Posts Tagged ‘Fairfield Wind’

Choteau Acantha Article – Greenfield Wind Farm asks PSC for reconsideration « WINData LLC

Choteau Acantha Article – Wind Farm asks PSC for reconsideration

Posted on February 6, 2015 Updated on February 6, 2015

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February 4th 2015

A stalled project to put 15 industrial-sized wind turbines next to the six already up and running between Choteau and Fairfield will get reconsideration before the Montana Public Service Commission on Feb. 10.

Martin Wilde of Fairfield, working through the company, Greenfield Wind L.L.C., has been in a disagreement with NorthWestern Energy since April 2014 over what the utility will pay the wind developer for each megawatt-hour generated. The cost to integrate the intermittent energy into the region’s power grid is also unsettled.

In December, both parties agreed to a price to avoid further litigation, and filed a joint motion to approve a settlement agreement with the PSC, but the commissioners denied the settlement by a 3-2 vote.

Since that time, Brad Johnson replaced Bill Gallagher on the commission. Gallagher, Roger Koopman and Kirk Bushman voted against the settlement, while Travis Kavulla and Bob Lake voted for it.

Wilde called the denial “an 11th hour surprise reversal ruling” that “appeared to result from Gallagher placing his personal opinion and politics ahead of federal and state laws and ahead of the best interests of Montana rate payers.”

The PSC has invited the parties to present oral arguments for reconsideration at its Feb. 10 meeting in Helena.

At stake is whether Teton County will see a doubling of wind generation and an additional six-figure tax bill it will pay. Wilde’s Fairfield Wind six-turbine project that cost more than $25 million will start paying taxes next November.

Greenfield Wind attorney Ryan Shaffer of Missoula stated in his written motion to reconsider that the PSC’s decision was “unlawful, unjust and unreasonable” and constitutes an unlawful discrimination against “qualifying facilities,” namely, certain types of small power generation facilities, such as those from renewable-energy sources like the wind.

According to the Edison Electric Institute, the federal Public Utility Regulatory Policies Act of 1978 (PURPA) requires electric utilities to purchase energy offered by qualifying facilities. The goal is to support the development of small, onsite renewable generation and to promote diversity of a utility’s supply portfolio.

Montana has a renewable portfolio standard that requires public utilities to obtain a percentage of their retail electricity sales from eligible renewable resources. That percentage grew to 15 percent in 2015 after starting at 5 percent in 2008.

The PURPA also requires utilities to purchase electric energy from qualifying facilities at rates that are just and reasonable to consumers and that are equal to the utility’s avoided cost, defined as the incremental energy and capacity cost the utility would have incurred generating power from its own operating plant.

The state, through the PSC, governs the process to define those rates and has set a standard rate for certain qualifying facilities, but the Greenfield Wind project does not meet the criteria for that rate.

Wilde said that Greenfield has been seeking a long-term contract under PURPA with NorthWestern since 2010. But those efforts have been stymied, Wilde said, by the PSC’s rules prohibiting such long-term contracts for projects over a three-megawatt eligibility cap for the standard rate. Greenfield would generate 25 megawatts.

The rule used to be that the standard rate would apply to facilities generating 10 megawatts or less, and Wilde’s Fairfield Wind six-turbines qualified for the standard rate by generating 10 MW.

While the two parties were far apart at first in their proposed rates for the power, Shaffer said, “Greenfield recognized that with some concessions on Greenfield’s part, the gap between the rate proposed by NorthWestern and the rate proposed by Greenfield could be largely bridged.”

The negotiated rate is $50.49 per megawatt-hour if Greenfield pays NorthWestern for integration or $53.99 per MWh if Greenfield delivers a wind-integrated product. Another stipulation calls for Greenfield to delay the commercial online date until 2016.

Back in 2011, NorthWestern was paying a weighted average cost of $60.44 per MWh for qualifying facilities.

The PSC staff recommended that the commission approve the settlement but the commission voted otherwise.

Recent case law in the state determined that rates for purchases from qualifying facilities must be based on “current avoided least cost resource data,” Shaffer said. He argued that the market prices underlying the negotiated rate and the PSC staff’s benchmarking analysis come directly from NorthWestern’s 2013 least cost plan.

Shaffer alleges that the Federal Energy Regulatory Commission found that the PSC is failing to implement federal law for projects exactly like Greenfield. His argument is tied to the PSC’s recent approval of NorthWestern’s purchase of PPL’s hydroelectric dams. That process used the same market rates for evaluating whether the hydroelectric power system was a least-cost source. The commission voted for approval of the acquisition, Shaffer said.

He said the settlement rate “would save between $5.9 and $10.6 million over the life of the project compared to the two most reasonable alternative avoided-cost benchmarks.”

