Arizona
ACC Affirms Restructuring Plan
The ACC adopted new rules that open the state's electric utility industry
to competition over four years. The rules essentially adopt the elements
of a restructuring proposal released by the commission last fall
(SREN, Fall 1996).
According to the rules, utilities are required to open 20% of their load to competition beginning in 1999, including small businesses and residential customers. Competition would increase to 50% of load in 2001 and to the entire load in 2003. Utilities are also required to file proposals for "unbundled" services by the end of 1997. They will have to price separately such services as generation, transmission, and distribution of electricity; meter reading; billing and collection; and consumer information services. The rates are to be approved by the commission.
The final rules also adopt a solar portfolio requirement, which stipulates
that, beginning in 1999, all participating electricity suppliers must obtain
at least ½ of 1% of power sold competitively from a photovoltaic or
solar thermal source. The solar requirement increases to 1% in 2002.
ACC Contact:
Ray Williamson, (602) 542-0828
Green Pricing Tariff Approved
The ACC approved a green pricing tariff filed by Arizona Public Service (APS).
APS will develop up to 400 kW of "centralized" photovoltaic systems to supply
solar electricity to customers who choose to participate in the pilot program.
The power will be sold in 100-watt "solar increments," with the effective
solar electric rate ranging from 18-24¢/kWh, depending on customer class
and season of the year. A portion of the program cost will be shared with
the Utility PhotoVoltaic Group (UPVG).
APS Contact:
Herb Hayden, (602)250-3012
California
CEC Staff Proposes RE Allocations
The California Energy Commission's (CEC) Renewables Program Committee released
its proposal for allocation of a four-year nonbypassable distribution charge
to support existing, new, and emerging renewable electricity generation
technologies under the state's utility restructuring law
(SREN, Fall 1996). In its draft Policy Report on AB1090
Renewables Funding, the committee pro-poses a mix of production incentives,
project financing support, and customer rebates to meet the legislative
requirement to develop "market-based mechanisms" for distributing the
funds.
Stating that "the development of a customer-driven market is key to the creation
of a self-sustaining renewables industry," the committee proposes to allocate
15% of the $540 million fund into a consumer account. This account "is designed
to reduce the cost premium that customers pay for renewable energy and thus
encourage customers to buy renewable power." The allocation targets a provision
in the law that gives immediate direct access to any customer willing to
contract for 50% or more of its load from renewable resources. The committee
recommends allocating a small amount of this account to the development and
operation of a Renewable Energy Information Clearing-house to provide "reliable
product information so that consumers can make informed choices."
The committee proposes to seek legislative guidance on energy content labeling
to provide adequate information for consumers to make informed choices about
electricity purchases. A content label would be used "to provide simple and
easy-to-understand information to consumers about the power content of all
providers, focusing on the percentage of renewable power, and possibly on
information about emissions or other environmental factors." The CEC must
provide its recommendations to the legislature by March 31, 1997.
CEC Contact:
Marwan Masri, (916)
654-4531
Colorado
Settlement Reached on Wind Tariff
Parties to the wind energy tariff filing of Public Service Company of Colorado
(PSCo) reached a settlement under which the utility will move ahead with
its plan to pursue in-state development of at least 10 MW of wind energy
resources for voluntary customer subscribers. Opposition to the tariff filing
centered around the utility's plan to charge a "market-based" premium of
up to 4.0¢/kWh for the wind energy
(SREN, Fall 1996). Intervenors argued that a premium of
less than 2.0¢/kWh would be more appropriate. The settlement calls for
a premium of 2.5¢/kWh.
In addition to resolving the rate issue, PSCo commits to involve environmental
and community-based organizations and local governments in marketing and
sales promotion activities. It also agrees to use a possible federal grant
to buy down the cost of the wind energy and the green rate. The PUC approved
the settlement on February 7.
PUC Contact:
Morey Wolfson, (303) 894-2000 x306
Renewables Bills Defeated in
Legislature
A bill to establish a retail access pilot program for "clean energy" was
defeated in legislative committee. The bill, sponsored by Rep. Mark Udall,
called for the PUC to develop a pilot program limited to one-year's utility
load growth and supplied by an appropriate mix of renewable sources supplemented
by efficient natural gas generation. Also defeated was a bill that called
for all power suppliers operating in the state to disclose to customers the
resource mix, price, and environmental characteristics of their electric
power supply. A net metering bill was unsuccessful as well.
