Thursday, July 28, 2011

Innterview with Ron Binz

By: Rebecca Cantwell

Many people think of utility regulation as an arcane and dull realm. But things were pretty lively when Ron Binz served as chairman of the Colorado Public Utilities Commission from 2007 until April 2011. He led the Colorado PUC in implementing the many policy changes championed by Gov. Bill Ritter and the legislature to bring forward Colorado’s “New Energy Economy.” Binz talked with Smart Energy Living shortly after leaving his post as chief utility regulator.

Q. You presided over big changes in state policy. What do you feel best about?


A. It would be hard not to say that at the top was our implementation of the Clean Air Clean Jobs act. It was a legislative directive for the Commission, in one fell swoop, to clean up the coal emissions of Xcel and Black Hills. Typically plants are cleaned up in onesies and twosies. This was a comprehensive look at the whole coal fleet and was probably alone in the nation to treat it at one time in terms of hazardous pollutants and carbon emissions. It was a huge case with 34 legal parties and hearings that went on for several weeks.


Q. What will it mean for the average Coloradan, good and bad? For example, it will increase rates, correct?


A. Rates will increase between now and 2020 no matter what. We estimate our decision to retire old coal plants and replace them with new natural gas plants will result in rates that will be only about 3 percent higher. It’s an impact, but the benefits in reduced smog and reduced particulates that, for example, create haze in natural parks, are all desirable. We built in a hedge against future carbon regulation when we switched from coal to a fuel that causes less carbon emissions.


Q. When will we see some results?


A. The commission order of December 15, 2010 specifies what will happen to a bunch of power plants. Nothing happens until next year when the first closures happen. Closures and conversions of coal plants will happen through the end of 2017. Familiar icons like the Cherokee coal plant in the northern metro area that is now emitting steam all winter will be converted to natural gas. By doing that, we will cut one of the largest sources of hazardous air pollution in the Denver area.


Q. What does the fact that this was so difficult and unusual say about the way utilities are structured and regulated?


A. Utilities going forward will have to be different kinds of businesses. This case showed us how much more nimble utilities will need to be. We were responding to an EPA requirement to clean up carbon. I’m proud we could show that a state could move quickly to implement something like this and, with the cooperation of the utility, achieve a good result.


Q. You came in for a lot of criticism along the way though.


The criticism I took was for being involved in legislative process in shaping the bill so that it would be good for consumers. I did that at the request of the governor, who knew the commission had expertise in rates. My involvement was not in the beginning but at end of it when most components had been agreed to. The opponents to the legislation were trying to upset the process any way they could and they settled on criticizing me for getting involved in the legislation. In my experience, the involvement of a chairman is usual, not unusual.



Q. One of the conundrums of recent energy policy is that to achieve energy efficiency, you are trying to get utilities to sell less of the product they make money selling. What do you think works?


A. Beginning in 2007, we moved in a direction toward a more aggressive pursuit of energy efficiency for the utilities. We required twice as much efficiency – twice as much kilowatt savings or energy not used –as the law required.
We adopted aggressive goals in 2008 when we made that decision. Xcel and Black Hills and all the gas companies began to develop energy efficiency programs within the utility, like rebates for air conditioners and refrigerators and a whole bevy of programs. The theory is that the energy saved by the utility is less expensive than building plants to create that energy.
That policy chugged along for a couple years and then in the fall of 2010 , we encouraged Xcel to increase energy savings by an additional 30 percent. We told them, “ You’ve been doing good --now let’s have more of a stretch goal.” Xcel preferred a slower growth pace. Their proposal was to increase by 8 percent over what they had been doing. But the commission basically agreed with the push goal of a 30 percent increase in efficiency.


Q. What do they get out of the deal?


A. If Xcel achieves these goals, it is rewarded handsomely. They get their costs recovered quickly and a bonus on top. That treatment is designed to counteract the built-in disincentive of not wanting to save electricity because the company is in the business of selling electricity. We try to change the benefit-cost equation by making energy efficiency the most profitable thing they can do.
Now Colorado is in middle of pack nationally on energy efficiency. I hope the commission continues to push this. It does make so much sense to use the utility to pursue energy efficiency.


Q. Where do you see utility regulation heading?


A. I think regulation needs to continue evolving. The model of regulators simply deciding the rates, that is probably soon to be displaced by something different. We can look at experiences of price cap regulation where you set a cap and let the utility do what it needs with its costs and investments to stay below the cap. You set a price and let them decide what they need to do. This model has been shown to produce more efficient results. We need a mode of regulation where the focus is on the price to customers.


