Business Meeting #22

Meeting Summary and Action Items

July 25, 2000

RESOLVE, Inc.
Manhattan Holiday Inn Holidome
Manhattan, KS 66502
PDF Version - 48KB

WELCOME AND INTRODUCTIONS

Facilitators: Abby Arnold and Gabe Petlin, RESOLVE

After introductions and adoption of the agenda, A. Arnold reviewed the purpose of meeting:

• Review transmission work products and activities
• Hold an informal follow-up discussion to Kansas Wind Energy 2000 Conference and discuss issues related to distributed and large-scale wind energy development.
• Review 2000-2001 wind calendar and schedule NWCC meetings for 2001
• Hear updates on various NWCC projects

Refer to Attachment A for the meeting agenda. Also note that there is a participants list from this meeting included at the end of this summary.

FUTURE NWCC MEETING DATES

NWCC Business Meetings

September 21, 2000 Lincoln, NE
December 7, 2000 Seattle, WA (hold December 6th for workgroup meetings)
May 10, 2001 Pennsylvania or New York, proposed
September 26, 2001 Montana, proposed
December 6, 2001 New Mexico, proposed

Action: The NWCC will communicate with Northwest stakeholders and Larry Flowers of Wind Powering America to confirm optimal location and potential synergy opportunities associated with the meetings. [Update: the December 7, 2000 meeting will be held in Seattle as proposed. Hold December 6, 2000 for potential workgroup meetings prior to the Business Meeting. Discussions are still underway with Wind Powering America regarding meeting dates in 2001. We expect to confirm this calendar definitively at the September 21, 2000 NWCC Business Meeting.]

NWCC Stakeholder Outreach Wind Forums

September 20, 2000 Nebraska Wind Forum, Lincoln, NE
October 18-19, 2000 South Dakota Wind Forum, Brookings, SD
May 9, 2001 Pennsylvania or New York Wind Forum (tentative)

NWCC Expert Workshops

Members discussed possible topics for an NWCC two-day expert workshop. This workshop would be held in addition to a proposed annual Transmission Workshop. Meeting attendees suggested the following ideas:

• Discussion of disclosure for energy sources as an agenda topic at the Transmission Forum.
• Combining a National Workshop on Credit Trading and Wind Energy with the Transmission Workshop.
• Combining Distributed Wind Power Discussions with a Wind Energy and Economic Development Impacts Workshop. Suggested agenda items include questions about infrastructure for distributed wind as well as risk related to both gas and wind power developments.

TRANSMISSION: REVIEW OF WORK PRODUCTS AND ACTIVITIES

Presentation of Revised Case Study Conclusions Summary
Ed DeMeo, Renewable Energy Consulting Services, Inc.
[Refer to Attachment B 'The NWCC Transmission Case Studies: Opportunities for Wind in Regional Transmission Organization (RTO) Development Processes' and Attachment C the corresponding slide presentation titled 'NWCC Transmission Case Studies in the context of the RTO Formation Process']

Ed DeMeo reported on the development of the Transmission Case Study Conclusions Summary and presented the revised summary. The Conclusions Summary developed from feedback from the March 2000 NWCC Transmission Workshop and Business Meeting. Mr. DeMeo noted that the purpose of the Conclusions Summary is to gleen insight from the three completed NWCC case studies to create a summary document that relates the key wind transmission issues identified in the case studies to the RTO formation process. The intent is for the Conclusions Summary to become a consensus product of the NWCC and for the Case Studies to remain as resource documents that won't go through the full consensus process.

The meeting attendees reviewed the Conclusions Summary and offered the following ideas:

• The education function would be well served by collaboration with many groups, rather than RTO's solely undertaking this function.
• One suggestion with regard to education is based on the work that ERCOT is doing in Texas. Customers receive a disclosure from ERCOT in their bill that informs them what portion of the bill is from a renewable energy source.

Action: The NWCC will facilitate the passage of the Conclusions Summary through the entire NWCC consensus process. Ed DeMeo will incorporate the revisions base on comments from the meeting into the summary and the final document is expected to be complete in August, 2000. [Update: the document was approved by the Transmission Work Group on 8/17/00 and distributed to the entire NWCC as a consensus document. As of 9/6/00 the document is a consensus product and posted on NWCC's website along with the three Case Studies.]

