Alliant proposal: Equity, efficiency failure

The proposed Alliant rate increase is a sweeping denial of equitable treatment of customers and a rejection of environmental responsibility.

Alliant Energy, called Interstate Power and Light (IPL) in Iowa, is proposing a nearly 25 percent increase in its basic service rate. Since Alliant divides its charges to customers into energy, transmission, and basic service, the total bill increase will not be that large but it is a pretty big increase.

Since electric utilities are monopolies, some entity needs to “regulate” their actions. In Iowa this is the role of the Iowa Utilities Board (IUB), which must decide on the rate increase. The IUB can certainly reduce the proposed rate and can change the way IPL wants to charge individual customers.

Several electricity users in the Decorah area (the city of Decorah, Luther College, Winneshiek Energy District, and others). formed the Decorah Area Group (DAG) and intervened before the IUB to challenge the proposed rate increase. I wrote testimony on rate design for the DAG, and the following is the conclusion of my testimony:

It is apparent to me that IPL’s overriding desire is to sell more electricity at exactly the wrong times. The Company proposes in this case to:

•    Raise the Basic Customer Charge, which is already much higher than that of the other investor-owned electric company in the state; [$13.00 compared to $8.50 charged by MidAmerican Energy. Low-income customers use less electricity so boosting this charge hits them hardest.]

•    Reintroduce declining block rates during the summer peak period, which will likely cause IPL to add capacity for its system; [few utilities give large residential users a break for using more electricity in the summer and so again the smallest users — low income and conservationists are hurt again by this proposal.]

•    Discourage the production of solar power, when encouraging development of solar generation might help IPL to avoid adding generation do accommodate the super peak days; and,

•    Refrain from introducing a “super” off-peak rate that could redirect demand away from peak periods. [Their new meters allow them to make electricity really cheap around midnight so customers could charge electric cars or big capacity water heaters, but they aren’t doing it.]

These proposals, combined with IPL’s actions to convince the Iowa General Assembly to completely bypass the Board and greatly dismantle the state’s energy efficiency programs [in 2017], compels the conclusion that IPL wants to sell more power — not less — especially during the times of the day when IPL’s system is more costly to operate so that IPL will reap more profits.

As noted in the testimony, the Alliant/IPL proposal goes backward on both equity and energy efficiency, which are responsibilities of the IUB to ensure.

IUB’s own mission states that it “regulates utilities to ensure that reasonably priced, reliable, environmentally responsible, and safe utility services are available to all Iowans.” Note — “all Iowans.” This is IUB’s own assurance to even the least-powerful among us that they will be protected in the monopoly marketplace for electricity.

State law [476.1(5)] demands that the IUB “promote the use of energy efficiency strategies by gas and electric utilities required to be rate-regulated.” The Alliant proposal, by contrast, is a recipe for energy inefficiency.

The IUB has limited latitude to deny this rate increase. However, this rate increase is such a sweeping denial of equitable treatment of customers and a rejection of environmental responsibility that they might. The decision will only come after months of more filings and hearings. Stay tuned.

David Osterberg is co-founder and former executive director of the nonpartisan Iowa Policy Project. He is a former state legislator and is IPP’s lead researcher on energy and environment issues.

dosterberg@iowapolicyproject.org

Science change and climate change

Science is ever changing. It is now possible to show that some of the increase in rainfall from storms and consequent flooding has a human fingerprint.

Science is getting better, and that is bad news for climate change deniers.

Only two years ago when I last taught a climate change course at the University of Iowa, I informed students that claiming any extreme weather event came from changes in the climate was too uncertain.

Now, that view needs revising. After working with Dr. James Boulter, professor of Chemistry in the Watershed Institute for Collaborative Environmental Studies at the University of Wisconsin–Eau Claire, I have learned more.

The Iowa Policy Project worked with the Environmental Defense Fund to have Professor Boulter produce a report on climate change and flooding in Iowa. Working on this paper, I read material from the last three years that that brought me up to date on science’s ability to attribute extreme weather events to greenhouse gas effects on the climate.