A comprehensive retail wheeling bill was also defeated. Instead, a multi-year
study of electric utility restructuring is expected to pass.
Legislative Contact:
Rep. Mark Udall's Office, (303) 866-2938
Iowa
FERC Ruling on Alternate Energy Law
The Federal Energy Regulatory Commission (FERC) ruled that portions of a
state law requiring utilities to purchase power from alternative energy
production facilities (AEPs) are preempted by PURPA. The ruling adds a new
twist to years of legal and political wrangling between AEP developers, the
state's utilities, and the IUB. The utilities have long contested the law,
claiming that the mandated power purchase rate of 6.01¢/kWh is higher
than their avoided cost
(SREN, Summer 1995).
FERC ruled that the Iowa law is preempted to the extent that utilities are
obligated to purchase power from qualifying facilities (QFs) at rates in
excess of the utilities' avoided cost, or to the extent that these rates
are set as wholesale rates, which is exclusively in FERC's jurisdiction.
However, FERC ruled that Iowa and other states have the authority to direct
utilities to purchase power from renewables or other sources, given the pricing
limitations, "to the extent that the state is directing the planning and
resource decisions of electric utilities under its jurisdiction."
IUB Contact:
Curt Stamp, (515)281-5979
Maine
PUC Delivers Restructuring Report
"Seeking better electricity prices and services for Maine consumers," the
PUC delivered to the legislature its plan for achieving a statewide competitive
retail electricity market by January 1, 2000. The plan calls for implementing
a renewable portfolio standard under which all retail providers would be
required to provide a minimum level of supply from renewable energy sources.
Power suppliers could meet the minimum renew-ables requirements with tradeable
credits. The commission would consider the market's ability to develop and
sell power from renewable resources in establishing the renewable portfolio
standard.
The PUC plan is currently being considered in the legislature, along with
other restructuring proposals.
PUC Contact:
Faith Huntington, (207)
287-1373
Massachusetts
DPU Releases Restructuring Proposal
In December 1996, the DPU established model rules and a legislative proposal
"to guide the development of, and transition to, a new industry structure."
The DPU views customer choice as the vehicle to reduce costs because "as
suppliers compete to serve customers, they will become more efficient and
more focused on providing the products and services consumers want, at a
price they are willing to pay." The DPU hopes to begin retail access on January
1, 1998.
Noting that "the restructured electric industry must continue to deliver certain public policy benefits provided by electric companies today," the DPU proposes to establish a nonbypassable access charge of 1 mill/kWh. The funds would be distributed to eligible renewable energy producers "so that they can reduce the price they charge consumers while remaining commercially viable."
The DPU also believes that customer choice will help drive renewable energy
development in the state. To that end, the DPU proposes mandatory labeling
on customer bills and marketing materials to provide consumer information
on supplier fuel mix and environmental impacts.
DPU Contact:
Theo MacGregor, (617) 305-3658
Minnesota
PUC Adopts Externalities Values
The PUC issued a final order establishing a range of environmental costs
to be used by utilities when evaluating and selecting resource options in
all proceedings before the commission, including resource plan and certificate
of need proceedings. A 1993 Minnesota law requires that the commission "to
the extent practicable, quantify and establish a range of environmental costs
associated with each method of electricity generation."
PUC Contact:
Betsy Engelking, (612) 296-1337
Dakota Electric Files for Wind Tariff
Noting that "an important market segment wants to receive electricity generated
from renewable resources . . . (and) are also willing to pay for this new
service," Dakota Electric Association (DEA), a rate-regulated cooperative
utility, filed a petition with the PUC to offer a renewable energy service
to all customers as an option to their present electric service. The filing
responds to market research indicating that about 65% of DEA residential
customers have some desire to purchase wind energy, and nearly 40% are willing
to pay more if renewable energy costs more to produce.
Although the proposed rider will initially offer wind energy, it is designed to accommodate any available renewable resource. Renewables will be offered in 100-kWh blocks and customers may purchase as many blocks as desired, up to their normal monthly energy consumption. Customers will be asked to stay on the renewables rate for a minimum of 12 months.
The renewables power will be contracted by Cooperative Power (CP), which
supplies DEA and 16 other electric distribution cooperatives, with the supply
limited to each utility's forecasted demand and sales growth. A renewables
rate was not specified in the filing but will be based on the weighted average
cost of the contracts entered into by CP.
