: Steve Walsh report (:60 MP3)

Group sues PSC over solar, wind power ruling

The Public Service Commission is being sued by a group that accuses it of putting up barriers for people who want to produce their own solar or wind power. The Great Rivers Environmental Law Center says the PSC’s insurance rule runs counter to a state law passed last year.  The "Easy Connection Act" allows people who generate extra power using renewable resources to sell the extra power to utility companies. The PSC, however, has adopted a rule requiring generators of small amounts of power to carry $100,000 to $1 million worth of insurance.  The center says the rule will discourage people from generating their own power.

    

"Green" proposal on ballot contains questionable provision

Missouri voters get a chance to go green next week, but the top state utility regulator sees a glitch in an otherwise good proposal.

Proposition C , the so-called Green Initiative, would require Missouri’s investor-owned utilities, AmerenUE, Kansas City Power and Light, Aquila and Empire, to generate 15% of their electricity from renewable sources by the year 2021. The increase would come in steps. The utilities would have to get 2% of their electricity from solar, wind, biomass and hydropower by 2011. The percentage would increase by three percent by 2014, increase to 10% by 2018 and finally reach that 15% level by 2021.

Erin Noble with Missourians for Cleaner, Cheaper Energy says the proposal would lessen the state’s dependence on foreign fuels and would improve the quality of the environment.

There is a provision, though, that has caused alarm. Proposition C prohibits the utilities from increasing rates by more than 1% to pay for it. Noble denies backers fear utilities would abuse the proposal and hike rates without that restriction. She says that provision was added simply to protect consumers.

It’s that provision, though, that causes Public Service Commission Chairman Jeff Davis to oppose the measure. Davis says the 1% restriction is unrealistic and, perhaps, illegal. Davis estimates it would cost a utility between $7 and 8 billion just to buy the equipment for wind generation which he says doesn’t even include the cost of leasing the land necessary to operate wind turbines.

Davis agrees Missouri needs to move toward more renewable energy. He says the step increase goals in the provision are realistic. Davis questions whether it is legal, though, to compel a utility to reach renewable energy goals, but restrict its ability to recoup the costs. He predicts the issue will be settled in the courts if approved by voters.

Download/listen Brent Martin reports (:60 MP3)

Missourians warned to prepare for high heating bills

Cool, crisp air has begun to move into Missouri with state officials warning consumers to prepare for the rising cost of heating their homes.

Public Service Commission Chairman Jeff Davis says consumers should prepare for heating bills ten percent higher this year than last winter. Davis says the PSC and the Department of Natural Resources have joined together to promote energy efficiency. Davis says the agencies encourage Missourians to prepare, conserve and save. That advice comes despite a drop in energy costs. Davis says increased consumption could drive oil, natural gas and propane prices up to record highs once again.

There are tips to cut your heating bill:  close off rooms not in use, turn the thermostat down a degree or two, turn off lights and appliances not being used, and caulk around windows and doors. A little bit now could pay off big later.

For more information on how to reduce your winter heating bill go to:  http://www.beenergyefficient.org/

Download/listen Brent Martin reports (:60 MP3)