Today the Public Service Commission of Wisconsin approved two long-term supply contracts between Madison Gas and Electric (MGE) and two of its customers who wish to receive more electricity from renewable energy.
With these approvals in hand, the City of Middleton and the Middleton-Cross Plains Area School District become the first customers in Wisconsin to contract with their local utility to receive emission-free electricity from an offsite solar plant.
Together, these customers have committed to receive the output from 1.5 megawatts (MW) of solar power that MGE will build on property owned by the City of Middleton near its municipal airport. The school district’s commitment amounts to 1 MW, while the city’s commitment is for 500 kilowatts. The solar project itself will total 5 MW, with the other 3.5 MW approved earlier this summer as an expansion of MGE’s Shared Solar program.
Under MGE’s Renewable Energy Rider service, larger customers with multiple facilities, such as local governments, school districts, and companies, can source some of the electricity they use from a nearby dedicated solar plant. This voluntary service enables customers to drive the expansion of renewable power and directly benefit from the additional solar capacity beyond the amount of solar power that their own buildings could hold.
After MGE became the first Wisconsin utility to gain approval in 2017 to create their 25 MW program, We Energies and Alliant Energy sought and received approval for 150 MW each in similar programs for customers they serve.
“Today’s approval of these innovative contracts between MGE, City of Middleton, and Middleton-Cross Plains Area School District moves Wisconsin forward to more homegrown, healthy, and smart renewable energy. This approval blazes a path that state government, local governments, and companies all across Wisconsin can follow to voluntarily increase their renewable energy usage in a cost-effective manner,” said RENEW Executive Director Tyler Huebner.
“These 1.5 megawatts of solar power should be just the beginning as MGE, We Energies, and Alliant Energy have a combined authority to subscribe up to approximately 325 megawatts of renewable energy under their programs.”
Early Support from RENEW
RENEW supported the creation of MGE’s program in our 2017 Public Comments, which included this statement: “There is significant and growing corporate interest in increasing consumption of renewable energy. In addition, there is growing interest among institutional customers such as municipalities, school districts, and technical colleges to access renewable energy, and along with corporate customers, these entities tend to view their utility as their trusted long-term partner on energy. As these customers weigh their options for accessing renewable energy, we believe it is important that our regulated utilities are granted flexibility to pursue tariffs and contracts to meet those needs.”
MGE serves four municipalities–Middleton, Madison, Monona and Fitchburg–that have recently adopted 100% renewable energy goals. The approved contracts clear a path for these communities and other entities with ambitious clean energy goals to access more solar power under this model.
Shared Solar Expansion Underway
The solar facility to be built will be a total of 5 megawatts, of which 3.5 megawatts will be dedicated to MGE’s Shared Solar program. Earlier this summer, MGE received approval from the PSC to revise and expand its shared solar service. MGE now offers shared solar subscriptions to smaller commercial customers (including nonprofits) as well as to residential customers.
The larger array provides solar power at a lower cost, which allows MGE to substantially narrow the cost differential between MGE’s shared solar service and its standard rates. The array should produce 9.2 million kilowatt-hours in its first full year of operation, enough electricity to cover the needs of about 1,182 average Wisconsin homes.
OneEnergy Renewables, a Seattle-based company whose Midwest office operates out of Madison, originally developed the 16-acre site at Morey Field (Middleton’s airport) where MGE’s solar array will be constructed. OneEnergy also recently developed a portfolio of solar arrays in western Wisconsin that supply electricity to seven different municipalities while providing renewable energy credits under long-term contracts to Organic Valley and the City of Madison.
We Energies and RENEW Wisconsin are pleased to announce a settlement agreement with two important provisions regarding solar energy and customer-owned generation.
With the agreement, We Energies will no longer pursue a solar fixed-cost recovery charge as part of its rate review with the Public Service Commission of Wisconsin, and RENEW Wisconsin agrees to support an upcoming We Energies utility-scale solar project.
The two parties also agree to collaborate in a series of good-faith discussions for at least the next two years with the goal of finding potential areas of agreement on renewable energy and distributed generation as We Energies continues the transition to a clean energy future.
Across America, businesses are increasingly investing in clean, renewable energy. They know that the costs for wind and solar have plummeted, allowing the companies to take advantage of the low-cost electricity from renewables. In addition, customers, employees, and investors are increasingly looking to these businesses to make bigger commitments to improving their impacts on the world around us.
Over the past year, Chris Deisinger has acted as a consultant to RENEW Wisconsin to gather up all these corporate commitments to renewable energy, and do a deep dive into which of these national and multi-national firms have Wisconsin operations.
Today, we’re very excited to show you which of these national leaders have Wisconsin operations – and it’s a great list! These are companies who, over the coming years, will be searching for options to access renewable energy to cover the needs of their Wisconsin operations.
