Lenox wind turbine generates power, interest
in renewable energy
 |
| The city of Lenox, Iowa, had discussed
building a wind turbine and had completed a feasibility
study, so Lenox Municipal Utilities was ready to move forward
with construction when it received Federal pass-through
money to develop a renewable energy project. (photo courtesy
of Lenox Municipal Utilities) |
Lenox, Iowa, Municipal Utilities knew that its
wind turbine, launched at the end of November 2003, would supply
10 percent of the city's energy needs, but the big surprise
was how much interest the 750-kW unit generated in the new Green
City Energy program the utility rolled out around the same time.
Compared to the national average of 1 to 3 percent
participation in green power programs, nearly 13 percent of
LMU's 550 households signed up to contribute a portion of their
monthly bill to renewable development. Although General Manager
Dave Ferris has no statistics
to prove it, "I'm sure the wind turbine helped,"
he speculated. "People come in off the street to ask,
‘How much are we putting out today?'"
The residents of Lenox are no strangers to renewable
energy, since 60 percent of their power is hydroelectricity
purchased from Western. Combined with the output of the wind
turbine, renewable resources now provide almost 70 percent of
the city's power. Support for environmentally friendly energy
is often strong in rural communities, especially for local projects
that bring economic benefits to the area. Still, Ferris admitted,
"I was genuinely shocked—and pleased—at the
response to Green City Energy."
Town had project plans ready
when grant became available
It was a happy coincidence that the turbine and the green power
program went online about the same time, since the projects
developed independently. The city discussed the possibility
of building a turbine for a few years and had even completed
a feasibility study. "Up to that point, it was a break-even
deal," recalled Ferris. "We had the wind resources,
but until the DED block grant, we didn't have the economic resources
to move forward with it."
The Iowa
Department of Economic Development approached the Iowa
Association of Municipal Utilities in 2002 to learn if any
of IAMU's members might qualify for Federal pass-through
money awarded as community development block grants. To be eligible,
51 percent or more of a municipal utility's customers
had to be low or moderate income. "We knew that Lenox
not only met the qualifications, but that it had a renewable
energy project on the drawing board," recalled IAMU Energy
Services Coordinator Patti Cale-Finnegan.
Lenox received a $400,000 community block grant,
which paid for about half the cost of building and interconnecting
the unit. A loan from the city's electric reserve fund covered
the remaining cost. Iowa Governor Tom Vilsack broke ground for
the wind turbine on April 22—Earth Day 2003.
Mandated green energy offering
supports local wind development
A few months after Lenox began building the wind turbine, the
Iowa
Utilities Board completed the final rules for carrying out
a state law requiring all utilities to offer their customers
some sort of green power program. The law covered municipal
utilities and electric cooperatives as well as investor-owned
utilities, but gave consumer-owned power suppliers some flexibility
in meeting the requirements. "The intent of the law was
to support renewable development in Iowa," said Cale-Finnegan.
"IUB knew that a lot of small towns and RECs would need
time and assistance to develop their own renewable products."
To help its members, IAMU created the Green
City Energy umbrella program. Green City Energy borrowed
basic elements from larger utilities' green power programs
that small utilities could customize to meet local needs. For
example, Cale-Finnegan said, if a utility doesn't have
a project planned, it can set up a fund to hold customer contributions
for future renewable development opportunities. "And then
there was Lenox, with a wind generator about to go on-line,"
she said. "That made it easy for the town and its residents
to support green power."
LMU customers may pay an additional $2 each month,
for 100-kWh blocks of renewable energy. The utility requires
a yearlong commitment and applies the contribution to paying
off the wind turbine. "When everyone in town looks up
at that 50-meter turbine spinning, they know what their money
is paying for," observed Cale-Finnegan. "It's got
to be a great marketing tool."
Green city investigates more opportunities
to support renewables
The NEG Micon turbine towers over the community on a hill northeast
of Lenox. LMU only had to extend an existing circuit another
half mile to interconnect it to the grid. The city, which owns
the unit, uses about one tenth of its output in municipal facilities
and sells the excess to the utility. The turbine started generating
at the end of November 2003 and has produced as much as 15,000
kWh in one day. "Winter is a good time to launch a wind
project in Iowa," Ferris observed.
The addition of local wind power to LMU's
generation portfolio and the success of the Green City Energy
program have made Lenox, Iowa, one of the greenest cities in
the country. "Supporting renewable energy and making Lenox
a green city is a way we can ensure that what we're leaving
to our children and grandchildren is a clean environment, a
healthy economy, and a secure nation," explained Ferris.
That support may soon include other sources
of renewable energy, the utility manager added. "Right
now, we are watching towns that are building biodiesel plants,"
he said. "That would be great for the local economy. And,
of course, there is a lot of interest in doing a study for a
second wind turbine."
