Manitowoc Begins Power Plant Construction

Manitowoc Public Utilities (MPU) will begin construction in February on the first solid fuel power plant to be built in Wisconsin in over 20 years. The Columbus Street facility is expected to be placed into commercial operation in spring of 2006. 

“MPU has been working with consultants, the business community, state and local political leaders, and state regulators over the last several years to solve our community’s future power supply needs”, commented MPU General Manager Nilaksh Kothari. “This project supports MPU’s mission to provide low cost power while maintaining the benefits of community ownership.” 

MPU’s $71 million addition to its existing plant will employ fluidized bed boiler technology to generate 63 megawatts of power. MPU’s present plant capacity is 103 megawatts. The new addition will utilize existing water intakes and fuel handling equipment. Minor transmission system modifications will be necessary to connect the facility to the state’s electrical grid. When completed, total plant capacity will be 160 megawatts. 

Fluidized bed combustion technology was chosen for the new boiler because of low emissions, fuel cost and efficiencies, and MPU’s familiarity with the technology. MPU has operated a 20 megawatt fluidized bed boiler since 1991. The primary fuel is petroleum coke, a by-product of oil refineries, supplemented with waste paper pellets. Both the US Department of Energy and the US Environmental Protection Agency consider fluidized bed combustion a “Clean Coal Technology”.

Manitowoc Public Utilities serves over 17,000 electric and 12,000 water customers. The utility also provides steam and hot water service to several nearby customers for space and process heating.

Lobbying Your Legislators: Not Rocket Science

Lobby: to promote (as a project) or secure the passage of (as legislation) by influencing public officials. To attempt to influence or sway (as a public official) toward a desired action.

Someone once said Madison is merely 62 square miles surrounded by reality. Sometimes this can be the case. The true reality, however, is that as municipal officials you are expected to interact with state level officials from time to time, including legislators. Here are a few tips when you do contact your State Legislator or Member of Congress.

1. Be clear about the purpose of the meeting.
It is important to be clear about your objectives when visiting a State Legislator or Member or Congress and will help set the tone for the meeting. As soon as possible after you express appreciation for the visit, you should state why you requested the meeting. [“We wanted to meet with you Senator to discuss Senate Bill 1, and our concerns we have with the current language.”]

2. A lobby visit is a conversation; don't give a lecture.

A lobby visit is above all an exchange of information and views. The conversation should flow back and forth. It is important to express your views, but listen as well. You may learn valuable information about where the bill is in the process, any other groups that are supporting or opposing the bill, and who else in the Legislature may be friendly to your cause.

3. When it comes to influencing politicians, anecdotes trump data.

For politicians, a good story almost always wins out over a library of academic studies, data and graphs. Anecdotes can personalize an issue and resonate with a politician far more than even the most carefully reasoned argument. This is especially true if a pertinent anecdote can be related directly to his or her legislative district, hometown, or personal interests.

4. Stick to the basics.
Try to keep your conversation focused on a few basic points. The more complicated and convoluted your message, the greater the chance the conversation will wander into uncharted territory. That can give your politician an opportunity to avoid the issue altogether, or get into issues that are not part of your meeting objectives. You will gain more respect from the legislator and his or her staff if you stay on topic, keep it short and be courteous.

5. Keep the conversation on track.
Don't let your conversation wander to other unrelated issues. If the politician you are lobbying tries to change the topic, gently return to your main point. Many legislators are “hometowners” meaning they love to talk about their particular communities, districts and favorite issues. The “hey I know that place or person” is a favorite legislative game. This is meant to do one of two things: a) Make you feel comfortable, or b) Get the conversation off topic.

6. Don't lose your temper.
No matter what the provocation, don't get angry, sarcastic or discourteous. It’s also important to know the sensitive political news of the day (partisan politics, legislators’ legal troubles, etc.). Try to avoid sarcastic references to the opposite side of an issue or other legislators.

7. Get a commitment.
Ask your legislator for support. If all you wish to do is chit-chat, (and sometimes that can also be very valuable) drop them a letter. If your contact has a purpose (a yea or nay vote; help with moving a bill) then you have to ask for their position. It is highly likely they will say, “Well, I’m not sure yet, but I’m looking at it.” You then ask for their vote based on the information you provided or will provide to them. Not asking them for their support is similar to a salesperson not asking for the sale.

8. Don't be intimidated.
Remember, you're the expert. More than 1500 bills are introduced each legislative session. Your interests may lie in only a handful, however legislators need to know much more about many more bills. So in most cases, your politician will have only a general understanding of municipal utility issues. Become your legislator’s “go-to” person about energy, utility, and telecom issues. 