Q. What impact will the trend toward individuals and communities owning their own sources of power have on utilities?


A. That is beginning to happen and will mushroom – the homeowner-provided solar panels and the wind tower on commercial property. Those are instances where customers are putting in production equipment or leasing it. That will cause the utility to lose load and lose customers and they don’t like that. The more of that that happens, the more pressure on the utility. As a general matter, I think we will see the utilities move into the business of providing rooftop solar systems.


Q. Since the utilities are monopolies, will they drive others out?


A. As long as regulators don’t let utilities use their monopoly status, the competing firms should be able to get along. It has worked in telecom. Generally the new players have done very well, and we can imagine something similar in electric power. But more generally, the pressure from distributed generation, or community power, is a good thing and will keep pressure on the utilities to do a better job.


Q. Colorado came a long way on renewable energy under your tenure. How would you characterize the transformation?


A. Renewable energy is now really woven into the fabric of Colorado. When you flip on a light switch, one kilowatt hour out of seven is produced by renewable energy and we are heading to one out of three, and at a cost that is acceptable. Customer bills went up but not a lot and polling shows customers are happy to have renewable energy in the mix. We moved from a “least cost’’ strategy to one that realizes the environmental effects of what we do and makes it a greater component of decision making. And this happened with the “greening’’ of Xcel Energy. The same company that opposed the Colorado Green wind project in 2003 was the leading wind provider in the U.S. by 2010. So it’s been a happy coincidence of regulators, the governor, legislators and the utility who saw the business sense in that. Colorado is a beacon for how you can move steadily and strongly towards renewable energy.


In addition to his work leading Colorado’s utility regulation, Binz was also an active member of the National Association of Regulatory Utility Commissioners, serving as Chair of NARUC’s Task Force on Climate Policy, and as a member of both the Energy Resources and Environment Committee and the International Affairs Committee. Binz now heads Public Policy Consulting (www.rbinz.com).

Wednesday, July 27, 2011

The myths of solar debunked: Part 2

The myths of solar debunked: Part 2

JULY, 14 2011
HEIDI IHRKE
HIGH NOON SOLAR
569 S. WESTGATE DR. #4
GRAND JUNCTION, CO 81505
970-241-0209
WWW.HIGHNOONSOLAR.COM
The myths on solar continue being refuted this week in part 2 of a 3-part series. Our next article will focus specifically on financial myths associated with solar.

MYTH #1 Solar needs to be installed at a weird angle on my roof.

This myth, once again, had some past truth to it but isn't relevant for most of today's installations. Solar hot water panels were usually installed at a 54-degree angle to optimize winter solar gain, when the sun is low in the sky. This is because solar hot water panels cannot store heat on an annual basis, just on a daily basis, so the angle is put at the one required for winter heating, a high angle and one that required the panels being lifted away from the roof.

Solar electric panels work in a much different way since the utility grid can store excess power generated. The optimum angle for solar electric panels, on an annual basis in Grand Junction, is 30-39 degrees, depending on your information source. However, installing panels flush to the roof (the most common roof angle around the Grand Valley is about 20 degrees) only loses 4% production annually. This can be accounted for when designing the system, leaving the end product working as expected and not looking like an eyesore.

MYTH #2 Solar has to be installed facing south.

This one may get an initial rising of eyebrows from the “solar purists,” but it relates strongly to the last myth.

First, due to declination in Colorado, the perfect orientation for solar panels is actually right around 10 degrees east of south. That aside, many people don't have south facing roofs or, if they do, they may be very shaded. Should these people just get disqualified from solar or get a system that is lifted at a strange angle to the roof? Of course not.

Solar can be mounted to the east, southeast, south, southwest or west roofs. Efficiency loss to mount a system directly east-facing versus south is around 14%; for west the loss is 18%. A good designer will simply make up for this by adding another panel or two to the array that, ultimately, will allow the system to produce the same amount of annual power as the south-facing solar system.

MYTH #3 The power that goes into manufacturing a solar electric panel never actually gets made up by the energy it, in turn, produces.

This one is easy because there are a lot of studies on the subject. The term we are talking about here is Energy Payback Time (EPBT) or how long it takes for a solar panel to make more electricity than what went into creating it.

This term is used in all energy production techniques and is something that gets reviewed heavily by investors and developers for technologies such as oil shale. If you have to use more energy to get a product than that product then makes, why do it? Each solar panel has a different EPBT, due to different techniques in manufacturing, but for SunPower high efficiency 72 cell modules, the payback is 1.4- 3.8 years, depending on global location of installation.

MYTH #4 Climate change isn't real.

