Author Archives Laura Arnold

Senate Environmental Affairs Committee to hear bill 2/4/13 to create new Indiana Office of Energy Development

Posted by Laura Arnold  /   February 04, 2013  /   Posted in Uncategorized  /   No Comments

The Senate Environmental Affairs Committee is scheduled to hear SB 529 to create an Indiana Office of Energy Development as follows:

DATE:  Monday, February 4, 2013

TIME:  10:00 am EST

PLACE:  Room 233, State House, 200 W. Washington St., Indianapolis, IN 46204

AGENDA:

SB 586 IDEM Certified Mail-- ***NO PUBLIC TESTIMONY; AMEND AND VOTE ONLY***

SB 529 Office of energy development

Watch on-line HERE  > http://www.in.gov/legislative/2441.htm then Please select Video Stream on the pull-down menu for Senate Room 233.

SB 529 Digest: Office of energy development. Establishes the Indiana office of energy development (office) within the office of the governor. Provides that the director of the office is the chief energy officer of the state. Provides that the office administers: (1) the alternative fuel fueling station grant program; (2) the alternative fuel vehicle grant program for local units; (3) home energy assistance and weatherization programs; (4) the energy development fund; (5) a low interest revolving loan program in consultation with the Indiana recycling market development board; (6) the Indiana coal research grant fund; (7) the green industries fund, in consultation with the Indiana economic development corporation; (8) the office of alternative energy incentives and the alternative energy incentive fund; (9) the E85 fueling station grant program, in consultation with the Indiana department of agriculture; and (10) the center for coal technology research and the coal technology research fund. Transfers the powers, duties, assets, liabilities, and rules relating to energy and energy development from the following entities to the office: (1) The lieutenant governor. (2) The center for coal technology research. Provides that the office may adopt rules to carry out its responsibilities. Abolishes duties of the lieutenant governor relating to energy policy. Makes conforming amendments.

Bill: http://www.in.gov/legislative/bills/2013/PDF/IN/IN0529.1.pdf

Fiscal: http://www.in.gov/legislative/bills/2013/PDF/FISCAL/SB0529.002.pdf

Senate Environmental Affairs Committee Members:

Chair: 

Sen. Edward Charbonneau (R-Valparaiso); s5@in.gov or (317) 232-9494

Members:

Sen. Jean Leising (R-Oldenburg) R.M. #, s42@in.gov or (317) 232-9054

Sen. Phil Boots (R-Crawfordsville), s23@in.gov or 317-234-9054

Sen. Doug Eckerty (R-Yorktown), s26@on.gov or (317) 232-9426

Sen. Susan Glick (R-LaGrange), s13@in.gov or (317) 232-9493

Sen. Travis Holdman (R-Markle), s19@in.gov or (317) 232-9807

Sen. Scott Schneider (R-Indianapolis), s30@in.gov or (317) 232-9808

Sen. Mark Stoops (D-Bloomington) R.M.M., s40@in.gov or (317) 232-9847

Sen. Jean Breaux (D-Indianapolis) #, s34@in.gov or (317) 232-9534

Sen. Lonnie Randolph (D-East Chicago) #, s2@in.gov or (317) 232-9532

# = denotes also a member of Senate Utilities Committee

R.M. = Ranking Member

R.M.M. = Ranking Minority Member

 

IndyStar: Indiana legislature bill (SB 560) would make it easier for utilities to raise rates

Posted by Laura Arnold  /   February 01, 2013  /   Posted in Uncategorized  /   No Comments

Sen. Utilities Committee photo

The Indiana Senate Utilities Committee met on 1/31/2013 for nearly three hearings on SB 560 dealing with several utility issues in a standing room only committee room of the State House. Sen. Jim Merritt (R-Indianapolis) who chairs the committee asked opponents to testify first before the proponents after allowing Sen. Brandt Hershman (R-Buck Creek) to explain SB 560 and his three proposed amendments. Opponents to SB 560 ranged from statewide consumer and utility watchdog group Citizens Action Coalition, the Sierra Club and the Hoosier Environmental Council to the Indiana Industrial Energy Consumers (INDIEC) comprised of large manufacturing companies including members companies ArcelorMittal, Steel Dynamics and Nucor Steel. These groups focused their opposition to creation of a new tracker mechanism, changes in the test year for basing rate case filings and shifting risk from utility shareholders to monopoly ratepayers. Their testimony was very detailed and extensive drawing from specific experience in recent utility rate proceedings before the Indiana Utility Regulatory Commission (IURC). The opponents presented facts and figures as well as espousing how SB 560 violated the basic premise of balancing the interests of ratepayers with utility shareholder interests.

