1. Renewable Energy Credit (REC) Program ERCOT Retail 101

2. Discussion Topics Definition and Overview Types of Renewable Energy Rules and Responsibilities ERCOT Renewables Website

3. Texas Definition Of Renewable Renewable energy technology is any technology that: Exclusively relies on an energy source that is naturally regenerated over a short time Derived directly from the sun, indirectly from the sun Derived from moving water Derived from natural movements and mechanisms of the environment.

4. Texas Definition Of Renewable Renewable Energy Technology does not rely on: Energy resources derived from fossil fuels Waste products from fossil fuels Waste products from inorganic sources.

5. Examples Of Renewables Renewable Energy Sources are: Wind Generators Solar Panels Landfill Gas Capture/Utilization Devices Tidal Flow Energy Capture Devices Flowing Water Energy Capture Devices Dams Geothermal Energy Capture Devices

6. 1 MWh renewable energy = 1 REC Each REC is good for three compliance periods (two full years and the partial year in which it was created) What is a REC?

7. Affects Competitive Retail Electric Providers & Renewable Generators (MOU/EC) Texas-wide (includes non-ERCOT areas) Requires Competitive Retailers to submit RECs annually for Compliance REC Program Overview

8. REC Program Purpose Encourage construction and production of renewable energy Promote the use of renewable energy Satisfy the State of Texas renewable energy requirements August 1, 2005 Senate Bill 20 passed, extending the renewable energy requirements to January 1, 2025 with a target of 10,000 MWs

9. New Capacity Ratchets Year MW Cumulative New Renewable Capacity 20031280 20051730 20072280 20093272 20114264 20135256 20155880 202510,000

10. REC Program: –Annual REC Compliance Requirement for CRs –CRs are required to submit RECs annually in proportion to retail load served in TX PUC Labeling Initiative: –RECs can be used for verification of advertising claims for green power REC Uses

11. REC Offsets A REC offset represents one MWh of renewable energy from an Existing Facility that may be used in place of a REC to meet a renewable energy requirement. Existing Facilities are Renewable Energy Generators placed in service before September 1, 1999. Offsets used to reduce the mandated retirement of RECs for Competitive Retailers

12. REC Offsets To qualify for REC offsets in the REC Program, a Retail Electric Provider, Must have applied for REC OFFSETS to the PUCT by June 1, 2001 REC OFFSETS are not tradable Valid until PUCT revokes/cancels the awarded offsets or until the generator ceases to generate electricity

13. REC Offsets & Generation & Transmission Cooperatives G&T Cooperatives may: –Be responsible for the cumulative total of Offsets and their distribution and/or redistribution –Assign/Distribute Offsets to affiliate cooperative members for use when those members Opt-In to the Competitive Retail Market –May redistribute Offsets as additional members Opt-In

14. PUC appointed ERCOT as REC Program Administrator in May 2000 –Register Program Participants –Create REC accounts –Track MWh of renewable energy generated –Create unique REC IDs for each MWh –Distribute RECs to generators, quarterly –Determine annual REC Allocation for Competitive Providers –Retire RECs submitted for compliance ERCOT Responsibilities

15. Retire REC’s as they expire Maintain public information website –Provide monthly report of MWH load in Texas –Provide list of REC account holders with contact information –Provide list of Facility ID Numbers, and associated information –Provide reports to the PUCT – Compliance –Verify that Competitive Retailers meet REC compliance requirements

16. Apply to PUCT for certification as a REC generator Apply to ERCOT for REC account If not an ERCOT polled generator then the generator must enter monthly generation data in the ERCOT Web Site MP Responsibilities: Generators

17. Generate & Sell Energy –Separate Energy from Credits –Two revenue streams for generators Receive and Sell RECs

18. Competitive Retail Electric Providers –Apply to ERCOT for REC account after certification –Obtain annual REC Compliance Requirement from ERCOT by January 31 st –Submit REC Compliance numbers to ERCOT by March 31 st –If load is not ERCOT polled, then CR must enter load data in ERCOT Web Site MP Responsibilities: CRs and Others

19. Other Entities –No Restrictions on Participation –Apply to ERCOT for REC account

20. All data available online for 3 years No limits on REC Account Applications All Activities Available Online –Account Registration –Trading Secure Portal for REC Account Holders –Enable Account Activities: View, sort, batch, or singly identify RECs to Transfer or Retire ERCOT REC Website

21. Where is REC Website? Go to the ERCOT Website –www.ercot.com –Select View Other ERCOT Websites –Select Renewable Energy Credits Program- Texasrenewables.com –Select Login (New Users will need to register.) Some features do not require a login

22. Login Register ERCOT Renewables Program Home Page View

23. New Account Registration Form

24. Select Competitive Retailers List of participating CR/REP Contact info

25. Summary REC Program is Mandated by the PUCT and administered by ERCOT All CR/REPs serving load must participate All CR/REPs are responsible for their reported load Everything can be done from the ERCOT Renewables website

26. Questions?

27. ERCOT Challenge Which of the following is not a renewable energy source? a.Solar Panels b.Dams c.Flowing Water Energy Capture Devices d.Wind Generators e.Resources derived from fossil fuels Answer - E