EnergyBiz - September/October 2007 - (Page 43) EMBR ACING RENEWABLE S EnErgyBiz Almost half the states have renewable energy portfolio standards now. Minnesota wants 30 percent of its power from renewable sources of electricity. Is that doable? KElly We have to do it by 2020. We’ll do it. We’re a part of the Midwest Independent System Operator, MISO, up in Minnesota and we can lean on the system for peaking plants to back us up. We’re hooked right into North Dakota, which is the windiest state. South Dakota is number three. Minnesota is about eighth and Colorado’s ninth. We’re very fortunate geographically. By the end of 2007 we’ll have twice as much wind as we had at the end of 2006. EnErgyBiz EnErgyBiz Last year utilities added 2,500 megawatts of renewable power. Where do you see that figure going in coming years? stErBa Well, it’s going up significantly. KElly It’s going to take a long time before we get to something like hydrogen. It looks like it is coming. There are some very difficult ongoing discussions on Capitol Hill right now with respect to this. In the parts of Southeast where we’re located, and in the Midwest, wind is just not an option. When you look at the renewables in this country, 85 percent have been wind. The more advanced and thoughtful renewable portfolio proposals include some component of energy efficiency. BurKE In New York when they set the standards and set the goals, they included the existing hydroelectric plants. That was a significant addition to the renewable portfolio. KElly rogErs standard? Will there be a national renewable portfolio JaMes RogeRs, duKe eneRgy david R atcliffe , southeRn coMPany WilliaM MooRe , WestaR eneRgy BIGGE ST TE STS AHE AD Climate change. It is the defining issue for our industry for the next decade or two and maybe longer. gary r ainWatEr , aMErEn rogErs That’s the only thing I’ve heard of that New York regulation I want. (Laughter) EnErgyBiz Con Edison has placed a turbine in the East River. How’s that working out? BurKE The East River flows pretty fast with the tides. It’s a beginning R&D project that’s going to be expanding. The capacity factor is fairly low. What is the biggest challenge facing utilities? Climate change. It is the defining issue for our industry for the next decade or two and maybe longer. It’s the one issue out there that can change the way that we do things fundamentally. BurKE Looking at the customers and their evolving needs. We’re going to do that with advanced metering, giving them more control over use of energy. HarvEy To get the country and its citizens to recognize that they are on the cusp of an enormous increase in the cost of energy that will make any past experiences we’ve had look modest in comparison. KElly Balance is going to be one of the major problems, between the customers, the shareholders and the environment. The costs are going to be outrageous. Wr a asE Prices are the biggest hurdle. How can we convince our customers that prices are fair and reasonable? r atcliffE Maintaining reliable, affordable electricity that our customers deserve and have grown to appreciate. rogErs Climate, customers, reliability and price increases. stErBa One, Jim, one! rogErs I can’t do just one. (Laughter) But at the end of the day getting the balance right among our stakeholders is really about having a really far-reaching educational program for all of them. Education is the first step to getting a balanced outcome. stErBa The value to the customer has got to be greater than the price that they pay, which has got to be greater than the cost that we incur. Our focus has got to shift to moving more toward the value side. We know price is going up. EnErgyBiz r ainWatEr EnErgyBiz last word. Bill, as the newest CEO at the table, you get the MoorE The environment is affecting all of our decisions going forward. We need to be nimble and flexible. We have to make decisions for the long term that help us get to where we need to be going forward. We’re going to be flexible and take advantage of what comes along. 44 E n E rgyB i z September/October 2007
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