Corporations with Renewable Commitments & Wisconsin Operations
A timely example of renewable energy commitments in Wisconsin is Ashley Furniture, headquartered in Arcadia, Wisconsin. On Wednesday, Ashley announced a $29 million investment in renewable energy. The investment will be used to offset 35% of their energy use by installing solar panels at 10 of their largest facilities. Ashley expects to save at least $5 million in the first year.
Dozens of other companies in Wisconsin have also made commitments to renewable energy, including:
Utility Programs to Connect Commercial Customers with Renewable Energy
Wisconsin power companies are starting to put together programs to help companies like these, and other large customers, meet their renewable energy goals.
Two years ago, Madison Gas & Electric debuted a “Renewable Energy Rider” special service for its commercial customers, and just last month they announced they had the first two customers express interest.
Last fall, We Energies followed suit by proposing and gaining approval for a similar program that would enable their larger customers to sign up for access to dedicated renewable energy resources. We Energies was granted approval for their program in December 2018.
And, just a few weeks ago, Alliant Energy joined in, proposing a similar program again. Alliant’s program still requires approval from the Public Service Commission which oversees and regulates the utilities in Wisconsin.
A Brighter Future
Hopefully you caught Budweiser’s Super Bowl Commercial featuring their commitment to making every Budweiser with 100% wind energy. These are the types of success stories that can happen in Wisconsin too.
With dozens of corporations committing to renewable energy, and the utility programs to provide it, the future of renewables for Wisconsin is looking bright.
Today at its Open Meeting, the Wisconsin Public Service Commission approved five interrelated cases that will lead to a five-fold expansion of solar energy in Wisconsin.
The PSC approved:
- The Badger Hollow Solar Farm project in Iowa County, totaling 300 megawatts. Badger Hollow could become the largest solar electric plant in the Midwest when completed. In addition, the PSC approved a “tie line” that will deliver Badger Hollow’s output to a nearby substation, where it will be injected into the existing southwest Wisconsin grid.
- The Two Creeks Solar Project in Manitowoc County, totaling 150 megawatts. As with Badger Hollow, the PSC also approved a “tie line” that will deliver Two Creeks’ output to a nearby substation.
- Finally, the PSC approved an application from two Wisconsin utilities, Wisconsin Public Service based in Green Bay and Madison Gas & Electric, to acquire a total of 300 megawatts of this new solar capacity. The utilities will acquire the entire Two Creeks Solar Farm and a 150 MW share of the Badger Hollow Solar Farm. Wisconsin Public Service will acquire a total of 200 MW and Madison Gas & Electric will acquire 100 MW.
By RENEW Wisconsin’s estimates, the state of Wisconsin closed 2018 with about 103 megawatts of solar power, about 80% of that residing on homes and buildings, directly serving the customers who bought the solar arrays.
When completed, the 450 megawatts of solar would produce about 1.3% of Wisconsin’s annual electricity consumption, and supply electricity equivalent to the usage of about 116,500 Wisconsin homes. Both projects should be operational by mid-2021.
RENEW Wisconsin’s Executive Director, Tyler Huebner, said, “We are very happy to see the Public Service Commission approve these solar projects and find that it is cost-effective for two of our major utilities to own and operate these plants. It is a landmark day for solar energy in Wisconsin. Solar energy is a smart choice to meet the electricity needs of our citizens, businesses, and organizations, and without a state mandate to do so. With solar energy, we will produce homegrown, healthy energy right here in Wisconsin for years to come, and provide substantial economic benefits to the landowners and local governments who will host these projects.”
Today’s approvals build momentum for large-scale solar as a resource for power suppliers and utilities in Wisconsin.
- Three weeks ago, Dairyland Power Cooperative announced a commitment to purchase electricity from a 149 megawatt solar facility called Badger State Solar that would be located in Jefferson County. That project is subject to PSC approval as well.
- Just yesterday, April 10, the Richland County Board of Zoning gave final, and unanimous, approval to the 49.9 megawatt Richland County Solar Project developed by Savion Energy to be located in the Town of Buena Vista.
- In 2017, WPPI Energy announced it would purchase power from a 100 megawatt solar project near the Point Beach Nuclear Station. That project also will seek PSC approval in 2019.
Taken together, these five new solar projects account for approximately 749 megawatts of new solar power. If all are approved and built, they would supply 2.1% of Wisconsin’s annual electricity needs, and produce enough power to equal the annual usage of about 185,000 homes in Wisconsin. Beyond these projects, at least 4,000 megawatts of additional large-scale solar projects are being explored and developed in Wisconsin. We encourage you to learn more about large-scale solar energy, including our long list of questions and answers, at www.renewwisconsin.org/solarfarms.
About RENEW Wisconsin
RENEW Wisconsin is a nonprofit organization which promotes renewable energy in Wisconsin. We work on policies and programs that support solar power, wind power, biogas, local hydropower, geothermal energy, and electric vehicles in Wisconsin. More information is available on RENEW’s website: www.renewwisconsin.org.