DEA Contact:
Charlene Klein, (612) 463-6178
New Hampshire
Pilot Survey Reveals Green Preferences
A survey of customer participants in the state's Retail Competition Pilot
Program found that 20% of those customers were strongly influenced by the
environmental message or image of their power supplier. The legislature mandated
the pilot in 1995 to examine the effects of consumers choosing their electric
supplier. According to PUC Executive Director Thomas Getz, "the survey verifies
the legislature's and the commission's faith that the pilot program would
be a valuable tool and the results confirm the belief that retail competition
is technically feasible."
PUC Contact:
Thomas Getz, (603) 271-2431
Oregon
Renewables Advocates Support Merger
A coalition of 13 environmental, natural resource, and public interest groups
signed a memorandum of understanding (MOU) relating to the pending merger
between Portland General Electric (PGE) and Enron. The MOU calls for the
merged company to continue its commitments to public benefits programs, such
as energy efficiency, renewables, environmental restoration, and low-income
protection, in exchange for the groups' support for the merger.
Among the elements of the MOU are that the merged company retain its commitment
to develop wind and geothermal resources in the Northwest. The parties agree
that PGE may utilize this power for its green marketing efforts and will
have the opportunity to recover any above-market costs attributable to the
projects. The parties also support the implementation of a system benefit
charge to recover any above-market costs not else-where recovered in rates.
Coalition Contact:
Rachel Shimshak, (503) 223-4544
Texas
CSW IRPs Include RE Commitments
The Central and South West (CSW) Corporation, saying that it "has listened
to its customers," established a renewables target program that will deploy
4050 MW of renewable energy resources, in addition to 6.5 MW of wind
resources already on the CSW system. The utility commitment is a result of
a Deliberative PollingTM process by which a representative sample of customers
overwhelmingly supported further development of renewable resources
(SREN, Fall 1996).
Because of this strong customer interest, the CSW companies each instituted targeted pur-chase goals for renewable energy resources, as well as goals for energy efficiency programs. The targets are based on acquiring resources with a net rate impact of an additional 25 cents per month for an average residential customer. More than 80% of customers indicated a willingness to pay at least $1.00 more per month for the companies to acquire more renewable resources. Some customers indicated a willingness to pay up to $10.00 more per month.
The CSW companies are also proposing a pilot program to install 50 rooftop
solar photovoltaic (PV) systems at schools and a program of "green power"
choices. The latter program will allow customers interested in acquiring
a greater portion of their personal consumption from environmentally beneficial
generation to exercise that choice. The renewables commitments are contained
in a joint integrated resource plan outlining the companies' future electric
needs over the next 10 years. The plan is subject to approval by the PUC.
CSW Contact:
Ron Ford, (214) 777-1148
Vermont
PSB Submits Restructuring Plan
On December 30, the PSB released a final report and order on its investigation
into electric utility restructuring. The report focuses on providing customer
choice of electricity suppliers beginning in January 1998, the functional
separation of utility generation and distribution operations, and the protection
of public benefits
(SREN, Fall 1996).
The report adopts a renewables portfolio standard that will require all retail companies selling electricity in Vermont to secure a minimum percentage of their sales from renewable resources. The portfolio requirement will be facilitated by the sale of tradeable credits associated with the sale of renewable energy to Vermont end-users. The PSB also calls for the creation of a small, nonbypassable charge on all electricity consumption to promote research, development, and commercialization of promising new technologies.
The state legislature is considering a bill incorporating many of the proposals
contained in the PSB report.
PSB Contact:
Rick Weston, (802)828-2358
Retail Pilot Customers Choose "Green"
The Massachusetts Electric Company reports that nearly one-third of residential
customers participating in its retail access pilot program chose a "green"
supplier offering a more "environmentally sensitive" service option. In total,
4458 residential and 269 small business customers signed up for the pilot.
Although 31% of the residential customers selected a green service, 96% of
the small business customers selected a supplier based on price.
All participating customers save money by participating in the pilot, some up to 18% based on the supplier.
Steven Rothstein, president of Environmental Futures, which is administering
the pilot program, said that "small businesses and residential consumers
have shown interest in electricity competition. They like the choices which
allowed them to save money, help the environment, and provide other services."
