Announcing a goal of adding 1,000 MW of new wind energy by 2011 as part of its strategy to address greenhouse gas emissions, American Electric Power (AEP)
issued two requests for proposals (RFP) seeking long-term wind energy purchase agreements within the PJM Interconnection, LLC, territory.

The RFPs are for up to 260 MW of wind energy for AEP’s Appalachian Power utility unit and up to 100 MW of wind energy for AEP’s Indiana Michigan Power utility unit. The combined 360 MW of wind energy included in the two RFPs equals almost 60% of the currently installed wind generation in the territory of PJM, a regional transmission organization covering all or parts of 13 states ranging from Illinois to North Carolina to New Jersey.

The deadline for bids is April 30, with delivery to begin by the end of 2008, the current expiration of the federal wind production tax credit. RFP information can be found at http://www.IndianaMichiganPower.com/go/rfp and http://www.AppalachianPower.com/go/rfp .

The purchases, if approved by regulators, will mark AEP’s first commercial use of wind energy in its seven Eastern states, with Indiana, Michigan, Virginia, and West Virginia sites to be among those considered for the wind farms. AEP currently owns two wind farms in Texas with a total capacity of 310 MW and has long-term contracts to purchase 467 MW of output from wind farms in Oklahoma and Texas owned by third parties.

Much of the 1,000 MW of wind energy AEP plans to add by 2011 is expected to be located in PJM and serve customers in AEP’s Eastern states, the company said.

“We face the need for additional supplies to meet our customers’ growing demand for electricity,” said Michael G. Morris, AEP’s chairman, president and CEO. “Using wind energy to help satisfy that increased demand aligns with the desire expressed by many governors for alternative energy resources for customers in their states.”

Morris also said the added wind “also improves our fuel diversity in our Eastern footprint” and, “With Congress expected to take action on greenhouse gas limits, this added fuel diversity will prove important for our customers and shareholders.”

The plan to add 1,000 MW of nameplate-rated wind capacity by 2011 is part of AEP’s comprehensive strategy to capture, reduce, avoid, or offset greenhouse gas emissions. The addition of wind capacity to AEP’s energy portfolio to meet growing electricity demand avoids an increase in greenhouse gas emissions that would occur if AEP used traditional fossil generation, the utility said.

“Wind generation can play a role in helping the U.S. meet climate targets,” Morris said. “For wind to reach its maximum potential, Congress must first address a long-term extension of the federal production tax credit for wind generation. The production tax credits help make wind energy cost-competitive with other sources. But the short-term nature of the current production tax credit program and the constant uncertainty about extension serve as financial disincentives to investment by wind turbine manufacturers and wind developers and act to increase the cost of wind energy.”

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TXU Wholesale, a subsidiary of TXU Corp., and renewable energy company Airtricity announced that Airtricity has completed construction of the Forest Creek Wind Farm, increasing TXU Wholesale's renewable energy capacity by 125 MW.

The project is the first in the U.S. that Airtricity has brought online and, according to the company, is only the beginning of things to come. The wind farm is expected to provide power for more than 24,000 homes—enough to meet the annual energy needs of about 56,000 Texans, the companies said. The facility is located approximately 25 miles southeast of Big Spring, Texas.

“The Forest Creek Wind Farm is yet another tangible demonstration of TXU's commitment to clean energy technologies,” said Mike McCall, chairman and CEO of TXU Wholesale. “In our recent press release announcing execution of a definitive merger agreement with an investor group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group, we announced that we plan to double our wind power purchases to 1,500 MW and increase investment in alternative energy, maintaining our status as the largest buyer of wind power in Texas. The Forest Creek project further diversifies Texas' energy supply, which will enhance affordability and price stability.”

TXU Wholesale and its affiliates currently have contracts for 705 MW of renewable energy from 756 wind turbines.

“Airtricity is pleased to be a part of bringing new green power sources to Texas customers and we applaud TXU's efforts to increase its green purchasing,” said Airtricity CEO Eddie O'Connor. “Bringing our first North American project online is a major milestone for Airtricity, and is part of major expansion plans for Airtricity in the U.S. and Texas.”

The wind farm generates electricity from 54 2.3-MW Siemens wind turbines. Airtricity owns and operates the facility.

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Led by Senator Bob Menendez (D-N.J.), 18 Senators signed a March 30 letter to the chairman and ranking member of two key subcommittees urging strong funding levels for the U.S. Department of Energy’s (DOE) renewables research and development (R&D) programs, including an increase in the wind R&D budget to $110 million from the current $44 million.

