Governor visits wind farm near Fairfield
Gov. Steve Bullock visited a wind farm near Fairfield on Thursday as part of a series of energy roundtables he’s conducting around the state.
Previously, Bullock conducted a solar energy roundtable in Bozeman at Simms Fishing Products and toured the building’s new solar panel array. He also toured a weatherization project at a home in Missoula and held a roundtable about energy efficiency efforts.
Bullock said he’ll use input from the roundtables to develop an energy plan he is expected to release late this month.
The state has an opportunity to expand the state’s energy portfolio, he said.
“We can help design what that energy future will look like,” Bullock said.
Bullock was scheduled to conduct another roundtable in Colstrip, home to a coal-fired power plant and a coal mine, on Tuesday.
The state’s future energy options will include coal but also wind, solar and hydro, Bullock said.
Recently, Pennsylvania-based Talen Energy, which owns a share of the Colstrip plant and operates the facility, said its role as operator is not economically viable and the plant’s five owners will need a new manager by May 2018.
“The wind is shifting under our feet when it comes to energy,” said Bullock, who conducted an energy roundtable on wind at the Montana Farmers Union in Great Falls following his visit to the wind farm near Fairfield.
The 13-turbine, 25-megawatt Greenfield project is located next to the six-turbine, 10-megawatt Fairfield Wind farm, which was completed in 2014.
Developer Martin Wilde of WINData LLC, said both wind farms are examples of smaller, community scale wind projects that involve local contractors and land owners.
“There’s great expertise in Montana for Montanans to build them,” he said.
Dick Anderson Construction of Great Falls is the general contractor. The power is being sold to NorthWestern Energy.
Allan Frankl of Dick Anderson Construction said 60 to 70 people will be working on the Greenfield project during the height of construction. Turbine components are expected to arrive later this month and be up by mid-September. The wind farm is expected to be producing power after Sept. 30.
Land owner Marvin Klinker said he’ll receive a percentage of revenue from the electricity produced at the wind farm.
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Wind energy engineering since 1991
Second wind farm going up near Fairfield
Karl Puckett, firstname.lastname@example.org 7:41 p.m. MDT May 1, 2015
(Photo: Tribune photo/Karl Puckett)
FAIRFIELD – Construction of a 25-megawatt, 15-tower wind farm is expected to begin Monday seven miles north of here, following difficult negotiations between the developer and NorthWestern Energy, which will purchase the power.
It’s called Greenfield Wind LLC.
The Montana Public Service Commission, which had rejected a settlement agreement on the power purchase price between NorthWestern and WINData LLC on Dec. 16, reconsidered and approved the 25-year contract March 4.
Now construction can proceed.
“Getting the power contract has been the biggest challenge here,” WINData CEO Martin Wilde said at the Greenfield site.
On Thursday, stakes marked the locations where towers will begin rising in August and September. A strong breeze was blowing 18 mph, which is typical.
“This is perfect wind,” Wilde said.
The Greenfield wind farm is 1.5 miles to the east of the 10-megawatt Fairfield wind farm, which Wilde completed a year ago.
Wilde, an early pioneer of wind development in Montana, would like to see more projects like the Fairfield and Greenfield wind farms constructed by Montana-based, independent power producers, but it isn’t easy, he says.
“In this case, they kind of had it out with us, and we sort of held our own and settled,” Wilde said of negotiations with NorthWestern.
WINData has a 20-year contract to sell power generated at the 10-megawatt, six turbine Fairfield wind farm to regulated utility NorthWestern Energy.
It negotiated a 25-year deal with NorthWestern for the Greenfield energy.
NorthWestern argued that the price of the electricity, $50.49-per-megawatt hour, was too high, Wilde said, and “we fought back.”
NorthWestern always gives prime consideration to how a price will be reflected on the bills of NorthWestern’s 342,000 electricity customers in Montana, NorthWestern spokesman Butch Larcombe said.
“And a lot of times the developers have a different price in mind than we do,” Larcombe said.
