innovations in green tariffs: spring 2017
TRANSCRIPT
INTRODUCTION
Letha Tawney - Director Of Utility Innovation And
Polsky Chair For Renewable Energy, World
Resources Institute
Tom MacLean - Manager, Customer Renewable
Energy, Puget Sound Energy
Tim O'Brien - Economic Development Manager,
Omaha Public Power District
INTRODUCTION
Kirk Myers - Senior Manager, Sustainability,
Recreational Equipment, Inc.
Rachel Brombaugh - Energy Policy and
Partnerships Specialist, King County, WA
Megan Smith - Director of Climate and Energy
Initiatives, King County, WA
Energy BuyersUtilities
A utility energy product that replaces a customer’s standard resource mix
and monthly bill with locally-delivered renewable energy, typically at a
fixed price.
WHAT IS A GREEN TARIFF?
http://www.wri.org/us-green-tariff-deals-chart
GREEN TARIFFS ARE DELIVERING RE
Nearly 435,000 tons of CO2 avoided annually
U.S. RENEWABLE ENERGY MAPWhere companies can buy renewable energy through the grid.
http://www.wri.org/us-re-corporate-buyers-map
LEADING THE WAY WE POWER THE
FUTUREFOR WRI – INNOVATIONS IN GREEN TARIFFS:SPRING 2017
Tami Monroe, Division Manager – Business Analysis and Pricing
Jamie Freeman, Manager - Pricing
Tim O’Brien, Manager – Economic Development
AGENDA
• OPPD Overview
• Journey to Rate 261 M
• 261 M – Large Power – High Voltage
Transmission Level – Market Energy
• Q&A
CORPORATE OVERVIEW
• Publicly owned, business-managed electric
utility governed by an elected board of eight
directors
• Low rates and nationally recognized customer
service - No general rate increase planned
through 2021
• Serves a population of approximately 820,000
people (369,500 customers
• Ranks as the 12th-largest public power utility in
the U.S. in number of customers served
• Moving towards 50% renewables based on
2016 IRP
• Vision – Leading the way we power the future
JOURNEY TO RATE 261M
• Economic development partnerships – Targeting of data centers, bio solutions, and
advanced manufacturing
• 2015 Corporate Feedback– Schedule 261 - Large Power – High Voltage
Transmission Level
– Rider 499 – Green Sponsorship Program
• Feedback from the industry and cooperate buyers including Facebook & Yahoo
261M OVERVIEW
• Approved by OPPD’s board in
January 2017
• Modification of schedule 261
• Based on OPPD’s cost of service
model – recovering fixed costs
• Flexibility in how customers meet
their renewable energy goals
• Led to the attraction of
Facebook’s newest data center
location
261M OVERVIEW
• 20MW demand minimum at 161kV
• Customer owned substation
• OPPD provides retail service to the customer, including generation and system capacity, transmission and administration
• Components– Demand Charge + Customer Charge + (Energy = Hourly
Southwest Power Pool market Price)
• Renewable project is not required, a customer could use only market pricing
CUSTOMER RENEWABLE PERSPECTIVE
• Cost: energy component of their utility bill is based on hourly market price.
• Revenue: customers renewable asset produces revenue based on hourly market price.
• This revenue and cost offset, leaving the cost of the customers renewable asset. This, in concept, becomes the energy cost for their facility.
EXAMPLE
• Southwest Power Pool market price on May 12 at 11:00AM is $28/MWh.
• Customer is charged $28/MWh on their utility bill.
• Customer receives $28/MWh for the output from their renewable asset.
• “Net” energy cost is equal to the cost of the renewable asset.
• Customer has – Additionally with their renewable asset
– “Net” cost of their facility is aligned with the renewable asset
THANKS!
• Tami Monroe– Division Manager – Business Analysis and Pricing
– 402-636-3067
• Jamie Freeman– Pricing Manager
• Tim O’Brien– Manager – Economic Development
– 402-636-3731
Leading the way we power the future
GREEN DIRECTVOLUNTARY RENEWABLE ENERGY
TARIFF
Thomas MacLean, PhDCustomer Renewable Energy Development
Renewable Energy Buyers’ Alliance WebinarMay, 2017
22
PUGET SOUND ENERGY
• 6,000-square mile service territory
• 10 Washington state counties
• 1.1 million electric customers
• 800,000 natural gas customers
23
OUR BUSINESS ENVIRONMENT
• Meager load growth• Increasing customer expectations
• Strong environmental/sustainability ethic• Tech savvy & online-oriented customers
• Mayors’ Climate Initiative
• Traditional vertically integrated utility• Carbon footprint larger than neighbors• “Strict Constructionist” regulators
(Washington Utility and Transportation Commission)
24
CUSTOMER CHOICES FOR RENEWABLE ENERGY
UNDER RCW 19.29A.090
EXISTING GREEN POWER PROGRAM
(SCH 135, 136)
• REC purchases
• 40,000 customers
• residential, commercial, municipal
BULK REC PURCHASES
• Excess PSE RECs
• 10,000,000 kWh
• large business
GREEN
DIRECT
(SCH 139)
• Long-term partnership with PSE for dedicated energy resources
• large commercial, municipal
SOLAR CHOICE(SCH 135)
• Solar RECs from central plant with high productivity
• residential and small commercial
Green Power Program – Retail RE
25
TALKING TO CUSTOMERS
Reduced carbon
footprint
Increased renewable
energy development
Connection to a specific resource
A hedge value with known
future energy costs to manage
budgets
Customer can promote increased
sustainability
29
GREEN DIRECT CHARGE
Cost of Energy and RECs
Annual reporting of Renewable Energy
Certificates for customers, WREGIS, Green-e
Billing system updates
LossesTaxes
30
GREEN DIRECT ENERGY CREDIT
INCLUDED
Energy-Related Power Costs
NOT INCLUDED
Demand-Related Power Costs
Transmission and Distribution
Billing, Meters, Meter Reading, Customer
Accounting and Services
31
GREEN DIRECT SUMMARY
Green Direct creates a new partnership between PSE and Customers
Contract commitment for 10, 15 or 20 years
Contract by location – but all locations not required
Energy will be delivered to PSE balancing authority area
Utility-Based: on-bill, reliable, safe and EES eligible
King CountyBellevueRedmondKirkland
SammamishMercer IslandPort of SeattleBainbridge Island
AnacortesBellinghamWWUSound Transit
TukwilaIssaquahSnoqualmieOlympia
Available to customers with 10 million kWh per year & Governments
Please contact: Letha Tawney or WRI’s Global Energy Program
THANK YOU!