Wilde said, “Rejection of the unopposed settlement unreasonably deprives NorthWestern’s customers of the benefits of these favorable rates.”

He added that Greenfield’s rates would be significantly higher if Greenfield is forced to fully litigate its claim to a “legally enforceable obligation,” which is a “must-buy” provision of PURPA.

He explained that PSC’s own rules provide that a utility shall purchase available power from any qualifying facility at either the standard rate determined by the commission to be appropriate for the utility, or at a rate which is a negotiated term of the contract between the utility and the qualifying facility.

http://www.choteauacantha.com/

Feb 4 2015

via Choteau Acantha Article – Wind Farm asks PSC for reconsideration « WINData LLC.

Clearing Up – Greenfield Wind, NorthWestern Ask MPSC to Reconsider Contract

Greenfield Wind and NorthWestern Energy have asked the Montana PSC to reconsider its rejection of a power purchase agreement for the output from Greenfield’s 25-MW wind project, which is under construction near Fairfield, Mont.

By a 3-2 vote, the PSC in December refused to approve the contract, even though most parties in the case supported the deal and none opposed it [Docket No. D2014.4.43].

“This motion presents a critical question of whether the commission will approve a reasonable long-term avoided cost negotiated between a large QF and NorthWestern, or whether the commission will subject the parties, and quite possibly the commission itself, to further litigation,” Greenfield said in its Jan. 8 filing, which called the decision “unlawful, unjust and unreasonable.”

The decision was made during a Dec. 16 commission work session after considerable discussion of the perceived pros and cons of the 25-year deal, which included a net rate of about $50.49/MWh if the developer paid NorthWestern for wind integration, or $53.99/MWh if Greenfield delivered a wind-integrated product.

During settlement discussions with NorthWestern, Greenfield agreed to delay the commercial on-line date for the full contract rate until 2016, in light of the utility’s near-term long position It would receive $19.99/MWh, minus integration costs, for any generation delivered in 2015; its currently scheduled on-line date is Oct. 15, 2015.

NorthWestern initially asked the commission in April 2014 to set terms and conditions of the PPA because it was not selected through an all-source solicitation, as required under a commission rule that FERC previously determined was inconsistent with PURPA regulations (CU No. 1639 [13]).

“NorthWestern is in the untenable position of being constrained by an administrative rule that FERC has found to be inconsistent with federal law,” the utility said.

The rates and terms in the stipulation “are consistent with, and likely significantly below, any reasonable current estimate of NorthWestern’s actual avoided costs,” Greenfield said in its Jan. 8 petition.

MPSC staff’s projections indicated the settlement rate would save NorthWestern’s customers between $5.9 million and $10.6 million over the life of the project, compared to the two most reasonable alternative avoided-cost benchmarks, Greenfield also said in its filing—and pointed out that the rates were lower than all five of the benchmark rates staff used in its evaluation.

In fact, the market prices underlying the negotiated rate and staff’s benchmarking analysis came from NorthWestern’s 2013 least-cost plan, and are the same prices used to evaluate whether the utility’s recent acquisition of PPL Montana’s hydro resources was a least-cost resource, Greenfield said.

Commissioner Travis Kavulla, who voted to approve the stipulation, said during the Dec. 16 work session that commission staff used more analysis in reviewing the Greenfield deal than NorthWestern did to assess the value of its $870-million purchase of PPL Montana’s hydro portfolio (CU No. 1662 [13]), under which power is priced at about $57/MWh.

That acquisition was also approved outside of an all-source solicitation, Greenfield’s filing noted.

Rejection of the negotiated rate will “launch the parties and the commission back into unnecessary and costly litigation,” Greenfield said, and could result in rates that are significantly higher than those included in the stipulation.

Greenfield also said the apparent rationale for rejection of the unopposed stipulation “rests upon unlawful discrimination against QF projects, which combined with other recent events would constitute an actionable violation of federal and state law if allowed to stand.”

The notice of commission action denying the settlement did not articulate the commission’s reasons for denial, NorthWestern pointed out in its filing in support of Greenfield’s petition. Besides reconsideration, NorthWestern asked the commission to provide the rationale for its decision.

Chair Bill Gallagher led the opposition to the settlement during the commission’s work session.

“I am dissatisfied that this stipulation is fair and reasonable,” Gallagher said during the meeting. “I like stipulations to come after hearings.”

Gallagher added that the record was insufficient and went on to criticize FERC’s PURPA regulations, likening them to a program that would provide unskilled people with incentives to become housepainters and then require homeowners to purchase their services over those of more qualified painters.

Gallagher also warned that if the PSC approved the settlement, there would be a line of developers down the hall applying for QF status. “What are you going to do with the ones that follow? NorthWestern would end up selling this unneeded power at a loss,” he said, adding that “these new QFs will come in and offset our native power.”

