Arrowhead Electric raises concerns over local energy plan proposal

The Cook County Energy Conservation and Renewable Energy Plan, developed through a partnership of the Cook County Board of Commissioners, the Grand Marais City Council, and the Cook County Local Energy Project (CCLEP), is complete – almost. On June 12, two weeks after the plan was adopted by the city council, George Wilkes, Virginia Danfelt, Don Grant, and Gary Atwood of CCLEP brought it to the county board, but the board postponed adopting it because of concerns from Arrowhead Electric Cooperative Inc.

An Energy Plan Committee comprised of representatives from CCLEP, the county, the city and its Public Utility Commission (PUC), Arrowhead Electric Cooperative, residents, businesses, and other professionals worked from December 2010 to May 2012 on the plan. An online survey and a telephone survey were conducted, and public meetings were held.

The outcome was a set of 10 goals related to leadership in and commitment to energy planning for the future; development of public awareness and engagement; production of local, clean, renewable energy; practices that promote energy efficiency, water conservation, and waste reduction; energy efficient transportation; and promotion of energy efficiency and renewable energy businesses.

The goals are outlined in a document almost 150 pages long that includes survey results, local energy audits, the outcome of HVAC upgrades to numerous local buildings, and information on local biomass and wind power studies.

Wilkes asked the county board, as he had asked the city council, to formally designate CCLEP as an advisory committee that would be responsible for implementing the plan. The plan states, “With representation from the city council and the county board, CCLEP will take the lead in implementing projects and programs and recommending action to be taken by the city and/or county. All local governmental action and funding will require approval from the appropriate governing body.”

The plan’s executive summary states, “Of course, the true measure of success of this plan will be the extent to which it is accepted and incorporated into our community’s culture. …Real, effective implementation of this energy plan will come through a prolonged and diligent process of community education.”

After Wilkes went over highlights of the plan, Joe Buttweiler, director of member services at Arrowhead Electric Cooperative Inc. and also listed as a member of the Energy Plan Committee, said, “We’re very happy to see CCLEP take an active role in education and energy efficiency and conservation.” He then stated he had numerous concerns about the plan, including what might be advised regarding utility rate structures and policies. He said he sees county investment in implementation of the plan as a “rate increase” to Arrowhead Electric and PUC customers because those cooperatives are both already addressing these issues. He also said he did not think the number of people surveyed provided an adequate representation of Arrowhead Electric customers.

Wilkes said the survey, while anecdotal, showed an “unmistakable trend of support” for energy efficiency and conservation. “A lot of people were in favor of pursuing energy efficiency and renewable energy,” he said. The results of a random phone survey in which people were cold-called and an online survey in which people volunteered to participate were the same, he said, even though they might have expected the online survey takers to be self-selected “members of the choir.” He said he understood that Arrowhead Electric would not want the county to dictate their rates.

“It costs money to do these things,” Buttweiller said of renewable energy initiatives such as wind turbines and biomass plants. “It’s our job to manage our member’s money in the most efficient way that we can.”

Commissioner Fritz Sobanja said he understood some of Buttweiler’s concerns but thought they were “shallow.” He said, “I see this as the large corporate entity saying someone’s cutting into my turf. … What are we going to do down the road in 10, 20, 30, 40 years? We can’t just rely on what we’ve become comfortable doing.”

Commissioner Sue Hakes asked Buttweiler to submit Arrowhead Electric’s concerns in writing. Commissioner Bruce Martinson suggested several wording changes that might address those concerns.

In a May 18 memo to Danfelt, Buttweiler said that efforts to educate the public and promote energy efficiency would be redundant because Arrowhead Electric already does that. He expressed concern over how some proposed initiatives, including hiring a full-time county energy efficiency coordinator, would be funded. He wondered what criteria would be used to determine if something was economically feasible, one of the plan’s priorities. He thought Arrowhead Electric’s membership in Great River Energy (GRE) should be acknowledged since GRE is getting 12 percent of its power from renewable sources this year and will increase to 25% by 2025 as mandated by the State of Minnesota. He questioned whether local residents would be willing to pay even more for local renewable energy projects. “To summarize,” his memo stated, “the plan is expansive and covers a lot of good energy efficiency concepts…but it is very duplicative for Arrowhead’s members. Perhaps it is a good example of how cooperatives have been leaders in this arena.”

Wilkes, Grant, Danfelt, and Atwood of CCLEP will meet with Buttweiler and Arrowhead Electric Executive Director Jeanne Muntean June 19 to discuss concerns. The county board will consider adopting or having a work session on the plan after they hear back on the results of that meeting.

Cook County energy statistics

(not including transportation):

. Ninety-four percent of 150 Cook County residents surveyed regarding energy issues expressed concern over energyrelated environmental issues. None of those surveyed said they weren’t concerned about cost. More than 80 percent said they think local government should be taking steps to address energy planning. Close to 90 percent were in favor of increasing use of renewable energy sources, such as wind, solar, and biomass.

. Sources of energy in Cook County are as follows:

. 40 percent of survey respondents use wood for heat, consuming an average of four cords a year.

. Residential energy consumption accounts for 58 percent of Cook County’s energy use. Other percentages are as follows:

. In 2012, Cook County is expected to spend $14.5 million on energy, not including transportation.