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Public Power Weekly No. 15 April 13, 2009

A news summary for members of the American Public Power Association

IRS issues guidance on CREBs; deadline to apply is Aug. 4 The Internal Revenue Service on April 6 issued a notice seeking applications from public power utilities and others for allocations of bonds under the new Clean Renewable Energy Bond program. A total of $2.4 billion in CREBs is available nationwide. The deadline to apply is Aug. 4, 2009. As much as one-third of the CREBs are available to public power utilities, the IRS said. The notice provides guidance on eligibility requirements and explains how the IRS will allocate the special bonds. An application form is included. The IRS also issued interim guidance April 6 on the new Qualified Energy Conservation Bond (QECB) program. A total of $3.2 billion is available through that program, and volume caps will be allocated to individual states based on population. The two guidance documents from the IRS are posted on APPA’s Stimulus Information Page. (Look Please turn to page 2

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No. 15 April 13, 2009

In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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IRS issues guidance on eligibility requirements for Clean Renewable Energy Bonds; applications due Aug. 4 Continued from page 1

at the bottom of the page, under “Bond Programs.”) To see the application form for the new CREBs, click on “New Clean Renewable Energy Bonds Solicitation.” The form begins on page 21 (Appendix A). The federal stimulus bill, called the American Recovery and Reinvestment Act, authorized an additional $1.6 billion for the CREB program, bringing the total to $2.4 billion. It also increased “volume cap” authority for the new Qualified Energy Conservation Bond program, bringing the total amount of QECBs available to $3.2 billion. As much as one-third of the total amount of clean renewable energy bonds authorized by the stimulus bill will be allocated to qualified projects owned by public power, the IRS said. Rural electric cooperatives are eligible for another third, and the remaining third can be allocated to projects by governmental bodies. The guidance documents issued by the IRS last week are also available on the IRS Web site, as well as on the APPA Stimulus page. To find them, and application materials, scroll down to the bottom of the page and look under the heading,

“Energy Related Bond Provisions.” The first document, Notice 200929, is about Qualified Energy Conservation Bonds. The second document, Notice 2009-33, is about Clean Renewable Energy Bonds. Both programs fall under Section 54 of the Internal Revenue Code. The term “New CREBs” will apply to new clean renewable energy bonds issued under Section 54C. “A project that causes an increase in capacity of an existing project or of a project that was previously allocated CREB volume cap under Section 54 [of the IRS Code] will be treated as a separate, new project for purposes of the allocation of New CREBs volume cap,” the IRS said.

An allocation of “New CREBs” will be valid for three years, the agency said. For more information about these and other stimulus programs of interest to public power utilities, go to APPA’s Stimulus Information Page. There is a new section there called “Stimulus 101: The Basics of Finding and Applying for Grants.” The new section, which is toward the top of the page under the heading “Getting Started,” offers tips on how to sort through the maze of information on the Internet if you want to apply for stimulus funds. (See separate article on “Stimulus 101 on page 3.) n Jeannine Anderson

IRS offers guidance on Build America Bonds The Internal Revenue Service on April 3 issued guidance on the Build America Bond (BAB) program. This program was authorized in the American Recovery and Reinvestment Act of 2009 (the stimulus bill). BABs are a financing tool for state and local governments to issue taxable bonds for infrastructure that they would otherwise finance using tax-exempt bonds. For 2009 and 2010, the issuers can receive a direct subsidy

from the federal government for part of their borrowing costs. For more information on the Build America Bond program, see the summary of tax issues in the economic stimulus bill from Orrick, Herrington and Sutcliffe. The IRS issued a press release about its guidance that provides a link to the guidance document. n Jeannine Anderson

Public Power Weekly No. 15 April 13, 2009

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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“Stimulus 101” tips from APPA offer help in applying for grants With some deadlines for grant opportunities approaching fast, APPA has prepared a guide to the federal government’s stimulus funding process, Stimulus 101: The Basics of Finding and Applying for Grants. The guide is posted on the Stimulus Information page on APPA’s Web site, under “Getting Started.” While applying for government grants can seem daunting, the government wants to distribute billions of dollars ($42 billion in the case of the Department of Energy), some of it through existing programs that utilities may be familiar with, such as DOE’s Weatherization Assistance Program and State Energy Program.