Gallagher has since retired from the commission and was replaced in January by Brad Johnson, who was elected in November 2014.

Greenfield is hoping the change in chair may result in a different outcome.

“Any commissioner that is going to obey federal and state law and be responsive to recent FERC and state court rulings and has the interest of Montana ratepayers will vote in favor of this—there is no other vote,” Greenfield spokesman Marty Wilde told Clearing Up.

“This is a clear case of where federal and state law—and the Montana commission’s own rulings—dictate what the decision needs to be.”

Then there’s the economics, Wilde said—the commission approved the PPL Hydro purchase at about
$58/MWh, and “we’re looking at $50.49/MWh.

“We’re pretty hopeful that once they reconsider, maybe with the fresh eyes of Brad Johnson, they’ll be clear on what the right decision is.”

Montana PSC attorney Jason Brown said staff will likely waive the requirement for action on the motion within 10 days of filing—otherwise the petition would be automatically deemed denied—so the commission can take it up later this month.

If the commission rejects the petition and settlement, there’s a good chance the case will be continued and heard on its merits, Brown said.

The PSC could also agree to reconsideration and then issue an order approving the settlement [Jude Noland].

Copyright © 2015, Energy NewsData Corporation
Clearing Up • January 16, 2015 • No. 1680 • Page 11

Clearing Up.

More Wind Turbines Potentially Coming to Fairfield – KFBB.com News, Sports and Weather

More Wind Turbines Potentially Coming to Fairfield

Posted: Jan 10, 2015 5:11 PM MST Updated: Jan 10, 2015 7:41 PM MST

On a farm in Fairfield 6 wind turbines already generate 10 megawatts, which supplies about 2,000 average residential houses annually, but developers are trying to build more of them.

“It will be 15 more turbines just like these, maybe slightly bigger,” said Marty Wilde Principal Engineer at Wind Data.

Wilde said they will add 25 megawatts of renewable energy into the Northwest Energy grid. Wind turbines currently cost about 2 million dollars a megawatt, but Wilde said there are advantages.

“The main advantage is the carbon free generation and how it addressees some of the green house gases and the climate change issues,” said Marty Wilde Principal Engineer at Wind Data.

Wind turbines in other states have killed endangered birds, but that has not been the case in Fairfield.

“Out here we haven’t had any impact and we have ongoing post construction studies,” said Marty Wilde Principal Engineer at Wind Data.

Wilde said building more turbines will bring construction jobs, more local tax dollars to the county, and money to farmers who provide the land.

“There is really no investment on our part other than having to farm around them and it creates income so for sure it helps, and that income helps the community,” said Reece Brown with K Farms

The next set of 15 wind turbines for the “Greenfield Wind Project” would be built this year and is expected to be done by this coming fall, but none of them will be built unless the Montana Public Service Commission approves it first.

“There have been a lot of challenges one again, that’s why we are so excited to be in front of the PSC like we are now looking for this approval for this next wind farm here,” said Marty Wilde Principal Engineer at Wind Data.

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PSC asked to reconsider Fairfield wind farm

The developer of a proposed wind farm near Fairfield asked the Montana Public Service Commission on Thursday to reconsider its prior denial of a power purchase settlement with NorthWestern Energy, which has blocked the project.

Greenfield Wind LLC of Fairfield hopes to construct the wind farm by this fall, said Martin Wilde. Greenfield is a partnership between Wilde, the CEO of Fairfield-based WINData, LLC and Foundation Wind Power in San Francisco.

The wind farm’s 15 General Electric turbines would produce 25 megawatts of electrical generation capacity. That’s enough to power 5,000 to 7,000 homes annually. The turbines would be 262 feet tall, which is 26 stories, with 328-foot-long rotor blades, a bit more than a football field. That would make them the largest turbines in Montana, Wilde said.

The Greenfield wind farm is planned eight miles northeast of Fairfield, just east of the 10-megwatt, six-turbine Fairfield wind project. That project became operational May 17. WINData and Foundation Wind Power also partnered on that project, and NorthWestern is purchasing that power.

Greenfield will be located on dry, non-irrigated land leased from four landowners.

PSC members voted 3-2 Dec. 16 to reject the settlement agreement on the power purchase price between NorthWestern and Greenfield.

Wilde said the decision came as a surprise, and Greenfield on Thursday filed a motion asking the PSC to reconsider. NorthWestern also filed a motion asking the PSC to clarify why it denied the power purchase agreement.

“It gives Greenfield the opportunity to basically take a bite at the apple with a different proposal,” said Brad Johnson, the chairman of the PSC.

Johnson was not on the commission during the first vote.

Wilde is hoping for a different result the second time around.