The letter was addressed to Senators Byron Dorgan (D-N.D.) and Pete Domenici (R-N.M.). Dorgan is a senior member of the Senate Energy Committee and also serves as chairman of the Appropriations Subcommittee on Energy and Water Development; Domenici is the ranking Republican of those two bodies.

“We are very grateful for your past support of these programs, and in particular the additional $300 million that was provided for DOE’s Energy Efficiency and Renewable Energy office in the Fiscal Year 2007 Continuing Resolution, and hope that you will continue this momentum with strong funding levels in the Fiscal Year 2008 Energy and Water Appropriations Bill,” the letter stated.

The letter specifically referenced the Wind Energy Technologies Program, noting that the Bush administration’s FY 2008 budget called for wind R&D investments of only $40.1 million—$4 million less than the current amount. “We urge you to fund the Wind Energy Technologies Program at $110 million in FY 2008,” the letter stated.

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The Montana Department of Natural Resources and Conservation (DNRC) issued two requests for proposals (RFP), one for the Geyser Wind Farm in Judith Basin County and the other for the Martinsdale Wind Farm in Meagher and Wheatland Counties.

DNRC seeks proposals from experienced wind project developers capable of designing, constructing, financing, and operating a commercial-scale wind farm. Both RFPs close on May 16. Applicants interested in visiting the site should contact Clive Rooney at DNRC North Eastern Land Office, phone 406-538-7789. The deadline to submit questions and requests for RFP clarification to DNRC is April 18. For the RFPs go to www.dnrc.mt.gov/rfp/default.asp .

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Austin Energy topped the list for renewable energy sales and Xcel Energy led for number of customer participants, in the National Renewable Energy Laboratory’s (NREL) annual ranking of leading utility green power programs, released April 3.

Under the voluntary programs, consumers can choose to help support additional electricity production from renewable resources such as solar and wind. More than 600 utilities across the U.S. offer such programs.

Ranked by renewable energy sales, the green power program of Austin (Texas) Energy was first in the nation (581 million kWh), followed by the programs of Portland General Electric (433 million kWh), Florida Power & Light (303 million kWh), PacifiCorp (300 million kWh) and Xcel Energy 237 million (kWh).

Ranked by total number of customer participants, the top utilities were Xcel Energy (63,028), PacifiCorp (51,297), Portland General Electric (50,284), Sacramento Municipal Utility District (35,707), and PECO (34,303).

“Utility green power sales continue to show strong growth across the country,” said Lori Bird, senior energy analyst at NREL. “These utilities are the national leaders.”

Customer choice programs are proving to be a powerful stimulus for growth in renewable energy supply, according to NREL, a U.S. Department of Energy agency. In 2006, total utility green power sales exceeded 3.5 billion kWh, about a 30% increase over 2005. More than 500,000 customers are participating in utility programs nationwide, up more than 10% from 2005.

Utility green pricing programs are one segment of a larger green power marketing industry that counts Fortune 500 companies, government agencies and colleges and universities among its customers, and helps support more than 2,500 MW of renewable electricity generation capacity, NREL said.

NREL analysts attribute the success of many programs to persistence in marketing and creative marketing strategies, including in some cases, utility partnerships with independent green power marketers. In addition, the rate premium that customers pay for green power continues to drop. “Higher prices for conventional energy sources, as well as increasing environmental concerns, are focusing greater attention on renewable energy options,” said Blair Swezey, NREL principal analyst.

“The voluntary markets to date have resulted in over 2,500 MW of renewable energy facilities, including wind projects, being developed just to support these voluntary, customer-driven programs—showing that customers throughout the U.S. are demanding clean energy options such as wind power,” said Jeff Anthony, AWEA manager of utility programs and policy.

Using information provided by utilities, NREL develops “Top 10” rankings of utility programs in various categories: total sales of renewable energy to program participants, total number of customer participants, customer participation rate and the lowest price premium charged for a green pricing service using new renewable resources. For all the Top 10 rankings, go to www.eere.energy.gov/greenpower/resources/tables/topten.shtml .

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Both chambers of the Virginia General Assembly passed an electricity “re-regulation” bill that includes a utility-endorsed, non-binding renewable portfolio standard (RPS) “goal” for 12% of electricity to come from renewables by 2022.

While the goal is non-binding and the targets are modest compared to other states, the legislation is noteworthy for a couple of reasons. Dominion Resources, the largest utility in the state, has expressed a desire to meet the goals, which are incremental: 4% in 2010, 7% in 2016, and 12% in 2022. In addition, it is the first time such a goal has been set in the South. Only three non-binding goals are currently in place in the U.S.; Illinois and Vermont are the other states having them.

