Put energy into smart legislation

http://www.indystar.com/article/20100104/OPINION08/1040309/1291/OPINION08/Put-energy-into-smart-legislation

January 4, 2010


Our Opinion

The waning days of 2009 are not likely to be remembered for good financial news when it comes to Indiana's public school districts. A state mandate to make nearly $300 million in spending cuts makes for indelible headlines.

There may be hope for making up some of that loss, however, thanks to statements by key members of the Indiana General Assembly regarding an obscure phenomenon known as net metering.

Schools will not be the only beneficiaries if legislation talked up a few days ago by state Sen. James Merritt and Rep. Ryan Dvorak sees the light of day.

Exploited in neighboring states far more than here, net metering allows utilities customers who generate some of their own power through wind, sun or other means to send the excess back to the grid and get charged only for what they use.

The potential savings are immense, as are the benefits in reduced reliance on high-polluting coal and promotion of an already burgeoning renewable energy industry.

Right now, Indiana allows only homeowners and schools to use net metering, and limits them to a nominal take of 10 kilowatts.

Dvorak, D-South Bend, wants to boost that figure to 1,000 kilowatts. Merritt, R-Indianapolis, is not inclined to go nearly that high; but he does want to extend net metering to businesses and municipalities.

In the 2009 session, both men got their bills passed; but differences over the numbers proved irreconcilable in conference committee. Net metering became one of several sensible energy bills for which lofty hopes died.

Now, compromise is in the air. The utilities, obstinate opponents in the past, have seen that federal taxes on coal are imminent and have endorsed modest net metering. Proponents may well have to settle for a 100-kilowatt limit to get a law onto the books; but as a tenfold increase over the status quo, that is a most encouraging starting point. Building upon it in the future should come easily as its payoff asserts itself.

Like renewable energy itself, net metering offers a win-win to producers and consumers by converting waste into value, with cleaner air and tax relief as part of the bargain.

Again, surrounding states have gotten the message and are running with it. If, as Gov. Mitch Daniels is fond of saying, we are the smart ones when it comes to fighting through hard economic times, this is an easy opportunity for lawmakers to prove it.

This article brought to you by the Indiana Renewable Energy Association.

Indiana Lawmakers Hopeful About Renewable Energy Bill

Lawmakers hopeful Indiana Legislature can
pass bill to boost renewable energy adoption

By RICK CALLAHAN, The Associated Press
INDIANAPOLIS December 28, 2009 (AP)

Legislation that could bring more wind turbines and solar power projects to Indiana has a good chance of passing in the upcoming legislative session after failing in the last session's closing hours, two state lawmakers say.

While the General Assembly seems unlikely to require Indiana utilities to generate a specific amount of electricity from renewable energy sources, it may expand the state's so-called net-metering policy.

That rule allows some customers of investor-owned utilities to send excess electricity produced by wind turbines, solar panels and other renewable sources back into the electric grid and to be charged only for the net amount of power they actually use.

Because those customers get credit on future bills for excess power they produce, it can help offset the cost of installing renewable energy systems and make doing so more attractive.

State Sen. James Merritt, R-Indianapolis, said last week he's optimistic lawmakers will increase the amount of power that can be sent back into the grid and extend that option to businesses, industries and municipalities.

The state's current net-metering policy applies only to homeowners and schools and sets a limit of 10 kilowatts per customer.

Indiana lags well behind neighboring states in its net-metering policy, according to "Freeing the Grid," a report released in November by the renewable energy advocacy group Network for New Energy Choices.

Illinois, Michigan, Ohio and Kentucky received grades of "B" in that report, but Indiana got an "F."

"They've been making changes and they've improved, but we've remained the same," said Laura Arnold, president of the Indiana Renewable Energy Association's board of the directors.

An expansion of Indiana's metering rules would make investing in wind turbines, solar panels, hydroelectric systems or biomass energy generators more attractive, she said.

Merritt, who chairs the Senate Utilities and Technology Committee, said net metering should be his panel's main issue during the legislative session that starts Jan. 5.

The sticking point in negotiations is expected to be what power limit to set under a revised policy.

That issue scuttled an agreement last session, when Merritt sponsored a bill that would have boosted the net-metering limit to 100 kilowatts and expanded the policy to include businesses and municipalities.

State Rep. Ryan Dvorak, D-South Bend, sponsored a House bill that would have raised the limit to 1,000 kilowatts — about the amount produced by a large wind turbine.

Although those bills passed both chambers, the legislation died in conference committee.

