Manitowoc Public Utilities Opens New Generator to Public

On June 15 Manitowoc Public Utilities marked the completion of the “Unit 9” generation addition to the municipal power plant with a ribbon cutting and a public open house, held on the grounds of Manitowoc Public Utilities.

The occasion marked the first new base load solid fuel plant to be built in Wisconsin in more than two decades, with the exception of MPU’s Unit 8 addition in 1990.

The unit uses “clean coal” circulating fluidized bed (CFB) boiler technology. In comparison with a traditional coal-fired boiler, a CFB boiler burns fuel more efficiently by re-circulating solid particles of unburned fuel until virtually all of the solids have been combusted. Unit 9 is fueled primarily by petroleum coke, an inexpensive fuel which is the by-product of oil refineries, but CFB boiler technology also allows for a variety of fuel options. Natural limestone is mixed with the petroleum coke before it is burned, which greatly reduces sulfur dioxide emissions.

The Unit 9 turbine-generator is capable of producing 63.4 megawatts of power, nearly doubling the existing plant capacity.

According to MPU, the first full year of performance testing and operations yielded excellent results--Unit 9 performed better than expected in emissions levels, limestone consumption and efficiencies.

MPU hosted tours of the new facility, heard remarks from MPU General Manager Nilaksh Kothari, Manitowoc Mayor Kevin Crawford and several other contractors and officials involved in the project.

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APPA Washington Report
Long-Term View
By Robert Varela, Editor, APPA’s Public Power Weekly

The Federal Energy Regulatory Commission is making progress when it comes to carrying out Congress’ requirement that regional transmission organizations offer long-term transmission rights. One attorney for public power utilities gave the commission a “B-” for its recent order largely approving the Midwest Independent Transmission System Operator’s proposal for offering long-term transmission rights.

“MISO seems to be making a good faith effort” on long-term transmission rights, another public power executive said.

That said, the commission and the RTOs still have a ways to go. And there’s a question about whether they’re headed in the right direction.

In a positive step, the commission called for one major change in approving the Midwest ISO’s long-term transmission rights proposal. Under the MISO plan, long-term financial transmission rights would not be fully funded —a violation of one of the guidelines in FERC’s Order No. 681, which directed RTOs to file long-term transmission rights plans. The commission in a May 17 order directed the Midwest ISO to make a compliance filing with a funding mechanism and allocation method to support the long-term financial transmission rights.

The commission also approved PJM’s long-term rights plan May 17 after PJM added a mechanism to fully fund long-term transmission rights in response to an earlier FERC directive.

However, the commission’s MISO order also has a glaring and puzzling flaw. Transmission-dependent utilities in the Midwest argued that the Midwest ISO should be required to plan for the region’s next generation of baseload resources, and to assure that transmission capacity and sufficient long-term transmission rights are available for load-serving entities that invest in new, capital-intensive generation.

The ISO agreed to clarify its rules to address the concerns of the transmission-dependent utilities and FERC said it agreed with the utilities that the Midwest ISO is required to plan for generation expansions. So far, so good. But the commission went on to say that Order No. 681 does not require the Midwest ISO to provide advance guarantees of long-term transmission rights before a new power plant goes into service. A new plant will require a transmission system evaluation to determine the additional transmission capacity required, plus a simultaneous feasibility test to determine the auction revenue rights available for allocation, the commission said.

“We find it reasonable that the system evaluation and simultaneous feasibility tests are done when the unit goes into service and therefore is eligible to obtain baseload [auction revenue rights] in the next allocation,” the commission said. That will be a big problem for anyone planning to build a new $1 billion power plant, who would want to have long-term takeaway contracts and the associated transmission service lined up in advance, an attorney involved in the proceeding observed. So much for encouraging new generation.

Another problem cropped up in the PJM order. The commission denied a request by the Long Island Power Authority for comparable access to long-term transmission rights as a load-serving entity that, although outside PJM, is otherwise similarly situated to PJM members. However, FERC held out the possibility of future relief for LIPA, which pointed out that PJM’s “Qualifying Transmission Customer” criteria would preclude it from ever obtaining long-term transmission rights, no matter how long it took transmission service and paid embedded costs of PJM’s system.

“PJM stakeholders should develop market rules to address these circumstances in the future,” the commission said in a footnote.

The question of comparable treatment for load-serving utilities outside an RTO’s borders looms as a continuing issue for FERC as it considers the California ISO’s congestion revenue rights scheme. Also still to come for the commission are long-term transmission rights proposals by the New England ISO and the New York ISO. Public power utilities in New York have protested that the NYISO’s proposal is patently deficient.

The broader question surrounding all of these long-term transmission right proposals is whether it’s a matter of putting lipstick on a pig.