Environmental Futures Contact:
Steven Rothstein, (617) 443-1300
Ft. Collins Pursues Wind Energy
The City of Fort Collins (Colorado) Light and Power, a municipally owned
utility, initiated a wind power pilot program in which residential customers
can subscribe to receive their entire power needs from wind energy. Commercial
customers are given an option to purchase wind power in 1000-kWh blocks.
The wind energy will be priced at "no more than 2.0¢/kWh" above the
normal rate - the average residential rate is approximately 6.0¢/kWh.
The utility committed to the development of up to three large wind turbines
if supported by customer subscriptions. Each turbine re-quires three-year
subscription commitments from 350 customers. Nearly 700 customers have signed
up for the program, enough to support a two-turbine commitment. The estimated
start date for the wind power is June 1998.
City of Fort Collins Contact:
Steve VanderMeer, (970) 221-6884
Wisconsin Electric Seeks RE Resources
Wisconsin Electric Power Company (WE) solicited bids for potential sources
of renewable-energy-generated power to supply the second year of its green
pricing program. The voluntary program, which now has nearly 2000 subscribers,
allows customers to buy 25%, 50%, or 100% of their electricity from renewable
resources at a price premium of 2.0¢ for each renewable kWh purchased
(SREN, Summer 1996). The utility mailed information to
an additional 200,000 customers in an attempt to boost participation.
The solicitation seeks electricity from wind, biomass, solar photovoltaic,
hydroelectric, geothermal, or landfill gas resources. The power obtained
will replace an expiring contract for biomass and hydroelectric power that
drew criticism from local environmental groups
(SREN, Fall 1996).
WE Contact:
Mike Struebing, (414) 221-2641
SMUD To Offer Green Power Choices
The Sacramento Municipal Utility District (SMUD) plans to begin allowing
customers within its service territory to choose their own electricity supplier,
some as early as this summer. The move is an attempt by the municipally owned
utility to get ahead of the learning curve in preparing for competition.
SMUD plans to offer its customers a variety of green power choices, including
an option to purchase 100% of their power from renewable sources and an
opportunity for residential and commercial customers to purchase rooftop
photovoltaic systems. SMUD also intends to implement "public goods charges"
which will fund continued implementation of energy efficiency, low-income
programs, renewable resources, and research and development which "would
not be pursued in a competitive environment."
SMUD Contact:
Arthur Starkovich, (916) 732-5347
Enron Forms Renewables Company
With its acquisition of Zond Corporation, Enron announced the formation of
a new renewable energy business unit, Enron Renewable Energy Corp., with
responsibility for developing renewable energy resources for Enron. In addition
to its purchase of Zond, a leading American wind energy power plant developer,
Enron is a partner with Amoco in Amoco/Enron Solar which, through its Solarex
business unit, has solar electric power projects under development worldwide.
Enron also announced a marketing partner-ship with the Northern California
Power Agency (NCPA). With access to NCPA's geothermal and hydropower resources,
and Zond's California-based wind plants, Enron intends to be a player in
the California green power market.
Enron Contact:
Carol Hensley, (713) 853-6498
Green Power Conference Set for May
The U.S. Department of Energy, the Edison Electric Institute, and the Electric
Power Research Institute, in association with Central & South West Services,
Inc., are sponsoring The Second National Green Pricing and Power Marketing
Conference in Corpus Christi, Texas, on May 1314, 1997. The conference
will include updates on utility green pricing programs; presentations on
new green power marketing efforts; lessons learned from state
retailwheeling experiments; and a panel discussion on green power
certification and information disclosure.
EPRI Contact:
Terry Peterson, (415) 855-2594
Be sure to visit the Green Power
Network at www.eren.doe.gov/greenpower.
State Renewable Energy News is prepared under the auspices of the NARUC Subcommittee on Renewable Energy to promote information sharing on state-level renewable energy activities. It is issued three times annually to coincide with the NARUC committee meetings.
The preparation and printing of this newsletter is sponsored by the Office of Power Technologies of the U.S. Department of Energy.
Comments can be directed to:
Blair Swezey
NREL
1617 Cole Blvd.
Golden, CO 80401
(303) 384-7455.
The Subcommittee Chairman is the Honorable Renz D. Jennings, Chairman, Arizona Corporation Commission - (602) 542-3935.