19th annual Headwaters examines energy in a complex society

This is the second installment of a two-part series on the future of energy use and production in the Gunnison Valley and beyond. Last week focused on an emerging energy crisis, and the efforts a local power supplier, Tri-State Generation and Transmission, is taking to meet the new demand.

On Thursday, November 13, an appeals panel of the Environmental Protection Agency blocked a permit for a new power plant in Utah, and placed the decision about whether or not to approve the coal power plant in the hands of president-elect Barack Obama.
Energy industry figureheads say that decision could determine the fate of hundreds of other proposed power plants across the country.
At the behest of the Sierra Club, the EPA appeals panel decided that the agency’s Denver office did not take climate change into proper consideration when it approved a permit for the Bonanza Power plant in Utah without adequate controls for carbon dioxide. The plant is being proposed by Deseret Power Electric Cooperative, a coalition of a half-dozen cooperatives.
In its ruling the EPA appeals panel said climate change is a matter of national importance “that has implications far beyond this individual permitting process.”
Many energy analysts believe the EPA will wait to make a move until the agency is under the guidance of a new presidential administration
During the 19th annual Headwaters Conference in Gunnison on November 8, several guest speakers cited the importance of Obama’s election in the future of energy in America.
Obama’s energy plan aims to ensure 10 percent of electricity comes from renewable sources by 2012, and 25 percent by 2025. The president-elect’s energy plan also calls for implementing a cap and trade system on carbon emissions, to reduce greenhouse gases 80 percent by 2050.
Headwaters speaker Randy Udall, who is the former director of Aspen’s Community Office for Resource Efficiency, said power companies currently reliant on coal would have to either shut down their coal operations or employ carbon capture technology at every facility in order to meet the president-elect’s reduction goals.
Udall said that would include Tri-State Generation and Transmission, which currently supplies most of the power flowing through Gunnison County Electric Association’s lines.
About 70 percent of Tri-State’s base-load power generation comes from coal power plants, said Tri-State senior manager of communications Lee Boughey.
The company has plans to build additional power plants to meet a rising demand for energy. Two proposed coal plants in Holcomb, Kansas were recently denied permits by the Kansas Department of Public Health, although Tri-State is appealing the decision. A third plant in southeast Colorado is still in the planning stages, and may be based on coal or nuclear power generation, according to the company’s website.
A November 10 report by Innovest Strategic Value Advisors estimated that a carbon tax or cap and trade system under the Obama administration would cost Tri-State an additional $217 million annually to produce power from a new coal power plant. The report considers Tri-State building a traditional coal-fired power plant, and does not specify if carbon capture technology would be used.
Clean Energy Economy for the Region communications director Heather McGregor says many people may fear making an investment in renewable energy, but if the cost of traditional power sources continues to rise, there’s no downside. “It’s going to stabilize energy costs into the future. It’s going to create millions of new jobs. It’s going to create investment opportunities. We’re going to lower our dependence on foreign oil. Oh, and by the way, it will lower our greenhouse gas emissions,” McGregor said.
Udall said the challenge in president-elect Obama’s energy plan will be to maintain prosperity. “Let’s say we want to preserve prosperity. We have to be very smart what kind of investments we make in a new energy supply. And those investments have to have a high energy return,” Udall said.

Change in the works
Dan McClendon grew up on a farm in southwest Colorado. Now he’s the general manager of the Delta/Montrose Electric Association (DMEA), a rural power cooperative that serves 30,000 customers. “A few years ago I had my own understanding about what green power meant,” McClendon said. “I thought it was a John Deere 4020.”
Last year, DMEA was one of two electric co-ops that did not sign a contract renewal with Tri-State Generation and Transmission to provide power past 2040. McClendon says DMEA was told by Tri-State that their consumers could be responsible for a rate increase due to the additional cost of securing loan for a new coal power plant. “We said, bring it on. We don’t think it’s going to happen… So far, nothing has happened,” McClendon said.
Gunnison County Electric Association (GCEA) did sign the contract, and at the time board members said the action would provide the best benefit to local consumers by keeping costs low, and would ensure that GCEA had a continued voice on the Tri-State board of directors.
Both McClendon and GCEA CEO Mike Wells commended the recent efforts Tri-State has made in pursuing renewable energy and promoting conservation.
“I will say Tri-State, over the last few years, has made marked change. But a few years ago there were some real frustrations,” McClendon said.
Boughey, who joined the Tri-State team in 2006 after working for the National Renewable Energy Laboratory, said, “I have seen tremendous change in the way Tri-State and our members look at renewable energy sources.”
Boughey said Tri-State is now planning a solar power facility in New Mexico that would provide a base load power supply, similar to a coal power plant. Boughey also said Tri-State was active in permitting a large power transmission project that would connect local users to new renewable energy sources. The plan, called the Regional Plains Transmission Project, would create transmission lines in southwest Colorado, where solar resources are strong, to the eastern plains, where wind resources are prevalent.
But the decision not to sign the contract extension marks a continued change at DMEA. Fifteen years ago, McClendon says, DMEA relatively ignored the public. “They were told to trust the board. They didn’t need to come to meetings and didn’t need to see the minutes,” he says.
But in the past 15 years the majority of the DMEA board of directors was either voted off or kicked off McClendon says.
Now, McClendon said, DMEA is more open to the public and has established a new vision, “We energize our communities,” promoting renewable energy and energy efficiency.
“We aren’t the lowest cost. We are focusing on what our members want,” McClendon said. “DMEA is not all that interested in investing money in wind farms outside our territory. Our main focus is what can we generate in Montrose and Delta County.”
 Wells says GCEA is also looking at new power generation possibilities locally. He cited a current effort GCEA is making with the local water conservation district to conduct a hydropower feasibility study at the Taylor Dam. With ample water resources in Gunnison County, Wells thinks small hydropower projects hold lots of potential for the future. He also said solar power was abundant locally, but people shouldn’t expect GCEA to install solar panels and new insulation on their homes. Individual consumers would need to make their own investments. “You can’t just expect utilities to do it all,” Wells said.