Perhaps most importantly, the legislation also includes financial incentive for utilities to meet the goals. Every time a utility hits one of the incremental targets, it can increase its base rate of return on equity by 0.5%. The incentive can only increase the likelihood that utilities will work toward the goals and buy more wind, said those inside the industry.

The state Senate and House of Delegates on April 4 approved all of Governor Tim Kaine’s (D) amendments to the original bill. The legislation also includes a 10% target for energy efficiency and conservation. The bill calls for utilities to receive double credit toward meeting the RPS for both wind and solar power. Renewable generation can come from anywhere inside the regional transmission entity of which the participating utility is a member—including out-of-state facilities and renewable energy credits produced by such facilities.

Even though the bill is non-binding, Senator Mary Margaret Whipple (D), a long-time champion of a Virginia RPS, said she feels good about the legislation, expressing optimism that Dominion would hit the targets to which it has committed. She also said the legislation is meaningful for being a symbolic endorsement of renewables, energy efficiency, and conservation. The bill states plainly that developing renewables and advancing energy efficiency are in the public interest. “These are important policy statements for the state to make,” Whipple told Wind Energy Weekly.

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Using the AWEA Finance & Investment Workshop to discuss his state’s efforts at cutting greenhouse gas emissions, California Public Utilities Commission Executive Director Steve Larson said that wind is a central part of the answer and that transmission is the No. 1 barrier to achieving the state’s renewable portfolio standard [RPS] goals.

More than 160 people involved in the financial and banking side of wind energy participated in the workshop, which took place at the end of March in San Francisco, Calif. Keynoting the event was Larson, who explained that because California is an agricultural state, one of its key issues is water, much of which is stored as snow in the mountains. “How the snow melts is really important,” said Larson. Linking snow melt and climate change, Larson talked about the state’s goals to reduce greenhouse gas emissions, saying the “wind industry is a central part of what we’re doing here in California.”

California ’s Energy Action Plan, which includes energy efficiency initiatives and increased use of renewables, is an effort to meet energy demand and avoid price spikes and outages, while at the same time reducing greenhouse gases. Larson admitted California will likely miss its 20% RPS goal in 2010, but he said it will catch up by 2011. The No. 1 barrier to achieving its RPS goals, he said, is transmission.

The workshop agenda featured panels of experts on topics ranging from project financing, renewable energy policies, the wind resource and forecasting, debt, equity, and mergers and acquisitions.

Presenting an analysis of renewables policies in the Western states, Ryan Wiser, a scientist at Lawrence Berkeley National Laboratory, said that looking ahead, state RPSs could be a major driver in new renewable energy development, given that half of all wind project development in the U.S. from 2001 to 2006 was RPS-related.

Such policies spur new projects and lead to new power purchase agreements—what lenders are looking for to reduce risk. With more projects and more investors today, the required returns from projects have come down 20-30% in the past few years, according to Robert Poore, president of Global Energy Concepts, LLC. That’s particularly significant in a capital-intensive industry such as wind, said Poore, emphasizing that the industry must continue to nurture the confidence of capital markets.

Poore also said that while wind technology is evolving and turbine sizes are increasing, the industry should expect relatively slow, incremental progress. Commercial and financial market conditions may influence cost changes more than technology development in the near term, he said.

No AWEA Finance & Investment Workshop would be complete without the discussion of mergers and acquisitions (M&A), especially on the heels of the announcement of Horizon Wind’s purchase by Portuguese company EDP. Panelists agreed that such M&A activity should be a wake-up call to the U.S. capital market, as so much foreign capital is coming in. Some suggested that foreign utilities are willing to take lower returns over a longer-term period of time and that the industry is likely to see more of this type of player in the U.S. market.

One other theme coming out of the workshop: investors expect to see new sources of capital in the wind energy industry as a result of climate change policies and potentially a federal RPS.

WINDPOWER 2007 Conference and Exhibition, taking place June 3-6, also will include sessions in the finance and investment arena, including “Debt & Equity: Lots of Capital,” “Put It to Work, Merchant Wind Power: Life Beyond PPAs,” and others. For more information go to www.awea.org/wp07.html . The next AWEA Finance & Investment Workshop, meanwhile, is set for Oct. 10-11 in New York City.