Report on wind-related RTO outreach activities

Summary of AWEA RTO Activities
John Dunlop, AWEA
[Refer to Attachment D 'Fair Transmission Access for Wind: A Brief Discussion of Priority Issues']

Mr. Dunlop presented on the above mentioned topic identifying priority transmission issues faced by wind power in the United States and proposing solutions for each of them. The following topics were briefly discussed:

• The Allocation of Embedded Costs of Transmission Facilities
• Schedule Deviation Policies
• Elimination of Rate Pancaking
• The Equitable Allocation of Congested Capacity among Competing Users
• Nondiscriminatory Interconnection of Wind Generation Facilities

Upon completion of Mr. Dunlop's presentation the following comments arose during discussion:

• Some of AWEA's next steps include helping guide the formation of the RTO's and continuing discussions to ensure that the interests of the wind community are heard.
• AWEA has hired two consultants, Chris Ellison and David Wooley, to participate in RTO meetings.
• Education of transmission issues is important, but demand-side management issues are another way to support wind development.
• Historically the transmission system was developed to carry traditional generation (coal, hydro and later nuclear) from source to load. Currently the wind industry is trying to gain access to the transmission system as if it were a highway system open to all, which it is not. It is a very complex process to try to change from the old school to the new and the wind industry still faces obstacles.

Summary of NWCC RTO activities and upcoming RTO meetings
Ron Lehr, National Association of Regulatory Utility Commissioners
[Refer to Attachment E 'RTO Briefing #1' and Attachment F 'RTO Calendar #1']

Ron Lehr gave an overview of NWCC's RTO Briefing #1 and RTO Calendar #1, two monthly work products produced by NWCC transmission consultants CSGServices. These documents summarize major issues taking place in the Midwest ISO, RTO West, and ERCOT-ISO and outline upcoming meetings and events related to the RTO formation process.

• Predominant issues for wind in the Midwest ISO (MISO) involve: 1) MISO's ongoing merger with MAPP ISO and its proposed merger with Alliance ISO, and 2) the development of a for-profit ITC by several MISO members.
• Similar to the Midwest, a major issues in RTO West is governance. These issues involve the level of public participation in RTO West development efforts, the proposed formation of an ITC by all but two RTO West utilities, and a proposal to include ITC representation on the RTO West board of directors in proportion with the ITC's contribution of transmission facilities to the proposed RTO West system.
• ERCOT-ISO is relatively far along in developing policies that affect wind, and most wind interests perceive the existing policies as fair. RTO development activities within ERCOT-ISO are presently focused on other issues that will have only incidental effects on wind.

Ron Lehr made these additional points:

• To be successful, wind must overcome three challenges: 1) wind is new; 2) wind is remote; and 3) wind is intermittent.
• Another challenge faced by wind and other newer forms of energy in the RTO formation process is some transmission-owning utilities using their transmission assets to benefit their own generation a the expense of new players.

For a more detailed description of these issues and other issues please refer to the RTO briefing and calendar posted on NWCC's website at www.nationalwind.org. [Update: all three NWCC RTO Briefings/Calendars are now posted on NWCC's website along with an RTO Issue Alert.]

Review revised RTO Principles
Ed DeMeo
[Refer to Attachment G 'NWCC Regional Transmission Organization Principles - Annotated Version']

Ed DeMeo described the background that lead to the NWCC RTO principles. He explained that ten principles were created during the March, 2000 NWCC Transmission workshop in Colorado. Since that time considerable effort has gone into resolving outstanding issues among a handful of members. The objective at this business meeting was to review proposed modifications agreed to by the Workgroup since the March meeting. Mr. DeMeo went over the five areas where the proposed changes have taken place. Meeting attendees agreed with the proposed changes listed below.

• Principle 1: Added clause at beginning of principle that explicitly recognizes regional differences and needs in order to account for different perspectives in the East and West.
   
• Principle 2: The NWCC found there are regional differences in interpretation of some words. (ie. Load-based) Therefore, the principle now says economically rational access charges rather than load-based or other. [note: in subsequent deliberations this principle was dropped.]
   