"It really just came down to the numbers," Dvorak said last week. "The Senate didn't want to budge up from 100 kilowatt and we hit an impasse."

He hasn't decided what power level he will propose this season, but Dvorak said he's optimistic about passage because power utilities that once fought net-metering now seem willing to accept its expansion and at least a 100-kilowatt cutoff.

"We're a lot closer and that's why I'm hopeful this year we're going to get an actual meaningful bill through that's comparable to the rest of the country," Dvorak said.

The Indianapolis-based Hoosier Environmental Council favors boosting the state's net-metering limit to 1,000 kilowatts, a level that Jesse Kharbanda, the group's executive director, said would help bring new jobs and development to the state.

A 1,000 kilowatt level also would help the state respond to federal climate change legislation expected to lead to higher energy costs in states like Indiana that get most of their power from coal-fired power plants, he said.

"Net metering helps lay the foundation for a different energy economy for Indiana," Kharbanda said. "It helps Indiana better prepare for climate legislation and can provide new income for struggling corporations."

While moving it the policy's power limit to 100 kilowatts might help individual homeowners and small retail stores install small-scale wind or solar power systems, he said that's well below the level needed to help industries and large businesses with far larger energy demands.

Click here to request updates on proposed net metering legislation in Indiana.

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Copyright © 2009 ABC News Internet Ventures

http://abcnews.go.com/Business/wireStory?id=9433459

Also appeared in Forbes http://www.forbes.com/feeds/ap/2009/12/28/business-financial-impact-us-renewable-energy-indiana_7240335.html

Attend Green Energy Town Hall Meeting Thursday, January 7th

Faith-based Town Hall Meeting Jan. 7th to Explore Indiana Energy Future

State Senators Jim Merritt (left) and Jean Breaux (right) to Discuss Indiana's Energy Issues

INDIANAPOLIS - Energy experts and Indiana Senate leaders on utility issues will explore Indiana's energy future at a town hall-style meeting on

Thursday, Jan. 7, 2010
6:00 to 9:00 pm
Epworth United Methodist Church
6450 Allisonville Road
Indianapolis, IN 46220-4548
Click here for map.

The Indiana Renewable Energy Association (InREA) is one of the group's sponsoring the meeting. Eric Cotton with ECI Wind and Solar and VP of the InREA Board of Directors will discuss the need for changes in net metering regulations in Indiana.

All are invited to attend Green Energy-Green Jobs: A Legislative Town Hall Meeting and Information Fair at 6450 Allisonville Road from 6-9 p.m. In particular, people of faith are invited to learn about energy issues in Indiana and how to get involved in shaping our energy future.

The town hall meeting will be held from 7:30 to 9:00 and will feature a panel of experts talking about Indiana's current energy environment, followed by a town hall discussion with Sen. James Merritt, R-Indianapolis, and Sen. Jean Breaux, D-Indianapolis. The discussion will be moderated by Jon Schwantes of WFYI's Indiana Lawmakers.

Senator Merritt chairs the Indiana Senate's Utilities and Technology Committee and Senator Breaux is its ranking minority member. In 2009, close to 50 bills and resolutions were introduced in the Indiana General Assembly related to energy, utilities, coal, renewable energy, net metering and other energy-related issues. This public forum will provide a preview of energy issues in the 2010 General Assembly and how citizens can get involved in the debate.

Audience members are encouraged to submit questions in advance for Senators Merritt and Breaux to Epworthgreenteam@gmail.com .

The event also will include an information fair from 6 to 7:30 p.m., featuring exhibits on renewable energy, faith-based environmental stewardship and how to get involved in legislative issues. Light refreshments will also be available.

The event is co-sponsored by Epworth United Methodist Green Team, Indianapolis Green Congregations, Hoosier Environmental Council, Indiana Renewable Energy Association and the Indianapolis Business Alliance for Local Living Economies.

If you have questions about this event, call 251-1481 or email Epworthgreenteam@gmail.com .

Jolted into efficiency: We all must do our part

December 22,2009

Our View


By Bev Gard & James Merritt

Whether you believe in the need to reduce greenhouse gases or not, one painful truth is inescapable: Virtually every recent proposal to reform our nation's energy policy will mean sharply higher electric rates for Indiana.

That's the bad news.

The good news is that Indiana's major electric utilities have been ordered to reduce electricity consumption by 2 percent through energy efficiency programs. We believe these are among the most effective and cost-efficient ways to deal with our energy problems.

