Minnesota Power to offer wind-generated energy
Copyright 2000, Duluth News-Tribune, Minn.
Tuesday, March 28, 2000
By Ron Brochu, Duluth News-Tribune, Minn.
People who yearn to obtain electric power from renewable energy sources soon may have that option without erecting generation devices in their back yard.
Minnesota Power Inc. has announced plans to join the growing number of utilities that provide wind-derived electricity. MP and Great River Energy of Elk River, Minnesota, have signed a 15-year contract to purchase power generated by three new windmills under construction at the Chandler Hills Wind Farm near Worthington, Minnesota. Subject to approval by the Minnesota Public Utilities Commission, the deal will allow MP customers to purchase renewable wind power in 100-kilowatt-hour blocks by the end of this year.
Because wind generation is more expensive, customers will be charged a premium of approximately $2 per 100 kilowatt hours. On average, MP residential customers consume 750 kilowatt hours of electricity each month, which would add from $14 to $16 to their bill.
"Some of our customers want to buy renewable wind power even if it costs more," said Bob Edwards, MP executive vice president. "We don't know how many customers will subscribe, but it's important to give them the option."
A growing number of utilities nationwide are beginning to offer the wind-power option. More than 1,000 megawatts of new wind generation capacity have been installed during the past 20 months, according to the National Wind Coordinating Committee, a Washington, D.C.-based group that represents a coalition of utilities, state legislatures, consumer advocacy groups and wind equipment manufacturers.
Although "green rates" are 23 percent higher, there's a waiting list for wind-generated electricity in Traverse City, Michigan, said Tom Miner, administrative assistant at the city's municipally owned utility.
Subscribers to the program, offered there since 1996, include 145 residences and 26 businesses from a customer base of 9,000.
A survey revealed one-third of MP residential customers would purchase wind-derived power, said spokesman John Heino.
"There might be a difference between the number of people who respond positively to a survey question and ones who actually write a check.
The future of the program will depend upon the actual response," he said.
The partnership with MP represents the second wind-generating venture for Great River Energy, said Kandace Olsen, communications manager.
"Initially, the response to phase one, which we launched in December 1998, was slow. Then it absolutely caught fire," she said. "We sold out all 100-kilowatt-hour blocks within six months."
Wind is not the only alternative energy source being used regionally to generate electricity. Last November, Wisconsin Electric reached an agreement with Waste Management Inc. to fuel generators with landfill gas, creating 7.5 megawatts of new power. Waste Management landfills have produced enough electricity to save 138.6 million gallons of oil, according to Wisconsin Electric.
Windmills will not replace traditional generation methods, Miner said.
"We'd need 300 of them to produce what we use in Traverse City. At that point, it becomes a visual pollution problem," he said.