NorthWestern Energys E+ Green Program Background for the - - PowerPoint PPT Presentation

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?

• What’s a REC?
• Renewable Energy Certificate or

“REC” A tradable, legal mechanism

• Represents the environmental

benefits of one Megawatt-hour (MWH) of electricity generated from a renewable energy resource

REC background

• What’s a REC?
• May be sold with the electricity

generated (bundled)

• 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?
• Tracked, Retired, Meets

age/certification standards if for green power program

• REC for RPS may meet different

standards in different states or markets

REC background

• MT Legislature mandates Green Product offering
• Buy RECs from Bonneville Environmental

Foundation (BEF) to cover “blocks” of E+ Green

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

• 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
• 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
• Limited Advertising – no paid advertising in

2018 or 2019

• Web Banner, social media, bill insert, public

radio, spot media placement

E+ Green

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

• Website landing

page:

• Quick URL
• Text about Portfolio

and E+ Green

• Calculator for customer

to determine quantity and see cost

• Auto calculate

customer charge on sign-up form

NorthWestern Promotion

www.NorthWesternEnergy.com/GreenPower

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