Sunday, March 21, 2010

Biomass Plant

The NAACP sent a letter drafted by Josh Dickinson to the City Commission addressing concerns over the building of a 100 MW Biomass Plant in 2013 for energy (see attached) and requested a meeting to discuss this development as soon as possible. A meeting took place on March 15, 2010 with Kathy Viehe (GRU Assistant General Manager, Customer Support Services), J. Lewis Walton (GRU Marketing Manager, Utilities), Robert Hunzinger (GRU General Manager), Nona C. Jones (GRU Community Relations), Dr. Michael V. Bowie (NAACP President), NKwanda Jah (NAACP Executive Committee Member), Josh Dickinson (NAACP Executive Committee Member), and City Commissioner Scherwin Henry (District 1).

We discussed the impact that a 100 MW Biomass plant that would cost $500 million would have on the low income populations of Gainesville who often live in energy inefficient rental properties and use high energy appliances. The company (GRE, LLC) that would sell the energy to GRU would place its cost (of building the plant and producing the energy) in the price and the cost to GRU would be passed on to the customer. We also discussed the need for a Biomass Plant so soon, as opposed to the development of conservation strategies that will extend the deadline (of 2023) for the need of this new plant. Finally, the size of the plant was discussed since a 100 MW plant would require more wood. GRU presented the NAACP with a cost analysis of building different size plants.

During this conversation, several things came to light including a 3-tier structure for paying for electricity. The numbers although they may not be accurate, provide an idea of what the cost currently is:
  • 2.8 cents when the usage is less than or equal to 250 kilowatt hours.
  • 6.0 cents when the usage is between 250 and 750 kilowatt hours
  • 10.2 cents when the usage is greater than 750 kilowatt hours
(Note: the average GRU customer uses 813 kilowatt hours.)

Finally, we discussed the development of an ordinance that would require landlords to ensure that their property was energy efficient. Commissioner Henry commented that the city could not stipulate specific conditions for the property of landlords. They would have to require it for all homeowners. A concern that was presented to those in attendance was that the letter was sent to the City Commission and yet GRU was addressing the concerns.

Josh wrote the follow-up letter to Robert Hunzinger (General Manager):

“Bob,

Yesterday's meeting was useful and informative. I believe GRU has initiated a number of programs with the potential for significantly benefiting our lower income population. It is up to our City Commission to authorize and facilitate a scaling up of the most effective efforts by GRU. Perhaps NAACP, 4As and other groups could support GRU in its educational outreach efforts.

Some areas are outside the purview of GRU, such as dealing with rental unit landlords. However, GRU via its network of contacts with other utilities might be able to identify innovative strategies that could be brought to the attention of our Commission.

I agree that "Doing nothing is not an option". I maintain that there are other options than a 100 MW biomass plant that could positively change both the size of the energy consumption pie and the relative sizes of the pieces of the pie (see Page 7 of your "The Future of Energy Production in Gainesville"). Aggressive expansion of existing and new conservation, efficiency and education programs represent obvious options that would benefit our lower income population while reducing GRU's need for additional generation capacity.

Outside the box..........GRU's progressive rate structure under which those using more energy pay more per KWh is a step in the right direction. An unintended consequence is that those who are profligate energy users by choice pay the same higher rate as the low income home owner/renter with poor insulation, old/faulty appliances, and incandescent lighting. How might this inequity be corrected?

With best regards,

Josh Dickinson"

I am asking that Josh and NKwanda add any additional information in reference to this matter.

Dr. Bowie

Dr. Michael V. Bowie, President
Alachua County Branch
National Association for the
Advancement of Colored People
PO Box 593
Gainesville, FL 32602
E-mail: naacpacb1@yahoo.com

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