9. If you can't answer a question, don't try.
If during your meeting a politician asks you something you can't answer, don't make up a response. Instead, tell the politician you don't know the answer but you can find out and will follow up after the meeting.

10. Remember to follow-up.
Once the meeting is over, your lobbying efforts shouldn't end. Be sure to send a letter thanking her or him for the meeting. One of the most effective lobbying tactics is to invite your legislator to your utility. Giving them a first hand look at what you do will encourage them to remain loyal to our issues. Also it’s important to know the staff person in the legislator’s office. Often they have information and influence that can greatly benefit your cause.

Lobbying on municipal interests isn’t the most glamorous of topics in Madison or Washington. We are always outspent and outgunned in the financial department. But where we win–every time–is in the constituent, grass-roots department. Campaign donations are nice, but that doesn’t always translate into votes. Personal contacts, with thoughtful ideas made by constituents with a desire to participate in the process continue to be the most effective form of lobbying elected officials.

As always, if you have any questions or want to set up meetings with your State Senator or State Legislator, give MEUW staff lobbyist Scott Meske a call (608) 849-9589; or email smeske@meuw.org.

MISO Changes to Impact Wisconsin
by Atty. Mike May, Boardman Law Firm

The Midwest Independent System Operator (MISO) is at a critical juncture. Issues facing the MISO, and the resolution of those issues within the next year or so, will have a significant impact on the operation of all municipal electric utilities in Wisconsin, and elsewhere in the Midwest.

MISO was one of the first independent system operators to obtain approval from the Federal Energy Regulatory Commission (FERC), first as an ISO in 1998 and then as a Regional Transmission Organization (RTO) in compliance with FERC Order 2000, in 2001. As initially approved, the role of MISO was to operate an open access transmission tariff over a broad area to increase the availability of power sources for all users of the system.

Since MISO was approved, however, two changes have significantly altered the terrain upon which MISO will operate. First, members of the old Alliance RTO collapsed and, while some agreed to join MISO, Commonwealth Edison and AEP sought to create the New PJM Companies and join the PJM ISO. This results in a huge donut hole in the middle of the MISO landscape. The PJM proposal engendered significant FERC litigation regarding PJM, resulting in FERC orders that RTOs eliminate regional through-and-out rates (RTOR), but allowing new charges to recover lost funds, and programs to eliminate seams between the two RTOs. These new charges are called Seams Elimination Cost Adjustment (SECA). Resolution of the seams issues and SECA between PJM and MISO is a huge question, and will have a significant impact on the future viability of MISO, and costs to all participants.

Second, at the same time that these issues are being fought out at the FERC, MISO has taken on the role of developing a standard market design with locational marginal pricing (LMP) for generation in the MISO market. This additional function of developing and monitoring the generation market was not a function that the Midwest ISO was originally designed to undertake. (For an excellent discussion of the issues raised by addition of this generation market function, see “The Thorny Path To a Regional Midwest Market,” in APPA’s Public Power magazine, January-February, 2004.)

While many agree the LMP method is sound in economic theory, it raises serious issues in practice when there are transmission congested areas. Eastern Wisconsin is one of the most highly isolated and transmission congested areas in the country. In order for an LMP market to operate properly, market participants need to be allocated Financial Transmission Rights (FTRs) to allow them to protect themselves against swings in the market. These FTRs are to reflect the market participant’s right to use the transmission system as they exist prior to the imposition of LMP. There are serious questions whether such a market even works for eastern Wisconsin.

In 2003, MISO had filed a proposal to institute LMP in the early part of 2004. Objections from a number of states as to the inadequacy of the LMP program, and reliability questions raised by the large blackout in the Midwest and Northeast part of the United States on August 14, 2003, prompted MISO to withdraw the filing and establish a proposed date of December, 2004, for imposition of the LMP market. This date is also known as “Day 2.”

Some market participants -- and the Public Service Commission of Wisconsin -- are now proposing to MISO that there be a phased implementation of the market design and LMP, with Wisconsin and states to the west to be phased in once serious issues about transmission congestion have been addressed. Whether MISO will agree to such a phased implementation is problematic.

What should MEUW member utilities be doing about the upcoming MISO changes? First, it is important for every utility to plan for the future. This means assessing the impact of LMP and the allocation of FTRs to your utility, either directly, or through your joint action agency or other supplier.

Second, you need to have a plan in place for interacting both with MISO and the American Transmission Company (ATC) who acts as MISO’s agent for a number of services in Wisconsin.

Third, all utilities need to be aware of potential reliability issues and the protection of existing rights to use the transmission system. These will be critical as MISO moves to Day 2 implementation.

