SMECO sustainability position paper

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1 Photo by Charles Ward Photo by Glenn Macaranas Stony Creek Wind Farm SMECO sustainability position paper Services: 163,182; Account Holders: 137,000 Service Area: 1,150 square miles Peak Demand (megawatts):1,010.7 on Jan. 7, 2018

2 Sustainability statement SMECO is committed to the protection and preservation of natural resources. SMECO strives to balance the needs of its customer-members with its goal to protect the environment, all while providing reliable, competitively-priced electricity and related services. Our commitment to enhance the quality of life in Southern Maryland is aligned with our commitment to environmental stewardship, and we demonstrate our commitment through leadership, advocacy, and engagement. leadership We work to develop new sources of renewable energy and continue to add wind and solar to our power portfolio. Goals Environmental leadership involves making responsible investments that benefit the environment while allowing SMECO to continue to meet the needs of its customer-members. SMECO s sustainability goals include the following: Continue to evaluate and add competitive sustainable power resources to our portfolio mix to achieve 25% renewable power supply by Pursue value-added opportunities to ensure that investments in renewables balance the benefits to our customer-members. Exceed EmPOWER Maryland energy efficiency targets, implementing proven programs and services to help customer-members conserve and use energy efficiently. Communicate our environmental goals and performance to our employees, customer-members, policy makers, and other members of the public to strengthen awareness of sustainability issues and increase engagement in programs. Meet our customer-members interest in renewable options, providing useful information for our customers to make informed decisions. Advocate for regulatory renewable policies that ensure safe, reliable, and cost-effective electricity for our customers. Continue to test, evaluate, and implement smart meters and technologies that will help SMECO improve the sustainability of its operations. Accomplishments SMECO demonstrates its commitment to sustainability by developing innovative customer, employee, and corporate programs, by employing emerging technologies, complying with environmental regulations, diversifying our power portfolio, and by creating a reliable and resilient electric grid. Some of SMECO s accomplishments include the following: 1

3 Reduced SMECO carbon footprint by employing technologies to automate service response, optimize fleet use, and increase resource efficiency. Saved energy at SMECO facilities by using energy efficient lighting, occupancy sensors, natural light, and task lighting. Received the 2015 Alliance for Workplace Excellence award for EcoLeadership through energy and water conservation, recycling, providing an on-site fitness center and physical fitness programs, and promoting teleworking, flex time, and compressed work schedules. Added solar and wind facilities to our power portfolio: 2010, Stony Creek wind farm; 2012, Mehoopany wind farm; 2012, SMECO Solar; 2015, Rockfish solar; 2015, Lookout wind farm; and 2017, Hog Creek wind farm. Honored by the Solar Electric Power Association as the Electric Cooperative Utility of the Year, November Streamlined our services and increased visibility of solar and net metering services to meet customer interest. Added WattPlan to SMECO s online tools to help customers determine if solar panels are right for their home or business. Added PowerClerk, Customers with Interconnected an online application Renewable (Solar) Systems processing system that 6000 allows customers to 5000 track progress of their 4000 net meter application Awarded ENERGY 1000 STAR Partner of the 0 Year 2012, 2013, , 2015, 2016, 2017, and Received ENERGY STAR Partner of the Year Sustained Excellence award, 2014 through 2018, for Energy Efficiency Program Delivery. Winner of an ENERGY STAR Certified Homes Market Leader Award, 2011, 2012, 2013, 2014, and 2015; received award in 2016 for sponsoring more than 3,200 homes to date. Began a smart homes pilot to help customers save energy. advocacy SMECO works with state legislators and other utilities to craft policies that provide a framework for sound environmental practices, progressive benchmarks, and costeffective goals for renewable energy procurement. We meet with Public Service Commission working groups to develop programs that make sense for our customer-members. engagement SMECO attends group events and presents information to educate customers about energy efficiency and renewable energy. We work with customermembers individually to help them save energy and save money. We make it easy for customers to learn about solar power and to have solar net meters installed. 2

4 Tracking progress renewable energy 30% 25% Solar as a Percent of Renewable Energy Requirements 25% MD electric utility goals: Meet 2.5% of retail requirements with solar energy by In 2017, SMECO met 0.8 percent of its total retail energy requirements with solar power. Meet 25% of retail requirements with sustainable resources by 2020 through renewable energy and renewable energy credits (RECs). About 8.5 percent of SMECO s MWh power purchases in 2017 came directly from renewable resources. cost for renewables 20% 15% 10% 5% 0% $20,000,000 $15,000, % 2017 RPS Requirements by 2020 Tier 1 & 2 RECs Solar RECs SMECO power purchases 2017 Renewable Energy Nonrenewables Total Costs for Renewable Energy (Portfolio plus RECs) SMECO supplements its renewable power portfolio with renewable energy credits (RECs) to meet state requirements. $10,000,000 $5,000,000 $ RECs Solar Wind 3

5 4.2% 3.0% 6.9% SMECO Renewable Energy Portfolio (2017 MWh) SMECO Solar Capacity of facilities: Stony Creek (wind): 20 MW 20.1% 38.1% Rockfish (Solar) Stony Creek (Wind) Mehoopany (wind): 31 MW 27.7% Mehoopany (Wind) Lookout (Wind) Lookout (wind): 37.8 MW Hog Creek (Wind) Hog Creek (wind) 66.7 MW EmPOWER Maryland Energy Savings (MWh) SMECO Solar: 5.5 MW Rockfish (solar): 10 MW energy conservation CoolSentry Units in Place Since 2009, SMECO has paid more than $50 million in energy efficiency incentives to customermembers, resulting in more than 321,364 megawatt-hours (MWh) saved. Customer-members help to reduce the cooperative s energy footprint by participating in SMECO s CoolSentry program to curtail peak demand Information as of

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