Stimulus 101 includes sections on when and where to apply for funding opportunities; where to look for help with the process; how to find general and detailed information (including application packages) on specific stimulus grant opportunities; what you need to do to register to be able to apply for grants; and tips on applying. Given how tight some deadlines are, APPA recommends public power utilities take a couple of steps right away: registering with www.Grants.gov (the government can take weeks to process a registration); and contacting your state energy office. States must submit their plans for funds from

DOE’s State Energy Program ($3.1 billion in funding) by May 12 and submit their plans for dispensing block grants ($3.2 billion) by May 26. If public power utilities have not made their interests and programs known to the state offices by then, it may be harder for them to receive future consideration. APPA will continue to update its Stimulus Information page as new information becomes available. The association also is planning a series of Webinars on stimulus funding opportunities; the next, Stimulus Funding Opportunities for Broadband Projects, will be held on April 14, 2:00-3:30 p.m. Eastern time (see below). n Robert Varela

APPA offers April 14 Webinar on stimulus opportunities for broadband APPA will host a Webinar on Tuesday, April 14, on Stimulus Funding Opportunities for Broadband Projects. The Webinar will take place from 2 to 3:30 p.m. Eastern time. Jim Baller, president of the Baller Herbst Law Group, Washington, D.C., will be the chief presenter. APPA Government Relations Representative Corry Marshall will moderate. For more information, see the description posted on APPAnet. Participants need to have a

telephone and a computer with Internet access to join the session. The cost to register is $79 for APPA members and $159 for non-members. Register at APPAnet.org. If you need an APPAnet username/password, e-mail Kimani Kinyua, APPA, at kkinyua@APPAnet.org or call him at 202/467-2955. Registration is for one computer and one phone line (a speaker phone is allowed). When you register, information on the toll-free

number and link will be provided. The Webinar will be archived and available as a download to attendees. A DVD of the archived Web conference will be available later through the APPA Product Store. You can keep track of other opportunities provided by the federal stimulus bill, the American Recovery and Reinvestment Act, on APPA’s Stimulus Information Page. n Jeannine Anderson

Public Power Weekly No. 15 April 13, 2009

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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Supreme Court US electric grid has been compromised by spies and hackers, newspaper reports affirms cooling water intake rule Spies have hacked into the U.S. Utilities’ and others’ increasing

electrical grid and have left software programs there that could be used to disrupt service or damage infrastructure, The Wall Street Journal reported on its front page April 8. U.S. officials said the cyber spies came from China, Russia and other countries, according to the Journal article, although Chinese and Russian officials denied any involvement in spying on U.S. infrastructure. The cyber spies and hackers have not yet tried to damage the U.S. power grid, but they might do so in case of a war or other crisis, the officials were quoted as saying. Water and sewer systems, as well as the electric grid, are at risk, they warned. The intrusions appear to be spread broadly across the United States, and do not target one particular region or utility, said a former Department of Homeland Security official.

This is not the first time security officials have warned that utilities could be subject to a cyber attack via the Internet. Last year, at a conference in New Orleans, CIA analyst Tom Donahue told utility engineers that hackers have disrupted electric service in other countries and have used their ability to do this to demand money. He did not say where the attacks took place, or how much money was demanded.

reliance on the Internet makes their systems more vulnerable to damage by hackers, officials said. Forbes reported that cyber security insiders said the news did not surprise them, as these intrusions have been common knowledge among security experts. However, they wondered which government officials had leaked the news about spies hacking into the grid, and why they had leaked it. The business magazine noted that Sens. John Rockefeller, D-W. Va., and Olympia Snowe, R-Maine, introduced legislation early this month that seeks to impose wide-ranging new cyber security regulations. A multi-billion-dollar effort to protect the nation’s cyber security, which started under the Bush administration, is due to be completed this week. Forbes quoted Alan Paller, director of the SANS Institute (an organization that offers cyber security training), as suggesting that the news might have been leaked to put pressure on utilities. “Someone got tired of the utility companies saying this isn’t happening,” said Paller. “This information may have been shared to persuade the utilities that they can no longer bury their head in the sand.” n Jeannine Anderson

Upholding a rule on cooling water intake structures for power plants, the Supreme Court ruled that federal regulators may consider costs in setting standards under the Clean Water Act. In an April 1 decision in Entergy v. Riverkeeper, the Supreme Court overturned an appeals court ruling that said the Environmental Protection Agency could not use cost-benefit analysis in setting standards for cooling water intake structures that “reflect the best technology available for minimizing adverse environmental impact.” Reversing the lower court decision, the Supreme Court said EPA “permissibly relied on cost-benefit analysis in setting the national performance standards and in providing for cost-benefit variances from those standards as part of the Phase II regulations [for existing facilities].” Writing for the majority, Justice Antonin Scalia left open the possibility that a “rigorous” form of cost-benefit analysis (such as a test that the cost simply exceeds the benefits by any amount) may not be permissible under Section 316 of the Clean Water Act. However, in the rules “challenged here the EPA sought only to avoid extreme disparities between costs and benefits,” he said. n Robert Varela