Indiana Propane Gas Association and several of their members specifically opposed the portion of the bill allowing natural gas utilities to build gas pipelines, etc. to connect rural Indiana customers not currently receiving natural gas service. These propane companies alleged that the language in SB 560 would allow natural gas utilities to extend service where it is uneconomic to do so and to make the other captive ratepayers to essentially provide an interest free loan to allow the gas utility to expand its service territory and increase its customer base at the expense of their members.

A representative of LS Power Development LLC addressed anti-consumer and anti-competitive aspects of the transmission language currently in Section 9 of the bill as well. LS Power described the impact of SB 560 on future transmission construction and how the proposed legislation addressed issues from the 2011 Federal Energy Regulatory Commission (FERC) Order 1000.

The primary proponents of SB 560 were Ed Simcox representing the Indiana Energy Association (IEA) which is the trade association for the investor-owned electric and natural gas utilities. NIPSCO VP Frank Shambo also testified supporting the bill. The association for the rural electric co-ops and a representative of the Indiana Farm Burueau also supported the bill.

The committee, however, voted 8-2 DO PASS as amended with all the Republican members voting for the bill plus Sen. John Broden (D-South Bend). Sen. Jean Breaux (D-Indianapolis) and Sen. Lonnie Randolph (D-East Chicago) both voted against the bill. The bill nows goes to the full Senate for second reading where it can be amended again and then third reading or final passage both which could take place as early as next week.

Laura Ann Arnold

This is link to an Indianapolis Star video of Sen Hershman and Kerwin Olson. Watch.
http://www.indystar.com/videonetwork/2132827938001/Debate-over-Senate-utility-legislation

Written by Tony Cook, Indianapolis Star, Jan 31, 2013

A wide-ranging bill that would make it faster and easier for Indiana utilities to raise rates received support Thursday from a state Senate committee.

The Utility Committee voted 8-2 to support Senate Bill 560. The bill, proposed by Sen. Brandt Hershman, R-Buck Creek, would make several changes to how electric and natural gas rates are established.

The bill would change the ratemaking process for distribution upgrades, such as replacing power lines or natural gas pipelines. Right now, utilities get a rate of return on those improvements through base rate cases, which are extensive full-scale reviews of the company’s expenses and revenues that can take more than a year. Under the bill, utilities could seek rate increases more frequently for individual projects through a smaller-scale review process known as “tracking.”

Opponents say the change would make it easier for utilities to hike customers’ rates. Proponents say it would prevent “rate shock” by allowing smaller, incremental rate increases.

The bill also would limit the amount of time state regulators have to approve base rate cases to 300 days. Currently, those cases sometimes take 18 months. Utility companies say the measure would make the regulatory process more efficient, but consumer advocates worry regulators and others wouldn’t have enough time to fully vet requested rate increases.

The bill also contains other measures, including some intended to boost economic development and extend natural gas pipelines into more rural areas of the state. Opponents complain those measures would force existing ratepayers to subsidize new development.

Call Star reporter Tony Cook at (317) 444-6081 and follow him at twitter.com/indystartony.

CAC’s Kerwin Olson: Dueling energy proposals bear monitoring at Indiana State House; How will they impact you?

Posted by Laura Arnold  /   January 31, 2013  /   Posted in Office of Utility Consumer Counselor (OUCC), Uncategorized  /   No Comments

Dear IndianaDG Readers:

In any attempt to bring you a variety of viewpoints on energy and utility issues that will impact renewable energy and distributed generation, please find below a pieve written by Kerwin Olson who is the Executive Director of Citizens Action Coalition.

Just a friendly reminder, SB 560 will be heard this morning (1/31/2013) in the Senate Utilities Committee starting at 9 am. You can watch on-line. Please visit this previous post for details http://wp.me/pMRZi-12b.

