GreenChoice Austin Energys Renewable Energy Program

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GreenChoiceAustin Energys Renewable Energy
Program
TM

• Mark Kapner
• Local Renewables 2007

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Austin Energy

• Municipally-owned electric utility
• Serves more than 700,000 population
• Area gt 1000 sq km

H
Austin
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Customers

• 26 of energy sold to residential
• 70 to commercial
• 4 to municipal

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Generating Sources

• 3 gas and oil-fired plants 1670 MW
• 1 coal-fired plant 570 MW
• 1 nuclear plant 400 MW
• Purchase 212 MW of wind
• Purchase 11 MW landfill methane power
• Purchase 1 MW of Hydro

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Conventional Generation Mix by MWH

• Coal 34
• Nuclear 30
• Gas 30 Renewables 6

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GreenChoiceBackground
TM

• Austins Strategic Goal 20 of energy from
  renewables by 2020
• By enrolling, customer causes change in AEs
  generation mix
• Customer benefits from the price stability
  inherent in renewable energy
• GreenChoice price linked to actual cost of
  renewable energy

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GreenChoice Renewable Sources
TM

• Wind 79
• Landfill methane (17 of MWH)
• Photovoltaics and Hydro (4 0f MWH)

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WindPros and Cons

• Least expensive
• (per kWh)
• Little firm capacity
• Transmission adequacy risk
• Public acceptance- fairly
  high

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Wind Capacity in MW, end of 2006
245
964
484
70
40
597
320
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Landfill MethanePros and Cons

• 40 more expensive than wind energy
• Very high firm capacity
• Public acceptance- moderate

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Tessman Road Landfill Methane Power Plant
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Solar Photovoltaics

• Most expensive (about 7 times cost of wind)
• Fairly high firm capacity
• Public acceptance -extremely high

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How GreenChoice Works
TM

• All customers eligible
• Commercial customers contract for min 5 years
• Subscribers pay a fixed GreenChoice charge in
  place of a fuel charge that fluctuates depending
  on market prices of coal and gas price lock for
  as long as 10 years
• Green Choice charge 3.50 cents per kWh
• Fuel Charge is currently 3.35 cents per kWh
• Commercial customers receive recognition
  proportional to level of participation

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Austin Energy Electric Bill

• Base Rate 6.44 cents x kWh
• plus
• Fuel charge 0.033 x kWh
• or
• GreenChoice charge 0.035 x
  kWh

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Comparison to Fuel ChargePremium or Discount?
4
3
2
1
Batch
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Promotion and Marketing

• Stories in utility bill inserts
• Ads in local newspapers
• Billboards
• Customized presentations to businesses
• Speaking engagements
• Letter from environmental groups to their mailing
  list
• TV commercials

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Corporate Champions (use gt 700,000 kWh per year)

• 3M Corporation823 CongressAdvanced Micro
  Devices (AMD)Ambion, Inc.Apple ComputerBAE
  SystemsBLOCKBUSTERFisher-Rosemount SystemsFour
  Seasons Hotel AustinG S D MGinny's
  MeritGraeber, Simmons CowanGreenwood
  TowersHabitat Suites HotelHeart Hospital of
  AustinHyatt Regency AustinIBM

• Iron CactusKinko's La Quinta Inn
  SuitesLBJS Broadcasting CompanyLive Oak
  DevelopmentMaudie's CafePier 1 ImportsSamsung
  Austin SemiconductorSolectron TexasState Farm
  InsuranceTexas Commission on Environmental
  QualityTexas Governor's MansionThe Rebekah
  Baines Johnson CenterTokyo Electron America

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Corporate Champion Ad Package

• TV ad features company logo
• Billboards
• List names twice per year in three newspapers
• Company logo in EnergyPlus customer newsletter
• GreenChoice logo available for companys use in
  its advertising

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Status (end of Nov, 2006)

• GreenChoice launched mid-Jan 2000
• Began billing April 2001
• Over 10,000 residential customers enrolled
• 44 large commercial subscribers
• 348 small businesses
• Green Energy 650 million kWh/yr.

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