Here is one source for my new understanding of what is known as “event attribution.” It is a statement from a report of the state of science relating to climate change and its physical impacts, in the Fourth National Climate Assessment (NCA4), by the U.S. Global Change Research Program (USGCRP).[1]

“…(T)he science of event attribution is rapidly advancing, including the understanding of the mechanisms that produce extreme events and the rapid progress in development of methods used for event attribution.”

Attribution has also been a subject addressed in a recent report of the National Academies of Sciences, Engineering and Medicine.[2]

Science is ever changing. It is now possible to show that some of the increase in rainfall from storms and consequent flooding has a human fingerprint. We should not deny that, even as fossil-fuel supporters recklessly deny the existence of climate change or that we can already see its effects.

As Professor Boulter stated in his conclusion to the IPP report, “Now, as national politics begin to inundate Iowa’s media landscape — much as the floodwaters overran the physical landscape — it is crucial that science-informed discussions of policy responses to climate change be prominent in our personal conversations, candidates’ political statements and debates, and our community discussions across all forms of media.”

 

[1] Fourth National Climate Assessment (NCA4), by the U.S. Global Change Research Program (USGCRP). https://science2017.globalchange.gov/chapter/3/

[2] National Academies of Sciences, Engineering and Medicine: “Attribution of Extreme Weather Events in the Context of Climate Change,” 2016. https://www.nap.edu/read/21852/chapter/1#x

David Osterberg is founder and former executive director of the nonpartisan Iowa Policy Project and is IPP’s lead researcher on the environment and energy issues. He is professor emeritus of occupational and environmental health at the University of Iowa.

dosterberg@iowapolicyproject.org

Ignoring still-serious water threat

Last year, we issued a report on toxic algae and three weeks later the city of Greenfield lost its drinking water. Now we see that the Environmental Working Group has found no improvement. How long before another town faces the same problem Greenfield did?

Iowa detail of map in report showing water test results.

About a year ago the Iowa Policy Project released a report on cyanobacteria in drinking water supplies and recreational waters. A new report from the Environmental Working Group shows things have not gotten better.

Microcystin and other cyanotoxins are still not regulated by the U.S. Safe Drinking Water Act. Thus, few drinking water systems test for them. These very dangerous natural chemicals are still on EPA’s candidate list for regulated contaminants but they have made it no further.

When it comes to beach monitoring for the same substances, Iowa still does not use the EPA’s recommended action level and prefers to use on more than twice as high, making any notice to beachgoers of the presence of microcystin less likely.

In high amounts cyanotoxins can make you sick and cause serious long term damage to human health. There are many reports of dogs dying after playing in ponds and licking their fur after.

The EWG report also found further evidence of what we reported last year in our report.

“The late summer months are usually the peak of the algae bloom season, though recent outbreaks are starting earlier and lasting longer. Increased rainfall and rising temperatures caused by the climate crisis are exacerbating the issue.”[1]

Later peaks in blooms and toxins means that the beach monitoring system will not see them since it ends in Iowa on Labor Day. True fewer people will be at beaches, but water supplies are vulnerable later into the year and no one is looking for microcystin in October.

Three weeks after IPP released its report in June 2018, the city of Greenfield, Iowa, closed its drinking water system for about a week because microsystin got in finished water. One wonders if in another three weeks after Thursday’s release we might see another town in the same predicament.

[1] Environmental Working Group, Aug. 8, 2019: “Report: Toxins From Algae Outbreaks Plague Hundreds of Lakes in 48 States,” https://www.ewg.org/release/report-toxins-algae-outbreaks-plague-hundreds-lakes-48-states

David Osterberg is former director and currently lead environmental researcher for the nonpartisan Iowa Policy Project.

dosterberg@iowapolicyproject.org

Iowa: Better sorry than safe

The Iowa DNR says you as a beachgoer have no need to know if toxins in the water might have reached a level that the U.S. EPA believes demands caution.

Iowa environmental officials are taking an unusual position for people charged with protecting the citizens of the state: “Better sorry than safe.”

No, that’s probably not the message you heard from Mom or Dad.

But it is the effect of the Iowa Department of Natural Resources (DNR) position not to follow tougher rules on water quality to guide warnings to beachgoers.

DNR has decided that if toxins in water reach a risk level suggested by the U.S. Environmental Protection Agency (EPA) as right for a warning, that is on a need-to-know basis, and you as a beachgoer have no need to know before you dive in, or before your child or dog splashes around, maybe drinks a little of the lake in the process.

