Madison Hiking Utility Rates: Local Power, Anyone?

Tuesday's MDL reports the Madison City Commission plans to raise my neighbors' rates for electricity, water, and garbage. on electricity, the city says, Don't blame us!

Ericsson described the municipal electric utility as only a "distributor of power" and not a producer. He said that the city had to increase its rates partly due to the increased cost of electricity that Madison was billed from its suppliers -- the Western Area Power Administration and Heartland Consumers Power District.

According to Ericsson, the city electric utility wasn't itself generating many new expenses and thereby creating bills that needed payment.

"We're buying some capital things, but not a lot of things," Ericsson said [Chuck Clement, "City Moves on Utility Rate Hikes," Madison Daily Leader, 2010.11.09].

Come now, Commissioner Ericsson. How can you blame Russell Olson and all the nice people at Heartland? Instead of shifting blame, the city could Power Forward™ with some local energy production, if it would just listen to its creative neighbors and local entrepreneurs.

Meanwhile, just how much will electricity bills rise in Madison?

In 2010, city electricity customers would pay about $105 per month for 1,200 kilowatt-hours of electrical power. With the rate increase, customers will pay about $114 for the same 1,200 kwh, an increase of $9 per month [Clement, 2010.11.09].

Quick comparison: Here at Madville Times World Headquarters, safely removed from the city limits of Madison on the western shore of freedom-loving Lake Herman, my family used an average of 1431 kilowatt-hours per month over the past year (minimum: 566 kWh from mid-September to mid-October of this year; maximum 3765 kWh during the December 2009–January 2010 billing cycle, including that cold Christmas blizzard). That's includes our heat, which is all electric. Average monthly bill with Sioux Valley Energy: $93.

More electricity, less cost. Ah, country living....

Water is cheaper in town, since the city has its own wells, while we Lake Herman denizens have our water piped in from Chester (or De Smet?) and support a network of 2200 miles of pipe. Hmm... have your own source, pay less... is that another argument for Madison to develop its own local power sources, or maybe even get gung ho like the Army and set a goal of energy self-sufficiency?
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Update 2010.11.13 08:30 CST: General Manager Mike McDowell writes from Heartland Consumer Power District's new multi-million-dollar headquarters that Madison's increased electrical rates aren't Heartland's fault, either.

Big Stone II Down? Quit Whining, Build Wind!

You can almost hear the tears trickling from the front page of tonight's Madison Daily Leader. Otter Tail took the route Warren Buffet did with six other coal plants in 2007 and bailed out of the Big Stone II coal-fired power plant. But hey, what do Warren Buffet and Otter Tail know? Big Stone II is a great project! Really! Come invest! Pleeeeaaaase!

Such is the mission Heartland sends Russell Olson out to conduct in tonight's paper. I do not envy Russ his job. Your lead investor, a reputable Minnesota utility company, backs out, and you have to convince other smaller players that they should jump in? It'll take more than a few conference calls to make that magic happen.

But you know, there is an alternative. Instead of crying over not getting a big coal plant, how about the partner utilities redirect their efforts to building more wind power? That's what Otter Tail is doing: they have added 180 megawatts of wind power in the last three years. At that rate, they could have another 360 megawatts of wind power by 2015. Big Stone II wouldn't switch on until 2015, and Otter Tail planned to take only a 250-megawatt share of that coal power.

Oh, but wind is more expensive to build, right? Again, let's check the numbers. The Leader says Big Stone II would cost $1.6 billion and generate up to 600 megawatts of electricity. (We won't delve too far into analyzing that cost estimate, though it has been noted that the five Big Stone II backers have consistently underestimated costs, including environmental costs.) Let's see... $1.6B, 600MW, divide, carry the 2... $2.7 million per megawatt.

Flip back to Thursday's MDL and Madville Times. East River is part of Basin Electric's Groton wind farm project. They'll add 99 megawatts to their portfolio for $250 million. More long division... $2.5 million per megawatt. And no coal trains. No coal ash waste. No mercury in our walleyes. Just windmills.

