Green
power offers are one way to help connect electricity customers with renewable
energy. These voluntary programs are designed to make it easier for
willing consumers to choose a greener energy mix for their home or
business. Green power offers are typically voluntary, meaning customers
must affirmatively enroll in the program and select their product. In
many states, they create a mechanism for customers to buy renewable power over
and above state renewable portfolio standards. While customers in
competitive markets are free to select their energy supplier, under the green
power offer program one supplier is designated by regulators as the default
green supplier at any given time. This formal designation gives the
default green supplier better marketing access to its customers and facilitates
interactions with the transmission and distribution utility.
Maine’s
green power offer will launch soon. In December 2010, following on the
state legislature’s enactment of a community-based renewable energy pilot
program, the Maine Public Utilities Commission issued a request for proposals
from suppliers to operate a green power offer for residential and small
commercial electricity customers for a three year term.
Eligible
resources for the Maine program include fuel cells, tidal power, solar arrays,
geothermal installations, hydroelectric generators that meet all state and
federal fish passage requirements, biomass generators, and wind power
installations. In response to the Maine commission's request for proposals, suppliers submitted bids proposing to supply products
consisting of sufficient renewable energy credits (RECs) to cover half or all
of each customer’s load.
At Tuesday's
deliberative session, the Maine Public Utilities Commission selected the
state’s first green power offer supplier. While many of the details of
the winner’s offering remain confidential for the moment, the regulators
expressed interest in a flexible product composed entirely of RECs from
renewable energy facilities in Maine. The product would remain
resource-agnostic, meaning the supplier could provide RECs from any eligible
Maine resource. This flexibility contrasts with other offers to deliver
RECs from a specific resource such as wind. This product, which comes in
addition to a customer’s underlying energy supply and local utility wires
charges, is reported to cost 1.5 cents per kilowatt-hour.
With the
winner selected, Maine’s green power offer will move forward. The success
of the program will depend on a number of factors including customers’
appetites, the economy, and the green supplier’s marketing practices.
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