Presentation for MBP3. Pollution Prevention at DTE Energy October 2004

Transcription

1 Presentation for MBP3 Pollution Prevention at DTE Energy October 2004

2 Voluntary Programs ISO Standard Certification at Seven (7) Plants by Year-End. Two more in 05 DTE Energy Subsidiaries Developing Renewable Energy Projects Clean Corporate Citizen Designation at two Plants Corporate MBP3 and Wastewise Memberships Wildlife Habitat Certification at Six (6) Plants

3 Voluntary Initiatives Rainforest Restoration Program PowerTree Consortium Lake Sturgeon Habitat Restoration Project SOLEC Honoree Green Team Efforts Litter Clean-ups Mercury Thermometer Exchanges Michigan Tree Plantings Provide Environmental Information at Community Events

4 Recycling/Hazard Reduction Will Complete a Five Year Phase-Out of PCB Containing Capacitors on All Distribution Equipment in 2004 Initiated a New Corporate Policy to Ensure All Electronic Equipment is Recovered for Reuse or Recycling. Developed a Communication Plan to Ensure Corporate-wide Awareness of Circuit Board Disposal Issues

5 Vender Controls Comprehensive Vender Risk Analysis Vender Audits Environmentally Protective Terms and Conditions for All Contractors Contractor Training for EMS Roles and Responsibilities

6 Renewable Energy Programs DTE Energy is actively working on current renewable energy projects DTE BioMass is one of the largest landfill gas operators in the USA Operated a small solar electric pilot program Building a hydrogen infrastructure pilot plant DTE Energy Technologies has experience with diary digester and wastewater treatment plant installations in North America Supports geothermal heating and cooling systems with a special rate designed to encourage sales of these units DTE Energy has Issued a detailed Request for Proposal and is committed to working with the successful bidder to futher renewable energy.

7 Background No specifications time line size scope No funding mechanism No requirement for actual energy sales program

8 Background MPSC Ordered Detroit Edison to release an RFP for a Renewable Energy Marketing Program by August 16, 2004 DTE Energy formed a Renewable Energy Marketing Program Task Force DTE Energy met with 4 renewable energy companies to develop parameters for the RFP Green Mountain Community Energy Sterling Planet 3 Phases DTE Energy has interviewed utilities and NGOs regarding their programs for renewable energy

9 Opportunities What is a Renewable Source? Tags or full kwh Price Turn-Key or In-House Managed Sales Goals, Mandates, Volunteer Additional Program Elements (Avoided/Displaced kwh option) Chartwell research has shown that typical response rates to renewable offerings are under 1% of their total load

10 Goals Released RFP 8/16/04 Received Letter of Intent in September 2004 To Receive Proposals in October 2004 Review responses and determine winning bid in December 2004 Work with winning bidder to develop a marketing plan in February 2005 Gain approval of marketing plan in June 2005 Implement plan January 2006 Generate 5% of gross annual kwh electricity sales in renewable energy by Year 5 ~2,250,000 MWH Increase customer satisfaction by offering a renewable product option for customers concerned about the environment

11 Expectations We expect to get additional MPSC clarification as we proceed (General Rate Case, Legislation, etc.) A voluntary premium for renewable energy will likely be required ($ $0.05 per kwh if not subsidized) Additional funding may be required until the time when renewable energy sources can economically compete with nonrenewable sources (Meter Surcharge, PSCR, Rate Base, etc.) A voluntary program of displaced or avoided kwh programs may be useful in selling the renewable energy program. These include geothermal, solar-thermal, and efficient lighting options. (Low Interest Loans, etc.)

12 Renewable Sources Preference will be given to new sources located in the State of Michigan DTE Energy will not exclude proposals for renewable energy sources outside the State of Michigan Economics will be a large factor in the decision making process. It is critical to have a competitively priced offering to customers.

13 Marketing Program Marketing programs will include: Bill Inserts Bill Messages Radio and Print Ads Direct Mail Telemarketing Event Participation The renewable program will be offered to all classes of customers including residential, commercial and industrial customers Residential customers will be offered options of 25%, 50%, or 100% of their monthly participation Commercial and Industrial customers will be offered 1,000 kwh month blocks of renewable sourced power

14 Infrastructure Customer Billing- DECo will modify its existing customer system billing to accommodate renewable customers Enrollment process- DECo will use all existing customer channels including: customer offices, phone centers, and our web site 12 month minimum commitment Commercial blocks could be increased during 12 months, but not decreased during this period National account contacts will be a plus Customer Service- DECo will use all channels of existing customer service to support renewable energy (in conjunction with successful bidder) All renewable purchases would be certified by a third party

15 Summary Opportunity to Create new Renewable Program at DECo Stimulate renewable energy growth in Michigan Provide new service options to DECo customers Working with MPSC to refine program elements Will enough customers pay a premium for renewable energy in Michigan to create a viable program? Program Launch January 2006 Photos from NREL Web site 9/2004