• Principle 4: Added clause at end of principle "in accordance with FERC Order 2000."
   
• Principle 7: The language changed from 'provide the function of' to 'accommodate for' in relation to the presence of and need for real-time markets as well as forward markets.
   
• Principle 10: Change 'examine all resource options' to 'be open to all resource options.'

Participants agreed the explanation paragraphs after each principle are very helpful to understand the full meaning of each principle. Therefore, the final version will be the annotated version only.

Action: The NWCC will distribute the revised NWCC RTO principles to all NWCC members and work to achieve final consensus among those not present at this meeting. [Update: Since this meeting the NWCC has reached consensus on 9 of the 10 principles. Original principle #2 (load-based access fees) has been dropped. The attached document is the Final NWCC RTO Principles which are posted on the NWCC website.]

DISCUSSION WITH KANSAS GUESTS
Facilitator: A. Arnold

During the meeting, NWCC members held an informal follow-up discussion of wind issues identified at the 7/24/00 Kansas Wind Energy 2000 Conference. NWCC members and meeting guests discussed 1) Key Wind Issues Identified by Kansas Citizens, 2) Possible Next Steps for Kansas, 3) The Role of Wind Community, and 4) Suggestions for Future Conferences. The following comments and ideas are from the discussion that took place:

Key Wind Issues Identified by Kansas Citizens:

• Citizens are very interested in learning how to organize and what steps to take to move forward with wind energy in their state.
• Some advocates believe that economic viability is wind is less of a barrier than the lack of state government policy or utility support for wind.
• A meeting attendee stated that landowner issues should be addressed further.
• Kansas citizens have a historical point of reference when it comes to investing in natural resources. Historically landowners have received a percentage royalty payment from resource production; 12% in the case of oil. Although the dollar comparison of fixed rate per turbine landowner payments from wind may in some cases look good in comparison to the 12% payment from oil revenues, the payment arrangements must be explained carefully so that Kansans can easily compare wind to oil revenue payment options.
  • For example, if a fixed landowner payment for wind power turns out to be less than 12% of electricity revenue from the site, this will need to be explained well.
  • Clearly explain the differences between risk and reward in relation to wind and oil, i.e. wind is not a commodity like oil and it is intermittent, so sometimes wind generates a lot of electricity and sometimes it generates very little.
• Utilities generally favor education and customer choice as ways to build markets for wind power and oppose mandate.
• Some advocates believe that customer choice leads to customer confusion. The believe customers want wind power, but don't always know how to ask for it and are reluctant to pay more for it. Without mandates they feel the market for wind power will be very small.
• In addition to passing wind energy policies, attention must focus on implementation of actual wind projects, because seeing turbines in the ground builds more support for wind.

Possible Next Steps for Kansans:

• Continue convening multi-sector meetings and focus participants on what issues they can agree on and then bring these issues to the Legislature.
• Create a list serve or follow up mailer for future planning of next steps
• To help make the green power program a success in Kansas, one meeting attendee suggested there is a need to have people on the ground organizing and educating and that environmental groups could work together with the utilities to create and market the desired wind product(s) for consumers.
• Consider some of the steps that took place after a similar meeting held in North Dakota in 1999, as they have proved useful:

1. Formed a cross sector workgroup that meets periodically to assess and address wind issues in the state and the region.
2. Initially participants are focused on getting turbines in the ground and proving the economic benefits rather than talking about net metering or restructuring so as not to kill the momentum of the wind energy movement.
3. Placed emphasis on rural economic development benefits and not necessarily the environmental benefits.
4. Cross-referenced the transmission map and wind resource map to locate potential wind resource areas.
5. Educated citizens on the differences between small wind energy and large-scale utility.
6. Formed a Sustainable Energy Economic Development (SEED) North Dakota Chapter to work with the High Plains SEED Coalition on wind advocacy.
7. Formed a core group of legislators to identify what type of legislation is coming up in the next session.

