Business Meeting #16

June 30, 1998
Sioux Falls, South Dakota

The NWCC held its Spring 1998 Business Meeting in Sioux Falls, SD on June 30, 1998 to discuss activities, review products, and develop strategies. The meeting was attended by 43 individuals (see Appendix A1), including 29 Committee members, alternates, consultants and staff.

The following lists next steps identified at the meeting and briefly summarizes specific actions taken and highlights of the discussion. Please provide any comments or concerns about this report to Heather by Friday, August 28 before a finalized version is circulated to non-member participants and posted publicly on NWCC’s website.

• Continue working with local stakeholders in selected regions to develop and implement tailored outreach strategies to support wind policy and sustainable market development;

• Hold Distributed Workgroup meeting in September to review research results and draft report, full Committee review in October;

• Review and reach consensus on Green Power Papers, Transmission Phase II report, and  State Policy Options analysis in August;

• Develop scope of work for Green Power Project Phase II and Transmission Phase III, Workgroup members discuss during August/September conference calls;

• Communicate and coordinate with the Renewable Energy Alliance, Interstate Renewable Energy Council, and Renewable Energy Policy Project to maximize synergies and avoid duplication of efforts;

• Determine process for reaching consensus on Avian Metrics Document, possible Avian Workgroup Meeting in September/October;

• Work with regional stakeholders to plan Rocky Mountain Avian Workshop, Wind Issues Forum, and Business Meeting #17, including an informal evening session for dialogue on Wind Commercialization scenarios;

• Hold Steering Committee conference call in August/September to reach recommendations on outstanding business items and ongoing operations.

Overview of NWCC Activities
Heather Rhoads, NWCC Outreach Coordinator

After introductions and review of the agenda, Heather reported on current NWCC activities and regional outreach efforts. In addition to disseminating products at "magic moment" opportunities, initiatives have been proposed and scoped out for the four focus regions:

• Upper Midwest (Dakotas, NE, IA, WI, MN)
  – Wind resource assessment coordination

• New England (ME, VT, NH, MA, NY, RI)
  – Siting & transmission issue briefings, community-based marketing support

• Rocky Mountains (Colorado, Wyoming)
  – Avian workshop, landowner/consumer outreach

• Southwest (Texas, Oklahoma, New Mexico)
  – Interconnection/net metering information

John Dunlop of AWEA gave a synopsis of current efforts in the Midwest to establish a central repository for uniform wind resource data, potentially through the High Plains Climate Center (see Appendices B1 and B2). The NWCC’s role will be to serve as a catalyst and help build communication networks; NWCC will not be responsible for housing the data.

• Encourage use of U-WRAP methods for data collection and analysis, disseminate and post handbook on UWIG website;

• Post updated NREL inventory of wind data (see Appendix B3 and B4) and UCS wind maps on web, compile links of websites with wind resource data on NWCC website;

• Establish and encourage the use of a new regional list server AWEA-plains-WRAP@igc.org, post stakeholder contact info in password area to facilitate communication and coordination; and

• Arrange regional follow-up conference call in July/August to finalize funding proposal.

Distributed Wind Research Project
Brian Parsons, NREL, Joe Cohen, PERI, & Tom Wind, WUC

Brian Parsons gave a brief introduction of the joint NWCC/NREL Distributed Wind Research Project, followed by an overview and discussion led by Joe Cohen and Tom Wind (see Appendix C). The consultant team recently traveled to Europe to gather data on European policies and programs which support development of wind in small clusters, as opposed to the large wind farms that are common in California. Members pointed out since transmission and distribution systems differ throughout the U.S., the most important aspect of the case study evaluation is the methodology to screen other areas, not extrapolating results.

• Move chapter 2 before chapter 1 (general info before highly technical material);

• Top priority should be determining how to maintain power quality and reliability – in Germany and Denmark system reinforcements are supported by project returns and highly subsidized;

• Work with PV community and Mass electric staff on interconnection/IEEE standards;

• Green marketing project can benefit from cross-fertilization, European ownership models; and

• Final summary chapter should review best practices, lessons learned, and checklist for decision-makers; report should clearly identify factors that led to dispersed development in Europe and lay framework for discussion about how to translate that approach in the U.S.

Timeline for completion: Initial Draft -- August; Workgroup Review Meeting – September; Full Committee Final Review -- October ‘98.

Green Marketing
Ed Holt, Holt & Associates, Ryan Wiser, LBNL, & Ron Lehr, NARUC

Ed Holt and Ryan Wiser presented two papers on green power markets for wind (Appendices D1, D2 & D3). The first, to be retitled "Understanding Consumer Demand for Green Power," profiles customers and examines demand. Committee members commended the authors for effectively "capturing a universe" in 20 pages with a quick turn-around and laying a critical foundation for work to follow, as well as responding to comments on the first draft. One member suggested including an overview of state education programs; others agreed the subject deserves deeper consideration but perhaps future work. Customer segment labels on S-curve will be removed and EPRI terms clearly attributed.

