Green Tariffs Green Power Stakeholder Advisory Committee February - - PowerPoint PPT Presentation

Green Tariffs

Green Power Stakeholder Advisory Committee February 20, 2020

NorthWestern Energy’s Current Portfolio

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• NorthWestern’s current energy mix

provides a significant first step for customers needing to meet sustainability targets.

• 115 MW of renewables (nameplate) were

added in 2018 (80 MW in December).

• Nearly 700 MW of Qualifying Facility (QF)

renewables (mostly wind) have, or will soon have PSC Orders setting terms and conditions (not all will be developed).

Green Tariffs

Green Tariffs

• A green tariff is a pricing structure offered by an electric utility (and

approved by the regulatory commission), which allows eligible customers to source their electricity from renewable resources.

• Through a green tariff, customers are able to purchase both the

energy from a renewable energy project, typically at a large-scale, and the associated RECs.

• Typically offered to provide larger commercial and industrial

customers an option to meet their sustainability goals.

Green Tariffs

Green Tariffs

• Green tariffs can be used by customers to obtain up to 100%

renewable power.

• As measured on a kWh/MWh basis.
• Also referred to as a “net” basis.
• Program offerings vary by utility and customers’ needs.
• The cost of a green tariff program is covered by program

participants.

• No cost shifting to non-participants.

Green Tariffs

Green Tariffs - Considerations

• Would be a new tariff offering for NorthWestern Energy.
• Potential Considerations:
• Various Terms (5-20 years).
• Typically includes a bill credit.
• Fixed or adjusted (annually).
• Additionality, or not (or both).
• Additionality is a term to mean that the tariff would

result in the construction of “additional” renewable resources.

Green Tariffs

Green Tariffs – Considerations (cont.)

• Potential Considerations:
• Utility scale, or not (or both).
• Aggregation.
• Customers at the project level, and
• Metered loads at the Customer level.
• Size limitation.
• Low income participation.
• Other considerations?

Green Tariffs

Green Tariffs - Sleeved PPA

• One particular form of green tariff.
• Utility, or customer, arranges a Purchased Power Agreement

(PPA) with an eligible renewable resource.

• Energy and RECs, or possibly RECs only
• Utility acts as a conduit, and passes through the cost of the

PPA through to the customer(s).

Additional Resources

Resources:

• NorthWestern Backgrounder (provided with Agenda).
• Dan Lloyd testimony and responses to data

requests (provided by DEQ).

• U.S. Electricity Markets: Utility Green Tariff Update.

https://rebuyers.org/us-electricity-markets-utility-green-tariff-update/

• EPA – Green Power Partnerships.

https://www.epa.gov/greenpower/utility-green-tariffs/

• Center for Climate and Energy Solutions.

https://www.c2es.org/document/green-pricing-programs/

• NREL – Voluntary Green Power Programs.

https://www.c2es.org/document/green-pricing-programs/

Corporate Renewable Energy Buyers’ Principles

1. Choice – Greater choice in renewable options 2. Cost competitiveness – More access to cost competitive options 3. Long-term pricing – Access to long-term, fixed-price contracts 4. New products – Reductions in emissions beyond business as usual 5. Financing tools – Increased access to third-party financing, standardized contracts, simplified processes 6. Cooperation – between utility, businesses, and regulators

For Further Thought

Thank You