Role of the Wind Community:

• One meeting attendee suggested that the NWCC or Wind Powering America work with Kansans to do the following:
  1. Contact Kansas conference attendees and inform them of who to contact at Western Resources if they are interested in green power.
  2. Identify appropriate contacts at the Department of Defense and approach them about working with Western Resources in Kansas on a Federal green power purchase or a "green tag." [Wind Powering America is the appropriate organization for follow-up.]

The NWCC can not take the role of advocate but can help with steps towards these goals and also work to link up Kansas with other initiatives such as Wind Powering America.

• Another meeting attendees suggested the NWCC share ideas from other states on what policies and actions have been successful at building markets for wind power.

Suggestions for Future Conferences:

• Consider specific goals for states at some upcoming conferences and incorporate discussion of these items into the conference agenda.
• Set up the agenda so that it is possible to attend all breakout sessions.
• Allow time for more dialogue.
• Increase policy discussions (eg. What are relevant wind energy policies and how do they work?)
• Include Senate and House Representatives and make it clear how to contact them after the conference.

Action: Rep. Tom Sloan will convene a conference call of people in Kansas to discuss next steps.

BRIEFING ON NATIONAL AVIAN WIND POWER PLANNING MEETING IV
MAY 16-17, 2000
Dick Anderson, California Energy Commission
[Refer to Attachment H presentation slides 'National Avian Wind Power Planning Meeting IV']

National Avian Wind Power Planning Meeting IV
Mr. Anderson gave highlights from the NWCC National Avian Wind Power Planning IV Meeting held in Carmel, CA in May 2000. He described the purpose of the meeting, research topics discussed at the meeting, lessons learned to date about avian-wind energy interaction, and areas for further research.

The purpose of the meeting was to:

• share research results and update research conducted on avian wind interactions
• identify questions and issues related to the research results
• develop conclusions about some avian/wind power issues, and
• identify questions and issues for future avian research.

Topical areas of discussion from the meeting are shown below.

• Species Impacts
• Tower Type and Size, Number of Towers, and Tower Placement
• Avian Vision and Turbine Blade Conspicuity
• Avian Acoustical Data Monitoring (Hearing)
• The Role of Avian Prey in Avian-Turbine Interactions
• Potential Deterrents
• Bats Ecology and Wind Turbine Considerations
• Site Specificity and Siting of Wind Facilities
• Effectiveness of Standard Methods and Metrics
• Understanding the Significance of the Problem

In an attempt to summarize what we have learned about avian wind power interactions, the following brief list of preliminary conclusions was generated at the meeting:

• In addition to being killed by collisions with other constructed structures, birds and bats are also killed by collisions with wind turbines
• Bird impacts can be significant or insignificant
• Raptors are a high-risk bird group
• Bird use, mortality, and risk vary between and within wind resource areas
• It is a site-specific issue
• There is no conclusive data as to whether a) large or small turbines reduce risk, or b) tube or lattice towers reduce risk
• Nothing is known for sure that significantly reduces avian fatalities
• Avoidance of areas with high bird use is the only proven way to avoid high levels of avian fatalities

Anderson reported on possible research topics various individuals discussed at the National Avian Wind Power Planning Meeting IV and during subsequent correspondence after the meeting:

• Need to better understand the biological significance of the numbers of individual birds killed to their populations (species-specific) so that actions or remedies can be focused on the most significant impacts
• Development of nocturnal survey methods and metrics (for birds and bats)
• Increase and/or expand avian vision studies--including field applications

However, subsequent to the National Avian Wind Power Planning Meeting IV the NWCC facilitator, RESOLVE, received correspondence from NWCC members representing industry stating that it is not a high priority for the NWCC to develop nocturnal survey methods and metrics for birds and bats. In their experience with permitting and environmental compliance for many domestic projects, these issues have not been raised. These parties believe that there are other more appropriate topics for the NWCC to address. They also pointed out that comment was submitted when the National Avian Wind Power Planning meeting IV meeting summary was first circulated. Further, the parties at the meeting and those who responded to the informal tally after the meeting, were not a representative group of all researchers, practitioners etc. nor was there necessarily a balance of representation from the permitting and environmental compliance perspective. Therefore, the list above should not be used to set research priorities, but could be used as a starting point for discussion about priorities.

