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C-BED approval advances wind energy

Published (2/27/2009)
By Sue Hegarty
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Legislation to increase community-based renewable energy projects around the state was approved by the House Energy Finance and Policy Division.

Large utility companies opposed the measure, while a four-star general and renewable energy companies supported the legislation during lengthy testimony Feb. 18 and 23.

Sponsored by Rep. Andrew Falk (DFL-Murdock), HF357 would require utilities to purchase electricity generated from Community-Based Energy Development operations that produce five megawatts or less, until there are at least 200 megawatts of such projects in operation or contracted for in Minnesota. Falk said property owners have the right to be an owner of projects on their land, and that this legislation keeps jobs and revenues in the local community.

Retired U.S. Gen. Wesley Clark, a member of the Juhl Wind Inc. board of directors, testified on behalf of the bill Feb. 18.

“In Minnesota and the Upper Midwest, we’ve got plenty of wind. We can become totally self-sufficient in energy, if we do this the right way,” Clark said, noting that self-reliance is a matter of national security.

But utility companies disputed that this legislation is the “right way.” The bill proposes standard contracts and a controversial tariff formula for C-BED-generated electricity. In addition, the popularity of wind energy has caused a backlog and shortage in construction materials, utility spokespeople said.

Geronimo Wind Energy president Blake Nixon said he is frustrated by the lack of support for C-BED facilities. “We believe a mandate is necessary,” said Nixon, whose company has two C-BED units in operation and more in the works.

But several of Xcel Energy’s C-BED-financed projects have defaulted due to an inability to purchase wind turbines and because of delays trying to connect with the Midwest Independent System Operator grid, said Betsy Engelking, director of resource planning and acquisition for Xcel Energy.

Office of Energy Security Director Bill Glahn said there have been difficulties with C-BED projects in the past, “but we seem to be making progress at a pretty good clip now.”

Rep. Tom Hackbarth (R-Cedar) opposed the bill because he said ratepayers would be charged more for electricity than current standards.

On a roll call, division members voted 10-5 in favor and to advance the bill to the House Commerce and Labor Committee. A companion, SF399, sponsored by Sen. Gary Kubly (DFL-Granite Falls), awaits action by the Senate Energy, Utilities, Technology and Communications Committee.

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