CPWEA Annual Meeting to Feature Speakers From Tres Amigas and OwnEnergy

FOR IMMEDIATE RELEASE

Contact:
Caprock Plains Wind Energy Association
Kelly Ayers, Executive Director
(806) 983-2793
Kelly.j.ayers@gmail.com

Tres Amigas and OwnEnergy Representatives to Speak to Texas Panhandle Communities

FLOYDADA, Texas, July 30, 2010 – A free meeting with speakers from Tres Amigas, a superstation which will serve as the nation’s first renewable energy market hub, and OwnEnergy, a wind energy developer looking to help communities generate their own renewable power, will be hosted by Caprock Plains Wind Energy Association (CPWEA) on August 12th at 6p.m.

The meeting, which will serve as CPWEA’s annual membership meeting, is open to the public and will be held at the Floyd County Friends Unity Center in Muncy, Texas on Hwy 70 and FM 786 between Floydada and Lockney.

Nathan Vajdos, a developer with OwnEnergy, will be the first speaker at the event. As a wind energy developer that specializes in community wind, OwnEnergy develops projects jointly with local community partners.

“Topics in Vajdos’ presentation will include an overview of OwnEnergy, community wind, an outline of the development process; and a discussion on landowner options,” said Kelly Ayers, CPWEA’s executive director.

Also attending the meeting, Frank Barbera, director of reliability assurance with Tres Amigas, will give an update on recent progress. The idea behind the Tres Amigas SuperStation is to build the first ever interconnection that will connect America’s three power grids (Western, Eastern and Texas Interconnections), providing a reliable, efficient way to transfer renewable energies between regions.

“Attendees can expect to learn more about how this proposed superstation will work and how it could benefit communities in the Texas Panhandle,” Ayers said.

For more information about these companies please visit their respective websites at http://www.ownenergy.net and http://www.tresamigasllc.com. For more about the upcoming meeting please contact CPWEA at (806) 983-2793 or check out http://www.caprockplainswind.com to find an agenda for the event.

CPWEA is a non-profit association working to connect landowners and local businesses with the wind industry. Our goal is to recruit wind development to the region and help revitalize rural communities. Go to http://www.caprockplainswind.com to find out more about our association and how you can help support our cause.

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TX Landowner Information

I recently received some useful information that was put together by LaFont, Formby & Hamilton, L.L.P. (Attorneys and Counselors in Plainview, Texas). They've given me permission to pass this information along, so I wanted to post it here. You can find a pdf of the information here, check out their website at http://www.lafontlaw.com/wind.html or simply keep reading. ........................................................................................................ Wind Energy Agreements and CREZ Transmission Line Process

Texas Landowner Information

Expansion of wind energy generation into the Texas Panhandle and Rolling Plains region provides us with the ability to harness one of our greatest natural resources. This expansion will have an unprecedented effect on landowner rights. While we recognize and embrace this opportunity, we also understand that it is important for the development to be effective, efficient, and adequately compensate landowners for the rights used or taken. The major issues faced by landowners during this development include: Wind Generation Easements and Agreements; the CREZ transmission routing process; and, the CREZ easement negotiation/condemnation and construction processes (in the event that your tract of land is selected as one of the transmission easement paths).

Wind Generation Easements and Agreements

Farm and ranch land in our region is being sought by wind energy generation developers. The standard form Wind Energy Easement Agreements are quite lengthy and complicated, and can substantially reduce your rights as a landowner unless certain provisions are added and others revised. The standard Wind Energy Easement Agreements offered by developers: restrict farming and irrigated farming; limit oil and gas, gravel and caliche exploration; prohibit conveyance or reservation of wind rights; affect hunting and wildlife management on the property; could convey a transmission easement without your approval or consent; and, contain no provision for removal and restoration of the property when the generators are no longer used.

The CREZ Transmission Routing Process

“CREZ” stands for Competitive Renewal Energy Zones. The CREZ process was established by the Texas legislature in 2005. It was created to help encourage development of wind generation in Texas by facilitating the construction of electric transmission lines to areas of the state determined to have superior wind energy resources. The Public Utility Commission of Texas (“PUCT”) has designated certain portions of West Texas and the Texas Panhandle and South Plains as CREZ zones and has selected a transmission scenario that will bring in 18,456 megawatts of wind power from these regions into the ERCOT electric market. The Electric Reliability Counsel of Texas (“ERCOT”) is an organization that is regulated by the PUCT and oversees the planning and operations of the electric grid that covers most of Texas. However, most residential and commercial customers located within our region are not connected to the ERCOT grid. Our region is connected to an interstate transmission grid that is overseen by a different regional transmission organization, the Southwest Power Pool. On January 29, 2009, the PUCT designated numerous transmission service providers, (“TSP”) including Sharyland Utilities, Cross Texas Transmission, WETT, ETT, and others to construct specific portions of the CREZ facilities in our region. Generally speaking, the Transmission Easement will be some 200 feet in width, and will employ a lattice or monopole structure. The TSP’s have been required by the PUCT to identify several routes which run throughout our region. Each of the TSP’s is required to file an Application with the PUCT for approval of the final route. In the event that one of the proposed routes crosses your property, you have an opportunity to participate in the route selection process. Our law firm is currently engaged in representing clients in the route selection process at the PUCT. In order to participate in the route selection process, you must file a Public Protest or a Request to Intervene within thirty (30) days of the Application filing date for each of the CREZ transmission projects. The following is a list of the transmission service providers, the counties affected by their designated project, and their Application filing deadline. Please consult our website to obtain a route specific map. TSP & Route Counties Deadline Sharyland Utilities - http://www.sharylandutilities.com/ Silverton to Cottonwood Briscoe, Floyd, Motley, Dickens September 8, 2010 Whitedeer to Silverton Carson, Armstrong, Briscoe November 10, 2010 Nazareth to Silverton Castro, Swisher, Briscoe October 20, 2010 Nazareth to Hereford Castro, Deaf Smith October 20, 2010 Cross Texas Transmission - http://www.crosstexas.com/maps.htm Silverton to Tesla Briscoe, Hall, Floyd, Motley, Cottle and Childress July 28, 2010 Gray to Tesla Gray, Wheeler, Donley, Collingsworth, Hall, Childress May 3, 2010 ETT - http://www.ettexas.com/projects/consortium.asp Cottonwood to Edith Clark Dickens, Motley, Cottle, King, Foard, Knox August 10, 2010 WETT - http://www.windenergyoftexas.com/project/intro Cottonwood to Dermott Dickens, Crosby, Garza, Kent, Scurry June 14, 2010 There are other CREZ transmission projects which are scheduled for construction throughout the state. Those are not listed in this letter as they do not directly affect our region. However, in the event that you need assistance or representation with regard to these other projects, we are capable of assisting or representing you in those matters as well. It is important to note that you have the opportunity to contact these companies directly in an effort to provide information or reach an agreement about routing on your particular land. However, your only formal opportunity to participate in the routing process is the filing of a Public Protest or an Application to Intervene with the PUCT.

