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  1. 1. GreenChoice Austin Energy’s Renewable Energy Program Mark Kapner Local Renewables 2007 TM
  2. 2. Austin Energy <ul><li>Municipally-owned electric utility </li></ul><ul><li>Serves more than 700,000 population </li></ul><ul><li>Area > 1000 sq km </li></ul> Austin
  3. 3. Customers <ul><li>26% of energy sold to residential </li></ul><ul><li>70% to commercial </li></ul><ul><li>4% to municipal </li></ul>
  4. 4. Generating Sources <ul><li>3 gas and oil-fired plants 1670 MW </li></ul><ul><li>1 coal-fired plant 570 MW </li></ul><ul><li>1 nuclear plant 400 MW </li></ul><ul><li>Purchase 212 MW of wind </li></ul><ul><li>Purchase 11 MW landfill methane power </li></ul><ul><li>Purchase 1 MW of Hydro </li></ul>
  5. 5. Conventional Generation Mix by MWH <ul><li>Coal 34% </li></ul><ul><li>Nuclear 30% </li></ul><ul><li>Gas 30 % Renewables 6% </li></ul>
  6. 6. GreenChoice Background <ul><li>Austin’s Strategic Goal: 20% of energy from renewables by 2020 </li></ul><ul><li>By enrolling, customer causes change in AE’s generation mix </li></ul><ul><li>Customer benefits from the price stability inherent in renewable energy </li></ul><ul><li>GreenChoice price linked to actual cost of renewable energy </li></ul>TM
  7. 7. GreenChoice Renewable Sources <ul><li>Wind 79% </li></ul><ul><li>Landfill methane (17 % of MWH) </li></ul><ul><li>Photovoltaics and Hydro (4% 0f MWH) </li></ul>TM
  8. 8. Wind Pros and Cons <ul><li>Least expensive </li></ul><ul><li>(per kWh) </li></ul><ul><li>Little firm capacity </li></ul><ul><li>Transmission adequacy risk </li></ul><ul><li>Public acceptance- fairly high </li></ul>
  9. 9. 70 597 964 320 245 484 40 Wind Capacity in MW, end of 2006
  10. 10. Landfill Methane Pros and Cons <ul><li>40% more expensive than wind energy </li></ul><ul><li>Very high firm capacity </li></ul><ul><li>Public acceptance- moderate </li></ul>
  11. 11. Tessman Road Landfill Methane Power Plant
  12. 12. Solar Photovoltaics <ul><li>Most expensive (about 7 times cost of wind) </li></ul><ul><li>Fairly high firm capacity </li></ul><ul><li>Public acceptance -extremely high </li></ul>
  13. 13. How GreenChoice Works <ul><li>All customers eligible </li></ul><ul><li>Commercial customers contract for min 5 years </li></ul><ul><li>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 </li></ul><ul><li>Green Choice charge = 3.50 cents per kWh </li></ul><ul><li>Fuel Charge is currently 3.35 cents per kWh </li></ul><ul><li>Commercial customers receive recognition proportional to level of participation </li></ul>TM
  14. 14. Austin Energy Electric Bill <ul><li>Base Rate 6.44 cents x kWh </li></ul><ul><li>plus </li></ul><ul><li>Fuel charge = $0.033 x kWh </li></ul><ul><li>or </li></ul><ul><li>GreenChoice charge = $0.035 x kWh </li></ul>
  15. 15. Comparison to Fuel Charge Premium or Discount? 1 2 3 4 Batch #
  16. 16. Promotion and Marketing <ul><li>Stories in utility bill inserts </li></ul><ul><li>Ads in local newspapers </li></ul><ul><li>Billboards </li></ul><ul><li>Customized presentations to businesses </li></ul><ul><li>Speaking engagements </li></ul><ul><li>Letter from environmental groups to their mailing list </li></ul><ul><li>TV commercials </li></ul>
  17. 17. Corporate Champions (use > 700,000 kWh per year) <ul><li>3M Corporation 823 Congress Advanced Micro Devices (AMD) Ambion, Inc. Apple Computer BAE Systems BLOCKBUSTER Fisher-Rosemount Systems Four Seasons Hotel Austin G S D & M Ginny's + Merit Graeber, Simmons & Cowan Greenwood Towers Habitat Suites Hotel Heart Hospital of Austin Hyatt Regency Austin IBM </li></ul><ul><li>Iron Cactus Kinko's La Quinta Inn & Suites LBJS Broadcasting Company Live Oak Development Maudie's Cafe Pier 1 Imports Samsung Austin Semiconductor Solectron Texas State Farm Insurance Texas Commission on Environmental Quality Texas Governor's Mansion The Rebekah Baines Johnson Center Tokyo Electron America </li></ul>
  18. 18. Corporate Champion Ad Package <ul><li>TV ad – features company logo </li></ul><ul><li>Billboards </li></ul><ul><li>List names twice per year in three newspapers </li></ul><ul><li>Company logo in EnergyPlus customer newsletter </li></ul><ul><li>GreenChoice logo available for company’s use in its advertising </li></ul>
  19. 19. Status (end of Nov, 2006) <ul><li>GreenChoice launched mid-Jan 2000 </li></ul><ul><li>Began billing April 2001 </li></ul><ul><li>Over 10,000 residential customers enrolled </li></ul><ul><li>44 large commercial subscribers </li></ul><ul><li>348 small businesses </li></ul><ul><li>Green Energy = 650 million kWh/yr. </li></ul>