Utility officials say shift away from coal will be gradual

A trio of Wisconsin utility officials agreed the state will see a shift from coal as its primary energy source, although that move might come slower than some might like.

The panelists spoke in Madison at RENEW Wisconsin’s fifth annual Renewable Energy Policy Summit in a talk called “Shaping the Utility of the Future.” And the future, the three agreed, will consist of a broader mix of energy sources, including renewable ones.

Brian Rude, a former legislator now vice president of external and member relations at Dairyland Power, noted his utility has already increased its use of renewables from less than 1 percent in 2000 to 12.5 percent in 2014.

“Our view of the future is we’re going to see a lot more renewables coming,” Rude said, getting applause from the audience.

Interest in renewables among consumers will continue to increase, said Kevin Westhuis, the utility director for the western Wisconsin city of River Falls. The utility ranks in the top 10 in the country in green power sales as a percentage of total retail electricity sales, according to the U.S. Department of Energy.

But an increase in renewables won’t only result from increased consumer demand or regulations limiting carbon emissions, the panelists said. The improved technology and decreasing costs of renewable energy sources will also play a role.

“Those prices really are becoming quite competitive, so we want to take advantage of that and deliver that for our consumers,” said Deb Erwin, Xcel Energy’s manager of regulatory policy for Wisconsin and Michigan.

Several audience members asked whether strengthening the state’s Renewable Portfolio Standard could also improve the picture. But Erwin and Rude were skeptical, saying it won’t have as big of an impact as when it was implemented.

“We’re pacing ahead of it, and I don’t think that it would play the same role as in the past in terms of inspiring [utilities] because, at least for us, we’re going to go there whether we have an RPS or not,” Rude said.

What would have a big impact, though, is furthering conservation programs in the state, the panelists agreed, with Westhuis saying his small staff has seen great results.

Yet utilities will face some challenges along the way, the panelists said. Xcel Energy, for example, has several coal plants and nuclear plants operating that are “still good for a while” and would be expensive to abandon, Erwin said.

Another challenge is effectively using biomass, Rude said, noting his utility has struggled with taking advantage of that resource. He called on legislators to increase funding for UW research.

“My plea to policy makers here in Wisconsin has been that Wisconsin has a lot of promise on biomass, and a lot of need for it,” Rude said. “We need more research and development on how we can do that better and more efficiently.”

By Polo Rocha,
WisBusiness.com