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

Solar power shines when most needed

Distributed solar is good for the environment because the electricity produced is clean. It also is likely to come just when it is needed. Let’s make sure we have the policies in place to encourage more solar.

By David Osterberg and Nathaniel Baer

The hot sun we experienced this August not only caused the local electric grid to experience high use, but it also powered solar systems distributed around Eastern Iowa.

The middle of a hot summer day is a time when almost any U.S. electric utility expects to see highest demands during the year. Aug. 11 was going to be one of those days in Eastern Iowa. Peak demands of high electricity use translate to high costs.

So, a day in advance, MidAmerican Energy asked the University of Iowa’s Facilities Management team to cut back the university’s electric load from 12:30 p.m. to 5 p.m. on Aug. 11, 2016.

The university has an arrangement with the electric utility to decrease its electric load by cutting back on air conditioning and other usage, when called upon, in exchange for a reduced electric rate. The goal is to reduce costs for all utility customers by encouraging some customers to reduce their electricity use at the highest and most expensive times.

This type of arrangement is a win-win not only for UI and MidAmerican, but also other MidAmerican customers. Utilities often make these arrangements available to large customers as well as residential customers with air conditioning.

The university has two small solar energy systems that produce electricity. The data for one of them, a 38-kilowatt solar array, showed energy production varying during the morning of Aug. 11 (below). During the utility’s predicted peak period of energy use, the solar array’s production rose quickly and continued to be strong for the remaining period.

Basic RGB

Similarly, the solar arrays at Johnson County’s Secondary Roads and SEATS campus began producing much higher levels of solar energy shortly after the 12:30 p.m. high-use period started. These panels also continued with strong production through 5 p.m., when the period ended. (below)

160822-solar-timeofday

The hot sun caused the MidAmerican system to experience a peak day but also powered distributed solar systems in the area to help meet those higher energy needs.

Distributed solar is good for the environment because the electricity produced is clean. It also is likely to come just when it is needed. Let’s make sure we have the policies in place to encourage more solar.

2016-osterberg_5464David Osterberg is an energy and environment researcher at the Iowa Policy Project. dosterberg@iowapolicyproject.org

 

OLYMPUS DIGITAL CAMERANathaniel Baer is the energy program director at the Iowa Environmental Council. baer@iaenvironment.org.

 

A version of this column ran in the Sept. 6 Cedar Rapids Gazette.

Here comes the sun

No matter how much solar power is tapped, the sun will always come up tomorrow. Solar should top Iowa’s list of energy choices.

Teresa Galluzzo

Now is the time for Iowa to go solar. Developing solar power in Iowa will create thousands of jobs and bring millions into our economy. A new report from the Iowa Policy Project and three other organizations — the Iowa Environmental Council, Environmental Law & Policy Center and Vote Solar Initiative — details the economic benefits.

Increasing our solar-powered energy and reaping these benefits is something Iowa can easily do with good state policy and private investment. Here are some reasons why:

— We have enough sun. Iowa has more solar resources than Germany, the world’s solar energy leader. [1]

— Iowa has experience leading with clean energy from developing wind power. Iowa went from under 250 MW of wind in 2000 to more than 3,500 MW in 2010. We now rank second nationally in installed capacity. [2]

— Twenty-two Iowa businesses manufacture, install or maintain solar systems. More Iowans are being trained in solar technology at community colleges and workshops across the state.

— Iowans have proved solar works. For example, Allsteel, a national workplace furniture company headquartered in Muscatine, installed panels last year to power production lines at its seating manufacturing plant. [3]

— Our competition has begun to encourage the industry. While California and New Jersey are the national leaders, our neighbors, Illinois, Michigan and Ohio, have recently set solar energy goals. [4]

— Prices for solar keep dropping. Panels cost 30 times less than they did in the 1970s. [5]

— Installing solar would have only a modest impact on electric rates. If Iowa were to install 300 MW over the next five years, and all was brought on by investor-owned utilities, the average customer’s rates would only increase by $1.70 a month.

— Solar is safe. It doesn’t need to be exported from other countries and there are no harmful byproducts.

— Sunshine is an inexhaustible resource. The more we use oil or coal, the higher the price will go. No matter how much solar power is tapped, the sun will always come up tomorrow.

For these reasons and more, solar should top Iowa’s list of energy choices.

Posted by Teresa Galluzzo, Research Associate