OK, this one isn't a specific solar myth but being active in the renewable energy field means I should address it nonetheless.

Perhaps it will mean a letter to the editor from someone who has learned “facts” from individuals paid by the industries dependent on folks believing global warming is a hoax to keep their bottom line secured, but that's the way that goes.

You think we would have learned a thing or two when this happened 50 years ago with tobacco companies after data revealed a link between smoking and lung disease. The tobacco industry just hired actors that were dressed up as doctors who gave advice that the reports were false. Nothing to see here; keep smoking away.

Ninety-eight percent (yes, that many) of climate scientists throughout the world have reached consensus that global climate change is happening. When 98% of medical doctors tell me not to do something because it will kill me, I listen to them. They are the experts, not the actors dressed up like them.

Nine of the 10 hottest years in history have occurred in the last 13 years. Watch the evening news to get regular updates on this situation, including all the “freak” numbers of tornadoes, mega-floods, droughts, wildfires, and hurricanes. The Arctic ice cap reached its record low volume last year. Climate change is real and, as Al Gore puts it: “Wishful thinking and denial lead to dead ends.”


http://www.gjfreepress.com/apps/pbcs.dll/article?AID=/20110715/COLUMNISTS/110719992/1068&parentprofile=1059&template=printart

The myths of solar debunked: Part 1

The myths of solar debunked: Part 1

JULY, 7 2011
HEIDI IHRKE
HIGH NOON SOLAR
569 S. WESTGATE DR. #4
GRAND JUNCTION, CO 81505
WWW.HIGHNOONSOLAR.COM
970-241-0209

There are a lot of myths that surround the solar industry. Part of this is because it is a variable technology that has been used to power everything from construction warning signs to space stations to Walmart. Plus, the industry has a long history surrounding tax incentives, rebates, feed in tariffs and, sometimes, the lack of all of these. Today, I hope to put some of the myths surrounding solar to rest.

MYTH #1 You need to have batteries if you want a solar system.

This one used to be true, back in the day, so its no wonder people still hold it as fact. That said, it is still a myth with today's solar applications. Cabins, boats, RVs and the like used to be the main reason people got a solar system. Wherever utility lines didn't run but power was needed, solar was the solution. These battery systems are called ‘off grid' applications. Solar panels charge batteries and you have power for cloudy days and nighttime. They are still relevant systems, as long as grid power isn't currently available. However, if your home or business is already getting power from ‘the grid,' you don't need to go ‘off grid' to reap the rewards of solar. Solar systems with the utility grid already in place is called ‘grid tie.' Grid tie uses no batteries. None. Solar produces electricity that's used in the home and, if it's more than what the home needs, it turns the utility meter backwards. This excess power gets saved in the utility grid for rainy days and nights, when solar doesn't produce. After a year of this give and take, putting extra solar into the grid, then taking it back out when you need it, can produce a year -end electricity usage from the power company of zero.

MYTH #2 It has to be a perfectly clear day for solar to work.

Solar panels certainly work better when its sunny out but they also work better when it's cold out, just like any electronics. The prime condition for a solar panel to perform in is a cold, sunny, winter day in the high elevations. You can't get much better than that. That said, we have 3 other seasons and many places where solar is installed that is at sea level and maybe doesn't ever see winter. Solar panels produce power even in lower light conditions, such as cloudy weather and early morning. Some panels are actually designed to work better in these hot or low-light conditions, such as the SunPower brand solar panels, which incorporates a patented design called Maxeon Technology. This technology translates as less efficiency lost every day due to heat or cloudy conditions, meaning more power actually gets made using the same size panel as a comparable, less efficient model. The high heat situation is especially important for Grand Junction applications, where the summer days are long and hot.

MYTH #3 Solar could never work in a place like Minnesota.

First, review the last myth we just talked about. Second, Germany has the same solar radiation access as Alaska but has installed more solar than all of the United States. In Minnesota, the design simply incorporates more ways to shed snow and higher tilt angle due to latitude. Otherwise, it cranks away nicely there.

MYTH #4 Solar is ugly.

I could make the argument here that gas wells and coal mining looks ugly too, it's just not found in your backyard as often. However, I agree that a lot of solar systems that used to be installed and, unfortunately, still do get installed by some contractors, certainly do look ugly. This is the fault of the contractor rather than the product, though. Solar panels can easily be flush mounted to east, south or west roofs (south being the most efficient) and don't have to be picked up at funny angles to work. Solar can even be used in dual purpose applications, such as a carport (you may have seen FCI Constructor's new solar carport on I-70B Loop recently) or as an awning. Some solar panels, such as SunPower panels, are all black to be more aesthetically pleasing and easier to integrate with roofs.