The CREZ Easement, Negotiation/Condemnation and Construction Processes

In the event that your property is selected during the routing process, the TSP is required by law to contact you and to make attempts to negotiate an Easement Agreement. These Transmission Easement Agreements are quite complicated and their provisions can have a substantial effect on you as a landowner. If you are unable to reach an agreement, the TSP's will exercise the power of condemnation. Our law firm has experience in representing landowners throughout the easement negotiation and condemnation process. The condemnation process generally proceeds as follows: Failing an agreement, the TSP will file a request with a County Court at Law or District Court in the county where the property is located. This request will require the Judge of the relevant Court to appoint three Special Commissioners to resolve disputes regarding the value. The Court can appoint any person who is a property owner within the county. You have a right to participate in this process. In most instances, you should hire an appraiser to provide the Special Commissioners with your position about the value of your property. The Special Commissioners will establish the value of the "property taken" and damage to the "remainder", and then issue their decision. The TSP will have the right to begin construction once the amount established by the Special Commissioners' is deposited with the court. Either party may appeal the decision of the Special Commissioners by filing a lawsuit. In this lawsuit, the parties will be entitled to a Judge or Jury trial to decide the condemnation issues.

Contact Us

We hope that this information makes you aware of the significant issues landowners in our region will be facing with the expansion of wind energy into this area. If we can be of further assistance, please do not hesitate to contact our law firm by telephone at 806-293-5361. ........................................................................................................ Here's our quick little disclaimer: CPWEA does not endorse any particular individuals or companies involved in any aspect of wind energy development. Until next time...

Press Release - The WINDPOWER Experience

FOR IMMEDIATE RELEASE

Contact:Caprock Plains Wind Energy Association
Kelly Ayers, Executive Director
(806) 983-2793
Kelly.j.ayers@gmail.com

Texas Panhandle Well Represented at Recent Wind Power Conference

FLOYDADA, Texas, June 2, 2010 – “We like wind; go get smart on it,” is what former President George W. Bush told the Texas Public Utility Commission Chairman, Pat Wood, back when he was the governor of Texas.

At the recent American Wind Energy Association (AWEA) annual WINDPOWER Conference in Dallas the 43rd President of the United States reflected back on key decisions he made that helped make Texas a leader in wind energy development. Bush also noted that if Texas were an independent nation it would be the sixth largest wind producing country.

Texas’s success in wind energy made it the ideal location to hold this year’s annual meeting of approximately 20,000 attendees and 1,400 exhibitors interested in wind energy, and the Texas Panhandle didn’t go unrepresented. Along with Caprock Plains Wind Energy Association, a non-profit group representing those supportive of wind energy throughout Hale, Floyd, Motley and surrounding counties in Texas, several others from the region attended the conference with the hopes of spreading the word that wind energy development is welcome in the region.

Justin Jaworski, Executive Director of the Floydada Economic Development Corporation attended the event in association with The High Ground of Texas. The High Ground is a regional economic development coalition of the 66 counties stretching from the Panhandle through the South Plains and to the upper Permian Basin.

“The level of representation for this region was incredible considering the size of this event. It was a great opportunity to talk up the region to some of the top developers in the nation,” Jaworski said. “We were able to make contact with several companies and remind them of the great wind resources we have and how business friendly we are as well.”

This year was David Foster’s first time to attend the annual event. Foster, a local landowner, said developers seem to be hesitant to move forward because of current transmission constraints in the region and are looking for areas that have collected meteorological (met) data. Foster said he developed contacts within the industry that could be instrumental in bringing more wind energy development to the South Plains.

“From all the developers I talked to it seemed like collecting met data was the best thing we could do to entice them to our area,” Foster said. “With the magnitude of investment that these companies are putting into wind, it really looks like the up and coming thing.”

During one of the breakout sessions during the conference, panel speakers recognized the lack of transmission as a major issue for renewable energy development. One speaker noted that the Competitive Renewable Energy Zone (CREZ) transmission build out in Texas is working to put the chicken first, essentially helping to solve the chicken versus the egg scenario with transmission and wind development in the Texas Panhandle.

Another session featured Ray Perryman of The Perryman Group, an economic and financial analysis firm that recently released a study outlining the impact of CREZ on electricity cost savings and economic development. The Perryman Group found that many areas throughout the state stand to benefit greatly from the CREZ build out, saving the typical Texas residential consumer between $160 and $355 annually on electric bills, creating $30 billion in economic gains, employing thousands and bringing in several billion dollars in state and local taxes. You can find the full report at http://www.perrymangroup.com.

Many experts at the conference expressed that extensive wind development is a national challenge that needs top down solutions. AWEA’s CEO Denise Bode stated that our nation is essentially competing with one hand tied behind its back until we get a solid national commitment to renewable development. Noted in a session on public acceptance, 89 percent of American voters believe that wind energy is a good idea.

CPWEA is a non-profit association working to connect landowners and local businesses with the wind industry. Our goal is to recruit wind development to the region and help revitalize rural communities. Go to http://www.caprockplainswind.com to find out more about our association and how you can help support our cause.

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Photos courtesy of the American Wind Energy Association. Find more photos from the event at www.flickr.com/awea.






Until next time...

Show Me the Transmission

Texas may not be the "Show Me" state, but we sure do seem to be showing the rest of the nation how to do wind energy. Texas has become an example of how to move forward with wind energy development. One of the ways we are planning for and making future development possible is by expanding our build-out of transmission lines to reach the windy regions of West Texas.

Class 4 Winds, a wind advocacy group based in Amarillo, Texas recently held a seminar entitled: Transmission - Where We Are Now. The event featured speakers from numerous entities involved with the transmission build out in Texas, some of the them with the CREZ (Competitive Renewable Energy Zones) process and some involved with other plans to make the transmission of wind energy out of the Panhandle of Texas much simpler.

Those who spoke on the current status of CREZ included:

• Brian Almon with the Public Utility Commission of Texas (PUCT)
• Mark Meyer with Sharyland Utilities
• Cameron Fredkin with Cross Texas Transmission

Speaking on other current transmission projects in the area were:

• Pat Bourne with the Southwest Power Pool (SPP)
• Frank Barbera with Tres Amigas, LLC

Speaking on other various topics were:

• Harald Dirdal with Scandia Wind
• James Wester and Audie Sciumbato with Underwood Law Firm

I want to share with you a couple of the major things I took from the event. I'll have a more detailed description of the seminar in our monthly newsletter. You can also check Class 4 Winds' Web site; they should have copies of each presentation posted on their site sometime this week. I'll go over two important topics here today...

TOPIC #1 - Protesting and Intervening
Two different ways you can be involved in the PUCT's process for deciding transmission routes

Progress is being made in the planning of the transmission lines for the panhandle and it's important to know how you can be involved. Both Sharyland Utilities and Cross Texas Transmission are in the process of preparing their Certificates of Convenience and Necessity (CCNs) to submit to the PUCT (sidenote: if you are new to this blog/transmission development and curious as to how this process works check out this earlier post). You can find the deadline dates for CCN filings for each line segment that each Transmission Service Provider (TSP) is building on their respective Web sites. Most recently Cross Texas filed their first CCN on Monday May 3rd for their Gray to Tesla line.

Moving on to the point of this topic, it's important for landowners to know that they can be involved while this process is taking place. And there are two primary ways to do so outside of talking with the individual TSPs, essentially filing informal comments as a protestor and actually intervening in a case.

