Four weeks. 32 men. 39 co-ops. Three Guatemalan villages.

No amount of training or experience could have prepared the electric co-op crews from Indiana for what they would face in Guatemala this summer.  Spend a few moments as they re-live their journey, and you’ll quickly grasp why this ‘Band of Brothers’ now sees the world through different eyes.

Chris O’Malley, Indiana Business Journal

December 1, 2012

Greg Wagoner sat in the sanctum sanctorum of Wabash Valley Power Association: a conference table encircled by framed photos of electric generating plants from which the co-op generates or buys its power.

Staring directly at him was an Architectural Digest-worthy photo of Wabash River Unit 1. Bought by the cooperative six years ago, the Terre Haute facility converts coal to synthetic gas that’s burned to generate up to 262 megawatts at any given time.

It’s not your grandfather’s coal-fired facility, but it’s still coal.

Thus from Wagoner’s lips—an utterance of unspeakable blasphemy against the bituminous coal god venerated by Indiana’s electric utilities:

“I’ll take 300 megawatts from [cow manure] digesters, any day … Nothing against that,” of course, he said, nodding his head at the photo of Wabash Unit 1.

At some Indiana utilities, such a heretic would be cast out, defrocked from the religion of relatively low-cost coal.

But the vice president of business development at Wabash Valley has the blessing of his board, which has been committed to reducing coal dependence over the last five years.

One driver: tightening federal pollution standards requiring expensive coal-plant upgrades. Plants that convert coal to synthetic gas alleviate some of that expense, but the plants themselves are costly, thus the focus on renewables.

Indianapolis-based Wabash is also mindful of renewable generation’s potential to benefit the rural communities that use its power—some 380,000 homes, farms, businesses and industrial plants.

Wagoner just returned from a tour of Germany, where rural areas now sport solar panels, wind turbines and animal-waste digesters throughout the countryside.

Germany has enacted a federal renewable energy policy that’s resulted in more decentralized power generation—and an estimated 20 percent output from renewables. Upwards of 365,000 jobs have been linked to such generation.

Wagoner

Wagoner traipsed through German farms, where animal waste is fermented into methane. He visited Germany’s parliament, where he spoke with political leaders about that country’s successes in renewable power.

But the trip wasn’t a baptism into renewable power for Wagoner or for Wabash Valley Power, which for years has had perhaps the most eclectic source of renewable power sources in the state.

Small steps

In 2004, the co-op that provides power to 26 distribution systems in Indiana, Illinois, Missouri and Ohio began making electricity from landfill gas.

Last August, it dedicated the 14th such facility, this one at Waste Management of Indiana’s Twin Bridges Recycling and Disposal facility, in Danville.

Two, 20-cylinder engines made at Caterpillar’s engine plant in Lafayette burn enough Twin Bridges landfill methane to generate about 3 megawatts.

In all, Wabash has the capacity to produce 43 megawatts of landfill gas generation.

In 2006, Wabash started harvesting methane from dairy farms, specifically from Fair Oaks Farms in Jasper County. Animal waste is placed into digesting vessels, with some germs added to accelerate decomposition. In 30 days or so—voila!

Wabash has power purchase agreements for 5.3 megawatts of power from dairy digesters.

If this doesn’t sound like your typical power company, it’s not. Try to name another utility around here where executives use power equivalent formulas such as: “3,500 head of cattle = 1 megawatt.”

That’s enough power for roughly 1,000 homes.

Despite such unconventional generation, power produced from animal waste and landfill methane—along with 39.4 megawatts available from wind generated in Iowa and Illinois—contributes only 5 percent to 6 percent of Wabash’s overall capacity.

Still, that total has helped achieve what the power co-op said is a dramatic reduction in its reliance on coal: to 54 percent of the fuel supply from 95 percent five years ago.

The goal for 2013 is to reduce coal’s share to 50 percent.

