Slow Winds of Change

Posted on: October 31, 2009 | musiclover | 1 Comment | Print Article | Rate Post:

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By Heidi Zemach for Seward City News

Net Metering is coming to Seward. But unlike the wind, it’s probably not going to happen overnight, and it won’t move fast. That means that residents such as Theresa and Dennis Butts, who have already purchased and installed a new wind turbine for their business, and at least two other local households, will have to wait a while longer before being able to connect to the grid.

The Butts purchased a state-of-the-art Skystream wind turbine almost a year ago. They hoped that their $12,000 turbine would enable them to lower their marine business’ energy bills, and lower their carbon footprint by using a cleaner source of energy. But after inspecting their hookup equipment, Seward Electric Association said no, it would neither be safe nor allowable.

“It’s only going to save me $50 or $60 a month, so it’s not really about the savings,” said Theresa Butts. “It’s about getting the ball rolling in the right direction.” She said people at the energy conferences she attends laugh at Seward for being so behind the times.

But the tide—or wind— may be changing.
The Regulatory Commission of Alaska (RCA), voted October 14 to approve a state net metering policy. Net metering allows those who produce power from alternative energy sources to tie in to the local distribution grid, and receive credit—or lower their own bills for the power they produce. With excess power, the utility meters effectively spin backwards, feeding electricity back into the system. RCA’s ruling applies only to certain utilities on the Railbelt—including Chugach Electric—but not to Seward. The ruling specifies “economically regulated electric utilities” with total retail sales of 5,000,000kWh or more, explains Andy Baker, an independent clean energy consultant in Anchorage. While Seward Electric’s monthly sales (5 million kWh) are well above that in retail sales, the utility is not economically regulated by RCA, and therefore does not fall under RCA’s proposed net metering guidelines, Baker said. Chugach Electric, which supplies Seward’s power will be required to offer net metering to its customers however, Baker said. Unless Seward adopts a similar policy of its own, it could look pretty embarrassing.

“People on the Chugach Electric system and HEA will be getting net metering, so Seward will be surrounded by people that have net metering. They’ll be the odd man out,” Baker said. He believes that if enough Seward area citizens push for it via petitions, and speaking out at city council meetings, the city might be moved to dalso adopt net metering.

But city officials insist they are already heading that way.
“We are going to have net metering in Seward,” said John Foutz, Seward’s electric utility manager. “The question is when can we get it set up.” What’s standing in the way is the city’s concern for safety of the line workers, for the grid itself, and the time it takes to amend the city’s existing contract with Chugach Electric to allow us net metering, Foutz said. Once the amended contract is accepted by Chugach, then it must be approved by RCA, all of which will mean a lengthy bureaucratic process, he said. (Photo: Seward Utility Manager John Foutz)

Seward city officials also have long expressed concern about the unpredictable, fluctuating amounts of power that could be sent into the grid by wind turbines, and its resulting safety for the grid itself. But the new RCA guidelines address this concern by specifying that affected utilities must limit alternative energy connections to 1.5% of their average retail demand. The private generation systems also are limited to producing no more than 25 kilowatts. In Seward’s case, the limit of alternative energy produced system-wide would be about 1500 kilowatts per month according to Foutz. As Skystream wind turbines can only produce a maximum of 3.7 kilowatts, (and solar panels arrays are about the same) Seward could allow 150 wind turbines to hook up before attaining the utility’s limit. They would also have to be distributed among different power lines so as not to stress any particular area, he said.

The city also would require two meters be installed in order to keep track of the amount of excess power a customer is generating, and therefore correctly bill Chugach. One meter would measure the power coming in via the utility company, and the other meter would measure the surplus power being generated by the private power source. RCA’s net metering rule says participating consumers will have a monthly billing and “true-up” cycle.” But the definition of that term needs to be clarified, Foutz said.

A look at Homer’s experience might be useful.
Outside of Homer, where Rep. Paul Seaton, R-35, lives, wind turbines abound. There’s one just three houses up from his home, four up on the hill, and the local winery recently installed one. In fact, there are even more wind turbines operating in Nikiski, Kenai and Kasiloff than in Homer itself. Homer Electric Association’s Sustainable Natural Alternative Power program, (SNAP) has spurred that trend, along with people’s desire to lower their energy costs, Seaton said. HEA’s year-old SNAP program goes beyond the net metering concept. Not only does it allow customers to generate their own power, and sell it back to the cooperative, co-op members can also choose to donate on their monthly bill to encourage more people to try renewable forms of energy. The money donated to HEA is split among the individuals generating electricity in order to repay them more than the wholesale cost, Seaton said.

Seaton hopes to dispel some common myths about net metering. First, there has never been a single utility worker electrocuted by an alternative energy source, he said. As to the cost to consumers, a new utility meter and two manual throw switches totals about $100 according to Seaton. Officials at every utility he has visited tell him that the effect of net metering on their bottom line has been “miniscule.” They say that the public relations aspect of allowing customers to lower their bills and carbon footprint has been well worth the slight additional cost, Seaton said.

Sen. Gary Stevens, District R- Kodiak, who visited Seward recently, said all the alternative energy innovations around the state made for “exciting times in Alaska.” Kodiak Electric Association has installed three new wind turbines on Pillar Mountain, and also has the Terror Lake Hydroelectric Dam. In the first month of operation, the wind turbines saved Kodiak Electric Association 100,000 gallons of diesel fuel, Stevens said.

The Alaska Vocational Technology Education Center (AVTEC) will install an industrial-size North Wind 100 windmill in Seward late next spring in order to train students from throughout the state for jobs in their own communities running alternative energy including hydro-electric and wind power projects. Ironically, the state’s vocational school does not plan to actually use the facility to generate any power for their buildings in Seward however. In fact they have no idea whether the wind at its location, adjacent to the power plant building at the applied technology campus on Blair Road, would be sufficient to help power the AVTEC facility. But if its blades start turning, and it starts producing plenty of power, the center might consider using it, says assistant AVTEC administrator Dick Harroll.

Seward resident Rhonda Hubbard, personally wouldn’t want the trouble of putting up a wind turbine herself, but supports the efforts of residents lucky enough to have a renewable energy source close by. Hubbard’s chief concern is for local residents to get a fair price for utilities. She believes that the solution is for Seward to get out of the electric utility business altogether. She believes that running a utility rife with problems has proved too difficult for a small town like ours. It’s also unfair that those living outside the city limits don’t have a voice (vote) in the affairs of their utility, she said. Raising utility rates, as proposed in the upcoming two-year budget, just bring people closer to the breaking point.

“If you no longer believe you deserve more hikes in your utility rate then don’t tolerate them by voicing your concerns to council members and the city administration,” Hubbard stated, in a post on SCN. “It’s time to act folks, otherwise it’s going to be another long, cold, dark, and expensive winter for us all.” (heidizemach@yahoo.com)

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