Basically, as a protestor you simply submit a verbal or written statement to the PUCT outlining your support or opposition of a specific project. On the other hand, to intervene in a case you must request intervenor status. This status is usually only granted to landowners who are directly affected by a line. As an intervenor you will be involved in the process in much more depth. You can find more information about the procedure involved with intervening in this brochure put out by the PUCT. It is recommended that intervenors have an attorney to help them with the process.

You can find all the forms necessary for being involved as either a protestor or intervenor on the PUCT's Web site (http://www.puc.state.tx.us/electric/forms/index.cfm)


TOPIC #2 - May 21st - A Final Hurdle
Developers deadline to post Collateral for Panhandle wind projects

Please refer to this earlier post for background on developer financial commitments for the panhandle CREZ if you don't know what has happened to date with this process, if you are familiar with the topic then read on...

These financial commitments that need to be made by developers working in the Panhandle seem to be the final hurdle. Once we get past this last hurdle then the rest of the transmission build-out should be rather smooth sailing.

Ten developers in the region have filed an intent to post collateral, all of them for a various number of Megawatts (MWs). At $10,000/MW it equaled out to approximately $126 million. An interim order was signed on April 21st of this year and the deadline for the developers to make the commitment is May 21, 2010. And if you didn't notice, that's coming up real soon. Be checking back from updates.

What's my conclusion?

Texas is showing the nation what it takes to be the state with the most wind energy development. Transmission build-out is moving forward, so stay informed and stay involved. Check back here for new information periodically.

You can always submit an anonymous question for us on our formspring page. Check it out, I'll be happy to answer any relevant inquires: www.formspring.me/cpwea

Until Next time...

PR - Over 20 Exhibits Expected at Upcoming Wind Expo

FOR IMMEDIATE RELEASE

Contact:
Caprock Plains Wind Energy Association
Kelly Ayers, Executive Director
(806) 983-2793
Kelly.j.ayers@gmail.com

Over 20 Exhibits Expected at Upcoming Wind Expo

FLOYDADA, Texas, February 19, 2010 – The fourth of March is fast approaching and the number of exhibitors that will be present at the Wind Energy Expo in Muncy, Texas, continues to grow.

Over 20 companies or groups will be taking advantage of the opportunity to set up a booth free of charge at the expo hosted by Caprock Plains Wind Energy Association. The event to be held at the Floyd County Friends Unity Center will be free and open to the public from five until eight p.m.

Exhibitors include wind companies involved with on-site wind generation for your home, farm or business as well as companies interested in developing small, mid-size and large utility scale wind developments. Hill Country Wind Power, Tri Global Energy, P&K Wind Energy and Western Wind Turbines will all have representatives available to provide attendees with information about their companies and answer any questions landowners or community members might have.

Curtis King, director of investor relations at Tri Global Energy, will be one of the representatives present at the expo and he is excited to meet more local people and share with them Tri Global’s plan for developing wind and other renewable resources in the area.

“We will have a model of our newest small wind turbine set up at the event for people to check out,” King said. “This model, the Texas Wrangler, can help homes, ranches, farms and schools benefit from wind energy. We’ll also have information about big wind and other renewable development opportunities; we hope that people will come out and talk with us about those opportunities.”

Sharyland Utilities and Cross Texas Transmission who are both involved with the build out of the Competitive Renewable Energy Zones (CREZ) transmission lines will both have booths with available representatives at the event. Information will also be available from the Southwest Power Pool (SPP), the regional transmission organization which operates in the Texas panhandle and surrounding states.

Alternative Energy Institute, Texas Wind Energy Institute and Class 4 Winds will all have information important for landowners, community leaders and individuals interested in getting involved in many different aspects of the wind industry including the workforce.

Other companies that offer services within the wind industry who will be in attendance are
American Wind Capital, Underwood Law Firm, Kimley-Horn and Associates, Integra Wind Services, AKL Wind Energy Scouting and Land Services, Bureau Veritas, Silver Creek Farms, Anemometry Specialists, and Sage Oil Vac. Local entities that will be represented include the Plainview Chamber of Commerce and the Floydada Economic Development Corporation, who is a sponsor for the event. Justin Jaworski, executive director at the Floydada EDC hopes that this expo will create opportunities for the area.

“We want to do everything we can to support wind energy in Floyd County,” Jaworski said. “Dollar for dollar, it will have the greatest impact on the future of our economy than any other investment. Floydada EDC has been and will continue to support initiatives that will ensure our area is a prime destination for development.”

Interested parties still have time to sign up to have an information table or exhibit at the event. They can register for free by completing an exhibitor sign-up form which can be found on CPWEA’s Web site (www.caprockplainswind.com).

CPWEA is a non-profit landowner association working to connect landowners with developers in the wind industry. CPWEA’s goal is to recruit wind development to the region and help revitalize rural communities. Contact CPWEA by phone at (806) 983-2793 or by email at info@caprockplainswind.com.

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Transmission Summit Tidbits

I titled this post tidbits for two reasons:

1. This entry would be way to long if I tried to tell you everything that went on last week at the Transmission Summit in Sweetwater, Texas. So long in fact that you would probably look at it and think no way I'm reading all of that and move on, and nobody wants that.

2. I am going to go into detail about what I learned at the summit in this month's newsletter that goes out to all of our members. So if you're a member, you can it there; if you're not a member you can find a membership application here:
http://www.caprockplainswind.com/htm/membership.html.
Sorry I couldn't pass up the opportunity, but if you want more information about memberships check out the web site and if you still have questions shoot me an email or give me a call.

Now, down to business...
The Transmission Summit held last Thursday and Friday was put on by the Texas Wind Energy Clearinghouse and featured speakers from several transmission service providers building CREZ lines as well as representatives from Southwest Power Pool, Tres Amigas, ERCOT and several others.

Here are a couple of the things that were discussed that I thought were the most relevant to our immediate area.

• Developer financial commitments for panhandle CREZs

Cameron Fredkin, director of project development, gave an overview of what has happened concerning the the PUCT's recent docket (#37567) which asked developers in the Panhandle A and B zones to post collateral in order to justify the build out of transmission lines in the area. If you want more background on the issue check out topic # 3 on our previous blog entry: Texas Renewables.

The PUCT asked wind developers to post collateral for 50% of the capacity for each Panhandle zone. Existing operations in the zones that are connected to the ERCOT grid were counted as collateral and after the initial letters of intent were revised the PUCT did receive 50% commitment for each zone in the form of letters of intent (actual collateral will have to be posted at a later date).

Developers who were involved in the process include: Scandia, Higher Power, Horizon, Clipper, Cielo, Pattern, E.On, Iberdrola, RES, and Invenergy. Some developers didn't participate in the process, but this doesn't exclude them from moving forward with developments.

• Sharyland/Cross Texas transmission line progress

It seemed like a common theme from both of the TSPs working in our area that for the most part landowners have been pretty easy to work with throughout the process. Both companies have been holding open meeting throughout the area and getting landowner input so that they can put together line routes.

