The Joplin Globe, Joplin, MO

Local News

October 11, 2008

Missouri voters to decide renewable energy mandate

By Susan Redden

sredden@joplinglobe.com

Investor-owned utilities in Missouri will have to generate more power from renewable sources if voters approve Proposition C on Nov. 4.

The Empire District Electric Co., which serves Joplin and much of the area, has taken a neutral stance on the proposal. It is poised to meet the upper end of the standard as early as next year or is exempted from certain provisions of it. The Missouri Energy Development Association, which represents investor-owned utilities in the state, also is neutral, but has expressed concern that the requirements for green power could push up utility costs.

The measure, called the Clean Energy Initiative, has been endorsed by Kansas City Power and Light.

But proponents of the ballot measure point out that rates, as a result of the initiative, will not be allowed to increase more than one percent a year.

“Twenty-six other states already have this requirement, and it has had little or no impact on consumer electric bills,” said Erin Noble, energy policy coordinator with the Missouri Coalition for the Environment.

The measure requires investor-owned utilities to generate or purchase electricity from renewable energy sources, such as solar, wind, biomass and hydro power, at the rate of at least 2 percent in retail sales by 2011, increasing to at least 15 percent by 2021.

Empire for the last three years has had a contract to purchase energy produced by the Elk River Wind Farm near Beaumont, Kan. The wind farm can provide about 8 percent of Empire’s needs. And with the completion of the Meridian Way Wind Farm near Concordia, Kan., Empire officials said the utility should meet that 15 percent mandate next year.

Currently, Empire is selling that wind-generated power as green credits, company officials said.

“In order to achieve the requirements set forth by Proposition C, we would just need to retain some of the renewable energy credits we’re selling now,” said Emily Stanley, an Empire spokeswoman.

She said the requirement would have no immediate impact on Empire’s rates, but longer term “we would have to see what the strategy would be.”

Rates go down?

Noble said studies done for the coalition suggest rates “actually will go down, eventually” in part because of expectations that carbon emissions will be taxed.

“We expect this policy to save Missouri residents a cumulative $331 million over the next 20 years,” she said.

The mandate, she said, also would help “jump-start” the renewable energy industry, create jobs and invigorate the economy, “especially in rural parts of the state where wind and biomass operations are located,” she said.

Currently, 82 percent of the electricity generated in Missouri is produced at coal-fired plants, which have been linked to air pollution and global warming.

“It causes asthma and other breathing problems, and burning coal produces mercury to the extent that women and children are warned not to eat fish caught in Missouri streams,” Noble said.

While Empire is officially “neutral” on the issue, Stanley said there are shortcomings with it.

“Now, it only affects investor-owned utilities. If it’s good for any utilities, it should be good for all, including cooperatives and municipal utilities,” she said.

The latter two are exempt under the language of the proposition. Investor-owned utilities provided power to about three-quarters of the state’s residents.

And, under legislation passed this year and signed by Missouri Gov. Matt Blunt, Empire is exempt from solar requirements in the bill because it will meet the green energy mandate by early next year.

Empire officials have said they think wind is a better, less expensive option than solar.

Tony Wyche, a spokesman for the initiative, said passage of the measure will help Missouri “create jobs in clean-energy technology, which are high-quality, high-paying jobs.”

‘Long overdue’

He said the measure also has no organized opposition and is attracting support from Missouri residents “who understand the economy and environment will benefit.”

“People in Missouri feel like it’s long overdue that they should have a say on where their energy comes from,” he said.

Supporters tried to get the requirement through Missouri’s General Assembly for eight years, before circulating petitions to get the measure on the ballot.



Other states

Among 26 other states with Renewable Energy Standards, the two most demanding are New York, requiring a 24 percent share by 2013, and California, requiring 20 percent by 2010.







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