AGENDA CAPTION:
Title
Consider approval of Resolution 2021-34R, authorizing the City’s Electric Utility Division (“SMEU”) to implement a voluntary program allowing its customers to purchase certified renewable energy; and declaring an effective date.
Body
Meeting date: March 2, 2021
Department: Public Services - Tom Taggart, Director
Amount & Source of Funding
Funds Required: $0.00
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Fiscal Note:
Prior Council Action: None
City Council Strategic Initiative: [Please select from the dropdown menu below]
Sustainability
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Background Information:
Electric Utility staff has developed a program that will allow its customers to voluntarily select to purchase their energy from certified renewable energy sources. Renewable Energy Credits are a commodity that can be bought, sold, traded though a program managed by the Electric Reliability Council of Texas. These Credits have unique serial numbers that provide a guarantee that the energy purchase is from a renewable source. SMEU staff will procure Credits on behalf of all customers that opt into the program and will “retire” the Credits as the energy is consumed, permanently removing the commodity unit from the market once is was consumed.
The price will initially be a fixed amount of $5 per 1,000 kilowatt-hours consumed. This price will be periodically evaluated by staff and may be adjusted upward or downward over time to ensure adequate coverage of credit purchase and administrative costs so only customers who opt into the program are paying for the program. The average monthly residential usage in calendar 2020 was 900 kWh, which would incur a $4.50 monthly charge, or $54.00 per year, for volunteer enrollees at the $5 rate.
The Renewable Energy Adder will show up as a separate line item on customer bills who opt into the program. The program is open to all SMEU customers.
Investigation into such a program was included as a Task under the FY2020 Strategic Initiative for Sustainability, Strategy “Continue evaluation of alternate energy technologies and opportunities”. The program was initially presented to the Council’s Sustainability Committee in August 2019. The Committee recommended program implementation after a final presentation on September 30, 2020.
On January 13, 2021, staff presented details of the program to the Citizen’s Utility Advisory Board who similarly recommended program implementation.
Council Committee, Board/Commission Action:
Sustainability Committee recommendation to proceed September 30, 2020. Citizen Utility Advisory Board recommendation after January 13, 2021 meeting.
Alternatives:
N/A
Recommendation:
Staff recommends approval of program implementation.