For the complete listing of future research areas discussed at the National Avian Wind Power Planning Meeting IV and an overview of the Avian meeting refer to the National Avian Wind Power Planning Meeting IV Meeting Summary. Please keep in mind that the meeting summary does not attempt to reflect the details of all of the presentations given at the meeting - these will be summarized in detail in a proceedings document that is being developed separately. The proceedings document will be available through RESOLVE and the NWCC in early 2001. The complete proceedings of the National Avian-Wind Power Planning Meeting III is now available from the NWCC website and as a hard copy.

NWCC Avian Workgroup
Mr. Anderson also gave a summary and status of Avian Workgroup business items.

Outstanding Items
There are two outstanding work items for the Workgroup to complete in the current fiscal year. These include the development of a fact sheet on avian-wind power interactions and a "Perspectives" white paper on "Comparison Of Bird Collisions With Wind Turbines To Bird Collisions With Other Human-Made Structures." Both products need to be completed by December 31, 2000. The current status of these items is as follows:

1. Avian-Wind Power Interactions Fact Sheet:
A draft Fact Sheet was prepared by Tom Gray of AWEA. RESOLVE is incorporating new information from the May 16-17 meeting. The Work Group will review the draft. Once finalized it will be circulated among the full NWCC, and when approved posted on the NWCC website and printed for distribution.

2. "Perspectives" White Paper. The paper will compare the relative levels of avian fatalities caused by wind turbine collisions in perspective with those caused by collisions with other human-made structures. The paper will include a detailed bibliography. The Work Group is close to finalizing a Request for Proposals for the paper.

Next Steps

• Once final, RESOLVE will issue the RFP as a solicitation.
• Proposals will be submitted to RESOLVE and reviewed by the Workgroup.
• The workgroup and RESOLVE will recommend a contractor for Steering Committee approval.
• RESOLVE will issue and manage the contract with Workgroup review of the deliverables.

New Items for Avian Workgroup Attention or Action
Mr. Anderson also mentioned the following items the Avian Workgroup will consider for attention or action.

• Review/Revision of Permitting Wind Energy Facilities: A Handbook in conjunction with the Siting Work Group
• Modification/Revision of Studying Wind Energy/Bird Interactions: A Guidance Document
• Proactive Information Dissemination
• Developing Nocturnal Methods & Metrics (Bats and Birds)
• Altamont Wind Resource Area-specific Workshop
• Future Role of Avian Workgroup

UPDATES ON OTHER NWCC PROJECTS

Credit Trading Project Update
Gabe Petlin
[Refer to Attachment I 'NWCC Status Report: Wind Energy Credit Trading Project']

Gabe Petlin gave a brief status of the NWCC Wind Energy Credit Trading Project. The objective of the project is to provide NWCC with a comprehensive treatment of the potential impacts to the wind industry of emissions credit trading policy and market mechanisms. The project will have three phases:

I. Assess and review credit trading opportunities
II. Develop a set of "Credit Trading Principles"
III. Conduct Communication and outreach

The NWCC is contracting with Econergy International Corporation (EIC) to carry out phase I and II of the project. Final Phase I and II reports are expected by the beginning of 2001.

Bidding for this project was very competitive - there were several very good proposals submitted to the NWCC (11 proposals in total). Several applicants came to the NWCC with matching funds and the willingness to take on tasks outside the proposed scope of work.

Status of Distributed Wind Power Reports
Ed DeMeo
[Refer to Attachment J 'Perspectives on an NWCC/NREL Assessment of Distributed Wind']

The NWCC report Distributed Wind Power Assessment, is waiting on one member's review of proposed final modifications. The NWCC will work to finalize this document as soon as possible.

Brian Parsons, NREL, Joseph Cohen, PERI and Ed DeMeo, Renewable Energy Consulting Services, Inc. have completed a companion paper 'Perspectives on an NWCC/NREL Assessment of Distributed Wind.' The NWCC will use this paper as a starting point to prepare a consensus-based issue brief that summarizes the larger paper's major results and findings and highlights the perspectives of each stakeholder sector in the NWCC.

Action: Once the main Assessment report is finalized and released as an NWCC product, the Workgroup will review the paper 'Perspectives on an NWCC/NREL Assessment of Distributed Wind.' When ready this paper will be sent to the NWCC for their review and eventual adoption as a consensus NWCC paper.

