Supreme Court Agrees to Review Who Owns Riverbeds in PPL Montana Hydropower Case by Jeffmailto:[email protected] Stanfield the U.S

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Supreme Court Agrees to Review Who Owns Riverbeds in PPL Montana Hydropower Case by Jeffmailto:Jstanfield@Snl.Com Stanfield the U.S Volume 7 Issue 25 Friday, June 24, 2011 Supreme Court agrees to review who owns riverbeds in PPL Montana hydropower case by Jeffmailto:[email protected] Stanfield The U.S. Supreme Court agreed June 20 to Montana Supreme Court summary judgment For more than a century, the riverbeds review whether the state of Montana owns that the state owns more than 500 miles of riv- beneath those facilities have been treated as the riverbeds and has the right to charge erbeds and has the right to charge the power owned by private parties or the federal govern- PPL Montana LLC tens of millions of dollars company tens of millions of dollars in past and ment, but the lower court concluded that the in past and future rents for land under the future rents for use of the rivers. rivers were navigable when Montana joined the power company’s century-old dams. The state claimed title to riverbeds under United States in 1889 and, therefore, Montana The court will review the constitutional test 11 hydropower facilities that PPL Montana held title to the riverbeds, according to ques- for determining whether the rivers on which owns along the West Rosebud Creek and tions presented to the Supreme Court. the dams are located are navigable for state the Missouri, Madison, Clark Fork and “The consequences are draconian,” said title claim purposes. PPL Montana appealed a Flathead rivers. the questions presented. “The court below Continued on p 22 In this Issue Click on headline to advance to story Transmission interests weigh benefits, Gates: New nuclear drawbacks of RTOs in West outshines solar, a ‘cute’ by Kerrymailto:[email protected] Bleskan alternative Independent generation and transmis- System Operator. The interconnection con- sion interests made their pitch for increased tains nearly 40 discrete balancing areas. Midwest ISO grants market and operational cooperation in the ‘Life is easier in an RTO’ conditional ‘multivalue’ West at a recent transmission conference in approval to 237-mile Denver. From the perspective of a smaller wind Brookings project power developer, “Life is easier in an RTO,” At CLE International’s Western Transmission said Michael Rucker, CEO of juwi GmbH’s Roundup on June 16-17, a number of util- Boulder, Colo.-based subsidiary juwi Wind SD regulators approve ity and independent power and transmission LLC. RTOs provide consistent interconnec- 345-kV, CapX2020-related interests said working in the West would be a tion requirements and access to markets, transmission line lot easier if the region gets integrated into one including those for ancillary services, and or more regional transmission organizations. allow generators access to more diverse off- The Western Interconnection has two RTOs, takers, he said. Using an RTO usually allows a DOE still ‘on the path’ to install the California ISO and the Alberta Electric solar panels on White House participant to avoid rate pancaking, as well. Continued on p 21 California Energy SEIA: Solar growth in Q1’11 driven Commission committee recommends approval of in part by 2010 ‘overhang’ Palmdale hybrid plant by Corinamailto:[email protected] Rivera Ariz. county board approves The U.S. solar industry remains strong, remains essential to the industry’s contin- construction of 25-MW PV with 252 MW of grid-connected photo- ued success, according to the Solar Energy project voltaics installed in the first quarter of Industries Association. 2011, but the extension of the U.S. Treasury The growth was driven by falling solar Department’s Section 1603 cash grants in energy equipment costs and a rush to take Departments lieu of tax credits and other programs Click on department for more info advantage of the Section 1603 Treasury pro- Projects Policy Summer Holiday Company News Technology SNL Renewable Energy Week will not publish Friday, July 1. Finance Your next issue will be dated Friday, July 8. © 2011, SNL Financial LC. All Rights Reserved. U.S. SOLAR MARKET INSIGHTTM Friday, June 24, 2011 Page 2 Q1Figure comparisons 2-1: State-Level of state-level Installation installations Graphic Q1 COMPARISONS RESIDENTIAL COMMERCIAL UTILITY TOTAL Source: “U.S. Solar Market Insight 1st Quarter 2011,” Solar Energy Industries Association and GTM Research Underlying Data Available in Full Report © Copyright 2011 SEIA/GTM Research 5 © 2011, SNL Financial LC. Departments: Projects Policy Company News Technology Finance All Rights Reserved. Friday, June 24, 2011 Page 3 gram that was expected to expire in 2010 but eventually was extend- New Jersey was the strongest growth market in 2010 and into ed through the end of this year, SEIA said June 16. early 2011, installing 42 MW in this year’s first quarter, according to Tom Kimbis, SEIA vice president of strategy and external affairs, the report. While the state has the country’s most robust and mature said during a June 16 press conference call that the 1603 program solar renewable energy certificate market, the outlook for the state’s