The U.S. Public Utility Regulatory Policies Act of 1978 created a new class of generating facilities called “non-utility generators” or “qualifying facilities” that would receive special rate and regulatory treatment.
One of the goals was to encourage development of renewable energy.
Greenfield is a qualifying facility.
In Montana, the Public Service Commission has established two categories of qualifying facilities, Wilde said.
One is the standard size, which is a maximum of 3 megawatts. Those projects come with “standard offer” contracts, and negotiations are not required.
Qualifying facilities that are larger than the standard size require negotiations, and the Greenfield wind farm is the first large QF wind project negotiated and approved in Montana, Wilde said.
Instead of NorthWestern producing the power, Wilde said, it is purchasing green energy from an independent power producer, bringing diversity to its power mix, Wilde said. WINData carries the risk for generation, not NorthWestern’s ratepayers, he added.
When NorthWestern needs power the most is at times of peak demand, when it’s very cold or hot, Larcombe said.
“And unfortunately, a lot of times, that’s when the wind isn’t blowing,” Larcombe said. “We have concerns about the wind’s ability to meet the needs of our portfolio at this point.”
Wilde started out in the wind business in Montana in 1991. He’s owned his own companies and also worked for the U.S. Department of Energy.
He’s investigated many sites for wind potential in state. That leg work has attracted large wind developers, he said.
“We were trying to get commercial wind energy in Montana,” he said.
Today, Wilde owns WINData LLC based in Fairfield.
While Montana has seen some successes in wind development, Wilde says the development climate is poor compared to other states such as Texas.
“It’s like learning how to box in prison,” Wilde said. “It’s a difficult environment to do wind, period.”
The export of wind-generated electricity from Montana could be robust, but Wilde says the NorthWestern seems intent to stick with hydro and coal generation.
Larcombe, NorthWestern Energy’s spokesman, defended the utility’s efforts to own and purchase renewable power.
NorthWestern owns or has contracts with 17 different wind projects in Montana with a capacity of 282 megawatts, he said.
“To say we’re not interested or haven’t been involved in wind production really isn’t an accurate statement,” he said.
When NorthWestern purchased PPL Montana’s hydroelectric facilities in November, it changed the look of the utility’s energy portfolio, he said.
The dams are helping NorthWestern meet the typical needs for electricity in Montana, he said.
Wind in the Fairfield area doesn’t blow trains off the tracks, as it’s been known to do in locations such as Browning, Wilde said.
However, there is always a breeze.
General Electric turbines that produce 1.7 megawatts each will be erected at the Greenfield wind farm.
The distance from the ground to the tip of the blades will be 422 feet, or about 42 stories.
They are the largest wind turbines in the state, Wilde said.
“They lend themselves to calm but constant winds, which is the kind of wind we have here,” Wilde said.
The wind farm should be connected to the grid by November, Wilde said.
WINData is partnering with Wind Power of San Francisco, which will help to arrange financing through large investment banks, Wilde said.
It usually costs about $2 million per megawatt to build a wind farm, which would put the project in the $45 million to $50 million range.
Dick Anderson Construction out of Great Falls has been hired for the job. GE will assist in installing the turbines.
The 15 wind towers will stand on a ridge in two rows on a ridge overlooking wheat and hay fields.
The land is being leased from four property owners who will receive royalties based on production.
“So this is an additional crop for farmers,” Wilde said.
Reach Tribune Staff Writer Karl Puckett at 406-791-1471, 1-800-438-6600 or email@example.com.
Greenfield Wind and NorthWestern Energy have asked the Montana PSC to reconsider its rejection of a power purchase agreement for the output from Greenfield’s 25-MW wind project, which is under construction near Fairfield, Mont.
By a 3-2 vote, the PSC in December refused to approve the contract, even though most parties in the case supported the deal and none opposed it [Docket No. D2014.4.43].
