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AmerenUE makes first-ever wind power purchase

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For the first time in its company history, AmerenUE has made a wind power purchase.

The corporation this week signed an agreement to purchase 102 megawatts of wind power from a wind farm in Iowa.

The power will tie into the Midwest transmission grid and fulfills Ameren’s commitment to add 100 megawatts of renewable energy by 2010.

Ameren Manager of Renewable Energy Bill Barberiere says this is an environmentally responsible way to add clean electricity to the grid.

"A house will consume about, if you figure about 12 megawatt hours for the year is what the average home will consume in a year, we will get enough to completely power a little over 26,000 houses for the year," he said.

Barberiere says this purchase also fulfills Missouri’s Proposition C legislation, which passed last fall and requires utilities to generate a percentage of their power through renewable resources. The 15-year agreement with the wind farm begins Sept 1.

The agreement with AmerenUE to sell renewable wind energy from the 102.3 megawatt second phase of its Pioneer Prairie Wind Farm, which has a total installed capacity of 300 megawatt already in operation.

"This is Horizon’s first Power Purchase Agreement with AmerenUE and we applaud AmerenUE for making a long-term commitment to supply their Missouri customers with pollution-free wind energy," said Gabriel Alonso, Chief Executive Officer of Horizon Wind Energy. "This is the third PPA closing for our 2009 project portfolio; we find this to be encouraging and are proud to partner with AmerenUE."

The second phase of the Pioneer Prairie Wind Farm is located in Mitchell County, Iowa. The wind farm spans approximately 10,000 acres comprises 62 Vestas V82 wind turbines that produce 1.65 megawatts each. The second phase of the Pioneer Prairie Wind Farm began full operations in January.

Horizon Wind Energy develops, constructs, owns and operates wind farms throughout North America. The Houston, Texas-based company operates more than 20 offices across the United States and has developed more than 2,800 megawatts and operates more than 2,000 megawatts of wind farms.

For more, visit horizonwind.com .

For more about Ameren UE, visit ameren.com .

Erin Hyden reports [Download/listen MP3]

Ameren suspends effort to build Callaway II

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AmerenUE has pulled the plug on Callaway II.

AmerenUE Senior Vice President for Missouri Energy Delivery, Richard Mark, has told the Missourinet the decision to ask legislative sponsors to no longer pursue construction work in progress, or CWIP , legislation comes in conjunction with the utility’s decision to suspend efforts to build another nuclear power plant. Ameren stunned many at the Capitol today by announcing it would no longer pursue the legislation it has said it needs to build a second nuclear power plant in Callaway County. The first nuclear power plant went on line in 1984.

Mark said that without the legislation, it would be impossible to finance construction of a second plant, expected to cost at least $6 billion and take as many as seven years to build.

Missouri law, at present, prevents a utility from charging customers for the cost of constructing a plant while construction is in progress. Construction costs can only be recouped after the plant begins production. Opposition to Ameren’s proposal to change state law rose immediately in the legislature. Mark, though, said it was the lack of state-wide support, not the opposition, which convinced Ameren officials to abandon their efforts in Jefferson City. Mark said the debate centered on rates, when it should have revolved around the state energy policy.

Mark said Ameren has informed the Nuclear Regulatory Commission about its decision to suspend plans to build a second nuclear power plant. He indicated the utility might consider selling the license to another utility. He said there are no plans to return to the legislature next year with a revised CWIP proposal.

AmerenUE is Missouri’s largest electric utility. Based in St. Louis, Ameren provides electricity and natural gas to 1.2 million customers in Missouri. Ameren Corporation, which also serves customers in Illinois, has assets of approximately $23 billion.

Download/listen Brent Martin interviews Richard Mark (10 min MP3)

Public Service Commission gets Prop C feedback at workshops

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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]

House Speaker sees no need to rush CWIP legislation

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House Speaker Ron Richard says he’s in no hurry to push legislation that Missouri’s largest utility insists it needs to build a second nuclear power plant.

