I've come late to this discussion, but, being a renewable energy advocate with 
relevant experience, I have some comments.

First, thanks to Amy for her references to ME3 and the state PUC regarding the Crown 
Hydro Project.  ME3.org is an excellent local resourse on the broad topic of renewable 
energy.  Thanks also to Steve Brandt for his follow-up post with some STrib history on 
the project.  

It's amazing how long this project has been in the making, and I hope the early 
visionaries get some reward for their initial investments and persistence to make the 
project a living, working renewable energy power project, open to the public, right in 
the heart of downtown Minneapolis.

Granted, it is a small-scale power producer (3.4MW) relative to conventional utility 
projects.  However, it is a renewable energy-based project, and, from an efficiency 
perspective, it will have a much better load factor (percentage of power production 
capacity actually produced on a monthly or annual basis) than any single wind-electric 
project of the same capacity in rural Minnesota.  Xcel will purchase the power 
produced and utility rate payers will pay the capital costs associated with the 
project... a miniscule amount per rate payer, I'd guess; and, said costs have been 
reviewed and determined reasonable by the PUC. [note- I view a project like this to be 
a true renewable energy-based power producer compared with projects that burn recycled 
rubber tires that got included in a list of 'renewable' projects through political 
gyrations at the state capital... there is no comparison.]

Amy asks, "...would the City of Minneapolis be better off directing that 
investment into new technologies now, like fuel cells, or to invest in passive solar 
power, and green roofs instead?"  
[MH] Since Xcel and it's ratepayers are doing the power production investing, 
Minneapolis seems to be largely out of the finance loop-- at least in terms of the 
capital capacity costs and energy charges.  Perhaps the city and/or Park Board will 
have costs associated with roadway/parking-related expenses, but not energy 
production-related expenses-- that's my understanding anyway.  Thus, the city has no 
power production funds involved to possibly better invest-- "direct[ing]... into new 
technologies now, like fuel cells... passive solar... and green roofs instead."

Given the limited City and Park Board budgets (which consist mainly of property tax 
based revenues), I'd like to see them both stay out of any energy-related electric 
power production capacity investments, and I think it is clearly outside the scope of 
the MPRB mission.  [However, I'd welcome non-property taxpayer or city/board financed 
investments in renewable projects in Mpls.]  It's just very hard to compete with 
utility rate-payer funded projects that include a huge pool of ratepayers and where 
the renewable project represents but a small portion of overall installed and 
rate-based capacity; when the city would have to allocate total capital costs for the 
project to local property tax payers.  Perhaps the city could use the power produced 
directly, thus offsetting their retail power purchases bill, but as a small power 
producer, they'd more likely have to sell the power at a wholesale rate to the local 
utility, rather than receiving a full retail credit.  Who ever said life's fair?

I think this project will depict a large bit of local technological and 
development-related history in the Mills District downtown, it will boost tourism, and 
will provide an excellent educational amenity for city, regional and global visitors 
to our Riverfront District.

Michael Hohmann
Linden Hills

> -----Original Message-----
> From: [EMAIL PROTECTED] [mailto:[EMAIL PROTECTED]
> Behalf Of [EMAIL PROTECTED]
> Sent: Wednesday, March 10, 2004 11:50 AM
> To: [EMAIL PROTECTED]; [EMAIL PROTECTED]
> Subject: Re: [Mpls] Park Board and Crown Hydro project
> 
> 
> ME3.org has some very interesting documentation regarding the Crown Hydro 
> Project.
> Are residents aware this has already been approved by the MN Public 
> Utiltities Commission? 
> http://www.puc.state.mn.us/docs/orders/03-0064.pdf---
> Are residents aware this is an Xcel Renewable Development Project and was 
> approved by the PUC in 03 which qualifies for rate payers to pay 
> for this project 
> and the energy?
> "On April 9, 2003, Xcel requested that the Commission approve its 
> Purchased 
> Power Agreement (PPA) with Crown Hydro and authorize recovery of 
> the combined 
> energy and capacity costs through the fuel clause.
> On May 9, 2003, the Minnesota Department of Public Service (the 
> Department) 
> reviewed the
> purchase price in the PPA, and concluded it was reasonable. The 
> Department 
> also reviewed the financial and operational risks in the PPA, and 
> concluded Xcelâ
> s ratepayers are reasonably protected from both... 
>
snip 
> The Xcel Riverside Coal Plant at 414MW in Minneapolis. Coon Rapids Dam is 
> scheduled to go back online in 2008 with 7.2 MW of power if that 
> gives folks 
> perspective... 
>
snip 
> For such a small amount of energy, does it make that much sense 
> to invest in 
> this project? ...
snip
> And would the City of Minneapolis be better off 
> directing that 
> investment into new technologies now, like fuel cells, or to 
> invest in passive 
> solar power, and green roofs instead? 
> 
> Amy Luesebrink
> Clean Energy Now member
> Lind Bohanon and Shingle Creek Neighborhood staff 
snip

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