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Renewables: Dairyland Power’s Experiences

Renewables: Dairyland Power’s Experiences. Rural Energy Conference March 11-12, 2010 Brian Rude Vice President, External and Member Relations Dairyland Power Cooperative. Dairyland Power Cooperative. A Generation and Transmission Cooperative Wholesale supply only

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Renewables: Dairyland Power’s Experiences

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  1. Renewables:Dairyland Power’s Experiences Rural Energy Conference March 11-12, 2010 Brian Rude Vice President, External and Member RelationsDairyland Power Cooperative

  2. Dairyland Power Cooperative • A Generation and Transmission Cooperative • Wholesale supply only • Headquartered in La Crosse, WI • 25 Member systems serving over 575,000 people • 1,100 megawatt capacity • Over 3,400 miles of transmission • Service territory includes: • 62 counties • Four states • Wisconsin, Minnesota, Iowa, Illinois

  3. The Dairyland Power System

  4. Dairyland’s Renewable Program • Our goal is a realistic and practical view toward renewables • Aggressively expanding in this area where it makes economic sense

  5. Evergreen Program • Offered on a voluntary basis • Customer pays $1.50 per 100 kWh per month

  6. Flambeau Hydro Facility • Ladysmith, WI • 23.5 MW • Online in 1950 • Current efforts to boost output through facility upgrades

  7. Wind Projects • Chandler, MN – 660 kW • McNeilus Wind – 17 MW • Adams, MN • Prairie Star Wind – 5 MW • Grand Meadows, MN • Winnebago Wind – 20 MW • Winnebago County, Iowa

  8. Landfill Gas Projects • Seven Mile Creek - Eau Claire, Wisconsin • 4 MW - DPC owned and operated • Timberline Trail - Bruce, Wisconsin • 5.6 MW - Power Purchase Agreement from Waste Management • Central Disposal - Lake Mills, Iowa • 4.8 MW – Power Purchase Agreement from Waste Management

  9. EPA Award On Landfill Project

  10. Manure Digesters • Five Star Dairy • 775 kW • Elk Mound, WI - Online 6/05 • Wild Rose Dairy • 775 kW • La Farge, WI - Online 7/05 • NorSwiss Dairy • 825 kW • Barron, WI - Online 3/06 • Norm-E-Lane • 600 kW • Chili, WI – Online 8/08 • Bach Farms • 600 kW • Dorchester, WI – Online 1/10

  11. DTE’s E.J. Stoneman Biomass Plant • Former Dairyland Power coal-fired plant • Dairyland will purchase energy output • 40 MW • Located in Cassville, WI • Due on-line in 2010

  12. Dairyland Small Renewable Program • DG Tariff 4 for generation under 40 kW • DG Tariff 5 for small renewable systems up to 2 MW

  13. DG Tariff 4 • Provides net metering for any energy delivered onto the grid—the owner of the system receives the retail rate • Federal law requires avoided cost which is much lower

  14. DG Tariff 5 • Offers a guaranteed rate for small renewable purchases • Fixed terms • Current wind rate is 6.5 cents • Other renewables current rate 10.5 cents on-peak, 5.4 cents off-peak

  15. Dairyland considers our small renewable program a success! 156 total installations! • 86 solar • 69 wind • 1 small hydro

  16. Why Renewables? • Reduce dependence on foreign energy sources • Promote development in ourservice area • State mandates

  17. Renewable Energy Portfolio Standards (RPS) 29 States, including D.C. have an RPS RPS Strengthened / amended RPS Voluntary standards or goals Proposed RPS or studying RPS Other renewable energy goal Updated February 6, 2009

  18. Why Renewables? • Costs of our projects comparable to new coal • Popular with our members • Likelihood of even tougher RPS at federal, state argues for getting the renewables we can now • Minimize cost and difficulty by trying to use experience from one project for the next • We use our renewable experiences to educate and inform our members

  19. We haven’t forgotten coal…

  20. Weston 4 Project withWisconsin Public Service Corporation • 30% DPC ownership • 531 MW coal-fired generator • Near Wausau, WI • Mid-2008 operation

  21. Challenges With Renewables • Cost • Financing • System reliability • Unreasonable expectations brought aboutby advocates and equipment sales people • RPS becomes a moving target(no good deed goes unpunished!) • New technologies bring new issues

  22. Summary DPC will aggressively workto build renewables into our system, keeping in mind reliabilityand affordability.

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