Some of Wabash’s non-coal generation is not from renewable power. For example, about 6 percent of its power comes from nuclear energy produced in Michigan. Old-timers will recall that Wabash Valley was committed to buying power from the controversial Marble Hill Nuclear Power Plant downstate, which then-PSI-Energy canceled in 1984 after cost overruns.

Natural gas is another source of non-coal fuel, and it represents a share that’s been growing as the price of natural gas has plummeted.

“Natural gas has saved our lunch,” Wagoner said.

Love from environmentalists

“Wabash Valley Power is less coal-heavy than other Indiana utilities, and it’s good they are planning to move forward by adding [additional] diversity to the mix, instead of moving the wrong direction like [Indianapolis Power & Light],” said Megan Anderson, a “Beyond Coal” campaign field organizer for the Sierra Club.

That a utility’s fuel of choice is becoming more of an issue was on display Nov. 28, when the Sierra Club led a protest at IPL’s downtown headquarters. The group criticized IPL’s plans to spend $600 million on upgrades at its coal plants over the next decade, money Sierra Club would like to see spent on adding wind and other forms of renewable generation, instead.

IPL points out that it already purchases power from wind turbines and is growing its renewable-energy portfolio.

Waste from cattle at Fair Oaks Farms makes
electricity.
(Photo courtesy of Wabash Valley Power Association)

“IPL is now one of the top 20 utilities in the nation for wind energy with just over 300 megawatts of wind generation available, equal to about 7 percent of our total generation,” IPL said in a statement.

IPL also said it is likely to be “the leader in the Midwest” related to solar-sourced power, assuming projects proposed by solar farm developers are completed.

While IPL has continued to diversify its generation portfolio, it’s also proposed replacing some of its coal units with cleaner-burning natural gas turbines.

“Having highly reliable base load generation is imperative and coal and gas continue to be the best sources for this type of generation,” the company said.

Natural gas is relatively cheap at the moment, thanks in part to extraction through shale fracking that’s opened up vast amounts of natural gas.

Environmental groups haven’t warmed up to fracking, however, which they say can contaminate aquifers and cause other damage.

Anderson said it would also benefit ratepayers of Wabash and other utilities to take advantage of additional wind energy, as costs have fallen, which would create additional jobs as the industry grows.

But Wagoner, who started his utility career in 1981 with PSI Energy (now Duke Energy), will be the first to tell you renewable forms of energy can be more costly, at least initially.

In fact, during his trip to Germany as part of the “25 by ’25 Alliance,” a group seeking to meet 25 percent of the U.S. energy need from renewables by 2025, he learned that Germany’s much-heralded national renewable program carries a cost for residential ratepayers.

In the United States, electricity costs about 12 cents a kilowatt hour, compared with Germany’s 36 cents.

“Here’s where you have to be careful what you wish for,” Wagoner said. “It doesn’t come cheap.”

Renewable’s long-term costs

He’s buoyed by Germany’s example, nonetheless.

For one thing, the European country set up a system in which generators of renewable energy are assured of receiving payment from utilities for their power over about 20 years. That means communities wanting to install digesters, solar panels or other such units are more likely to get banks to finance those projects.

Renewable power developers in this country often struggle to get long-term assurances from utilities that the power they generate will be purchased at attractive rates.

Perhaps Wagoner’s most significant takeaway was the realization that, once upfront capital costs are paid off—say in 10 or 20 years—renewable generation is more economical given that the cost of sunshine, wind and animal waste is zero.

In the United States, the outlook tends to be myopically focused on the first five years or so of cost, Wagoner said.

Of course, he conceded that the power cooperative has the flexibility to tinker with renewable options because it’s not under as much pressure as investor-owned utilities to provide a return to shareholders.

On the other hand, Wabash cannot afford to go full tilt into renewables, either, if only to be cost-competitive and to not excessively burden ratepayers.

Its wind power source currently has about a 30-percent premium over coal given that wind turbines generate on average only 35 percent of the time due to the intermittent nature of wind.

Animal-waste digester costs are about 10 percent higher, although he expects that to reach parity with coal over time.