All Wisconsin utilities have a stake in proper implementation of MISO and the LMP market. You should be involved in assessing the impact on your utility, and how to properly respond.

MEUW Eastern Wisconsin Regional Safety Group Kicks Off!

On January 5, 2004, Lisa Haen started work as the MEUW Eastern Regional Safety Coordinator. Almost two years in the making, five MEUW members – Kaukauna Utilities and Menasha Utilities, and the Cities of Plymouth, Shawano and Two Rivers – have formed the first MEUW regional safety group, each agreeing to pay 1/5th of the total cost of hiring and retaining an Eastern Regional Safety Coordinator for at least a two-year period.

This position, modeled after the successful program operated since the mid-1990's by the Minnesota Municipal Utilities Association (MMUA), will be responsible for providing job safety and regulatory compliance training for electric line workers and other municipal employees (e.g., police, fire, public works) in those five communities. The main focus of her services will be relating to Wisconsin Com 32, DOT and ADA regulations, and general safety programs. These services will be in addition to the traditional MEUW Safety and Job Training services and sessions offered by MEUW Safety Directors Steve Hedden and Dean Larson.

Lisa is a native of Green Bay, and previously worked for Marinette County and a DePere construction company in a similar role. She and her husband Thomas reside in Little Suamico, and have three adult children. Lisa’s interests include gardening, woodworking, the Green Bay Packers and down hill skiing.

Supreme Court Rejects Alliant’s Bid to Overturn WUHCA

The U.S. Supreme Court decided on January 12 not to grant review of Alliant Energy’s challenge to the Wisconsin Utility Holding Company Act, leaving untouched the U.S. 7th Circuit Court of Appeals decision upholding almost all aspects of the Wisconsin law. The court’s decision marks a definitive end to Alliant’s three﷓year legal challenge to this key consumer protection law.

“The Supreme Court’s decision this morning confirms our state’s power to regulate utility investment and ownership for the protection of Wisconsin consumers,” said David J. Benforado, Executive Director of the Municipal Electric Utilities of Wisconsin. “I hope that this clear direction from the Court signals to Alliant that it must focus on its core business of serving electric customers here in Wisconsin.”

“This is good news for Wisconsin ratepayers,” said Wisconsin Attorney General Peg Lautenschlager. “The decision the Supreme Court let stand upholds important limits on the amount that utilities can sink into risky non-utility ventures that do nothing for their ratepayers.”

Enacted in 1985, the Wisconsin Utility Holding Company Act (WUHCA) balanced the interests of investors, utility customers, and the state by permitting limited diversification by the holding companies in exchange for reasonable regulatory controls to protect consumers. WUHCA’s restrictive diversification provisions prevent the state’s holding companies from straying too far from their core business of providing energy services to their customers in Wisconsin.

“We have seen how poor business decisions can impact the energy market and consumers with the California blackouts in 2000 and with the fall of Enron,” PSC Chair Burnie Bridge explained. “I am pleased that Wisconsin’s Holding Company Act, which provides regulators with the ability to protect the utility from risky outside financial ventures of the holding company, has withstood court challenges.”

“The Supreme Court’s decision is a victory for utility consumers in Wisconsin,” said Charlie Higley, Executive Director of the Citizens’ Utility Board. “The right of the public to oversee financial decisions by utility holding companies has been protected. Hopefully, Alliant will get back to the business of providing reliable, affordable electricity in Wisconsin instead of losing money in dubious investments overseas.”

March 9-10 in Sun Prairie
MEUW Switching and Troubleshooting Workshop

MEUW will be offering a two day switching and troubleshooting workshop on March 9-10, 2004 in conjunction with WPPI. Topics will include weak points in your system, how switching affects your system and the American Transmission Company (ATC), and discussing real troubleshooting situations just to name a few. Attendees will also learn about different types of switching apparatus and get answers to problems encountered while switching and troubleshooting. There will also be a “hands on” demonstration with Dairyland Power’s switching trailer. This workshop is designed for linemen of all levels. Hard hats, safety glasses, and rubber gloves are required PPE for this course. This workshop will be held at the WPPI headquarters in Sun Prairie.

The cost for this workshop is $60.00, which includes lunch, refreshments and handout materials. We are also offering a banquet dinner on the evening of March 9 for those who are interested. The cost of the workshop with the dinner is $85.00. Make sure you check which registration you want so we can plan accordingly. The registration deadline is February 24. A room block has been set up at the Super 8 in Sun Prairie for those who will be staying over. Reservations can be made by calling (608) 837-8889.

Your utility should have received registration materials in the mail. If you need another copy, call MEUW Office Manager Linda Olson at (608) 837-2263, or visit the “Events & Meetings” page of our website, www.meuw.org.

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