Iowa is sticking with a more relaxed standard, of 20 micrograms of the microsystin toxin per liter, instead of the EPA-recommended 8 microgram level.

The Gazette story by Erin Jordan comes almost a year to the day since an Iowa Policy Project report by Carolyn Buckingham, Mary Skopec and myself showed how little the state is doing to address increasing problems with cyanobacteria, or blue-green algae, in Iowa waters. The report noted DNR testing had shown increasing numbers of beach advisories from 2009 through 2016, and increases in the number of lakes with advisories against swimming, due to microsystin levels — 17 of the 39 monitored beaches (graph below). And that was recorded under the weaker standard of 20 micrograms per liter.

Microsystin advisories for Iowa lakes, 2006-16Climate change and increased nutrient runoff contribute to increased algal blooms at the heart of the problem. If the number of advisories and lakes affected were to rise even more because of tougher standards, that likely would drive more Iowans to push for changes in policy to address the causes.

Safe might not be the top priority.

Sorry.

David Osterberg is lead environmental researcher and former executive director of the nonpartisan Iowa Policy Project, and professor emeritus of occupational and environmental health at the University of Iowa. dosterberg@iowapolicyproject.org

Courageous words about ‘timid’ funding

Even a farm group may face consequences for daring to challenge Iowa’s poor funding of water quality efforts.

Even farm groups dare not question the timid funding of water quality

Recently the Cedar Rapids Gazette reported a slapdown of the Iowa Soybean Association by the Iowa Legislature.

Thanks to reporting by Erin Jordan of The Gazette, we learn now that a year ago, legislators were angered by comments from Iowa’s main soybean group that Governor Kim Reynolds’ first bill as governor — new money for water quality — was “timid.”

Partly because of that remark, the Gazette reported, legislators stuck back against the group by taking $300,000 in state funds away. Ironically, those funds had gone for research on water quality improvement.

In her article, Soybean group pays price for calling water bill ‘timid’, Jordan reported:

The Soybean Association had received $400,000 a year in state funding for the On-Farm Network, a program that helps farmers gather data to better manage nitrate fertilizer application on their cornfields. More precise application means less money spent on fertilizer and less excess nitrate washing into lakes and waterways.

IPP used some of the data collected by the Iowa Soybean Association in our recent report on water quality funding by the state. We called our paper “Lip Service” since that is about all Iowans are getting from their top leaders in response to widespread concerns about water quality in the state.

The Iowa Soybean Association research was very good. We found it to be the best out there on what improving nutrient pollution from agriculture was likely to cost. Now, that research has been curtailed because that organization had the temerity to tell the truth about the big talk and little money the state gives to improve water quality in the state.

To read our report or a one-page executive summary, visit the Iowa Policy Project website at http://www.iowapolicyproject.org.

David Osterberg is lead environment and energy researcher at the Iowa Policy Project, which he co-founded in 2001.

dosterberg@iowapolicyproject.org

Bill Stowe: Water quality hero

Bill Stowe’s courageous fight for clean water lives on.

160915-Stowe-130333crop
Bill Stowe speaks at IPP’s 15th anniversary event in September 2016. (Photo: Lance Coles)

Bill Stowe, dead at 60. The average American male born in 1959 should live about another 10 years. But there was nothing average about Bill Stowe.

The average male does not get three advanced degrees from three different institutions. The average American, male or female, does not take on the strongest and most powerful to change public debate, and force accountability where it was lacking.

Bill ran the Des Moines Water Works (DMWW), the largest supplier of clean drinking water in Iowa. It was a surface water system. That means it had to deal with the serious pollution that unrestrained agricultural practices put into Iowa waters — a costly and unsustainable proposition.

Realizing he could not continue to pass on the costs of treating that water to his customers alone, he took action — courageous action in an agricultural state — to either get the polluters to stop, or at least to pay for the problems they are causing.

The case of the Des Moines Water Works vs. three Iowa counties with drainage districts that were some of the main polluters of the Raccoon River went to federal court. It scared agricultural organizations like the various state Farm Bureau federations.

