A new piece of legislation, authored by Rep. Tom Sloan, R-Lawrence, has the McPherson Board of Public Utilities and other Kansas utilities coordinating a rebuttal. Sloan's legislation would require utilities to incorporate sources of renewable energy into its energy generation and transmission.
House Bill 2038 is still in committee and has not reached the house floor for debate, but BPU general manager Rick Anderson is already gearing up to fight the bill.
"I don't think this will happen," Anderson said, referring to the passage of Sloan's bill. "But we are prepared to fight diligently to kill it."
If passed, H.B. 2038 would require utilities that generate at least 50 megawatts of electricity to purchase or generate 15 percent of its peak-load from renewable energy sources by July 1, 2015. By July 2018, that percentage would increase to 18 percent and would be required to further increase the percentage of renewable energy to 20 percent of its peak load.
Anderson said the state's geography would limit BPU's options for renewable power generation. Wind would be BPU's only viable option with solar being a second, more expensive option.
The price for BPU to implement wind generation would be near $40 million, Anderson said.
Language in the bill would allow utilities to purchase renewable energy which, Anderson said, could be less expensive.
And costs incurred by BPU for the generation or purchase of renewable energy would be felt by energy consumers at all levels.
Anderson said residential electricity rates, which currently sit at $0.05 per kilowatt hour, would increase by 30 percent to 50 percent.
Industrial customers would also see an increase in rates, which would make BPU and the city less competitive on a national level.
Legislators at the federal level have also proposed requiring using renewable energy, but Anderson said he is concentrating on state legislation.
"Right now we're more worried about legislation at the state level," Anderson said. "Federal issues are beyond what McPherson has the capabilities to address. We don't have federal lobbyist. We do have a national organization that will lobby on our behalf."
Anderson said he has spoken with area state representatives about the issue.
Rep. Clark Shutlz, R-Lindsborg, said setting deadlines for renewable energy usage may not solve the state's energy situation.
"Setting artificial deadlines for renewable energy might sound great but I'm not sure they really help," Shultz said. "I do think that the state has a role in encouraging the development and use of renewable energy, but we can't solve our energy problems by simply forcing utility companies to include renewable energy in their portfolio. As it begins to make more economic sense, renewable energy will play a larger role in our energy needs."
Anderson said BPU is not making any moves at this point, but will continue to track the progress of the legislation.
"If the bill starts to gain momentum we will mobilize," Anderson said. "I don't want to fire volleys if it's not going to be an issue."
|
|
|
A new piece of legislation, authored by Rep. Tom Sloan, R-Lawrence, has the McPherson Board of Public Utilities and other Kansas utilities coordinating a rebuttal. Sloan's legislation would require utilities to incorporate sources of renewable energy into its energy generation and transmission.
House Bill 2038 is still in committee and has not reached the house floor for debate, but BPU general manager Rick Anderson is already gearing up to fight the bill.
"I don't think this will happen," Anderson said, referring to the passage of Sloan's bill. "But we are prepared to fight diligently to kill it."
If passed, H.B. 2038 would require utilities that generate at least 50 megawatts of electricity to purchase or generate 15 percent of its peak-load from renewable energy sources by July 1, 2015. By July 2018, that percentage would increase to 18 percent and would be required to further increase the percentage of renewable energy to 20 percent of its peak load.
Anderson said the state's geography would limit BPU's options for renewable power generation. Wind would be BPU's only viable option with solar being a second, more expensive option.
The price for BPU to implement wind generation would be near $40 million, Anderson said.
Language in the bill would allow utilities to purchase renewable energy which, Anderson said, could be less expensive.
And costs incurred by BPU for the generation or purchase of renewable energy would be felt by energy consumers at all levels.
Anderson said residential electricity rates, which currently sit at $0.05 per kilowatt hour, would increase by 30 percent to 50 percent.
Industrial customers would also see an increase in rates, which would make BPU and the city less competitive on a national level.
Legislators at the federal level have also proposed requiring using renewable energy, but Anderson said he is concentrating on state legislation.
"Right now we're more worried about legislation at the state level," Anderson said. "Federal issues are beyond what McPherson has the capabilities to address. We don't have federal lobbyist. We do have a national organization that will lobby on our behalf."
Anderson said he has spoken with area state representatives about the issue.
Rep. Clark Shutlz, R-Lindsborg, said setting deadlines for renewable energy usage may not solve the state's energy situation.
"Setting artificial deadlines for renewable energy might sound great but I'm not sure they really help," Shultz said. "I do think that the state has a role in encouraging the development and use of renewable energy, but we can't solve our energy problems by simply forcing utility companies to include renewable energy in their portfolio. As it begins to make more economic sense, renewable energy will play a larger role in our energy needs."
Anderson said BPU is not making any moves at this point, but will continue to track the progress of the legislation.
"If the bill starts to gain momentum we will mobilize," Anderson said. "I don't want to fire volleys if it's not going to be an issue."