Speaker Richard, a Republican from Joplin, sees no need to rush through the Construction Work in Progress, or CWIP, legislation. Richard was surprised by the opposition to SB228 raised during a Senate hearing and infers that perhaps the issue is being rushed through.

"I remember from my years just watching the process that on really important pieces of legislation it always took two, three or four years to get things worked out," Richard tells Capitol reporters.

AmerenUE wants to overturn state law that prohibits a utility from charging ratepayers for the cost of building power plants during construction. Ameren says it cannot afford the up-front construction cost of between $6 and $9 billion dollars to build a second nuclear power plant in Callaway County and must be allowed to pass the costs on while the plant is going up.

Richard says he hasn’t gotten a feel for how the issue might fly in the House.

"Our guys in the House have told me, ‘We want open discussion and a long time to think about it and we’ll see’," Richard says, "No promises, but we’re going to have a long discussion about it."

Richard says he supports nuclear energy, especially if it can keep the cost of electricity low in Missouri. Richard, the former House Economic Development Committee Chairman, says one of Missouri’s main advantages in recruiting new companies is its low cost of electric power. He says the state must keep the cost per kilowatt hour low.

The House could craft its own legislation, but Richard says it is more likely that it will wait to see what the Senate does with its bill.

The Senate Commerce Committee heard more than three-and-a-half hours of

testimony on SB228 earlier in the week. A total of 35 witnesses testified before the panel, arguing both sides of the issue.

Ameren has argued that constructing a second nuclear power plant at Callaway would benefit the state, not just through lower electric rates, but through employment. AmerenUE President Tom Voss told the committee Ameren would employ about 12,000 construction workers to build the second plant with an estimated spin-off of 4,000 jobs. He estimated permanent employment at about 500.

The committee has yet to vote on the bill.

Download/listen Brent Martin reports (:60 MP3)

Bio-diesel mandate being pushed in Senate

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Missouri has a mandate to sell gasoline mixed with 10% ethanol. A state senator wants to extend the bio-fuels mandate to include bio-diesel.

Sen. Bill Stouffer (R-Napton) is pushing SB29 that would require a 5% bio-diesel blend be sold in Missouri as long as its price is at or lower than regular diesel. It would allow for "splash blending" and require petroleum distribution terminals to have both regular and bio-diesel on hand at all times.

Stouffer has told the Senate Agriculture Committee that his bill contains provisions to guarantee the quality of bio-diesel. Quality became an issue in Minnesota when it approved a stepped, bio-diesel mandate. Stouffer says the industry learned from the experience in Minnesota and he has incorporated lessons into the bill.

Lobbyist Harry Gallagher with the American Petroleum opposes the bill. He says it has the same main problem the ethanol mandate has: interference with the marketplace.

Bruce Heine with Magellan Pipeline objects to two provisions in the bill. He says the provision that lifts the mandate when the price of bio-diesel drops below the price of regular diesel creates an environment in which the mandate starts and stops regularly. He says a second provision would force his company to invest $2 million per petroleum distribution terminal to maintain the inventory the bill requires. Heine says it would be much cheaper for his company to transport bio-diesel between its five terminals through pipelines.

Magellan, according to Heine, is considering construction of a $4 billion dollar pipeline from the Midwest to New York to carry bio-fuels to the East Coast. Heine says the company doesn’t oppose bio-diesel; it opposes a bill that is flawed.

The committee has approved the bill and recommends the full Senate pass it.

Download/listen Brent Martin reports (:60 MP3)

"Green" proposal on ballot contains questionable provision

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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)

Study claims oil prices, not other factors, driving up crop prices

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A new study says the price of a barrel of oil has more to do with farm commodity prices than tax incentives, import tariffs and mandates.

Tax credits are available for those who produce ethanol, mandates are in place that require the use of biofuels and tariffs keep out ethanol from other countries, such as Brazil. None of that impacts the price of corn and soybeans as much as the price of a barrel of oil says Pat Westhoff, co-director of the University of Missouri Food and Agricultural Policy Research Institute, known as FAPRI.