It’s an impossibly complex system: LTTRs, ARRs, CRRs, FTRs, counter-flow FTRs, zonal or nodal Energy Settlement Areas, infeasible ARRs, uplift allocation mechanisms, external LSEs, Zonal Base Load, stage 1A ARRs, stage 1B ARRs, incremental ARRs, stage 2 ARRs. That raises the broader question of whether there is a better way of running the grid to provide, at the end of the day, the greatest benefit to consumers (rather than marketers, generators or markets).

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2007 2008 MEUW Officers and Board of Directors

Based on the district elections held in May 2007, and the general elections held during the Annual Business Meeting on June 15, congratulations to the following members of the 2007 2008 MEUW Board of Directors:

Officers: President Bob Friberg, Florence; 1st V.P. Scott Reimer, Rice Lake; 2nd V.P. Jeff Feldt, Kaukauna; Secretary Treasurer Zak Bloom, Waupun; Past Pres. Mark Frye, Oconomowoc; Executive Director David Benforado MEUW.

Board of Directors: District 1: Director Carl Gaulke, River Falls; Alt. Dir. David DeJongh, Cornell; District 2: Director Tim Putz, Arcadia; Alt. Dir. Rick Skifton, Wis. Rapids; District 3: Director Andy Onesti, Shawano; Alt. Dir. Lon Bushey, Eagle River; District 4: Tom Bushman, Two Rivers; Alt. Dir. Doug Young, Menasha; District 5: Director Cecil Rolfe, Bangor; Alt. Dir. John Hauser, Cashton; District 6: Director Dave Mikonowicz, Reedsburg; Alt. Dir. Pat Drone, Prairie du Sac; District 7: Director David Tracey, Pardeeville; Alt. Dir. Richard Kirchoff, Hustisford; District 8: Director Mike Reynolds, Boscobel; Alt. Dir. Jim Kolbe, Hazel Green; District 9: Director Tim Herlitzka, Waunakee; Alt. Dir. David Herfel, Mount Horeb; District 10: Director Darnell Wagner, Hartford; Alt. Dir. Dale Lythjohan, Cedarburg.

At Large Directors: John Andler, Columbus; John MacKinnon, Plymouth; Joe Pacovsky, Marshfield; Steve Thompson, New London.

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Resolutions Adopted at MEUW Annual Meeting

Since 1998, the MEUW has made a special effort to pass substantive policy resolutions each year at the Annual Meeting. The resolutions have become an effective tool to develop MEUW positions on issues, direct MEUW staff regarding those issues, and to communicate MEUW’s positions to others.

The following three resolutions will be printed into a booklet and circulated to all members of the Wisconsin Congressional Delegation in Washington, DC, the Governor, PSC Commissioners, all Wisconsin Legislators, MEUW Members and other interested parties. If you are interested in past MEUW policy resolutions, please find them on MEUW’s website: http://meuw.org/govrelpolicyres.htm.

• 2007 1: Commending Nine MEUW Member Utilities for Switching Their Diesel Generators to Burn Biodiesel Fuel and Reducing Air Emissions;

• 2007 2: Commending Governor Jim Doyle for Leading Wisconsin Toward Increased Energy Efficiency and Energy Independence;

• 2007 3: Commending Members of the Wisconsin Congressional Delegation for Introducing and Sponsoring Legislation in the 100th Congress to Address “Captive Rail Shipper” Problems.

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78th MEUW Annual Conference in Appleton

The 78th MEUW Annual Conference was held at the Radisson Paper Valley Hotel in Appleton on June 13-15, 2007.

This year’s theme was Public Power: Economic Development and Workforce Planning Issues. Attendees had a full day of sessions and took home a tool box of resources, including a copy of APPA’s Planning for Success: An Economic Development Guide for Small Public Power Communities.

Once again, Wednesday featured a pre-conference Municipal Telecom Seminar.

The WUSA Trade Show returned to the Annual Conference in 2007, now on Thursday, before the Awards Banquet.

Newly-appointed PSC Commissioner Lauren Azar was a special guest at the Banquet. She addressed the group and gave us a sense of the passion she has for her new job.

This year’s recipient of the Don Smith Distinguished Service Award was David Mikonowicz, who has served many years on the MEUW Board of Directors, including two years as MEUW President and has led the Reedsburg Utility Commission through a great many changes during his tenure. Congratulations, Dave!

We hope to see you next year, June 11-13, 2008, for the MEUW Annual Conference at the new Stevens Point Holiday Inn. Please also mark your calendars for the next MEUW/REC Joint Superintendents Conference, January 9-11, 2008, also at the Stevens Point Holiday Inn.

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Safety Achievement Awards Presented at Annual Conference

The 2006 MEUW Safety Achievement Awards were given out at the 2007 MEUW Annual Conference in Appleton on Thursday, June 14. In its eighth year, the Award is a voluntary reporting system that MEUW developed to recognize safety achievement and to encourage pro-active safety activities. This year, 63% of the MEUW membership (51 Members) participated by filing reports, an all time high.

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