Public Power Weekly No. 15 April 13, 2009

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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APPA tells Congress it supports renewable electricity standard of 15% by 2020 APPA told Congress it supports a federal renewable electricity standard mandate of no more than 15% by 2020, provided that such legislation meets certain conditions. Among other things, APPA said, such a measure should: • minimize costs to consumers; • address grid reliability; • provide for Congress to review the need for such legislation once a federal mandate to reduce greenhouse gas emissions is enacted; and • allow for the use of energy efficiency measures to meet the standard. “We believe such an RES would provide significant environmental and energy security benefits,”APPA President and CEO Mark Crisson said in a March 31 letter to all members of Congress. “At the same time, we believe an RES of 15% by 2020 is the maximum that this economy, electricity consumers, and the electric transmission grid can accommodate in the next 10 years.” Some have asserted that this is not aggressive enough and have proposed requirements as high as 25%, Crisson noted. These propos-

als “are in part justified with claims that a 25% RES will actually lower electricity bills, as well as create thousands of new jobs and somehow resolve the unavailability of substantial amounts of renewable resources in certain regions of the country,” he said.

ity markets are operated by regional transmission organizations or independent system operators under the supervision of the Federal Energy Regulatory Commission “will pay even more due to the flawed design and operation of those markets,” Crisson said.

Such claims “are counter intuitive and should be considered carefully and with great skepticism,” Crisson said. “The fact is that renewable energy resources are simply more expensive to develop than most alternatives, and will be for the foreseeable future, no matter what the scale of such development. That is precisely why Congress is considering mandating them and why Congress has provided significant financial incentives for their development over the past several years: so that development will actually occur despite their higher cost.”

Increased costs “will be even more of a problem if an RES is combined with, or soon followed by, climate change legislation, which will have yet additional costs for the consumer,” he said.

Cost increases associated with an RES “will pose special challenges for low- and moderate-income households as these consumers tend to spend a larger share of their budgets on energy-related products and services,” he said. Further, electricity consumers in regions where wholesale electric-

The intermittent nature of some renewable resources (such as wind and solar) poses challenges to transmission grid reliability as a higher proportion of this type of generation comes on line, Crisson said. “The engineers operating the transmission systems report that, given existing technology and capacity constraints, 15% of the grid relying on these resources is more manageable from an operational standpoint than a higher number and will ensure greater stability of the grid in the future,” he said. APPA policy resolution No. 09-02, available on www.APPAnet.org, outlines the association’s support of a “workable” federal renewable electricity standard. n Jeannine Anderson

Public Power Weekly No. 15 April 13, 2009

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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Citing housing market, recession, Moody’s assigns negative outlook to US local government sector Moody’s Investors Service has assigned a negative outlook to the U.S. local government sector, citing “the housing market collapse, dislocations in the financial markets, and a recession that is broader and deeper than any recent downturn.” Moody’s defines the sector as cities, counties, school districts and special districts, such as water and sewer districts, fire districts and library districts. The April 7 report, “Moody’s Assigns Negative Outlook to U.S. Local Government Sector,” also notes that the negative sector outlook “does not suggest that the prospects for local government credit ratings are uniformly negative.” “The report outlines the key challenges facing local governments in the current environment and highlights what will likely drive rating decisions,” said Moody’s Senior Vice President Eric Hoffmann, author of the report. “These are standard elements of our existing rating methodology that have taken on increased importance in light of the particular challenges of current economic and credit conditions.” Moody’s said key drivers of ratings over the next 12-18 months include each local government’s exposure to: • Market volatility, particularly the

potential liquidity implications of failed remarketings of variable rate debt; • Industries particularly at risk in the current economic downturn, including real estate development, auto manufacturing and financial services; • Volatile and declining revenue sources, such as sales and real estate transfer taxes, that are particularly sensitive to economic fluctuations, and; • Expenditures that are legally mandated and/or effectively fixed in the near term. Those weaknesses could be mitigated by other factors,

Moody’s said, such as: aboveaverage reserve levels; demonstrated willingness and ability of management to make rapid, if not multiple, mid-year budget adjustments; and consistently conservative budget assumptions. “The governance strength of individual issuers and the behaviors [that] demonstrate their willingness and ability to adapt to that environment will determine the overall trend in individual ratings,” the report said. The report, “Moody’s Assigns Negative Outlook to U.S. Local Government Sector,” is available to subscribers at moodys. com. n Robert Varela