Hurdles
“We’ve learned we need to make drastic reductions in carbon emissions and greenhouse gasses. We need to have a drastic reduction in our use of fossil fuels, and far better stewardship of fossil fuels,” McGregor said. “So what’s keeping us from doing what we know we should do?”
She gave a list of reasons, including lack of information, taking personal responsibility, political will and policymaking, interest from the private sector, and cost.
“Most of us will say, I can’t make these changes because I can’t afford it. It costs too much to buy that energy-efficient refrigerator or buy solar panels, insulate my house, buy new windows. The up-front cost is large. The return on investment may be two years out, or it may be 12 to 15. That’s a big barrier,” McGregor said.
She said another hurdle is educating the public about making investments in energy efficiency and renewables. “Where do I start? How do I lower my carbon footprint? Where am I going to get the most bang for my buck? Who can I trust to buy and install these things?” McGregor said. “People need assistance. They’re busy. They don’t have enough time in their lives and there’s a hassle factor to making this changeover.”
McGregor said that’s where groups like the local Office of Resource Efficiency come into play. “That’s where they’re going to make a big difference… with homeowners and businesses helping them make their energy change.”
One audience member said he didn’t see much effort from his local power provider in promoting energy efficiency.
 Wells said GCEA includes information about opportunities for energy efficiency and renewable energy investment in their monthly newsletters, on electric bills, and in doorstep information packets. “That’s one of the challenges we have. Our challenge is to get that out in a format people will read,” Wells said.
McClendon said it can be tough for electric co-ops to make big investments in renewable energy, and continued investment would require the support of local governments and communities. “As a distribution service we’re really hamstringed sometimes when we have these great ideas. We’re a conservative organization. We have board members that get elected. And if we spend a lot of money, maybe we spend too much and the rates are too high and then the board is gone. It’s a difficult culture.”
Historic Routt County director Townsend Anderson said green energy needed to be an American ethic, not a policy of a power company.
He said in the 1960s and 1970s when environmentalism was first taking shape, its proponents made the mistake of framing it as an issue to be solved. Anderson said that tactic has enjoyed some success, but it gives politicians choices and ways to avoid needed changes. Anderson said, “The mistake was not framing environmentalism as an ethic, a core value that affects all our actions as human beings in a society.”

i-Green
International Renewable Resources Institute director Alex Eaton said investment in a clean energy future is something every American will have to make, and rather than letting power companies lead the way, he said each citizen needs to take responsibility. “Every individual, family, or community needs an energy plan,” Eaton said.
 “Those selling power shouldn’t be in charge of making people use less,” Eaton said. “The payoffs are going to be realized by the local community, and they should be the people in charge investing. You’re saving energy, making money, and reducing (carbon emissions).”
Udall referenced the investment of the people of Samso, Denmark an island community with about 4,000 residents.
In 1998 the island completely relied on coal- and oil-based power produced on the Danish mainland. Ten years later, Samso produces 100 percent of its own electricity through wind turbines and solar panels on the island.
Udall said electricity distribution in Samso is handled much the same way it is in the Gunnison Valley, through a consumer-owned cooperative.
Udall said the islanders had to make an investment of about $15,000 each to completely convert to renewable energy. But the result is Samso islanders now pay next to nothing for their electricity, and are earning money on their investment by selling excess power back to the mainland.
The citizens of Samso now take pride in their renewable energy investment, Udall said. And what’s encouraging, he said, is the people of Samso didn’t make the change to save the environment or help endangered polar bears. Samso went green to ensure the prosperity of their community.
Udall cited Soren Hermanson, a Samso resident who was the main proponent of the change to green energy, who said, “We don’t wake up thinking about polar bears. We think about doing things locally. If we do enough good things locally around the world, we may end up doing something good for the polar bears.”
Udall said building a strong community ethic and making individual efforts and investments into efficiency and renewables is the key to recognizing prosperity in the new energy future. He said, “That’s something we have to get at with a vengeance in the months and decades ahead.”