As of last night there were three proposed amendments circulating which may or may not be offered to SB 560.

Laura Ann Arnold

http://www.journalgazette.net/article/20130131/EDIT05/301319991/1021/EDIT

Published: January 31, 2013 3:00 a.m.

Dueling energy proposals bear monitoring

Kerwin Olson

The fate of monthly utility bills and the future of Indiana energy policy will be a hot topic of discussion in the Indiana General Assembly.

Once again, the proposed coal-to-gas plant to be built in Rockport by Indiana Gasification will be the subject of legislation. Two companion bills, SB 510 (authored by Sen. Doug Eckerty – R, Yorktown) and HB 1515 (authored by Rep. Suzanne Crouch – R, Evansville) promise to protect consumers from what are certain to be excessive charges for the substitute natural gas to be produced by the proposed facility. By making this the law of our state, captive Hoosier ratepayers will be protected from being gouged by an Enron-like scheme that promises hefty returns for a privately held, out-of-state hedge fund.

Conversely, SB 560 (authored by Sen. Brandt Hershman, R, Monticello) guarantees that captive gas and electricity ratepayers will face enormous bill increases; the legislation eliminates regulatory protections to which captive consumers are entitled. SB 560 will shift almost all of the costs and risk of operating a monopoly utility company to captive ratepayers and away from voluntary investors. Additionally, SB 560 would allow the monopoly utilities to raise rates virtually automatically and would further reduce regulatory oversight by placing unreasonable time restrictions on both the Indiana Utility Regulatory Commission and the Office of Utility Consumer Counselor to review requests by the monopoly utilities to raise your rates. Should SB 560 become law, monopoly utility profits will become excessive as the utilities will have little incentive to control costs while the more expensive, risky and obsolete technologies will continue to be chosen over cheaper, cleaner and less risky alternatives.

Every branch of government is being asked to do more with less. The public is struggling with stagnant and diminishing wages, while monthly electric bills have increased nearly 50 percent over the last decade, and the cost of living continues to soar, especially for essentials such as food and health care. Meanwhile, the monopoly electric and gas utility companies in Indiana are working hard to undermine regulatory oversight and are attempting to deregulate their monopoly revenue and profits. They are asking your elected officials for a raise, and they want it to come from your checkbook. While everyone else is being forced to tighten their belts and the working class and vulnerable populations struggle to survive, the monopoly utilities parade around the halls of government with unfettered access working to increase their monopoly revenue and profits at the expense of the public.

It should be interesting to observe the now Republican-dominated General Assembly and a newly elected governor with no Statehouse experience navigate the two paradigms. Will they allow the monopoly utilities with their deep pockets to control the agenda and the future of Indiana energy policy, or will they stand up for consumers, keep the utilities in check and protect the public interest? We’ll learn the answer during what promises to be a long and contentious 2013 General Assembly session. Stay tuned.

Kerwin Olson is executive director of Citizens Action Coalition in Indianapolis. He wrote this for Indiana newspapers.

SB 560 Hearing in Senate Utilities Committee on 01/31/2013 at 9 AM in Room 233 of Indiana State House

Posted by Laura Arnold  /   January 28, 2013  /   Posted in Uncategorized  /   No Comments

SB 560 has been posted for a hearing in the Senate Utilities Committee as follows:

WHO:                   Indiana Senate Utilities Committee

WHAT:                 Committee Hearing on SB 560

WHEN:                 Thursday, January 31, 2013 starting at 9 AM until ???

WHERE:               Room 233, State House, 200 W. Washington St., Indianapolis, IN 46204

Watch the Senate Utilities Committee hearing on-line. Please visit http://www.in.gov/legislative/2441.htm and then select Senate Room 233 from the pull down menu.

For information on SB 560 please see this earlier blog post at http://wp.me/pMRZi-11b.

If your State Senator is a member of the Senate Utilities Committee, please contact them BEFORE the hearing and tell them that SB 560 as currently written WILL NOT help renewable energy and distributed generation.