Carbon tax makes sense, Friedman says A carbon tax would be a better way to deal with greenhouse gases than a cap-and-trade system, columnist Thomas Friedman said in the April 8 New York Times. Critics of cap and trade have been saying that such a system would be a tax, albeit a hidden one, and are attacking cap and trade on the grounds that emissions auctions would be managed by the same people who brought us the current economic crisis, Friedman said. “Since the opponents of cap and trade are going to pillory it as a tax anyway, why not go for the real thing—a simple, transparent, economy-wide carbon tax?” he said. Rep. John Larson, D-Conn., has circulated a draft carbon tax bill that also would impose a fee on carbon-intensive imported goods. Revenues raised by the tax would go to reduce payroll taxes. “People get that,” Friedman said. n

Public Power Weekly No. 15 April 13, 2009

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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APPA National Conference highlights governance, management issues APPA’s National Conference, to be held June 15-17 in Salt Lake City, will feature several sessions designed to help utility executives and governing boards function more effectively. Attendees will be able to learn about the economic stiumuls bill in a session called “Update on the American Recovery and Reinvestment Act of 2009 and Opportunities for Public Power.” Other sessions include “How Policymakers are Responding to the Current Economic Downturn,” a session that will examine strategies for meeting short-term financial needs while ensuring long-term financial health; and “Monitoring Organizational Performance for Utility Governing Boards,” which will help utility boards monitor organizational performance and effectively communicate their goals and findings to the CEO/general manager. Strategic planning will also be featured, with a session focusing on “Strategic Business Planning in a Changing Environment,” a session covering the importance of strategic planning and implementing the planning process; and “Board Governance for the Green Wave: Leadership Skills for Converging Markets,” which will define and clarify strategic planning skills for both traditional energy sources

and the emerging green sector. The conference will also include sessions on helping utility boards and executives with long-term strategic planning. Attendees will learn about the future of fuels, transmission and distribution, energy efficiency programs, environment and renewable topics, work force issues, and delivering world-class customer service. Conference attendees can also attend pre-conference seminars on June 13 and 14 on a wide range of issues. Seminars are an opportunity for new and experienced utility executives and governing

board members to learn about the issues affecting their utilities. More than 10 pre-conference seminars will be offered, including “Introduction to Utility Governance,” “Financial Planning for Boards and Managers,” “Board Leadership and Decision Making for Officers and CEOs,” and “Conducting an Organizational Check Up.” The 2009 APPA National Conference will take place at the Salt Palace Convention Center. For more information or to register, visit www.APPAnet.org under “Events” or contact Paulette Kum at 202/467-2941 or PKum@APPAnet. org. n

APPA: regulators should support NERC plan to terminate program Federal regulators should support the North American Electric Reliability Corp.’s plan to terminate its Reliability Readiness Evaluation and Improvement Program, APPA said. In an April 6 motion filed with the Federal Energy Regulatory Commission, APPA said it fully supports NERC’s decision to end the readiness program in light of its other programs to develop and enforce reliability standards and to improve reliability.

APPA said it “concurs with NERC’s judgment that the readiness program is now redundant in light of the initiation of NERC’s Compliance Monitoring and Enforcement, Organizational Certification, Events Analysis, Benchmarking and Industry Alert programs.” The readiness program “has outlived its usefulness and is no longer cost-effective.” n

Public Power Weekly No. 15 April 13, 2009

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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AMP-Ohio moves forward on 1,000-MW coal-fired plant and 105-MW hydro plant American Municipal Power-Ohio’s proposed state-of-the-art, 1,000MW coal-fired American Municipal Power Generating Station (AMPGS) took another step forward, as the Ohio Environmental Protection Agency issued a final solid waste permit for a landfill that will receive combustion waste from the plant. AMP-Ohio also moved forward on another project, signing a $122.9 million contract with Voith Siemens Hydro for the manufacture of turbines and generators for a hydro project. The turbines are for a 105-MW project at the Captain Meldahl Dam on the Ohio River—one of six hydroelectric projects AMP-Ohio has under development, with a goal of adding more than 380 MW of hydro power to its portfolio. “Our hydro projects are a part of an asset development effort designed to reduce our member communities’ current over-exposure to the volatile wholesale market,” AMP-Ohio President/CEO Marc Gerken said. “This asset development effort, in addition to these significant hydro projects, also includes new fossil fuel development, as well as wind and solar. From our experience in building and operating the Belleville Hydroelectric Plant, we

know that hydro power is reliable, predictable and affordable.”

with another company to produce and market the fertilizer byproduct.