MYTH #5 Some Homeowners Associations (HOAs) don't allow solar.

Colorado's solar access laws, which date back to 1979, prohibit any residential covenants that restrict solar access. HB 1270 of 2008 extended the law to protect installations of wind turbines that meet the state's interconnection standards, and certain energy-efficiency measures including awnings, shutters and other shade structures, garage fans, energy-efficient outdoor lighting, retractable clotheslines, and evaporative coolers. Some exceptions are made to allow for aesthetic requirements that do not significantly increase the cost of the device or decrease its performance.


http://www.gjfreepress.com/apps/pbcs.dll/article?AID=/20110707/COLUMNISTS/110709998&template=printart

Monday, July 11, 2011

Spreading the word in Mesa County about energy efficiency

A team of 11 AmeriCorps National Civilian Community Corps members recently began a five-week service project in Mesa County to support a partnership between public and private entities dedicated to energy efficiency.

The AmeriCorps NCCC team will be canvassing neighborhoods, talking with residents at farmers' markets, and introducing new energy efficiency services to business owners throughout the county.

Their goal is to promote the Grand Valley Energy Alliance's “Red Door Challenge” program that gives residents opportunities to save 25% or more on their home utility bills.

The Grand Valley Energy Alliance is made up of local jurisdictions, utility companies, and other public and private organizations.

Once residents have signed up, the local utility company, Xcel Energy, will work with its partners Lightly Treading, Frost Busters and Coolth, as well as Energy Wise, to implement energy audits that point out ways homeowners can take action.

Common issues include improving ventilation, sealing and insulating, and improving lighting and windows. These audits, valued between $300 and $450, are being offered for a reduced price through rebates and stimulus money, or could even be free for low-income qualifying homes, courtesy of Housing Resources of Western Colorado.

The AmeriCorps team will also be promoting energy efficiency services offered through the “GreenBack$” program, a collaboration of the GJ Chamber of Commerce, the Palisade Chamber and the Fruita Chamber. The program is designed to encourage Mesa County businesses to make decisions that save them money and resources.

“The work that this enthusiastic team is doing will be invaluable to our local efforts to be more energy efficient,” said Kathy Portner, neighborhood services manager for the City of Grand Junction, one of the project sponsors.

Information about the residential program is located online at www.reddoorchallenge.com and information about the business program can be found at www.greenbacksproject.com.

— Free Press Staff Report

Thursday, July 7, 2011

U.S. solar installations up 22 percent in 2010 over 2009

U.S. solar installations up 22 percent in 2010 over 2009

Chris Meehan CleanEnergyAuthority.com
JUL 07, 2011
A newly released report from the Interstate Renewable Energy Council (IREC) found that the there were 124,000 solar installations—including photovoltaics (PVs), concentrating solar power and solar thermal—in the U.S. in 2010. That’s an increase of 22 percent over 2009. And 2011 is likely to beat that.
Each of the leading states grew their solar installation significantly as well, according to the IREC report, U.S. Solar Market Trends 2010.
“The amount of PV capacity installed in Arizona, Colorado, Massachusetts, Nevada, New Jersey, New Mexico, Pennsylvania and Texas installed in 2010 was at least double the capacity installed in each state in 2009,” the report said. “California remains the largest U.S. market, with about 28 percent of the U.S. installed capacity completed in 2010. However, this is a significant drop in market share from the 49 percent recorded in 2009.”
New Jersey and California are likely to remain the top two states in terms of solar installations, said report author Larry Sherwood. IREC has been producing the report for four years now and monitoring the data for longer, he said.
Among the trends Sherwood saw for 2010 was significant adoption by utilities.
“I think the biggest change in 2010 is the growth in the utility-sector installations, which were pretty much non-existent five years ago,” he said. “I would say it’s likely to become the largest sector.”
However, Sherwood doesn’t expect growth in the utility sector to totally dominate the other solar markets, residential and commercial.
Although the federal incentives have helped spread the adoption of solar throughout the country, local solar incentives and rebates are also important to growing the solar industry, according to Sherwood.
“By where the installations are happening, you can see that they’re an important part of the package,” he said.
Looking forward, the growth trends are expected to continue in 2011, particularly in the utility sector, according to the report.
“Costs are going down and the supply of modules is pretty strong, so I think you’re going to see the prices continue to go down,” Sherwood said.
He also anticipates that the other costs related to solar, the soft costs, will come down, just not as quickly as the drop in module cost prices.
Pictured: Annual Installed Grid-Connected PV Capacity by Sector (2001-2010).