Please contact me if you are interested in receiving a fact sheet on SB 560 explaining why it will not help renewable energy and distributed generation. We fully expect major amendments to be offered in committee to change the bill. The amendment may even be a complete STRIP AND INSERT. We will try to keep you posted as information becomes available.

Indiana Senate Utilities Committee Members:

Senator Jim Merritt (R-Indianapolis), Chair, s31@in.gov or (317) 232-9533

Senator Dennis Kruse (R-Auburn), R.M., s14@in.gov or (317) 233-0930

Senator Rod Bray (R-Martinsville), s37@in.gov or (317) 232-9466 

Senator Mike Crider (R-Greenfield),  s28@in.gov  or (317) 232-9463

Senator Jean Leising (R-Oldenburg), s42@in.gov or (317) 234-9054

Senator Jim Tomes (R-Blairsville), s49@in.gov or (317) 232-9414

Senator Carlin Yoder (R-Goshen), s12@on.gov or (317) 232-9984

Senator Jean Breaux (D-Indianapolis), R.M.M., s34@in.gov or (317) 232-9534

Senator Lonnie Randolph (D-East Chicago), s2@in.gov or (317) 232-9532

Senator John Broden (D-South Bend). s10@in.gov or (317) 232-9423

Red state, green Republican:a Q&A with Indianapolis Mayor Greg Ballard; Ferber asks Mayor about IPL feed-in tariff (FIT)

Posted by Laura Arnold  /   January 28, 2013  /   Posted in Feed-in Tariffs (FiT), IPL Rate REP, Uncategorized  /   No Comments

Indianapolis Mayor Greg Ballard poses with an electric Ford Focus in December. Indianapolis plans to replace its entire fleet with electric and plug-in hybrid vehicles by 2025. (Rich Callahan / Associated Press)

Indianapolis Mayor Greg Ballard poses with an electric Ford Focus in December. Indianapolis plans to replace its entire fleet with electric and plug-in hybrid vehicles by 2025. (Rich Callahan / Associated Press)

INDIANAPOLIS — In December, Indianapolis Mayor Greg Ballard made national news by announcing that Indianapolis would be the first U.S. city to shift its entire fleet, including police cars, to electric and natural-gas powered vehicles, and that it would do so by 2025.

But that was hardly the first move he’d made toward sustainability.

Soon after taking office in 2008, Ballard created the city’s first Office of Sustainability. His administration has conducted energy-efficiency retrofits on 61 city-owned buildings; created bike lanes all over the city; and outfitted the 28-story Indianapolis City-County building with solar panels, wind-powered lights, low-flow toilets and a geothermal chiller.

These days many big-city mayors are moving to reduce energy and water usage. But Ballard, a Gulf War veteran who served more than two decades in the Marine Corps, is a Republican mayor in a conservative state where the coal-mining industry and coal-burning utilities are potent political forces.

Midwest Energy News wanted to know more about what drives Greg Ballard’s sustainability efforts, and his larger vision for sustainability of the nation’s 12th-largest city (responses have been edited lightly for length and clarity).

Midwest Energy News: You created Indianapolis’ first sustainability office.

Mayor Greg Ballard: To be honest with you, I was a little shocked about that. We started it in October 2008. It’s funny that a Republican mayor started that in the city of Indianapolis. And a jarhead to boot, right? That’s probably unique.

I wonder if we could talk about your overall vision for sustainability and how you came to that viewpoint.

Well, a lot of what I did was common sense. That’s the way I see it. If you save energy on a building, you save money at the same time. Shouldn’t we be doing that sort of thing? Same thing with water. So we retrofit 61 buildings across the city and saved money in the process. This building [the Indianapolis City-County Building, where Ballard’s office is located] is 50 years old. Now there’s geothermal and solar associated with it. That’s a pretty big deal.

Now our city administrator, or city engineers, if you will, have to look at these green pieces. They didn’t have to before. Putting that in the process was a big deal. We did things that just made a lot of sense. Bike lanes obviously make a lot of sense. It’s tough to go to any major city in the United States that’s not putting in bike lanes. That’s not only healthy, but it attracts the creative class.

There are a lot of prisms you can [use to] look at this. One of mine is, Are we attracting the young entrepreneurs, the creative class, which is then good for businesses in the city? These younger folks are looking for a sustainable city. They’re looking for cities that have those sorts of amenities in them. They want to see green roofs. They want to see bike lanes. They want to see porous pavement. They want to see the rain gardens.

