Joining power grid no easy
switch: 3 with own turbines face hassles as PUCO figures pay formula
Jun 4, 2007 - Knight Ridder Tribune Business News
Author(s): Tom Henry
Jun. 4--ELMORE -- It sounds so simple.
You make a big investment in wind power, solar power, or some other
form of renewable energy that can put a dent in your electric bill.
During peak months, you actually generate more power than what you use.
So, you sit back and wait with glee for your next bill to arrive in the
mail, knowing you're supposed to get reimbursed by FirstEnergy Corp. or
one of Ohio's other utilities for the surplus electricity you just put
on a regional electric grid. Who knows? You might even generate enough
power to recoup your investment someday, right? Maybe. But like other
ventures that require a lot of start-up cash, make sure to do your
homework.
And be prepared for some hassles -- especially now, while the Public
Utilities Commission of Ohio is still trying to figure out the right
formula. Just ask Gerald Giesler, Les Lemke, and Brian Mallot. All three
have complaints pending with PUCO over what's known as the "net-metering
law." Forty states and the District of Columbia have versions of it,
including Ohio and Michigan. The Ohio governor's residence, which had a
$90,000 solar power system installed in the fall of 2004, benefits from
it. Former First Lady Hope Taft beamed just about anytime she was asked
about how much money was being saved on electricity.
But Mr. Giesler and Mr. Lemke, who both live in the Elmore area, and
Mr. Mallot, who lives near Bellevue, now wonder if they're in some sort
of David-versus-Goliath battle, a tug-of-war with one of America's
largest utilities. They believe that FirstEnergy, though probably
technically abiding by the law, isn't exactly bending over backwards to
make it easy for people to take advantage of net-metering. Installing
renewable energy devices is expensive enough as it is, although costs
are coming down with economies of scale as more are purchased and
produced. Costs depend on market conditions, size of project,
installers, and other factors.
Mr. Giesler said a new turbine the size of the one he has now would
cost about $70,000 to purchase and have installed by contractors. He
said he got his for less than half that amount -- "$26,000 and a lot of
sweat" -- because he did most of the work himself. "I dreamt about doing
something like this for 20 to 30 years, but never had the land," said
Mr. Giesler, who moved to his current property in 2004. He said he wants
to be more energy self-sufficient because he envisions a day in which
soaring energy prices "might make the Great Depression look like a
cakewalk." But there's also apparent widespread confusion over how much
people are entitled to receive back from utilities for the surplus they
put on the grid.
3 components Kathy Kolich, an attorney representing FirstEnergy on
all three wind-turbine cases in front of PUCO, said people need to
remember their bills have three components: electrical transmission,
distribution, and generation. They will only be compensated for
generation. And the percentage of reimbursement is under litigation, she
said. Anthony Dill, spokesman for the Office of the Ohio Consumers'
Counsel, a state consumer advocate group that is encouraging a broader
use of renewable energy, said generation costs comprise 60 percent of a
typical electric bill. It is seeking dollar-for-dollar value in
reimbursement for all surplus kilowatts of electricity that homeowners
and businesses put on a grid.
Mr. Mallot, a NASA electrician, and his wife, Christy, have a PUCO
complaint that challenges FirstEnergy's reimbursement formula for
surplus electricity generated by the turbine they installed last
September. He said they held off filing the paperwork for connection
approval after learning about the frustrations that Mr. Giesler and Mr.
Lemke had encountered. All three purchased rebuilt, previously
decommissioned machines from the Palm Springs area of California, via a
Wisconsin dealer. Mr. Giesler, president of Riverside Machine &
Automation Inc. of Genoa, put together his turbine by himself in 2005.
FirstEnergy authorized him to connect it to the grid in September of
that year, only to revoke that authorization on April 30 with a letter
that demanded he disconnect immediately. Hired an attorney He didn't. He
hired an attorney and found out, after exchanging a lot of paperwork and
phone calls, that FirstEnergy simply wanted to make sure his equipment
was in compliance with the latest safety codes. Ms. Kolich said it was
an oversight to give Mr. Giesler approval to connect in 2005. She said
the utility wants everything up to code for the safety of its line
workers. The utility, in acknowledging its own error, has agreed to
cover his costs to bring his equipment into compliance.
"Any testing they have to do we'll pay for because we authorized [the
connection] when we shouldn't have," Mark Durbin, utility spokesman,
said. A similar situation occurred with Mr. Lemke, with different dates.
He was authorized to connect his slightly smaller turbine to the grid
last October, then ordered to disconnect it a few weeks ago. He said he
was "getting nervous" about the situation up until recently. "Now, it
sounds like they're not against the windmill," he said. Although those
both have active PUCO cases, they expect -- someday -- everything will
be smoothed out to their satisfaction.
But they wonder what would have happened if they hadn't been diligent
in defending their turbines -- and if others will be discouraged, out of
fear of being hassled. Ms. Kolich said FirstEnergy is not trying to
dissuade people from installing renewable energy devices and taking
advantage of Ohio's net-metering law. "We are not. There are regulations
set up by the state that must be complied with. That is for the safety
of the customer, as well as the utility workers," she said. "I think
we've been wrongfully accused [of making it hard for people.] Part of
the problem, Ms. Kolich said, is that there "haven't been that many
until the recent push." "The problem is they've just been so few and far
between," she added.
"FirstEnergy is definitely not trying to throw up obstacles." Mr.
Dill agreed, at least to the extent that FirstEnergy itself is
undergoing a learning curve. "In the past, there was a lot of ambiguity
in the net-metering rules," he said. "The new rules make net-metering
easier to accomplish." Mr. Mallot encouraged those interested in
renewable energy devices to consult the nonprofit Green Energy Ohio's
Web site at
www.greenenergyohio.org. Contact Tom Henry
at:thenry@theblade.comor
419-724-6079.
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