The proposed landfill will be constructed adjacent to the plant, so no off-site hauling of ash will occur on public roads or rights of way, AMPOhio said. The facility will be used for the placement of primarily fly ash and bottom ash. The AMPGS project will use leading edge technology to control emissions and that same technology will reduce the amount of waste from the facility placed in the landfill by about 50% per year, the joint action agency said.

“AMP-Ohio is proud of the AMPGS project,” Gerken said. “And this latest permit is an example of why. We are proposing to build what will be the cleanest facility of its type in the region, not only in terms of emissions, but in terms of limiting and safely disposing of the combustion waste. The Powerspan process brings many advances to the table— efficient and effective control of emissions, decreased waste to the landfill and the strong possibility of future carbon capture. This will truly be a state-of-the-art project.”

The Powerspan ammonia-based scrubbing technology to be used at the plant creates a valuable ammonium sulfate fertilizer, as opposed to the synthetic gypsum that comes from more traditional limestonebased scrubbers, AMP-Ohio said. The joint action agency is working

The landfill permit is one of several critical path permits related to the project and issued in final form, AMPOhio said. An application for the U.S. Army Corps of Engineers 404 Permit remains pending. n Robert Varela

Van Hollen calls for green energy bank Rep. Chris Van Hollen, D-Md., on March 24 introduced a bill that would create a “Green Bank” that would provide financing for qualified clean energy and energy efficiency projects in the United States. The proposed legislation would provide the Green Bank with an initial capitalization of $10 billion through the issuance of “green bonds” by the Department of Treasury, with a maximum authorized limit of $50 billion in green bonds outstanding at any one time, Van Hollen said. n

Public Power Weekly No. 15 April 13, 2009

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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New York Power Authority cancels hydro power increases The New York Power Authority announced March 24 that it is cancelling all proposed rate increases for the utility’s hydro power customers for this year because of the economic crisis facing the state and nation. The move will save New York businesses and residents approximately $16.5 million, said NYPA President and Chief Executive Officer Richard M. Kessel. Kessel said the decision was made to extend current rates for the economic benefit of its customers and the residents of the state as they cope with crushing financial pressures. “New York state and the nation are facing the most severe eco-

nomic crisis since the Great Depression,” said Kessel. “The power authority has heard the call for help and relief from any hydro power rate increase and is responding by holding the line on current hydro power rates for its industrial and municipal customers.” Among those who receive hydro power rates from NYPA are more than 180,000 customers of NYPA’s 51 municipal and rural cooperative electric utilities in upstate New York and Long Island through the federal preference power program, as well as about 130 industrial companies in western New York. The utility said it expects to hold the line on hydro power rates until at least May 2010.

“We asked the New York Power Authority to go back to the drawing board, to consider the upstate households struggling with job loss—to consider the elderly who are trying to make ends meet and younger families trying to start a life,” said state Sen. Neil Breslin of Albany. “And they listened.” State Sen. David J. Valesky of Oneida also applauded the move, saying he is pleased that NYPA “has reconsidered the ill-conceived plan to raise electric rates and give out bonuses to executives.” “NYPA’s decision to abandon the proposed increase is responsible and prudent,”said New York Assemblywoman Addie J. Russell of Watertown and Canton. n Jeannine Anderson

Los Angeles issues rolling RFP for 1,000 GWh of renewables To reach its goal of renewables being 20% of the city’s power resource mix by 2010 and 35% by 2020, the Los Angeles Department of Water and Power issued a rolling request for renewable resource proposals. The rolling RFP calls for proposals for approximately 1,000 gigawatt-hours per year of renewable energy, such as solar, wind or geothermal power. That represents nearly 4% of LADWP’s power sales.

“As we seek to dramatically increase the amount of clean and green energy provided in Los Angeles, this rolling RFP will fasttrack the process of procuring and developing renewable energy projects,” said LADWP CEO and General Manager David Nahai.

LADWP will give preference to proposals that offer immediate facility ownership or to long-term purchase agreements that have an ownership option. Additionally, LADWP is targeting solar projects located in the high deserts of California, close to its existing transmission system.

The utility is looking to acquire renewable energy resources through either immediate ownership of power generation facilities or through longterm power purchase agreements.