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Wisconsin Governor Creates Energy Office, Clmate Change Task Force

Announcing steps toward what his office called the state’s efforts to become the nation’s leader in energy independence, Wisconsin Governor Jim Doyle (D) signed executive orders creating a task force on global warming and a state energy office.

The initiatives are part of the governor’s plan to achieve the goal of getting 25% of Wisconsin’s electricity and 25% of its transportation fuels from renewable sources by 2025. Doyle signed an executive order creating the new Office of Energy Independence, which will serve as a single point of contact for citizens, businesses, local units of government, and non-governmental organizations pursuing bio development, energy efficiency, and energy independence. The office will also identify federal funding opportunities and serve as the State Energy Office, working to maintain federal designation and funding.

Doyle also signed an executive order creating a Task Force on Global Warming that will bring together “a prominent and diverse group of key Wisconsin business, industry, government, energy and environment leaders” to examine the effects of, and solutions to, global warming in Wisconsin. The task force will create a state plan of action to deliver to the governor to reduce the state’s contribution to global warming. In conjunction with the new task force, the governor directed the Department of Natural Resources, with the assistance of the Wisconsin Public Service Commission (PSC), to lead an effort to obtain a current estimate of the greenhouse gas emissions in Wisconsin.

Doyle also announced he has recently been elected to serve as chair of the Midwestern Governors Association and will hold a summit of Midwest governors in Wisconsin this fall to focus on regional efforts to achieve energy independence and fight global warming.

To keep the cost of renewable energy down and to encourage more development across the Midwest, the PSC is launching a market-driven regional effort with Minnesota, Iowa, South Dakota, North Dakota and the province of Manitoba to track and trade renewable energy credits. The Midwest Renewable Energy Tracking System will help support and stimulate a trading market to help the regional partners meet their renewable energy standards.

“With our vast agricultural and forestry resources, our strong research institutions, and our strong manufacturing base, I want the Midwest to become the Saudi Arabia of renewable energy—with Wisconsin at the forefront,” Governor Doyle said.

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Announcement: Why Attend WINDPOWER 2007? Reason #4: Location, Location, Location . . . .

There are several ways to promote your company as an industry leader or new entrant into the wind industry at WINDPOWER 2007. A few exhibit booths remain but the hall is nearly sold out so act soon if you still wish to exhibit. Check out the interactive floorplan at www.awea.org/wp07.html to see the limited booths remaining (in blue). You can reserve your booth real-time on our website which is the fastest way to secure your participation.

There are also still sponsorship opportunities including welcome bag inserts and aisle sign banners that are a perfect fit for just about any marketing budget. Visit http://www.awea.org/events/sponsorship/ for more information.

Questions on exhibiting or sponsorship? Contact Lori Rugh at lrugh@awea.org or (661) 821-2149.

 

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At this time, we are accepting applications for exhibit space at WINDPOWER 2008 Conference and Exhibition being held at the George R. Brown Convention Center in Houston, Texas from June 1 - 4, 2008.

The first round of booth sales will be conducted for any reservation submitted with payment by Friday, April 27, 2007 .  Starting on Monday, April 30, applications will be reviewed and confirmed for specific booth space based on a new point system that rewards exhibitors for continued support of AWEA. 

To reserve a booth, simply fill out the exhibitor application, indicating your first, second and third booth space choices, include a 50% deposit and return to AWEA.

For more information including a download of the Exhibitor Prospectus and Floorplan, visit www.windpowerexpo.org . Questions? Contact Lori Rugh at lrugh@awea.org or (661) 821-2149.

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• Resolve project design issues and be responsible for project coordination, budget and scope.
• Manage projects from conceptual design through development of contract documents.
• Project Management including client communication, management of technical staff, preparation of scope and fee proposals, financial management, and responsible registrant in producing construction documents.
• Market and manage large complex energy projects during alternatives analysis, preliminary engineering and/or final design phases. Serve as principal point of contact with clients.
• Overall project performance, within budget, schedule and quality expectations established by contract and industry standards.
• Provide oversight in project mobilization including establishment of project office, staffing and development of management systems.
• Manage existing workload as well as business development activities to secure future projects.
• Coordinate work between internal departments, including survey, permitting, planning, real estate, and transmission.

• Bachelor’s degree in electrical engineering, civil engineering, mechanical engineering, or related field.
• 10+ years of experience in the A/E or related field.
• Strong tactical and strategic project management capabilities.
• Must be organized, detail-oriented, and work well under tight deadlines.
• Experience working in team-based environments.
• Self-starter and initiator.
• Southwest energy industry experience is a plus
• General understanding of economic and regulatory issues helpful