I welcome the energy industry experts among my readers to flesh out my oversimplified calculations. But wind turbines appear to be the cheaper, easier option: wind mills face fewer regulatory obstacles, they pose no carbon risk, and they have a shorter construction cycle—and that's not me, that's Otter Tail CEO Chuck MacFarlane saying so!

I haven't seen what Heartland's planned investment in Big Stone II is, but they plan to get a 25-megawatt share of the plant's output. So let's assume their share of the cost is proportional, say, $67 million. If I have $67 million to invest in power generation, I could run around all year trying to find big partners to help me build a really big coal plant that might start cranking out power six years from now. Or I could partner with Iberdrola or NextEra and build 25 megawatts' worth of windmills that would be generating power and revenue next year.

Whether your favorite green is hippie or dollar, this one's a no-brainer: forget Big Stone II! Build windmills now!

Heartland Updates Stonehenge in Madison

Hey, what's that on Highway 34 on the way into Madison from the east?


Is it a new architectural wonder, a modern Stonehenge to complement the great white buffalo?


Ah, it's the first walls of the new LEED-certified Heartland Consumer Power District headquarters. Very cool: not only energy efficient, but aligns nicely with the stars. Hmmm... must have been designed by pagans... watch out for weird solstice rituals!

See more pix on HCPD's twitpic account!

p.s. (20:55 CDT): Heartland's "grass" is looking a bit shaggier than six inches. What do you suppose the odds are of the city issuing a citation on that unkempt property?

New Heartland Building: Permit First, Investigate Problems Later?

Help me out on this one: a conditional-use permit for Heartland Consumers Power District's new buildings in the Lakeview Industrial Park comes up on the Madison City Commission's agenda Monday night. Local optometrist Jud Bergan attends the meeting to voice concerns about drainage from the property to his adjoining business lot. He worries that construction of the new facility might exacerbate those problems.

Here's where I need the help: the commissioners thank Dr. Bergan for bringing the issue to their attention, but they go ahead and issue the conditional-use permit, saying this meeting isn't the proper venue for addressing drainage concerns.

Hmm... I would think any permitting process relating to the construction project would be a perfectly appropriate time to deal with problems that project might cause.

Don't worry, Jud: Builder Jason Crain of Sioux Falls assures the city their work will make the drainage better. And even if it doesn't, the LAIC is rolling in dough thanks to its big federal earmark. They should be able to fix any drainage problems. Just be quiet and don't make waves... in that water in your parking lot.

SDARWS New Tenants for Heartland Building

KJAM reports good downtown news: even before Heartland Consumers Power District breaks ground on its new building in federally subsidized Dwaine Chapel Plaza on the northwest edge of the City of Lake Madison, Heartland has a buyer for its current building. Who says you can't move real estate in the current economy?

And who are the new future tenants of the Heartland building?

Lobbyists. Yes, lobbyists. The South Dakota Association of Rural Water Systems does lots of other useful work, like offering training and technical assistance to small-town and rural water and wastewater systems. But lobbyists... lobbyists! That Russell Olson's employer would pave the way for more lobbyists to move to town must gall Senator Olson to no end.

Oh well. It sounds like SDARWS will bring seven, eight, maybe ten new jobs to town. And lobbying, technical training, and the other services SDARWS provides are good professional jobs. Who needs a call center? Welcome to town, SDARWS!

Now, about those occasional fishy flavors I get from Kingbrook....

Heartland Building Green Building... But in Green Location?

Jon Hunter notes with approval Heartland Consumers Power District's planned construction of a new green building in the industrial park out on the southeast edge of town. (Nice that the LAIC can convince the organization run by the LAIC president to move out there.)