At Midwest Energy News, we focus a lot on energy, on the electrical system. Where does moving the city on a broader scale toward renewable energy fit into this equation?

Well, we don’t own the utilities, obviously. But Indianapolis Power & Light (IPL) has been very good to us about our post-oil initiative. They’ve been helping us build charging stations, along with the Indiana Utility Regulatory Commission. I went to the IURC and IPL to talk about this quite a few months ago, and they were [on board] in five minutes. They knew exactly what I was trying to do.

To me it’s always national security. I was in the Gulf War, a 23-year marine–retired as lieutenant colonel. I’ve studied this issue for a long time. It’s bothered me for a long time that we keep sending money to people who want to do us harm. The estimate from a Rand analysis is $85 billion a year to protect that system and infrastructure. If that’s what had to be done to maintain our quality of life, OK. But, what I’m suggesting is that it is moved to such a point that we don’t have to do that anymore.

Most people know me as a rational, pragmatic guy. I wouldn’t have made this move unless I thought we could make the move. I don’t think it’s too early because the technology of cars allows us to do it. We expect to save $12,000 per car per life cycle [in fuel costs]. Forty percent of all the oil in the country is for the light transportation sector–that’s sedans, SUVs, light trucks. We must move the needle on that. That will eliminate our dependence on foreign oil.

We’re going to work with auto manufacturers to try to get a police car that gets at least 40-50 miles per gallon, if it’s not a plug-in. We get 8-10 miles per gallon now, as do most cities across the nation. If I get 40-50, I save over $6 million a year. That’s a big number.

If you talk to environmentalists, the picture they sketch of sustainability will also include moving away from coal, moving away in general from fossil fuels for electricity. How do you see renewable energy fitting into your picture of a sustainable Indianapolis?

You’re from the Midwest; you know it’s a coal area. I know coal is not as clean as everybody wants, but it’s a lot cleaner than it was 30 years ago. I was telling one of my guys this morning that when I went to the Marine Corps and drove back and forth across the country to duty stations, you knew you were approaching a major city 20 miles out because you could see a big brown cloud–everywhere in the country. You don’t see that anymore. And even when I ride my bike, the exhaust fumes of a car that was built in the last 20 years are virtually non-existent compared to a car that was built in the 1970s.

I realize there’s more to go, but I don’t want to dismiss the fact that we’ve moved so far so fast on air pollution and keeping it cleaner. Is there another level we want to get to? I think everybody would say yes to that.

On post-oil vehicles, even if they’re powered by coal, it’s still cleaner than burning gasoline. Wind energy would be even better. I think we’ll get there. We’ve just got to get the technology there. And I think people are working on it. It appears to me they’re working on it pretty quickly.

There are some conservatives out there who treat sustainability as if it were a dirty word. You obviously don’t. For example, you were at the statehouse yesterday making the argument for mass transit. How do you talk to your fellow conservative Republicans about this? How do you make your argument?

I do whatever it takes. To me, I make no secret that mass transit in Indianapolis is primarily about talent attraction. Just like post-oil vehicles are about national security.

The people who are probably more progressive on this, I think they understand what I’m trying to do. But when I execute these things–with a great team, by the way–I don’t get a lot of pushback. I get some. To me this is mainstream now. It’s all common sense.

You’ve been a strong advocate of energy independence.

Actually, I never use the term “energy independence.” I use, “energy choice.” I think we need choice at the consumer level all the way up to the strategic level. I don’t think it’s a bad thing to tell Venezuela that we may or may not buy your oil, depending on your behavior. Right? So we need choices to make sure that one, prices stay down, and two, that we can drive other policies we need.

I never use the term “energy independence” because it implies that it’s just about us. And it’s not just about us. Part of the reason I’m doing this is that I don’t want just America to get off foreign oil. I need China and India to be off foreign oil too. Otherwise they will keep feeding money to people who want to do us harm. So it’s bigger than just us.