“This motion presents a critical question of whether the commission will approve a reasonable long-term avoided cost negotiated between a large QF and NorthWestern, or whether the commission will subject the parties, and quite possibly the commission itself, to further litigation,” Greenfield said in its Jan. 8 filing, which called the decision “unlawful, unjust and unreasonable.”
The decision was made during a Dec. 16 commission work session after considerable discussion of the perceived pros and cons of the 25-year deal, which included a net rate of about $50.49/MWh if the developer paid NorthWestern for wind integration, or $53.99/MWh if Greenfield delivered a wind-integrated product.
During settlement discussions with NorthWestern, Greenfield agreed to delay the commercial on-line date for the full contract rate until 2016, in light of the utility’s near-term long position It would receive $19.99/MWh, minus integration costs, for any generation delivered in 2015; its currently scheduled on-line date is Oct. 15, 2015.
NorthWestern initially asked the commission in April 2014 to set terms and conditions of the PPA because it was not selected through an all-source solicitation, as required under a commission rule that FERC previously determined was inconsistent with PURPA regulations (CU No. 1639 ).
“NorthWestern is in the untenable position of being constrained by an administrative rule that FERC has found to be inconsistent with federal law,” the utility said.
The rates and terms in the stipulation “are consistent with, and likely significantly below, any reasonable current estimate of NorthWestern’s actual avoided costs,” Greenfield said in its Jan. 8 petition.
MPSC staff’s projections indicated the settlement rate would save NorthWestern’s customers between $5.9 million and $10.6 million over the life of the project, compared to the two most reasonable alternative avoided-cost benchmarks, Greenfield also said in its filing—and pointed out that the rates were lower than all five of the benchmark rates staff used in its evaluation.
In fact, the market prices underlying the negotiated rate and staff’s benchmarking analysis came from NorthWestern’s 2013 least-cost plan, and are the same prices used to evaluate whether the utility’s recent acquisition of PPL Montana’s hydro resources was a least-cost resource, Greenfield said.
Commissioner Travis Kavulla, who voted to approve the stipulation, said during the Dec. 16 work session that commission staff used more analysis in reviewing the Greenfield deal than NorthWestern did to assess the value of its $870-million purchase of PPL Montana’s hydro portfolio (CU No. 1662 ), under which power is priced at about $57/MWh.
That acquisition was also approved outside of an all-source solicitation, Greenfield’s filing noted.
Rejection of the negotiated rate will “launch the parties and the commission back into unnecessary and costly litigation,” Greenfield said, and could result in rates that are significantly higher than those included in the stipulation.
Greenfield also said the apparent rationale for rejection of the unopposed stipulation “rests upon unlawful discrimination against QF projects, which combined with other recent events would constitute an actionable violation of federal and state law if allowed to stand.”
The notice of commission action denying the settlement did not articulate the commission’s reasons for denial, NorthWestern pointed out in its filing in support of Greenfield’s petition. Besides reconsideration, NorthWestern asked the commission to provide the rationale for its decision.
Chair Bill Gallagher led the opposition to the settlement during the commission’s work session.
“I am dissatisfied that this stipulation is fair and reasonable,” Gallagher said during the meeting. “I like stipulations to come after hearings.”
Gallagher added that the record was insufficient and went on to criticize FERC’s PURPA regulations, likening them to a program that would provide unskilled people with incentives to become housepainters and then require homeowners to purchase their services over those of more qualified painters.
Gallagher also warned that if the PSC approved the settlement, there would be a line of developers down the hall applying for QF status. “What are you going to do with the ones that follow? NorthWestern would end up selling this unneeded power at a loss,” he said, adding that “these new QFs will come in and offset our native power.”
Gallagher has since retired from the commission and was replaced in January by Brad Johnson, who was elected in November 2014.
Greenfield is hoping the change in chair may result in a different outcome.
“Any commissioner that is going to obey federal and state law and be responsive to recent FERC and state court rulings and has the interest of Montana ratepayers will vote in favor of this—there is no other vote,” Greenfield spokesman Marty Wilde told Clearing Up.
