Archive for October, 2007
By Michael D. Sorkin
ST. LOUIS POST-DISPATCH
Utilities regulator Lin Appling told a court Thursday that while he had done nothing wrong, he was withdrawing from a major rate case in which he is accused of misconduct.
For the full story from Michael D. Sorkin at the St. Louis Post-Dispatch, click here.
Adolphus Busch IV is the proud owner of five new massive solar panels, angled toward the sun atop steel structures resembling white football goal posts. The $100,000 system makes Busch owner of the region’s largest personal solar power plant, according to energy officials. Busch, along with several proponents of renewable energy, held a news conference to celebrate solar power and its potential to become a part of the everyday lives of farmers and homeowners.
The event was intended to stress that renewable energy like solar power isn’t just for the rich or hard-core environmentalists who choose to live entirely “off the grid” of traditional electrical power. New legislation sponsored by Bray and pushed by Farmergy officials has made it easier for property owners — particularly farmers — to tie a personal renewable energy system such as solar or wind generators into the existing electrical grid, ensuring they have a steady supply of electricity when the weather goes gray.
The “easy connect” act, passed in late spring, allows owners of solar systems to get a one-to-one credit for any additional power they generate that goes back into the power grid for other users. Previously, those owners were only getting the wholesale value of their surplus electricity — about half of its value — which made it financially unreasonable for frugal farmers, said Henry Rentz, a vice president at Farmergy who helped draft the new rules.
Bray said “easy connect” along with her wish for greater incentives will make solar power and other sources of renewable energy more attractive to property owners. Please click here to read the full story by Nancy Cambria of the St. Louis Post-Dispatch.
By John Coffman
The Metropolitan Sewer District of St. Louis (MSD) is considering a dramatic wastewater rate increase–64.4% over four years for the average residential consumer. Unfortunately, the public has not been well informed about the size and extent of the proposed increase. What is worse is the fact that the same sewer improvement projects could be funded with a rate increase less than half this size–a 25.6% increase over the same period, provided MSD trusted the voters to approve public debt financing.
Unfortunately, even the local press is missing the main issue. No one is seriously debating the need for MSD’s proposed construction plan or its proposed operations and maintenance for the next few years. Sewer upgrades are desperately needed to comply with Environmental Protection Agency (EPA)standards.
The real issue boils down to how these projects should be financed. MSD has inexplicably shifted its position and is now proposing that its projects be totally funded by “Pay-Go”, instead of asking the voters to approve the issuance of bonds for 50% of the financing. The rate differential between these financing approaches is HUGE–an increase of $14.41/month, as opposed to $5.74/month.
So what is the reason that MSD is not interested in asking the voters to approve public debt financing? It is the industry standard for any sewer utility of this size. A financing mix that includes public debt would allow all of the current improvements to be made, while equitably spreading the cost out over the life of the improvments. Its debt coverage is more than sufficient to handle it.
Its staff used to support the idea. The EPA itself recommends some public debt financing for the proposed projects. Groups, representing consumers both large and small, have been urging a reconsideration of the current financing proposal. Several large industrial customers have been advocating that MSD use some form of public debt financing for months. AARP and other organizations agree and have now joined the debate in earnest. Why doesn’t MSD seem to be listening?
The only objection seems to be political in nature. But why wouldn’t the public approve bond financing, provided they were told how much it could save everyone in their sewer bill? And won’t it be harder to secure public support after ratepayers have been hit with an unexpected 64% increase that really only needed to be half that large?
It seems that the only solution at this stage is a political response. Concerned citizens may contact MSD’s Board of Trustees, as well as Mayor Slay and St. Louis County Executive Dooley. The MSD Board will vote on the current proposal at its Thursday November 8 meeting at 5:00pm.
The October 3rd issue of the Post Dispatch had an interesting article about the tree-trimming guidelines that were approved yesterday.
The article, authored by Jeffrey Tomich follows:
Missouri utility regulators approved tree-trimming guidelines for electric utilities Tuesday, ending debate over how often utilities must prune branches and limbs growing near power lines and how much they must cut.
The rules are an outgrowth of widespread storm-related power outages in AmerenUE’s service area last year and establish guidelines for how much to trim around power lines according to voltage. They require companies to notify customers before trimming trees on private property, and utilities must seek permission from customers to cut down problem trees outside
the right of way.
Utilities also are required to trim power lines in cities every four years and every six years in rural areas, do visual inspections and make periodic reports to the Public Service Commission.
“I think (the new rules) are going to improve reliability,” said JeffDavis, PSC chairman. But “it’s going to take some time to get them phased in.”
Commissioner Robert Clayton III voted against the rules. He and former Commissioner Steve Gaw had sought to adopt tougher statewide tree-trimming guidelines, but their proposals were pruned after utilities balked.
Ameren and other investor-owned utilities in Missouri warned that the rules, as proposed, would have cost more than $300 million to implement, and those costs could be passed on to customers in higher rates.
“These rules are a mixed bag,” Clayton said Tuesday. “I think the public expected us to take stronger action on reliability.”
Among the provisions cut out of the original rules were specific
penalties for violations. Davis said that was done because the penalty provisions were already in the law.
“The statute speaks for itself,” he said. “We don’t need to be
repeating it in every rule that we draft.”
Davis said the rules provide customers 90 percent of the benefit of the Clayton and Gaw versions but at a tiny fraction of the cost.
St. Louis-based AmerenUE said it is content with the outcome.
“These are rules we can live with,” spokeswoman Susan Gallagher said. “We believe they increase requirements for tree trimming and communications with customers and transparency.”
jtomich@post-dispatch.com | 314-340-8320
John Coffman, the Consumers Council’s outstanding General Counsel, will be speaking about the relationship between renewable energy and consumer protections at the Holden Public Policy Forum on October 10th. The event is free and open to the public and will begin at 4 p.m in the Sunnen Lounge. Come and learn how activists can help change the way that electirc utilities do business. For more information, call 968-7423.