Energy efficiency isn't a silver bullet. But a coordinated, statewide energy efficiency effort is a significant and realistic step in the right direction and we applaud the Daniels administration for taking it. To be successful, however, everyone must take part.

How will we use less energy? Largely through "demand-side management,'' which is utility industry shorthand for programs that encourage everyone to use less electricity.

You may already be familiar with some programs, such as those that offer incentives to use energy-saving light bulbs and Energy Star appliances. These programs are effective, but they aren't enough. To meet the administration's 10-year goal, we'll likely have to address the "price signals" of electricity and consumers' ability to manage energy costs.

What if utilities offered time-of-day pricing through the use of a "smart meter" able to monitor and control the usage of individual appliances in your home and relay real-time price information? We consumers would quickly discover that using electricity at times of peak demand is an expensive proposition. We'd also discover that the old refrigerator in the garage is a costly energy hog, and that big screen plasma TV in the living room is no bargain to operate either. We might be motivated to change our consuming habits.

When we use less, utilities have to produce less, which means lower electric bills and fewer air emissions.

Energy efficiency involves up-front costs to produce long-term savings. Installing millions of smart meters in Indiana would be expensive, and while they would likely save consumers money in the long-run, utilities would have to recover the installation costs up front in the form of higher rates.

Second, everyone must change habits, especially electric utilities. For decades, utilities have operated under a business model that rewarded them for selling more power. We'll now want to reward them for encouraging lower usage. And, if we change the way we regulate them, we must ensure that we don't encourage utilities to reduce consumption at the expense of economic development.

Consumers will have to change our ways, too. The more we're willing to reduce consumption, the better we'll be able to manage our monthly bill. That may be especially true for businesses such as manufacturers that may find enormous energy savings by operating late at night, when electricity is generally cheap.

According to the Rand Corporation, the utility industry nationally could save between $50 billion and $100 billion over the next two decades if demand response programs become the norm. That not only translates into better prices for consumers, but it also would diminish stresses on power plants, along with the subsequent emissions.

A concerted effort to increase the state's level of energy efficiency may take some getting used to, but we believe the effort is well worth it.


Gard, R-Greenfield, is chairman of the Indiana Senate Energy and Environmental Affairs Committee. Merritt, R-Indianapolis, is chairman of the Utilities and Technology Committee.

This article reprinted from http://www.indystar.com/article/20091222/OPINION01/912220312/1002/OPINION/Jolted-into-efficiency-We-all-must-do-our-part

and brought to you by the Indiana Renewable Energy Association.

Editor's note: Here are the ordering paragraphs from the Commission Order:

IT IS THEREFORE ORDERED BY THE INDIANA UTILITY REGULATORY
COMMISSION that:

1. The Commission hereby establishes an overall annual energy savings goal of 2% to be achieved by jurisdictional electric utilities in the State of Indiana within 10 years, with interim savings goals established in this Order to be achieved in years one through nine.

2. The Commission hereby establishes initial DSM Core Programs that shall be offered by jurisdictional electric utilities throughout the State of Indiana. The Core Programs shall be overseen and coordinated by an Independent Third Party Administrator in a manner consistent with the findings set forth in this Order.

3. The Commission hereby requires the formation of a DSM Coordination Committee comprised of the entities described in this Order. An initial objective of the DSM Coordination Committee shall be the issuance of two requests for proposals ("RFPs"). The first RFP shall be issued for the selection of an Independent Third Party Administrator to oversee and coordinate the Core Programs established in this Order. The second RFP shall be issued for the selection and utilization of an evaluation administrator(s) to undertake Evaluation, Measurement & Verification of DSM program offerings.

4. The Commission hereby finds that in order to ensure that the objectives of this Order are being fully satisfied, compliance filings shall be submitted as ordered in this proceeding to provide a means for Commission review of the following matters: (i) the proposed organizational and operational structure of the DSM Coordination Committee; (ii) the three-year DSM Plans and the annual supplemental updates; (iii) the proposed RFPs required by this Order; and, (iv) any additional compliance filings required under this Order. For this purpose, the Commission hereby establishes an Implementation Subdocket in this proceeding under Cause No. 42693 S-1.

5. The Commission finds that with respect to issues other than compliance with the terms of this Order, that will be overseen by the Commission in the Implementation Subdocket, this proceeding is hereby concluded.

6. This Order shall be effective on and after the date of its approval.

ATTERHOLT, GOLC, LANDIS AND ZIEGNER CONCUR; HARDY ABSENT:
APPROVED: DEC 0 9 2009

Click here to request a copy of the order.