is the “linchpin” for continuing the growth of the solar market at the market is more negative, with a likely SREC oversupply taking hold rate it is growing today in the U.S., adding that the U.S. Department by the end of this year. of Energy loan guarantee program, which has a statutory Sept. 30 Kimbis said there are various options for states to position them- deadline, also is a top priority for the industry. selves as leaders, including creating renewable portfolio standards According to the “U.S. Solar Market Insight 1st Quarter 2011” report with a carve-out for solar power, lowering permitting costs and released by SEIA and GTM Research, market growth in this year’s first removing restrictions that exist at homeowner associations that can quarter was driven in part by 2010 overhang; that is, projects that sometimes bar solar system installations. began in 2010 and were completed in early 2011. All three PV market sectors — residential, commercial and utility The impact of 2010 overhang is threefold. It helps explain the fact — continued to grow, with commercial installations showing the that total module shipments to the U.S. in 2010 greatly exceeded strongest gains, SEIA said. installations, and it implies the need for being careful when fore- Cumulative grid-connected solar electric installations have casting installations for the rest of 2011. Also, given that the cash reached more than 2.85 GW, or enough to power nearly 600,000 U.S. program is set to expire at the end of this year, a similar dynamic homes, the association said. may play out this year. Specifically, there will be a midyear boom in According to the report, the biggest story in the residential market incentive applications, a late-year boom in module and inverter ship- remains the growth of third-party ownership, either through a lease or ments, and a first-quarter 2012 boom in nonresidential installations. power purchase agreement structure. “The expansion of these offer- SEIA said in its statement that price declines were an important ings to new markets has opened up a great deal of new demand and is growth factor as technology costs fell and the industry matured expected to continue driving growth across the U.S.,” the report said. further, capitalizing on greater economies of scale and streamlined SEIA also said that while no concentrating solar power projects project development and installation. came online during this year’s first quarter, 1.1 GW of CSP and Domestic PV module production in this year’s first quarter reached 348 concentrating photovoltaic projects are under construction. The MW, a 31% increase over the same period in 2010. While production from concentrating solar industry continued its momentum, with several export-oriented firms and facilities dipped because of soft demand in the key projects receiving government loan guarantees during the quarter. feed-in tariff markets of Germany and Italy, plants that served the domestic Solar Trust of America LLC’s 500-MW Blythe CSP plant, for example, market enjoyed healthier use of manufacturing capacity, SEIA said. obtained a $2.1 billion conditional loan guarantee from the U.S. The market was concentrated in a few key states. While the top Department of Energy, SEIA said. seven states, including California and New Jersey, accounted for 82% COMPANY REFERENCED IN THIS ARTICLE: of total installations in the first quarter of 2010, that figure grew to 88% in this year’s first quarter, suggesting that established, leading markets Solarhttp://www.snl.com/interactivex/snapshot.aspx?id=4244237 Trust of America LLC gained an even larger share. The pace of installations grew more than http://www.snl.com/interactivex/doc.aspx?CDID=A-12921049-12339Industry Document: U.S. Solar Energy Industry Continues Record- 50% in 11 of the 21 states analyzed in the report, SEIA added. Setting Growth in 2011 Kimbis said California remains the top-ranking state, as it did in the first quarter of 2010, in terms of installations, followed by New http://www.snl.com/interactivex/doc.aspx?CDID=A-12924920-12083Industry Document: U.S. Solar Market Insight™ 1st Quarter 2011 Jersey, Arizona, Pennsylvania and Colorado. http://www.snl.com/interactivex/feedback.aspx?Id=12925239&Action=estory E-mail this story. TM The Energy Industry Delivered to You Weekly Published by: SNL Financial LC (ISSN 1555-8703) © 2011 Andrew Engblom, Editor E-mail: [email protected] Phone: +1.703.373.0168 Corina Rivera-Linares, Editor E-mail: [email protected] Phone: +1.703.373.0656 Michael Lustig, Managing Editor, Energy Group Mike Chinn, President and CEO • Michael Carter, Director of SNL Energy • Nina Flynn, Subscriptions Manager Contact information: Editorial: E-mail: [email protected] Phone: +1.703.373.0150 Fax: +1.703.373.0159 Subscription Support: E-mail: [email protected] Phone: +1.434.951.7749 Fax: +1.434.293.0407 Subscription Sales: E-mail: [email protected] Phone: +1.434.951.7797 Fax: +1.434.817.5330 Advertising: E-mail: [email protected] Phone: +1.434.951.7829 Fax: +1.434.817.5330 SNL Financial • One SNL Plaza PO Box 2124 Charlottesville, VA 22902 • Phone: +1.434.977.1600 • Fax: +1.434.293.0407 http://www.snl.com mailto:[email protected] © 2011, SNL Financial LC.
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