I approve as well, but must ask the following: how green is it? Heartland currently has its headquarters smack dab in the middle of town, a block from Main Street, within walking distance of City Hall, the courthouse, LAIC HQ, China Moon, Dairy Queen, the grocery store, all those fine places a busy employee might meet or eat during the day. Now they are moving to a location at the edge of town, a good mile from the same amenities. How much more gas will folks use to get to this contribution to Madison's urban sprawl?

In other words, how green is your building when everyone has to drive to get to it?

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Update 2009.03.02: Recall also that in December, when ICAP agreed to move across the street onto the old Rosebud lot, Mr. Hunter noted with approval that keeping ICAP's 40-odd workers downtown was part of a win-win scenario. So may we conclude Heartland's move to the urban fringe is a loss?

Supreme Court Saves Madison from Heidelberger Mayoral Campaign

Rest easy, Madison: Jim Heidelberger will not be your mayor. So sayeth the South Dakota Supreme Court.

No, we didn't go to Pierre to fight for our political rights, but Madison's city finance officer Jeff Heinemeyer did. As you may recall, in 2006, Heinemeyer was elected to the Madison-Volga-Groton seat on the Heartland Consumer Power District Board. However, Heinemeyer sold his Madison house a week before the election and moved out to Lake Madison, outside city limits. He rented an apartment in Madison, but that wasn't enough for the Heartland board, which refused to seat Heinemeyer. Heinemeyer went to court, and in November 2007, Circuit Judge Vincent Foley bought Heinemeyer's argument that, because he still maintained his voter registration at his in-town rental address and spent most of his time working in Madison, he could legitimately claim Madison residency. Judge Foley thus ordered the board to seat Heinemeyer, and the board did so.

I thought this opened the door for my dad, who fulfills all the residency criteria sold by Heinemeyer's lawyer Wilson Kleibacker, to challenge Gene Hexom for Madison's mayoralty in 2010.

Alas, I can quit trying to figure out how to fit "HEIDELBERGER" on the campaign t-shirts: this week, the State Supreme Court overturned Judge Foley's ruling, with three of the five justices deciding Heinemeyer really does live in Wentworth:

“Heinemeyer does not actually live in his apartment in Madison,” wrote acting Justice John Brown of Pierre. “Heinemeyer acknowledged that he does not spend any substantial amount of leisure time at his apartment, keeps few, if any personal effects at the apartment, and rarely sleeps there overnight.

“Furthermore, while Heinemeyer testified that he obtained the apartment in order to have a place to eat lunch during the work-day and occasionally take naps, he also admitted that he began renting the apartment to satisfy the residency requirement in order to serve on the board" [Joe Kafka, "Man Cannot Serve on Power Board*," AP via Mitchell Daily Republic, 2008.11.13].

Now I sometimes like having lunch in town instead of driving back out to the lake, but it never occurred to me to rent an apartment for lunch instead of resorting to the brown bag or Dairy Queen. As for naps, well, I hate naps, but if I'm really tired, both libraries have some cushy, low-rent chairs.

The decision was no slam dunk: two justices supported Heinemeyer's argument. Chief Justice David Gilbertson noted that the Heartland board knew before the election that Heinemeyer was selling his Madison house and moving out of the district but didn't challenge his candidacy until after the election. "To permit the board to wait until after the election to oust Heinemeyer is to overturn a free and fair expression of the will of the voters," said Justice Gilbertson, stirring my democratic soul.

The Heartland board should have spoken up sooner, maybe contacted the paper or their favorite local bloggers to raise a stink before the election. (See: speaking up can save a lot of trouble!) But the majority of the court got it right with a straightforward interpretation of residency. You live where you live, not just where you have lunch. The law is the law, and the fact that an ineligible candidate won an election does not render that candidate eligible.

So blame (or thank!) the Supreme Court, dear Madison neighbors, for averting a (Jim) Heidelberger campaign for mayor.

*Add that maxim to "Man cannot live on bread alone." But who's that leave to run Heartland... puppies? pheasants? Greek gods? Oh great Zeus! hurl thy thunderbolts and lower my electric bill!