Problems Hurt Renewable Energy Possibilities in Texas Panhandle
By Kay Ledbetter, Amarillo Globe-News, Texas -- May 4
Alternative energy is in the Texas Panhandle.
The future of the renewable energy industry depends on the ability of state
and federal legislatures, government entities, utilities companies, and
individuals to come up with methods of getting the power where it can best be
utilized for the most reasonable cost.
About 100 people from various aspects of the renewable energy industry are
meeting at the Amarillo Civic Center in the first RARE Opportunities Development
Forum and Expo. The forum meets today from 8 a.m. to 2 p.m. and is open to the
public.
The sense of excitement for the possibilities with renewable energy sources
was tempered by the frustration with market roadblocks, such as lack of
transmission lines from the Panhandle into the southern portions of Texas, which
is more populated.
David Hudson, Xcel Energy director of regulatory administration in Amarillo,
said, "We are trying to assure there is enough electricity to meet
customer's needs both now and in the future."
Doing so means buying wind energy, Hudson said. Xcel is the second-largest
wind energy purchaser in the nation.
The problem is Xcel is in the Southwest Power Pool, which includes Oklahoma
and Kansas. The major Texas populations are in the Electric Reliability Council
of Texas -- and the two systems don't cross borders.
Participants were told about wave lengths that don't match between the
systems, prohibitive expenses of building transmission lines and other
roadblocks, but many asked area legislators to develop ways to build the
transmission lines across the invisible border.
Rep. David Swinford, R-Dumas, said it is possible that everyone in the power
pool could pay an incremental part of the transmission line costs and make it
feasible.
Swinford said the Legislature has done some things -- not enough -- to
stimulate new business in the area of renewable energy, including trying to get
the Public Utility Commission to put transmission lines where the alternative
energy is located.
It was successful in getting attached to the Governor's Economic Development
Fund the Ethanol Producer Incentive program. This new incentive is needed to put
Texas in line with what other states are doing to promote the industry,
officials said.
Although Swinford said he and the other legislators from this region are
capitalists and don't like incentives, "we can't let other states build and
us not participate."
Ethanol is one of the renewable energy sources that is a clean air
alternative, lessens dependency on foreign oil and provides economic development
for local communities, Swinford said.
Sen. Kel Seliger, R-Amarillo, said there's viability left in the oil and gas
industry. At the same time, these renewable sources of energy are clean.
It provides an opportunity for a synergy between existing energy and
renewable fuels, Seliger said.
"What the renewable sources mean to me is a way to extend the life of
reserves for fossil fuels -- to extend the viability and profitability," he
said. "It could add generations to the life of those reserves.
"When we're talking about renewable forms of energy, we're talking about
renewable economics."
Rep. Warren Chisum, R-Pampa, said it boils down to money.
The rising cost of natural gas -- with no relief in sight -- is forcing
utility companies to look at renewable sources of energy.
Wind is close to being competitive in the market and if the federal energy
bill is passed, it will include wind energy incentives that will help.
"I think we have a great future, but we have to pursue it on a rational
basis," Chisum said.
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