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HomeMy WebLinkAbout2006-06-06 RMLD Green Power Subcommittee MinutesReading Municipal Light Board of Commissioners Green Power Subcommittee 230 Ash Street Reading, MA 01867 June 6, 2006 Start Time: 3:00 p.m. End Time: 4:10 p.m. Attendees: Commissioners: Mr. Hahn and Ms. O'Neill RMLD Staff: Messrs. Bilicki and Seldon Mses. Parenteau, Benson, and Cavagnaro Commissioner Hahn called the meeting to order at 3:05 p.m. R F SfE7 Y i_D TOWN CLERK READING, MASS. H01 MA 20 P 5# 02 The Green Power Subcommittee met to discuss the RMLD developing a Green Power rate to be offered to residential and commercial customers. Mr. Hahn had indicated that he had done some preliminary investigation on Green Power. He noted that each New England State has developed different definitions of what qualifies as a Renewable Energy Resource, which would qualify to receive a Renewable Energy Certificate (REC). Connecticut appears to be the least stringent with Massachusetts being the most restrictive. He questioned from what state would the RMLD be purchasing the RECS. Mr. Seldon indicating that given existing pricing, the hope would be to develop a portfolio that represents Massachusetts RECs and some Maine Hydro RECs in order to arrive at a price of $3.00/ block. One block would be equivalent to 100 kWhs. Mr. Hahn would like to know who would be drafting the contract for RECs? He suggested that whatever outside counsel the RMLD uses, they are familiar with RECs and he would like them to review the language that the RMLD is proposing to utilize in the various forms and publications. Mr. Hahn questioned whether the department would have a separate account to track the expenses and revenue from GREEN CHOICE. Ms. Parenteau assumed they would, but would double check with accounting. Ms. Parenteau also informed the committee that the revenue from GREEN CHOICE will be treated as fuel related since this rate would be a pass through from the customer to the green supplier. Mr. Hahn asked the RMLD to determine whether the cost of purchasing RECs qualifies as a legitimate expense relating to Purchase Power and whether such costs would be included in and recovered through the fuel adjustments, or whether these costs would be accounted for separately. Mr. Hahn was concerned about fining the rate at $3/ block. Mr. Bilicki indicated that once a rate is filed with the DTE, the RMLD would have to wait a minimum of 90 days before filing any modifications or changes. Mr. Hahn would like the department to explore alternative methods of structuring the rate that would provide some flexibility that would minimize the number of refilings, such as possibly looking at structuring the rate with a rider. Ms. Parenteau indicated that the department would take a look at this issue. Green Power Subcommittee Meeting 2 Mr. Hahn had a question regarding how the RMLD is proposing to handle customers who call the RMLD to sign "up for GREEN CHOICE. Does the department need a signed authorization? Ms. Cavagnaro indicated that the Customer Service Reps currently sign up new customers without express written request. Staff felt that in order to keep the program attractive to customers, the RMLD would sign up customers similarly to how they sign up customers for service. Customers will be able to go on-line, send in an enrollment form, visit the RMLD office, or call to sign up. Ms. O'Neill asked the question, Can we get greener? Discussion ensued regarding signing entitlement contracts verses RECs. Ms. O'Neill had some suggested changes regarding the enrollment form and will work directly with Michele Benson off-line to incorporate the changes. Ms. O'Neill indicated that she would like the department to work with Cable TV to advertise GREEN CHOICE. Ms. O'Neill recommended that information on the GREEN CHOICE rate be given to the Power Contracts, Rate Setting & Customer Choice Subcommittee. Both Mr. Hahn and Ms. O'Neill agree that the RMLD needs to develop publications to clarify exactly what GREEN CHOICE is and what it will accomplish. It was pointed out that buying RECs associated with existing renewable energy resources is not causing any new incremental reduction in C02 emissions. Mr. Hahn indicated that this is a good 1St step to considering Green Power. He also indicated that there is the potential to incorporate renewable resources within the long-term power supply that the department is working on. Motion Mr. Hahn made the following motion: The Green Power Subcommittee endorses the Green Power program concepts as presented and discussed here today for presentation to the CAB and then presentation to the RMLB. Ms. O'Neill seconded the motion. Discussion: Ms. O'Neill would like staff to develop a one-page summary of the GREEN CHOICE rate for both the CAB & RMLB. Ms. O'Neill would also like staff to distribute the memo dated May 26, 2006 on Green Power Programs to both the CAB & RMLB. Following discussion the motion carried 2:0:0. Michele Benson distributed and discussed the CCP's Pledge and proposed CFL and Energy Star Programs.