Under the terms of the RFP, green power providers can submit proposals anytime throughout the year. LADWP will conduct quarterly, Please turn to page 10

Public Power Weekly No. 15 April 13, 2009

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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Indiana utility develops in-house training program for technicians Broadening a utility’s training program can help reach new hires and inform the existing work force, Joe Thoden of Peru, Ind., Utilities said March 23 at the Engineering & Operations Technical Conference in Austin, Texas. Previously, individual crews at Peru trained their new employees, Thoden said. But with four different crews, the utility had four different ways of operating. The lack of consistent training helped push Peru to develop an apprenticeship program and broaden the journeyman position, he said. “A three-phase training program was developed in-house, aimed at combining the maintenance and the operations departments,” Thoden said. “This required developing the skill sets necessary to achieve the goals and effectively staff our plant for day-to-day operation.” All journeyman power plant technicians, as the new position was named, are required to enter into the program, which includes training videos, classes at Indiana Vocational Technical College and 8,000 hours of on-the-job training. The training lasts four years for new technician apprentices.

The utility offered employees, a substantial increase in pay to take part in the program, Thoden said. “We wanted to increase employees’ overall knowledge of plant and operating procedures, enhance decision-making abilities, empower employees to make these decisions, establish lines of communication between the employees, foster an attitude of working together to achieve a common goal for the plant and provide the employees an environment with the tools they need to continually move forward,” he said. “When they complete this program, each journeyman technician has the ability to start up, shut down, monitor, inspect, fix any piece of equipment we have,” Thoden said. “We have operators who are much more aware of how the different plant systems are interrelated, how they’re all interdependent with one another,” he said. “We have operators who know and understand the principles involved with the various types of machinery we have, operators who see and comprehend the big pictures.” n David L. Blaylock

LADWP seeks 1,000 GWh of renewables

Public Power Weekly No. 15 April 13, 2009

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Continued from page 9

pre-proposal conferences for bidders to receive additional information. The municipal utility said it will open and consider the proposals on a monthly basis, and could then begin evaluation and negotiation of a particular project right away. “The renewable energy industry has become very fluid and dynamic,” Nahai said. “We needed to create a mechanism that will streamline and enhance our ability to take advantage of technological advancement and respond quickly to new legislative or financial opportunities as they arise.” Eligible renewable resources include wind, biomass (defined as organic material), solar thermal, solar photovoltaic, geothermal, small hydroelectric (30 MW or less), digester and landfill gas, and biodiesel. Other technologies may include ocean wave, ocean thermal and tidal current; and fuel cells using renewable fuels. LADWP said it is on track to meet its goal of 20% renewable energy by 2010 and 35% by 2020. Its renewable energy supply has increased from about 3% in 2005 to 14% projected for 2009. n Robert Varela

In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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Maryland Gov. O’Malley wants state regulators to have authority to order utilities to build new power plants Declaring that electricity deregulation has failed, Maryland Gov. Martin O’Malley wants the state Legislature to return Maryland’s electricity market to regulation. Among other things, the governor wants to give state energy regulators the power to order utilities to build power plants, if it is in the public interest to do so. “Deregulation has had a dramatic, adverse, painful effect on electricity markets,” O’Malley said. “Rather than relying on the market forces that have failed to deliver for us, we’ll put those important decisions about securing our energy future into the hands of the Public Service Commission.” “The promise of deregulation— that the free market would drive energy prices down through competition—has failed the people of Maryland,” said Malcolm Woolf, director of the Maryland Energy Administration. “Taking control of the decision making process will ensure that these important matters will be decided in the best interest of consumers.” “We will give the PSC the responsibility and authority to determine when new energy generation is needed, rather than relying on broken energy markets to make the determination,” the governor said in a statement that issued jointly with Woolf.

These decisions “will no longer be made based on the private economic interests of energy utilities, but rather on the public interest, giving the PSC more tools with which to protect consumers and greater leverage to develop renewable energy sources in Maryland,” said O’Malley and Woolf. “We will direct the establishment of new generation plants when it is determined by the PSC that an en-

ergy company is not developing a generating site due to private economic interests,” they said. “Despite the urgent need for new generation, some energy companies are not building new plants, even when they have land on which to build. This legislation would grant the PSC the authority to direct the development of a plant on those sites when it is in the public interest to do so.” n Jeannine Anderson

