PUBLISHER'S LETTER

We should start by congratulating the President and Vice-President elect and new and reelected members of the Senate and House. We look forward to reporting on the campaign promise of energy independence through renewables, clean coal and nuclear generation.

This issue opens with our coverage of the CanWEA convention. Robert Hornung lays out a strategic plan for Canada’s wind industry as president of CanWEA. To get to 12,000 mws of wind by 2016, he’s calling on government to streamline permitting, improve transmission infrastructure, double the tax credit incentive to compete, and create a manufacturing base for wind production. He uses examples of how the US, Spain and Denmark built theirs and points out Canada’s position as the sixth largest electricity system in the world but only the 11th in installed wind generation. He even sees an export market evolving to the US, beginning on page 1.

We are introduced to “Today’s USA Carbon Market”, by John Wadsworth who appears on our pages for the second time. He updates us on RGGI capping emissions. He points out California joined by other western states and Canadian provinces will regulate even more sources of carbon emissions. Utilities invested in installed pollution control equipment under the Clean Air Act which first sparked the cap and trade system. Ten states have taken the next step by adopting RGGI standards for the public benefit which includes energy efficiency and auctioning of allowances. RGGI does not provide offsets for renewables. A federal program concerns Wadsworth as it may preempt RGGI, starts on page 1.

Advanced Metering (AMI) is a crucial building block for a more energy-efficient future, Rick Tempchin of EEI shares. AMI, coupled with dynamic pricing, gives customers precise information on the time of use (TOU) and price of their electricity and incentives to lower peak usage. AMI enables utilities to read meters 24-7, detect outages and use dynamic pricing. Pilot programs are now underway at BG&E and Northeast Utilities to measure dynamic pricing. He takes a fresh look at the landmark California Study that examined 2500 customers over a two-year period. The study found a 13% reduction statewide during peak periods with dynamic pricing. See page 14.

Emission wars are threatening 5000 mws of power projects in southern California, Lyn Corum reports on page 15. Eleven projects are in various stages of review and development, and only two have found solutions and can move ahead. The nine stranded are being developed by AES, Edison Mission, NRG, Reliant and six cities. Costs will go up for developers as Emission Reduction Credits (ERC’s) will be more time consuming to obtain.

The GridWise Alliance is made up of over 60 public and private organizations working toward a cost-effective, efficient and safe energy future, Guido Bartels, Class of 2005, writes on page 16. Bartels chairs the alliance and was named to DOE’s Electricity Advisory Committee. The Alliance hosts GridWeek where over 800 participants discuss and debate energy efficiency, Smart Grid and delivering sustainable energy. The Alliance is expanding its reach to other US stakeholder organizations and plans to enter the EU and Australia. Bartels is assisted by Steve Hauser who is GridWise’s president and is responsible for creating new markets and partnerships.

Gasification capacity is projected to grow 70% worldwide by 2015. Eighty percent of that growth will take place in Asia. Twenty-nine gasification plants have been licensed or built in China since 2004. In the US, 45-50 new gasification based projects have been announced in 25 states, Jim Childress of GTC said, but construction will depend on a clear regulatory framework addressing CCS. He proposed a CCS initiative, involving both government and industry that should have multiple, commercial-scale IGCC plants using a variety of coals. See page 17.

John Gimigliano of KPMG’s Climate Solutions Practice offers an overview of legislation US lawmakers are considering. He sees three possible approaches. First, Congress could expand existing environmental policy. Tax incentives for renewables have encouraged production. A second approach could implement a quota or cap and trade system like RGGI and a carbon tax. The Swedish example of a carbon tax with a general tax reduction is known as the “green tax shift” with a nine percent reduction in emissions on page 18.

The Emergency Economic Stabilization Act of 2008 signed into law on October 3, 2008 included legislation for the Energy Improvement and Extension Act. The Act extended the renewable energy production tax credit (PTC) another year to 2009 for wind and refined coal facilities, and extended the 30% investment tax credit for solar energy to 2016. The Act authorized $800 million of new clean renewable energy bonds, and increased investment tax credits for CCS demonstration projects Guy Smith writes on page 20.

Ennodio Ramos sees the power industry transitioning to fuel efficiency and greener energy. Caterpillar’s ACERT technology meets today’s clean air regulations and is a building block to reducing Caterpillar’s carbon footprint by 25% from 2006 levels. Its goal is to make products 20% more efficient by 2020. Caterpillar is researching biofuels that will not disrupt food chains. It is looking at Jatropha trees being tested in Haiti, India and the Philippines. Switchgrass could supplant ethanol from corn by doubling output per acre on page 21.

2009 Schedule
World-Gen is pleased to announce the 2009 Media Kit, also on world-gen.com.
• Jan/Feb--Class of 2009
•Mar/Apr--EEI, PGE, AWEA
•May/June--Coal-Gen, GTC’09
•Sept/Oct--CANWEA, ANS
•Nov/Dec--PGI, Bueche Directory

The 2009 Bueche Directory of Developers is also available for viewing on our site.
Plan on stopping by our PGI Exhibit 3874 in Orlando, December 2-4, 2008.

Richard T. Flanagan

In This Issue Nov/Dec 2008

Fast-Forward To Wind
by Dick Flanagan, Publisher pg. 1

Today’s USA Carbon Market
by John W. Wadsworth, Esq. pg. 1

A Smart Path For The Future
by Rick Tempchin, EEI pg. 14

Emission Wars Threaten Project
by Lyn Corum, Class of 2003 pg. 15

The Gridwise Alliance
by Guido Bartels, Class of 2005 pg. 16

Forging New Partnerships
by James M. Childress, GTC pg. 17

Green Tax Shift Coming
by John Gimigliano, KPMG pg. 18

Energy Improvement Act Of 2008
by Guy Smith, Esq. pg. 20

Need For Greener Power
by Ennodio Ramos, Caterpillar pg. 21

DEPARTMENTS

Publisher’s Letter pg. 4

Industry News pp. 5-9

International News pp. 10-11

Newsmakers pg. 12

California News pg. 15