Right now Cross Texas has public meetings scheduled for January 26th, 27th and 28th in Turkey, Childress and Silverton, respectively. Check out their Web site for more detailed information about the routes they are currently looking at: http://www.crosstexas.com/teslasilverton.htm. The PUCT filing date for this line is July 5th, 2010. The line could be potentially located in any of the following counties: Briscoe, Floyd, Hall, Motley, Childress, and Cottle.

Sharyland plans to file their CCN for their Silverton to Cottonwood line would could potentially pass through Briscoe, Floyd, Dickens and Motley Counties in May of this year. Sharyland was selected to build 4 substations in the panhandle located close to Silverton, White Deer, Nazareth and Hereford. All of the land for the stations have been selected and options have been signed. Each option is for a section of land or 640 acres, giving Sharyland the option to expand the subs as more wind comes on line. Sharyland is on schedule to energize all of their lines sometime summer or fall 2013. Once the lines are energized developers should be able to connect with in six months.

• City of Garland intervening in CREZ process

Last week was the first I had heard of the City of Garland intervening in the CREZ process. Many people are concerned that these proceedings will slow down the development process. There was only brief mention of the topic at the summit, but when I made it back to the office Monday morning I found that my Google reader list (side note: if you don't use Google reader to follow blogs and key words in the news, well, you definitely should) had several news articles concerning the City of Garland and the PUCT. Here are a couple so you can read about the issue in more depth:

$5B Wind Plan Back in PUC's Lap

Judge orders halt to work on wind transmission project

• SPP transmission plans

It was nice to hear about SPP's plans for transmission expansion. We have heard so much lately about the CREZ process that it is nice to know that another grid operator is looking to tap into our wind rich region. $3.2 billion worth of transmission improvements have been approved at SPP. They are hoping to create a collector system that will be able to take some of the wind energy generated in the Panhandle of Texas into the Eastern grid. Included in their currently approved portfolio of transmission expansion projects is a 345 kV line that will stretch from Mooreland, OK to just north of Abernathy, TX into the Tuco substation.

SPP has plans for more transmission expansion, but they have yet to be approved. There is a lot in store for the future of wind development in the panhandle of Texas.

Until next time...

I've Got a Question?

I received a call yesterday afternoon from a landowner in our association (side note, I love getting calls from landowners; it helps me to keep perspective on what our association is really all about). This particular landowner owns land in Floyd County, Texas and wanted to know several things about how development is progressing in the area. One question he had in particular got my wheels turning. Let me back up and tell you how we got to that question.

The first question I got was one that I get all the time: are developers looking to develop in the area? The simple answer to that one was yes, yes they are. The more complicated answer is that while yes they are looking to develop in the area they are all sort of at a stand still while waiting for the transmission line build-out to come along.

So the next question was a very logical one: what is the status of the transmission lines? Once again, easy answer to this one is they are currently being planned. What's the more detailed answer you ask? Well, transmission companies throughout Texas are currently working on coming up with several different routes in which the lines could be built. They are working with community leaders and landowners to develop a primary and several alternative routes that they will submit to the Public Utility Commission of Texas (PUCT). The PUCT will then choose which route they will build. Construction of the entire system is scheduled to be complete by 2013.

The next question was a very straight forward one: so, the lines are going to be built? The answer to this one was simple again. Yes, the lines are going to be built including a line that is planned to cross the Northeast corner of Floyd County.

Here comes the wheel turner. If the developers are interested in the area and they know that the lines will be here eventually why aren't they already out here securing the land? This was one of those moments when I had to stop and say, "well, I am not sure."

Now before I go any further let me stop and give a disclaimer. I know that there are developers in the area who are talking with landowners and even some landowners who have their land leased, but a lot of that type of stuff is done under the radar. Developers don't necessarily want to broadcast the possibility of developing a wind farm until it's pretty set in stone. Even for those landowners who haven't been talking with developers in our area, it is very possible that developers have their eye on your land.

With that said, I was pretty curious about that question myself. I guess you could say I am a little biased though; I would like for all of our landowners to secure their land with wind developers and I would like for it to happen today. Putting aside my biases, I realized that there must be some logical reasons why developers are slow to jump on the opportunity to secure land with great wind potential like what we have here in the Caprock Plains Region of Texas. Who better to answer this question than a developer who is in this exact situation.

After my discussion with a developer interested in development in the area, I found a little clarity. This is what I got out of that discussion:

First of all, wind developers want to make sure that lines are up, operating and open before they move forward with a project. When developers build a project in a specific area they have to request an interconnection into that grid for a certain amount of MWs that they think their project will provide. For ERCOT and SPP this process takes time and there are lots of studies that have to take place to find out what kind of power generation will affect the lines it goes into as well as the other lines down the road. Until they get farther along with the CREZ process they aren't exactly sure how it will affect the grid. The CREZ lines will allow for more wind farms to be built but it will also help with congestion problems. As the congestion areas are taken care of and developers are convinced that new lines will continue being built and on schedule then we will be more likely to see development pick back up.

One other issue is money. Developers looking at large scale developments will generally lease about 10,000 acres. When they are paying $3 to $4 an acre it can really add up, especially when they are looking at 2012 and 2013 as a projected completion date for the lines. It turns into quite a bit of money the developer is out way in advance of ever seeing a return. Wind developers are also still a little skeptical of the time frame for the transmission lines and are generally waiting to make sure the build-out continues as scheduled.

Needless to say, after my discussion with the developer I feel much more prepared to answer that question next time it comes up. And next time it won't require so many wheels turning!

Until next time...

Press Release - Transmission Siting

FOR IMMEDIATE RELEASE

Contact:
Caprock Plains Wind Energy Association
Kelly Ayers, Executive Assistant
(806) 983-2793
Kelly.j.ayers@gmail.com

Local Landowners Involved With Transmission Siting Process

FLOYDADA, Texas, September 24, 2009 – Here in the Texas Panhandle landowners are excited about the approaching transmission build-out because it ultimately means more wind farms will come to the area, but what’s even more exciting is that Transmission Service Providers (TSP) building lines in the area are making sure that landowners are involved in the siting process.

Sharyland Utilities, a TSP chosen by the Public Utility Commission of Texas (PUCT) to build four collection stations and five transmission line segments which will cover 250-300 miles in the Texas Panhandle and South Plains, recently held an open house at the Floyd County Friends Unity Center in Muncy, Texas. During the open house Sharyland representatives were available to answer questions, address concerns and take suggestions on potential routes for the transmission lines that are meant to bump up transmission capacity in order to harness the wind energy potential in the Texas Panhandle.

Bill Quattlebaum a landowner in Floyd County and board member for Caprock Plains Wind Energy Association (CPWEA), a non-profit landowner association looking to promote wind development in the area, attended the public meeting and was pleased with the interactions he had with Sharyland representatives.

“It seems to me, in all sincerity, that they are very conscientious and landowner friendly,” Quattlebaum noted. “They ask you two or three times if they can help you with anything and they are very knowledgeable. They act like their time is your time and that’s very admirable of them.”

The purpose of these public meetings is for Sharyland to be able to determine what would be the best route for a specific line segment. They will look at using or paralleling existing right-of-ways, while also taking landowner preferences into consideration. Sharyland plans to submit their preferred route as well as several alternative routes to the PUCT for review in the second quarter of 2010. The PUCT is expected to have an approved route by the third or fourth quarter of 2010 and if all goes as planned Sharyland will begin construction of their lines in the first or second quarter of 2011.

