Renewable Energy Policy Balances Priorities

Renewable energy policy is complex and often misunderstood. A case in point is the treatment of "Renewable Energy Credits" in an April 7 Coloradoan article about Fort Collins and Platte River Power Authority energy policies. (PRPA is the electric utility owned by Fort Collins, Longmont, Loveland and Estes Park.)

We'd like to offer some clarifications.

It's our goal as your locally owned energy supplier to provide reliable electricity that meets Fort Collins' environmental policies at an affordable price. All of the renewable projects we support contribute to the ultimate goal of reducing carbon emissions and the effects of climate change.

In 2003, Fort Collins adopted a policy that called for an increasing supply of energy from renewable sources. Appointed and elected officials considered expanding local wind generation projects such as PRPA's Medicine Bow Wind Project in southern Wyoming. They also considered projects in other states.

Local projects deliver energy into our system while energy from wind in other states is sold to nearby utilities. However, the right to claim the environmental benefits, known as a renewable energy certificate, or REC, is often sold separately to others, including utilities operating under state renewable mandates and towns, cities and businesses wanting to offset carbon produced by their operations.

The Coloradoan's April 7 article did not make it clear that RECs are linked to renewable projects and contribute to renewable energy.

RECs purchased by Platte River are certified by Green-e Energy. Green-e Energy is the nation's leading independent renewable energy certification and verification program. Green-e Energy certification assures, through an audit, that our RECs come from a qualified renewable source and that we are the sole owners of that benefit.

Funds paid for RECs support the development of renewable energy - an approach supported by the American Wind Energy Association, the National Renewable Energy Lab, the Western Governor's Association, the Colorado Climate Action Panel and hundreds of other organizations throughout the nation.

RECs are one of three sources renewable energy developers depend on to make their projects viable (the other two: federal tax credit and sale of the electricity produced). Each REC represents the environmental benefits of a megawatt-hour of energy produced from a renewable source, primarily the benefits associated with reducing the need for energy from fossil fuel.

Further, last year PRPA updated its renewable energy policy to significantly expand our existing renewable energy generating systems and depend less on RECs. Consequently, this year PRPA is contracting to add a major local wind project. We have solicited bids to invest $25 million to $60 million in local wind projects that will produce up to 100 million kilowatt-hours of renewable energy - enough energy to power more than 11,500 Fort Collins homes for a year.

Besides increased efforts in renewable energy, we also support the environment by investing in energy efficiency and conservation. Since 2002, more than $2 million has been provided to Fort Collins customers for efficiency projects such as lighting conversions and building cooling system upgrades.

Bottom line: We invest in renewable energy - through a balance of energy sources and RECs - to benefit the environment. While renewable energy sources are often less reliable and more costly, we strive for the maximum environmental benefit at the lowest cost to you, the ratepayers.

We are honored to serve the residents and businesses in Fort Collins as we balance these priorities.

About the authors: Doug Hutchinson is mayor of the city of Fort Collins. Brian Moeck is the general manager of Platte River Power Authority.