The 25-year purchase agreement calls for NorthWestern purchasing the power for $53.99 per megawatt hour, Wilde said. Greenfield would pay $3.50 for wind integration services, making NorthWestern’s net purchase price $50.49 per megawatt hour. Wind integration is necessary for grid reliability.

NorthWestern used a price of $58.32 per megawatt hour as a benchmark when it asked for approval from the PSC to purchase hydroelectrical facilities from PPL Montana, Wilde said.

“We’re coming in cheaper than the benchmarks, and that discount flows to NorthWestern’s ratepayers,” he said.

Along with the clean power, construction of the wind farm will produce local jobs for engineers, electricians, cement companies and surveyors and taxes for Teton County, he said.

It would be built by Dick Anderson Construction out of Great Falls, which also built the first wind farm.

As a rule of thumb, it costs $2 million a megawatt to build a wind farm, Wilde said.

John Hines, NorthWestern’s vice president of supply, said Greenfield came to NorthWestern energy with the project.

“We believe our portfolio is getting fairly full for this type of energy — intermittent wind energy,” he said.

The company already is purchasing about 250 megawatts of wind power, or about 14 percent of its total energy requirements, Hines said

However, the utility is obligated to enter contracts with “qualifying facilities” such as Greenfield as a result of a President Jimmy Carter-era federal law designed to diversify the energy portfolio of utilities and stimulate production of alternative energy, he said.

The settlement agreement before the PSC, he said, is “a good faith effort on our part.”

“We can’t go forward without regulatory approval,” Hines said.

The cost of the wind power is higher than market alternatives, he said. The impact of the purchase from Greenfield on ratepayers hasn’t been calculated, but would be very small, he said.

Reach Tribune Staff Writer Karl Puckett at 406-791-1471 or kpuckett@greatfallstribune

.com. Twitter: @GFTrib_KPuckett.

via PSC asked to reconsider Fairfield wind farm.

MISSOULIAN EDITORIAL: PSC should approve wind power deal

December 28, 2014 7:00 am

Even as one of the biggest wind energy projects in Montana broke ground near Bridger this month, the state’s Public Service Commission was deciding to deny a contract between NorthWestern Energy and the developers of a new wind power project. That decision, if allowed to stand, bodes ill for new wind development in Montana in the immediate future.

Greenfield Wind is proposing a 25-megawatt wind-power project near Fairfield. The agreement between NorthWestern and Greenfield would allow the energy company to buy power from the wind farm for $54 per megawatt-hour for the next 25 years. That, as reports have pointed out, is less than the cost of power from the 11 hydroelectric dams NorthWestern bought earlier this year.

The PSC approved that purchase, which will provide power at a rate of about $57 to $58 per mWh — even though the deal could cost ratepayers as much as $800 million in excess costs, according to one expert analysis, and will mean a direct rate increase for NorthWestern’s electric customers of more than 5 percent.

With that recent history, it was perplexing to see the PSC get hung up on the wind power agreement on a 3-2 vote. Apparently, the three commissioners who voted against the deal have concerns that NorthWestern was putting itself on the hook to purchase energy it may not need.

NorthWestern, not surprisingly, disagrees with the commissioners’ conclusion. What is somewhat surprising is that the PSC’s own staff, after reviewing the agreement, noted that adding the wind energy from this contract to NorthWestern’s portfolio would actually result in lower costs for consumers.

It’s also worth mentioning that even as the PSC was deciding against this deal, wind power developers across the nation were seizing an opportunity afforded by Congress in the final days of the session through a wind production tax credit. The credit applies only to new projects started this year, and with only a few days left in the year, developers are hurrying to get their shovels in the ground.

The developers of the 120-turbine Mud Springs Wind Ranch in Carbon County were among them. Thanks to the tax credit, the $550 million project stands to recoup 2.3 cents for every kilowatt hour of power it produces.

Meanwhile, U.S. Sen Jon Tester, D-Mont., was among those calling for a long-term extension of wind production tax credits starting in the new year. He seems to understand that such incentives help encourage new wind power development, and that Montana, as one of the places in the nation with the most wind potential, is in a prime position to gain from increased wind development.

This kind of activity at the state and federal level helps point which way the wind is blowing. But even setting all that aside, PSC Commissioners Bob Lake, who represents the region that includes Missoula, and Travis Kavulla found nothing in the duly negotiated contract between NorthWestern and Greenfield worth killing the deal; rather, they found that the mutually beneficial settlement to be in the best interests of NorthWestern’s 340,000 ratepayers in Montana.

Greenfield officials have said they plan to ask the PSC to reconsider its decision. This time, the three commissioners who voted to deny the deal — Roger Koopman, Kirk Bushman and commission chair Bill Gallagher — ought to pay closer attention to the information provided by their own staff and the arguments of their colleagues on the commission.

via MISSOULIAN EDITORIAL: PSC should approve wind power deal.

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