The 345kV transmission lines that are going to be built will require a right-of-way that is 175 feet wide. For the most part, the lines will be on steel lattice structures that will stand around 125 feet tall. Sharyland will purchase right-of-way easements from landowners. Fair market value for the easements will be determined by conducting a market study or appraisal of the land. While Sharyland Utilities has the power of eminent domain they are making all efforts possible in order to avoid an eminent domain situation.

Some concerns landowners may have is that having a transmission line on their land will prevent them from having wind turbines. A transmission line may affect the placement of turbines, as general practice calls for a buffer zone between transmission lines and turbines, but Sharyland is committed to working with landowners and wind developers to ensure a proper balance of land use.

Bill Quattlebaum seems excited about the potential that these transmission lines will bring to the area and he also seemed convinced that Sharyland is honestly working to build their lines along a path of least resistance, choosing routes which have the least landowner opposition.

“It’s a given that the transmission lines are coming, and the windmills will follow” Quattlebaum said. “Our vision at CPWEA, ‘windmills as far as the eye can see,’ is going to become a reality.”

You can find more information about the transmission line build-out and answers to frequently asked questions on Sharyland’s Web site (www.sharylandutilities.com).

CPWEA is a non-profit landowner association working to connect landowners with developers in the wind industry. CPWEA’s goal is to recruit wind development to the region and help revitalize rural communities. Go to www.caprockplainswind.com to find out more about the association.

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Terms You May Hear

Last night at Sharyland Utilities' public meeting held at the Floyd County Friends Unity Center in Muncy, Texas they had a handy little booklet full of all kinds of information available to attendees. I wanted to share the section "Terms You May Hear" because I understand that its a lot to keep up with all the stuff going on with the transmission build out and the wind industry. So, here is a little FYI:


CREZ = Competitive Renewable Energy Zone
Specific area of Texas determined by the PUCT to have superior wind resources, including the Texas Panhandle and South Plains.

PUCT = Public Utility Commission of Texas (www.puc.state.tx)
The Texas regulatory body responsible for protecting customers, fostering competition and promoting high quality infrastructure, including electric transmission lines. The PUCT maintains oversight over Sharyland and all regulated utilities in Texas.

ERCOT = Electric Reliability Council of Texas (www.ercot.com)
An independent agency, overseen by the PUCT, that manages the flow of electric power to 22 million Texas customers. ERCOT's system covers approximately 85% of the state's load and 75% of its land area.

SPP = Southwest Power Pool (www.spp.org)
An organization similar to ERCOT that oversees the planning and operation of an interstate transmission grid covering states including parts of Nebraska, Kansas, Oklahoma, New Mexico, Texas, Arkansas, and Louisiana. Most retail customers in the Texas Panhandle and South Plains are connected to the SPP grid.

FERC = Federal Energy Regulatory Commission (www.ferc.gov)
The Federal Energy Regulatory Commission regulates and oversees energy industries in the economic, environmental, and safety interests of the American public. They effectively perform the same function for the rest of U.S. as the PUCT does for Texas.

NERC = North American Electric Reliability Corporation (www.nerc.com)
NERC is a self-regulating organization, subject to oversight by the U.S. Federal Energy Regulatory Commission and governmental authorities in Canada. They ensure the reliability of the bulk electric system throughout North America by establishing and enforcing technical and operational requirements for all electric utilities.

TDSP = Transmission/Distribution Service Provider
Also referred to as a Transmission Service Provider ("TSP") or a Transmission Owner/Operator ("TO"), a TDSP owns and operates electric transmission lines in ERCOT. Some, like Sharyland, are fully regulated and must follow the guidelines of the PUCT, as well as ERCOT.

CCN = Certificate of Convenience and Necessity
A permit issued by the PUCT that authorizes a TDSP to build a specific transmission line along a defined route.

ROW = Right of Way
Written permission from a landowner to a TDSP that allows the TDSP to build and maintain a transmission line across the landowner's property.

345kV = 345 kilovots = 345,000 volts
This is the nominal voltage of the CREZ transmission lines. By comparison, the voltage supplied to most homes is 120/240 volts.

Collection Station
These are the endpoints to which the 345kV CREZ lines attach. They are also the points to which wind farms will connect to the ERCOT system. They are also referred to as "Stations" or "Substations."

Stakeholder
Any entity (landowner, business, etc.) that could be potentially affected by the location of a transmission line or substation.

Moving along with the CREZ

We are all waiting on something. Whether patiently or impatiently, people in the Panhandle of Texas are waiting for transmission lines to be built so that they can move forward with wind development in the area. First of all, I want to reiterate that things are moving along. Transmission Service Providers chosen by the Public Utility Commission of Texas (PUCT) are working diligently to get these lines under construction.

If you are a landowner in the area where these TSPs are going to be building new lines as a part of the CREZ process then it is important that you be involved with them as much as possible. I have had nothing but positive experiences with the companies who are going to be building in our immediate area. Representatives from Sharyland Utilities and Cross Texas Transmission have been speakers at our recent meetings and I have no doubt that their utmost concern is making decisions that will best serve landowners and local communities. So take the time to meet with them and have your voice heard.

Sharyland is hosting several open house type public meetings coming up soon. Public meetings will be held on September 21st, 22nd and 24th in Silverton, Muncy and Dickens, respectively. The meetings will all be come and go events where you can ask questions of Sharyland reps and see detailed project maps. You can stop by at any of the meetings between 5 and 8pm. Find out more about the meetings here.

You can also find a copy of the map which shows preliminary routes for the Sharyland's line that will be crossing Motley, Floyd, Briscoe and Dickens Counties here. If you are a landowner in these areas, these public meetings are a chance to get your voice heard on which line you would prefer. The best thing to do might be to work with your neighbors; if a group of you go to Sharyland with a concern you just might have more pull.

In case you are wondering how this entire process is going to pan out, basically what will happen is that Sharyland, taking the suggestions they receive at public meetings and through other interactions with community members, will create several line proposals that they will submit to the PUCT. Included in this proposal, more formally called a Certificate of Convenience and Necessity, will be an outline of a primary route (which Sharyland believes to be the best route) as well as several other alternative routes. The PUCT then has 6 months to choose the route they believe is best. Once the PUCT decides then Sharyland can begin construction. The entire CREZ system is scheduled to be complete by the end of 2013.

You can find another map Sharyland had available at recent public meetings for the line that crosses Potter, Randall, Carson, Armstrong and Deaf Smith Counties here.

Finally Some Answers Cont.

Well here we go again. I have got three more answers for you today, so let’s get after it.

And before I confuse anyone, we are starting with question #3 because questions #1 & 2 were answered in the last entry. Which I ultimately decided had gotten too long, so I made you wait a little longer for the rest. Hope you’re not too upset! Okay enough of that, here goes:

Question #3 ~ How much does it cost per turbine to construct a large wind farm?

The most comprehensive answer I could find can be found on Windustry’s Web site. So you can go directly to their Web page and read the answer in its entirety or you can stick with me on this one. I’ll keep it short and sweet for you.