APPA sponsors National Electrical Safety Month in May, offers campaign kit APPA works with the Electrical Safety Foundation International (ESFI) on to help sponsor May as National Electrical Safety Month.  ESFI offers its National Electrical Safety Month campaign kit packed with up-to-date electrical safety facts and figures, tools and tips to help organizations in promoting electrical safety in May and year-round.  The kit has everything a public power utility needs to run its own local or regional May campaign, including educational pieces, press materials, and multimedia content. This year’s theme addresses consumer and community awareness of counterfeit electrical products. ESFI’s Buyer Beware Anti-Counter-

feiting Campaign has been created to help increase national awareness about dangerous and defective counterfeit electrical products that could threaten public health and safety.  The 2009 kit is now available to be viewed and downloaded at ESFI’s Web site, www.electricalsafety.org/. APPA also is interested in hearing about public power utilities’ local electrical safety programs.  To inform the association about National Safety Month or other safety activities; or to obtain a complimentary copy of the campaign kit, contact Tobias Sellier, APPA communications specialist, at 202/467-2927 or tsellier@appanet.org. n

Public Power Weekly No. 15 April 13, 2009

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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APPA Events Calendar

Public Power Weekly No. 15 April 13, 2009

April

Sharpen Your Skills at the Underground Lineworkers School May 12–15, 2009 MMUA Training Center Marshall, Minn. Classroom sessions combined with two days of hands on task training for journeymen, apprentices and senior lineman. Task training options: �

Fault locating & repair

600 Amp double circuit

600 Amp connections

Repair & maintenance

Innerduct installation under high pressure fuel line NEW! Senior lineman class

For more information, visit www.APPAnet.org and click on “events.”

Invest in your work force today …Reap the benefits tomorrow

Webinar: Stimulus Funding Opportunities for Broadband Projects April 14 Register

General Accounting, Finance & Audit Spring Meeting April 23 - 24

July Combined Heat and Power Seminar July 23

Albuquerque, N.M. Contact: Heidi Lambert hlambert@APPAnet.org, 202/467-2921 Register

Washington, D.C. Contact: LeAnne Nienhuis lnienhuis@APPAnet.org, 202/467-2973 Register

Economic Development & Broadband Conference July 26 - 29

Supply Management Committee Meeting April 29 - May 1

Advisory Committee July 26 - 28

San Diego, Calif. Contact: Cristina Zadorojny czadorojny@APPAnet.org, 202/467-2945 Register

May Spring Education Institute May 4 - 8

Minneapolis, Minn. Contact: Kathryn Obal kobal@APPAnet.org, 202/467-2919

San Francisco, Calif.

Victoria, British Columbia, Canada

September Business and Financial Conference Sept. 13-16 Savannah, Ga.

October Legal Seminar Oct. 11 - 14 Savannah, Ga.

June National Conference June 13 - 17

Salt Lake City, Utah Contact: Paulette Kum pkum@APPAnet.org, 202/467-2941 Register

Constructing, Operating and Maintaining Underground Distribution Systems Oct. 19 - 22 Braintree, Mass.

For a full APPA Events Calendar, visit APPAnet.org. n

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In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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Check out APPA’s new career services on the Web Visit the Career Center of APPAnet.org or Careersinpublicpower.com and take advantage of APPA’s new recruiting services for 2009. Our Career Center now allows job seekers to upload resumes—and recruiters to obtain resumes from job seekers. Employers can create employer accounts and will find the ad placement process much faster. APPA members can post online ads for $175 for a 30-day posting or $225 for a 60-day posting (rates are $275 and $325, respectively, for nonmembers). Ads in Public Power Weekly cost 70 cents per word for members and 80 cents per word for nonmembers. Job posting subscriptions are available in packages of five or 10—or unlimited for a full year. If you have questions about classified ads in Public Power Weekly, APPAnet.org or Careersinpublicpower.com, call or write David L. Blaylock, DBlaylock@APPAnet.org or 202/467-2946. n

Spring Education Institute M I N N E A P O L I S , M I N N E S O TA

|

Job Costing & Plant Accounting Advanced Public Utility Accounting

Management Training � Effective Management of Electric Field Operations Tailored to qualified and experienced lineworkers, first line supervisors, and various levels of operations managers

Engineering Electrical engineer, senior, associate, assistant—F/T position in the Power Operations Department. Bachelor of science degree in electrical engineering. Five years engineering experience for senior electrical engineer and electrical engineer; state of California registration, two years engineering experience for associate; and EIT certification, no experience for assistant. Application and detailed job announcement available at www.mid.org, or at Human Resources Department, Modesto Irrigation District, 1231 11th St., Modesto, CA 95354. Phone: 209/526-7341. Engineers—Public Works Commission of the city of Fayetteville. Immediate employment opportunities (starting pa y commensura te with qualifications) engineer I electric systems $51,272-$68,328/ annually; engineer III electric systems $77,438-$103,272/annually. Attractive Please turn to page 14

