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GreenChoiceAustin Energy’s Renewable

Energy Program

Mark KapnerLocal Renewables 2007

TM

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Austin Energy

Municipally-owned electric utility

Serves more than 700,000 population

Area > 1000 sq km

Austin

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Customers

26% of energy sold to residential

70% to commercial

4% to municipal

R Generating Sources

3 gas and oil-fired plants 1670 MW1 coal-fired plant 570 MW1 nuclear plant 400 MWPurchase 212 MW of windPurchase 11 MW landfill methane

powerPurchase 1 MW of Hydro

R Conventional Generation Mix

by MWH

Coal 34%Nuclear 30%Gas 30 %

Renewables 6%

R GreenChoiceBackground

Austin’s Strategic Goal: 20% of energy from renewables by 2020

By enrolling, customer causes change in AE’s generation mix

Customer benefits from the price stability inherent in renewable energy

GreenChoice price linked to actual cost of renewable energy

TM

R GreenChoice Renewable

Sources Wind 79% Landfill methane

(17 % of MWH) Photovoltaics and Hydro

(4% 0f MWH)

TM

R WindPros and Cons

Least expensive (per kWh) Little firm capacity Transmission

adequacy risk Public acceptance-

fairly high

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70

597

964

320

245

484

40

Wind Capacity in MW, end of 2006

R Landfill MethanePros and Cons

40% more expensive than wind energy

Very high firm capacity

Public acceptance- moderate

R Tessman Road Landfill Methane

Power Plant

R Solar Photovoltaics

Most expensive (about 7 times cost of wind)

Fairly high firm capacity

Public acceptance -extremely high

R How GreenChoice Works

All customers eligible Commercial customers contract for min 5

years Subscribers pay a fixed GreenChoice

charge in place of a fuel charge that fluctuates depending on market prices of coal and gas; price lock for as long as 10 years

Green Choice charge = 3.50 cents per kWh

Fuel Charge is currently 3.35 cents per kWh

Commercial customers receive recognition proportional to level of participation

TM

R Austin Energy Electric Bill

Base Rate 6.44 cents x kWh plus

Fuel charge = $0.033 x kWh or GreenChoice charge = $0.035 x

kWh

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Jan 2000 - Jan 2016

Fuel ChargeGC Batch 1 ChargeGC Batch 2 ChargeGC Batch 3 ChargeGC Batch 4 Charge

Comparison to Fuel Charge

Premium or Discount?

1

23

4

Batch #

R Promotion and Marketing

Stories in utility bill inserts Ads in local newspapers Billboards Customized presentations to

businesses Speaking engagements Letter from environmental groups

to their mailing list TV commercials

R Corporate Champions (use > 700,000 kWh

per year) 3M Corporation

823 CongressAdvanced Micro Devices (AMD)Ambion, Inc.Apple ComputerBAE SystemsBLOCKBUSTERFisher-Rosemount SystemsFour Seasons Hotel AustinG S D & MGinny's + MeritGraeber, Simmons & CowanGreenwood TowersHabitat Suites HotelHeart Hospital of AustinHyatt Regency AustinIBM

Iron CactusKinko's La Quinta Inn & SuitesLBJS Broadcasting CompanyLive Oak DevelopmentMaudie's CafePier 1 ImportsSamsung Austin SemiconductorSolectron TexasState Farm InsuranceTexas Commission on Environmental QualityTexas Governor's MansionThe Rebekah Baines Johnson CenterTokyo Electron America

R Corporate Champion Ad Package

TV ad – features company logo Billboards List names twice per year in three

newspapers Company logo in EnergyPlus

customer newsletter GreenChoice logo available for

company’s use in its advertising

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Status (end of Nov, 2006)

GreenChoice launched mid-Jan 2000 Began billing April 2001 Over 10,000 residential customers

enrolled 44 large commercial subscribers 348 small businesses Green Energy = 650 million kWh/yr.

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