“This is a clear case of where federal and state law—and the Montana commission’s own rulings—dictate what the decision needs to be.”
Then there’s the economics, Wilde said—the commission approved the PPL Hydro purchase at about $58/MWh, and “we’re looking at $50.49/MWh.
“We’re pretty hopeful that once they reconsider, maybe with the fresh eyes of Brad Johnson, they’ll be clear on what the right decision is.”
Montana PSC attorney Jason Brown said staff will likely waive the requirement for action on the motion within 10 days of filing—otherwise the petition would be automatically deemed denied—so the commission can take it up later this month.
If the commission rejects the petition and settlement, there’s a good chance the case will be continued and heard on its merits, Brown said.
The PSC could also agree to reconsideration and then issue an order approving the settlement [Jude Noland].
Copyright © 2015, Energy NewsData Corporation
Clearing Up • January 16, 2015 • No. 1680 • Page 11
The developer of a proposed wind farm near Fairfield asked the Montana Public Service Commission on Thursday to reconsider its prior denial of a power purchase settlement with NorthWestern Energy, which has blocked the project.
Greenfield Wind LLC of Fairfield hopes to construct the wind farm by this fall, said Martin Wilde. Greenfield is a partnership between Wilde, the CEO of Fairfield-based WINData, LLC and Foundation Wind Power in San Francisco.
The wind farm’s 15 General Electric turbines would produce 25 megawatts of electrical generation capacity. That’s enough to power 5,000 to 7,000 homes annually. The turbines would be 262 feet tall, which is 26 stories, with 328-foot-long rotor blades, a bit more than a football field. That would make them the largest turbines in Montana, Wilde said.
The Greenfield wind farm is planned eight miles northeast of Fairfield, just east of the 10-megwatt, six-turbine Fairfield wind project. That project became operational May 17. WINData and Foundation Wind Power also partnered on that project, and NorthWestern is purchasing that power.
Greenfield will be located on dry, non-irrigated land leased from four landowners.
PSC members voted 3-2 Dec. 16 to reject the settlement agreement on the power purchase price between NorthWestern and Greenfield.
Wilde said the decision came as a surprise, and Greenfield on Thursday filed a motion asking the PSC to reconsider. NorthWestern also filed a motion asking the PSC to clarify why it denied the power purchase agreement.
“It gives Greenfield the opportunity to basically take a bite at the apple with a different proposal,” said Brad Johnson, the chairman of the PSC.
Johnson was not on the commission during the first vote.
Wilde is hoping for a different result the second time around.
The 25-year purchase agreement calls for NorthWestern purchasing the power for $53.99 per megawatt hour, Wilde said. Greenfield would pay $3.50 for wind integration services, making NorthWestern’s net purchase price $50.49 per megawatt hour. Wind integration is necessary for grid reliability.
NorthWestern used a price of $58.32 per megawatt hour as a benchmark when it asked for approval from the PSC to purchase hydroelectrical facilities from PPL Montana, Wilde said.
“We’re coming in cheaper than the benchmarks, and that discount flows to NorthWestern’s ratepayers,” he said.
Along with the clean power, construction of the wind farm will produce local jobs for engineers, electricians, cement companies and surveyors and taxes for Teton County, he said.
It would be built by Dick Anderson Construction out of Great Falls, which also built the first wind farm.
As a rule of thumb, it costs $2 million a megawatt to build a wind farm, Wilde said.
John Hines, NorthWestern’s vice president of supply, said Greenfield came to NorthWestern energy with the project.
“We believe our portfolio is getting fairly full for this type of energy — intermittent wind energy,” he said.
The company already is purchasing about 250 megawatts of wind power, or about 14 percent of its total energy requirements, Hines said
However, the utility is obligated to enter contracts with “qualifying facilities” such as Greenfield as a result of a President Jimmy Carter-era federal law designed to diversify the energy portfolio of utilities and stimulate production of alternative energy, he said.