Westhoff says the FAPRI study indicates oil prices drive farm commodity prices now and record oil prices have created record farm commodity prices. Oil topped $136 a barrel on Wednesday. November new crop soybeans topped $15 a bushel. December new crop corn draws close to eight dollars.

Westhoff says the study considered 13 scenarios based on 500 random factors, but never foresaw the incredible rise in oil and commodity prices. The report is 68 pages long. It reviews the impact of the 2008 Food, Conservation and Energy Act (the farm bill) as well as the Energy Independence and Security Act of 2007 (the energy bill).

FAPRI creates computer models of agriculture policy in the United States and makes a link to international agricultural models. The University of Missouri team works with members at Iowa State University.

FAPRI will issue a new analysis including the higher oil prices and new crop production estimates this summer.

Download/listen Brent Martin reports (1:10 MP3)

Bill Would Require Lawmakers to Disclose Tax Credits Received

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State lawmakers would have to include any state tax credits they receive on their personal financial disclosure statements under a bill being considered by a House committee.

Rep. Shannon Cooper (R-Clinton) says he got the idea during hearings of the Interim Tax Policy Committee in which it came to light that a few Missouri legislators received tax credits, but none had to disclose them to the public. Mostly, lawmakers received tax credits for their investment in ethanol plants. Cooper doesn’t mind the practice, but does mind the secrecy.

Cooper’s bill also would require that lawmakers disclose tax credits acquired by their spouse or their dependent children. HB 1674 would require the tax credits be disclosed on the personal financial disclosure statements filed as public records with the Missouri Ethics Commission.

Information supplied by the Missouri Department of Agriculture indicates that eight current state lawmakers or their spouses have received thousands in new generation tax credits, mainly for investments in ethanol plants, but also bio-diesel, pork processing and dairy. Some have received as little as $500 with one state representative’s family topping $200,000 in agriculture tax credits. A number of former state legislators also have received substantial sums in new generation tax credits.

Download/listen Brent Martin reports (:60 MP3)

Bond Addresses Lawmakers at State Capitol

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Missouri’s senior United State Senator returns to the State Capitol to address state lawmakers. In a speech to members of the Missouri House, Senator Kit Bond (R-MO)  spoke of the need for Missouri and the rest of the country to get away from the reliance on foreign oil.

Bond says ethanol and biodiesel plants are improving farmers’ returns and offering a cleaner environment. But he says we must move beyond the stage we are at now, by looking to cellulosic ethanol which is made out of switchgrass and chips.

Bond also embraces clean coal technology, saying the United States has a 250 year supply of coal, but it is difficult to burn that coal. He says we must develop the technology to liquify that coal and take most of the pollutants out of it.

Download/Listen: Senator Bond’s address to Missouri House (15:00 MP3)

Smart End Device: Tool For Energy Efficiency

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The state’s utlities industry is searching for ways to keep residents powered up and plugged in as demand for energy is expected to surge. One idea is to introduce what leaders of the industry call Smart End Devices into residents’ homes. President Chuck Caisley with the Missouri Energy Development Association says these devices are household items such as air conditioning units or refrigerators that could communicate with utility companies to determine forecasted weather and expected peaks in energy use. He says the appliances could then work in "smart" way, using less energy to cool down in cooler temperatures in the morning and letting the appliance gradually rise to normal temperatures during the hotter afternoons.  He says the appliances would then be using less energy during peak times. Plus, he says it gives the consumers options in energy prices. Caisley adds the devices would also put keep money circulating within local communities through investments in energy efficiency programs instead of being used to purchase coal produced outside the state.

Vice President Clark Gellings with the Electric Power Research Institute says there is no one silver bullet for implementing efficient energy production though and he says it will take a portfolio of technologies to meet increasing demands for energy.

AUDIO: Laura McNamara reports (:60 MP3)