HomeMy WebLinkAbout11 Renewable Energy Rates Agenda Item #DONNER
DistrictPublic Utility
ACTION
To: Board of Directors
From: Kathleen Neus
Date: March 04, 2009
Subject: Adopt an Ordinance Revising a Rate for the Voluntary Renewable
Energy Certificate Program (Green Tag Per Kilowatt Hour Fee)
1. WHY THIS MATTER IS BEFORE THE BOARD
Only the board can set the pricing for this program.
2. HISTORY
In an effort to help District customers, residential and commercial to reduce their
individual environmental impact, the District began the Voluntary Green Renewable
Energy Certificate Program. Green power or "renewable energy" is considered energy
that is generated from resources that have relatively low impact on the health of
humans, animals and the ecosystem; these resources contribute minimal carbon
dioxide emissions if any. Renewable energy sources are wind, PV, landfill gas,
biomass, geothermal and hydro.
A workshop was held on January 9, 2008 to discuss the Voluntary Renewable Energy
Certificate Program and action was taken on February 6, 2008 to set a rate of an
additional $0.02 per kWh of usage. An additional workshop was held on February 4,
2009.
Renewable Energy Credits (RECs) also called "Green Tags"; represent the
environmental benefits that occur when clean, new renewable energy is substituted for
power that is produced by burning fossil fuel. Revenues that are generated through
Green Tag purchases are reinvested in new forms of renewable energy.
One REC is equal to 1000 kWh of clean renewable energy. 1000 kWh of renewable
energy is the equivalent of offsetting 1500 miles of emissions from a standard car.
Green Renewable Energy Certificate Programs are voluntary in nature; the generated
green power is not necessarily fed back into the purchaser's power grid.
The District currently purchases Green Tags from Bonneville Environmental
Foundation (BEF). BEF began as a support to the Bonneville Power Administration
for watershed restoration programs and to develop new sources of renewable energy.
BEF is a 501(c) (3) non-profit environmental organization. In 2000 BEF developed its
Green Tags product due to the demand for renewable energy in places where utilities
did not have the option. All revenues generated from the sale of Green Tags are
reinvested in new forms of renewable energy.
3. NEW INFORMATION 2010. The
The Districteach REC for $10.001th BEF which whi h is $0 01 perlres March 14,kilo kilowatt hour.. At this time,
Distract purchasesasescurrently
all RECS are wind power.
Costs that are associated with the program include staff time to set up the billing at a
one time cost of approximately $2,000. There is an estimated annual cost of $400 to
the program.
Marketing is another aspect of having a successful program. The District has received
front page coverage in the Sierra Sun, the program was written up in the District's
quarterly Newsletter and applications were available at the Truckee Home Show in
May. The program is also part of the Conservation Committee's list of
recommendations for conservation.
The District purchased 160 RECs for 2008; this was for the last half of the year.
4. FISCAL IMPACT
The fiscal impact to the District is less than $1,000 annually for staff time. The
purchase of all RECs are revenue neutral to the District.
5. RECOMMENDATION
It is recommendation is to change the voluntary customer charge to $0.015 per
kilowatt hour used.
Michael D. Holley
General Manager
Some local NCPA members and what they offer their customers:
Utility Program Name Type of Cost Inception Date
Generation
City of Palo Alto Palo Alto Green Wind, PV $ R 2000/2003
0.015 / kWh / Month or $15.00 per
1000kWh blocks
Roseville Electric Green Roseville Wind, PV $0.015 / kWh / Month- Res & Small 2005
Corn
SMUD Greenergy Wind, landfill gas, 100% - $6.00 / Month 1997
hydro, PV 50% - $3.00 /month
SolarShares PV ($0.01/kWh) 2007
Silicon Valley Santa Clara Green Wind, PV 100% - $15.00 / Month 2004
Power Power ($0.015/kWh)
Silicon Valley Power—Large Commercial and Industrial customers can purchase Green Tags in 1000 kWh blocks for$15.00 per block.
City of Palo Alto—Business Operators depending on usage can choose $0.015 per kWh per month or pay$15.00 per 1000 kWh blocks.
Roseville Electric—Residential and Small commercial $0.015 per kWh or$15.00 per month for 100 % energy usage.
Large Businesses pay$15.00 per 1000 kWh blocks.
PG&E—2009 monthly costs
SKIGreen (Bonneville Environmental Foundation) ski resorts participating in clean energy initiatives. When purchasing a lift ticket, the
individual can request a two dollar contribution towards wind energy which is added to the cost of the lift ticket. Local participating Ski
Resorts include Alpine Meadows, Kirkwood, Mt. Rose and Northstar-at-Tahoe.
TR
UCKEE
Utility District I
Public
Ordinance No. 2009 - XX
REVISE THE RATE FOR THE
VOLUNTARY RENEWABLE ENERGY CERTIFICATE PROGRAM
WHEREAS, in an effort to help District residential and commercial customers to reduce their individual
environmental impact, the Board of Directors took action to participate in a voluntary Green Renewable
Energy Certificate Program; and
WHEREAS, Renewable Energy Credits (RECs) also called "Green Tags" represent the environmental
benefits that occur when clean, new renewable energy is substituted for power that is produced by burning
fossil fuel; and
WHEREAS, the Board of Directors directed staff to pursue the voluntary Green Renewable Energy
Certificate Program with Bonneville Environmental Foundation to provide an accounting of the number of
Green Tags purchased and the certification; and
WHEREAS,on February 6, 2008,the Board of Directors set the cost to participate at$0.02 per kilowatt hour
(kWh) usage; and
WHEREAS, on February 4, 2009, a workshop was held to discuss the outcome and participation of the
"Green Tag" program after one year; and
WHEREAS, the Board of Directors decided to revise the cost to participate in the program at $0.015 per
kilowatt hour(kWh) usage; and
WHEREAS, the $0.015 per kWh usage rate includes all labor with overheads plus the cost to purchase
Green Tags.
NOW,THEREFORE, BE IT ENACTED by the Board of Directors of the Truckee Donner Public Utility District
as follows:
1. This ordinance shall be effective sixty(60)days after adoption by the Board of Directors of the District.
2. The Clerk of the District shall immediately cause a copy of this ordinance to be published in a newspaper
of general circulation and posted in three places within the District.
PASSED AND ADOPTED by the Board of Directors of the Truckee Donner Public Utility District at a meeting
duly called and held within the District on the fourth day of March 2009 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
J. Ron Hemig, President of the Board
ATTEST:
Michael D. Holley, Clerk of the Board