So far, the best economics come from landfill gas generation, the cost of which has been offset partially by millions of dollars in federal Clean Renewable Energy Bonds used to finance the projects.

So Wabash’s strategy toward renewable energy will be to continue to incrementally add small amounts of such generation in coming years. They should be cash cows once the upfront capital costs are paid down.

“It’s still at a cost, but it’s better to do it over time and roll those things in year after year,” he said.

What’s next on the horizon?

“We believe now is the time to be looking at solar because the cost has come down so much. The fuel-cost component is zero,” Wagoner said.

Kathy Schembs Joyce, vice president of administration at Wabash, said renewable power could present economic development benefits to the communities using its power. She also noted that many corporate customers have mandates to use such power, and that some make decisions on where to locate based on renewable power availability.

Some of those customers are also scheming how to turn their waste byproducts into power that they hope Wabash might be interested in purchasing.

Wagoner remembers a call from one firm that wondered about using foam rubber as a fuel.

“There are probably two or three calls a month we get in terms of turning waste products into electricity.”

Some of the ideas leave him scratching his head, he said, noting that Wabash is not a research and development lab. But in a few years, he tells the callers, who knows? Their idea might be cost-effective.

The Wabash River Unit 1 he blasphemed earlier is safe, however, as reliable base-load generation is something neither wind nor solar can guarantee.

http://www.ibj.com/wabash-valley-power-aggressively-shifting-to-greener-alternatives/PARAMS/article/38232

Employees from Wabash Valley Power’s member cooperatives, Indiana Statewide and WVPA spent two days earlier this week learning more about the inner workings of the G&T.  The sessions included panel discussions, group activities, tours and presentations.  Pictured here, the group paused for a photo opp while touring the West Terre Haute syngas facility, sgSolutions.  Plugged In is offered two-three times each year, and is facilitated by the WVPA team of Sherry Rose, Albert Taylor and John Chambers.  If you’re interested in getting signed up for a future program, contact Sherry Rose.

The celebration marks the completion of the fourth landfill gas-to-energy plant at the Twin Bridges Recycling and Disposal Facility. With the addition of the 3.2 megawatts of power from Twin Bridges IV, the site now generates the equivalent amount of electricity to power approximately 14,000 homes.

Twin Bridges IV represents Wabash Valley Power’s 14th landfill gas-to-energy facility, each of which is located throughout the northern half of Indiana on landfills owned by Waste Management. Through an exclusive partnership, Wabash Valley Power owns the power plants, while Waste Management of Indiana supplies the landfill gas and serves as the plant operator.

“In 2007, our Board of Directors set a goal to increase our ownership of diverse fuel resources,” explained Greg Wagoner, Vice President of Business Development, Wabash Valley Power.  ”Yet while we want to be proactive in our pursuit of that goal, we remain committed to the delivery of affordable, reliable power to our member cooperatives. Our partnership with Waste Management of Indiana is instrumental in this process.”

Fuel for the Twin Bridges landfill gas-to-energy facility is derived from wastes buried in the landfill, which generate methane gas. A network of recovery wells and pipes control and collect the methane and convey it to an on-site power plant. There the gas is condensed, purified and used as fuel to drive engines that, in turn, drive electricity generators.

The engines used in this process are manufactured by Caterpillar, Inc. at its Lafayette (Ind.) Engine Center.  At Twin Bridges IV, two 20-cylinder engines burn landfill gas (methane), each of which generates 1.6 megawatts of electricity.  The facility is designed to be scalable, with the ability to grow to four engines as the landfill’s gas generation increases in future years.

“Our goal is to operate our landfill facilities in a way that meets the highest environmental standards,” said Brad Eisenhart, Senior District Manager for Waste Management of Indiana.  ”The Twin Bridges landfill and gas-to-energy facilities do that and more by managing waste gases and channeling them to generate energy. This benefits the community in way that makes our people and company very proud.”

Waste Management has established as one of its sustainability goals doubling its waste-based energy production by the year 2020, he said.  Achieving this goal would mean its facilities across North America generate power to serve more than 2 million homes.