Of course the first statement that Windustry makes on this topic is that the cost of installing a wind turbine depends on a lot of things. These vary from the location of the project, the contracts involved, financing costs, the size of the project, etc. In general they state that in 2007 a commercial scale turbine cost somewhere between $1.2 million to $2.6 million per MW. The example they gave stated that a 2 MW turbine (one of the most common sizes) cost about $3.5 million to install.

Now that you have my short and sweet answer I recommend that you check out Windusty’s Web site if you need more in-depth stuff.

Question #4 ~ Who are the developers, manufacturers that are keeping the wind industry going? Are most of them foreign companies?

So this question gave me a little trouble. I could easily give my opinion on the matter, but I wanted it to be supported by other sources. I will start with my opinion and I encourage anyone who is better versed in the topic to add their thoughts by posting a comment. Here’s what I can make of the situation; suppliers and manufacturing facilities in the United States are growing as is the entire wind industry. It is true that a lot of developers and so on aren’t based in the U.S., but many of them have begun building facilities here. At some point a lot of countries jumped ahead of the United States in wind energy development and therefore we are currently playing catch-up in that sector. I believe the wind industry offers a lot of potential to our country right now, the potential for new businesses and new job opportunities. We have a lot to learn from what other countries have done in wind.

One article I found gave a lot of information on the status of wind turbine manufacturing both worldwide and specific to the United States. It states that most turbines are imported from Europe and Asia, but that turbine parts made in the U.S. grew to 50% in 2008, up from less than 30% in 2005. It also goes into how the recent stimulus act might help the industry. You can read the entire article here: U.S. Wind Turbine Manufacturing Will Increase

Question # 5 ~ How much per mile does the construction of the new transmission lines in our area cost?

This one was easy for me to answer because Tom Gray, AWEA’s Director of Communications was kind enough to leave a comment on one of my previous blog entries. Therefore I will quote him directly, “Hi, the CREZ lines are 2,400 miles in length and will cost $4.9 billion, so the cost per mile is about $2 million.” Thanks Tom!

Alrighty!! Well I finally got that all worked out. Hope that I was thorough enough for your taste and that you made it this far along without having to take a quick nap. Once again, and I can’t say it enough, if you have comments or any input please post it as a comment. Until next time…

In the Lions Den Once Again

First of all I would like to give this disclaimer: Answers to the previous post's questions will be posted soon; I am working on being thorough. Feel free to post your opinion on any of them as a comment. With that said...

I spent another day in a Lions den this afternoon. The Plainview Lions Club had me as their speaker and I couldn't have been more excited with the turnout. This is my 4th Lions club experience this summer and it was by far the largest. It seems as if before each meeting I get the usual warning about how its summer and the attendance at meetings is always low this time of year. I wouldn't have known the difference looking out on the crowd from the podium at the front of the room today, there weren't many empty seats.

Now when Brent Richburg, Ash Middle School Principal and previous Boss Lion, informed me that there would be around 60 attendees I must admit that my stomach did a little flip. My nerves were quickly put to rest during the "meet and greet" part of the meeting. It was easy to tell these were quality people who were genuinely interested in my presentation topic. The wide array of professions represented at these club meetings always astounds me and while I hope that everyone benefits from my presentation, I know that I always benefit from the conversions had and contacts made afterward.

So to my point of this entry: I would like to add another question to the list presented in the previous entry. I hated that I couldn't answer this question on the spot today in Plainview so I want to do some research and come back to it:

Question #5 - How much per mile does the construction of the new transmission lines in our area cost?

If you have an answer please post it as a comment. I will be coming back to answers questions 1-5 soon, be checking back!

Symposium Snapshots

Here are some pictures from last weeks symposium; we were very pleased with the turnout! The Floyd County Unity Center is a great venue! Thanks to all those who attended.

Larry Hoyle, board member from Motley County assists at the sign in table. We had a great group of landowner from across the area show up and they brought great questions for our presenters.

Featured speakers were getting acquainted while waiting for attendees to filter in.We had to add additional chairs as those we had set up in preparation for the event turned out to be inadequate! We welcomed the crowd!



Board members Bill Quattlebaum (Floyd County) and Jimmy Lewis (Hale County) chat with Jon LaBaume (manager of the Unity Center) before the presentations began. Many city officials, landowners and other influential community members took the opportunity to chat amongst themselves while waiting for the symposium to begin as well.


Steve Stokes, President of the CPWEA Board, opened the meeting by thanking the attendees and reminding CPWEA members about an upcoming membership meeting to take place in August. Stokes informed the audience that the association is proposing a change to its dues structure and asked that members make sure and come out to vote.


The first speaker of the night was John Sullivan, Senior Geologist for The Shaw Group's environmental division. He spoke to the group about fatal flaw analysis, environmental studies and other issues that should be addressed before jumping into a wind development. He talked about make or break issues for wind development.


Our second speaker was Brian Almon from the Public Utiltity Commission of Texas (PUCT). The PUCT selected the transmission service providers who will be building the transmission lines across Texas. They will also be actively involved in route selection. Almon gave the audience an overview of how the process works.


Finally, our third speaker for the evening was Mark Caskey, Vice President of Operations at Sharyland Utilties. Caskey talked about where Sharyland was in their process of building out transmission in the Texas panhandle. Sharyland will be building lines in Carson, Randall, Armstrong, Castro, Swisher, Briscoe, Floyd, Motley and Dickens Counties.




Thanks again to all those who attended. You can find a link to speakers presentations and handouts from the event on Caprock's Web site at http://www.caprockplainswind.com/htm/NewsLinks.html under Caprock News.

Be looking for posts on future events!

Wind Symposium, Free and Open to the Public

You are probably already well aware that transmission service providers (TSPs) have begun planning to build new transmission lines throughout Texas. The goal of this build out being to harness the wind energy potential in West Texas and move that power to urban areas like San Antonio, Austin and Dallas. The Public Utility Commission of Texas selected several companies in January of this year and designated each of them specific areas in which they will build lines.

What you may not know is what happens next. There are several steps that must take place before the lines will actually start being built. During these preliminary steps are when landowners have the opportunity to get their voices heard. Come and check out our event to find out directly from the source what the timeline for transmission line build out looks like currently and how you can get involved.

CPWEA's event:
A Symposium:
Preparing for Wind
will feature speakers from the Public Utility Commission of Texas, Sharyland Utilities and The Shaw Group. The event is free and open to the public. Sign-in starts at 6:30 tomorrow (June 25th) at the Floyd County Friends Unity Center on HWY 70 between Floydada and Lockney, Texas! To find out more check out our press release and spread the word.

Hot Topics

There were several articles in North American Windpower's recent publication that I felt were worth noting. If you don't already have a subscription you can sign up for one on their Web site. While you can find updates and headlines on the site their print edition offers more in-depth, comprehension stories concerning a wide range of issues in the wind industry.

If you have been following news from the wind industry you probably know about the topics that have been getting a lot of attention, but in NA Windpower's recent publication they give a good overview of what's been going on. I wanted to pass along some of the points they made concerning the CREZ process and a National RES.