Update on Economic Development Project Development
Gabe Petlin
[Refer to Attachment K 'NWCC Status Report: Wind Energy & Economic Development']

Mr. Petlin gave a brief overview of the economic development work products the NWCC is considering once the DOE Grant has been awarded. Work products included in NWCC's proposal to DOE included the following:

• Issue Forums for the Upper Midwest and Great Plains [Completed in 2000]
• Wind Energy Economic Assessment Case Studies [Completed by May 2001]
• Wind Energy Economic Assessment Research Study [Completed by May 2002]
• Wind Energy Economic Assessment Outreach Materials (eg. Fact Sheets, Issues Briefs) [Completed by October 2002]
• Wind Energy Economic Assessment Outreach and Communication [on-going 2000-2003]

Meeting participants offered the following suggestions in regard to the NWCC deliverables.

• Include experiences from farm owners, landowners, and county commissioners in deliverables.
• Conduct the outreach activities sooner due to the timely nature of these activities, and consider not producing the economic assessment study or completing it on a later date.

Status of Non-Residential Green Power Demand Study
Gabe Petlin
[Refer to Attachment L 'NWCC Status Report: Green Marketing Project']

Mr. Petlin gave a status report on the green marketing project 'Understanding Non-Residential Demand for Green Power. Ed Holt and Associates are conducting a study to understand non-residential customer motivations and barriers to purchasing green power. Mr. Holt expects to have a complete draft report sent to the Green Marketing Work Group by mid September. The project must be completed by December 31, 2000.

UPDATE ON WIND POWERING AMERICA ACTIVITIES
Phil Dougherty, US Department of Energy
[Refer to Attachment M 'Successes and Planned Activities']

Mr. Dougherty gave a brief overview of Wind Powering America's FY2000 and FY2001 Successes and Planned Activities. The program has five main thrusts:

1) Federal Wind Energy,
2) Rural Economic Development,
3) Power Partnerships,
4) Federal and State Policies, and
5) Outreach/Education.

The meeting adjourned at 3:00 PM.

Copies of handouts and presentations (Attachments A- M) can be obtained by contacting NWCC Staff at RESOLVE, Inc. via telephone at (202) 965-6218 or via email at nwcc@resolv.org.

National Wind Coordinating Committee
Business Meeting #22
July 25, 2000

*Dick Anderson, California Energy Commission
Bob Baker, Impact Weather
*Larry Bean, Iowa Department of Natural Resources
*Steven L. Clemmer, Union of Concerned Scientists
*Ed DeMeo, Renewable Energy Consulting Services, Inc.
Phil Dougherty, Department of Energy, Wind Powering America
*John R. Dunlop, American Wind Energy Association
*Mark Eilers, NEG Micon
*Les Evans, Western Resources
Lori Forster, Kansas Corporation Commission
*Troy Gagliano, National Conference of State Legislatures
Bill Griffith, Sierra Club
*Kenneth Hach, Enron Wind Development Corporation
*Jay Haley, P.E., EAPC Architechts Engineers
*Susan M. Hock, National Renewable Energy Laboratory
Tim Hughes, University of Oklahoma
*Karen Lane, Utility Wind Interest Group, Inc.
*Ron Lehr, National Association of Regulatory Utility Commissioners
*Annunciata Marino, Pennsylvania Public Utilities Commission
*Rudd Mayer, Land & Water Fund of the Rockies
Rep. Laura McClure
Steven D. Palomo, Department of Energy - Denver Regional Support Office
Jim Ploger, Kansas Corporation Commission
Sandy Resky de Dubnic, Greenlight Energy
Heather Rhoads-Weaver, Global Energy Concepts, Inc
*Rep. Tom Sloan, Kansas State Representative
*Charlie Smith, Electrotek Concepts Inc.
*Gary Thompson, NE Public Power District
*Eric Wesselman, Union of Concerned Scientist
Thomas A. Wind, Wind Utility Consulting
John Wine, Kansas Corporation Commission

* Signifies NWCC Member

RESOLVE Staff
Abby Arnold
Gabe Petlin
Lori Riggs