As part of a major expansion in 1993, Waste Management committed to make Twin Bridges an environmental and a recreational asset for the Danville community.  The facility includes 975 acres with 237 acres permitted for solid waste disposal.  Waste Management developed the facility to serve as an important local recreational area offering the community soccer and girls softball fields, an 18-hole golf course, a trap and skeet range, an archery range and other outdoor amenities.  Twin Bridges received certifications by the Wildlife Habitat Council as a Corporate Lands for Learning and Wildlife at Work facility.

Waste Management and Wabash Valley Power partner on 14 landfill gas-to-energy facilities in Cass, Elkhart, Hendricks, Jay, Lake, La Porte, St. Joseph, and White counties.

ABOUT WASTE MANAGEMENT

Waste Management, Inc., based in Houston, Texas, is the leading provider of comprehensive waste management services in North America. Through its subsidiaries, the company provides collection, transfer, recycling and resource recovery, and disposal services. It is also a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States. The company’s customers include residential, commercial, industrial, and municipal customers throughout North America. To learn more information about Waste Management visit www.wm.com orwww.thinkgreen.com.

ABOUT WABASH VALLEY POWER ASSOCIATION

Wabash Valley Power Association (WVPA) is a generation and transmission (G&T) cooperative based in Indianapolis. The G&T provides wholesale electricity to 26 distribution systems in Indiana, Illinois, Missouri and Ohio. Collectively, these distribution cooperatives supply electricity to more than 380,000 homes, farms, businesses and industries. To learn more, visit www.wvpa.com.

ABOUT HENDRICKS POWER COOPERATIVE

Hendricks Power Cooperative provides electricity and energy services to over 27,000 customers in west central Indiana. Formed in 1936, the cooperative is owned and controlled by the members they serve. As an electric cooperative, Hendricks Power is part of the nation’s largest energy network which includes 1,000 electric cooperatives, public power districts, power supply generation and transmission cooperatives, statewide associations, regional trade and service associations, supply and manufacturing cooperatives, data processing cooperatives and employee credit unions. For more information regarding Hendricks Power Cooperative and other related services, please visit www.hendrickspower.com

Today’s decision by the Federal Appeals Court upholding EPA regulation of greenhouse gases, while disappointing, is not unexpected.  Years ago the dean of the U.S. House of Representatives, John Dingell, predicted that the legislature’s reluctance to act on this issue would lead to “a glorious mess” of regulatory activity.  Today’s Circuit Court ruling is yet another step down that path and should serve as a wake-up call to Congress – America needs an updated Clean Air Act for the 21^st Century not a “glorious mess” of regulation and litigation.

The National Rural Electric Cooperative Association is the national service organization that represents the nation’s more than 900 private, not-for-profit, consumer-owned electric cooperatives, which provide service to 42 million people in 47 states.

Electric cooperatives across the country are reaching out to their members and the public, as the Environmental Protection Agency (EPA) seeks to extend its regulatory reach and eliminate coal as a fuel source for power plants.

The EPA, via its proposed New Source Performance Standard (NSPS) for greenhouse gases (GHG), would make it economically impossible for utilities to use coal, one of our country’s most available and affordable fuel sources.

Wabash Valley Power Association and our 26 member cooperatives have worked for several years to reduce our dependence on coal.  In fact, in 2012 we’re pleased to report that only 54% of the energy we’re supplying is from coal, down from previous highs of nearly 90%.  However, despite our aggressive steps to increase our percentage of other fuels, such as natural gas and renewable sources, further reductions in coal will be significantly more difficult.

Carbon capture and storage technologies, on paper at least, are allowed by the EPA, and would allow coal as a viable fuel in the future.  However, the reality is that these technologies are not yet commercially available or affordable.  As such, America’s utilities would be forced to turn away from the highly affordable and available coal, while reducing our nation’s fuel diversity.

Finally, we have additional concerns that the EPA will eventually extend an NSPS to existing units, as opposed to focusing on planned units.