As Stowe and DMWW fought “dark money”-funded interests in court, he gained both foes who favor the status quo and allies who shared either the lawsuit’s goals or the desire to help Iowans see what big industry was up to. Others joined the fight, including one small-town journalist who won a Pulitzer Prize, and activists who keep his fight alive today.

Bill lost his case in court, but pushed water quality more squarely into Iowa’s political and policy spotlight, forcing politicians including Terry Branstad to concede a need to do something — even though their actions have fallen short.

Bill Stowe was generous with his time and talked to groups about treating water to make it safe. He taught a class of mine.

160314-Stowe-DO classThe picture above was from three years ago when we visited the treatment works he served. He spoke often to groups about his passion for clean water all around the state — including as the featured speaker for the 15th anniversary of our organization in 2016.

When IPP considers what papers to investigate we often ask knowledgeable people around the state for thoughts on what would be helpful to better inform public debate. Bill had suggestions for our latest series of reports on water quality.

When IPP researcher Natalie Veldhouse and I met with him and his DMWW colleague Laura Sarcone in November, they had good suggestions that helped us in the development of our latest paper. When I sent a copy of that paper to Laura for her thoughts, I did not know that Bill was already in hospice.

Bill died too soon. His fight for clean water remains important for all Iowans.

2016-osterberg_5464David Osterberg is co-founder, former executive director and lead environment and energy researcher for the Iowa Policy Project. dosterberg@iowapolicyproject.org

Monopolies strangling solar, small business

Monopolies would destroy small business who make their money at the local level by insulating homes or installing solar panels.

In times like these, it is helpful to recall what our nation learned from the leadership of Teddy Roosevelt, who went after trusts and monopolies because he knew they used their huge size to strangle other businesses.

Iowa could use that kind of leadership. Our Iowa monopoly electric companies are strangling small businesses again. As monopolies they are guaranteed profits, only because of efficiencies seen as a public benefit in the production and distribution of power. And to make sure they do not abuse that power, they are regulated by a fairly powerful state regulatory agency, the Iowa Utilities Board (IUB).

Solar energy gives citizens control over part of their lives. Small customers who could not operate a coal plant can put up solar panels. MidAmerican Energy (MidAm) sees that and feels threatened. Even though only 750 of their 770,000 customers have solar panels on their property, MidAm wants this market to itself.

So now, MidAm is trying to bypass its IUB regulators by going to the Iowa Legislature to get what they want. MidAm’s approach is a job-killer for solar contractors and a few manufacturers in the state. Legislation the company is pushing would strip those small competitors of most of their market, reducing or even removing the benefits to people who chose to install solar panels.

In short, MidAm wants to put a tax on the sun.

Its proposed changes greatly reduce the incentive to generate one’s own electricity. As it works now, customers with solar panels sometimes produce more electricity than they use. This is often during the middle of a sunny day in the summer when electric prices are at their highest.

Currently, these customers are compensated for the excess energy they provide back to the grid at the same price they pay the electric monopoly. HSB185 would allow MidAm or any investor-owned utility to charge extra fees, or cut compensation, to homeowners and businesses that have clean energy systems. This would discourage solar projects by making them cost-prohibitive.

MidAm — like all utilities — charges a fixed, mandatory fee each month to all customers, which proves false MidAm’s principal argument that the clean-energy customers aren’t paying their share for lines, transformers and billing expenses of the company. Already, they pay.

But MidAm at least is consistent in its attempts to undermine smart-energy choices and the role of small users and businesses in providing it. We saw it last year as well, when MidAm and Alliant Energy successfully bypassed the IUB by dismantling Iowa’s requirement that they help their customers be more efficient. Previously, electric monopolies rewarded a customer who bought a more efficient refrigerator, or efficient light bulbs, or put in more insulation. No more.

Now MidAm is using the same game plan. Go to the Legislature and convince the members to allow monopolies to destroy small business who make their money at the local level by insulating homes or installing solar panels.

What would Teddy Roosevelt have done? He would stand up to stop utilities’ bullying of fair competition and the freedom of citizens to generate their own electricity. Small businesses, conservationists and citizens who just want more control of their lives are looking for that kind of champion.

David Osterberg is lead environment/energy researcher, founder and former executive director of the nonpartisan Iowa Policy Project in Iowa City.

dosterberg@iowapolicyproject.org