capx 2020 facilitates coal carol a. overland utility regulatory attorney

CapX 2020 facilitates coal

Carol A. OverlandUtility Regulatory Attorney

www.legalectric.org


There is no electricity crisis!

Yet some claim that we need

3,000-6,300MW of new generation

by 2020…

… where do they get this idea?

CapX 2020!!!


That claim of 3,000-6,300MW “need” comes from the CapX2020 report, p. 1

Anticipated load growth of 2.49 percent annually from 2009 through 2020, for an increase of 6,300 megawatts… Load growth of 6,300 would require over 8000MW of new generation, given losses that occur when transmitting electricity, electricity service to generation stations, and planning reserve margins of 15 percent to ensure reliability.

That’s a lot of new 500MW coal plants!


6,300MW estimate is for the REGION

It’s not Minnesota! It’s MN, western WI, eastern ND & SD and odd parts of Iowa.

And they’re leaving out an important point…


When they said we “need” 6,300 (or 8,000)MW, there was 16,712MW in the MISO queue in the same region!

Now there’s even more -- 16,000MW of coal alone – and lots of other generation too


What they also forget to tell you is that:

MAPP region demand was up only 0.6% and we’ve over built in the region

- NERC Reliability Assessment 2005

Proof: Xcel’s IRP = 375MW in 2015

Mandate (w/conditions) Mesaba

Will have to mandate renewables

There is no market – no high demand


And the wind promoters aren’t saying:

ALL electric markets are down Where’s the market? Illinois has over

8,000MW of wind in queue Why would eastern markets buy wind

energy plus pay cost of transmission? 30% line loss from Buff Ridge to Metro

(41% availability less 30% loss = 29%)


We’re in a non-crisis situation where we can carefully pick our generation

Generation in the public interest

Generation in compliance with mandates

Generation that makes us breathe easier

Generation we can live with


Q: How does CapX2020 facilitate coal?

A: Very well!


Thirty years ago, the legislature put us on the renewable track:

The legislature finds and declares that continued growth in demand for energy will cause severe social and economic dislocations, and that the state has a vital interest in providing for: increased efficiency in energy consumption, the development and use of renewable energy resources wherever possible, and the creation of an effective energy forecasting, planning, and education program.

Minn. Stat. 216C.05


Minnesota has a statutory preference for distributed generation and renewable energy: Distributed Generation

Minn. Stat. §216B.2411; 216B.2426

Preference for renewable energyCertificate of Need Minn. Stat. §216B.243,

Subd. 3(a); see also 216B.2422, Subd. 4; 216B.2423; 216B.2424; 216B.164, Subd. 4(b)

CapX 2020 facilitates coalFrom charge to Legislative Electric Energy Task Force:The highest priority in electric energy production and consumption is conservation of electric energy and management of demand by all segments of the community.

The following energy sources for generating electric power distributed in the state, listed in their descending order of preference, based on minimizing long-term negative environmental, social, and economic burdens imposed by the specific energy sources, are:

(1) wind and solar;(2) biomass and low-head or refurbished hydropower;(3) decomposition gases produced by solid waste management facilities, natural gas-fired cogeneration, and waste materials or byproducts combined with natural gas;(4) natural gas, hydropower that is not low-head or refurbished hydropower, and solid waste as a direct fuel or refuse-derived fuel; and(5) coal and nuclear power. (Minn. Stat. 216C.051)


So how did we get to where we are?

The 2005 Transmission Omnibus Bill…

… horrible policy that opened the door to coal

…but it started long before, with the report of the Wisconsin Reliability Assessment Organization (WRAO)


In 1998, WRAO considered a web of transmission across Minnesota into Wisconsin, and chose the Arrowhead Transmission Line as THE solution to their perceived problems

CapX2020 has proposed many of the rejected WRAO options


Note Big Stone II relies on the SW CapX line!


pssssssssst… S.Falls - Lakefield Jct. isn’t for wind. Xcel’s engineer testified that only 213-302 MW from Buff Ridge goes into that 2085MVA line at Nobles!


PIIC and Red Wing are the communities most affected by CapX2020 – 3 lines!


They “forgot” to connect it all in the close-up

The PUC put it back together, acknowledged it’s connected, by adding the blue section to the Notice Plan


CapX2020 affects 200,000 landowners

Here’s where it goes over Prairie Island – the magenta lines coming in, going around/through the reservation, and out to the south


CapX2020 affects 200,000 landowners

Its next stop is Red Wing’s new Westwood subdivision

CapX 2020 facilitates coalFrom the coal fields of ND to MN and beyond:


What can we do to close door to coal? Conservation is #1 priority Increase solar incentives to cut peak Site wind strategically, near gas plants

Utilize existing and unused transmission Utilize unused transmission reservations

Do the hard work to revamp electricity system - eliminate dependence on coal


What can we do to close door to coal? Repeal authorization of TRANSLink type

transmission company found in Minn. Stat. §§216B.02, Subd. 10; 216B.16, Subd. 7c; 216B.2425, Subd. 2;

Keep focus on Minnesota need, not “regional” as in Minn. Stat. §§216B.2421, Subd. 3(3),(9);

Remove special transmission perks such as Minn. Stat. §§216B.2425, Subd. 7(b);

Incentives for Minnesota generation – add “Minnesota generated” to Minn. Stat. §§216B.243, Subd. 8(7);


What can we do to close door to coal?

Return Siting & Routing authority to EQB

Minn. Stat. §§116C.52, Subd. 2,3; 116C.53, Subd. 2; 116C.57, Subd. 1,2(c); 116C.575; 116C.577; 116C.58; et seq.

Amend Minn. Stat. §§116C.57, Subd. 9 to provide Intervenor Compensation to facilitate public participation and give priority to public interest over the influence of special interests


Agencies need resources to do the job: Minn. Stat. §§116C.57, Subd. 9; 216B.243, Subd. 4,5,7; 216C.052

216B.65 DEPARTMENT TO EMPLOY NECESSARY STAFF.The department may employ experts, engineers, statisticians, accountants, inspectors, clerks, hearing examiners who may be attorneys and employees it deems necessary to carry out the provisions of Laws 1974, chapter 429.

SERIOUS PROBLEM: Commerce and PUC staff are so swamped now that they’ve invented and are using an informal process not authorized by law

There’s no need to facilitate coal

There is no electricity crisis

We can carefully pick our generation

Generation in the public interest

Generation in compliance with mandates

Generation that makes us breathe easier

Generation we can live with

capx 2020 facilitates coal carol a. overland utility regulatory attorney

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