The second paper, recommended to be retitled "New Markets for Wind Power: Supplier Response," discusses the green power "value chain" and development risk in competitive markets. A few members found the concepts difficult to understand and less accessible than the first paper; others agreed the content was complex but the value chain discussion is integral to explaining how the wind supply industry needs to respond to new players and risks.

Ron Lehr presented several ideas for incremental Phase II follow-on work (Appendix D4), and advised against attempting to cover the entire spectrum. Others agreed that the page-limit and fast timeframe model is best for this highly dynamic field. Top recommendations included concentrating analysis on how corporations and institutional "non-residential segments" fit into the picture (exploring motivations and case studies) and reducing customer acquisition costs (community-based marketing, public leadership, customer aggregation, permitting process).

From the preliminary Phase II outline released with the RFP last August (see Appendix D5), members identified items 1E, Markets-A and 2J as key questions to explore, and suggested the new Renewable Energy Alliance be consulted about marketing vs. mandates. The report should identify what works and what doesn’t, benchmarks for quantifying successful green markets, and how wind energy can eventually become competitive so it does not require legislative support indefinitely. The Renewable Energy Policy Project may be developing another concept paper on green marketing, so NWCC members should maintain close dialogue with their board.

Update: Green Power Workgroup members held a conference call July 21 to advise consultants on making "value chain" concept more user-friendly; editor has provided suggestions to refine structure.

Transmission Project
Randy Swisher, AWEA

Randy noted that in each of the regional forums, getting wind to market has been raised as a critical issue as it is an intermittent, lower-capacity, geography-dependent resource. The Phase I Scoping Paper, "Wind Energy System Operation and Transmission Issues Related to Restructuring," has been finalized (Appendix E1); thanks to Kevin Porter of NREL for developing an addendum for updates and to address EEI’s concerns. Kevin is also working to incorporate 11 sets of substantive comments received on the Phase II report, "Conclusions and Recommendations Concerning Wind Generation Under Open Access Transmission Tariffs and Restructured Electric Markets"; (Appendix E2) which examines five issues in greater depth:

• bidding protocols,
• pancaking,
• ancillary services,
• "pay-for-what-you-use" energy tariffs, and
• secondary markets for transmission.

Several NWCC members and interested individuals volunteered to help move the Phase II report to final, if possible for September publication. A proposal Phase III work will likely include an in-depth review of FERC pro forma tariffs as well as the operational and pricing policies of a specific ISO.

Avian Activities
Abby Arnold, RESOLVE

The NWCC remains the focal point for coordinating much of the research being conducted on wind energy and birds throughout the country and a primary catalyst for dialogue on the issue. Abby Arnold presented the key outcomes of the National Avian/Wind Power Planning Meeting III held May 27-29 in San Diego (Appendix F); researchers provided reflections on various topics (nocturnal info, risk assessment, behaviors that lead to collisions, etc.) but not definitive conclusions. Official conference proceedings are in process and will be circulated for review.

The draft Avian research protocol, "Standard Metrics and Methods for Monitoring Avian/Wind Energy Interactions," was circulated to more than 100 stakeholders in March; concerns have been raised about the non-technical part of the document. The authors and editor are working to respond to comments submitted and will present a revised version at the Fall NWCC Business Meeting. A public workshop on Avian-Wind Interaction issues co-sponsored by Colorado Governor Roy Romer and local utilities has been scheduled for October 26 in Ft. Collins, CO.

New Commercialization Dialogue
Ron Lehr, NARUC, Mark McGree, NSP

Ron reviewed NWCC’s history with the topic of commercialization and led a 45 minute discussion on what scenarios leading to a self-sustaining commercial market for wind power the Committee could explore (Appendix G). Mark explained his perspective on sustainability; if subsidies are continued, wind will never function in a free market. NWCC members agreed to undertake a joint fact-finding effort to clarify assumptions behind targets, and hold a 2-3 hour "relaxed" evening dialogue session at the October meeting on the subject.

