It's Electrifying! - October 25, 2006

IT'S ELECTRIFYING!

It is important that we have clean, renewable energy now, and for the future. Initiative I-937, called the Energy Independence Act, would require utilities, by 2020, to purchase 15% of their power from renewable sources. These renewable sources could include wind farms, solar panels and geothermal plants. Utilities who do not comply would receive substantial fines. The OPALCO Board of Directors, after carefully evaluating I-937, has decided not to support it.

OPALCO supports the use of renewable resources, and we have been a leader in energy conservation. OPALCO was the first public utility in Washington State to offer green power to its members. In addition, the sources of OPALCO’s power are 96% greenhouse gas free. With this understanding, the obvious question then becomes, “If OPALCO supports green power, why does its Board of Directors not support I-937?” Here’s why.

First, wind power is the most commercially viable alternative energy accepted under I-937. The initiative assumes that wind power will be relatively inexpensive. It is not. This assumption is based on the fact that there are currently federal subsidies, the Clean Renewable Energy Bonds (CREB) and Federal Production Tax Credit (FPTC), supporting the development of alternative energy projects. Unfortunately, these subsidies are scheduled to go away next year. At the same time, demand for wind power equipment is growing more rapidly than manufacturers can supply, therefore prices are rising. Both of these facts mean wind power will probably become much more expensive than currently projected, invalidating the initiative’s assumption.

Second, 80% of power generated in Washington State is clean, renewable hydropower. Existing hydropower, however, does not qualify under I-937. Under this initiative, utilities that get a substantial portion of their electricity from hydropower may be forced to buy power from other sources, regardless of their cost-effectiveness. These utilities may end up paying more money for power that provides no environmental benefit.

Third, the state-wide mandate of I-937 is not necessary. Even without a mandate, Bonneville Power Authority (BPA) has over 1400 megawatts (MW) of alternative energy production and another 3100 MW of alternative energy projects in the works. In addition, the Northwest Power and Conservation Council states that another 3000 MW can be saved through energy conservation measures alone.

Fourth, each utility integrates new power resources in the most scientific and economical way possible. This is done through an extensive resource planning process. The I-937 mandate will force local utilities to acquire renewable resources without regard to their resource plans or the cost-effectiveness of the power.

Finally, whether I-937 is passed or not, we need to realize that as responsible voters and power consumers, our job is not done. We should also:

Write our Federal Legislatures requesting they renew the federal subsidies for CREB and FPTC.

Practice energy conservation by buying Energy Star products and insulating our homes (see the article by Martha Warachowski published in September).

Continue supporting renewable energy locally by purchasing green power from OPALCO.

OPALCO supports clean, renewable energy and less green house gases, and is working toward this goal. I-937 says it will move us towards these goals, but it will be a very expensive and possibly ineffective. I-937 is not the way to encourage the growth of green power.

Kyle Hall, Consultant and Director of OPALCO’s Ambassador Program

OPALCO
Member Owned & Operated