Presentation is loading. Please wait.

Presentation is loading. Please wait.

Green Energy Program Redesign Wilson Mallard – Georgia Power Company NARUC Staff Subcommittee on Accounting and Finance Fall Meeting October 13, 2008 Wilson.

Similar presentations


Presentation on theme: "Green Energy Program Redesign Wilson Mallard – Georgia Power Company NARUC Staff Subcommittee on Accounting and Finance Fall Meeting October 13, 2008 Wilson."— Presentation transcript:

1 Green Energy Program Redesign Wilson Mallard – Georgia Power Company NARUC Staff Subcommittee on Accounting and Finance Fall Meeting October 13, 2008 Wilson Mallard – Georgia Power Company NARUC Staff Subcommittee on Accounting and Finance Fall Meeting October 13, 2008

2 Background and History Customer Needs Program Redesign New Green Energy Program Implementation Background and History Customer Needs Program Redesign New Green Energy Program Implementation Green Energy

3 Background

4 History of Green Energy at Georgia Power Proposed by GPC in IRP in 2001 Green Program approved in 2003 Landfill Gas resource contract signed in 2005 GPC purchases solar energy through the RNR tariff Customer Billing began in October 2006 Green-e certification received in March of 2008 Renewable Resource Action Plan (August 2007) Currently 90% subscribed – over 4,000 customers and 16,000 blocks sold Proposed by GPC in IRP in 2001 Green Program approved in 2003 Landfill Gas resource contract signed in 2005 GPC purchases solar energy through the RNR tariff Customer Billing began in October 2006 Green-e certification received in March of 2008 Renewable Resource Action Plan (August 2007) Currently 90% subscribed – over 4,000 customers and 16,000 blocks sold

5 Customer Needs Customer Needs

6 Georgia Power listened to all Stakeholders – Regulators, Customers, Environmental Groups Large Customers need low cost Renewable Energy GPC filed Renewable Resource Action Plan (August 2007) First Stakeholder Meeting to review preliminary design (January 2008) Written Comments from Stakeholders (February 2008) GPC considered the Stakeholder comments and modified the proposed design Second Stakeholder meeting held in June 2008 Large Customers need low cost Renewable Energy GPC filed Renewable Resource Action Plan (August 2007) First Stakeholder Meeting to review preliminary design (January 2008) Written Comments from Stakeholders (February 2008) GPC considered the Stakeholder comments and modified the proposed design Second Stakeholder meeting held in June 2008

7 Satisfy Commercial and Industrial customer need for renewable energy at a competitive price Increase overall renewable energy purchases and production in Georgia “Green-e” certification Protect the viability of existing Green Energy Program Program designed to be financially self-sufficient Program must regulatory specifications Satisfy Commercial and Industrial customer need for renewable energy at a competitive price Increase overall renewable energy purchases and production in Georgia “Green-e” certification Protect the viability of existing Green Energy Program Program designed to be financially self-sufficient Program must regulatory specifications Large Volume Renewable Energy Design Requirements

8 Redesign of the Green Energy Tariff

9 Green Energy Program Redesign The Green Energy Tariff was redesigned to provide several options for customers: –Premium Green Energy - $4.50 per block, retains 2 % solar resource requirement –Green Energy - $3.50 per block, no solar or wind resource requirement –Large Volume Purchase Option – available on a customer specific basis after the customer has purchased 400 blocks of Green Energy –Special Events Purchase Option – allows for one-time purchases of Green Energy for events such as concerts, sporting events, conventions, etc. The Green Energy Tariff was redesigned to provide several options for customers: –Premium Green Energy - $4.50 per block, retains 2 % solar resource requirement –Green Energy - $3.50 per block, no solar or wind resource requirement –Large Volume Purchase Option – available on a customer specific basis after the customer has purchased 400 blocks of Green Energy –Special Events Purchase Option – allows for one-time purchases of Green Energy for events such as concerts, sporting events, conventions, etc.

10 Green Energy Program Redesign Premium Green Energy - $4.50 per block, keeps 2 % solar resource requirement –For customers who choose to pay more for solar resources –2 % solar resource will be supplied by purchases through RNR-3 (Renewable and Non-Renewable Resources) –Existing customers can choose to select Premium Green Energy or stay on Green Energy –Additional Premium Green Energy will be made available as more solar is acquired through RNR-3 Premium Green Energy - $4.50 per block, keeps 2 % solar resource requirement –For customers who choose to pay more for solar resources –2 % solar resource will be supplied by purchases through RNR-3 (Renewable and Non-Renewable Resources) –Existing customers can choose to select Premium Green Energy or stay on Green Energy –Additional Premium Green Energy will be made available as more solar is acquired through RNR-3

