The document proposes reducing premiums for Wind Watts, a program that provides renewable energy to customers. Currently, premiums include a green College Station adder. Staff recommend approving a revised rate ordinance effective March 1, 2012 to eliminate the green adder and lower residential premiums to $5, $2.50, and $0.50 per 1000 kWh for 100%, 50%, and 10% wind energy, respectively. Commercial premiums would match the proposed residential rates.

1. Wind Watts Proposed Rate Reduction

2. Wind Energy Review South Trent Wind Farm - West of Abilene Contract Capacity 10 Megawatts in 2009 30 Megawatts in 2015

7. Issues – January 2009 Transmission Costs Out of West Texas Transmission Congestion Transmission Construction Schedule in ERCOT Will Lessen Congestion Costs

8. Issues – January 2010 Transmission Congestion Costs Much Lower Than Previous Years ERCOT Transmission Construction Has Significantly Strengthened Ties to West Texas

9. Existing Wind Watts Rates are based upon: Program Cost to Deliver Certified Wind Energy 2. Green CS Program Adder

10. Wind Watts Premiums Historical As Adopted January 2009 As Adopted January 2010 to Present

11. Proposed Revisions in Wind Watts Premiums

12. Staff Recommendation Effective March 1, 2012 Approve Revised Electric Rate Ordinance to Eliminate Green College Station Adder Lower Residential Wind Watts Premiums to: 100% Wind: 0.50 cents per kwh ($5.00 per 1000 KWH) 50% Wind: 0.25 cents per kwh ($2.50 per 1000 KWH) 10% Wind: 0.05 cents per kwh ($0.50 per 1000 KWH) Commercial Wind Watts at the same premiums as shown above.

13. QUESTIONS??