You’ve put all that solar on city buildings and some wind. But the citizens of Indianapolis lost the ability to do some of that when they lost the [Indianapolis Power & Light] feed-in tariff policy. It was just a pilot program, I realize, but there had been hopes to grow it. Would you bring your influence to bear on IPL to advocate for the reinstatement of the feed-in tariff or other policies that promote renewables?

I’d have to look at it on a case-by-case basis. I think there’s more of a trend toward renewables. But it’s going to be difficult. It’s not just Indiana. There were a lot of mayors, a lot of Democratic mayors, at the conference [the U.S. Conference of Mayors winter meeting, which was held earlier this month in Washington, D.C.], saying, wait a minute, we run on coal. You guys are gonna kill us with some of these things that you’re advocating for.

People say, dollar for dollar, it doesn’t make sense, that wind isn’t quite there yet. I wish there was a big breakthrough in solar in the near future. I think a breakthrough in solar, and storage and distribution ability would be very beneficial. And I think we’re probably–my understanding is that we’re closer to that than we are with wind.

Another example of a policy various neighboring states and cities have used is a mandatory renewable energy standard. For example, Michigan has a 10 percent standard. That would be a statewide policy. Are you in favor of it and would you advocate for it?

Mandatory is one thing. A goal is something else. You don’t want to hamstring people along the way. I think it’s better to have a general consensus and to move people in that direction. I’ve been leading organizations since I was 23, it’s better to have a goal to bring people along, and put incentives in place to get there. … All that said, I’m not against mandatory things sometimes.

What a lot of environmentalists regard as the elephant in the room is the Harding Street Generating Station. There’s a big effort right now, as you know, to shut that plant down. Since this is widely viewed as a big polluter here, would you use your influence to push for IPL to retire its Harding Street plant?

I think it has to be taken in the larger context of what they do in the area. We have good relationships with IPL. I know where they’re coming from on that and that is the energy of choice right now, if you will. Do we want to move in that direction so we can have better air? Yes, I don’t think there’s any question about that. I think most people are hoping there’s a breakthrough in the ability to clean the coal, frankly. Whether that’s going to happen or not, I don’t know, honestly. And then we’ll have to see what the federal government does. Because the federal government is going to get very aggressive on that very soon. That’s my understanding. So, I’m a little bit ambivalent about that right now.

Another type of program that people talk about as far as cleaner energy are these property-assessed clean energy (PACE) bond programs, where the city floats a municipal bond, then uses the money to pay [homeowners] for weatherization. Then homeowners pay the city back through a property tax surcharge. Could you see Indianapolis getting to be a leader in that, given that there are a lot of older buildings that could be weatherized?

I like the idea. The retrofit piece with existing buildings–the scale of that would be big. But I think we’ve proven as a city that could be done. The 61 buildings that we retrofit–we’re saving a fair chunk of change doing it. On city property we could do it.

Whether it could be cost-effective for a regular house, especially in this cold weather right now…We’ve had some people come in and look at it and talk to us about this. Do we have a full-blown policy on that? Not yet. I’m going to have to go down [and talk to some of his staff] and take a look. I’m glad you brought that up.

Speaking of which, I wonder if there are other indirect policies you like that could influence the private sector to move toward renewable energy.

Well, you look downtown here and you can see the big buildings. These are the guys that take up a lot of energy. And they run off a lot of water, frankly.

Policy-wise, I think we need to be looking at the larger buildings, I’ll put it that way. That’s something that needs to be done.

Are there any other pieces of this larger issue of sustainability that I haven’t asked you about?

Well, I always look at this as a national security issue. I think energy security is national security. A lot of people see it a little differently, which is OK. I mean, the people who see it more environmentally, they’re gonna be with me anyway.

The way I’m trying to position it is that people understand that we can move in this direction–not just because it’s environmental, but because of the national security issues, and frankly just cost efficiency. I want to keep the costs down and be more efficient. I just think that’s a better way of doing things. Saving energy has its own benefits.

But there’s more to do policy-wise. I know people see me as–you know, you opened up the office of sustainability and everything else. But we have some policy things that we need to take a broader look at. We just do.

Original article: http://www.midwestenergynews.com/2013/01/28/red-state-green-republican-a-qa-with-indianapolis-mayor-greg-ballard/ Posted on by

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