Principles of Project Management Suited for engineers, project managers, and construction/ operations managers

Key Accounts Certificate Program Fast Track � Implementing a CustomerFocused Key Accounts Program

Ratemaking � Basic Utility Cost of Service & Retail Rate Design �

Advanced Utility Cost of Service & Retail Rate Design

Policymakers & Leadership � Leadership “Simply” Leadership

Policymakers Workshop: Governing in a Changing Marketplace

Power Supply 101 & Key Accounts � Power Supply 101: The Basics for Non-Engineers

� �

Page 13

M AY 4 – 8 , 2 0 0 9

Take advantage of a wealth of professional development opportunities in one convenient location! Accounting � Public Utility Accounting

No. 15 April 13, 2009

Developing Your Key Accounts Representative The Effective Key Accounts Toolbox Key Accounts Certificate Program Oral and Written Exams

For detailed course descriptions and registration information, please visit www.APPAnet.org and click on Events or contact Kathryn Obal at 202/467-2919.

In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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Classifieds Continued from page 13

benefits package includes: comprehensive health and dental plans, retirement pension, paid vacation, holidays and sick leave, tuition assistance and more! For additional information about PWC and other job opportunities available, including job descriptions and qualifications, please visit the Web site at www.faypwc.com.

Management Manager of electric operations—The Municipal Energy Agency of Nebraska (MEAN), a division of the joint action agency NMPP Energy in Lincoln, Neb., seeks a manager for our energy dispatch center. Oversee energy purchases and transmission, billing and reconciliation, negotiate for short-term supply, assist with contract

Public Power Weekly negotiations, and represent MEAN at regional organizations. Position offers competitive pay, excellent benefits and bonus potential. For a complete description and requirements, visit www.nmppenergy.org/careers. Apply to: NMPP Energy, P.O. Box 95124, Lincoln, NE 68509, or e-mail jobs@nmppenergy.org. EOE.

Operations Dispatching shift super visor—Full-time vacancy in the Power Operations Department, Electric Resources Division. High school diploma or equivalent. Two years of college-related courses. NERC certification required. Five years dispatcher experience or equivalent. Application and detailed job announcement available at www.mid.org or at HR Department, Modesto

A news summary for members of the American Public Power Association

Publisher

Production Editor

Jeanne Wickline LaBella 202/467-2948 JLaBella@APPAnet.org

David L. Blaylock 202/467-2946 DBlaylock@APPAnet.org

Editor

Circulation

Robert Varela 202/467-2947 RVarela@APPAnet.org Managing Editor

Jeannine Anderson 202/467-2977 JAnderson@APPAnet.org

Susan Lynch 202/467-2970 SLynch@APPAnet.org Kelvin Andrews 202/467-2982 KAndrews@APPAnet.org

Irrigation District, 1231 11th St., Modesto, CA 95354; 209/526-7341. Electric utility distribution system operator or assistant system operator—City of Redding, Calif. $33.95 - $45.50/hour (based on experience), plus shift differential and excellent benefits package. Direct the safe and reliable operation of the Redding Electric Utility’s distribution and transmission systems. 12-hour work schedule. Relevant experience required. For application and job flyer, call our Job hotline at 530/225-4069, download from our Web site at www.ci.redding.ca.us, or pick up at the Personnel Department, 777 Cypress Ave., Redding. Apply by 4 p.m., April 22, 2009. EOE/FAAE. n

Phone: 202/467-2900 Fax: 202/467-2910 www.APPAnet.org Public Power Weekly is published weekly except the last week of the year by the American Public Power Association, 1875 Connecticut Ave. N.W., Washington, D.C. 200075715. Copyright © 2009, American Public Power Association. Advertising

For information on advertising, contact Jeff Haas, 202/467-2953 or JHaas@APPAnet.org.

No. 15 April 13, 2009

Page 14

In this issue 1 IRS issues guidance on CREBS 2 ...and Build America Bonds 3 APPA offers ‘Stimulus 101’ 3 Webinar on grants for broadband 4 Electric grid compromised by spies 4 Court affirms cooling water rule 5 APPA supports RES of 15% 6 Moody’s outlook for cities 6 Friedman supports carbon tax 7 APPA National Conference 7 NERC program not needed 8 AMP-Ohio plants move forward 8 Van Hollen calls for green bank 9 NYPA cancels hydro increase 9 LA issues renewables RFP 10 Utility develops in-house training 11 Maryland re-regulation? 11 APPA supports Safety Month Events Calendar

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Public Power Weekly, April 13, 2009