Wednesday, February 6, 2013

House Members Ask for Wind PTC Clarification

Thirty members of the U.S. House of Representatives Sustainable Energy and Environment Coalition (SEEC) have sent a letter to the Internal Revenue Service (IRS) and Department of the Treasury encouraging them to act swiftly in issuing guidance to clarify the eligibility qualifications for the renewable energy tax credit that was extended in the American Taxpayer Relief Act. Lawmakers extended the renewable energy production tax credit (PTC) as part of the “fiscal cliff” deal signed into law on January 2, 2013.  This extension altered the language of the PTC to apply to projects that have “commenced construction” instead of projects that have been “placed-in-service.”

Source: House of Representatives SEEC

Xcel May Add More Wind Power

Minneapolis-based Xcel Energy reportedly is considering adding more wind power to take advantage of the recently-extended production tax credit (PTC) program. According to the StarTribune, the company said it is soliciting proposals from developers for up to 200-megawatts of additional wind energy. Xcel currently has the most wind power of any U.S. utility, partly due to the Minnesota Renewable Energy Standard statute which requires it to increase the percentage of its overall power provided by renewables. The company stated it is well ahead of meeting those requirements. No information was provided about possible locations of new wind farms, but the company stated it would be open to proposals that serve its customers in Minnesota, South Dakota, North Dakota and Wisconsin. Read more

Sunday, February 3, 2013

Renewable Energy Standard Update

According to a recent report released by the Minnesota Department of Commerce's Division of Energy Resources, all 16 of the utilities subject to the Minnesota Renewable Energy Standard have demonstrated compliance with the 2011 requirements and are on track to comply with 2012 goals. The report is entitled Progress on Compliance by Electric Utilities with the Minnesota Renewable Energy Objective and the Renewable Energy Standard and is prepared for the Minnesota Legislature once every two years.

Minnesota’s Renewable Energy Standard (RES) statute, amended in 2007, requires that all electric utilities, with the exception of Xcel Energy, provide 25 percent of their total Minnesota retail electric sales from renewable sources by 2025; Xcel Energy’s requirement is 30 percent by 2020. The RES is balanced to protect ratepayers from paying excessive amounts for renewable energy, especially if utilities can show they are unable to meet the RES. 


All utilities, with the exception of Xcel Energy, were required to provide 12 percent of their total Minnesota retail electric sales from renewable sources by the end of 2012. Xcel, which provides about half of the state’s electricity, had to generate 18 percent of its retail sales from renewable sources by the close of 2012.


Actual 2012 compliance figures will not be known until May 2013, when final figures will be reported to the Minnesota Public Utilities Commission. Year-to-date 2011 generation was used to estimate the ability to comply with 2012 requirements.


The Renewable Energy Standard progress report (.pdf)


Source: Minnesota Department of Commerce