Green Pricing Program

Transcription

1 Green Pricing Program Introduction and Overview January 2017

2 Agenda Green Pricing Program (GPP) Renewable Energy Certificates (RECs) Chugach GPP Concept Next Steps 2

3 What is a Green Pricing Program? A utility sponsored program allowing customers/members an opportunity to support renewable energy initiatives, on a voluntary basis, through a premium paid on their monthly bill. 3

4 GPP Background 1993 First GPP 850 utility programs nation wide as of states require utilities to offer a Green Pricing Program 2.1% average level of participation for opt in programs Ranging from 0.03% 21% $ $0.05/kWh green pricing rate 4

5 Why do people participate in GPPs? Renewables Community Recognition 5

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7 Third Party Marketers in Alaska Renewable Energy Certificates (RECs) = Currency for Green Pricing Programs 7

8 What is a REC? Represents the environmental attributes from one megawatt hour (MWh) of electricity produced from a renewable energy source. R E C Claims of: Green, Clean and Renewable CO 2 offsets Fossil Fuel offsets RECs are also known as. Green Tags Renewable Energy Credits Renewable Electricity Certificates Tradable Renewable Certificates 8

9 What can you do with RECs? R E C Sell Buy Retain Transfer Retire Applications: Compliance Markets: ($2 $320/REC) State Renewable Portfolio Standards Voluntary Markets: ($0.27 $0.38/REC) Corporate / Individual Stewardship Currency for Green Programs ($3 $50/REC) 9

10 Fire Island Wind RECs September 2012 December 2015 FIW Production: 150,011 MWh Electric Energy & RECs $91,207 (net) 150,011 MWh of electric energy to Grid $16,024,506 Paid by Chugach Retail 150,011 RECs Representing claims to: CO 2 Reduction Green, Clean and Renewable Energy Fossil fuel offsets Fortune 500 Universities Utilities Other organizations Eligible 10

11 Chugach GPP Concept GREEN UP YOUR BILL! R E C 11

12 Preliminary Annual Net Revenue Participation Rates Average Number of Residential GPP Participants Preliminary Annual Net Revenue 1% 650 $70,000 2% 1,200 $135,000 3% 2,500 $300,000 12

13 Example Community Project: Solar for Schools (Concept) Projected Project Size Total Projected Project Cost 100 KW $300,000 Chugach Green Pricing Program Projected annual project and program costs $60,000 Average residential usage per month 600 kwh GPP premium/kwh $0.015/kWh Monthly contribution at 100% $9.00 Percent increase to total bill 8% Needed # of members 556 Needed participation rate 0.78% 13

14 Example Community Projects: Solar/Wind/Education Average Number of GPP Participants Preliminary Annual Net Revenue 650 2,500 $70,000 $300,000 Utility Example Community Project Overview Size Project Costs Seattle City Light Rocky Mountain Power Puget Sound Energy Rocky Mountain Power A 1.2kW solar system at Woodland Park Zoo helps to power the Family Farm s Discovery Barn. Girl Scout Council of Wyoming wind turbine at Camp Sacagawea with on site education exhibit for campers. Solar array, monitoring software and classroom curriculum at Liberty High School. Casper College wind turbine at Rocky Mountain Oilfield Testing Center to provide a live lab for students and provide education. 1.2 kw $6, kw $12, kw $26,700 6 kw $50,000 Chugach Electric Solar for Schools project in Anchorage (concept) 100 kw $300,000 14

15 Strategic Initiatives Process Check List Values Safety Ethics Reliability Rates and Efficiency Environmental Stewardship Community Resources and Risk Analysis Corporate Resources Success Profile Exit/Alternative Strategies Evaluation and Viability Political Regulatory Governance Technical Financial Capacity Risk Profile Indicator Comments Program can be implemented safely Program is ethical Program does not affect reliability Program does not affect rates Renewable project, reduces carbon Engages community and local projects Heavy staff time initially, then tapers High probability of success Chugach discontinues program Neutral Small regulatory component Internal program only CIS and billing changes needed Revenue neutral Low cost, increases competitiveness Indicator Total

16 Next Steps Collect market data Consult with 3 Degrees Identify community partners Select GPP model Filing submitted to RCA GPP Launch Q1 Q2 Q3 Q4 Q Q2 Develop accounting procedures CIS System testing Draft marketing materials and identify potential beneficiary projects 16

17 Questions? 17