CREZ

Mark Del Franco noted in his article, "As CREZ Work Begins, Developers Head East" that some developers are looking at places other than West Texas and the Texas Panhandle while they are waiting for transmission to be built. And what does that mean for us here in the panhandle? To me it means that we just have to be patient. The wind is good here, we have wide open spaces and developers have a lot less to worry about when planning and developing a wind farm. As Del Franco points out in the article, areas where developers have recently starting focusing (the Texas coast for example) are more populated and have more environmental issues to consider.

The CREZ plans will add something around 3000 miles of transmission lines and bump up transmission capacity to 18,456 MW. A direct quote in the article from Paul Sadler, executive director of the Wind Coalition, made it quite clear that the CREZ process will have quite an impact on wind development in Texas basically saying that wind will be able to contribute double what it does today. According to Del Franco's article, wind currently represents 8% of electric capacity in the state.

Another topic discussed in the article wasn't directly related to CREZ, but has the potential to affect whether developers choose to develop in Texas over other wind rich states. The article highlighted the importance of the extension of the Texas Economic Development Act (AKA Chapter 313 of the state tax code) which allows tax abatements to be used to bring in economic development projects like wind farms. This helps bring developers to Texas.

These are just a couple of the items discussed in the article. In my opinion, it looks like while we have recently seen a slow down of development in our area we should be looking at a very different situation in the near future. The biggest issues right now is making sure that developers remain aware of the fact that we want wind in our area. It's a lot easier to deal with landowners who welcome wind development than to try to plan a project amidst opposition. The CREZ is the first step in bringing wind development where it makes the most sense for it to be.

RES

Another recent hot topic is the National renewable electricity standard (RES). Most of those directly involved in the wind industry would like to see legislation put in place that would require 25% of the nation's energy come from renewables by 2025. That original number has been cut down as the legislative process have moved along.

Greg Williams wrote an all encompassing piece in the recent NA Windpower print publication. He points out two main reasons why a national RES is favored: one being the three things that come as a result of renewable energy development (clean energy, jobs, and energy independence) and second that a national RES helps secure the future of renewable energy use in our nation. This security will help the renewables industry to continue to grow.

In his article Williams also notes two reasons why RES legislation is opposed. One, because some believe that the same results will be achieved with carbon reduction policies and two, because the legislation is unfair to those areas that have do not have abundant renewable resources.

In my opinion, the watering down of the national RES only seems to be a delay of the inevitable. I think that most would agree that as a nation we need to be relying on energy that is one, generated right here on our own soil and two that helps minimize negative effects on our environment. A strong national RES would kick things into gear and as far as I can see the sooner we do this the better.

You can check out what's going on with the RES legislation and take action at www.powerofwind.com

WINDPOWER, Part 2

Seth Dunn of GE Energy related his presentation on US Wind Policy at WINDPOWER last week to America's favorite pastime. This presentation was one of my favorites; making it easy to put policy into perspective.

Dunn presented the "field of dreams" for wind policy in America. Breaking it down into four categories, the things we need to help support the wind industry are:

1. A Financing Fix - the basic premise is that we need to restore the flow of financing so that projects can get off the ground. Factors that may help restore the flow are: A PTC 3 year extension, treasury grants, loan guarantee programs and a green energy bank.
   
   
2. A National RES - In order to provide some type of security in the industry it is imperative to provide a long term signal regarding renewable energy and its future in our country. In order for a National RES to accomplish what it needs to several things need to be included in legislation: aggressive long term requirements, meaningful milestones throughout, a bankable REC market, and penalties for non-compliance.
   
   
3. Transmission - We need to connect resource-rich areas to those areas that need the power. Interconnection-wide planning, cost allocation and federal siting authority will help facilitate the process.
   
   
4. Climate Policy - both long terms goals and requirements for the near future on emission reductions will help to spur the growth of renewable energy, not to mention the benefits it will pose environmentally speaking. Other things mentioned in Dunn's presentation that we need to see come out of climate policy is appropriate cost containment provisions and allowance value for renewable incentives.
   

Of course there will be challenges that come along with each base we round, but if financing programs get back up and running and legislation passes then the wind industry stands to see some substantial benefits.

What Happened At WINDPOWER?! Part 1

The answer to that question isn't a simple one, simply because a lot happened at AWEA's annual wind conference and exhibition in Chicago last week. So, to avoid posting one large post which would require much scrolling on your part, I have decided I will break it down for you over the course of this week. Just make sure you check back for more...

Today's Topic: What Did Boone Pickens Have to Say?

In an interview with Bill Kurtis, television journalist, during the second general session of the conference T. Boone Pickens presented a pretty straight forward message: The United States needs to get off our dependency on foreign oil. He said that while renewables is part of the solution what we must do is go all American when it comes to energy.

Pickens urged people to ask their representatives what their energy plan is, because he said if they don't have an answer to your question then their plan is to rely on foreign oil. Pickens pointed out why this poses a security problem for our nation by saying that a great deal of our oil imported is from countries who are not friendly with the United States.

So does T. Boone Pickens think its possible to get 25% renewable energy by 2025? Yes, he thinks it can be done because he says the American people want it. He pointed out that the results of a recent poll shows that 70% of those polled knew what the Pickens Plan was and 78% of them were in favor of the plan. (You can find out more about the Pickens Plan at www.pickensplan.com).

Pointed out during the interview was the fact that some people just don't want wind energy development on or around their land. To that Pickens responded by saying that if you don't want wind energy development then don't do it; plenty of people elsewhere do want it (in the Great Plains for example).

As far as transmission is concerned, Pickens felt like it would work best if FERC was given the power to site the power grid just like they do with natural gas pipelines. He said that this would help with problems that might arise between states otherwise. Being a landowner himself he said that it wouldn't bother him to have a transmission line running through his property because what is good for this country is good for him. He felt like many landowners would share this same sentiment.

Pickens encouraged people to support his plan for energy Independence saying, "If I've got millions of people with me than I am a hell of a lot more important than just a rich guy from Texas."

Transmission Seminar

Yesterday Class 4 Winds, a wind advocate located in the Panhandle of Texas, hosted a seminar focusing on transmission for renewable energy zones in Amarillo, Texas. The event featured representatives from Sharyland Utilities and Cross Texas Transmission. These companies have both been designated to build out transmission in the Panhandle of Texas as designated by the PUCT. Click here to see a map of where the lines are planned and who will build them.

You will be able to find both presentation on Class 4 Winds' Web site, but here are a couple of the points I felt were important to mention:

• Substation placement

When looking at the map (from above) you will see dots which represents the proximity in which a substation or collection station will be built. It is important to note that while this represents the general area in which the station will be built, the actual exact placement of the substation has not been determined. Both Cross Texas and Sharyland pointed out that the dot on the map represents the location ERCOT identified but they have not zeroed in on a location.

• Public Meetings
  

Information meetings similar to the event that took place in Amarillo will take place in the preliminary stages of this process. As the companies begin to map out different routes in which they may build the lines they will notify landowners who will potentially be affected. Maps will be available at these meetings showing the possible routes and landowners will be asked to give feedback. Both presenters noted the importance of getting community feedback to determine what routes would work best for everyone. Many letters have already been sent out to environmental entities, counties, municipalities, etc. to help identify areas to avoid including things such as: cemeteries, center pivots, airports, etc. The main point here is that these companies are looking to work very closely with communities to make sure they minimize the impact these lines may have. Once several routes have been selected they will be sent to the PUCT via a CCN at which time members of the public would have the opportunity to go to the PUCT with concerns and insight.

