6.2. ERMUSR 04-14-2009 - Laserfiche WebLink

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Statement (brochure attached) details this Program and several others including Feed-in Tariff Legislation. Feed-in Tariff is an above mazket pricing program to encourage private installation of wind and solar systems. The payment from utilities under this program for energy produced by these systems ranges from 10.5 cents per kWh for wind and up to 61 cents per kWh for solar. If this ever becomes law, our rate payers will be subsidizing these installations through rates. MMUA opposes this legislation as should ERMU! Please review MMUA's other position statements included in the brochure. Dave Berg, of R. W. Beck, gave a presentation entitled "Planning for Power Supply In An Uncertain Future". His presentation is attached. He focuses on an ever declining generating capacity in MAPP (Mid-continent Area Power Pool) with most new facilities utilizing an ever decreasing reserve of more expensive natural gas. He discussed carbon tax indicating it could go as high as $60 per megawatt-hour (which would increase our customer's bills by about 60%), as well as the volatility of a carbon cap and trade program. He also discussed the down side of depending on wind generation, ie 50 MW of wind backed up by 50 MW of coal-fired generation will also require 50 MW of gas-fired generation because acoal-fired plant cannot ramp up and down rapidly enough to compensate for the variable output of a wind system. A gas-fired generator can, but is too expensive to operate as a base load plant, hence a double backup system for wind! Interesting concept! Greg Oxley, MMUA's governmental liaison, reviewed pertinent energy legislation. A summary of that activity is also attached. Much of it concentrates on repealing the moratorium on nuclear generation and changes in and/or increased emphasis on CIP and renewable energy programs. It seems that the stimulus money has a multitude of possibilities and everyone has their hand out! Incidentally, the Senate did vote to repeal the moratorium on nucleaz energy just last week, but the House has yet to pass similar legislation. They voted to uphold the moratorium in March, but most of those in the know believe it is just a matter of time before the moratorium is lifted. It can't be soon enough from my perspective! There's even legislation supporting our AC Tree Program! The latest issue of The Kiplinger Newsletter under "Energy" states "when new comprehensive energy legislation earns approval by Congress, utilities will have to slow growth in electricity use, offering programs that put the bakes on before they can get an OK for new plants or transmission lines. To do so, they'll offer sweet deals to both businesses and homeowners: Juicy rebates on the purchase of new super-energy-efficient household appliances, industrial boilers, heating and AC systems and so on, replacing old energy gulpers." This is evident in the new tax credit program just announced last week. There are now 30% Federal tax credits on energy efficient air conditioners and heat pumps with a cap of $1500 and also 30% Federal tax credit on geothermal heat pumps with no cap. That could mean up to $8,000 tax credit for a geothermal system installed. That credit coupled with our $2000 geothermal rebate could make for renewed interest in geothermal heating and cooling! A reminder, the Energy Expo is April 18 from 10 until 3 at Twin Lakes School. A flyer is attached for your edification. Please come hear key note speaker Joe Schuster as he outlines his plan for our energy independence by 2040.