The settlement agreement before the PSC, he said, is “a good faith effort on our part.”
“We can’t go forward without regulatory approval,” Hines said.
The cost of the wind power is higher than market alternatives, he said. The impact of the purchase from Greenfield on ratepayers hasn’t been calculated, but would be very small, he said.
Reach Tribune Staff Writer Karl Puckett at 406-791-1471 or kpuckett@greatfallstribune
.com. Twitter: @GFTrib_KPuckett.
Alberta Breaks Wind Power Record, Then Does It Againin News Departments > New & Noteworthyby Joseph Bebon Tuesday July 29 2014print the content itemCanadian province Alberta broke its wind generation record not once, but twice, last week. Between 11 a.m. and noon on Thursday, July 24, Alberta produced an average of 1,188 MW of wind power. The province then surpassed that on Friday, July 25, peaking at an average of 1,255 MW between 9 a.m. and 10 a.m. Before last week, the previous record was set on May 29, with an average of 1,134 MW.Angela Anderson, a spokesperson for the Alberta Electric System Operator AESO, explains that the most recent records were due to a combination of very windy days and new wind farms. Specifically, she says the 300 MW Blackspring Ridge project, which went online in Vulcan County in May, “allowed the system to produce more wind than ever before.”According to the Canadian Wind Energy Association CanWEA, Alberta is home to over 1.4 GW of installed wind capacity and ranks third among the country’s provinces. Tim Weis, the association’s Alberta regional director, says the new wind production records are certainly noteworthy.“This is significant, not only because it was just this past April that Alberta broke the 1,000 MW plateau for the first time, but [also because] Alberta’s electricity system is showing that it can integrate large amounts of wind energy seamlessly,” states Weis.He also mentions that the AESO lifted a 900 MW threshold for installed wind capacity in Alberta in 2007, and now wind production has peaked at over 30% more than that original limit.Furthermore, it appears wind power is poised for growth in Alberta. “There is a lot of interest in wind development in the province, and that’s expected to continue over the coming years,” comments Anderson. She says the AESO currently has 15 active wind projects totaling about 2.1 GW in the grid operator’s connection queue.Overall, the AESO anticipates wind capacity to nearly double over the next 20 years from approximately 1.4 GW to 2.7 GW. “In fact, by 2034, we are forecasting Alberta will have more wind power than coal-fired generation on the system.”Nonetheless, Weis says most new power generation in the province will likely come from natural gas, not wind. “Alberta is facing two issues simultaneously,” he explains. “First of all, federal regulations require that coal units retire when they reach their 50th birthday. Alberta’s market is over 60 percent coal, and the first units will start to hit their 50th birthday this decade.“At the same time, Alberta’s system operator is forecasting significant growth in electricity demand over the next two decades, largely as a result of the growing oil sands industry. Several independent forecasts suggest that the vast majority of new electricity supply will come from natural gas to fill this gap.”Weis points out that the price of wind power isn’t the reason, though, as the AESO estimates wind energy within 7% of gas costs. The truth is, natural gas is simply easier to build in Alberta’s electricity market because “it can more easily bid into the market and respond to changes in future costs.”But there’s a problem: Weis says forecasts suggest a big switch to natural gas will eventually undo the environmental benefits gained from closing down coal plants, with greenhouse-gas emissions starting to increase again in just over a decade.Weis argues that although the AESO has proven it can handle more and more renewable energy on its grid, the province still needs “a new policy framework that recognizes the benefits of renewables so that we can continue to see wind grow in Alberta.”
Fairfield Wind ready to go online mid-May 2014
Published on Tuesday, 13 May 2014 15:43
Martin “Marty” Wilde
Turbine #3 operating at the 10MW wind project near Fairfield, Montana. the project was developed by WINData LLC of Great Falls Montana, financed by Foundation Windpower and constructed by Dick Anderson Construction of Great Falls. The output will be sold to NorthWestern Energy under a 20-year contract.