NorthWestern Energy’s E+ Green Program Background for the NorthWestern Energy Green Power Stakeholder Advisory Group
Background on E+ Green
• What is a REC? • Why is E+ Green offered? • Where do the RECs for E+ Green come from? • About E+ Green • Current Alternatives to E+ Green • What are other utilities offering for green product programs?
REC background • What’s a REC? o Renewable Energy Certificate or “REC” A tradable, legal mechanism o Represents the environmental benefits of one Megawatt-hour (MWH) of electricity generated from a renewable energy resource
REC background • What’s a REC? o May be sold with the electricity generated (bundled) o When sold separate the electricity (unbundled) the buyer of the REC can claim renewable energy benefits and the electricity is sold as “null” power—can’t be claimed as renewable
REC background • What’s a REC? o Tracked, Retired, Meets age/certification standards if for green power program o REC for RPS may meet different standards in different states or markets
E+ Green • MT Legislature mandates Green Product offering • Buy RECs from Bonneville Environmental Foundation (BEF) to cover “blocks” of E+ Green
BEF • RECs from BEF are Green-e Certified • NorthWestern’s E+ Green is not currently Green-e certified • Green-e is an independent program providing certification and verification for renewable electricity and renewable energy certificates (RECs) • Green-e recognized for LEED and other sustainability organizations
• BEF is a non-profit organization based in Portland that buys and sells RECs • Wind, Solar, Biogas, Landfill Gas, Geothermal • NorthWestern specifies from the Northwest, MT or WY • MT RECs very limited and expensive • RECs supporting E+ Green • 2018 Biogas from a Dairy Farm in ID • 2019 Wind from WY
E+ Green • Available to all retail electric customers • Mostly residential customers • Option for customer without installing system at their home or business • No contract—Customer participates as they choose • Rate set by EGPS-1 Tariff $2 per 100kWh Block • Most residential customers buy 1 block • Largest customer over the years purchased 1,000 blocks/Mo (No longer enrolled) • December 2019, 295 residential and 17 commercial • 2019 Average of 1499 blocks/month
E+ Green • Neutral to utility rate base/shareholder o Net revenue/deficit assigned to Electric Renewable Universal System Benefits— (2018): • Gross Revenue = $33,312 • BEF Expense/1668 RECs = -$11,676 • NET REVENUE = $20,826 (credit to USB)
E+ Green • Operates as Optional Program o Limited Advertising – no paid advertising in 2018 or 2019 o Web Banner, social media, bill insert, public radio, spot media placement
NorthWestern Promotion • Customers sign up online • Can also sign up through mail or by phone • Shows how much electricity is already clean • Information to help customers decide how many blocks to buy
NorthWestern Promotion www.NorthWesternEnergy.com/GreenPower • Website landing page: o Quick URL o Text about Portfolio and E+ Green o Calculator for customer to determine quantity and see cost o Auto calculate customer charge on sign-up form
Current Alternatives to E+ Green
Current Alternatives to E+ Green • Buy RECs directly from REC retailers such as BEF – many Green-e certified options https://www.green-e.org/certified-resources • RECs and utility bill repackaging option with freebies
What are other utilities offering for green product programs?
Other Utility Green Product Program Attributes • Lower price for REC • Green-e Certification of program in support of customer sustainability initiatives • Local resources—in state • Marketing partnerships with commercial customers • Rate to match usage on a monthly basis rather than fixed block rate
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