We urge co-op members and anyone concerned about the affordability, reliability and availability of electricity to let the EPA know you oppose this proposed GHG standard for power plants.  Click here to visit our Take Action Network, where our simple online process will walk you through the steps to generate your letter to both the EPA and your legislators. Your voice is important; please act today!

NRECA CEO Glenn English issues challenge to CONNECT 2012 attendees

NRECA CEO Glenn English addressed electric cooperative communicators at last week’s CONNECT Conference, calling them “the frontline soldiers in the fight to gain the grassroots support of members.”

Speaking at the May 16 opening session, English stressed to the attendees, “you hold the future of this program in your hands.”  He went on to add that, in order to ensure its continued success, they must make members aware that co-ops “are unique, and special, and different.”

“We’ve got to make sure that they understand that we have their interests at heart,” English said.  ”We’re there to benefit them.  That’s our whole job.”

In a business that focuses on delivering reliable, affordable electricity, it’s sometimes easy to forget that the Cooperative Principles require us to do even more.

Noting that Cooperative Principle No. 5 is Education, Training and Information, English reminded the group that, ”according to the Cooperative Principles, every cooperative has the responsibility to keep the membership informed.”

And while some managers are reluctant to take on this task, English noted that the impression members have of the co-op is largely formed by its leaders.

“So it is extremely important that the manager be engaged and involved,” he said.  ”It is the communicator’s job to make sure that the manager has opportunities to tell the story, to carry out his responsbility to Cooperative Principle No. 5, to inform and educate the membership – not just once a year, but as a daily event, constantly looking for ways in which we can engage the membership.”

English warned that there’s currently a “disconnect” between what America’s electric co-ops are doing and what their 42 million members are aware of.  He urged communicators to close that gap – noting that there are other forces “working contrary” to member interests.

“In order for us to have the kind of potential that that 42 million has in the way of political strength, they’ve got to understand about their co-op,” he said.

English acknowledged that it won’t be easy.  ”We have a very cynical public out there.  We’ve got a lot of folks that have lost faith in a whole lot of institutions,” he said.

It’s a widely held precept that the veterans who fought for and preserved our freedoms during World War II are our ‘greatest generation.’ And as a volunteer with the Greater Lafayette Area’s inaugural Honor Flight earlier this week, I feel as though I’ve witnessed moments that can never be re-created.

On Monday morning at 6 am, 81 veterans of WWII, along with their Honor Flight Guardians for the day, assembled in a hangar at the Purdue Regional Airport.  With the sounds of the Purdue band helping to energize the group, breakfast was served, IDs were checked and everyone passed the security checkpoint.  And then the moment that had been nearly a year in the making arrived … it was time to board the plane and take off for a whirlwind, day-long trip to Washington, DC.  As the Miami Air charter, a Boeing 737, lifted off the ground, the plane erupted in applause.

For most of the veterans, the trip marked their first visit to the memorial that opened in 2004 to honor their service and untold sacrifices during and after WWII.  For some, it was also their first travel by air.  For all, it was a day filled with great emotion.

The Honor Flight Network’s mission is to transport America’s veterans to Washington, D.C. to visit those memorials dedicated to honor their service and sacrifices.  The trip is fully funded, through private donations and fundraising, with no cost to the veterans.

Four of Wabash Valley Power’s member cooperatives supported the flight by covering the cost of a veteran, and in some cases, a guardian.  Jasper, Kankakee Valley, Parke and Warren County REMCs publicized the program through their newletters and selected a member to send on the trip.

Greater Lafayette Honor Flight has plans to send two additional groups to DC yet this year.  The trip includes visits to the WWII Memorial, the Lincoln, Vietnam and Korean Memorials,  Iwo Jima and Arlington National Cemetery.

Wabash Valley Power’s member cooperatives are located within six Honor Flight hubs:  Greater Lafayette, Northeast Indiana, Indy Area, Land of Lincoln, Central Illinois and Greater St. Louis.  Monday’s flight represents the first of 2012, with all hubs planning one or more flights throughout the spring and fall.