State Policy Options Report
Ryan Wiser, LBNL, Heather Rhoads, NWCC

Ryan provided a refresher on the NWCC’s State Policy Options analysis (Appendix H1), and pointed out two things it isn’t: it does not recommend whether any of the 26 policies described should be supported, or which policies any particular state should adopt. It is designed to be an encyclopedia-type reference, a comprehensive review and analysis of the strengths and weaknesses of a broad range of renewable energy policy options available to state decision-makers. The project was launched more than 2 years ago, and over the past several months it has been heavily edited and prefaced by a strong Executive Summary. The process is close to conclusion as members with objections have been accommodated. However, some sections, such as on green pricing and surcharges, are already getting out-of-date; Ryan agreed to contract for 16 additional hours of labor to make updates before publication.

Update: Revisions to address NSP’s remaining concerns on the Executive Summary, Property Tax and Net Metering sections were completed in July (Appendix H2). Publication by September, in time for the annual NASEO conference, is anticipated.

Luncheon Dialogue: Interstate Cooperation on Renewables Implementation
Ed Holt, H&A

Ed Holt reviewed a presentation he prepared for the Spring 1998 Interstate Renewable Energy Council meeting (Appendix I) to launch a discussion about how NWCC can engage in ongoing efforts and how its mission can intersect with IREC’s. Members showed strong interest in closer cooperation with IREC and building relationships with their state and local government network (see www.irecusa.org), but expressed discomfort about the invitation for Heather Rhoads to serve as chair of their new Wind Committee. While IREC steers clear of activities that could be construed as "lobbying," it is perceived as an advocacy group as it develops and disseminates tools to foster renewable energy use.

NWCC members agreed to:

• Help recruit a new IREC Wind Committee chair and active participants to bridge interests and activities of both organizations; and

• Work with IREC as an information clearinghouse, on public education programs, and on joint implementation projects.

NWCC Business Items
Abby Arnold and Heather Rhoads, RESOLVE

Abby presented proposed revisions to the NWCC’s consensus "Process Groundrules" (Appendix J1), and noted that front-end involvement as projects are emerging is most efficient and helps reduce burdensome time required to express concerns downstream. A member suggested replacing the list of outreach target communities and Steering Committee sector composition with the phrase "each of the NWCC constituent groups"; however a participant pointed out that this would remove the only reference to Tribes. Due to an editing error, the member responsibilities section was unclear; a corrected version will be re-circulated to all members for final signoff.

New members who have joined the NWCC during 1998, including Ward Marshall of CSW and Kim Christianson of the North Dakota Energy Office, were welcomed (see Appendix J2). New representatives may be selected from Tribal, agricultural/landowner, and educational/academic sectors.

• Catalyze more targeted outreach/ongoing research & roundtable dialogues (NCCEI model)

• Encourage regional stakeholder initiatives

• Develop best practices/guidelines, best practices/pro forma approach for 2-20 MW projects

• Convene dispute resolution sessions between constituents

• Work to standardize easement policies

• Hold regional forums in New Mexico, Northwest, Northeast

NWCC’s website and electronic communication continue to grow more sophisticated. Computer consultant Randy Martin offered to coach and help members troubleshoot use of email and the password-protected area; he is developing a "new look" for the site based on a modified structure (see beta site www.nationalwind.org/nwcc2, Appendix K1). Due to questions about what will be considered appropriate use of federal funds in FY’99, discussion about NWCC’s brochure/outreach folder was deferred to the next Steering Committee conference call (Appendix K2). A member recommended that RESOLVE and the NWCC work to diversify its funding base.

Sector/Regional Highlights: Expertise, Information, and Resource Sharing

Randy Swisher reported that the number of cosponsors to extend the Production Tax Credit continues to grow; currently 75 members of Congress and a majority of the Ways & Means Committee have endorsed the language.

NASEO has updated their survey of state wind activities (Appendix L1); updates and corrections should be directed to Dewayne Johnson at the Iowa DNR (515-281-7018, djohnso@max.state.ia.us).

The Union of Concerned Scientists is preparing an analysis of various RPS proposals in federal bills (see comparison matrix, Appendix L2) to determine what level will be self-sustaining; report on cost impacts model will be released in the fall.

Reports from the Utility and Power Marketers Sectors were handed out (Appendices L3 and L4). All sectors are encouraged to post ongoing updates and announcements on NWCC’s email conference (nwcc-general@igc.org).

Business Meeting #16

Appendices
(under construction: new files added daily, check back)

Hard copies are available from RESOLVE upon request.

Follow-up on Meeting

A1 NWCC Business Meeting #16 Participants List
A2 Upper Midwest Wind Issues Forum and NWCC Plenary Meeting
        #16 Participants Contact Directory

B1 Midwest WRAP conference call summary – consensus,
        recommendation, and action items
B2 Midwest wind resource assessment initiative draft discussion memo
        with comments
B3 NREL inventory of available U.S. wind measurement data
B4 AWEA’s survey of Government and Utility Wind Monitoring Projects
        in the Northern Great Plains Region