• Acquiring Right of Way (ROW)

Once the PUCT has approved the company's CCN and selected a route the company will then go about securing the necessary ROW. The companies will have the land appraised and will then go about purchasing the land right out or with an option; the most typical type of purchase agreement will be a land easement to last the life of the line. Land will be acquired for substations, access roads, foundations, and the lines themselves. Sharyland's represetative said that they will be sending a group out to visit with landowners post-construction to make sure they is no aviodable damage done to the land.

• Dispatch priorities vs. open access systems
  

One big question that seems to arise with the build out of transmission is, who gets to online and who gets to do it first? Currently under docket number 34577 the PUCT is trying to decide how to handle this situation. Some wind developers would like to see priority given to those who formally participated in the CCN application process and other support an open access system. Those who are actively involved in the process would be asked to post collateral with 45 days of transmission service providers (TSPs) CCN application which would cover cost of transmission improvements. These developers would be refunded if they went online within a year after the system is ready. There is also they issue as to whether or not it is even legal to give priority to one kind of developer, in this case wind. Developers are hoping to get some certainty on this matter sometime this year.

For More information about either of these companies visit thier Web sites at:
www.sharylandutilities.com
www.crosstexas.com

A Transmission Rundown

Transmission Summit Overview

The Transmission Summit held in Sweetwater, Texas on Thursday April 9^th featured an array of speakers representing many of the companies chosen by the Public Utility Commission of Texas (PUCT) to build transmission lines throughout the state. In addition to those companies building lines within the Competitive Renewable Energy Zones (CREZ), other speakers included representatives from Southwest Power Pool, Electric Power Engineers and Golden Spread Electric Cooperative.

BACKGROUND

The PUCT began working on the development of a CREZ a couple of years ago in order to help foster wind energy development in the state and most specifically within the Electric Reliability Council of Texas’ (ERCOT) power grid. The idea was basically created in order to break the “chicken and the egg” deadlock that many wind developers were facing. The creation of these zones would allow for more transmission lines to be built to carry energy created by wind farms. Several scenarios were developed but the PUCT eventually decided upon scenario 2 which would essentially allow for around 18,000 MW of wind energy to go online.

After deciding on a scenario the PUCT then chose companies to build numerous transmission lines and substations throughout the state. Fourteen companies in all were chosen to be involved in construction. Please see the map below for the breakdown of scenario two, including the general vicinity of where the lines will be placed and who will be building them.

Source: Texas Wind Energy Clearinghouse (Transmission Summit)

THE PROCESS

The construction of these lines will take place based on which category they have been designated under. Those categories are: default, priority and secondary lines. Default lines consist of already existing lines that will be rebuilt. Priority lines are those the PUCT felt were the most urgent. These lines will be built by Oncor and the Lower Colorado River Authority (LCRA). Priority lines are indicated on the map above. The rest of the lines are considered secondary lines.

As far as the timeline on these lines goes, each company must submit a Certificate of Convenience and Necesssity (CCN) to the PUCT indicating the routes in which they intent to build their lines. CCNs for default lines are to be filed by June, priority by October and secondary will be sometime the first half of next year. Before submitting their CCN the transmission companies will conduct studies and contact landowners who may be affected by the construction of the line. The company will then define an area and identify several geographically diverse routes in which they could build the proposed lines. Each company will be conducting community meetings in their area throughout the process and will notify landowners of potential routes.

After a CCN is filed the PUCT has one year (although their goal is six months) to decide on which of the various scenarios submitted is best. Once the CCN is approved then the company will begin discussion with landowners for Right of Way (ROW).

Community members will see many immediate as well as long term benefits from the construction of transmission lines in the area including, taxes paid to local communities, the creation of construction, operations and management jobs, significant payments made to landowners with the expansion of wind development in the area as well as environmental benefits.

All of the companies building transmission in the state may have different timelines for completing their projects, but the PUCT would like to see all construction complete by 2013.

SHARYLAND

The construction of transmission lines and substations in our immediate area will be completed by Sharyland Utilities. Sharyland is a privately owned, Texas based transmission and distribution service provider. They are responsible for building four collection stations and 253 miles of transmission lines in Armstrong, Briscoe, Castro, Carson, Deaf Smith, Dickens, Floyd, Motley, Randall and Swisher Counties.

Their tentative schedule for construction was broken down in this way, but is all subject to ERCOT’s plans. They plan to submit their CCN to the PUCT in the first or second quarter of 2010 and plan on receiving approval from the PUCT by the third or fourth quarter of the same year. After receiving approval they will begin working on ROW acquisition, engineering and design of the lines and hope to begin material procurement in the third quarter of 2010. Construction is slated to begin as soon as they receive approval of their routes by the PUCT. The line which is planned to come through the North East corner of Floyd County should be completed in the second quarter of 2012 if all goes as planned.

You can find out more about Sharyland and their current projects on their Web site at www.sharylandutilities.com. They have also set up a toll free number for interested members of the public to call in for more information. If you have questions or concerns and would like to speak with a Sharyland representative call 1-866-354-3335.

SOUTHWEST POWER POOL

Outside of ERCOT Southwest Power Pool (SPP) is the other electric grid which has a footprint in Texas. SPP is a regional transmission organization who, unlike ERCOT, is regulated by the Federal Energy Regulatory Commission (FERC). Their purpose is to help ensure power reliability, adequate transmission infrastructure, and competitive electric wholesale prices in their region. SPP is based in Little Rock, Arkansas and has members in nine states, see image of their footprint below.

Source: SPP

SPP is not directly involved in the CREZ process, but their plans for the future of transmission will also help to make it feasible for wind developers to bring their projects to our area. While the SPP is not involved in the acutal construction of transmission they do have a plan for how it should be built out. As a part of SPP’s Transmission Expansion Plan (STEP) they hope to have 285 miles of 765 kV from Woodward EHV (Western Oklahoma) to Tuco EHV (North Western Texas) built. The Tuco station is located just north of Abernathy. This line would be part of a larger “backbone” line would extend all the way up to Kansas and would set up our area for potential connections to the line. EHV is short for Extra High Voltage and the EHV Overlay that the SPP is proposing would be a collection of 500+ kV projects that would be added to the existing system, ultimately reducing backup on the grid. For more about the EHV Overlay visit the SPP Web site. You can read the STEP report in its entirety here.

Right now these plans to build out transmission are just that, plans. The next step is for the SPP to figure out how costs for these lines will be allocated. Visit their Web site at www.spp.org for more information.

CONTACT INFORMATION

Several of the companies who were present at the summit offered ways in which you can contact them directly for more information:

Sharyland Utilities
Visit their Web site at www.sharylandutilities.com
Call their toll free number 1-866-354-3335

Oncor
Questions about transmission can be emailed to transmissionprojects@oncor.com

Lower Colorado River Authority
Visit their Web site at www.lcra.org

Cross Texas Transmission
Web site is under construction but should be up soon at www.crosstexas.org

Electric Transmission Texas
Visit their Web site at www.ettexas.com