11 Green Energy Program Redesign Green Energy – lower price to $3.50 per block –Supply from the Seminole landfill and other approved Georgia based renewable generators –Solar/Wind resource will not be required –Large Volume customers required to purchase at least the minimum number of Green Energy blocks before the Large Volume option becomes available Green Energy – lower price to $3.50 per block –Supply from the Seminole landfill and other approved Georgia based renewable generators –Solar/Wind resource will not be required –Large Volume customers required to purchase at least the minimum number of Green Energy blocks before the Large Volume option becomes available

12 Green Energy Program Redesign Large Volume Purchase Option – Customer specific contract terms –The demand initially will be met through purchases of Green-e certified Renewable Energy Credits (RECs) –Customers must buy 400 blocks of the Green Energy tariff before they qualify to purchase Large Volume Green –Batch procurement and contracting process will minimize costs and risk Large Volume Purchase Option – Customer specific contract terms –The demand initially will be met through purchases of Green-e certified Renewable Energy Credits (RECs) –Customers must buy 400 blocks of the Green Energy tariff before they qualify to purchase Large Volume Green –Batch procurement and contracting process will minimize costs and risk

13 Large Volume Purchase Option Procurement and Contracting Process 1.Customers enroll (for the option to participate) 2.Company secures supply and pricing 3.Company notifies participants of offer, e.g., 4.Customers make purchases (i.e., sign contracts) 5.Company aggregates customer purchases 6.Company purchases RECs, if necessary 7.Company provides renewable energy benefits and bill to customers 1.Customers enroll (for the option to participate) 2.Company secures supply and pricing 3.Company notifies participants of offer, e.g., 4.Customers make purchases (i.e., sign contracts) 5.Company aggregates customer purchases 6.Company purchases RECs, if necessary 7.Company provides renewable energy benefits and bill to customers Large Volume Renewable Energy Offer (Sept. 1, 2008) Total Monthly kWhs Available: 10,000,000 Price: X ¢/kWh MinimumMonthlykWh Purchase: 50,000 3 Availablewhile supplies last oruntilSept. 30, 2009, whichever comesfirst. Contract Term years

14 Large Volume Purchase Option Procurement and Contracting Process REC Market Retail Customers Contract 1 4 REC Contract 6 Bill 7 Georgia Power Request for REC Quote 2 REC Quote RECs Needed 5 3 LVRE Offer Enrollment 2 GPC- Owned Renewables RECs Needed 6 Renewable Energy Benefits

15 Green Energy Program Redesign Special Events Purchase Option –Many customers are seeking Green Energy for special events –One time purchase fits customer need –Customers will purchase energy through the approved tariff –One year minimum on tariff requirement will be waived –Tariff applicability language will ensure only approved special events qualify for the Special Events Purchase Option Special Events Purchase Option –Many customers are seeking Green Energy for special events –One time purchase fits customer need –Customers will purchase energy through the approved tariff –One year minimum on tariff requirement will be waived –Tariff applicability language will ensure only approved special events qualify for the Special Events Purchase Option

16 Green Energy Program Redesign Summary One program with several options Goal to maintain Green-e certification Program designed to break even All fuel related expenses will be recovered through the Fuel Cost Recovery Clause All marketing and administrative expenses will be covered by Green Energy Premiums PSC will monitor the Program through quarterly reports If program is under recovered, premiums will be raised; if revenues exceed expenses, additional resources will be procured or prices will be reduced One program with several options Goal to maintain Green-e certification Program designed to break even All fuel related expenses will be recovered through the Fuel Cost Recovery Clause All marketing and administrative expenses will be covered by Green Energy Premiums PSC will monitor the Program through quarterly reports If program is under recovered, premiums will be raised; if revenues exceed expenses, additional resources will be procured or prices will be reduced

17 What’s Next?

18 Green Energy Program Implementation Contact all customers within 30 days –Customers must choose an option Produce brochures and sales kits –Marketing messages differ for each option Procure REC’s for Large Volume customers –From Company owned resources or REC market Update Billing System –Significant work needed to bill all options Update Accounting and Tracking –Expenses and revenues for each option must be tracked Design and produce updated quarterly reports –Public Service Commission oversight is essential Contact all customers within 30 days –Customers must choose an option Produce brochures and sales kits –Marketing messages differ for each option Procure REC’s for Large Volume customers –From Company owned resources or REC market Update Billing System –Significant work needed to bill all options Update Accounting and Tracking –Expenses and revenues for each option must be tracked Design and produce updated quarterly reports –Public Service Commission oversight is essential

19 Discussion and Comments


Download ppt "Green Energy Program Redesign Wilson Mallard – Georgia Power Company NARUC Staff Subcommittee on Accounting and Finance Fall Meeting October 13, 2008 Wilson."

Similar presentations


Ads by Google