Wind Energy for Local Governments

1. Wind Energy for Local Governments Larry Flowers 24 March 2004

2. WPA Utility Partnerships • PMA Green Tags • Transmission Analysis • Public Power Workshops • Coop Outreach • Green Pricing Support • Wind Energy Finance Tool • Wind-Hydro Analysis

3. Capacity & Cost Trends Cost of Energy and Cumulative Domestic Capacity Capacity (MW) Cost of Energy (cents/kWh*) *Year 2000 dollars Increased Turbine Size - R&D Advances - Manufacturing Improvements

4. World Growth Market Total Installed Wind Capacity 1. Germany: 14000 MW 2. United States: 6374 MW 3. Spain: 5780 MW 4. Denmark: 3094 MW 5. India: 1900 MW World total 2003: 37220 MW Source: WindPower Monthly

7. Drivers for Wind Power • Declining Wind Costs • Fuel Price Uncertainty • Federal and State Policies • Economic Development • Green Power • Energy Security

8. Wind Economics- Determining Factors • Wind Resource • Financing and Ownership Structure • Taxes and Policy Incentives • Plant Size • Green field or site expansion

9. Economic Development Opportunities • Land Lease Payments: 2-3% of gross revenue $2500-4000/MW/year • Local property tax revenue: 100 MW brings in on the order of $500K-$1 million/yr • 1-2 jobs/MW during construction • 2-5 permanent O&M jobs per 50-100 MW, • Local construction and service industry: concrete, towers usually done locally • Investment as Equity Owners: production tax credit, accelerated depreciation • Manufacturing and Assembly plants expanding in U.S. (Micon in IL, LM Glasfiber in ND)

11. American Municipal Power-Ohio* Austin Energy, TX Cedar Falls Utilities, IA City of Bowling Green, OH City of Howard, SD City of Palo Alto, CA City Public Service of San Antonio, TX City of St. Charles, IL City Utilities of Springfield, MO Clark Public Utilities, WA Colorado Springs Utilities, CO Energy Northwest, OR/WA* Eugene Water & Electric Board, OR Hull Municipal Light Plant, MA Lamar Light and Power, CO Lenox Municipal Utilities, IA Lincoln Electric System, NE Los Angeles Dept. of Water & Power, CA Missouri River Energy Services, SD* Moorhead Public Service, MN Municipal Energy Agency of Nebraska, NE* Oklahoma Municipal Power Authority, OK* Omaha Public Power District, NE* Pasadena Water & Power, CA Platte River Power Authority, CO* Princeton Municipal Light Department, MA Sacramento Municipal Utility District, CA Seattle City Light, WA Southern Minnesota Municipal Power Agency, MN* Tacoma Power, WA Traverse City Light & Power, MI Wall Lake Municipal Utilities, IA Waverly Light and Power, IA Wisconsin Public Power Inc., WI* * Supplies wind power to a number of municipal utilities Wind Powered Municipal Utilities

12. Waverly Light and Power • Municipal utility serving 4,300 • First public power system in Midwest to own and operate wind generation. • Owns 2, 750-kW turbines and 1, 80-kW turbine • Wind supplies 15% of its residential electricity needs • Selling green tags to support new wind development (Iowa Energy Tags) • Planning 1.8 MW new wind Skeets 4 -- NEG MICON Waverly, Iowa http://www.waverlyia.com/WLP/Wind/wind_IDX.htm

13. Moorhead Public Service • Launched green pricing program in 1998 • Installed 2, 750-kW wind turbines • Tremendous response from community • Sold out capacity of 2nd turbine in a few months • 7% of its customers participate in Capture the Wind (highest in U.S.) http://www.mpsutility.com/capture.htm

14. Austin Energy • 1999 Austin City Council resolution called for 5% renewables by 2005 • 2000 launched green pricing program • Installed 77 MW of wind in 2001 for green power customers • Plans another 25 MW wind • Fixed price for green power, exempts customers from fuel cost increases • Green power was cheaper than conventional power for some time http://www.austinenergy.com/greenchoice/sources.htm

15. Eugene Water & Electric Board • Oregon’s largest public utility • Partnered with Pacificorp to develop 41 MW wind in WY • Able to spread risk by partnering • Larger project more cost-effective • 6.5 MW wind green priced by EWEB • Exempts customers from price increases • Green premium dropped by nearly 60% • Purchasing 25 MW wind from Stateline • Purchasing 7 MW wind from BPA Foote Creek Rim, Wyoming http://www.eweb.org/windpower/

16. Seattle City Light • 2000 City Council resolutions to meet all future electricity needs with no net greenhouse gas emissions • 2001 more stringent resolutions adopted • 2001 City Council approved plan to have 5% of utility supply come from wind • Seattle City Light is to purchase 100 MW from Stateline Project starting 8/02 • Wind purchase increasing to as much as 175 MW by 2004 • Seattle City Light also has voluntary green pricing program Pacificorp 263-MW Stateline Wind Project Along the Washington-Oregon Border http://www.ci.seattle.wa.us/light/green/greenpower/

17. Wind for Schools Spirit Lake Community School • Location: Spirit Lake, Iowa • Turbine Manufacturer: NEG Micon • Turbine Size: 750 KW Photo courtesy of Spirit Lake Community Schools

18. “In my 44 years in the municipal utility business, no utility project has ever generated more customer support and interest than our wind turbine project.” Nick Scholer, former manager of Algona Municipal Utilities, Algona, Iowa

19. Carpe Ventem www.windpoweringamerica.gov