Tuesday, December 29, 2009

Warming to climate action: Xcel web site promotes green power initiatives, cap ...

Last week, there was a minor change to the website of Xcel Energy – an unobtrusive box picturing a wind turbine along with the words, "Learn more about Xcel Energy’s climate action."But the minor graphic signals a major effort at the Minneapolis-based utility – to promote its renewable energy efforts, as well as its support for a proposed federal policy aimed at limiting greenhouse gases.The site lays out Xcel Energy’s game plan for dealing with climate change, and includes an endorsement of a uniform federal policy for a cap-and-trade system that is intended to reduce emissions of carbon dioxide.The U.S. Environmental Protection Agency (EPA) has started the process to cap carbon dioxide emissions as a pollutant under the Clean Air Act, established more than 30 years ago to deal with local and regional pollution.In posting its support of a cap and trade system that charges polluters for emissions of greenhouse gases, Xcel Energy is taking the corporate position that such a system encourages technological change to lower such emissions.In the meantime, Xcel itself is "looking to reduce our carbon dioxide emissions in Minnesota by 22 percent from 2005 levels" by 2020, said Betsy Engelking, director of resource planning for the utility."We’re doing that through power-plant conversions, solar, wind and biomass efficiency. We’re taking a multi-pronged route to gain more experience within our system," she said.Xcel Energy joins a growing number of electric utilities that publicly recognize climate change and support regional or federal action to help lessen emissions.Other utilities expressing similar climate positions include San Francisco-based Pacific Gas & Electric; Charlotte, N.C.-based Duke Energy Corp.; and New York City-based Consolidated Edison, Inc.Con Edison, for example, already is a participant in the Regional Greenhouse Gas Initiative, a cooperative effort by east coast states to develop the first mandatory cap on carbon emissions.By publicizing its support of federal climate policy, Xcel Energy differs with Fergus Falls-based Otter Tail Power Co., which until September was the lead investor in the now-defunct Big Stone II coal-fired plant in Milbank, S.D.Part of Otter Tail’s position on climate change, contained on the company’s website, reads, " … although we welcome the debate on global climate change in Congress and the state legislatures, we are concerned that a rush to legislate could lead to unintended consequences resulting in significant cost impact to consumers … "While Otter Tail Power supports a "uniform and coordinated" federal approach to greenhouse gases, the utility supports such a program only if it requires global enforcement, including participation by quickly developing Asian countries China and India.Beth Chacon, manager of environmental policy relations for Xcel Energy, said the information was highlighted on the utility’s website because, "We were receiving more inquiries from our customers about climate policy."We felt that it was important that we put on our website where we stand on this," Chacon said.Engelking offered a detailed look at Xcel’s renewable or environmental energy production intentions by power source.Wind: By 2020, Xcel Energy plans to more than double wind capacity system-wide from 2,800 megawatts to 7,000 megawatts.Engelking said Xcel will buy or develop 3,000 megawatts of that power for its system in Minnesota or Wisconsin. She said the utility will focus on developing wind because tax benefits reduce energy costs to consumers."The reality of the issue is that a power purchase agreement is just a cost that we pass through to our customers," Engelking said. "It’s extremely important to the future of Xcel that we have some experience developing wind."Wind energy development efforts will focus on Minnesota and North Dakota, the No. 1 state in wind energy potential, according to the American Wind Energy Association.Solar: System-wide, Xcel Energy plans to add between 200 and 600 megawatts of solar energy by 2020.Engelking said the utility is taking a "multi-pronged" approach to solar development, which currently is concentrated in Xcel Energy’s Colorado and New Mexico service areas.There, Xcel Energy is encouraging residential solar installation through its Solar Rewards program, which gives homeowners discounts on installed photovoltaic panels, in addition to installation on commercial buildings and building or buying power from remote solar power arrays, farms or gardens.Pending approval by the Minnesota Public Utilities Commission, Xcel Energy plans to introduce a Minnesota Solar Rewards program in January.That residential and commercial customer incentive program will complement the still-young state solar energy industry. The state’s largest solar array, a 400 kilowatt installation, recently was completed next to St. John’s University with the help of $2 million from the state’s Renewable Development Fund (RDF).Among other photovoltaic arrays is a planned 600-kilowatt development on the roof of the Minneapolis Convention Center, another project financed partly by the RDF.Arrays and remote farms provide the most solar power, but they aren’t as intriguing as the prospect of powering some of the Central Corridor LRT line with solar power."By 2020 we’ll probably have about 29 MW of solar (energy) installed," she said. "But we’re really looking at what’s happening with different types of panels. Once you can get a panel factory up and running, that’s when you really start seeing production prices drop." Currently, most photovoltaic panels are manufactured overseas.Coal and gas: Xcel also plans to re-power or retire several of its coal plants – plants that could expose the utility to tariffs if carbon limits are imposed.Two of the utility’s Twin Cities coal-fired plants – Riverside in Minneapolis and the High Bridge plant in St. Paul – have been shifted to natural gas fuel, Engelking said. Such re-powering significantly lowers carbon and particulate emissions from the power plants. Xcel currently is in the planning stages to shift its Black Dog plant in Burnsville to natural gas, she said."As these coal plants reach the end of their lives, you have to decide what to do with the plants. They are valuable sites with (power) load already built to them," Engelking said.On the retirement scene, Xcel plans to retire two coal-fired plants in Colorado, reducing the utility’s exposure to carbon tariffs.Nuclear: Xcel plans to add 336 megawatts of power generation capacity at its Monticello and Prairie Island nuclear power plants by installing new equipment at the reactors and re-licensing them to extend their generation lives by 20 years.The increased generating capacity hinges on approval by the 2010 Minnesota Legislature.Hydro: Xcel currently distributes 511 megawatts of power generated from 27 hydro plants system-wide.Engelking said the utility doesn’t plan on developing more hydro power, but added it is working on an extension of a 500 megawatt power purchase contract with Winnipeg, Manitoba-based Manitoba Hydro.Commenting on Xcel’s climate posturing, Engelking said, "I know that our message is very different than many of our competitors here in Minnesota. "When (Chairman and CEO) Richard C. Kelly took over as head of Xcel Energy, he said, ‘This is a company that is going to be profitable and environmentally responsible.’ "

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