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Volume 6, No. 3 Winter 1997 State Activities
Colorado The executive order is a direct response to a preliminary recommendation made by the Renewable Energy Task Force appointed by the governor in 1996 (SREN, Summer 1996). The task force is expected to release its full report on ways for Colorado to increase the use of renewables shortly.
Specifically, the executive order calls on the Office of Energy Conservation
(OEC) and the Office of State Planning and Budgeting to assist all state
agencies in identifying and implementing cost-effective and practical renewable
energy applications. Further, it directs the office to develop a plan that
allows price preferences for the purchase of renewable or "green" electricity
at premium rates. This could result in a state policy similar to the one
for recycled paper products — legislation passed in 1990 allows state
agencies to pay up to 10% more on one-half of their total paper purchases.
Maryland The residential program will begin with an RFP for installation of 10 rooftop systems using solar photovoltaic (PV) technology. Such systems have been made more affordable for homeowners as a result of the recent enactment of a — net metering — law (HB869) requiring electric utilities to give homeowners full credit on their monthly energy bills for solar-generated electricity.
Under the second program, schools will be selected to have a PV system installed,
helping to offset the consumption of electricity and reducing the school’s
cost of electricity. Local citizens and businesses will volunteer to contribute
just a few dollars per month to pay for the solar installation. Within four
years, the system will be fully paid for but will continue to produce solar
electricity for at least 30 years.
Maine The case stems from petitions filed by two residential customers claiming that CMP refused to enter into net energy billing contracts. CMP cited a 1995 ruling by the Federal Energy Regulatory Commission (FERC) declaring that, under the Public Utility Regulatory Policies Act (PURPA), utilities cannot be forced to purchase power from qualifying facilities at rates higher than their avoided costs (SREN, Winter 1995).
In support of its decision, the PUC notes that "the net energy billing provision
was explicitly designed as a retail billing and metering practice adopted
for the purpose of avoiding the cost of a second meter for very small facilities.
. . . A rule that seeks to avoid costs for such customers by allowing for
net billing through use of a single meter is within the State's authority
to address issues of retail metering and billing. At no point under a net
billing arrangement does a utility actually pay for any power at above avoided
costs."
New Mexico
PNM will not be obligated to build a solar power unit or commit to a power
purchase agreement before the PUC approves a full cost recovery mechanism.
The Commission opened a new docket to monitor the RFP process and to consider
the utility's plan.
New York The bill requires electric utilities to inter-connect residential solar equipment to their systems and to provide "net metering" for these residential customers. To help make the systems more affordable, the bill provides a personal income tax credit for individuals who invest in solar systems for home use. The credit is 25% of the system cost, up to a maximum of $3,750 — which amounts to $1.50/watt on a 2.5-kW PV system.
The provisions of the "Solar Choice Act" apply to residential utility customers
who install solar equipment with a generating capacity of 10 kW or less.
The availability of net metering is limited to 0.1% of the 1996 peak demand
of each electric utility in order to limit the potential loss of revenues
to the utility.
Oregon
PGE expects the program to "deliver competitive prices and innovative products,
such as the opportunity to buy electricity generated solely from renewable
resources." Seven energy service providers have been certified by the Oregon
PUC and will be required to "label" their electricity, disclosing electricity
generation sources to customers. Focus on California Market As the countdown proceeds to full retail access on January 1, 1998, a number of indicators point to the development of a vibrant market for green power. Nearly one-third of Californians polled say they are "very willing" to pay more for electricity from cleaner energy sources. And more than 190 entities have registered with the PUC to be energy service providers (ESPs) to residential and small commercial customers. Several ESPs will be offering "green power" options to customers.
Information Disclosure Law Adopted
The California Energy Commission (CEC) was given responsibility for implementing
the law, including the authority to verify claims made by electricity retailers.
The CEC will specify guidelines and formats for the information disclosure
by January 1, 1998.
Group Launches Renewables Brand To the extent that any fossil fuel resources are used, those resources must have air emissions per/kWh for sulfur and nitrogen oxides, and carbon dioxide less than or equal to the statewide system power mix. In addition, nuclear energy beyond that included in system power may not be included.
Participating companies pledge to authenticate the renewable content of their
electricity products, abide by a code of conduct governing their business
practices, and provide customers with regular information about the sources
of the electricity that they purchase. The first six power marketers to adopt
the Green-e brand requirements are: Edison Source, Enron Energy Services,
Foresight Energy Company, Green Mountain Energy Resources, PacifiCorp, and
Sacramento Municipal Utility District.
Marketers Announce Green Products Green Mountain Energy Resources has created three new electricity products: "75% Renewable Power," which includes small-scale hydro, biomass, and geothermal — three-fourths of the energy will come from qualifying renewables and 25% will come from large-scale hydro and system power. "Water Power," a power blend which relies on 90% hydropower generated from a mix of large- and small-scale hydro facilities — the remaining 10% will come from system power. Wind for the FutureSM, which will help build a market for construction of new wind turbines — one turbine will be built for every 3,000 customer subscribers. Power from the newly constructed wind turbines will account for 10% of the energy with the balance supplied from the "75% Renewable Power" product. Edison Source will offer customers an option of purchasing either half or all of their power from renewables, which will include solar, wind, small hydro, biomass, and geothermal. The 50% option will cost approximately the same as what customers pay for energy today, while those who choose 100% renewable energy will pay approximately 15% more, or about 2¢/kWh, depending on which company presently provides their electric service. In July, Edison Source issued an RFP for suppliers of renewable electricity sources (SREN, Summer 1997).
Agency Requests Green Power
Proposals
Successful bidders will become part of a Master Services Agreement, which
will create a pool of power suppliers to serve DGS program participants.
According to the needs of the program’s customers, DGS will offer fully
bundled commodity electricity supply, "green" (renewable) generation, and
schedule coordination and revenue cycle services.
Other Activities
Clinton Announces New
Initiatives The initiative, announced in a June 27th speech to the United Nations Special Section on Environment and Development, calls for the U.S. Department of Energy to lead the effort, which will tap existing federal grant, procurement, and other programs and work with local communities, businesses, state governments, utilities, and other groups to remove market barriers and strengthen grassroots demand for solar technologies.
Separately, President Clinton proposed a five-year, $5 billion package of
tax incentives and increased R&D spending for energy efficiency and clean
energy sources that will help the nation reduce greenhouse gas emissions.
Murkowski Offers Restructuring
Principles Among the various matters is an emissions-free portfolio standard (EPS) for generation from nuclear, hydro, solar, geothermal and wind. Every power producer would be required to provide tradable credits in the amount of the existing national percentage of emission-free resources. According to the Senator, an EPS "would provide an incentive to keep existing emission-free sources operating and replace them with emission-free resources when they reach the end of their operating lives [and] would be an economically efficient method of ensuring that air quality is not degraded by competition." Another element is creation of an "electricity labeling" program to assist consumers who wish to select electricity providers on factors other than price. The Senator also calls for the prospective repeal of PURPA, arguing that the law has cost consumers hundreds of millions of dollars in above-market costs. Sen. Murkowski's Office: (202) 224-6665
Visit the Green Power Network at: http://www.eren.doe.gov/greenpower
State Renewable Energy News is prepared for 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 Utility Technologies of the U.S. Department of Energy.
Comments can be directed to: The Subcommittee Chairman is the Honorable R. Brent Alderfer, Commissioner, Colorado Public Utilities Commission - (303) 894-2000 x-303.
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